Romanian developer One United doubles turnover and more than triples net profit in H1
One United, one of the biggest real estate developers in Romania, reported a turnover of RON 434 mln (EUR 88.5 mln) in the first half of this year, up by 96% compared with the same period of 2020. The net profit surged by 267% to RON 147.5 mln (EUR 30 mln).
“The Romanian real estate market closed the best semester in its history, and One United Properties’ financial results reflect this positive evolution. The performance we report today for the first six months of 2021 confirms the growth prospects that we have promised to our investors and the immense potential that lies within the local market,” said Victor Capitanu, co-founder of One United Properties.
He added: “The sales generated between July and August indicate that the second part of the year will continue to bring new records to the residential market. With a cash position of RON 350 million as of June 30 and additional cash proceeds from the IPO in the total amount of RON 252 million, we are targeting accelerated development in the coming months.”
Strong results from residential development
One United said revenues from the development and sale of residential properties increased 51% compared to the same period of last year to RON 332.8 million. The net income from residential property also registered a 46% increase to RON 108.1 million. Consequently, the net margin from residential property sales reached 32.5% for the first six months of 2021. The revenues from the development of office buildings amounted to RON 88.4 million, with the main impact being generated by the development of One Tower and One Cotroceni Park.
“Through the IPO completed in July 2021, we have entered a stage of maturity as a business, but the performance we present today shows that in the case of One United Properties, maturity does not come at the expense of growth. From the acquisition of land for One Lake Club and for One High District, starting construction of the residential phase of One Cotroceni Park, to the completion of One Floreasca City and Neo Mamaia, the first half of 2021 marked multiple milestones for One United Properties,” said Andrei Diaconescu, co-founder of One United Properties.
In the first six months of this year, One United Properties sold 261 apartments for EUR 96 mln, compared with 85 apartments sold in the first half of 2020.
As of June 30, the land owned by One United Properties for further real estate development reached a total surface of 138,000 sqm, which the company estimates will allow the construction of more than 3,200 apartments.
ONE share price boosted by positive results
The strong first-half results gave a boost to the company’s shares, which went up by 1.7% on Monday, August 30, to RON 1.99, very close to its IPO price of RON 2.
One United listed its shares on the Bucharest Stock Exchange (BVB) in July after an initial public offering (IPO) carried out at the end of June through which the company raised RON 260 mln (EUR 52.8 mln).
Initial sell-side pressure took the share price down to RON 1.8 in the first two weeks after the BVB debut. However, the ONE shares have recovered in the meantime and their price went up by 10% in the last month. The company currently has a market capitalization of RON 2.8 bln (EUR 577 mln).
One United’s co-founders and co-managers Andrei Diaconescu and Victor Capitanu (opening photo) own 29.76% of the company’s shares each. Their stakes are currently valued at EUR 171 mln.
Other significant shareholders of One United are Swiss investor Claudio Cisullo, Romanian investor Marius Diaconu, and billionaire Daniel Dines, the founder and CEO of UiPath.
(Photo source: the company)