One United Properties SA (ONE.RO) Q3 FY2025 Earnings Call Transcript & Summary

Good morning, and welcome to One United Properties conference call for presenting the 9 months of 2025 financial results. My name is Zuzanna Kurek, and I am an Investor Relations Manager at One United Properties. I am joined in this call by Victor Capitanu, Executive Board member and Co-Founder of One United Properties; and Cosmin Samoila, CFO at One United Properties. Before we begin, I would like to mention that this call is being recorded, and the recording of this call will be uploaded on our website later today. As stated in the call invite by joining this video conference, you automatically and implicitly consented to being recorded. If you do not consent to being recorded, please leave this call. In terms of organizational aspects, let me present to you the setup of this call. First, we will share with you the financial and operational highlights of the first 3 quarters of 2025, which will be presented by Victor Capitanu, Cosmin Samoila as well as myself. [Operator Instructions] I will be moderating the Q&A session. And therefore, for the sake of those who will be rewatching the replay of this teleconference, I will be reading every single question out loud before addressing it. Your questions today will be answered by Victor Capitanu, Cosmin Samoila or by myself. Finally, I would like to mention we might be making forward-looking statements today during this call regarding the future performance of One United Properties and that actual results may differ materially. We encourage you to review the disclaimer that we have included in this presentation, which you can now see on the screen. This disclaimer applies equally to all the statements made in today's call. Thank you for your patience. And I would like to now kick off this call and invite Victor Capitanu to share with you the key highlights of our performance in the first 9 months of 2025 as well as some legislative updates.

Good morning, everybody. Thank you for joining our quarterly call. It's a pleasure for me to present our best performance for the first 9 months of any year so far. We managed to increase our consolidated turnover by 15% to almost RON 1.2 billion. Our profit from operations increased 22% to RON 475 million. And our gross profit increased 21% to RON 426 million. In the meantime, gains from fair value adjustments decreased. So this means that operational profit from selling of apartments increased even more. Just to remind you in some short numbers, how we stay on the residential segment, we have 2,167 units completed to date. We have under construction 3,818 units. It's very important to know that over the next 12 months, almost 3,000 -- around 3,000 of these units will be finalized and delivered to the clients. So you will see we'll deliver in the next 12 months more units that we completed in all the life of the company. And also, we have almost 10,000 units in our planning phases -- in our planning phase for the years to come. So for the years, let's say, for the next 5 to 10 years. On the investment property segment, you know the assets that we already hold. But what is important to mention is that we are delivering 3 important assets in 2026. We are progressing very well with works on all of them. We have One Gallery, the former fourth factory that we -- will be open next year. We have One Technology District, the campus of Infineon Technologies, which is an office building leased for 15 years by Infineon Technologies. And we have the Mondrian Hotel that will also -- it's expected also to be delivered next year. I would like to spend a bit more time on some legislative changes. It's very important to note that what I'm presenting you here is, let's say, proactive and is the latest draft that we could access of the law. So still some changes might happen in -- to the final form or to the details of implementation. So it's not clear if this is 100% final. Also, it's not clear yet if this applies only to individual or also to legal entities. But I will go through some of the changes. One, let's say, the key provisions. So first, it refers to the authentication by a public notary of the preliminary sale purchase agreements. So from now on, it seems that all sales have to be authenticated by public notary and can be signed only after you get building permit registered and the land book extract is obtained. Up to now, you could also sell through a lawyer in the case of presale, but the cases were very limited. So I think less than 5% of the sales in our case. I don't know exactly how it works for others. But most clients preferred to be authenticated by a public notary anyway. So we don't expect any impact from this provision. Also, reservation agreements, booking agreements can be signed for maximum 60 days with up to 5% of the price as a deposit for the booking of the apartment. Also, in our case, we don't have too many bookings, maybe less than 5% of the sales, much less than 5% of the sales have booking agreements. We think this is a good provision that clarifies the framework on how to book apartments when you want to buy them. So we see it also same as the first provision as a positive one. Also the third important provision refers to this [ pre-authentication ] of how Zuzanna [ wrote ] here. So basically, the land book opens an individual file for each apartment from the moment the building permit is written in the land book. This thing is a very good provision because basically, it will help make the final sales faster. So basically, this provision makes the total process of developing and selling a little faster and, I think, brings clarity on how the sales are done and how the sales are registered individually and helps a lot in the final sales. Also referring to the down payments that you can take from the clients. It's not very clear for me 100% how much you can take now. But probably from what I see, it's between 50% and 60%. So we need to see exact clarification of the law. So how this impacts us? For us, in the cases where we take down payment 30% and 70% we cash in the end, probably we might need to break the down payment in 2 payments, maybe 15% each. This is perfectly fine. I don't see any problem in that. For the clients that pay now in 5 tranches of 20%, I think this has to be changed because we will not be able to take 80% of the price as down payment during the construction. We will be able only 50%, 60%. But also, we don't see a big impact. And also for the clients that buy with 100% down payment, this will be a bit more difficult to implement from now. I don't think impossible. But also, if you look to our total sales, this applies to less than 10% of our sales. So overall, we feel this law brings clarification to the sector, has potential to increase trustworthiness of the developers. And we think the impact for our company most likely is the least compared to our peers. So this would be, let's say, about the legislative changes. I'm -- if you have any questions, please write them in the chat, and I will try to address them towards the end of the call. And now I invite my colleague, Cosmin, to go in more details in the financial results for the first 9 months. Thank you.

