FRANKFURT, March 25 (Reuters) - German property group Deutsche Wohnen is cutting its 2019 dividend to 0.90 euros ($0.97) a share to cope with the coronavirus pandemic, it said on Wednesday as it reported an 11% rise in operating full-year earnings.
“The (dividend) adjustment is used to finance a 30 million relief fund in order to be able to provide Deutsche Wohnen’s tenants with quick and unbureaucratic financial help in the event of hardship in the context of the current Corona crisis,” the company said in its annual report.
The cut means that the payout ratio will be 5 percentage points lower than previously planned at 60%.
Deutsche Wohnen expects its funds from operations I, a key earnings metric, to reach about 540 million euros in 2020, roughly matching the 2019 level of 538 million. ($1 = 0.9244 euros) (Reporting by Arno Schuetze Editing by Edward Taylor)