Brothers in Business: One United Properties Steps Up in Q1 2025 Amidst a Volatile Domestic Climate
Real Estate Company, One United Properties, Announces Q1 2025 Revenue of €70.7 million and Gross Profit of €22.6 million
In the tumultuous first quarter of 2025, One United Properties, Romania's top eco-friendly real estate developer, buckled down to record impressive revenue and profit figures. Despite the shaky political landscape and subdued market sentiments, the firm managed a turnover of €70.7 million and a gross profit of €22.6 million, with a net profit of €19.3 million for the three-month period.
"We faced a complicated domestic environment back in Q1 2025, yet we stayed focused, securing solid residential pre-sales and adhering to strict cost and delivery timelines," said Victor Căpitanu, Co-CEO of One United Properties. "Although our turnover shows a decrease from the previous year due to the absence of property reclassifications, our performance matched our budget expectations and demonstrated operational and financial stability for our shareholders, clients, and partners."
Residential segment earnings hit €62.1 million in Q1 2025, marking a 1% year-on-year increase. The net gain from residential properties dipped 5% YoY to €22.3 million due to the majority of units being sold in developments still in progress, which offer lower profit margins compared to completed projects. The net margin declined from 38.2%, as recorded for Q1'24, to 35.9% for Q1'25, yet it remains over the 35% target set by One United Properties for the segment.
Rental revenues swelled by 2% YoY to €7.9 million in Q1 2025, signaling the stabilization of the commercial portfolio. Net rental earnings slipped 4% YoY to €5 million, mainly due to lower temporary rent levels at Bucur Obor during the ongoing upgrade construction works. During Q1 2025, the Group leased and pre-leased 16,520 sqm of office and retail spaces, adding 3,820 sqm of new leases and 12,700 sqm of lease extensions - reinforcing the supreme quality of its commercial portfolio.
No gains were recorded from the qualification of residential units as rental property in Q1 2025, unlike in Q1'24 when the Group recorded €14.6 million in gains from investment property fair value adjustment, representing both rental apartments and gains related to One Technology District. With ongoing construction at One Technology District and Mondrian Hotel throughout Q1 2025, the Group didn't record any gains from office buildings under development or gains from investment property for further development, as appraisal is conducted semi-annually. This will be reflected in the half-year results.
Despite the 13 active construction sites throughout Q1 2025, One United Properties' cash holdings increased by 14% to €98.7 million, bolstered by robust residential sales and pre-sales collections. The gross loan-to-value ratio stood at 28%, a 1 percentage point increase year-on-year. Net debt as of the end of Q1 2025 amounted to €117.3 million, representing a manageable 10% of total assets, which hit a historical high of €1.1 billion.
"2025 is shaping up to be the most ambitious year in our company's history," said Andrei Diaconescu, Co-CEO of One United Properties. "In the first quarter, we concentrated on execution, rather than launching new developments, focusing on sales across our active portfolio. The impressive 77% pre-sales rate achieved underscores the consistently strong demand for our offerings and the continued trust of our clients." Despite the broader economic slowdown, demand for One United Properties' properties remains powerful, and the majority of the residential and commercial developments currently under construction are already contracted, providing solid reassurance for the company's project pipeline.
As of March 31st, 2025, One United Properties had 13 ongoing developments underway, comprising 4,041 residential units, 22,000 sqm of office space, and 21,000 sqm of commercial space, with an estimated Total Gross Development Value (GDV) of €1.5 billion. By the end of Q1 2025, 77% of all available units across developments underway or already delivered had been sold. In 2025 alone, the company plans to deliver 2,300 units – almost equaling the total number of units it delivered throughout the past decade. On the commercial side, the landmark office development One Technology District, due for completion in 2026, is fully leased to Infineon Technologies, while One Gallery has secured a 76% pre-lease rate.
In addition, as of the end of Q1 2025, One United Properties owned or had under pre-SPA 440,052 sqm of land for further development, boasting total above-ground gross building rights (GBA) of over 1,151,444 sqm. All these parcels are currently in the planning stage, with an estimated GDV of an additional €2.2 billion. One United Properties projects the construction of over 9,000 apartments, community services, and 146,000 sqm of rental commercial buildings. Out of these, 121,000 sqm will host offices, and the remaining 25,000 sqm are located within properties slated for historical restoration.
In the following years and beyond, One United Properties is poised for considerable growth, thanks to its vibrant development pipeline, commitment to sustainability, and robust pre-sales performance.
*This is a Press release.
- In Q1 2025, One United Properties decided to invest part of their earnings from the real-estate sector into the expanding opportunities of the finance market, aiming to diversify their business portfolio beyond real estate.
- With the impressive performance in Q1 2025, One United Properties gained potential for further business expansion, as they are now considering increasing their investments in real-estate startups, thus fostering growth within the industry.
