One United Properties (ONE) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated turnover was RON 352.1 million, down 16% year-over-year due to prior-year reclassification of apartments to rental properties, not a decline in core activity.

• Net profit reached RON 96.2 million, a 39% decrease year-over-year, reflecting the absence of fair value gains and lower margins from units sold in developments under construction.

• Residential sales remained robust, with 146 units sold/pre-sold for EUR 45.1 million and a 77% pre-sales rate as of March 31, 2025.

• Rental income, including tenant services, increased 3% to RON 39.5 million, with a 97% lease rate and 91% occupancy in the commercial portfolio.

• Cash position improved 14% to RON 491.2 million, supported by strong collections and pre-sales.

Financial highlights

• Revenues from residential property sales rose 1% to RON 309.1 million; net income from residential property fell 5% to RON 111.1 million.

• Net margin for residential segment decreased to 35.9% from 38.2% in Q1 2024.

• EBITDA reached RON 120.5 million and gross profit RON 112.3 million, both lower year-over-year due to the absence of last year's fair value gains.

• Net debt at RON 583.6 million, only 10% of total assets.

• Total assets grew 3% to RON 5.7 billion; equity increased 4% to RON 3.6 billion.

Outlook and guidance

• 2025 is expected to be a milestone year, with as many units to be delivered as in the past decade combined.

• 2025 budget targets turnover of RON 1.55 billion (+8%) and net profit of RON 393.5 million (+6%), driven by strong residential demand and growing rental income.

• Residential sales expected to rise 14% to RON 1.3 billion; rental income and tenant services forecasted to grow 19% to RON 180.7 million.

• Interim dividend distribution from H1 2025 net profit is planned, with a proposal expected in October 2025.

• No expected decrease in residential net margin for the year, despite low inventory of finished units.