One United Properties SA (ONE) Earnings Call Transcript & Summary

Good morning, [Foreign Language] Welcome to One United Properties Capital Markets Day for -- thank you all for joining us today live at One Tower as well as online. We are having a very special Capital Markets Day. It's our fourth annual event, but we are also celebrating 5 years since the IPO on the Bucharest Stock Exchange. So we have prepared a full day for you today with a little bit of a look back at what we have accomplished since our IPO in 2021, where we are in the present as well as what our goals for the coming period. I would like to present to you briefly the agenda for today. So we will follow our quite traditional agenda schedule. We are going to start with a strategy update that will be presented by our Co-Founder, Co-CEO of One United Properties, Victor Capitanu. After that, I'm going to sit down with 3 of my colleagues from the executive management, we're going to start with Cosmin Samoila where we're going to do a financial update. Beatrice Dumitrascu, CEO of Residential division, with whom we're going to take a walk through the latest developments for the residential segment as well as Mihai Paduroiu, CEO of the Office division, who we're going to follow to walk through our rental portfolio. After each of these sessions, I'm going to sit down with my colleagues for a 10-minute Q&A when I'm going to follow up on their presentations. Important maybe you remember from last year, we tried to keep our presentations as tight and short as possible. So each of my colleagues is going to have just 4 slides, a lot of data, but you will see that we try to compile as much as we could into -- just to present to you the essence. After that, we have a surprise panel. I will not yet disclose to you who are our surprise guests, but I really recommend you stay you stay with us until 11:20 because it's going to be a great opportunity to share 2 sides of a story of our 2 very different investors who will share how they get to know One and how they get to first invest in One United properties. After that, Victor Capitanu will invite our Chairman, Claudio Cisullo for a message from the gentlemen. Thank you very much, Claudio, for joining us today on behalf of Board of Directors. And last but not least, I'm going to -- my favorite part and I'm sure the one we're all waiting for. We're going to invite Victor and Andrei for a fireside chat. All the questions that you have ready for them, please don't hesitate to submit them already in our platform. You will see throughout the presentation. On the left side, continuously, there is going to be a QR code. Please scan the QR code, type your questions for our management, and I will be asking them during the Q&A session at 12:00. Please don't wait until the fireside chat, we'd appreciate it actually, as the questions come up as my colleagues are presenting the slides that you type what is on your mind. Last but not least, after the presentation, we're going to have lunch. And then at 1:30 another tradition of One United properties. We have property tours. This year, we have really exciting developments. We're going to have an exclusive look at One Gallery right before the official opening. So if you haven't yet registered, please stay with us until -- this is on the organizational part. Here is the QR code about which I was telling you a little bit earlier. For those of you who are with us in the room, you also have the QR code printed on your agenda, therefore, you can also scan it. Last but not least, my favorite part, the disclaimer. As always, we might be making forward-looking statements today during this conference about the financial performance of One United Properties and the actual results may differ materially. I kindly ask you to take into account that this disclaimer applies equally to all statements made during today's conference as well as during today's discussion. Without further ado, I would like to now ask Victor Capitanu to join me on this stage and deliver the very first presentation, the strategy update of One United Properties. Victor, please.

Good morning. Welcome, everybody. Thank you for being here today. It's been 5 years since we listed One United Properties on Bucharest Stock Exchange. This has been a period of fantastic growth for the company. Today, I'm going to focus on what we plan for the next 5 years, where the growth can come from and what it means for our investors and shareholders. As Zuzanna said, the slides are a bit full of information, but there are not many of them. The 4 priorities for 5 years are this on the screen. First of all is the net asset value of the company, which was presented at the end of June this year for the first time, the calculation of the net asset value of the company. I will break it down and explain why are we doing that? The second priority is about the rental assets. We are planning to build a new company, named One Income Properties, which will consolidate our rented assets and will grow and become a distribution vehicle. The third priority will explain about One City District and how we can scale our business into affordable housing. And as the last priority. I will explain about what we are doing in the United States and how we are creating a new line of profit from the business in the United States. So what we have done with the net asset value, we are seeing for a while that traditional accounting doesn't work so well for One United Properties and generally for a property company. And in principle, this is because the apartments that you have on books you keep it at cost. So basically, whatever is on your books as apartments is just accounted that bricks and mortar and windows and not the actual value of it. And this value -- this gap increased over the years. So we decided to make a calculation, as you would make in your own family. So how do you calculate your net worth? You have an apartment, you have a car, maybe you have a land, maybe you have a rental property. So you add all of that, you add the cash and the receivables, and then you have to deduct the debt that you have. We did it in the same way for the company in order to see what would be like the net wealth of the company. And we didn't include any discounted cash flow in it. So there's no future income in it. That's only the value as we see it today. This is EUR 1.24 billion to June, and this shows how low is the leverage of this company. So for this net asset value, the real leverage of the company is just 16.5%. You have here a breakdown of the net asset value. And you can see around 23% of our value comes from rental properties. And most of the rest is the residential and the cash. At the net asset value that we have now, the net asset value that we have today, we are trading on the stock exchange at a discount of 46%. Now what we plan to do about it so it earns more the confidence of the investors because now it's just adjusted by the management, right? So we are planning to audit the methodology that we used. So we are going to have one of the auditors, one of the biggest auditors to audit the methodology. And also, we are going to put an external valuer to confirm the value of properties that we counted in the net asset value. But these values are based on our actual sales. So for us, it's easy to model that value because we have, in the last 5 years, more than EUR 1 billion of apartments of sales in apartments, right? So for us, it's quite easy to calculate that value. Now on our track record, you can see since we listed 5 years ago, we did 3 capital raises, including the IPO. So we raised more than EUR 172 million. So the stock exchange really work for us, and we are very happy with the decision of listing the company. Also, we distributed to our investors during that time, EUR 78 million in dividends. If you calculate the compounded growth rate to the asset value that we have today, we've grown the company from before the IPO with around 38% compounded annual growth rate. Now what we want to do for the next 5 years, we want to double the value of the company. So for us, we are calculating the net asset value of the company. So basically, we want to reach EUR 2.5 billion at a net value of the company in the next 5 years. We made also a simulation what this can mean for our shareholders. If nothing changes with the discount, the market -- the share price would double in the next 5 years. But let's say, if the discount narrows and we earn more of the confidence of our investors, if the discount narrows to 20% you have 3x the value. If the discount disappears, we can do almost 4x the value. So I think it's good to keep this in mind because this is an actual potential of the company. Now the second point relates to our rental properties. As I told you, they account now around 23% of our assets. What do you want to do? You want to build a separate company called One Income properties, where we bring the -- all our rented assets and increase this platform with acquisition of new assets and raising more capital on it. What we plan to do with this company, we plan to distribute dividend. So this will be a distribution company. This company will only collect the rents and distribute dividends. So One United Properties will remain a development company and will focus on growth from development and One Income properties will focus on collecting rent and distribution dividends. With this consolidation, we will also show clearer asset values to our investors and clearer cash flows. On the acquisition side, we plan to raise capital on this vehicle and acquire other rented assets and grow the rental distribution of this company. Today, we have, as you see, around EUR 40 million annualized headline net operating income and almost 200,000 square meters. Just organically, without acquisitions, we plan to reach 300,000 square meters over the next 5 years with our existing pipeline and to double the NOI over the next 5 years. Regarding this new company, what we want to do, we want to decrease even more the LTV. Now our LTV is very reasonable, but we want to decrease it even more. We want to keep it around 35% in order to have more cash to distribute as dividends. And basically, our target and it looks it's achievable under the conditions of today could be a 7% to 8% dividend distribution, plus a 3% to 5% growth of NAV per year. On top of our idea, there is also some European legislation that is called rate legislation, real estate investment trust. This is also in the process of being approved in Romania. It exists also in other European countries, including to our neighbors Bulgaria for many years, Hungary is same. So probably it's just a matter of time until this law will come. And we think passing of this law and aligning our real estate legislation to European standards will boost the performance of this company. Now on the third priority and where we see a lot of potential for our companies, the affordable housing. Our first development for housing is on the former platform of Pro card in a development called to One city district. This is a 21-hectare plot, probably one of the largest that exist in Bucharest in the center of Bucharest, just 10 minutes driving from Unirii Square South. And we want to build very livable and lovable community, quite large community, 3,200 units. You have an indication, an illustration of a potential master plan that we've done together with a very renowned architect, very famous French architect called Jean-Michel Wilmotte, one of the best architects in the world, and we try to use his expertise to make a really fantastic place to live for affordable residences. Of course, if this goes according to the plan, this gives us a potential to scale this. This business is much more scalable than like pine residential, let's say. And also what is important is that with this business, you have the potential to recycle the capital faster. So theoretically, at same margins, your return could grow. We want to start this first in Bucharest. And once successful, we want to expand it in the places around Bucharest and in major sea Romania -- our fourth priority relates to our U.S. investments. I'll give you first an update, and then I will explain how we can generate more profit from that on top of our own equity profit investment. So basically, we registered the company, and I wanted to stress this because it's important, and it's a bit of a description of what United States means. We registered the company on the 1st of January 2026. So just think about this. 1st of January. I think Europe or Romania, it's impossible to register a company on the 1st of January. And we acquired our first land in the metal -- area of Nashville, in the city of Franklin. We acquired 6.4 acres, and now we have under contract 12.87. So this is a bit more than 5 hectares, about 52,000 square meters, and we are developing there a housing project with 160 units and around $110 million gross development value. And we allocated $12 million as equity for this development. You have an illustration from our architects. We have a great architect team on site from Tennessee, very, very good. On top of One Liberty Pike, we are in fast negotiation to build 2 residential towers in Miami and in Nashville. In Miami, we want to do this with a local partner called Fortune International Group. Fortune is one of the largest real estate developers in Miami and one of the largest residential brokers in Miami. They've sold over 30,000 units up to now on the high-end segment, and they are developing for more than 30 years and selling apartments for more than 46 years there. They are a really great company, and we are very advanced of finishing the partnership with them and codeveloping together a residential tower. In Nashville, we are under negotiation with the reputable U.S. developer to make a partnership and codevelop a tower with hotel and branded residences. What is important about these partnerships in U.S. is that our co-developments with highly reputable local developers. Also the one in Nashville is developing for more than 40 years. So these are both amazing companies. We have an expected return on our equity around of 25%, 30% per year compounded. So it's similar to what we are getting in Romania. Maybe a bit less but still it's quite high. But on top of this, this creates for us an opportunity to make profit from the promote. And what does it mean to promote? Basically, we are raising coinvestors for these developments, and we plan to put around 1/3 of our equity and 2/3 from our coinvestors. And we are going to charge a percentage of the profit of the co-investors. Now maybe you'll ask me why you don't do this in Romania. We did this in the past more than 10 years ago before we were a listed company, but we realized in Romania is much more profitable if we invest all the equity ourselves because basically, we can do most of the profit of the co-investors ourselves. In U.S., we cannot do that. So we expect to do around 20% to 30% of the profit of our co-investors as promote, and this will create a new profit line for the company. Now our priorities are clear. We want to grow the net asset value per share. We want to make it more verifiable by outside investors. And we want to earn the confidence of the investors. So we decreased the discount from the net asset value to the market price. The measures that matter most to us are value per share, so basically the net asset value, cash generation and allocation of our inventory discipline, allocation of our EBITDA discipline. Thank you very much. Thank you.

