One United Properties (BVB: ONE), the leading Romanian green developer of residential, mixed-use and office real estate, posts a consolidated turnover of 89.3 million euro in Q1 2023, a 27% increase compared to Q1 2022.
The gross profit reached 36.2 million euro, a 61% increase excluding the one-off gain from Bucur Obor’s bargain purchase recognized in Q1 2022 in the amount of 19.6 million euro. The net profit amounted to 30.8 million euro, an increase of 120% compared to Q1 2022 (a 8% year-on-year decrease if including the gain impact). The company ended the quarter with a strong cash position of 93.4 million euro, down 18% since the beginning of the year due to significant investment activity carried out since the beginning of the year. As a result, the gross loan-to-value indicator was 28% as of March 31st, 2023, while the net of cash loan-to-value was 14%.
"One United Properties has had a remarkably strong start to the year 2023, marked by one of the best quarters in our company's history in terms of apartment sales and pre-sales. These results highlight the strength and reputation of the ONE brand and demonstrate the prospects for the dynamic real estate market in Bucharest. Since our IPO, we have consistently showcased our ability to successfully compete across three key residential segments - medium, upper-medium, and high-end - cementing our position as a leader in Romania's premium real estate sector. With an annualized EPS of 0.03 euro, representing an earnings yield of 19%, we are confident that we can sustain our momentum and further fortify our position as an important player in the local real estate industry,”
said Victor Căpitanu, co-CEO at One United Properties.
The increase in turnover was supported by a 68% increase in revenues from residential property sales, which reached 66.9 million euro in Q1 2023 versus 39.9 million euro in Q1 2022. The net income from residential property increased by 24% YoY, reaching 20.6 million euro, the growth being smaller than the revenue appreciation due to the revenue recognition of the new developments where construction began between Q4 2022 and Q1 2023. Consequently, the net margin decreased from 42%, as recorded for Q1 2022, to 31% for Q1 2023.
In Q1 2023, One United Properties sold and pre-sold 220 apartments of 18,490 sqm, 488 parking spaces and other unit types for a total of 90.5 million euro. The significant increase in the number of units sold in Q1 2023 can be attributed to a more extensive and diverse portfolio of residential units compared to the same period last year. As of March 31st, 2023, 67% of available apartments were sold out, with One High District being the most sought-after development for the second consecutive quarter. Contracts concluded with customers as of March 31st, 2023, are expected to bring in 260 million euro in additional cash by 2025.
"Our exceptional performance in Q1 2023 is a testament to our unwavering commitment to delivering high-quality properties that meet the needs and aspirations of our customers. We take great pride in our ability to create communities that resonate with a wide range of buyers and tenants. The outstanding performance of our sales team, coupled with the impressive results of our office and retail division, where the rental income generated in Q1 alone exceeded 40% of our full-year 2022 result, underscores the strength of our brand and our ability to compete across all segments of the market. As we continue to capitalize on market opportunities and execute our strategic plans, we are confident that One United Properties will maintain its momentum and further strengthen its position in the real estate industry. With a current portfolio of 1,357 units available for sale and presale, 3,372 units planned for sale later this year, and a robust landbank spanning 105,971 sqm, we are well-positioned to take advantage of market opportunities and continue delivering strong results,”
said Andrei Diaconescu, co-CEO at One United Properties.
The rental income, which includes the income generated by the commercial division and the revenues from the tenant services, registered a 267% increase, reaching 6.4 million euro. The effect has been driven by the revenues from the entire portfolio, particularly tenants at the largest developments: One Tower, One Cotroceni Park 1, One Victoriei Plaza, and the impact of the results generated by Bucur Obor, consolidated under the retail division. Looking ahead, the management anticipates continued quarter-on-quarter growth in rental income, supported by a more significant commercial portfolio, especially following the completion of One Cotroceni Park 2 in Q1 2023, which was already leased to 54% capacity as of March 31st, 2023. As of the end of Q1 2023 the company's office portfolio counted a total GLA of 130,000 sqm of office space, including One Tower, One Cotroceni Park 1, One Cotroceni Park 2, One Victoriei Plaza, One North Gate, and Eliade Tower. Together with the retail portfolio, including mainly Bucur Obor and One Gallery, the total commercial rental portfolio of One United Properties has a GLA of approximately 172,000 sqm.
As of March 31st, 2023, One United Properties had 105,971 sqm of land plots dedicated to future residential development in Bucharest, with total above-ground gross building rights (GBA) of 434,939 sqm. All these plots of land included in the landbank are currently in the planning phase. The Group estimates the construction of over 2,800 apartments and commercial units within developments such as One City Club, One Herastrau City and One Cotroceni Towers, and almost 60,000 sqm of office spaces in Phase 3 and 4 of One Cotroceni Park. Additionally, One United Properties has approximately 40,000 sqm of buildings for restoration and further development, including significant urban regeneration landmarks such as One Plaza Athénée, One Downtown, One Gallery and One Athénée. Furthermore, the pipeline for future land acquisitions is robust.
In Q1 2023, ONE was the 10th most traded stock on BVB, registering trades of 6.4 million euro, and additional EUR 4.9 million trade executed through the POF market that is not included in the liquidity calculations. As of March 31st, 2023, the market capitalization of One United Properties was 619.5 million euro. As of March 20th, 2023, ONE shares are included in the ROTX index of Wiener Börse (Vienna Stock Exchange). The ROTX is a capitalization-weighted price index comprising 15 Romanian blue-chip stocks traded at Bucharest Stock Exchange.