Romanian developer ONE United seeks 20% capital increase, maybe bond issue

Romanian real estate developer One United Properties (BVB: ONE), with a market capitalization of RON 3.7 billion (EUR 740 million), will require shareholders’ permit for a 20% cash capital increase and for a EUR 300 million bond issue to be launched if/when the market circumstances will deem such a move appropriate.

“We seek your approval to remove the preference rights for a share capital increase of up to 20% of the current share capital. [...] Even though we could have proposed delegating to the Board of Directors the prerogative to increase the share capital by up to 50% of the current value of the share capital, we proposed that the value of the authorized capital be limited to 20%, as this is what we believe is necessary over the next 3 years,” the company’s general shareholder meeting notice reads.

The shareholders, summoned on April 25, will also be required to endorse the disbursement of RON 38 million as dividends, according to Ziarul Financiar. This would result in a yield of just over 1%.

The company highlights, however, the capital increase delivered to shareholders. ONE shares have outperformed broader European real estate peers by approximately 60% since the company’s IPO in 2021, the company argues.

Specifically, since the IPO in mid-2021, ONE shares have generated a total return of 27% in EUR terms. Over the same period, pressured by the higher cost of capital, the EPRA index, a benchmark for listed real estate companies in developed Europe, has lost 37%.

(Photo source: the company)