| FRANKFURT, June 13
FRANKFURT, June 13 Deutsche Annington, which is
planning a flotation worth over 1 billion euros ($1.33 billion),
aims to pay out a higher proportion of its earnings as a
dividend than its peers, according to a report from Morgan
The management of the German residential real estate company
plans to pay out 70 percent of its recurring earnings as a
dividend from the 2014 business year onwards, Morgan Stanley
analyst Bart Gysens said in the report, dated June 10.
Morgan Stanley and JP Morgan are managing the
A spokeswoman for Deutsche Annington, which with 180,000
flats is Germany's largest residential real estate firm,
declined to comment on the report, saying that the company would
release information on the payout ratio at a later stage.
The payout would represent a higher proportion of earnings
than that handed to investors by its other listed peers.
LEG, which went public earlier this year, and GSW
Immobilien aim to hand out 65 percent of "Funds from
Operations 1", while Deutsche Wohnen has a strategy to
pay out 50 percent.
Funds from operations is net income including depreciation
and amortization but excluding profits from divestments and is
considered the operating income of real estate companies.
Deutsche Annington's payout ratio for 2013 will be in line
with its listed dividend-paying peers, before rising from 2014,
The company said on June 10 it will float about a quarter of
the stock held by private equity owner Terra Firma,
and issue new shares worth 400 million euros, the proceeds of
which it will use to cut debt.
The fact that Terra Firma will likely remain a key
shareholder in the medium term could mean that Deutsche
Annington shares trade at a discount to peers, the Morgan
Stanley analyst said.
LEG Immobilien was the first German property company to
list its shares this year, raising 1.3 billion euros in January.