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Aareal Bank

XTRA:ARL
Snowflake Description

Average dividend payer and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARL
XTRA
€2B
Market Cap
  1. Home
  2. DE
  3. Banks
Company description

Aareal Bank AG, together with its subsidiaries, provides financing, software products, and digital solutions for the property sector and related industries in Germany and internationally. The last earnings update was 28 days ago. More info.


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ARL Share Price and Events
7 Day Returns
-2.3%
XTRA:ARL
-0.9%
Europe Mortgage
0.8%
DE Market
1 Year Returns
-26.9%
XTRA:ARL
1.7%
Europe Mortgage
-4.5%
DE Market
ARL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Aareal Bank (ARL) -2.3% 12.3% 3.1% -26.9% -4.1% -7.5%
Europe Mortgage -0.9% 7.8% 9.9% 1.7% 35.4% 23.2%
DE Market 0.8% 6.9% 8.1% -4.5% 10.4% 13.9%
1 Year Return vs Industry and Market
  • ARL underperformed the Mortgage industry which returned 1.7% over the past year.
  • ARL underperformed the Market in Germany which returned -4.5% over the past year.
Price Volatility
ARL
Industry
5yr Volatility vs Market

ARL Value

 Is Aareal Bank undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Aareal Bank to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Aareal Bank.

XTRA:ARL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model Excess Returns Model
Stable EPS Weighted future Return on Equity estimates from 4 analysts.
= Stable Book Value * Return on Equity
= €46.08 * 6.1%
€2.83
Book Value of Equity per Share Weighted future Book Value estimates from 5 analysts. €46.08
Discount Rate (Cost of Equity) See below 12.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for XTRA:ARL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Mortgage Unlevered Beta Simply Wall St/ S&P Global 0.9
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.899 (1 + (1- 30%) (1622.49%))
7.774
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (2 * 5.96%)
12.15%

Discounted Cash Flow Calculation for XTRA:ARL using Excess Returns Model Model

The calculations below outline how an intrinsic value for Aareal Bank is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.

In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.

The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.

Note the calculations below are per share.

See our documentation to learn about this calculation.

XTRA:ARL Value of Excess Returns
Calculation Result
Excess Returns = (Stable Return on equity – Cost of equity) (Book Value of Equity per share)
= (6.1% – 12.15%) * €46.08)
€-2.77
Terminal Value of Excess Returns = Excess Returns / (Cost of Equity - Expected Growth Rate)
= €-2.77 / (12.15% - 0.23%)
€-23.20
Value of Equity = Book Value per share + Terminal Value of Excess Returns
= €46.08 + €-23.20
€22.88
XTRA:ARL Discount to Share Price
Calculation Result
Value per share (EUR) From above. €22.88
Current discount Discount to share price of €30.22
= -1 x (€30.22 - €22.88) / €22.88
-32.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Aareal Bank is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Aareal Bank's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Aareal Bank's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
XTRA:ARL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €3.47
XTRA:ARL Share Price ** XTRA (2019-04-25) in EUR €30.22
Europe Mortgage Industry PE Ratio Median Figure of 14 Publicly-Listed Mortgage Companies 9.17x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Aareal Bank.

XTRA:ARL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= XTRA:ARL Share Price ÷ EPS (both in EUR)

= 30.22 ÷ 3.47

8.7x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aareal Bank is good value based on earnings compared to the Europe Mortgage industry average.
  • Aareal Bank is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Aareal Bank's expected growth come at a high price?
Raw Data
XTRA:ARL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 8.7x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-2.5%per year
Europe Mortgage Industry PEG Ratio Median Figure of 6 Publicly-Listed Mortgage Companies 0.97x
Germany Market PEG Ratio Median Figure of 268 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

XTRA:ARL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 8.7x ÷ -2.5%

-3.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aareal Bank earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Aareal Bank's assets?
Raw Data
XTRA:ARL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €48.88
XTRA:ARL Share Price * XTRA (2019-04-25) in EUR €30.22
Europe Mortgage Industry PB Ratio Median Figure of 17 Publicly-Listed Mortgage Companies 0.74x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
XTRA:ARL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= XTRA:ARL Share Price ÷ Book Value per Share (both in EUR)