Thank you, Victor. Good morning, everyone, and thank you for participating to our quarter 3 financial results presentation. Consolidated turnover increased 15% in the first 9 months, up to RON 1.187 billion. The main factor for accelerating the turnover was the revenues from apartment sales, which got close also to RON 1 billion, up to RON 975.7 million. Also impact the turnover -- on the turnover was from rental and tenant services revenues, RON 120 million, gains from fair value adjustments and other operating income. The gross result reached RON 426 million, 21% increase compared to same period of last year. And the net profit reached RON 353.2 million, up 18% compared to last year's first 9 months. In terms of the residential segment, as mentioned, revenues from residential sales got close to RON 1 billion, so RON 975 million with 19% increase. What is more important is that the profit from residential sales increased even more with 31% up to RON 359.6 million. And also very important is that the percentual margin increased from 33.5% up to 36.9%. And this demonstrates once more achieving our minimum margin that we are targeting for residential development, which is 35%. On the commercial segment, the revenues increased with 6% to RON 120.4 million. This moderate increase is due to the fact that our rental portfolio reached a stabilization level. We have 98% lease rate across the portfolio. And currently, this is increased even more in this -- up to today. And also the net rental income, a moderate increase, only 1% up to RON 78.4 million. On the expenses side, administrative expenses decreased 16% to RON 45.5 million. This decrease is due to the cost optimization program carried across the company that will continue also in the next period. We have an increase in other operating expenses with 20% up to RON 11.4 million. And as a result, the result from operating activity totaled RON 475.2 million, 22% increase compared to the result of last year. The cash position, slight decrease compared to last year, 8% decrease due to the fact that we have many construction sites open, 12 construction sites in progress at the moment. Loan-to-value ratio, slight increase, 4%, up to 31%, but it's still very low compared to European developers. And net debt, RON 837.2 million, only 14% from the total assets, which reached RON 6.1 billion. Basically, in euro, our total assets increased over EUR 1.2 billion. The cash inflow for the next period shows very strong prospects, EUR 372 million to be cashed on signed presales agreements in the next -- until 2027. This year, in the first 9 months from residential sales, we already collected RON 106.9 million. And we are expecting next year due to the fact that many deliveries are planned in residential developments to have a record year in terms of cash inflows. And of course, as mentioned, this is valid only for sales signed as of 30th of September. But as more sales are signed during the next period, this amount will increase even further. Thank you, and I leave the floor to Zuzanna to present the business highlights.

