HAMBURG (dpa-AFX) - TAG Immobilien is again not planning to pay a dividend for the current financial year. Instead, the liquidity remaining in the company will be used to strengthen its capital base, the company announced surprisingly on Monday evening in Hamburg. It will also be used to finance new projects in Poland, both in the sales and rental business. Not distributing a profit to shareholders also ensures greater independence in view of the uncertain market situation, even if no major maturities are due in 2024. The share price slipped by almost five percent compared to the Xetra closing price.

As soon as the capital and transaction markets have returned to normal, TAG intends to resume dividend payments. A decision on a proposal for the 2024 financial year will not be made until the end of next year at the earliest and will depend on the market conditions prevailing at that time. TAG had already decided not to pay a dividend for 2022 in order to keep the money together in the phase of rising market interest rates.

Meanwhile, with preliminary figures for the first nine months, the company believes it is on track for its annual targets and has also provided an initial outlook for the coming year. The operating result FFO I (funds from operations) fell by almost nine percent to EUR 132.6 million in the first nine months. For the year as a whole, the management is still targeting EUR 170 to 174 million - and has also set this range for the coming year.

In Germany, the Group sold around 1,300 apartments in the first nine months, and around 2,900 in Poland. "In a challenging market environment in Germany, we continued our residential sales in the third quarter of 2023 and have now achieved the target we set in July 2022 of generating at least EUR 250 million in net cash inflows from this point onwards," said Co-CEO Claudia Hoyer.

Despite rising rents, TAG Immobilien posted a consolidated net loss of almost EUR 275 million in the first nine months. In the same period of the previous year, it had posted a profit of just under 335 million euros. The revaluation of real estate in an environment of rising interest rates is also weighing on other groups in the sector. At the end of the year, the next round will take place at TAG Immobilien./men/lew/he