Today, we are bringing you something different: a case study looking at how different moves by a Company in regard to its capital (capital increase/decrease, share buybacks) can impact its long-term value, on the example of the Romanian Company One United Properties.

In today’s analysis, we take a look at One United Properties, the largest listed real estate and construction Company on the Bucharest Stock Exchange. It should be noted that in general, the real estate sector is quite volatile, both due to its dependence on the economic environment in the country and also due to customers’ sentiment. Furthermore, companies such as ONE use a different accounting model, one which recognizes revenue and costs based on the percentage of construction of their developments (bear in mind this only relates to the residential segment, which is aimed at the sale of real estate, and not the rental part, which uses more standard accounting approaches).

Due to this, real estate companies’ results tend to be volatile; in some quarters, strong “growth” can be recorded, while other quarters record reductions/losses. Again, this is due to the nature of the business, and especially the revenue recognition model described above. Having that in mind, let’s look at some Company’s financials first:

One United Properties key financials (H1 2025 vs. H1 2024, RONm)

Source: One United Properties, InterCapital Research

During H1 2025, the residential segment remained the biggest revenue generator, accounting for 79% of the total revenue during H1. The segment recorded a 23% growth YoY to RON 642m, driven by high delivery volumes across One Lake Club, One High District, and One Floreasca Vista, increased pre-sales, higher average selling prices, as ONE is positioning in the luxury and upper-premium market, and the launch of new developments, incl. One Controceni Towers and One Peninsula, which were just starting to contribute to revenue and should contribute more significantly in H2. Rental income also grew by 7% YoY to RON 80m, due to higher occupancy rates, especially in One Tower and One Cotroceni Park Office, and higher rents, which grew by 5-8% YoY during the period, also supported by the hospitality segment’s contribution.

EBITDA also grew by 15% YoY to RON 336m, supported by a reduction in admin. expenses, while the net income to majority amounted to RON 242m, growing by 11% YoY. With this understanding, we can also take a look at the corporate actions ONE undertook in the last couple of years to see how they supported the growth recorded, and how they might support it in the future.

Here’s a review in chronological order, starting in 2023:

• During May 2023, ONE executed a share capital increase to fulfil its Stock Option Plan (SOP) for executives, by issuing app. 94.8m new share, with a nominal value of RON 0.2 each, increasing the overall share capital by RON 18.9m to RON 759.5m.
  
• During September to October 2023, ONE launched a share buyback, and through this, they managed to repurchase 3.6m shares, or 0.09% of the total share count, and these shares were held as treasury shares.

• In April 2024, ONE did another share capital increase for the SOP, in the amount of RON 6.2m, by issuing app. 31.2m new shares, growing the share capital by RON 6.24m to RON 765.7m.

•  In May 2024, during the GSM, the shareholders approved a large capital increase with cash contributions, targeting EUR 70m in new equity, as part of ONE’s 2030 growth strategy. This increase was aimed at issuing 1.75bn new shares (46% increase compared to the outstanding amount at the time), at a nominal value of RON 0.2. Existing shareholders were granted preference rights to subscribe to new shares pro rata (2.1879186 rights required per new share to achieve this), with the two co-founders and other major shareholders committing to take up to 60% of the new shares. If you want to read this in detail, click here.
  
• During August to October 2024, this was carried out, with 97% of the offered shares being subscribed, effectively raising RON 340.1m (app. EUR 68-70m) in new capital, thus increasing the overall share capital to RON 1.1bn. Due to this, the total share count rose to 5.53bn.

• Following this, ONE’s shareholders also voted and approved the consolidation of the Company’s shares at a 50:1 ratio, thus leading to the nominal value of each share growing from RON 0.2 per share to RON 10 per share. This was carried out in December, leading to the total number of shares dropping from 5.529bn to 110,583,102 new shares, while leaving the share capital approximately the same.
  
• Besides this, ONE launched a 2^nd SBB program in April 2024, and by September 2024, they bought back a significant number of shares, with another buyback initiated in December 2024, and ONE continues to buy back shares during 2025.
  
• In April 2025, ONE also approved a capital decrease to cancel a portion of shares, most notably, the remaining fractional shares resulting from the 50:1 consolidation. Following this, 83.1k shares were cancelled, reducing the share capital by 0.075%.

• In the latest move, in September 2025, ONE’s BoD announced the intention to launch a new Public Tender Offer program, with the aim of repurchasing and cancelling up to 20% of the Company’s shares. The plan aims to acquire app. 22m shares, representing 20% of the share capital, at a price of between RON 25 and RON 40 per share, for a potential total spending of RON 884m (EUR 175m). All repurchased shares will be cancelled after the tender, thus decreasing the share count and increasing the remaining shareholders’ stakes proportionally. Furthermore, the Company’s co-founders and insiders committed not to participate in this move. While this is still up for approval by the Romanian Financial Services Agency (FSA), if approved, a significant return could be given to investors, as either they will sell shares at a premium (share price before the announcement hovered at app. RON 24/share), or as the buyback goes underway, their own shareholding’s value will increase.

One United Properties, BET index price performance (2023 – 2025 YTD, %)

Source: Bloomberg, InterCapital Research

During this entire period, ONE’s share price recorded a rollercoaster ride; compared to the beginning of 2023, when the share price stood at app. RON 32.54 per share, the share price initially recorded growth but afterwards declined to around RON 20 per share. The main reason for this is more tied to macro and geopolitical considerations; inflation in Romania has remained elevated during the entire period, due to the heavy money printing during and after COVID-19 (directly by the National Bank of Romania, but also indirectly by the ECB as Romania trades the most with the EU), supply chain disruptions, and energy price growth following the start of the war in Ukraine. Furthermore, Romania’s proximity to the conflict has also added a dose of uncertainty. Loan growth, instrumental for the real estate development, continued but slowed down as the interest rates remained high. Furthermore, the political tensions and instability are also not conducive to business. When we throw all this on top of a cyclical sector such as real estate, it doesn’t take much to conclude why the share price danced the way it did.

However, recent moves do point to a strong revival; while the share price is app. 11% below its 2023 starting value, when we look at the YTD 2025 data, the increase is 35% in the share’s value. If Romania can do the necessary political and financial reforms, and if the war in Ukraine stops, the situation in the country could improve markedly, leading to lower inflation levels and thus lower interest rates, which could spur more growth in the real estate sector. Combined with the fact that ONE aims at luxury and more premium segments, which aren’t as affected by price growth as the more price-sensitive medium range segments. All in all, there are many outside factors that could affect the Company and its share price, but the moves made by the Management would not only allow room for more growth in the future, but would return a lot of that growth to investors, especially if the latest tender offer is accepted and conducted.