The only two German real estate financiers listed on the stock exchange are planning a dividend supplement for the fall.

Aareal Bank announced this on Thursday when the Wiesbaden institute published the final figures for the second quarter.

The bank had to report on this in advance on August 3, because a special charge depressed profit.

Nevertheless, at 33 million euros, the group result was twice as high as in the same quarter of the previous year.

Despite high risk provisions, the management board expects the operating result for the current year to be in the range of 100 to 175 million euros after a loss of 75 million euros in the previous year.

Markus Frühauf

Editor in business.

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The confidence is also reflected in the fact that the shareholders are to resolve a further dividend of EUR 1.10 per share for the 2020 financial year at an extraordinary general meeting in the fourth quarter.

The reason for this is the decision of the banking supervisors of the European Central Bank (ECB) to lift the restrictions on dividend payments as of September 30th.

Initially, Aareal Bank paid a dividend of just 0.40 euros per share for 2020.

The ECB had only approved a limited amount of distributions to the banks.

Now these restrictions are also removed.

The Pfandbriefbank (pbb) had already exhausted the limit in the spring with the distribution of 0.26 euros per share, which corresponds to 36 percent of the profit after tax attributable to ordinary shareholders.

Now the institute, which emerged from the healthy remains of Hypo Real Estate (HRE), which was collected by the state, is planning another dividend payment for the 2020 financial year. The dividend supplement is likely to be as high as the distribution in spring.

The pbb board of directors basically wants to distribute 50 percent of the net profit as a regular dividend and 25 percent as a special dividend.

Positive balance with pbb

As a pbb shareholder, the federal government will probably no longer benefit from this. As the finance agency subordinate to the Federal Ministry of Finance announced on Thursday, the remaining block of shares of 3.5 percent is to be sold on the stock exchange in a market-friendly manner. When the Munich-based real estate financier went public in 2015, the German state had already sold 80 percent of its shares. Another 16.5 percent were sold in 2018. "The revenues generated for the FMS from the 2015 and 2018 transactions already exceed the funds supplied to pbb, so that a positive balance can be drawn for pbb," explained the finance agency.

FMS Wertmanagement is the state settlement bank of HRE.

With the two previous share sales, it received 2.5 billion euros, while 2.3 billion euros flowed into pbb as a capital injection.

Overall, the HRE imbalance is a loss for taxpayers.

A capital measure of 7.6 billion euros is still on fire.

Losses of the HRE-Bad-Bank FMS had to be compensated for in the amount of 9.3 billion euros, of which 8.9 billion euros for Greek government bonds alone.

With a price gain of 9.1 percent, Aareal Bank shares are ahead of pbb with 8.2 percent this year.

On Thursday, the Aareal share price fell by 1.9 percent, while the pbb stock held at 9.51 euros.