Thank you very much, Cosmin. I will be presenting here the information that we have included also in the trading update, as most of you probably know, 2 weeks ahead of our financial results, we have been publishing the trading update with the operational data. In the first 9 months of 2025, One United Properties recorded total residential sales and presales of EUR 137.7 million. In total, in the period, we sold 467 residential and commercial units, totaling over 42,600 square meters. This performance reflects the mix available for sale and presale of our sales team, which was dominated by units in advanced stages of construction, such as One Lake Club and One High District. Both of these developments, you can see on the right side amongst our best sellers for the year 2025 so far. Of course, in the first place, our most successful development for the eighth consecutive quarter has been One Lake District. This time we have Phase 2 with 115 units sold so far in the first 9 months of 2025. What I want to draw your attention to and what we have been also underlying in our reporting has been the fact that average price per square meter increased by 22% compared to last year, confirming the positive trend also we've seen in the previous quarter, so since the start of 2025. This evolution also confirms the strategy to focus on sales of developments already in advanced stages of construction rather than launching new sales at new developments. So I want to again stress that the metric that we recommend to -- for our investors to follow is, of course, the total value of presales and also to put it in conjunction with the total surface sold in order to take a look at the average price per square meter. As of September 30, 82% of all available apartments and commercial units either under development or already completed were sold out. If we look only at the presales, meaning the sales of the development under construction, we're talking about 74% of units being already presold. In terms of finalized development, we have approximately 80 units as of September 30, we had available for immediate purchase. So this dynamic clearly shows the continued demand in the premium segment with clients increasingly choosing projects that are in advanced stages of construction. Of course, this was also driven by the -- as I mentioned at the beginning, by the sales mix that we had available. In the third quarter, we did not add any new developments to the sales portfolio that happened later on. On November 1, we launched the public sales at One Academy Club. Over the coming months, we have already mentioned in our reporting that we expect the presales to start at One City District and One Park Lane. At the end of the third quarter, we had the active portfolio, meaning units available for sale of 1,089 units. These are excluding the 150 units at One Lake Club that were added as of November 1. On the commercial side, performance remains strong. We had occupancy rate of commercial portfolio of 98% as of September 30, 92% of tenants already moved in to their lease spaces. Contracted rental income reached EUR 21.6 million, up 3% year-on-year. And our commercial teams have signed new leases and pre-leases contracts for 7,700 square meters as well as lease extensions for another 21,900 square meters. This concludes the first part of our call. We will now open the floor for questions.

[Operator Instructions] I see we already have some questions in the chat, but to give you a little bit more time, we will first address the questions that were sent to us via e-mail by our investors and analysts. We have 7 questions from them. The first question is the One Tower is still in the accountancy as of September 30, 2025. In the public media interviews, there's a lot of discussion concerning the sales of One Tower. How is the actual status? Is the deal meanwhile secured? When will the deal be executed?

Look, so for One Tower, we decided with all the shareholders to dispose this asset if we get the what we think is the correct price for the company and reinvest the equity in other developments. We have discussions for this transaction. We don't know if we close or not. We only will close it if it's a good price for the company. Anyway, any transactions will not be done sooner than the first quarter of next year. So I hope in our next call to be able to give you more information. Thank you.

Thank you, Victor. Bank financings. Would the company be able to manage higher volume in bank and minority shareholder financings considering the current EUR 240 million by EUR 1.2 billion, which are the total assets, meaning 20% is very defensive.

I don't know how to answer this. Cosmin, can you answer this question?

Considering that our leverage is very low, yes, we [indiscernible] financing.

I'm not really sure we need so much because, let's say, if we dispose some assets, our leverage will increase and our equity will -- our leverage will decrease and our equity will increase. Our cash flow also is very strong. You see we have EUR 380 million to cash in the next period from signed contracts. Also, we have almost EUR 600 million apartment that most of them will be finalized in the next 12 months. So they are almost fully paid. So I don't think on a medium term that maybe -- on short term, our leverage increased a bit last quarter. But on the medium term, I don't see the leverage increasing.

Thank you, Victor. What's the dividend strategy for future dividend? How high will be dividend per share for the next payment after RON 0.36 per share this time, the upcoming dividend?

Yes. Now for the dividend also, we have a dividend policy. As you know, we are not a dividend company, although we pay some dividends. Our focus is to reinvest the money, and we are more a growth company than a dividend company. And this will be also our priority in the future to reinvest the money with superior returns. And regarding next dividend, we'll decide when that moment will come. So we decide according to our policy. Of course, if the overall profit of the company increases, it might have some impact also in the dividend.