Thank you, Victor.

And I'm looking forward for questions now. Do you have questions for me or I have questions.

I have questions for you later. We give time for people to process. Now we're going -- And now I will invite our CFO, Cosmin Samoila, to deliver the financial update. As I mentioned to Victor, he will be back on this stage at the very end. So you have time to think of all the questions that you have for him. Perfect. Cosmin, please.

Good morning, and thank you for participating to this event. I structured my presentation in 5 areas. I will talk about the size of the company, about the relation of the company with its shareholders, about the liquidity position, the performance of the company and last but not least, the diversification of the company. About the size of the company, in terms of total assets, our assets increased from EUR 460 million in June 2021 up to above EUR 1.3 billion this year, and they are forecasted to increase even more in the next 5 years, up to EUR 2.4 billion. This represents as of today more than 3x increase and also almost 26% compounded average growth rate increase. In respect of the segments, 5 years ago, we had under construction 955 apartments. Now we have almost 4,000, and the ambition is to have over 6,000 units under construction in 2031. On the commercial segment, we are planning this year to end with 195,000 square meters. And the ambition is to grow above 300,000 square meters by the end of 2031. In terms of the company and its shareholders, the equity of the company, this also increased significantly in this period from EUR 172 million up to EUR 630 million as of June this year and is forecasted to increase more to EUR 1.3 billion by the end of -- by June 2031. This is the 3.7x increase and the 30% compounded increase. In the model that Victor presented earlier, which -- the NAV calculation, how we call it, which is basically a fair value model, the equity, we are estimating internally. It's as of June estimated at EUR 1.24 billion. In this period of 5 years, we had -- on the liquidity position, we have, as of June, a comfortable liquidity position of almost EUR 7 million. I have to mention that this liquidity position decreased compared to year-end. At year-end, we had a record highest liquidity position, EUR 128 million. But as you know, due to the new changes in the legislation, the cash inflows were not at the level from previous years. At the same time, with the construction sites, we worked as planned, and we advanced regardless of the impact of the new legislation. So this brought for this first half a net cash outflow for the company. Another important metric is the amount that we have to collect from clients or from contracts with residential clients already signed after June. So we have to collect EUR 445 million from sales contracts signed as of June. And in relation with this, in 1 year due, we have bank debt only EUR 40.7 million. Also, the entire total debt of the company is EUR 361 million. So basically, only from the residential segment contract signed as of June, we can cover in full the entire total external debt of the company. Also, as mentioned, this new legislation has impacted our profitability this year, and we decided to publish a new expectation on the net profit, which is 15% to 20% lower than initially planned. In terms of liquidity, what is releasing the cash, it's the registration process. This is mainly the procedures that have to be done with the land registry in order to fulfill the legislation changes. The deliveries, the moment you are handed over the apartments and also the rents that are continuously flowing to the company as recurring cash inflows. So these are the 3 base operational lines which bring cash to the company. In terms of the performance of the company in the last 5 years, cumulative net profit was EUR 440 million. This means that for each euro that was raised in the capital raises, we generated net profit of EUR 2.6. Net profit margins were 33%, 33.8% and also return on equity, 18% and return on asset in average 10%. In terms of tower in the last 5 years, above EUR 1.3 billion. And the forecast for the next 5 years is to have almost EUR 2.5 billion of turnover and EUR 581 million in net profit. This is a diversification part. Basically, the company evolved from a residential developer in the premium market to a diversified real estate group. We have, as of now, rental and services revenues representing 19% from the turnover. 5 years ago, this metric was 1% from the turnover. We have 4 asset classes, long residential. It was added also office, retail and hospitality. And also, we are addressing more geographies. Five locations, Bucharest, Sibiu, Iasi, Constanta and also Nashville, where we have direct investments and also another location in Miami where there is a partnership. What this means is that we have a higher base of recurring rental revenues. We are addressing a broader market and a larger base of clients, either on the residential buyers either leasing and rental sector. And also, we are exposing geographically to more markets, therefore, being able to capture more opportunities. Thank you for your attention, and I wish you all the best.

Thank you. Thank you very much, Cosmin -- that we will realize and execute according to the plan, all these assets, and there will be other opportunities rising. All these opportunities will further increase all these estimations.

So we don't have anything in our estimation, speculative or something that maybe we will find something or things like this. So everything it's what we know already, basically.

So you mentioned about the profit target of -- cumulative net profit target of EUR 500 million until 2031. And you also talked a little bit about the budget that we have revised as a result of the certain delays that were at the level of the authorities. We've discussed this quite extensively in our latest results call after the first half. Many of you probably know from the media about the cybersecurity attack on the karastan system, which did impact the whole market, the whole real estate market. So this revision, it considers the net profit finishing about 15% to 20% below initial budget. I want to ask because this is a very important question for our investors. How soon will the DA be actually recognized? So are we expecting this net profit delay to be visible fully in 2027. Is it going to be visible or beyond? And was this considered already in that in this EUR 580 million cumulative net profit that you mentioned until 2031.

