Due to the solid results in the first quarter, the cash position increased 11% since the beginning of the year, to 114.5 million euro, on a loan-to-value ratio 25%.
The net income from residential sales amounted to 16.9 million euro, generating a 42.5% margin, 17 percentage points appreciation compared to Q1 2021. In the first three months of 2022, One United Properties sold and pre-sold 120 apartments with a total surface of 9,811 sqm, 129 parking spaces and 10 commercial spaces and other units for 28.6 million euro.
The rental income, which includes the revenue generated by the office as well as retail divisions, registered a significant, elevenfold increase, reaching 1.3 million euro. The effect has been driven by the revenues from tenants at One Tower, which was leased out at 91% as of March 31st, 2022, and One Cotroceni Park Phase 1, leased out at 78% as of March 31st, 2022, however the latter not yet generating full income since most tenants are still in the fit-out phase.
Moreover, as of 2022, One United Properties consolidated results also include the performance of Bucur Obor, an emblematic shopping center in Bucharest with a gross leasable area of 26,000 sqm, where the Group holds a majority stake. The management estimates that the revenues from rental income will grow quarter-on-quarter, bringing more significant weight to the total turnover throughout 2022.
„Romania’s real estate market has continued its solid performance in 2022 and we can notice an ever rising demand for our developments. On this dynamic market, One United Properties is maintaining its leading poistion considering we ended the first quarter of 2022 with all-time highs both in terms of revenues, and profit,” says Victor Capitanu, co-CEO of One United Properties.
As of March 31st, 2022, One United Properties had 173,000 sqm of land plots for further residential development under permitting and in the planning phase, most with an estimated start of construction in 2022, in Bucharest and Constanta (Mamaia). The Group estimates the construction of more than 4,200 apartments and commercial spaces on these land plots. Moreover, besides the owned landbank, the company has a strong pipeline of new plots of land for further development.
„2022 means diversification for One United Properties, as we are further expanding the office segment and our retail units. Both managed to bring notable profits in the first three months and will continue to rise during the year. In paralle, we continue to focus on expanding ONE’s high-end brand,” says Andrei Diaconescu, co-CEO of One United Properties.
One United Properties is currently in advanced negotiations for 10 future developments as well as it is in early discussion or negotiation stages for more than 20 other developments. The 10 developments currently in advanced negotiations are primarily focused on medium and medium-high income residential properties, the segment where the Group has registered excellent performance with sales of One Cotroceni Park. If signed, approximately 10,000 apartments with more than 1 million square meters above ground of a gross buildable area would be developed on these lands by the company over the next seven years. After they are developed, these developments could generate a gross development value of more than 2.3 billion euro and a potential gross profit for One United Properties of 900 million euro.
In Q1 2022, ONE shares were consistently amongst the most traded financial instruments on the Bucharest Stock Exchange.
(English version by Catalina Apostoiu)