Thank you. The next question, news about PTO. I will take that, and I will offer you a little bit of an update. So what we can confirm is that the decision from the General Meeting of Shareholders that took place in October where -- which approved the PTO program were registered with the trade registry as well as were published in the official gazette. We are today in the 15 days opposition period to challenge these decisions by shareholders who are present and voted against this point. The deadline for this passes on 21st of November. Once the standard period elapses and if there are no challenges, we'll be able to start the process with the regulator. We will be announcing any further details only via current reports to the Bucharest Stock Exchange. Our intention is to carry it as soon as possible, but we are unable to offer further details regarding the timing, pricing, specific date for the launch as this can only be communicated via formal communication with the market and based on the decision of the Board of Directors. As you can imagine, this is a very regulated process and a very sensitive one. Therefore, we -- yes, we have to follow the formal steps. So for now, we cannot offer any more details than what has been public. I don't know, Victor, if you'd like to add something to that.

We are committed to do this offer. We approved it in the general meeting of the shareholders. We feel there are not so many, but few shareholders that don't want to be shareholders in One United Properties. And because liquidity in the market overall is low and they are selling in the market, they also keep the price of the company down. So we think this can be very good also to offer an exit route for the shareholders that don't want to be part of this company and also will give value for the existing shareholders and also will release the pressure on the selling. So we feel this is a good decision for the company. We wanted to do it faster, but it seems the process is not so easy, and it's a bit bureaucratic from both regulatory side and financing side. So probably the fastest that we can do it is in the first quarter next year.

Thank you, Victor. Can you please share your view on the outlook for the residential development sector in Bucharest? How could key drivers evolve over the next 12 months, house, apartment prices, construction costs, demand and supply?

We have, of course, all the data. This is very interesting that in the first 9 months of this year, we saw the highest increase in price of apartments since we developed. So we saw -- and Cosmin, if I don't get the numbers right, please correct me. I think we saw 15% increase in price this year in Bucharest. Also, our company increased the prices this year on average by around 20%. This is the highest recorded since we developed. In the same time, the decrease in supply continues the trend from last year. Last year also the decrease -- the supply decreased double digit. Also now the decrease in supply is around 18% for this year. So we feel that fundamentals for our company are very good, considering in the same time, demand is increasing and population of the city is increasing. So we are quite positive of the fundamentals of the market for the years to come. Cosmin, maybe because -- I know you have the report in front of you, I don't know if you want to add some interesting data from the market analysis.

No, this is the data basically. The increase in the prices in Bucharest was 15% this year. The supply decreased 18%. And across our portfolio for the first 9 months, the increase in prices on the sales was 22%.

The final question from the question submitted before the call is you maintained your 2025 net profit guidance of RON 393.5 million. However, you have already achieved a net profit of RON 353 million for the 9 months. Is the net profit guidance just very conservative? Or are there any specific issues in Q4 which could burden the net profit development?

Look, this is a very valid question. There are no specific issues for the last quarter. So we feel quite positive, and we hope the last quarter will be good. But in the other hand -- on the other hand, the last 2 years, we missed on our budget. So we feel we want to be conservative because 2 years in a row, we thought we are conservative and we weren't. So we don't want to miss the budget the third year in a row. So maybe this is why we want to be a bit more conservative.

Thank you, Victor. And I see we have a follow-on from Thomas regarding the question he put earlier. Can you please share your view on the potential construction cost inflation in the next 12 months?

Look, there is not a big pressure on the cost because we have in Romania a little deficit crisis, we call it, because the deficit was a bit out of control last year and this year. And the government is doing a program to keep the deficit under control and plan to reduce it gradually as a percentage of GDP over the next years. So because of this, also a lot of -- so the demand for construction was generally decreased at governmental level this year, especially in the last period. So this created an opportunity to have less inflation in the cost. So basically, I have to say even we had in case of Technology District, quite positive surprise on the cost we were able to negotiate this year. Nevertheless, cost is increasing generally. So if you look on the long term, always, you can see an average 5% to 10% increase in cost every year. I hope this answers the question. Thomas, if not, please let me know to try to detail more.