Basically constructed this year, the budget was that we know already the new legislation that entered in Q4. And the first quarter, even if it was lower results compared to last year, they were budgeted as such because we knew the impact. What happened in the second quarter was something that due to the legislation and the collaboration with the authorities, there was another delay in doing the registration of the development in construction. So that brought another deal. Nevertheless, looking just at the results as of 30th of June, our estimations were that by the end of the year, we could recover this gap. But until we publish the results at the end of August, another event appeared, this cybersecurity attack, which again, was the factor of delaying the recognition and the profits. So at that stage, the decision was to go on the prudent side and already communicate that the net profit of the company will be less than anticipated. The estimation is that partially in the fourth quarter, this will be a slight recovery of this delay. It's just a timing delay. There is no permanent loss due to these events. And all this gap that we are delaying this year is anticipated to be recovered in the first 2 quarters of 2027.

Thank you. So 5 years back, 5 years forward is our theme. So I have 2 questions for you that I would like to bring related to this because when we first met in 2021 and right after the IPO of the One United Properties, and I remember the very first financial report that we work on together, it was significantly smaller the company than it is today. If you look at the balance sheet, I actually invite you to compare the balance sheet that we had in the first report for the first half versus where we are today because this growth is unbelievable when you look. So I have a question for you because the complexity of your function and of the finance department must have evolved significantly because it's 1 thing to look at EUR 0.5 billion of assets or even less than that EUR 300 million, and now we're talking in billions. And how did it evolve in these 5 years actually that since the IPO.

Basically, there were 2 directions in which the finance function evolved. First of all, we need to increase the speed. So we need to increase the speed in taking financial decisions and executing transactions in the finance department and also in delivering data, delivering reports, publishing financial statements and so on. So this was a key factor for the finance function to change. And the second one was the reliability of the data and of the information. Basically, we had to -- there was no time to make reports 3, 5x again because they were not reliable or there were various differences. You needed to make the report reliable and the data reliable from the first instance or rarely or maximum the second instance. And this helped in the finance team that we are following various metrics to take the right decisions. This helped the company when publishing results outside to external parties in building trust to the company and also internally, the information provided to the Board of Directors, to other users in the company basically helped the company to take the best decisions based on the most reliable data available. So I think these 2 directions were most important in changing the finance function from 2021 up to 2026.

Do you remember how many subsidiaries you consolidated in 2021 and how many we have now?

So we are consolidating around 26 or 27, I think, something below 30, and now we have 60. So it's somehow in line with the progress of the company.

Also the subsidiaries are reused also.

Some of them are recycled.

And the last question for you. So now looking to the future, very ambitious development plan, very ambitious targets in terms of assets, the turnover, the net profit. And what do you think are the key priorities now for the financial management, for you starting this year? What are you actually focusing on?

So I think what happened in the last period was a phase of growth for the company. As you saw also in my last slide, what I presented. So as the finance function is organized today, the growth of the company can be easily supported and the finance as it's built can scale up, can support the scale-up of company, how it scale up in the last 5, 3 to 4 times, it's not a big decision to scale up and the finance function to support the scale up with another 3, 4x in the next 5 years. What is more priority and more challenging is the diversification of company. So that's a little bit another story because going into new geographies, especially United States, not necessarily as in Constanta. It's something totally different, okay? Different tax environment, different legal requirements, different financing structure, different investor behavior as well. So that's a priority to adapt to the new geographies. And the second priority is also to adapt to the diversification in terms of product. And I'm not referring here if you build residential from -- for premium market or for affordable market because this is 99% same from finance point of view. I'm referring to other business. For example, the hospitality business. That's okay, still in the real estate industry, but it's a quite different business. And the priority of the finance function is to adapt, to understand and to be able to support this diversification. This is what I see as a priority and as a challenge for the finance functions in the next period.

And I think our investors will keep seeing it because speaking of the reporting. I remember how thin our first reports were. And if you compare them with the reporting in the financial statements we submit now. There is quite a lot of lecture for all of you. So thank you all for bearing with us. There will be definitely many more pages for you to read in the coming period as we have this ambitious expansion plan. Thank you very much, Cosmin. Thank you for joining. And I would like to now invite Beatrice Dumitrascu, our CEO of Residential division, who will walk you through the segment update.

So good morning, everyone. I'm Beatrice Dumitrascu, and I run the residential division. One second to organize a little bit. So I'm very proud of what I am going to show you today because these results that we have it means a lot of work for each and every one of us. So I'm part of that group where capital and strategy becomes product, sales and collection. So how do we keep both, meaning that -- we want to expand the addressable market without compromising on quality. And both halves are very much important for us because growth that costs your margin is not growth. And if it's not -- we are not able to scale, it means that we cannot do business. So I will show you how we keep both. What we have here 5 years back and 5 years forward, side-by-side 2021 and 2026. At the IPO, we had EUR 0.94 billion residential portfolio gross development value, 403,000 square meters built or under construction and only one market, Bucharest. What we have today is EUR 4.5 billion plus of residential or growing gross development value, around 1.09 million of square meters and 5 priced one markets. Bucharest, Constanta, Sibiu, Iasi, Nashville and Miami as our next target. Why did that -- it produced EUR 1.05 billion in sales, presales and reservations since the IPO across 3,595 units. And the pace is compounding, not slowing. So today, we have, after the first half of this year, EUR 106.1 million across 229 units, average price up 24% year-on-year, mainly reflecting project mix that we sold. So we are heading to deliveries this year that are historically the biggest since we have started. So what I want you to keep from this slide is the fact that One is no longer a developer with projects. It is a platform with a repeatable and scalable model. Land, design, execution and sale that we have proven in more than One City. So the question for the next 5 years, it's -- if this market to whom we can address this platform, if the market is big enough to address the platform that we have. So we know that Bucharest is substantially undersupplied. We have a deficit of around 100,000 units. And this shortage, it's precisely concentrated where we are heading at the mid-income segment. And we know that these deliveries that were in Bucharest for the 2025 were 44.7% only in the area that we are interested in. So it is a lot of room there. And this is very important for us. And then we have to understand that 94.3% is homeownership, which means that it's the biggest -- which we know that is the biggest in the European Union. And as well, yet only 7% of the working population holds a mortgage. So we know that ownership is cultural. Leverage, it's still ahead of us. In terms of pricing, this chart can say it better than I can. So Bucharest trades on from Prague or Warsaw, if you take them into consideration. So our plan today, because what you can see here is that we have a market where we are not squeezing being a market completed. It's a market where we have headroom. And our answer to this headroom, it is scale. So you have seen already what we have done. You have seen the trajectory. You have seen that in 2014, we had only 14 units, then we had 900 in One Cotroceni Park, 2,000 units in One Lake District announced and under construction. So going to the mid-market, now we are moving next to One City District, which One City District, it's our affordable housing platform, a new generation that is going to be developed on 21 hectares. Victor said that there are around 3,200 residential units on with a construction that is built 322,000 square meters. So what is important to understand is that is one master plan and the addressable market will multiply. Now we know that in order to expand the market in this world if you don't compromise on quality and you don't cut from your margin because if these 2 are surviving the trip, it means that you have a lot of things to do ahead of you. Now I have 4 points to prove it. We have Green Home certified 100% since '27, and we are aiming to leave zero carbon in the future and which means that it's not marketing layer, it is a standardization. It's a fact. So we're going to do that in the future as well. We also know that in terms of economics, 35% is the minimum gross margin per development. We also know that up to the date, we have delivered 15 developments with a gross development value of EUR 774 million. And we also know that we have the trust from the clients, how? 75% of our under-construction construction in June '26 were contracted, which means that clients came with deposits to us, and they trust us that we will deliver to them new developments that of course, yet they are not finalized. So it is important to understand that these are facts. These are things that happened before. This shows us that we can move forward and we can scale and we can go to the other step. And this means that the -- one of the questions that we have for the next 5 years is -- that defines the next 5 years, if this dip market that we are addressing to, it's large enough for us so we can fit in and bring our new platform. So the next 5 years, we know that we have as a commitment already EUR 445 million the future gross collection from contracts at June 2026 scheduled for 2029, and we also know that we have under construction of 3,939 residential units, but you have to see that 2,562 of them are scheduled to be delivered this year, which was a huge effort for the company and everyone involved, the biggest delivery year-to-date. And as you can see, EUR 2.37 billion gross development value for all these over 10,000 units that we are planning to launch. So we have a new generation of developments that are coming to life. Some of them scheduled for 2026 and 2027. And I will mention some of them, One Floreasca Club, One Cotroceni Towers, One Park Lane, One riverfront in Sibiu and others are about to come. And now in the end, I have to inform you and to announce you that we are inviting you now tomorrow to our launch because tomorrow, we are launching One Floreasca Club. One Floreasca Club, part of the cities Floreasca, we know it since from the beginning that we had One Floreasca Lake, One Floreasca Tower, One Floreasca Vista and the list can continue. This new development that -- sales that opens tomorrow, it's low-rise development, a boutique one with 211 units. We have 10 commercial spaces at the ground floor with gardens at the ground floor. It's a beautiful area that is going to be a new attraction because it comes -- it's very close to One Verdi Park, One Mircea Elliade and of course, to One Gallery our new development that is going to be a huge attraction for Floreasca, the people can come by walk to visit the location. And we also know that what I want to tell you in the end is that you have to understand that we can be precise. We have the placemaking that we have already done up to now and the standards that we are having means that we can build 211 apartments with the same responsibility and with the same discipline like we are going to build 3,200 units. So please come tomorrow or even today if you want to, we have more cap already. Thank you.

