Romanian property company Impact Developer & Contractor said its net profit amounted to 39.9 million lei (around €7 million) in 2023, down by more than 59% versus 2022 over lower revenue from residential sales.
The company’s consolidated turnover amounted to 169.4 million lei (close to €34 million), down by around 23% compared to 2022.
Impact Developer & Contractor said it recorded delays in the reception of 732 new apartments in the Greenfield Băneasa project, which generated a lower housing stock compared to 2022.
Last year, the developer sold 157 homes, while another 377 homes were in the pre-sold and reserved stock.
“The low volume of mortgage loans, as a result of the major increase in interest rates, together with the postponement of the approval procedures for the reception of new apartments in Greenfield Băneasa, had a significant impact on the company's revenues, which are recorded only after receiving the amounts from the sale-purchase contracts,” said Constantin Sebeșanu, CEO of Impact Developer & Contractor.
At the end of 2023, Impact Developer & Contractor had construction permits for 2,693 units in Bucharest, Iași and Constanța, with an estimated market value of 1.9 billion RON (€382 million). Of these, 982 homes are in various stages of construction.
In the retail segment, the company said its first shopping centre Greenfield Plaza reached an occupancy rate of 90% last year.
Shares in Impact Developer & Contractor were down 0.86% to 0.23 lei on Friday morning trading on the Bucharest Stock Exchange.