Thank you, Victor. And now we are going one by one through questions from the chat. Why the significant drop in the number of apartments sold year-on-year, 467 apartments versus 713 in 9 months of 2024?

Thank you, Cosmin. Basically, there are a few things. One of the things is that our portfolio is different this year than last year. So maybe the developments are the same. But when you launch a new development, the demand is bigger and you sell faster, cheaper units. So this has some spikes in the years that you do a lot of launches. So because 2023 and 2024, we launched a lot of developments, there were some spikes in the number of units sold. And 2025, we didn't launch any development in the first 3 quarters. So this had an impact of the new sales because of the limited availability of the stock. We are launching now. We launched in October, November, One Academy club. And we have in the next 9 months, a number of launches. We have One City Club on Ramuri Tei close to Floreasca [indiscernible] that we are launching soon after getting the building permit. We are launching One Park Line on Juli, the first phase after getting the building permit. Also, we are expecting the building permit for One Cotroceni Towers in the first quarter next year. So we have -- we are launching the third phase of One Mamaia Nord. By June, we should launch also the development in [ Cebu. ] So there are a number of launches coming. In the last 2 years, there were more limited launches. So this is the first the first thing that impacted, so the supply that we had available. And also, maybe there is an impact also the overall market because this year was a bit more -- a year with more uncertainties. When you have uncertainties, these reflect in demand. And some people, even if they need, they postpone the decisions. So maybe also this year, some people postponed buying decisions because we had these elections, the canceled elections. So this was a whole mess in the beginning of the year with the elections. Now they take -- the government takes all the measures to keep the deficit under control. So all this have some impact in the decision. But we feel overall demand is strong and the pent-up demand is also strong. And we feel the market is good for us for the next years.

And the next question, is the increase in the residential price per square meter sustainable?

Yes. I think it is very sustainable because although 2025, we had the highest increase in residential price in Bucharest since we developed. So the market overall increased with around 15% and our company increased on average with around 20% compared to last year. I think still the apartments are very affordable. So if you look to an average unit in Bucharest as compared to the average income or at Romania level, you see that you need around 6 years of income to buy an average apartment, which is the lowest -- almost the lowest on record. In 2008, this indicator was 33%, 34%. And since 2008 -- so let's say, how is in London. But since 2008, it decreased gradually from 33% to 20% to 15% to 10% to 8% now to 6%. So affordability increased dramatically because purchase power and salaries increased much, much faster than the price of property. So we feel even with this 2025 increases, apartments in Romania are the cheapest in Europe -- in European Union by purchase power.

And also by absolute purchasing power in the sense that apartments in Warsaw per square meter are double in 3x. We have this data. I invite you to visit our Investor Relations presentation. So even the 22% increase that we had, it's still -- or the 15% that the market had, we're still far, far behind compared to other capital while the overall purchasing power is catching up at a much faster.

If you need -- I see this question is also from Cosmin. If you need the reports, Zuzanna can send you the market data reports to see why the apartments are so affordable in Romania.

Perfect. The next question, in the quarterly report, it has mentioned the management target for 2025, a turnover of RON 1.6 billion and a net profit of RON 393.5 million. Still at the end of 9 months, the net profit is already RON 353 million. In the last 5 years, one recorded in the fourth quarter net profit between RON 75 million to RON 110 million. Should we expect at least the same figures for Q4 2025? Will there be any extra gains from investment property for further development?

Look, I think I don't know. Cosmin, you want to answer this?

I think we mentioned that we did a conservative budget this year. So it's in line with this idea of having a conservative budget. We expect Q4 will be a good quarter. We don't see any negative signs. We don't see any concern.

