(New: Share and sector turned into plus, ECB statements on inflation development)

FRANKFURT (dpa-AFX Broker) - The series of dividend cuts by real estate groups to improve the balance sheet continues with Aroundtown. The share price of the real estate company sank at times by double digits in percentage terms on Wednesday - as on the previous day. At times it approached the 1 euro mark and thus the pennystock status. But then investors took heart after a price loss of more than half since the beginning of March. Since the summer of 2021, they had already lost more than four-fifths of their value at the peak.

Aroundtown shares turned with the sector into profit around midday - at times gaining as much as six percent, recovering as much as 20 percent from their low for the day. However, persistent fluctuations were evidence of continued high nervousness: Most recently, the price gain flattened out, with the shares trading up 1.3 percent at 1.38 euros.

From one of the few losers, the Stoxx Europe 600 Real Estate subindex recently became one of the biggest winners. The decline of the European sector index by a quarter since the beginning of February was apparently enough for investors for now. The sector was recently hit by high inflation and the associated rise in key interest rates. These influences had put an abrupt end to the long real estate boom in Germany in recent months.

In the course of the sudden recovery rally, investors may also have been relieved by the fact that, according to ECB chief economist Lane, a decline in inflation is in sight. Other German stocks also managed to turn positive: shares of competitor LEG, which had already recently announced a dividend waiver, recently gained 2.3 percent. TAG Immobilien was up 5.3 percent, while Dax member Vonovia posted a gain of 4.2 percent.

A trader emphasized that Aroundtown's dividend suspension was not really surprising at first, but that it did not help the stock story either. He added that a disappointing outlook for operating profit (FFO) in the current year was another negative point in the company's latest report. Andre Remke of Baader Bank rated the targets as meager. Aroundtown expects a significant decline in operating profit due in part to the sale of real estate.

While the management does not want to pay a dividend for 2022 due to the difficult economic situation, it plans to pay a dividend again for the current year. The fact that this is then to amount to 20 to 23 cents was initially not sufficient consolation for investors in the morning. In 2021, Aroundtown had paid 23 cents per share certificate - i.e. at the upper end of the aforementioned range./tih/tav/mis