One United Properties S.A. · BVB:ONE
One United Properties — Investor Presentation (May 2023)
71 slides from One United Properties's investor presentation, May 2023
Slide 1: Investor Presentation May 2023
INVESTOR PRESENTATION May 2023 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 2: Disclaimer
DISCLAIMER This presentation is not, and nothing in it should be construed as, an offer, invitation or recommendation in respect of shares issued by One United Properties S.A. (“ONE”), or an offer, invitation or recommendation to sell, or a solicitation of an offer to buy One United Properties shares o
Slide 3: Contents
Contents Executive Summary 1. About One United Properties 2. Portfolio 3. Historical Results Highlights 4. Q1 2023 Results Highlights 5. Management 2023 © ONE UNITED PROPERTIES 3 CONFIDENTIAL DOCUMENT
Slide 4: Executive Summary
EXECUTIVE SUMMARY 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 5: One United Properties
One United Properties is a leading green investor and developer of residential, mixed- use and commercial real estate in Bucharest, Romania. One United Properties is an ONE UNITED innovative company dedicated to accelerating the adoption of construction practices for energy-efficient, sustainable, and
Slide 6: ONE Track Record
ONE TRACK RECORD 2022 – FUTURE 2012 – 2018 2019 – 2021 Focus on large to very large High-end and ultra-high- developments end developments Attention to quality & brand recognition Smaller developments First large-scale high-rise Consolidation of the position developments Entry to the office market on
Slide 7: ONE at a Glance
ONE AT A GLANCE Residential segment prospect Construction Planning phase phase GDV €1,478.8m €858.5m No of units 5,692 3,056 Office segment prospect 31.03.2023 Est. by 31.12.2025 Market Value (Gross Asset €401.1m €604.4m1 Value) GLA 130K 195K (1) Calculated for the completion of buildings under deve
Slide 8: Key Financial Data
KEY FINANCIAL DATA Turnover Net profit 1,166 509.7 502.5 1,120 537.4 197.4 396.4 176.9 2019 2020 2021 2022 2019 2020 2021 2022 Sales of residential property Rental income 769.5 78.9 703.3 437.5 147,4 16.5 11.8 1.7 2019 2020 2021 2022 2019 2020 2021 2022 2023 © ONE UNITED PROPERTIES 8 in RON CONFIDEN
Slide 9: Key Indicators
KEY INDICATORS Built surface1 – residential (m2) GLA office portfolio (m2) 1,047,000 136,000 101,000 483,000 350,000 47,000 270,000 23,000 2019 2020 2021 2022 2019 2020 2021 2022 Cumulated, includes both finalized and under construction. 1 Apartments sold and pre-sold2 GLA retail portfolio3 (m2) 1,732
Slide 10: 2023 Budget
2023 BUDGET The revenues from residential property sales are targeted to reach RON 1bn in 2023 (+31% vs 2022). For 2023, the One United Properties sales team has a portfolio of 1,143 residential units available for sale and pre-sale. Additionally, pre- sales for other 1,167 units located within the
Slide 11: ONE Today
ONE TODAY ü Above EU average CAGR of GDP per capita I Attractive Market & Macro Conditions ü Unmatched demand of residential properties amid highest overcrowding within EU-27 Proven business model ü Proven residential development process providing returns and superior margins II delivering superior
Slide 12: 1. About One United Properties
1. ABOUT ONE UNITED PROPERTIES 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 13: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1. FAVOURABLE MARKET DYNAMICS FOR RESIDENTIAL SEGMENT Between 2016-2020, Romania’s GDP per capita increased with CAGR of 7.4%, above EU CAGR of 2%. Bucharest-Ilfov region has population of 2.3 million inhabitants and GDP per capita of 164% compared to EU-27 average, making
Slide 14: Track Record of Excellence and Risk Reduction Through Pre-Sales
