Standard One’s investment vehicle, S1 REIT, has paid out its first million in dividends, according to the fund’s press service.
It is specified that the total amount of dividends received by investors of the S1 VDNG fund for the period from April to December 2025 reached almost 1.026 million, which after taxes amounted to UAH 914.8 thousand.
“The example of S1 REIT proves that the residential rental sector in Kyiv is very profitable. High profitability is maintained even in conditions of transparent operation, without the use of ”gray” schemes to optimize tax pressure. Thanks to our work, we not only ensured timely dividend payments to investors, but also replenished the state budget by more than UAH 71 thousand and paid almost UAH 40 thousand in military tax,” said Viktor Boichuk, commercial director of S1 REIT, whose words are quoted in the report.
Starting in September 2025, dividends will be paid to investors in the S1 VDNG fund on a monthly basis. The amount of accruals depends on the fund’s performance over the previous period. The indicators are based on actual rental income from the real estate owned by the fund and reflect the stable performance of the asset in market conditions. Thus, according to the results of November, the annualized return for investors reached 9.1% in dollar terms, which is higher than the planned return of 8.2% in currency.
As reported, in April this year, Kyiv-based developer Standard One, which specializes in Build-to-Rent projects, announced the launch of a new product – S1 REIT. This is an investment tool that allows you to become a co-owner of square meters in S1’s profitable buildings without having to personally manage the assets. Currently, S1 REIT has two open-ended funds: S1 VDNG and S1 Obolon. The assets of the S1 VDNG fund are apartments in the profitable S1 VDNG building in Kyiv. The building has been in operation since 2019. According to estimates by the developer Standard One, the occupancy rate of the property by tenants reaches 99%.
Standard One (S1) is a full-cycle development company that has been developing the build-to-rent real estate segment in Kyiv since 2016. Its portfolio includes the completed S1 VDNG project and the new S1 Obolon, S1 Terminal, S1 Nyvky, and S1 Poznyaki buildings.
Kyiv retains its status as the most stable location for the development of investment rental projects in Ukraine, according to Alexander Ovcharenko, co-owner of Standard One.
In recent years, domestic investors have focused their attention on the income-generating real estate market, which is rapidly becoming more professional. Various categories of income-generating real estate are offered, from residential properties in Kyiv to resort formats in the Carpathians and Bali. Ovcharenko is confident in the advantages of the capital’s build-to-rent projects (buildings that are created and managed for long-term rental).
“Standard One was the first company to launch a full-fledged residential income property project on the Ukrainian market. When we built our first build-to-rent property, we proved 100% that it can work effectively in our market,“ he emphasized during the discussion ”Income-generating real estate: strategies of leaders“ at the ”Invest Forum: Real Estate,” which took place on November 27 in Kyiv.
According to him, the S1 VDNG project demonstrated a 10% annual return on rent and 48% capitalization during construction. This result, which attracts investors to the company’s subsequent projects, was achieved through a series of measures. A proprietary company was created to manage income-generating real estate, an online platform for leasing was developed, and service standards were developed so that investors receive predictable income and tenants receive comfort and security.
“Our operating company, S1 Property, completely relieves both tenants and investors of all their worries. We have developed our own 24/7 hotel-type service standards,” says Ovcharenko.
The expert noted that quality management is a critical component of a successful business model. That is why Standard One invests in engineering, reliable materials, standardized service, and security, because it is the developer, as the owner of this property, who will have to operate the building and repair it if necessary.
According to its business model, Standard One operates exclusively in the capital and focuses on construction in the most attractive locations for tenants in Kyiv: near the metro, with developed infrastructure and recreational areas. The company offers hotel-level service, convenient property management, ergonomic apartments, energy independence, and security. This creates long-term demand and high occupancy rates. But in general, the demand for rental housing in the capital has not decreased and continues to show steady growth.
“Today, we have almost zero vacancy, with 99% occupancy. And our format does not involve seasonality: people need to live in autumn, summer, and winter,” he says.
One of the key market trends is REIT (Real Estate Investment Trust). “Thanks to REIT, you can invest in income-generating residential real estate without buying an apartment. For 122,000 hryvnia, you can get the same return as the owner of an entire apartment. And it will bring a stable income. This is not a hypothesis, it is a fact. The results of our S1 REIT are better than we expected. Today, it is 8.4% in currency,” said Ovcharenko.
