One United Properties posts a consolidated turnover of EUR 89.3 mln and a gross profit of EUR 36.2 mln in Q1 2023
One United Properties (BVB: ONE), the leading Romanian green developer of residential, mixed-use and office real estate, posts a consolidated turnover of 89.3 million euro in Q1 2023, a 27% increase compared to Q1 2022. The gross profit…
One United Properties (BVB: ONE), the leading Romanian green developer of residential, mixed-use and office real estate, posts a consolidated turnover of 89.3 million euro in Q1 2023, a 27% increase compared to Q1 2022. The gross profit reached 36.2 million euro, a 61% increase excluding the one-off gain from Bucur Obor’s bargain purchase recognized in Q1 2022 in the amount of 19.6 million euro.
The net profit amounted to 30.8 million euro, an increase of 120% compared to Q1 2022 (a 8% year-on-year decrease if including the gain impact). The company ended the quarter with a strong cash position of 93.4 million euro, down 18% since the beginning of the year due to significant investment activity carried out since the beginning of the year. As a result, the gross loan-to-value indicator was 28% as of March 31st, 2023, while the net of cash loan-to-value was 14%.
"One United Properties has had a remarkably strong start to the year 2023, marked by one of the best quarters in our company's history in terms of apartment sales and pre-sales. These results highlight the strength and reputation of the ONE brand and demonstrate the prospects for the dynamic real estate market in Bucharest. Since our IPO, we have consistently showcased our ability to successfully compete across three key residential segments - medium, upper-medium, and high-end - cementing our position as a leader in Romania's premium real estate sector. With an annualized EPS of 0.03 euro, representing an earnings yield of 19%, we are confident that we can sustain our momentum and further fortify our position as an important player in the local real estate industry,” said Victor Capitanu, co-CEO at One United Properties.
The increase in turnover was supported by a 68% increase in revenues from residential property sales, which reached 66.9 million euro in Q1 2023 versus 39.9 million euro in Q1 2022. The net income from residential property increased by 24% YoY, reaching 20.6 million euro, the growth being smaller than the revenue appreciation due to the revenue recognition of the new developments where construction began between Q4 2022 and Q1 2023. Consequently, the net margin decreased from 42%, as recorded for Q1 2022, to 31% for Q1 2023.
In Q1 2023, One United Properties sold and pre-sold 220 apartments of 18,490 sqm, 488 parking spaces and other unit types for a total of 90.5 million euro. The significant increase in the number of units sold in Q1 2023 can be attributed to a more extensive and diverse portfolio of residential units compared to the same period last year. As of March 31st, 2023, 67% of available apartments were sold out, with One High District being the most sought-after development for the second consecutive quarter. Contracts concluded with customers as of March 31st, 2023, are expected to bring in 260 million euro in additional cash by 2025.