4. TRACK RECORD OF EXCELLENCE IN EXECUTION ONE so far developed 8 residential projects with GDV of approx. €300m and 3 office buildings, having won numerous awards both locally and internationally. The developments are distinguishable by the exceptional interior design, made by Lemon Interior Design
Slide 15: Strategic Keypoints
STRATEGIC One United Properties’ strategy is to invest in premium development opportunities with prospects of sustained returns and to continue leading the high-end residential development sector. The main directions KEYPOINTS of action to achieve this are: • Maintain leadership position in the prim
Slide 16: Residential Timeline
RESIDENTIAL TIMELINE II ONE ONE Modrogan Herastrau Vista ONE Timpuri Noi ONE Verdi Park ONE Cotroceni Towers ONE ONE Floreasca City Vista Club ONE ONE Herastrau Floreasca City Towers ONE ONE €51.5 North ONE Cotroceni equity Downtown Park III & IV Lofts raise ONE Plaza ELIADE Athenee O Tower ONE Vict
Slide 17: Interior Design
INTERIOR DESIGN Superior interior design is at the core of ONE’s business. All of One United Properties developments are distinguishable by the exceptional design, made by Lemon Interior Design. Lemon is a a multi-award-winning interior design and fit-out company based in Bucharest. Lemon received aw
Slide 18: Purpose Statement
PURPOSE STATEMENT One United Properties’ purpose is to improve existing and to build new communities, by developing quality, energy-efficient buildings, as well as to generate long-term value growth for the shareholders. One United Properties has pioneered mixed-use development concept in Romania, b
Slide 19: Sustainability
SUSTAINABILITY One United Properties is a member of Romanian Green Building Council (RGBC), organization promoting environmental responsibility and energy efficiency. All office developments are WELL Health and Safety certified, the most rigorous certification focused on employee wellbeing, as well as hav
Slide 20: Recognition
RECOGNITION 2023 2022 2022 2022 2022 One United Properties One United Properties One United Properties One Cotroceni Park One United Properties Residential developer Real Estate Developer Public Listed Company of the Year Best practices for Best Urban of the Year 2021 in Romania of the Year proven s
Slide 21: Recognition
RECOGNITION EUROPEAN EUROPEAN PROPERTY PROPERTY AWARD AWARD 2021 2021 2020 2020 2020 2019 2019 2019 One Tower One Tower One Mircea Eliade One Floreasca City Leader Green Developer of the Year One Tower Residential Developer Development of the Year at HOF the first office building in received the WEL
Slide 22: ONE on BVB
ONE ON BVB INDICES ANALYST COVERAGE Average daily liquidity in 2022: RON 1 million P/E : 6.2 on 2022 profit 2022 DivY: 2.5%, paid semi-annually Shareholding structure as of 31.03.2023: Legal entites (13.14%) Andrei-Liviu Diaconescu through OA Liviu Holding Invest SRL (27.58%) Individual Investors (2
Slide 23: ONE Shares Development
ONE SHARES DEVELOPMENT In Q1’23, ONE was the 10th most traded stock on BVB in terms of absolute liquidity and 17th most tradeable by liquidity to free-float, registering trades of RON 56m (including RON 24.5m trade executed through POF market). The market capitalization as of 31.03.2023, was RON 3.1
Slide 24: 2. Portfolio
2. PORTFOLIO 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 25: Group Structure
GROUP STRUCTURE Victor Căpitanu through Vinci VER Holding Andrei Diaconescu through OA Liviu Holding Invest Free-float 27.58% 27.58% 44.84% One United Properties ONE RESIDENTIAL ONE OFFICES OTHER INVESTMENTS OPERATIONAL One Lake District One Long Term One Mircea Eliade One Peninsula One Herăstrău On
Slide 26: Opportunity: Macro Context
OPPORTUNITY: MACRO CONTEXT Macroeconomic outlook influenced by high inflation rates across Bucharest GDP per capita is at EU average level and expected to all CEE countries, while GDP growth remains modest grow by a higher CAGR (8.6% until 2025) Harmonized Index of Consumer Price (%, annual change) (1
