Excluding the net impact of the fair-value gains, the bottom-line increased 8%.
“This has been a solid quarter for One United Properties, marked by substantial increases in net income from residential property sales and net rental income, driving improved profitability across our core segments. Achieving these results is particularly noteworthy given that construction progress was slower than anticipated this year, due to administrative delays. What matters though is that this turnover is not lost, but simply delayed, reflecting the company’s revenue recognition model that favours recognition of sales in line with the construction progress, according to the International Financial Reporting Standards,” stated Victor Capitanu, co-CEO of One United Properties.
Revenue from the residential segment reached RON816.6 million (EUR164.2 million), a 7% YoY decrease. However, net income from residential properties increased by 12% YoY to RON282.8 million (EUR56.9 million).
Rental income, which includes revenue from the commercial division and tenant services, increased by 15% YoY to RON 113.6 million (EUR 22.8 million) in 9M 2024. Net rental income saw a 19% YoY rise, reaching RON 81.1 million (EUR 16.3 million).
In the first nine months of 2024, One United Properties successfully leased and pre-leased 12,100 square meters of office and retail spaces and signed multiple contract extensions totaling 6,770 square meters. The financial impact of these new leases will be reflected in future revenues.
The gross loan-to-value ratio remained stable at 30% as of September 30, 2024.
“Our financial position is at its strongest, as demonstrated by our robust cash reserves, substantial real estate assets, and low leverage. Since our IPO, we have significantly scaled our business, tripling our assets and equity, while maintaining a lean operational structure and controlling administrative costs. We currently have EUR 1.5 billion in Gross Development Value under construction and an additional EUR 1.8 billion in the pipeline. This expanding portfolio, coupled with our disciplined financial management, positions us to seize new opportunities in the Bucharest real estate market and continue contributing positively to the communities we serve,” added Andrei Diaconescu, Co-CEO of One United Properties.
As of September 30, 2024, One United Properties had 14 developments under construction, encompassing 4,041 units, 22,000 sqm of office spaces and 21,000 sqm of commercial spaces with a total Gross Development Value (GDV) of EUR 1.5 billion. As of the end of the period, 70% of the units available for sale, either under development or delivered, were sold out. Amounts to be received under contracts concluded with customers as of September 30, 2024, are EUR 353 million in additional cash by 2026.
(English version by Catalina Apostoiu)