As for development plans, the network of income-generating buildings is currently being expanded, with three new projects in the implementation stage. S1 Obolon and S1 Poznyaki will operate according to the standard build-to-rent model, while S1 Terminal will have serviced apartments for short-stay/mid-stay needs (short-term and medium-term rentals). In addition, the company plans to launch a REIT in the future, in which the fund will own an entire building.
Standard One (S1) is a full-cycle development company that has been developing the income-generating (build-to-rent) real estate segment in Kyiv since 2016. Its portfolio includes the completed S1 VDNG project and the new S1 Obolon, S1 Terminal, S1 Nyvky, and S1 Poznyaki buildings.
Developer Standard One has announced the launch of a new investment and residential project in Kyiv, an apartment building on the left bank of the Dnipro River called S1 Poznyaki, with 756 apartments, according to the company’s press service.
“S1 Poznyaki is our new and largest project to date. We are expanding our network of apartment buildings and entering a new scale in Kyiv,” said Standard One Commercial Director Nadiya Rybakova, whose words are quoted in the press release.
She noted that the project is based on the build-to-rent model, which has been operating for many years in the first building of the network, S1 VDNG. The building is designed with a focus on liquidity. Most of the apartments are compact studios, which are in high demand on the rental market.
The projected profitability of the project is 8-12% per annum in dollars, and the capitalization potential during the 2-3 years of construction is up to 40% in currency.
The S1 Poznyaki complex is located in the Poznyaki microdistrict of the Darnytskyi district of Kyiv. The building has 24 floors: the first two floors will have 7,000 square meters of commercial space, and floors 3 to 24 will have 756 apartments for rent. About 80% of the apartments are one-room apartments, mainly studios with an area of 35 square meters.
The apartments are being built with white box renovations and will be ready for furnishing and rental after the keys are handed over. All operational obligations are assumed by the internal income property management company S1 Property, such as cleaning, repairs, installation of equipment, search for tenants, signing of contracts, monitoring of the condition of the apartments, and administration. Everything works through a single service.
The building will have a generator to provide electricity if necessary and its own roof boiler room to provide water and heat. During a blackout, in particular, the building will remain completely autonomous for two days. Guest parking for 360 cars is provided. The complex is equipped with a shelter and an access control and video surveillance system, as well as physical security.
The nearest metro station, Poznyaki, is a 2-3 minute walk away, and nearby is Lake Sribny Kol with walking areas, a park, a promenade, and sports grounds. Within a few minutes’ radius are schools, kindergartens, supermarkets, cafes, and all the necessary infrastructure for a comfortable life.
The lobby, with an area of about 500 square meters, features a coworking space, lounge areas, and its own cinema space. Several community spaces have been created, and there is a gym, as well as spaces for fitness, Pilates, yoga, and TRX. A laundry room is available for everyday needs.
Commercial premises are allocated for a supermarket, coffee shop, pizzeria, pharmacy, dental clinic, and office space.
Standard One (S1) is a full-cycle development company that has been developing the build-to-rent real estate segment in Kyiv since 2016. Its portfolio includes the completed S1 VDNG project and the new S1 Obolon, S1 Terminal, S1 Nyvky, and S1 Poznyaki buildings.
During his speech at LUN Conference 2025, Oleksandr Ovcharenko, co-owner of Standard One, shared his vision of the development of the Ukrainian real estate market.
According to him, the number of projects will continue to decline, and developers should focus on creating products that provide predictable cash flow and build investor confidence.
“We will see a return of buyer and investor confidence. However, investors are becoming more demanding, looking for a balance between price, area, quality, product readiness and, above all, predictable profitability and payback,” said Ovcharenko.
He emphasized that the winner is not the developer who sells cheaply, but the one who transparently explains and communicates the value for which the investor should pay. After all, prices will continue to rise due to high production costs. Today, there is a certain imbalance in the market: when the cost of production is growing faster than the selling price. This forces many developers to temporarily suspend the launch of new projects and wait for better conditions.
Despite the difficult situation, the co-owner of Standard One sees the prospect of a gradual return of mass and institutional investors to the market.
“If a product that combines capitalization with a rental approach and is able to provide a stable cash flow is launched on the market, it attracts a lot of interest from investors. That is why Standard One was the first in Ukraine to research and implement projects in the build-to-rent format,” said Oleksandr Ovcharenko.
A separate topic for discussion was construction financing. According to Oleksandr, cross-financing is the first step to bankruptcy, so Standard One has abandoned this approach. The project uses its own financing system, in particular through installment programs, as buyers increasingly expect flexible and loyal terms.