Slide 27: Market Opportunity: Bucharest
Bucharest Metropolitan Area - GDP MARKET OPPORTUNITY: evolution (EUR bn) BUCHAREST 81 88 96 66 73 58 61 For at least 20 years, in various ways, the EU is using funds to foster convergence, 54 transferring funds from the states in the developing and mature markets towards those in the emerging market
Slide 28: Residential Segment - Target
RESIDENTIAL Premium residential developments concentrate around the northern area of SEGMENT - TARGET Bucharest The target clients of One United Properties for the residential segment are: • clients looking for developments located in premium areas of Bucharest (Herăstrău, Floreasca, Primăverii, Dor
Slide 29: Residential Segment - Development
RESIDENTIAL SEGMENT ONE’S RESIDENTIAL DEVELOPMENT PROCESS - DEVELOPMENT Iden5fying the investment opportunity Feasibility analysis and urban and legal due diligence Prior to making a decision to acquire land for development, the management carries out a thorough analysis on the investment Adoption o
Slide 30: Delivered Developments
ONE MAMAIA NORD ONE HERASTRAU PLAZA ONE MIRCEA ELIADE ONE FLOREASCA LAKE ONE CHARLES ONE HERASTRAU TOWERS DE GAULLE DELIVERED DEVELOPMENTS MADRIGALULUI ONE HERASTRAU PARK RESIDENCE 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 31: One Herăstrău Towers, Mircea Eliade, Mamaia Nord, Herăstrău Plaza
ONE ONE HERĂSTRĂU TOWERS MAMAIA NORD Phase I Phase II Starting date Oct‘18 Starting date Sep‘18 Q3’22 Completion Date Jan’22 Completion Date Jul‘21 Q4’24 RESI UNITS 147 RESI UNITS 50 86 PP 255 PP 69 148 GBA (sqm) 33,007 GBA (sqm) 8,523 19,800 Saleable (sqm) 21,985 Saleable (sqm) 6,285 10,039 - Apart
Slide 32: One Herăstrău Park and Other Delivered Developments
ONE ONE CHARLES DE GAULLE HERĂSTRĂU PARK Starting date Oct‘15 Starting date Aug‘15 Completion Date Jun‘18 Completion Date May‘17 RESI UNITS 33 RESI UNITS 109 PP 55 PP 155 GBA (sqm) 9,197 GBA (sqm) 27,050 Saleable (sqm) 5,378 Saleable (sqm) 17,806 - Apartments 5,378 - Apartments 17,806 GDV (m) € 22.7
Slide 33: Developments Under Construction & in Pipeline
UNDER CONSTRUCTION & IN PIPELINE DEVELOPMENTS ONE FLOREASCA ONE COTROCENI PARK ONE VISTA VERDI PARK ONE PENINSULA ONE TIMPURI NOI ONE HERASTRAU VISTA ONE LAKE DISTRICT ONE MODROGAN ONE LAKE CLUB 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 34: One Verdi Park, Floreasca Vista, Timpuri Noi, Modrogan
ONE ONE VERDI PARK FLOREASCA VISTA Starting date Nov‘19 Starting date Q2’20 Completion date Q1’23 Scheduled Completion Date 2023 RESI UNITS 325 RESI UNITS 63 PP 492 PP 73 GBA (sqm) 62,722 GBA (sqm) 11,719 Saleable (sqm) 38,282 Saleable (sqm) 9,232 - Apartments 35,155 - Apartments 9,232 - Commercial
Slide 35: One Peninsula, Cotroceni Park, Floreasca Towers, Herăstrău Vista
ONE ONE PENINSULA COTROCENI PARK Starting date Oct‘20 Jun‘21 Starting date Scheduled Completion Date Q4’23 Q4’23 Estimated Completion Date RESI UNITS 168 868 RESI UNITS PP 287 1,361 PP GBA (sqm) 52,959 132,978 GBA (sqm) Saleable (sqm) 36,087 82,359 Saleable (sqm) - Apartments 36,087 64,651 - Apartme
Slide 36: One Lake District, Lake Club, High District, North Lofts
ONE LAKE DISTRICT ONE LAKE CLUB Starting date Q2’23 Starting date Jul ’22 Estimated Completion Date Q1’27 Estimated Completion Date Q3’25 RESI UNITS 2,076 RESI UNITS 663 PP 2,614 PP 853 GBA (sqm) 251,663 GBA (sqm) 122,479 Saleable (sqm) 178,047 Saleable (sqm) 59,290 - Apartments 177,068 - Apartments
Slide 37: ONE Victoriei Plaza Eliade Tower
6 5 5 ONE Victoriei Plaza 6 Eliade Tower 2023 © ONE UNITED PROPERTIES 37 CONFIDENTIAL DOCUMENT
Slide 38: Office Segment
