On September 20th, 2021, shares of One United Properties (BVB: ONE), one of the leading green developers of residential, mixed-use and office real estate in Romania, entered the Bucharest Exchange Trading (BET) index. BET index follows the evolution of most liquid companies listed on the Bucharest Stock Exchange (BVB), and as of September 20th, it includes 19 blue chip companies. The weight of One United Properties shares in the BET index is currently 1.68%.
“We are honored that ONE shares are included in multiple indices of the Bucharest Stock Exchange, including the most important index of the Romanian capital market – BET. This means that today, a little over two months since our debut on the Bucharest Stock Exchange, One United Properties gained the much sought-after blue chip status. Our next target is the inclusion of ONE shares in the FTSE Russell index. We want to contribute to developing the local capital market by increasing the participation and visibility of the Romanian entrepreneurial companies in the global emerging market indices,” said Victor Capitanu, co-founder of One United Properties.
The inclusion of One United Properties shares in BET brings diversification to investors since it exposes them to one of the most important and dynamic sectors of the economy – real estate. Sectorial diversification is crucial for indices since it offers better risk-adjusted performance. Moreover, with the inclusion of ONE shares in BET, the number of Romanian entrepreneurial companies in the index increased, reaching eight issuers, having a combined weight of 32.47%. Apart from Banca Transilvania, which has the maximum weight of 19.99%, the rest of the local entrepreneurial companies have weight in BET ranging from 3.06% to 0.42%.
BET is the first and the most reputable index developed by BVB and represents the reference index for the local capital market. BET reflects the performance of the most traded companies on BVB’s Main Market, excluding financial investment companies. It is a free-float market capitalization-weighted index, with the maximum weight of its components of 20%. The main selection criterion is liquidity. As of 2015, further criteria related to issuers’ transparency and quality of reporting and their communication with investors are also used for screening. Companies included in the BET index are considered blue chips, meaning nationally recognized, well-established, and financially sound companies.
ONE shares were also added in the composition of BET-TR, the total return index that follows the BET structure, but it additionally reflects the dividends paid by constituent companies. The weight of the companies included in the BET-TR index is the same as for companies featured in BET. Shares of One United Properties were also included in BET-BK with a 2.97% weight. BET-BK was designed to be used as a benchmark by asset managers and other institutional investors. The calculation methodology reflects on legal requirements and investment limits applying to investment funds. ONE shares were also added in the BET-XT, BET-XT-TR and BET Plus indices.
One United Properties is listed on the Main Market of the Bucharest Stock Exchange. The company’s shares floated on BVB on July 12th, 2021, following a successful IPO, during which the company raised 260 million lei for further developments in both the residential and office segments. In the first six months of 2021, One United Properties registered a record turnover of 434 million, a 96% increase compared to the same period of 2020 and a net profit of 147.5 million lei, a 267% surge.
In the General Meeting of Shareholders held on September 10th, 2021, the shareholders of One United Properties approved the payment of a dividend in the amount of 32.5 million lei, or approximately 0.02273 lei per share, which will be paid on October 11th, 2021, to the shareholders who hold ONE shares at the registration date of September 28th, 2021.
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