Real estate developer Impact posts losses despite higher revenues in H1

Impact Developer & Contractor (IMP), one of the biggest developers of residential real estate properties in Romania, ended the first half of this year with losses of RON 2.77 mln (EUR 0.56 mln), compared with a net profit of RON 8.56 mln in the same period of 2020.

The lower net result came despite a 5% increase in the company’s revenues from real estate inventories to RON 68.9 mln (EUR 14 mln). However, the gross profit from apartment sales declined by 18%, which indicates a lower profit margin for the apartments sold this year.

At the same time, the company’s operating expenses went up by 65% in the first half as it expanded its operations to other cities and has started working on more projects.

Most of the apartments sold in the first half are part of the premium project Luxuria Residence in Bucharest’s Domenii area. Meanwhile, the company says it has almost completely sold its inventory in the flagship Greenfield Baneasa project, located north of Bucharest in the Baneasa forest. Impact will start a new construction phase in this project.

As of June 30, the company concluded pre-contracts and reservations were concluded for 280 apartments in the projects Greenfield Baneasa, Luxuria Residence, Boreal Plus (Constanta) and Greenfield Copou (Iasi), with a total value of RON 150.4 mln.

“In the upcoming period, we plan to accelerate apartment construction both in Bucharest, Constanta, and Iasi, where we rely on a solid land portfolio that will support the development of sustainable projects in the medium and long term, and also in other large cities in the country. The high pre-sales are an indicator that sustainably built apartments are increasingly appreciated by buyers,” said Constantin Sebesanu, CEO Impact Developer & Contractor.

Impact’s shares have been among the top gainers on the Bucharest Stock Exchange this year as they recorded a 90% increase year-to-date.

(Photo source: the company)