We should have also gains from investment property because we didn't value investment property throughout the year. So probably by the end of the year, considering you see residential market increase this year in Bucharest is 15%. Probably there is also an increase in price for commercial property, especially that every year, we index the rents with inflation. So for sure, there is an impact also from investment property, but we don't know the size. We will know after we assess the value at the end of year. Still, I want to mention that we treat our investment property conservatively. We never wish to have any property in accounting at market price or above. We try to keep it all the time conservative. This you'll be able to see with the transaction of One Tower, where the discussion to sell it is at EUR 114 million, and we keep an accounting at EUR 93 million. So we use the same strategy for all the investment property. We prefer to be on the safe side. And as I said earlier, we missed the budget for 2 years in a row. So I would like at least 1 out of 3 years to achieve it.

Thank you, Victor. I see the next question is a repeat regarding the sustainable increase in the prices. So we will skip for that considering it was addressed. The next question is, can you confirm that the share of clients who typically pay 100% upfront for apartments is below 10% of total sales?

This is Alina question, yes. Yes. And much, much lower because if we take out the clients that for which we do early sales to finance the acquisition of land, for which anyway this can be structured differently. It doesn't have to be structured as sale. And anyway, they don't -- those sales don't bring profit to the company. So from the actual sales that clients pay 100% upfront, I think it's even less than 5% or 3%. I don't know. What do you think, Cosmin? Maybe I'm wrong, I don't know. 10%...

It's below 10%, but I wouldn't say it's only 3%.

Okay. So it's below 10%. But -- so between 3% and 10%, you have [ an answer, ] Alina, but I don't know. We can calculate this for the next quarter, I don't know, and say it, I mean, there's no problem.

The next question, please elaborate on the current status on Cotroceni Tower and Herastrau City project. When will development and sales commence?

Okay. This is Reno. Thank you for the question, Reno. Cotroceni Towers, as you all know, we have an existing building permit, but we wanted to change the project to optimize the cost and to make a better development for the sector and for the city. We even decrease a bit the surfaces. So we make it more attractive for the community, and we make it more profitable for the company. So this decision to change the building permit cost us a bit more than we expected. But now we expect the new building permit to be issued in the first quarter next year and in parallel to start the construction and the sales. And this will continue the success from One Cotroceni Park and basically will make a much larger development on total of 10 hectares and 1.3 kilometer opening to Progressive Street. So I think this will be very valuable also for the city, not only for the company. Also, we are building there the tallest residential in Romania, 2 towers of 33 floors. So we are quite excited to start it. And regarding Herastrau City, look, Herastrau City, it's a bit different than Cotroceni Towers, where we acquired the land. In Herastrau City, we didn't acquire the land yet. It's just an option, a strong option, so it depends on us to do it. In that case, the development needs a new zoning, which if you might recall in the last 5 years, no new zoning was approved in Bucharest. So this is subject of basically of the results of the elections for the mayor of Bucharest because there is one candidate that want to continue this conservative approach. For the time being, he's ranked the third in the polls, but who knows, maybe he will be the first, so we don't know yet. But if any other candidate will be elected besides him, most probably the approval of new zoning will open up again, and this will accelerate Herastrau City and might make it available for development starting with 2027.

Thank you, Victor. It seems like One High District has been delayed by 2 quarters. Is there something material behind this or works are just taking longer?

Look, I have to say that there are construction delays in always in most developments. We try to address them to manage them, to manage the expectations, but it's quite difficult. And this is a very big development, 100,000 square meter with 3 towers, 20 floors. It's very difficult to keep tight schedules. So it might be a little delay, but it's nothing material. It's nothing impacting financially. And we expect everything to finish very well for One High District. It is a superb development. The clients cannot wait to move in. It has been extremely successful also with sales. So I think the answer would be just works are just taking longer than expected.

Thank you, Victor. Please detail when One Lake District Phase 1 will be delivered?

One Lake District Phase 1 will be delivered in the beginning of next year. So I don't know if it's first quarter or second quarter. I think, yes, somewhere in the first half of the year will start to be delivered to clients. It's almost finalized. Also for One Lake District, I think it's very interesting to know that we have recently been approved -- it's not material, but it's interesting and important. We have been approved the access to the development from the Main Street, [indiscernible], which is an access on 5 lanes, [ semi ] authorized. So it's -- I mean, we were projecting like this, but it just recently has been approved, and this is a very big advantage for the whole development, the access. So the access will be very, very, very good for the development.

