One United Properties, the Bucharest-based developer of residential, mixed-use and office real estate dedicated to accelerating the adoption of construction practices for safe, energy-efficient, sustainable, and healthy buildings, announces results for the nine months ended September 30 2023.
Victor Capitanu, co-CEO of One United Properties, commented: “Q3 2023 was an exceptional quarter in the history of One United Properties. Despite the broader Bucharest residential market facing a 3.8 percent year-over-year decline in sales, we have defied market trends by successfully selling a record 329 apartments in Q3 alone, representing a 254 percent increase year-on-year.
This achievement highlights the unique positioning that One United Properties has in the market, where in an increasingly challenging real estate context, clients choose to fly to quality and are drawn by our reputation, reliability, and unparalleled confidence in our product.
Our achievements in Q3 have propelled us to another significant milestone – surpassing a consolidated turnover of over 1 billion lei in the first nine months of the year, marking a substantial 27 percent increase over the previous year.
This accomplishment is a clear indicator that we are not only on track to meet our annual budget but are also thriving in a challenging market context due to our strategic foresight and operational excellence.”
Andrei Diaconescu, co-CEO at One United Properties, commented: “2023 is shaping to be a milestone year for One United Properties. We are on track to deliver nearly 1,500 residential units to our clients, a significant achievement amplified by our efficient management of seven active construction sites simultaneously.
Recent partnerships with Armani/Casa and Ennismore, along with the continued trust from our clients and reputable global organizations, affirm that One United Properties is the go-to partner for those looking to capitalize on the burgeoning growth opportunities in the Bucharest real estate market.”
Key financial highlights for 9M 2023
- Consolidated turnover of 233.5 million euros, a 27% increase compared to 9M in 2022.
- Gross profit of 83.3 million euros, a 7% increase on 9m 2022, excluding one-off gains
- Net profit of 69.8 million euros, excluding one-off gains, a 5% increase on 9M 2022
- Cash of 91.4 million euros at the close of the period
- Amounts to be received under contracts concluded with customers as of September 30 2023, reached 305 million euros in additional cash by 2025
- The gross loan-to-value indicator amounted to 29%, stable since the beginning of the year
Divisional highlights for 9M 2023
Residential
- 795 apartments sold and pre-sold (+206% YoY) for a total of 230.2 million euros (+122% YoY)
- Total surface of apartments sold 66,212 sqm (+170% YoY) and 1,310 parking spaces and other unit types (+114% YoY)
- As of September 30 2023, 68% of all available apartments were sold out, with One Lake District being the year’s best-seller so far, with 348 units from the first phase being already sold out.
Commercial
- Rental income 20 million euros (+90%)
- One Tower (leased 100%), One Cotroceni Park 1 (leased 88% as of September 30, 2023), One Victoriei Plaza (100% leased)
- At period end the company’s office portfolio GLA totalled 118,000 sqm, and the commercial portfolio, which includes Bucur Obor and One Gallery, had a GLA of approximately 160,000 sqm.
- Landmark agreement with Infineon Technologies for a build-to-suit development in a 57 million euro deal
Current trading and outlook
- On track to deliver nearly 1,500 residential units this year
- Seven active construction sites
- Robust growth in the commercial segment, which almost doubled revenues versus 2022, and will continue to grow well into 2024
- Recently announced collaboration with Armani/Casa for the One Lake Club project introduces a unique concept to Bucharest’s real estate market
- Partnership with Ennismore for the launch of the Mondrian Bucharest Hotel marks a pivotal expansion into hospitality
One United Properties, whose shares are publicly traded on the Bucharest Stock Exchange, posts a consolidated turnover of 233.5 million euros for 9M 2023, a 27 percent increase compared to 9M 2022. The gross profit was 83.3 million euros, a 7 percent increase, excluding the one-off gain from the Bucur Obor purchase recognized in 2022 of 19.1 million euros. The net profit amounted to 69.8 million euros, an increase of 5 percent compared to 9M in 2022 (excluding the Bucur Obor gain impact).
One United Properties closed Q3 2023 with a significant cash position of 91.4 million euros, a 14 percent QoQ increase due to the delivery of One Verdi Park, One Floreasca Vista and One Timpuri Noi, resulting in clients signing final agreements and paying the last tranches on the purchased units. The amounts to be received under contracts concluded with customers as of September 30 2023, reached 305 million euros in additional cash by 2025. The gross loan-to-value indicator amounted to 29 percent, stable since the beginning of the year.
The increase in turnover was supported by a 46 percent increase in revenues from residential property sales, which reached 177.4 million euros in 9M 2023 versus 121.1 million euros in 9M 2022. The growth was driven by enlarged and more diverse residential offerings, particularly at One Lake District, One High District, and One Lake Club, the best-selling developments of 2023. The net income from residential property decreased 10 percent YoY, reaching 50.9 million euros in 9M 2023 due to the revenue recognition of the new developments where the construction works began as of Q4 2022. At the same time, 524 residential units at One Verdi Park, One Floreasca Vista and One Timpuri Noi were finalized.
In the first nine months of 2023, One United Properties sold and pre-sold 795 apartments (+206 percent YoY) with a total surface of 66,212 sqm (+170 percent YoY) and 1,310 parking spaces and other unit types (+114 percent YoY) for a total of 230.2 million euros (+122 percent YoY). As of September 30 2023, 68 percent of all available apartments were sold out, with One Lake District being the year’s best-seller thus far, with 348 units from the first phase being already sold out.
The rental income, including the income generated by the commercial division and the revenues from the tenant services, saw a 90 percent increase, reaching 20 million euros versus 10.5 million euros in 9M 2022. The effect has been driven by the revenues coming from the entire portfolio, but particularly One Tower (leased 100 percent), One Cotroceni Park 1 (leased 88 percent as of September 30 2023), One Victoriei Plaza (100 percent leased), as well as the impact of the results generated by Bucur Obor, consolidated under the retail division. The revenues from rental income will continue to grow in the coming quarters due to the impact of One Cotroceni Park 2, currently leased 60 percent, where most tenants are still in the fit-out phase. As of the end of September 2023, the company’s office portfolio GLA totals 118,000 sqm, and the commercial portfolio, which includes Bucur Obor and One Gallery, has a GLA of approximately 160,000 sqm.
