LEG Immobilien cancels the dividend for its shareholders

Dusseldorf It was news that tore the entire industry down with it. The dividend freeze announced by the second largest German housing group LEG Immobilien not only caused its own share price to collapse by more than 13 percent on Thursday. Investors also expressed concern about how the competition will react in the aftermath.

This became visible in the course of the share prices: Europe’s largest landlord Vonovia went down more than five percent, TAG Immobilien, which had already canceled the dividend in autumn, lost more than six percent.

LEG announced on Wednesday evening before the presentation of the annual figures that the group surprisingly did not want to pay its shareholders any dividends for the past year. In view of the high interest rates and the ongoing uncertainty about the valuation of the real estate portfolio, the funds should be used to strengthen the balance sheet instead of paying a dividend, the MDax group justified.