„The results from Q1 2024 lay a solid foundation for the year and clearly align with our strategic goals and financial targets for 2024. We are particularly pleased with the significant construction progress across all our developments. This progress has helped better reflect the exceptional efforts of our sales team from the past 15 months, as visible in the net margin from residential sales, which reached 39% for Q1 2024. As we look ahead, our focus remains on maintaining the growth momentum. We are confident that the strategic blueprint we follow regarding product offering and business expansion will not only cater to our customers’ needs but also deliver substantial value to our shareholders”,said Victor Capitanu, co-CEO at One United Properties.
Revenues from the residential segment reached RON306.4 million (EUR61.6 million) in Q1 2024, a 7% YoY decrease. However, the net income from residential property saw a 16% increase to RON119.5 million (EUR24 million). This growth was primarily driven by the revenue recognition from the new developments where construction was initiated in 2022 and 2023, where substantial construction progress was seen, paired with continued strong sales and pre-sales of residential units. Consequently, the net margin increased significantly from 30.8%, as recorded for Q1 2023, to 39% for Q1 2024.
The rental income, which includes the income generated by the commercial division and the revenues from the tenant services, saw a 22% YoY increase, reaching RON38.5 million (EUR 7.7 million) in Q1 2024. The effect has been driven by the revenues coming from the entire portfolio, but particularly from One Cotroceni Park, where the tenants continued to move in during 2023.
The Group ended Q1 2024 with a strong cash position of RON339.6 million (EUR 68.3 million), down by 19% since the beginning of the year due to the payment of the first tranche of the 2023 dividend of RON37.9 million (EUR 7.6 million) paired with significant development activity.
The gross development value of the buildings under construction amounted to more than 1.2 billion euros in Q1 2024.
“The financial results for Q1 2024 underscore the resilience and adaptability of One United Properties business model and the long-term value we build for our stakeholders. Our strong profit figures reflect our strategic approach to navigating market fluctuations and capitalizing on growth opportunities. The exceptional continued demand for our properties, especially at One Lake District and One Lake Club, as well as significant increases in revenues for our commercial segment, demonstrate our effective market positioning and commitment to quality. Our goal for the remainder of the year is to continue leveraging our industry-leading practices in sustainable development to further strengthen our market leadership and enhance shareholder returns” said Andrei Diaconescu, co-CEO at One United Properties.
The gross loan-to-value ratio of One United Properties was stable at 29% at the end of Q1 2024, unchanged since the end of 2022, demonstrating strong financial health and low leverage compared to European peers.
Net debt stood at RON774.6 million (EUR 155.9 million), representing 15% of the total assets, which were RON5.1 billion (EUR 1 billion).
For 2024, One United Properties budgeted turnover of EUR1.75 billion (EUR 349.9 million) and a gross profit of RON617.5 million (EUR 123.5 million).
(English version by Catalina Apostoiu)