Auszug aus der bereits erwähnten Präsentation
"Both Management and Supervisory Board consider the 2022 dividend cut to be an exception "
FY2022 Dividend
€0.85 per Share Incl. Scrip Option to be Proposed to the AGM
In addressing the consequences of the Russian war on Ukraine, central banks around the world have been increasing interest rates at an
unprecedented speed.
The drawback of Vonovia’s stable business model in a regulated market is that it reacts only slowly to the new environment, and the initial impact on
KPIs is negative.
However, the new environment also accelerates the relevant megatrends around which we have built our business, especially the supply/demand
imbalance in urban areas and the need to fight climate change. This will lead to even stronger fundamentals in the medium- and long-term.
As dividend continuity is a key priority for Vonovia, offering an adequate dividend remains an important objective in light of a significant part of our
shareholder base who counts on dividends as a form of shareholder returns.
However, in the current environment, capital discipline is also critical. The decision on the dividend is not black or white, and it is therefore prudent to
adjust the payout ratio for the FY2022 dividend and strike an appropriate balance between capital discipline and returns to shareholders.
In Germany, it is for the annual general meeting and for our shareholders to decide but we believe our proposal of €0.85 per share incl. a scrip option
strikes such an appropriate balance. And from a cash point of view, we estimate the expected cash out to be around €350 million given the scrip
component. No matter how cautious one is about the strength of our balance sheet – this amount cannot be the make-or-break difference.
Our decision underlines our responsiveness to what shareholders expect regardless of our firm conviction with respect to the medium- and long-term
robustness of our business model.
So by proposing a cut to the 2022 dividend we show that we take capital discipline serious in this regard as well. But not paying any dividend for last
year is too extreme. It would be unnecessary and send the wrong message about the stability of our business and may further increase our cost of
equity.
Both Management and Supervisory Board consider the 2022 dividend cut to be an exception and remain fully convinced of Vonovia's stability. Both
boards explicitly confirm the general and unchanged dividend policy of paying out ca. 70% of Group FFO after minorities. This policy makes sure that
retained earnings plus the proceeds from Recurring Sales provide sufficient funds to sustain the investments for our climate path."
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