One United Properties posts a consolidated turnover of EUR 306.6 mln and a gross profit of EUR 105.9 mln in 2023

One United Properties (BVB: ONE), the leading green developer of residential, mixed-use and office real estate in Romania, posts a preliminary consolidated turnover of EUR 306.6 mln for 2023, a 30% increase compared to 2022. The gross profit reached EUR 105.9 mln, a 9% increase excluding the one-off gain from Bucur Obor’s bargain purchase of EUR 19.1 mln recognized in 2022. The net profit amounted to EUR 89.6 mln, an increase of 8% compared to 2022, excluding the one-off.

"Last year presented numerous challenges for the real estate sector globally, yet One United Properties thrived, as evidenced by our record number of deliveries and the high pre-sales level at the developments currently under construction. Our revenue recognition policy ensures that our residential sales are not merely instant gains but unfold into long-term profitability as we progress through the construction phases. This strategic approach, underpinned by our commitment to securing a minimum of 35% profit margin across all developments, is a testament to our robust investment potential. Despite the industry's hurdles, we maintained our loan-to-value ratio at 28%, significantly below the European real estate average of 50%. Our ability to sustain such low leverage throughout 2023 while expanding our portfolio is a clear indicator of our operational efficiency, strong balance sheet and prudent management, therefore setting excellent premises for 2024 as another year of sustained growth for our company", said Victor Căpitanu, co-CEO at One United Properties.

Revenues from the residential segment reached EUR 226.9 mln in 2023, a 45% year-on-year increase driven by a diverse residential offering. The value of residential sales, meaning the revenue recognized within the year for the sales made in prior years based on the level of the completion, is an absolute record for the Group, overpassing for the first time the EUR 200 mln mark within a single year.

At the level of sales and pre-sales of units, despite a 16% decrease in the number of residential sales in Bucharest in 2023, One United Properties defied market trends by increasing residential unit sales by 59% compared to 2022. The Group sold and pre-sold 953 apartments with a total surface of 80,757 sqm, as well as 1,584 parking spaces and other unit types, for a total of EUR 274.9 mln. By the end of 2023, 71% of the Group’s portfolio was sold and pre-sold, underlining a strong demand across all One United Properties developments. Based on the contracts signed with clients as of December 31st, 2023, One United Properties expects additional cash inflows of EUR 295 mln by 2025.

Nonetheless, the revenue and the profit of all sales made in 2023 are not fully reflected in the Group’s results for 2023 due to the revenue recognition applied by One United Properties. Consequently, the net margin of the residential segment reached 27.4% for 2023, a decrease vs 41.4% registered in 2022 as 3 new large-scale developments in the early stages of construction were added to the sales portfolio between Q4 2022 and Q3 2023, therefore temporarily affecting the net margin. The margin from residential sales is expected to continue increasing over the following years as these large-scale developments – One Lake Club, One High District and One Lake Club – progress. One United Properties targets a long-term margin of 35% across all its residential developments.