BUCHAREST, Romania, Aug. 28, 2024 /PRNewswire/ -- One United Properties (BVB: ONE), Romania's leading green developer of residential, mixed-use, and office real estate, recorded a 10% increase in the profitability of the company's key segments, which comprise the net income from residential properties and net rental income, while consolidated revenues reached EUR 140.6 million in the first half of 2024. Gross profit stood at EUR 53.2 million, while net profit reached EUR 46 million.
"The combined 10% increase in profitability of our two core segments, to 49.1 million euros, underscores the strength and resilience of our business model, based on performant residential and office divisions. The dedication of our sales and leasing teams has been crucial to our solid results, which will be reflected in future revenue and net profits in line with our revenue recognition policy. Despite industry challenges, our commitment to offering the highest quality residential and office spaces remains our winning strategy, enabling us to maintain strong financial stability and a positive outlook," said Victor Capitanu, Co-CEO of One United Properties.
Revenue from the residential segment reached EUR 105.4 million, a 14% YoY decrease. However, net income from residential properties increased by 6% YoY to EUR 38.3 million. This growth was driven by the new developments initiated between 2022 and the first half of 2024, where significant construction progress paired with strong sales and pre-sales of residential units led to improved results. Notably, the net margin from residential sales rose from 29.5% in H1 2023 to 36.3% in H1 2024, reflecting the impact of ongoing construction progress.
Rental income, which includes revenue from the commercial division and tenant services, increased by 18% YoY to EUR 15.1 million in H1 2024. Net rental income saw a 25% YoY rise, reaching EUR 10.8 million. In the first half of 2024, One United Properties successfully leased and pre-leased 8,100 square meters of office space and signed multiple contract extensions totaling 6,770 square meters. The financial impact of these new leases will be reflected in future revenues.
"The first half of 2024 marked a high level of activity for One United Properties as we expanded our iconic One Community and advanced our construction projects. With 12 developments underway, including the transformative One Athénée and One Gallery developments, our work will leave a lasting impact on the city of Bucharest. While the market presents challenges, the scale of our operations is unparalleled, and we are confident that the results of this immense effort will be evident in our financial performance in the coming quarters as we begin delivering high-quality residential units and office spaces to our customers," said Andrei Diaconescu, Co-CEO of One United Properties.
As of June 30, 2024, One United Properties had 12 developments under construction, encompassing 4,041 residential and commercial units and nearly 45,000 square meters of office and commercial space. Despite significant development activity, which led to a 20% decline in the cash position, the Group maintained a solid cash reserve of EUR 67.5 million. Notably, as of the end of H1 2024, the loan-to-value ratio stood at 30%, a 2 percentage-point increase since the end of 2023. Net debt remained low at EUR 170.5 million, representing 16% of total assets.
Amounts to be received under contracts concluded with customers as of June 30th, 2024, will total 331 million euros in additional cash by 2026.
ONE UNITED PROPERTIES (BVB: ONE) is the leading green investor and developer of residential, mixed-use, and commercial real estate in Bucharest, Romania. One United Properties is an innovative company dedicated to accelerating the adoption of construction practices for safe, energy-efficient, sustainable, and healthy buildings, and has received numerous awards and recognitions for its superior sustainability, energy efficiency, and wellness. The company is publicly traded on the Bucharest Stock Exchange, and its shares are included in multiple indices such as BET, STOXX, MSCI, FTSE, ROTX and CEEplus.
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