One United Properties (ONE) Q3 2024 earnings summary

Executive summary

• Achieved consolidated turnover of EUR 208.5 million (RON 1 billion) in the first nine months of 2024, surpassing EUR 200 million for the second consecutive year, though down 10% YoY.

• Residential segment remains the main contributor, with net income from residential property rising 12% YoY to EUR 56.9 million (RON 282.8 million), and net margin improving to 34.6% from 28.7%.

• Successfully completed a share capital increase, raising over EUR 68 million (RON 340.1 million), with 97% of rights subscribed and significant management reinvestment.

• Launched the ONE 2030 Strategy, targeting 11,000 residential units and 275,000 sq m of commercial assets by 2030.

• Net profit for the period was EUR 60 million (RON 298.6 million), a 13% decrease YoY, but normalized operating result (excluding fair value gains) increased 8-13%.

Financial highlights

• Residential property sales revenue reached EUR 164.2 million (RON 816.6 million), down 7% YoY, with net margin from residential sales improving to 34.6%.

• Rental income, including tenant services, increased 14-15% YoY to EUR 22.8 million (RON 113.6 million); net rental income up 18-19%.

• Operating activity result was EUR 78.6 million, down 10% YoY; EBITDA was RON 390.9 million, down 9% YoY.

• Gains from investment property fair value adjustments fell 42% YoY.

• Total assets grew 13% to EUR 1.13 billion (RON 5.6 billion); cash position rose 47% to EUR 124.1 million (RON 617.6 million) by end of Q3 2024.

Outlook and guidance

• Management targets 2024 turnover of RON 1.75 billion and net profit of RON 525.2 million.

• Management anticipates less cash investment needed for current projects than the EUR 353 million expected from pre-sale contracts through 2026.

• Construction delays in Q2 2024 due to bank financing, but now progressing at full speed; any revenue recognition delays expected to be recovered next year.

• No significant impact observed from changes in VAT or taxation on client demand.

• RON 340.1 million raised in the September 2024 share capital increase will support expansion into the affordable premium segment.