One United boasts 54% higher turnover, double gross profit YOY

One United Properties reported a consolidated turnover of EUR 136.7 mln in the first half of 2022, 54% higher compared to the similar period of last year. The gross profit doubled and reached EUR 78.8 mln, while the bottom line rose 136%, amounting to EUR 70.3 mln.

The green developer of residential, mixed-use, and office real estate also managed to maintain a cash position of EUR 102.7 mln and a loan-to-value ratio of 25%.

“The residential and commercial divisions continued their positive evolution in 2022, resulting in the EBITDA being 11% above the value budgeted for the first half of 2022. Net profit is 23% higher. The excellent cash position recorded as of June 30 will be further supported with EUR 51.5 mln raised during the share capital increase, resulting in a negative net debt,” said One United co-CEO Victor Capitanu.

“All the indicators are pointing towards a strong position of our business as we look forward to increasing our investment and development activity in the coming period,” he added.

The company’s performance this year was built on a 15% increase in revenues from residential property sales. Net income from residential properties increased significantly, by 74% year-on-year, reaching EUR 38.4 mln due to most of the developments getting closer to completion. This generated a 49% net margin, a 17pp appreciation compared to the same period of last year.

One United is to receive an additional EUR 168.2 mln by the end of the year for sales contracted by clients, many at the One Lake Club and One Herastrau Vista, two of its development projects.

Rental income reached EUR 4.7 mln from locations such as Bucur Obor, One Tower, and One Cotroceni Park. The management estimates that the revenues from rental income will continue to grow quarter-on-quarter, bringing more significant weight in the second half of 2022, given the growing occupancy in the office developments as well as the acquisition of fully leased One Victoriei Plaza in July 2022.

Building permits are also underway for One Lake District, One High District, and One Floreasca Towers, and One United’s management expects to start sales at the abovementioned locations before the end of the year.

To support its future investments, One United recently initiated a share capital increase, raising EUR 51.5 mln from existing and new investors. The new equity will be invested with priority in new residential developments located primarily in Bucharest. The company plans to invest the capital raised in ten new developments.

One United Properties (ONE) is traded on the Bucharest Stock Exchange (BVB). The company’s shares were recently moved to the mid-cap category by the FTSE Global Equity Index Series for Emerging Europe.