This year, Standard One launched a new product on the market – S1 REIT. This is a proprietary investment instrument that diversifies sales sources by raising funds through collective investment institutions. It gives investors the opportunity to invest profitably in a liquid product or, having accumulated a certain number of certificates, to exchange them for an apartment. This expands investment opportunities for different categories of investors.
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Standard One (S1) is a full-cycle development company that has been developing the build-to-rent segment in Kyiv since 2016. The portfolio includes the completed S1 VDNH project and new buildings S1 Obolon, S1 Terminal, S1 Nyvky.
The build-to-rent segment is gaining momentum in Ukraine, with developer Standard One’s projects maintaining zero vacancy rates and average returns of around 20% per annum in dollars, despite the difficult conditions of the war, the company’s press service reported.
“We are creating a proven financial model that allows our investors to receive stable and predictable income. We build all properties according to the same concept. Investors follow us from project to project because they see real returns,” said Standard One co-owner Alexander Ovcharenko in the podcast “Real Estate Code.”
According to him, thanks to rising real estate prices and rental income, the average return on Standard One projects is currently around 20% per annum in dollars, taking into account capitalization.
He said that before building in Kyiv, the company studied the experience of the US, Austrian, and Polish markets in creating and managing buildings with well-thought-out infrastructure and services.
“When we studied their approach, we set up a mini-laboratory in Kyiv upon our return. It was a kind of ‘test’ apartment in full size. We filled it with furniture and appliances and arranged everything so that future residents would have comfortable housing ready for them. I think we succeeded. Currently, we provide a stable income for investors and offer residents a high level of comfort. The company’s portfolio of properties is growing,” says Ovcharenko.
Standard One’s first build-to-rent project was S1 VDNG, completed in 2019 near the Vystavkovyi Tsentr metro station in Kyiv. All 660 apartments were handed over to investors fully renovated and furnished. The specially created management company S1 Property took over the operational processes: finding tenants, legal support, and 24/7 service for residents. Currently, the occupancy rate in the complex is 99%, and it takes only a few days to find a tenant.
Focusing on residents’ requests, Standard One creates large co-working lobbies, develops service infrastructure near the buildings, and implements innovative engineering solutions in the buildings themselves. For example, one of the company’s new projects will install geothermal heat pumps, which will significantly reduce heating costs and make the building self-sufficient.
According to Ovcharenko, Standard One is reviving the tradition of Kyiv’s apartment buildings, which at the beginning of the 20th century provided the city with quality housing and a stable income for investors. “We combine historical heritage with international practices and modern technologies,” emphasizes Alexander Ovcharenko.
Standard One (S1) is a full-cycle development company that has been developing the build-to-rent real estate segment in Kyiv since 2016. Its portfolio includes the completed S1 VDNG project and the new S1 Obolon, S1 Terminal, and S1 Nyvky buildings.
The share of investors who repeatedly buy S1 REIT fund certificates from the developer Standard One has grown to 43% in the five months since the funds began operating, according to the project’s press service.
“We have provided investors with the opportunity to increase their profits by increasing their own share. The minimum additional investment is equal to the cost of one certificate, which is just over UAH 1,000. But despite our expectations, the average amount of repeat sales is significantly higher, at almost UAH 90,000,” said Viktor Boichuk, commercial director of S1 REIT, in a press release.
He noted that currently, the vast majority of investors are people with investment experience who already have a certain portfolio of assets.
“For them, S1 REIT is an opportunity to diversify their asset portfolio with a relatively small check. In the first weeks of our work, investors went through a ”getting to know you” phase, studying us and our offer. Now we see their confidence growing,” Boichuk added.
He added that the project plans to scale up by reaching a new audience—Ukrainians who have not yet had experience in investment activities due to a lack of knowledge or significant start-up capital.
“The key advantage of S1 REIT is its accessibility. The entry threshold is the equivalent of $3,000, which is significantly less than the initial investment in the Kiev real estate market,” said the top manager.
As reported, in April this year, Kiev-based developer Standard One, which specializes in Build-to-Rent projects, announced the launch of a new product, S1 REIT. This is an investment tool that allows you to become a co-owner of square meters in profitable S1 buildings without having to personally manage the assets. Currently, S1 REIT has two open funds: S1 VDNH, with a planned yield of 8.2% per annum in US dollars, and S1 Obolon, with a yield of up to 10% per annum.
