FRANKFURT (dpa-AFX) - Better annual figures than feared and a surprisingly high dividend proposal gave LEG Immobilien shares a further boost on Monday. After the shares of the real estate company broke through the resistance lines for the short and medium-term trend last week, driven by ECB comments on inflation, they have now risen further. Around midday, LEG in the MDax rose by 3.6 percent to EUR 74.82.

In addition, Vonovia rose by 1.2 percent in the Dax, Patrizia by 1.8 percent in the SDax and Grand City Properties by 2.3 percent. The real estate sector was also generally the sector favorite in Europe, as the prospect of faster than expected falling inflation in the eurozone continues to drive the sector.

On Thursday, the European Central Bank (ECB) underpinned these hopes and brightened the buying mood. Nevertheless, the sector is still one of the laggards in the year to date with a current drop of just under 6%. In the same period, only the energy utilities sector and commodities and mining stocks have performed weaker.

Analyst Neil Green from the US bank JPMorgan described LEG Immobilien's key figures as "robust", particularly the key earnings indicator AFFO, i.e. cash flow from operating activities adjusted for capitalized investments. This key figure exceeded both his and the average analysts' expectations (consensus), while the growth in rental income was at the upper end of his forecast, Green wrote.

There was also relief that the forecasts for 2024, which LEG had already announced with the nine-month figures, were confirmed. "Overall, the company is quite optimistic for the current financial year," summarized Berenberg analyst Kai Klose and, like his colleague Charles Boissier from UBS, cited the management's statement that "the peak of the real estate crisis has already passed for LEG". In addition, Klose emphasized that the Group expects the valuation levels of the portfolio to gradually stabilize over the course of the year.

Analysts, traders and market participants also reacted positively to the resumption of dividend payments. "Following the suspension last year, the proposed dividend per share is EUR 2.45, which is in line with our expectations," summarized Andre Remke from Baader Bank. "In view of the high level of uncertainty with a consensus between zero and 2.47 euros, we see this as a positive surprise."/ck/ag/mis