One United Properties posts gross profit of RON 604 million in 2021


One United Properties (BVB: ONE), the leading green developer of residential, mixed-use and office real estate in Romania, recorded revenues of 1.1 billion lei in 2021, a 105% increase compared to the result of 2020, a historic milestone for the company. Gross profit jumped 192%, reaching 603.5 million lei. One United Properties, listed on the main market of the Bucharest Stock Exchange, published its preliminary financial results for 2021 on February 28.

We are delighted to announce a historic milestone for One United Properties both in terms of revenue, which exceeded 1.1 billion lei, and gross profit of 0.6 billion lei, in the first year since our listing on the Bucharest Stock Exchange. We debuted on the stock exchange with a solid development plan, based on the immense potential of the residential and office market in Bucharest, with the intention of continuing to grow and seize a good part of this potential. In line with our dividend policy, we plan to distribute a cash dividend to our shareholders in two semi-annual installments this year, but given the 36% net margin we had in 2021, we will focus on reinvesting the majority profits in taking advantage of market growth opportunities and creating additional value for our stakeholders”, said Victor Capitanu, co-CEO of One United Properties.

The income of the residential segment amounted to 675.4 million lei in 2021, an increase of 54% compared to 2020. In 2021, 699 apartments, 926 parking spaces and 69 commercial spaces and other units were sold and pre-sold for a total of 202.2 million eurosan increase of 115% compared to 2020. During the same period of 2020, the Group sold 184 apartments, 249 parking spaces and 7 commercial spaces and other units for a total of 94 million euros.

Sales took off in 2021 mainly due to the start of sales in the second half of One Cotroceni Park where the Group sold 479 of the 868 residential units available. One Cotroceni Park has an estimated completion date of Q4 2023, and it is One United Properties’ largest development to date. In addition, in 2021, the Group recorded a nearly 10-fold increase in apartment sales at One Verdi Park, a project of 334 residential units, whose delivery is estimated in the fourth quarter of 2022. A significant recovery in sales also recorded for other developments expected to be delivered in 2022: a 69% increase in sales for One Modrogan, a 44% increase for One Floreasca Vista as well as a 43% increase for One Peninsula, which is expected in second quarter of 2023.

We ended 2021 with an excellent cash position of Lei 508 million, driven by net cash proceeds from the IPO and positive cash flow generated by sales and rental activity. We continue to focus on the availability of cash to seize opportunities, such as our recent investment in Bucur Obor which we finalized earlier this month. In 2022, we will deliver four residential developments: One Verdi Park,A modrogan,A Timpuri Noi, and One Floreasca Vista, and we will kick off construction at One Lake District and One High District, two large-scale residential developments which, like One Cotroceni Park, cater to the middle to upper-middle income customer segment . We estimate investments at 1.2 billion lei this year, as we plan to expand our real estate portfolio. said Andrei Diaconescu, co-CEO of One United Properties.

The rental income of the office division reached 11.8 million lei, an increase of 608%. Most of the revenue was generated in H2 2021 alone due to tenants moving into the One Tower office building. Rental income will continue to grow in 2022 following the receipt in December 2021 of One Cotroceni Park Phase 1 (currently 78% let), the almost complete rental of One Tower (currently 94% let) as well as the consolidation of the results of Bucur Obor, a company in which One United Properties has held a majority stake since February 8and. The company’s current office portfolio comprises 101,000 m² of office space and includes a tower, a Cotroceni Park office phase 1, a Herastrau office and a north gate. The gross leasable area (GLA) of One United Properties will reach 136,000 m² after the delivery of One Cotroceni Park Office Phase 2, estimated for December 2022.

In 2021, One United Properties’ EBITDA increased by 181%, from 217.3 to 611.7 million lei. The gross result reached 603.5 million lei, an increase of 192% compared to 2020 while the net result increased by 186%, reaching 506.4 million lei.

As of December 31st, 2021, One United Properties had 159,000 m² of land for further residential development under permit and in the planning phase (the last with an estimated start of construction in 2022), in Bucharest and Constanta (Mamaia). The Group plans to build more than 4,000 apartments on these plots. Additionally, the company has a strong land portfolio for its land bank at various stages of negotiation.

For 2022, One United Properties estimates revenues of 1.52 billion lei and gross profit of 647.4 million lei. Income from residential property sales in 2022 is expected to reach 1.2 billion lei, an increase of 72% compared to the preliminary result of 2021, while rental income is estimated at 71.7 million lei in 2022, i.e. a six-fold increase from the 2021 result. The 2022 budget, which the One United Properties Board of Directors adopted on January 10and2022, is subject to shareholder approval at the General Meeting of Shareholders, which will take place on April 26and2022.


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