Thank you, Beatrice. Thank you. I will start making the news also today. We have the announcement of One Floreasca Club. I was there at the launch of One Floreasca Sunset. It was an amazing event. I like the -- my husband told me like I'm going to leave from here from -- with several apartments because the vibe in the room was incredible. So beware of your pockets, if you join Beatrice tomorrow at the launch. But I highly recommend it. I think it's an amazing crowd that you always manage to get together -- it was something really, really unique. So I highly recommend that. And I want to -- the reason why I'm mentioning One Floreasca Sunset because it was an amazing launch. People were almost fighting for apartments while there. Yes. And this was very much visible in our trading update because within a few weeks, you've managed to sell over 70% of the whole development. Basically, the whole 70%, as far as I understand, was sold over the weekend, and then it was just the practical part of actually signing the agreement. So I think that's something really unique for the real estate market. And I have a question because many times when I discuss with investors, they actually ask us about the strategy related to launching the developments. And Floreasca, 2026 seems to be the year of Floreasca. So we had One floreasca sunset and now one Floreasca Club. Can you tell us a little bit how are these 2 developments different? And who is the client for One Floreasca Club. Are these 2 developments actually stealing a little bit from each other? Or are they complementary? And when I say stealing, I mean, the customers, how does it work?

So first of all, as we have seen, we have a deficit of residential product on the market. So each time we are launching a new development, we are finding the right clients for each development because buying a home or investing, it's something that it's really special, why? Because if you buy for yourself, it matters how you feel when you go there. You've seen at Floreasca sunset, you're almost trying to move there as soon as possible. So if you buy as an investment, you know that if you buy as an investment, you know that you have to see how that property grows in terms of pricing, and it's a value for the future. So we are lucky that we have raised this brand, One, and it's trusted. And as well, it's like an open book because everybody can see what we are doing because it's a listed company at the stock exchange. And in terms of how clients are, for example, that location was checked by everyone all the time because it's a great position. I'm talking about One Floreasca Sunset. There are -- it's between 3 lakes and close to a park and spectacular views. So everybody was willing to be there because it's in the area where we have the business center because the north was developed in the north part of Bucharest. So everybody wants to move closer to the area in order not to leave in their cars for 1 year -- 1 hour and 1 or 1.5 per day. And for One Floreasca Club. Actually, it's not selling any of this client. It's addressed to another type of client. It's a low rise, boutique. There are only 200 residential units in an area where it's close to other important things that matter to the potential client. But the first thing that is important is that the deficit also helps us to sell very fast because there is no product on the market. I don't if I answered.

Yes, you did. And I love that you mentioned that think about the 1 hour traffic because this was my life before I did move actually to a One development. I cannot not stressed enough to all my friends and my family, how important it is, you can actually take a walk in the morning and go on to your office. And then you look at all the people in the cars and you're like, "Oh my god, I saved 1 hour, 1 way of my life." And I think this is the one of the -- and I say it from my experience, one of the greatest advantages of One development that they are always in the best locations. And this is something that I'm very excited as I see the pipeline because -- now One is not only going to offer this in Bucharest, but also in other cities. So people from other cities in Romania are going to have this opportunity to live exactly right in the heart of the city. Now I come back also a little bit to the question because how do you decide the launches? How do you hand pick which development gets launched when? Does it depend on the presales? Does it depend directly on demand. How close are you actually with the clients to determine what comes to the market next?

So it all depends on how we get the building permits, first of all. Second of all, we have to be sure that everything gets prepared. Now going back to the deficit. So if you don't have too much product on the market, it's true that you are organizing the launch according to the need that you have. For example, if tomorrow, we'll be able to launch One Cotroceni Towers, we will do it because we know that area, it's again, an area where the urbanization is important, and there is lack of product in that area. So everything depends on how fast we have all the documents and how fast we can prepare for that. So this is the...

One of the questions, I also gave this question in a different context to Cosmin, but it has been a very challenging year because of legislative change that happened in the Romanian real estate market, again, affecting the market as a whole. And I wanted to ask you for your perspective, how did the clients react to this change? Were they aware of the change because the so-called Nordic Law as it's referred to, it was introduced to protect the client. It was introduced rather swiftly, I would say, like this without sufficient implementation time. And I wanted to ask you how did the clients respond to that to the new payment schemes to the new approach towards sales. Did it impact in any way the demand or maybe the demand actually increased? How do you see it?

The demand exists. So just think about the fact that if that load didn't exist and it came in December last year, actually, there was 75% of One Floreasca Sunset sold, there were precontracts not reservation in the beginning. So this is what it affects you in the cash flow, of course, and how you report the transactions. It's a lot of noise in the market. So the only issue that we have is that at the moment, we are able to discuss face-to-face with the client and explain to them all the details, and they see what we are doing. It's much more easy to make them buy. But if they're going back the Internet at the noise, sometimes they are going to delay the decision of buying for -- because today, the decision of buying, it takes longer than it used to. For us, it not was an issue that the -- the lower range because we were using the money only to develop this construction that we have in our portfolio. So it's only an administrative issue, which is huge, by the way, because as I said, at One Floreasca Sunset, for us, we had to have only reservation contracts. Now we are a little bit crowded with the signs due to the fact that we had these issues that came to us. But in fact, yes, there is a lot of noise in the market that affects the decision of the clients. We do have clients. But of course, some of them are waiting, we don't know for what. But in the end, they are coming to us buying and saying that they should have taken the decision at least 2 years ago.

And what I wanted to ask you is the results are consistently extremely strong for the residential division and is due to you and the whole sales team for doing an amazing job quarter-on-quarter. There is a lot of pressure once you're a public company to keep delivering the results. And I think one of the greatest things is that regardless which quarter you look on, there is always going to be sales. And that brings me to the question because a lot of investors, they look on our results, and they're like, okay, there is there's so much sales, who is actually buying these apartments. And they ask, are those investors? Are those actually people who do want to live there as the end client. And of course, the 200,000 units deficit. It's a clear proof. I always give this also as an example of like there is a deficit. And also what Victor always likes to underline that people want to move and live in a modern apartment as the wealth is increasing. But could you more or less estimate what percent of units is actually sold to the end clients versus investors? Do you track it? Or is any of this number so insignificant that actually.

