“The first three months of 2024 were marked by solid financial performance for One United Properties. The results from Q1 2024 lay a solid foundation for the year and clearly align with our strategic goals and financial targets for 2024. We are particularly pleased with the significant construction progress across all our developments. This progress has helped better reflect the exceptional efforts of our sales team from the past 15 months, as visible in the net margin from residential sales, which reached 39% for Q1 2024. As we look ahead, our focus remains on maintaining the growth momentum. We are confident that the strategic blueprint we follow regarding product offering and business expansion will not only cater to our customers' needs but also deliver substantial value to our shareholders”, said Victor Capitanu, co-CEO at One United Properties.
Revenues from the residential segment reached €61.6 million in Q1 2024, an 8% YoY decrease. However, the net income from residential property saw a 16% increase to €24 million. This growth was primarily driven by the revenue recognition from the new developments where construction was initiated in 2022 and 2023, where substantial construction progress was seen, paired with continued strong sales and pre-sales of residential units. Consequently, the net margin increased significantly from 30.8%, as recorded for Q1 2023, to 39% for Q1 2024.
The rental income, which includes the income generated by the commercial division and the revenues from the tenant services, saw a 21% YoY increase, reaching €7.7 million in Q1 2024. The increase has been driven by the revenues coming from the entire portfolio, but particularly from One Cotroceni Park, where the tenants continued to move in during 2023.
One United Properties ended Q1 2024 with a strong cash position of €68.3 million, down by 19% since the beginning of the year due to the payment of the first tranche of the 2023 dividend of €7.6 million and paired with significant development activity. The gross development value of the buildings under construction amounted to more than €1.2 billion in Q1 2024.
"The financial results for Q1 2024 underscore the resilience and adaptability of One United Properties business model and the long-term value we build for our stakeholders. Our strong profit figures reflect our strategic approach to navigating market fluctuations and capitalizing on growth opportunities. The exceptional continued demand for our properties, especially at One Lake District and One Lake Club, as well as significant increases in revenues for our commercial segment, demonstrate our effective market positioning and commitment to quality. Our goal for the remainder of the year is to continue leveraging our industry-leading practices in sustainable development to further strengthen our market leadership and enhance shareholder returns”, said Andrei Diaconescu, co-CEO at One United Properties.
The gross loan-to-value ratio of One United Properties was stable at 29% at the end of Q1 2024, unchanged since the end of 2022, demonstrating strong financial health and low leverage compared to European peers. Net debt stood at €155.9 million, representing 15% of the total assets, which overpassed €1 billion.
For 2024, One United Properties budgeted a turnover of €349.9 million and a gross profit of €123.5 million.
