“This has been a solid quarter for One United Properties, marked by substantial increases in net income from residential property sales and net rental income, driving improved profitability across our core segments. Achieving these results is particularly noteworthy given that construction progress was slower than anticipated this year, due to administrative delays. What matters though is that this turnover is not lost, but simply delayed, reflecting the company's revenue recognition model that favours recognition of sales in line with the construction progress, according to the International Financial Reporting Standards. Going forward, we remain committed to advancing our projects and adapting to market needs efficiently,” said Victor Căpitanu, Co-CEO of One United Properties.
Revenue from the residential segment reached €164.2 million, a 7% YoY decrease reflecting the transition of many construction sites into their final stages, where revenue is recognized more gradually. However, net income from residential properties increased by 12% YoY to €56.9 million. Notably, the net margin from residential sales rose from 28.7% in 9M 2023 to 34.6% in 9M 2024, reflecting the impact of ongoing construction progress.
Rental income, which includes revenue from the commercial division and tenant services, increased by 14% YoY to €22.8 million in 9M 2024. Net rental income saw a 19% YoY rise, reaching €16.3 million. In the first nine months of 2024, One United Properties successfully leased and pre-leased 12,100 square meters of office and retail spaces and signed multiple contract extensions totaling 6,770 square meters. The financial impact of these new leases will be reflected in future revenues.
Despite significant development activities, the Company's cash position increased by 47% since the beginning of the year, reaching €124.1 million at the end of Q3 2024, supported by the share capital increase. The gross loan-to-value ratio remained stable at 30% as of September 30, 2024, indicating a solid financial foundation and low leverage compared to European peers. Net debt improved, decreasing to €111.4 million, which represents 10% of total assets.
“Our financial position is at its strongest, as demonstrated by our robust cash reserves, substantial real estate assets, and low leverage. Since our IPO, we have significantly scaled our business, tripling our assets and equity, while maintaining a lean operational structure and controlling administrative costs. We currently have €1.5 billion in Gross Development Value under construction and an additional €1.8 billion in the pipeline. This expanding portfolio, coupled with our disciplined financial management, positions us to seize new opportunities in the Bucharest real estate market and continue contributing positively to the communities we serve,” added Andrei Diaconescu, Co-CEO of One United Properties.
As of September 30, 2024, One United Properties had 14 developments under construction, encompassing 4,041 units, 22,000 sqm of office spaces and 21,000 sqm of commercial spaces with a total Gross Development Value (GDV) of €1.5 billion. As of the end of the period, 70% of the units available for sale, either under development or delivered, were sold out. Amounts to be received under contracts concluded with customers as of September 30, 2024, are €353 million in additional cash by 2026.
