Immofinanz Sinks After Russia Writedowns Mean No Dividend Payout

Immofinanz AG fell the most since February after the Austrian property company reported writedowns in Russia and eastern Europe and said it won’t pay a full-year dividend.

The shares dropped as much as 4.8 percent to 2.13 euros in Vienna, the most since Feb. 26, and were down 4.5 percent at 3:29 p.m. About 3.3 million shares changed hands, around 80 percent of the three-month daily average.

Immofinanz will post a net loss of 361 million euros ($395 million) for the year ended in April after taking writedowns on shopping malls in Moscow and office properties in eastern Europe, the company said in a statement on Monday. It will present results on Thursday.

“It’s understandable, but also disappointing that there will be no dividend,” said Thomas Neuhold, a Vienna-based analyst at Kepler Cheuvreux who has a hold rating on Immofinanz. “The high exposure to Russia and the deterioration of the business there will make it hard for the shares to outperform the market.”

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