You have to understand that on the market, there are a lot of money. So first of all, having a home ownership, that's big that we have, people are able to renounce at the old communist apartments, sell it and come and buy a new apartment, maybe move from a neighborhood to another to do their new life that they have socially or because of the work. Second, the people that invested early with us 10 years ago, they bought only one apartment -- and wants to live in. They've seen how the added value is to do what they have -- what they bought. And it's rather more save to keep in this type of investment, the money rather than keep it into the bank. And so we have a mixture of clients. We have final clients that are coming their first home, clients that are buying just to make an investment somehow, clients that are selling what they have, they want to move forward and as well we have investors because these markets in Romania, it is not yet a market of rentals. So we do need investors to come and buy packages of apartments so they can release them on the market and stock of rental units. So in this moment, we have all types of clients. But as a personal target, I want to get more -- to increase this broader because I know there is -- we can do more for the final user as well as the investor because it's a lot of money. There are a lot of money in the market.

And the last question, I come back to the regional expansion. So Constanta, Iasi, and the Sibiu, are the 3 cities where One right now is looking within Romania, we have already lands, what advantage do you see outside Bucharest? And which markets do you -- are there any limits in terms of expansion? Is there -- are there any specific macro data that you're looking when deciding to go to a specific city, is it demand? How do you look at other cities than Bucharest? Because for many years, actually, we have been focused on Bucharest. So this was very much welcomed by many people. I cannot tell you enough how many messages I get about One Riverfront and Sibiu.

Yes, so One Riverfront and Sibiu is going to be something because everybody asked about it.

So what advantage do you see in those secondary cities actually. And what are the other cities that you would consider could be the targets for One?

So first of all, we are scaling, and you want to multiply and to have a bigger market. And One already demonstrated what they can do if they can have like Bucharest at their disposal to grow. So these cities are important cities on the map of Romania. And when you find a good location where you can put your brand and show to the country that you can do what you have done in the capital, I think it's a good point. And moreover, if you don't scale, the growth is not the same. So the main idea is that if we find good lands at good price, of course, you buy them and you develop there because you need the entire infrastructure to be -- so it can be surrounded about the entire -- so the entire infrastructure needs to be in place, so you can deliver the product that, that city is in.

Thank you very much, Beatrice. Thank you for joining me and for you're interested in One Floreasca Club is going to see you tomorrow. Thank you all. And I would now like to move to the rental division and invite me, Mihai Paduroiu.

I would like to start by thanking everyone again for joining us. I know it can be quite challenging to manage and process all this data and all the slides and all the billions and percentages and so on. So I will try to be as brief as possible and then take -- happy to take a lot of questions. Following the same concept of our presentation today, so 5 years behind and 5 years forward, I wanted to start by presenting a snapshot of June 2021, which was the actual date of the IPO prospectus. This will help you understand and a lot of you remember, where we actually started from with the office and commercial portfolio. So June 2021, we had 3 assets in our pipeline. We had One tower, which was recently finalized at that time. It was 61% let. We had One Cotroceni Park, Phase 1 and 2, which is our largest asset and which at that time was still under construction and it was 63% let. And also, we were redeveloping One Northgate, which had a similar size as One Tower. So 22,000 square meter gross leasable area, while the others had 24,000 and 81,000. So this was our portfolio at the IPO. At that time, we presented a very clear strategy. The intent was that the office portfolio would become a key pillar of the company and of the future growth company, balancing with recurring yearly income, the development activity of our group. So this was the intent. This was the strategy. And the objective, the end objective at that time was to own and manage a portfolio of roughly 130,000 square meters of gross leasable area and continue to operate it, so not divest, not sell, continue to operate it on a long-term basis in order to, as I said, complement the development of residential. So this was the snapshot of where we were at the time of the prospectus in June 2021. And I wanted to include a few key visuals because I think we very easily forget about all these milestones that we achieved and how we got here today. So you can see here One Northgate under redevelopment, One Cotroceni Park quite in very heavy construction and development stage with the first phase being water tight and the second phase being at structural level and also with One tower being almost at water tight level. So now let's see where we are today. What does the office portfolio look like today? So we reported at the end of the first half of this year, a gross leasable area of over 150,000 square meters with a leasing percentage of 95% and headline net operating income of almost EUR 29 million. Nevertheless, at the end of this year, because we are going to welcome 2 new assets, which have been recently finalized One Technology District has also been commissioned actually yesterday, and we are going to commission soon One Gallery, the former Ford factory. At the end of this year, the portfolio will actually reach 190 square meters of gross leasable area, with a level of 96% in terms of occupancy and a headline operating income of over EUR 40 million. Another key metric, which I always invite you to analyze because it tells a very deep story about real estate portfolios in general is the weighted average unexpired lease term of that particular collection of assets. In our case, the weighted average unexpired lease term at the end of 2026 is almost 7 years. So this shows you a very long term and a very stable income flow for the next period. This is a very important key metric. The collection of assets is really particular and really special. So One tower is the building where we are today, is the foundation of the portfolio. Then One Technology District, the Infineon Technologies is built to suit their headquarters, which, as I mentioned, was just commissioned to yesterday. And I'm really happy to confirm this was one of our fastest execution projects ever in the entire history of the company, we started to pour concrete in February last year, and we managed to build and successfully commission over 30,000 square meters of gross build area or 22,000 square meters of gross leasable area from February last year until end of August this year. This is amazing, especially given the complexity of the building and the fact that it's one of the most sustainable buildings ever built in Europe. Then One gallery, which is going to commission very soon. One Cotroceni Park Phase 1 and 2, the Intesa headquarters in Piazza Victoria and bokrobo, which has also recently been commissioned after a very heavy redevelopment and CapEx program that we run there in order to upgrade the technical specifications and improve the overall environment. So all of these assets are fully let. This is very important. Also, Bucur Obor will be 90% let at the end of this year. So all of our core office assets are fully let with Bucur Obor at 90% at year-end. Now because of the demand that we constantly had from investors, especially from institutional investors. As Victor mentioned earlier, we decided to create this new company, which is called One Income Properties, which will consolidate all these amazing assets and hopefully will attract more capital and will create an even wider asset base and hopefully will become one of the largest or if not the largest REIT in Romania. So I'm really excited about this. And I wanted to mention that we reached this decision based on the demand from investors. Based on the need of the market, for such a product because offices, high-quality offices remained a go-to asset class which has proven to be cycle resistant. They provide a combination of yield appreciation, yield compression, rental income, a natural hedge against inflation. And all these compounds into a very attractive, stable and long-term recurring income for investors. So this was the thesis behind One Income Properties. Another key visual of where we are today, One Cotroceni, finalized, fully let, One tower, looking amazing here, also fully let. And finally, the former Ford Factory, One Gallery, very close to commissioning and to welcoming the first guest there. So we saw where we were at the prospectus. We saw where we are today. And now let's look at where we want to be 5 years from now. I'd like to call this Vision 2031. As you already heard today, we are going to create this new vehicle, this new company, which will include all the existing fully rented assets and will attract substantial new capital and new assets inside the structure. The objective is to reach a size of 300,000 square meters of gross leasable area and the gross asset value of over EUR 1 billion. Now if we look at the track record, where we were at the IPO and where we are today, you will notice that we delivered almost double than what we promised in the prospectus. So at the end of the year, we will have almost 200,000 square meters. We promised 130,000. And we will have a gross asset value of almost EUR 600 million. And we promised EUR 289 million. So we almost delivered double than what we promised at the IPO. That means that we will deliver double by 2031. I don't know. What I can promise you is that we will definitely try. Thank you very much.

Thank you, Mihai. Good to see you here again. So Exactly. This is my question. You exceeded the expectations for the last 5 years. What will happen in the next -- quite impressive. And indeed, the 129,000 square meters and EUR 289 million stabilized value. Today, we are at 200,000 square meters and EUR 700 million value. So -- almost. It's rare, I would say, for developers to actually exceed that significantly its targets. And what did One do differently? I mean, what helped this for you to exceed this initial target?

So this is a great question. And I think there are 3 key pillars, vectors, which created this result. The first, in my opinion, is the fact that we made substantial efforts in order to understand the demand of occupiers. In our case, in the office portfolio, it's mainly multinational companies, corporate occupiers and really being able to understand, especially through the past cycles, which were the COVID, then Ukraine war, AI and all the things that are happening now all at once, which have created a lot of impact and transformation in terms of how occupiers approach their workplace and their footprint and so on. And so being able to understand this demand and also being able to very quickly adapt and redesign and change the product and become more flexible in order to cater to this very dynamic demand. So understanding the demand, being very fast in adopting the necessary changes. And also, I think the third vector was always in terms of flexibility, being able to think outside the box and be flexible to always search for solutions. That demand was always there, especially in an emerging market with a fast-growing economy, offices are a structural part of the infrastructure, the real estate infrastructure of the economy. So the demand was always there. It was just a matter of finding the right profile and the right decisions to match that demand.

