One United Properties posts a consolidated turnover of 235.4 million euros and a gross profit of 116.2 million euros in 2022
One United Properties (BVB: ONE), the leading Romanian green developer of residential, mixed-use and office real estate, posts a consolidated turnover of 235.4 million euros in 2022, a 4% increase compared to 2021. The gross profit reached 116.2 million euros, a 5% YoY decline following an intense investment activity, while the bottom line decreased by 1%, amounting to 101.9 million euros. The company ended the year with a strong cash position of 114.6 million euros, higher by 12% compared to the beginning of the year, due to the capital increase contribution, which brought 51.5 million euros in Q3 2022, and despite continuous investments and dividend pay-outs of 15.9 million euros in 2022. The gross loan-to-value indicator was 28% as of 31.12.2022, while the net of cash loan-to-value was 11%.
"We are proud to close another year with historical results for One United Properties, despite the challenges in the markets, and we look forward to continuing this ascending trend in 2023, and on a long-term basis. We start this year with a rich residential, office and retail portfolio, ready to cater to the needs of residents and tenants across the medium-, medium- to high, and ultra-high segments. As of 01.01.2023, 2,285 units at our delivered and under construction developments were already sold, meaning that our sales team had a portfolio of 1,143 residential units available for sale. Moreover, we estimate pre-sales for additional 1,167 units located at the first phases of One Lake District and One Lake Club to start within the first half of 2023, thus securing a steady cash flow for our company. We continuously look for opportunities in the market, which will allow us to build a solid pipeline for the years to come; opportunities such as One Cotroceni Towers, our latest announcement, or One Downtown and One Plaza Athénée, both developments which will strengthen our urban regeneration strategy in the historic center of Bucharest. With EPS of 0,14 lei, our company brought investors a 15% Earnings Yield in 2022. Our plan is to reinvest most of these profits in 2023 while maintaining our biannual dividend pay-out policy," said Victor Capitanu, co-CEO at One United Properties.
The increase in turnover was supported by a 9% increase in revenues from residential property sales, which reached 156 million euros in 2022 versus 142.9 million euros in 2021. The net income from residential property increased by 29% YoY, reaching 64.7 million euros. This generated 41% net margin for 2022, a 6pp increase compared to the 2021 result.
In 2022, One United Properties sold and pre-sold 599 apartments with a total surface of 52,724 sqm, 978 parking spaces and other unit types, as well as early-stage apartments for 169.2 million euros. As of 31.12.2022, 62% of apartments under development were sold out. Excluding the 1,080 residential units at One Floreasca Towers, One High District, and One Mamaia Nord 2 that were added to the sales team portfolio in Q4 2022, 82% of apartments were already contracted as of the yearend. Amounts to be received under contracts concluded with customers as of 31.12.2022, are 231 million euros in additional cash by 2025.
"We continue to develop the city responsibly, while being considerate for Bucharest's urban regeneration needs, and with state-of-the-art ESG standards always in mind. We estimate that in the current context, where the safety and sustainability of developments finally grow in importance for the end consumers, the demand for living in the communities we create will continue to accelerate. This is already visible through the results generated in the last three months of 2022, when 28% of the new units added to our sales team portfolio were pre-sold in less than a quarter. Particularly exceptional sales were registered at the large-scale development of 786 units, One High District, where 35% of apartments were sold within the first two months since the launch, or One Herastrau Vista, where within six months since breaking the ground, 64% of units were already sold, thus showcasing the extraordinary potential that One United Properties has across various customer segments," said Andrei Diaconescu, co-CEO at One United Properties.
The rental income, which includes the income generated by the office and retail divisions, registered a 9-fold increase, reaching 12.2 million euros in 2022. As of 31.12.2022, the company's office portfolio counted gross GLA of 138,000 sqm. Together with the retail component, the total commercial rental portfolio of One United Properties had GLA of over 180,000 sqm. The revenues from rental income are estimated to grow QoQ, bringing even more significant weight in 2023.
As of 31.12.2022, One United Properties had 61,108 sqm of land plots for further residential development in Bucharest, with total above-ground GBA of 248,950 sqm. The landbank already increased in 2023 to 105,971 sqm, with above-ground GBA of 434,939 sqm, following the acquisition of a 4.5-hectares plot on Soseaua Progresului in Bucharest, where the company intends to build a mixed-use development, One Cotroceni Towers. For all the plots currently in the planning phase, the Group estimates the construction of over 2,800 apartments and almost 60,000 sqm of office spaces. Additionally, One United Properties has 40,000 sqm of buildings for restoration and further development, including significant urban regeneration landmarks such as One Plaza Athénée, One Downtown, One Gallery and One Athénée. Furthermore, pipeline for future land acquisitions is strong.
In 2022, ONE was the 9th most traded stock on the Bucharest Stock Exchange. In volatile 2022, ONE shares performed in line with the benchmark index BET, registering a decline of -11,9%, versus BET index, which recorded -10.7% drop, and significantly better performance than the key real estate indices FTSE EPRA Nareit Developed Europe -36.5%, FTSE EPRA Nareit UK (ELUK) -31.9%, STOXX Europe 600 Real Estate (SX86P), -42.1%. As of 19.09.2022, One United Properties shares were upgraded within the FTSE Global Equity Index Series for Emerging Europe, moving to the mid-cap category.