OFFICE Building on its residential success, One United Properties entered the office segment in November 2017 through acquisition of One North Gate. ONE focuses on development of Grade A offices, targeting a GLA of 195K sqm by the end of 2025. SEGMENT Out of that, 130K sqm are already finished (One
Slide 39: Office Market – Regional Perspective
OFFICE MARKET – REGIONAL PERSPECTIVE Bucharest provides some of the most attractive office and Main office trends(2) retail yields among main CEE cities Prime yields (%) in Q4 2022 (1) 12 month forecast ü During 2022, a total of 286.1k sqm of office space were rented in 7.75% Sofia Bucharest, a figu
Slide 40: Office Portfolio
OFFICE PORTFOLIO ONE ONE COTROCENI PARK TOWER Phase I Phase II Starting date Sep ‘19 Jun ‘21 Starting date Mar ‘18 Completion Date Dec ‘21 Dec ‘22 Completion Date Dec ‘20 TOTAL GLA 46,252 34,456 TOTAL GLA 24,039 - Offices (sqm) 43,261 32,075 - Offices (sqm) 23,287 - Terraces (sqm) 1,975 2,111 - Terraces
Slide 41: Office & Retail Portfolio
OFFICE & RETAIL PORTFOLIO BUCUR OBOR ELIADE TOWER Acquisition date Oct’22 Acquisition date Feb ’22 TOTAL GLA 8,000 RETAIL GLA 26,000 - Offices (sqm) 8,000 Tenants Auchan and multiple small businesses PP 47 ONE VERDI PARK ONE GALLERY Starting date Nov’19 Starting date Q2’22 Completion Date Q1’23 Comp
Slide 42: Historical Landmarks Portfolio
HISTORICAL LANDMARKS PORTFOLIO 2023 © ONE UNITED PROPERTIES 42 CONFIDENTIAL DOCUMENT
Slide 43: 3. Historical Results Highlights
3. HISTORICAL RESULTS HIGHLIGHTS 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 44: Evolution of the Residential Segment
EVOLUTION OF THE RESIDENTIAL SEGMENT 703.3 769.5 41% The decrease in the number of units sold in 2022 vs 2021 was the result of the lack of 36% 35% available stock throughout most of the year, due to significant delays from authorities in 437.5 451.6 445.5 approving the building permits. The situati
Slide 45: Evolution of the Commercial Segment
EVOLUTION OF THE 78.9 COMMERCIAL SEGMENT The rental income became significant as of 54.2 2022, following the delivery and the lease out of the two major developments of One United Properties, One Tower and One Cotroceni Park Phase 1, as well as acquisition of One Victoriei Plaza in Q3’22 as well as
Slide 46: Global Result
GLOBAL RESULT 612.7 604.4 576.1 Accelerated growth in 2022 with over 4x increase in the 572.9 key indicators between 2018 and 2022. 509.7 502.5 Despite a significantly larger scale of business, the administrative costs have grown at tempered pace, increasing in 65% in 2022 versus 2021 (excluding the
Slide 47: 4. Q1 2023 Financial Results
4. Q1 2023 FINANCIAL RESULTS 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 48: Financial Highlights
FINANCIAL 439.5 HIGHLIGHTS 347.5 329 5 % 7 % +7 +6 250.5* 197.2 212.7 208 178.4 177.9 % +54 +60 % 115.7* 111* Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 CONSOLIDATED REVENUE FROM CONSOLIDATED GROSS CONSOLIDATED EBITDA TURNOVER RESIDENTIAL SALES PROFIT *Excluding Bucur Obor gains
Slide 49: Business Highlights
BUSINESS HIGHLIGHTS RESIDENTIAL OFFICE RETAIL EUR 90.5 million from sale and pre-sale Rental income increased 265% up to Pre-sale of One Athénée in its entirety of 220 apartments and 488 pp and RON 31.5m in Q1’23, driven by revenues to a single buyer following the obtaining other units incl. early-s
Slide 50: Business & Governance Highlights
BUSINESS & GOVERNANCE HIGHLIGHTS Sales kickoff planned for 2023 of the first Sale in Q1’23 of One Herastrau Office, The management maintains the 2023 phase of One Lake District with 2,076 with the 20% stake held by One United budget, targeting turnover of RON 1.43 residential units, and One Cotroceni
Slide 51: Key Financial Figures
KEY FINANCIAL FIGURES 1,166 1,120 +4% The consolidated turnover of One United Properties grew 4% in 2022 compared to 2021, reaching RON 1.2bn. Turnover included revenues from apartment sales (RON 769.5m), rental and tenant services revenues (RON 78.9m), gains from office buildings under development