This is a very good point because I think for a relatively young developer because we cannot say we are not young in this market, so let's look at it as 5 years. you have a core portfolio 100% leased even before the finalization of the developments. And this is especially important because if you look at the vacancy data in each of the relevant submarkets, so we're talking about if I compare you for One Technology District, One Floreasca for One tower and Central west for One Cotroceni Park. You will see there a lot of vacancies. So what does one do differently in the office market that you actually -- you're fully leased. It's amazing.

I get this question a lot. And I'd like to start answering by referring to this story of One or the secret of One, which is actually not the secret of One, it is the story of many because all these results are delivered by many young very talented and extremely hard working and dedicated people, which are part of our teams, that together bring to fruition these results. So I call that the human layer. So together, of course, with the right mix of ingredients which is the location, right capital allocation, the technical specifications, which, in our case, being a full set of developer with designing house, general contracting in-house are very, very important and then the sustainability factors. And very importantly, also the client care because we act as a boutique firm when it comes to client care, we are very, very close to our clients from the residential buyers to the large corporates in the office portfolio. So I always like to say is that we act in terms of client care as a small entrepreneurial company while we execute on scale like a very big institutional company. So the human layer together with all these factors contribute to this absolutely unique value creation business, which generates all these results.

And the last question for you. So the 2031 ambition is more than 300,000 square meters, EUR 1 billion portfolio rental portfolio through acquisitions and own development. Are you pursuing the build to suit as a principal idea for developing the office further? And how much of this ambition already secured or somehow defined for you, maybe not yet for our investors.

So obviously, we've already started to work on this. I can confirm we already have a significant pipeline in the works. I learned from Victor many years ago that no matter the cycle, there are always opportunities in each market. It's just a matter of identifying them. So to answer your question, yes, we are already working on a pipeline for M&As, but also on new developments. So you cannot reach a sort of portfolio without looking at every single typology of opportunity, be it build-to-suit, an acquisition of an already income-generating asset or maybe a redevelopment or an asset where we can step in and create substantial additional value through our brand through our expertise and so on. So it will be definitely a combination of all 3 because it's quite difficult to reach, of course, in order to provide a dividend to the investors, it's difficult to reach this only through acquisition or through own development, One market and so on. So it's important to cover the full spectrum. And again, I can confirm that we are already working on opportunities, and I'm super excited about this.

Thank you very much, Mihai. Thank you for joining us today. Let's thank Mihai. So, so far, you have heard a lot from us here at One United Properties from my colleagues, from myself. We decided to do things a little bit differently. So I mentioned to you that we have a surprise panel. We want to present One United Properties from a different angle. And for this, I would like to switch to Romanian [Foreign Language] So I want to invite the CEO at this point. I can say it's the first time that you speak as an investor. And I would like to have a connection right now because, first and foremost, you are also working at One United Properties. And I want to ask you -- so I want to ask you something. First and foremost, Usually, I'm on stage. When I speak on stage, I usually see right on creative, I speak voice, tools, we do other things. But this is the very first time that actually speak about something that is not necessarily on my agenda, right. So 10 years ago, we moved in this point that you have built? I like the area quite a lot. I was surrounded by a lot of greenery. We were very close to the park. I have a very active power life. I do a lot of sports. I don't like to drive. And for me, it was very, very important to be in a place where I can unwind without using a car and to have things close to me. And to live in a healthy environment. This is exactly what we were speaking earlier with the Beatrice that the greatest advantage of all developments is effectively, you don't need a car ever. Myself, for example, I never use a car, my own. But today here, I came with a bike. It was 6 minutes from where I live. And it was really good because I didn't participate to congest the traffic at all, I don't want that. I understand that very well. Okay. It's very good either by foot or run or by bike. I want to ask you as a joke was Victor or the site was convinced to you. I was convinced how they're seeing and how they maintaining themselves because I was already living in this house, and I knew very well how I feel. I thought it was the case that I could invest in this without an issue. So I want to know how did you end up buying shares of One United Properties because this is a bit of a secret, but many of you don't know that Dalia is also a shareholder at One United Properties. Well, that's exactly what happened. I got very used to the community, the people, the place. And even Victor, I will see him quite on somehow. This idea was quite nice for you. I believe in this, I like how it's being developed. That's how the business goes. And that's why I'm interested in the shareholders' pricing. I like the idea of it. And I believe in this project. And I want to be a part of it. So the first time quality as you invest in this relationship with one of the shareholders I really thought it was quite different, this is not something that the capital market has seen. This was a more successful point for me. And now a question, you checked One United pricing from time to time? No, not really. I actually looked to see what can be place in the areas next to it. For example, I'm trying to look to see what's around to come in to all investors to invest in and to look and verify just after a few years. But I'm a more creative mind? This is how things are working for me. Now I want to move forward to Mihai, who has got the One United properties in a bit of a different manner because I'm thinking the first time that you've heard about One United properties was about the IPO, right? Well, we knew that we had so many development at a point. When I looked a bit close to one dimensional area to see how things are going. So when did you invest for the first time during the IPO, what's your thesis for instance, meaning what are the reasons, okay, this company that I want to invest. I wasn't on -- I was already investing in different companies, both in Romania and outside of Romania. So the fuel was quite normal. What has the telling for the investment for me was the positioning of the market because the real estate is a very cyclical point. It depends quite a lot this cycle of the economy and the interest rate. So it makes it grow in terms of what the cycle was. What I was surprised was that, that was a good development for all the trends. Close watches, real estate. These are -- have a high resilience because, okay, we could divest in a few that has a good margin but without being attacked by the I think cyclic rate. So that matters. Also the history a few that is a difficult one, so to say. Be sure to look at the companies behind had a lot of issues. They didn't come in. So One was completely different from that point of view. I remember when you were speaking in 2021 about it. I think discussing with the constructor who was working for that. Discussing like that just by chance, we're working for one now. How is that the power of the brand, to be happy to work for a company to execute for that company. And all packages may be quite confident. Another important aspect was -- the message that was sent since that moment, we are targeting to have a 30% upwards commitment that has proven to be good. So in that the financial areas, again, something that many entrepreneurship companies encounter within the financial areas either people who understand really what the business were extraordinary business acumen. But when you get to the business part, it becomes an issue. For Victor, I think it was increased. On the beach, he wrote to me, we're going to work with One and I made it. Now I know the power of the brand. It's a famous one. Even though you speak in different languages, you do speak about the same projects. So you're speaking about brand quality, about recognition. In seriousness, which is also very important for each resident that lives in the One development, you either invest money on One United Properties. So I have another question related to business one because in my experience, we go with the institutional investors. So we have a question that always very important, which is a bit confusing for people in the sense that for many investors, institutional investors is far easier to analyze a company that is just a developer. For residential or developer, for office space, many, many times, we get the questions, why do you do both. For you as an investor, do you believe it is an advantage One is doing both Office and residential or office. It depends for the company. I understand the desire to enter that area because you have a predictable cash flow. And this was the aspect you saw it earlier presentation, this development. I remember from 2021 was I think it was EUR 30 million for this year. So it's a positive element, right, in terms of income, especially in the difficult market like Romania, especially on the land market is a difficult market, in a normal market, you need to have at least a 50% per company to be able to deliver a good product and profitable for the client and the company. But if I look at One, it's about 30%. It's a difficult, difficult market. So I understand the revenue issue. However, it is highly problematic to see another company working with both. I can analyze the One look at it, but One is actually the best for all the companies company that's just rentals is getting close to a part, right? So it has a predictable income without a point of development, and it works with one of the best portfolios in the world. So the discussion is very simple and clear. And also from the point of view of risk, you can manage either the rating, if you have a lease of over 5 years, you can have a good rating. You can wait for a pool of investors that is very varied. On the other hand, when you look at a certain degree of development, it grows quite a lot because for the development side, you have to go and trust a lot. This is a fee that is taken now that you expect for 5 years, 6, 7 years to see the project that's going to be deliverable. So you move on trust base. So it's also a lot of projects competing. So when you look for the development side, it's an incredibly large part on this side. So when you put them side by side, you have been accumulated, you see that they can occupy a large part of the rentals, you have to take them out of the equation, bought the rental, they are like, okay, I have figures of the government. I don't want to buy it or I cannot take it by -- they have a risk of development for a market like Romania. So the answer is there's benefits and minuses. So the reasonings are concrete to have a predictable cash flow, but the value is a downside in that. So going back to Dalia. Let's get out of the investment area a little bit. So I have another question for you. How is the perfect Bucharest is for you. A civilized one. Educated one, who is naturally moving a lot by foot, would buy claims with spaces, green spaces with friendly people, where you can walk a day or at night without any issues. And I think that we have developed quite a lot in the last couple of years. I know that your dream is to be frank, my dream also, just as citizens or as people who are working on this, we see that in the same way. Have you ever thought what role do you think One might play in this image of the Bucharest. How can One help in meeting that design? I think it can do many of the things that we have said earlier. So next to the construction, architecture, personal footprint, identity. I think it keeps account of this human side. The fact that even though you don't live in the middle of nature, you can do nature in also around us, to the best extent and as much as we can for because it's difficult to live between the gray side, and I'm not referring to the large offering to the Bucharest as a whole. You have to separate the decorum and to come out with to like the area that you're living. That's it for me personally, the most important aspect is to have a lot of green when you get out. You have to look at something that is green. You know that. Yes. And this is the most important and the biggest advantage that I see for myself that One now is building a city but it's building in areas where you have a lot of public parks and there's a lot of area that's been landscaped, which are helping for that specific to be greener, more beautiful for all inhabitants. 100% that I would love, I think, in the future to mobile and live perhaps in the mountainous areas or something, I don't know, I would like that, to be frank. I would take that into consideration, to be frank. One fresh of -- maybe -- we have a client already. It's an idea. So if I were to ask you, where do you see us in 5 years, so you're saying the mountain side. Yes. I think it's the ideal please. Dalia, that's all, I think you have some work to do. Thank you. Thank you. Also some from us I will be now switching back to English. And I mentioned at the beginning that we have our Chairman here with us, Claudio Cisullo. And I would like to kindly invite him to join me on the stage for a little bit of a message from the Chairman because I will not go into a detailed Q&A because we did have that last year, so I don't want to repeat the same ideas. But maybe we go a little bit more into the personal thing because I really like the discussion with Dalia about how we first heard about One United Properties. And I really -- Dalia living here and being in Romania, the chances of her hearing are actually significantly higher than you hearing about One United Properties.

