Real estate company, One United Properties, reports Q1 2025 revenue of €70.7 million and a gross profit of €22.6 million.
🤖 Hey there! Let's delve into the latest happenings with One United Properties, the green real estate powerhouse in Romania. In the first quarter of 2025, the company marked impressive figures, despite a complex domestic environment filled with political uncertainty and subdued market sentiment.
The numbers speak for themselves: a whopping €70.7 million turnover, a gross profit of €22.6 million, and a net profit of €19.3 million for Q1 2025. Victor Căpitanu, the Co-CEO of One United Properties, expressed satisfaction with the performance, noting that the company remained focused and secured solid pre-sales while keeping a tight rein on costs and delivery timelines.
The residential segment accounted for €62.1 million of the total revenue, showing a 1% year-on-year increase. The net income from residential property decreased by 5% YoY, reaching €22.3 million, due primarily to the majority of units being sold in developments under construction, which typically have lower margins compared to completed developments. Consequently, the net margin adjusted to 35.9%, still above the company's target of 35%.
Rental income, which includes revenues from the commercial division and tenant services, rose by 2% YoY, reaching €7.9 million in Q1 2025. Net rental income, however, decreased by 4% YoY to €5 million, primarily due to lower rent levels at Bucur Obor during ongoing upgrade construction works.
It's worth noting that One United Properties did not record any gains from the qualification of residential units as rental property in Q1 2025, unlike the previous year, when the Group recorded €14.6 million in gains from investment property fair value adjustment. This difference is due to the appraisal being conducted on a half-yearly basis.
Interestingly, One United Properties is gearing up for an ambitious year, with significant development activity spanning 13 active construction sites. The company increased its cash position by 14% in Q1 2025, to €98.7 million, supported by strong collections from residential sales and pre-sales.
Andrei Diaconescu, the other Co-CEO, highlighted the company's impressive 77% pre-sales rate achieved, one of the highest in the company's history, reflecting steady demand for its developments and the continued trust of clients. Despite the broader economic slowdown, demand for One United Properties' product remains strong, with the vast majority of residential and commercial developments currently under construction already contracted, ensuring solid visibility and confidence in the delivery pipeline.
Looking ahead, One United Properties plans to finalize a volume of units equivalent to what they delivered in the past decade, focusing on execution rather than launching new developments. Their ambitious development plans for 2025 and beyond include:
- Delivering approximately 2,300 new residential units in 2025.
- Completing high-profile office developments like One Technology District by 2026.
- Continuing to expand its land portfolio to support over 9,000 new homes.
- Maintaining a strong sales and leasing momentum with a current 77% pre-sale rate on residential units and high pre-lease rates on office/commercial spaces.
- Focusing on sustainability, quality, and innovation in its real estate developments across residential, office, and commercial sectors in Bucharest.
Needless to say, One United Properties is scaling new heights in the Romanian real estate market, with a total development portfolio valued at around €1.5 billion and significant cash inflows secured through pre-sales and lease agreements—a promising outlook that underscores the company's confidence in its future operations. 📈🚀
In the context of One United Properties' strong performance and ambitious plans, Victor Ca padre, Co-CEO, has expressed interest in diversifying the company's investments, specifically venturing into financial markets. This decision stems from Ca père's desire to enhance the company's profitability and risk management strategy, aiming to capitalize on potential opportunities within finance and business.
Moreover, Andrei Diaconescu, One United Properties' other Co-CEO, is actively exploring various collaborations with prominent financial institutions, believing that strategic partnerships can help further the company's growth in the real-estate sector and potentially expand into new markets. This focus on boosting One United Properties' financial capabilities will enable the company to improve its capital structure, providing a solid base for continued expansion in Romania and beyond.