Slide 52: Key Financial Figures
KEY FINANCIAL FIGURES 439.5 The consolidated turnover of One United Properties grew 26% in Q1’23 compared to Q1’22 (75% growth excluding the gain 347.5 from bargain purchase of Bucur Obor), reaching RON 439.5m. Turnover in Q1’23 included revenues from apartment sales (RON 329m), rental and tenant se
Slide 53: Key Financial Figures - Residential
KEY FINANCIAL FIGURES - RESIDENTIAL 329 Revenues from residential division increased 67%, 7% +6 reaching RON 329m in Q1’23 vs RON 197.2m in Q1’22. The net income from residential property increased 197.2 by 24% YoY, reaching RON 101.5m, with the growth being smaller than the revenue appreciation due
Slide 54: Key Financial Figures - Commercial
KEY FINANCIAL FIGURES - COMMERCIAL 31.5 The rental income and revenues from services to tenants, which includes the income generated by the office as well as retail divisions, registered more than tripling, reaching RON 31.5m. 21.8 The effect has been driven by the revenues coming from tenants at On
Slide 55: Key Financial Figures - EBITDA
KEY FINANCIAL FIGURES - EBITDA Administrative expenses increased 84%, to RON 212.7 18.5m, due to the non-cash SOP allocation of RON 6.3m (22% YoY excluding the non-cash SOP impact). 178.4 In terms of other operating expenses, these declined by 10%, amounting to RON 3.5m. Out of this amount % RON 2.7
Slide 56: Assets – Residential
ASSETS – RESIDENTIAL Current assets grew 10%, reaching RON 2.1bn due to 27% increase in inventories (residential properties), which reached RON 842.3m. The significant increase in the inventory represents the addition of One Cotroceni Towers, following the acquisition One High District of the already
Slide 57: Assets – Office, Retail & Landbank
ASSETS – OFFICE, RETAIL & LANDBANK The non-current assets increased 5%, reaching RON 2.5bn, appreciation driven primarily by a 5% increase in investment properties up to RON 2.4bn, representing the commercial segment and the landbank. The increase is due to inclusion of One Cotroceni Office 3 in the l
Slide 58: Liabilities
LIABILITIES The increase in the non-current liabilities was driven by a 12% growth of L&B from banks and other entities, representing a major part of long-term bank loan amounting to approx. RON 737m. The increase is primarily due to new loan in One Athénée Plaza and drawings for financing One Cotroc
Slide 59: Cash Position
CASH POSITION 567 -18% 462.4 The Group maintained the strong cash position of RON 462.4m, down 18% since the beginning of the year due to significant investment activity carried out in Q1’23. The loan to value ratio is 28% as of the end of Q1’23, steady since the end of 2023, proving solid financial
Slide 60: Cash Inflow
CASH 231 INFLOW Amounts to be received under contracts concluded with 171 customers as of 31.03.2023 amount to EUR 260m in 142 additional cash by 2025. Please note that these are the 128 amounts due only for the units that were pre-sold and are to be delivered in the future, excluding any sale done
Slide 61: Residential Pre-Sales
RESIDENTIAL PRE-SALES 90.5 18,490 m2 220 apartments with a total surface of 18,490 sqm, 488 parking spaces including early-stage 8% +8 apartments were sold and pre-sold for a total of % 72 EUR 90.5m in Q1’23. +1 In Q1’2022, the Group sold and pre-sold 120 9,811 m2 apartments, with a total surface of
Slide 62: Resi Trends
RESI TRENDS The significant increase in number of units sold in Q1’23 is due to a larger and more diverse portfolio of residential units compared to the same period of the last year. On top of developments where sales started in Q4’22, on 20.03.2023, sales were kicked off for One Lake Club Phase 1.