Thank you. The next question, are there any delays in delivering the residential development schedule for 31st December 2025?

Thank you, [indiscernible]. Which are the -- I don't know, which are the development scheduled for...

Let me open...

I think we have One Herastrau Vista. One Floreasca Towers already has reception with authorities. One Herastrau, I think the same, so One Herastrau Vista is being delivered. One Floreasca Towers is being delivered. One [indiscernible] is being delivered. No, they are -- all these 3 developments are according to schedule.

Also, just so you -- for all of you, we do update the delivery status on a quarterly basis. So this is why we also include this table. And there might be -- because we got these questions in the past, there might be small delays from one quarter to another over the period of development, but this is something that is, we could say, relatively normal in our sector of activity. Going to the final question. If there will be no further questions, we'll conclude the call. One Tower is valued in the financial statements at RON 419 million, so EUR 82 million at 30th of September 2025, below the value from 31st of December 2024. This is the value for the 70% stake that one holds in One Tower. And related -- I'll read the second question, the shareholders approved the minimum transaction value of EUR 140 million for selling One Tower. Is this for the whole company? If this is the case, One will receive only 70% of this amount, approximately EUR 79 million.

I will take this one. Basically One Tower, the value what you see in the financial statements under investment property, it's only for the part that is rented to tenants. The part that is our headquarters, that amount stays under property, plant and equipment. So the total value of the building as fair value is EUR 93 million. Part of it is in investment property, part of it is in property, plant and equipment in the balance sheet. This is the first answer. So we present 100% in the financial statements. The building is presented 100%. But in the same time, under the equity component, we have an equity attributable to minority shareholders. So that's the part of the minority shareholders presented. EUR 140 million is for the whole company. So that's the total price. And indeed, from this, the company will receive 70% of the amount.

Thank you. And I see we have one more question, which is...

I want to...

Yes. Go ahead.

I want to tell something. Basically, we will not receive EUR 79 million. We receive 70% of the net because the company has also a loan to Banca Transilvania. So basically, you have to deduct from the selling price the loan and 70% of the equity will be received by One United Properties. So let's say, I think the loan is now like EUR 60 million. So this means 54%, 70% of EUR 54 million. This is what is the actual cash received. So just to be clear, that it is not EUR 79 million. I think this is obvious. But just to underline it.

And the last question, the price of One shares is still at the low and depressed levels. The only explanation I can find is the fact that there is no buying interest from institutional investors and in particular, Romanian pension funds, which would buy blue chip shares from [indiscernible], but not One. What or how did upset the managers of the Romanian pension funds in such a way that they removed One share from their radar with the exception of Carpathia pension fund. The others exited One and put massive pressure on the price at the end of 2024 and the beginning of 2025.

Okay. So I will try to explain. So as I said earlier, we have some shareholders that did not like how we handle the capital increase last year and which also I said publicly that it was a mistake that we did it at nominal value. But when you take decisions every day, you cannot take only perfect decisions every day. Sometimes you make mistakes. So we acknowledge that and we try to correct it. Some shareholders left and of course, this depressed the price. But also we have some shareholders that didn't leave yet, but they don't want to be shareholders in our company. And because they are selling and liquidity is low, they are keeping the price of the company depressed compared to the correct value of the company. But basically, this is why we decided to do this public tender offer in order to give an opportunity to some investors that don't want to be here to exit and on the other hand, to give the opportunity of some existing shareholders to increase their share in the company and also to, let's say, eliminate the shareholders that are selling in the market constantly, and they don't want to be part of the company. So we think with this measure, we might solve some of the issues regarding the depressed level, as you mentioned it, let's say, the underpricing of the share.

Thank you very much, Victor, for the answer. And that concludes our call. This was the last call for this year. Next time, we're going to hear each other after we publish the financial results at the end of -- preliminary financial results for 2025. And the call most probably will be either at the end of February or beginning of March. Please look out for the financial calendar that we'll be publishing as each year in January of next year. We thank you all for joining us, not only today, but throughout this year for our earnings call, and we look forward to reconnecting in 2026.

Thank you very much, and hope to see you all soon.

Have a great day.

Thank you. All the best.