Yes. Actually, that was a funny story, like all the good things happens in life, there -- most of them are funny. So basically, I know Romania because I'm a Board member of this Ringier Media Group in the holding. And Ringier is since 36, 38 years in Romania, Imobiliare, Libertatea and so on. So we had Board meetings here, and I get to know in that regard, I get to know Romania, which really attract my heart, my Italian heart actually because I see a lot of similarities. Then I said, okay, one of my company -- so we get up a nearshore center here, which today, we have something like 270-plus people here in Bucharest. And on that journey, I saw the real potential in the real estate market. So my first intention was basically to buy a few hundred of apartments, new build apartments, rent them, then keep it for a few years with 5% yield, looking at the increase of the value of the apartments and then to sell it to a pension fund. That was basically the intention. So we started the journey, and I think around -- I had in my portfolio, 100-something apartments. And then, of course, I get to know why One United Properties. And then I said how to -- how is it possible to approach One United Properties because I have this -- all these maybe stupid, but very successful habit. I always want to speak with the principles. And then a banker, which was CEO of a bank here in Romania, brought it together with Victor. We had an interesting lunch. We have had a very interesting launch actually. The pasta was good as well. And there, we get to know each other, yes. And I was amazed. Of course, this building here was already built. And I was actually I bought actually apartments in the building. I think it was Tower 2 or Tower 3. I don't remember tower 2, I think, yes. And so I said, "Wow, what amazing companies." But the most important, which in my career, so I'm 42 years in the business, started with 20, no money. I had to borrow 1,000, let's call it, euro to start my business. And my family office now next year is celebrating the 30 years. So I had a lot of investments across all over the world and so on. So I said, wow, what an amazing company, but the most important wherever you want to invest and you think as a long-term investor, you invest in people. That's the most important. So I mean, I was very impressed by Victor, and I get to know Andrei and I said, wow, these guys actually -- they are the mindset, the Biz reminds me very, very, very much like Swiss people, okay? Correct, professional, okay, much more drivers than Swiss people, to be honest, okay? But still, with this warm hearted okay, and let's say, kind of Latin blood, which impressed me a lot. Product I saw already. So you have then the 2 amazing guys, which build it up a company, which today is absolutely impressive. And then I started that was in November 2020. I started then. We discussed and we said why I do not buy shares in One United Properties. At that time, it was not listed. And we agreed to buy shares. So I even swapped, I think, if I remember now, I even swapped the apartments to buy more shares, okay? And then I became a Board member and in March '21, I increased my stake of shares. In June 2021, as you all know, we went public. And today, One United Properties is the strategically, but also in terms of size, the second biggest investment, which is in my namely office. And so that's a little bit the story how we get to know each other.

I have to ask because you mentioned about swapping the apartments for One United Properties shares. And I have to say every single Capital Markets Day, we do get questions from investors to Victor and Andrei and I never ask you that, who are asking, what do you recommend I buy 1 apartment or one share.

So my recommendation is to buy both. That's basically my condition because this is basically something which you lever everything and you balance your investment. And you can be sure, one of the both, okay, will go much well than the other. And sometimes it changes it's vice versa. So my recommendation is to buy both.

And I have a question. Do you -- so over this history of becoming a client then becoming an investor, then becoming the Chairman of the Board. Now we're here on our annual Capital Markets Day 5 years since the IPO. What would be the message that you would like to leave our investors with this 5 years in, 5 years ahead of us, given what we've presented today to our shareholders.

Yes. I mean, look, in terms of why I'm Chairman of the Board is not that -- I do understand a lot about construction and development. So in the meantime, I also understand something more than before. But I think I could bring in the, let's say, my experience in terms of, let's say, international knowledge base of corporates, okay, especially when you are public listed. There are so many things which needs to be considered. Okay, Romania still has a little bit space to improve in that regard. So look, I mean, if you look at the valuation, which Victor presented and our net asset value, and if you look at the gap, which is between. So we are trading at RON 33 per share, right? I looked just before RON 32.50. And you look at we easily, easily on fair market value, net asset value more, say, we should trade at RON 66, so the double, okay? This is something which no investor can do something wrong in buying that share. Because what we did in the last past years, we delivered every quarter, quarter-for-quarter, we delivered the results. The top line, we delivered the profit, we delivered the dividends. We delivered everything. We were only harmed and not able to deliver because some political situation did not allow us to deliver, okay? Or if I look back that we had 2.5 years around about 2.5 years of let's say, stocking with permissions with building permissions with finishing and so on and so on. I mean, if you discount these factors, the company would be even a -- or let's say, a quarter bigger or a quarter further than we are today. So -- but this is what it is. I mean there are things. I mean, everything what we can have under control, I can assure you as a Chairman, as an investor, as a full professional, this we have under control. the things which we cannot have under control. I mean it's going for itself that this is difficult to say. And if you look at the journey going forward, I mean, we have a lot of plans. We considered very well in which market we went into it. We looked since years. We looked at opportunities. We checked and balanced which market in Europe could be fitting and so on and so on. And at the end, it came the conclusion to go to United States. I mean, it's the biggest economy in the world, okay? Now I was asked by people did somebody wait for One United Properties in the United States? The answer is no. But in the way how we enter into United States, we do not think that we are more clever and better than the others. We are entering with a partnership with the strongest people on the ground, on the market, okay, which knows what we know here in Romania, they know what it's in Miami in that specific regard, okay? And that gives us a lot of confidence and gives us also the opportunity to build the brand One United Properties in United States. So we are following step-by-step with a lot of cautious but still accelerating in a way that we can excel because Europe, it's a little bit in a difficult situation. Europe will remain in a difficult situation. I can guarantee you this. With all my other businesses, I'm very involved in all different countries. And now lastly, in the last 5 months, a lot with Germany. I mean, what I see there, and I mean, it's more than scary, okay? So -- and again, these are opportunities where the windows closes, a door opens, right? We just need to be fast enough to recognize it, to analyze it and then go with cautiousness and with professionalism as we do all the time.