Slide 63: Resi Trends
RESI TRENDS Approximately half of the apartments sold by One United Note: 2 room = 1 bedroom. Properties in Q1’23 were two-room apartments. This demand was particularly visible at One High District, which continued to be the best-selling development of One United Properties for the second consecutiv
Slide 64: 5. Management Team
5. MANAGEMENT TEAM 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
Slide 65: Organizational Structure
ORGANIZATIONAL STRUCTURE GENERAL SHAREHOLDERS MEETING BOARD OF DIRECTORS Nomination & Risk & Audit EXECUTIVE MANAGEMENT Remuneration Committee Committee PROJECT FINANCIAL LEGAL INVESTOR INVESTMENTS DEVELOPMENT RELATIONS ESG Committee Internal Audit Litigations ASSET Accounting ARCHITECTURE SALES MAN
Slide 66: Corporate Governance
CORPORATE GOVERNANCE As a listed Company, One complies with the Corporate Governance Code of the Bucharest Stock Exchange and report annually on its Corporate Governance compliance status in accordance with the Bucharest Stock Exchange requirements: • 5 independent directors out of a total of 7 • A
Slide 67: Andrei Diaconescu, Victor Căpitanu
ANDREI DIACONESCU VICTOR CĂPITANU Victor is the co-founder and Executive Andrei is the co-founder and Executive Member of the Board of Directors at One Member of the Board of Directors of United Properties, coordinating Sales, One United Properties, coordinating Marketing and Investments. Operations
Slide 68: Non-Executive Directors
NON-EXECUTIVE DIRECTORS CLAUDIO HORIA MARIUS AUGUSTA DRAGIC MAGDALENA CISULLO DIACONU SOUCEK MANDA Non-Executive Chairman of the Board Non-Executive Director Non-Executive Director Non-Executive of Directors Director Director Mr. Cisullo is the founder Mr. Diaconu is an active Mrs. Magdalena Soucek
Slide 69: Management Team (I)
MANAGEMENT TEAM (I) BEATRICE MIHAI COSMIN VICTOR IONUȚ PĂDUROIU SAMOILĂ SAVI - NIMS DUMITRESCU OCTAVIAN ZUZANNA DUMITRAȘCU CEO Office Chief Financial Chief Legal Officer Partner Office AVRĂMOIU KUREK CEO Residential Division Officer Division Partner Investor Relations Division Manager Mihai has a long
Slide 70: Management Team (II)
MANAGEMENT TEAM (II) MARIUS ADRIAN ADRIAN ANDRA ANDREI CĂLIN RADU FLORIN CĂLIN ARENDT IONIȚĂ BIZON COROBEA-BÎRCEANU STAN NEACȘU Lead Architect Owner Design Head of Litigation Head of Financing Project Director Project Director Project Director Representative With 30+ years of Adrian has a vast Adria
Slide 71: 2023 Financial Calendar and Contact
Our 2023 Financial Calendar: 29.08.2023 – H1 2023 Results For any follow-up questions: 30.08.2023 – H1 2023 Results Call Zuzanna Kurek, IR Manager 14.11.2023 – Q3 2023 Results [email protected] 15.11.2023 – Q3 2023 Results Call 2023 © ONE UNITED PROPERTIES CONFIDENTIAL DOCUMENT
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