One United’s shareholders approved a proposed consolidation of shares at a ratio of 50 to 1 at the October 10 meeting, a move designed to reduce the number of shares in circulation, thereby decreasing share price volatility. The nominal value of each share will increase from RON 0.2 to RON 10 per share, with no impact on the overall market capitalization of the company. 

Other greenlighted measures include approving the audited financial statements for the first six months of 2024, the payment of the first tranche of the 2024 dividend, a new RON 20 million share buyback program, and the ratification of various credit facilities for ongoing developments. All points on the order were approved, and most passed with over 99%, with a 79% quorum.

“The share consolidation marks the closing of a pivotal chapter in our journey as a publicly listed company. Since our IPO three years ago, we have tripled our turnover, raised EUR 170 million in capital, and positioned the company as a leading player in the Romanian real estate market. A share price of RON 10 reflects our DNA and where we are today in terms of where we are as a company,” said Claudio Cisullo, Chairman of the Board of Directors at One United Properties.

The dividend payment amounts to EUR 7.7 million, approximately EUR 0,002 per share, to be paid on November 11, 2024, to shareholders holding ONE shares as of the registration date of October 30, 2024. Moreover, the company plans to increase its dividends next year, despite ongoing projects. “Today, our dividend yield is 3.29%, which is not bad, but we want to increase it. If you ask now how much, we do not know yet. We will discuss this in the board of directors,” said Claudio Cisullo. 

According to him, the share price today does not reflect the fair market value of the company, but that is true of numerous other companies around the world. On the other hand, the health of the company is good, and its growth is remarkable, Claudio Cisullo says. “If you look at our loan-to-value ratio, our debt is at 30%. This is very solid. I don’t know one developer of a similar size in all Europe which is below 50%. Normally they are at 50-60%. If you look at the growth, cash position, LTV, I think these is what counts. This is not reflected in the share price,” Claudio Cisullo said. 

One United now has over 12,000 shareholders, with about 3,000 new ones this year alone. On the other side, after the recent EUR 68 million capital increase a few shareholders decided to unload their shares on the stock market, driving the price down, according to company co-founder Victor Căpitanu.

Around 3.5% of One United Properties shares are owned by local pension funds at the moment.

radu@romania-insider.com

(Photo source: One United Properties on Facebook)