In 2024, One United Properties expects a total turnover of RON 1.75bn, representing an increase of 15% YoY. Of this, residential revenue is estimated at RON 1.4bn, a 26% increase YoY, while the rental income and revenue from services to tenants is estimated at RON 176.4m, which is an increase of 37% YoY. Furthermore, op. profit of RON 687.6m is expected to increase by 22% YoY. Finally, a net profit of RON 525.2m is expected by ONE, representing an increase of 17% YoY.
Yesterday, One United Properties published its 2024 revenue and expense estimate. According to the release, ONE expects a total turnover of RON 1.75bn in 2024, which is an increase of 15% YoY. Breaking this down, revenue from sales of residential property is expected at RON 1.42bn, an increase of 26% YoY. At the beginning of 2024, ONE had a portfolio of 1,415 units available for sale and pre-sale. An additional 1,181 units in the later phases of One Lake District an app. 1.3k units at One Cotroceni Towers can be added to the sales portfolio, depending on sales progress and demand.
Furthermore, the net margin from residential sales is expected at 37.6%, an increase of over 10 p.p. YoY, implying a residential net income of RON 535.8m, representing an increase of 74% YoY. ONE notes that this would be driven by the already solid sales from developments currently under construction, which are progressing towards completion, therefore positively influencing the net margin (as ONE uses a revenue recognition policy not based on sales but rather on the percentage of total completion of assets).
On the other hand, rental income and revenues from services to tenants are estimated at RON 176.4m in 2024, an increase of 37% YoY. Also, net rental income is expected to grow by 16% YoY, to RON 100.5m. This will be driven by the tenants moving into One Cotroceni Park Phase 2, which was delivered in early 2023, and is estimated to be fully leased in 2024. Furthermore, a full lease is also planned for One Cotroceni Park Phase 1 before the end of the year. ONE further notes that the growth rate of rental revenues is more tempered than in previous years, due to the sale/pre-sale of four non-core rental assets in 2023, as part of the strategy to focus activity of the Company on large-scale mixed-use developments.
Meanwhile, gains from investment properties are set to decline by 43% YoY in 2024, to RON 148.1m. As a result of these developments, op. profit is expected at RON 687.6m, an increase of 22% YoY, while the gross profit is expected at RON 612.5m, an increase of 16% YoY. Finally, the net profit is expected at RON 525.2m, an increase of 17% YoY. This would also a net profit margin of 30%, representing a slight increase of 0.5 p.p. YoY.
One United Properties select P&L indicators (2024 budget vs. 2023, RONm)
Source: One United Properties, InterCapital Research