Thank you very much, Claudio. Thank you so much for joining us today, and I hope you also stay for the final panel with Victor and Andrei. Maybe you will type a little question in our...

Yes. I don't know if they would like that question. So no, no, no, joke by side. I think all the questions which we have among us, we already decided and discussed, yes. Thank you so much for having me and good continuation.

Thank you. Before we go to the Q&A, I would like to invite one more surprise guest, David flasberg. Very nice to meet you. Thank you so much for joining us. Here is the microphone for you. So you're such a surprise guest that we don't even have a slide for you. So I hope you'll accept our Chairman behind you.

I've been spending most of the last months in Miami. So it's actually a surprise that I'm even in Romania, although my wife and kids are in Romania.

So tell us a little bit, let's present you to our audience. So David is our managing partner in the United States. So I wanted to just 5 minutes of your time today on the stage for you to present yourself and tell us, in your own words, what is your vision for United States? What are you doing for One United Properties and with One United Properties today in the United States.

Absolutely, and nice to see everybody here on this beautiful day in Bucharest. I'm David. I've been back and forth between the U.S.A. and Romania for the past 22 years as a real estate investor. I originally came here in 2004 during the first wave and was the Co-Founder and President of Adama, which at the time was one of the most significant real estate developers in the country. We built a couple of thousand apartments. We were institutionally backed by the likes of Tiger Global and Morgan Stanley, and we were a listed company on the Tel Aviv Stock Exchange. After we sold the company to Immo East, which was a public company from Austria, I spent then the subsequent years in New York, developing real estate projects there, residential with another group. About 1,000 apartments of condos and rentals in Brooklyn, in Manhattan and in the Bronx. And yes, I've been back and forth. There was a period of time also where I was the Chairman, the Non-Executive Chairman of One United before Claudio came on and has done such an amazing job. Yes. I've known Victor and Andrei really since the beginning of getting here. I worked with them on financings when they were investment bankers when I was working in Adama. And then we remain friends throughout the year. So they visited me in the U.S. a few times when I was developing there in New York. And we have a really high level of trust between us. And so in this opportunity to join the team, and not only to join as a managing partner, but also to invest my own money in the deals, which I'm doing, it just seemed like all the stars were aligning and it was the perfect thing that I've been waiting for. So I jumped on a plane and left my family behind and like a 20-year-old rented a car and started driving around South Florida and Nashville, Tennessee and sourcing deals and putting deals together. So through that process, this vision that Claudio very openly discussed has started to come together where we're going to be doing a mix of our own developments there, land acquisitions where we will start from the beginning. But in parallel, we decided that the best way of entering the market was to partner with very strong developers and more importantly, developers who have a very good track record and reputation. Reputation not only as real estate investors, but also as human beings. And one of the things that we do in due diligence is that we bring them over here to Romania to see the operation over here because the value proposition that we bring to the market, it's not just about money. It's also about utilizing the platform here to find cost and revenue synergies in the United States. And I think that might be surprising to you that a company from Romania could even bring synergies to the United States, but it's really true. The U.S. is a really huge market. There's a lot of action there, a place like Miami. It's a massive jungle. There's tons of projects, there's tons of capital sources. But people really like the idea of a company that's internally managed in a foreign country that has a different set of experiences, a different set of suppliers and a different way of looking at real estate. So when they see that the buildings have gotten built here, they look at the costs, they look at the design elements here because marketing and value engineering and interior design and procurement are some of the specific areas where we're going to be adding value to the partners business, they're really impressed. And actually, they're letting us in their deals on the same terms as the developer from the beginning. Meaning these are really big projects that we're negotiating. So one project might be $0.5 billion to $1 billion of total capital. We're not putting in that much money. But we'll need to because there are -- in the project, there's debt sources and there's also limited partners who are like the passive investors, the big funds who invest passively and pay a premium to enter the deals. But because we have the platform, we're able to enter the deals where we're not paying the premium, we're actually receiving part of the premium. And we have a seat at the table, we have joint control and joint management responsibility. So I'm super excited about that model. I think now is exactly the right moment in the U.S. to be doing that. You hear a lot of things about the U.S. and about the world in general, it is definitely a turbulent time coming up. But U.S. is a huge place. It's not going anywhere. So all these predictions of doom and gloom, it doesn't make any sense. There's 400 million people there, and they're moving there all the time. What does happen in the U.S. is that submarkets, which once were maybe the best places like New York and California are maybe not the best places right now and all those demographics and economics and population are shifting to other places, places like Miami and places like Nashville. Miami now is getting a huge bet from one of the biggest billionaires in America, Ken Griffin from Citadel, who is creating an entire humungous campus for AI in Miami. Palantir, which we all know, it's basically the U.S. government's arm for AI and Defense has also moved its headquarters in Miami. So there's a lot of action there. There's a lot of good drivers. We believe it's a solid place for investment in one of the places in the world where the wealth that's accumulating in certain pockets wants to invest. So like if you're building a condo tower there, and you're hitting the luxury segment as we will. It's not necessarily for the common people, it's for the global investors who are looking for a place to store their wealth. And yes, that's a little bit I think I've kind of gone on and off. So maybe you have another question.

Thank you very much, David. I think we will be seeing more of you in the coming years. maybe this will become our new tradition to have David here talking about the United States market as it becomes more and more prominent. Thank you very much for joining us. And we can now move to the final part of the event. So I would like to invite -- thank you. Let's give David the round of applause. Thank you very much. Thank you. Thank you. I would like to invite for the final part of the event, Victor Capitanu, Andrei Diaconescu to join me for the fireside chat. So another one I want to say, bites the dust. We're almost done with our fourth Capital Markets Day. What did you think about the presentations I mean I don't ask Victor because Victor has been definitely overlooking all the slides. So he knows everything that was presented. I want to say some.

Okay. Go ahead. So thank you, David. I really love the your presentation, and thank you for doing short notice. So I just let you know half hour ago. So thank you for being so spontaneous and for nearing it. Thank you.

Well, I just will tell you that usually, I'm very relaxed about talking. But after having heard all these guys presenting, I'm stressed now. They were so good.

I'm happy to hear you enjoyed it. We -- every year, we try to surprise our investors with some new I don't know what we're going to do next year. Maybe -- I mean, I'm terrified who's going to be on the stage next year if we already.

So last year, we didn't know what we are going to do this year. So it's okay.

Now I have a question. So we have 5 years anniversary of our IPO that was in July. I wanted to ask you and take a little bit of a step back, and I will start with you, Andrei. At the time when One United Properties IPO-ed. Did you ever imagine -- what did you think actually, where would it be in 5 years in 2026. Did you have any plan or any specific target that was accomplished or wasn't accomplished? How do you feel about the last 5 years?

Well, to be honest here, I'm not -- I don't think I'm the guy who is best to talk about the past. Because I actually never think about the past. So that's the way I am. At the time of the listing, obviously, we had big dreams and so on. We never envisioned all the challenges we would have over the next 5 years from political, international events, wars and pandemics and so on. But what we have managed so far is to, I think, take good decisions to be consistent, to be truthful to our customers and our shareholders. and always be busy. And I think that's the values that have driven us here. Moving forward, there are other things that I will talk about that will add up to everything I just said.

And I have one follow-up for you. I think it's a -- I know you don't want to talk about or think about the past too much. But in the last 5 years, what was the single riskiest decision that you think One has taken or maybe the riskiest context that happened because let's not forget the last 5 years were extremely volatile. And how do you think about it? And did One deliver. Did it handle the situation this in a way that you would have wished it did.