= 30.22 ÷ 48.88

0.62x

* Primary Listing of Aareal Bank.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aareal Bank is good value based on assets compared to the Europe Mortgage industry average.
X
Value checks
We assess Aareal Bank's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Mortgage industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Mortgage industry average (and greater than 0)? (1 check)
  5. Aareal Bank has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ARL Future Performance

 How is Aareal Bank expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-2.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Aareal Bank expected to grow at an attractive rate?
  • Aareal Bank's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Aareal Bank's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Aareal Bank's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
XTRA:ARL Future Growth Rates Data Sources
Data Point Source Value (per year)
XTRA:ARL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -2.5%
XTRA:ARL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 8.7%
Europe Mortgage Industry Earnings Growth Rate Market Cap Weighted Average 10.7%
Europe Mortgage Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
XTRA:ARL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
XTRA:ARL Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 193
2022-12-31 186
2021-12-31 861 179 1
2020-12-31 846 179 7
2019-12-31 827 163 7
XTRA:ARL Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 688 -294 208
2018-09-30 718 2,265 161
2018-06-30 741 2,816 167
2018-03-31 756 3,841 192
2017-12-31 765 829 191
2017-09-30 842 440 180
2017-06-30 843 606 175
2017-03-31 924 321 186
2016-12-31 952 851 199
2016-09-30 900 4,673 226
2016-06-30 916 2,819 231
2016-03-31 854 3,134 354

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Aareal Bank's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Aareal Bank's revenue is expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
XTRA:ARL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Aareal Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XTRA:ARL Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 2.99 3.15 2.84 6.00
2019-12-31 2.74 2.88 2.57 6.00
XTRA:ARL Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 3.47
2018-09-30 2.69
2018-06-30 2.79
2018-03-31 3.21
2017-12-31 3.19
2017-09-30 3.00
2017-06-30 2.92
2017-03-31 3.10
2016-12-31 3.32
2016-09-30 3.78
2016-06-30 3.86
2016-03-31 5.92

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Aareal Bank is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Aareal Bank's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Europe market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Europe market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Aareal Bank has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ARL Past Performance

  How has Aareal Bank performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Aareal Bank's growth in the last year to its industry (Mortgage).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Aareal Bank's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.
  • Aareal Bank's 1-year earnings growth exceeds its 5-year average (8.9% vs -7.8%)
  • Aareal Bank's earnings growth has not exceeded the Europe Mortgage industry average in the past year (8.9% vs 9.2%).
Earnings and Revenue History
Aareal Bank's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Aareal Bank Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

XTRA:ARL Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 688.00 208.00 462.00
2018-09-30 718.00 161.00 440.00
2018-06-30 741.00 167.00 453.00
2018-03-31 756.00 192.00 473.00
2017-12-31 765.00 191.00 511.00
2017-09-30 842.00 180.00 506.00
2017-06-30 843.00 175.00 513.00
2017-03-31 924.00 186.00 528.00
2016-12-31 952.00 199.00 535.00
2016-09-30 900.00 226.00 555.00
2016-06-30 916.00 231.00 575.00
2016-03-31 854.00 354.00 567.00
2015-12-31 822.00 339.00 553.00
2015-09-30 829.00 312.00 529.00
2015-06-30 792.00 302.00 491.00
2015-03-31 769.00 140.00 469.00
2014-12-31 718.00 292.00 439.00
2014-09-30 656.00 295.00 415.00
2014-06-30 624.00 282.00 400.00
2014-03-31 582.00 274.00 376.00
2013-12-31 575.00 117.00 366.00
2013-09-30 569.00 104.00 364.00
2013-06-30 557.00 103.00 360.00
2013-03-31 554.00 106.00 359.00
2012-12-31 544.00 105.00 358.00
2012-09-30 551.00 111.00 360.00
2012-06-30 556.00 113.00 363.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Aareal Bank has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Aareal Bank used its assets less efficiently than the Europe Mortgage industry average last year based on Return on Assets.
  • Unable to establish if Aareal Bank improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess Aareal Bank's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Mortgage industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Aareal Bank has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ARL Health

 How is Aareal Bank's financial position? (This company is analysed differently as a bank or financial institution)

This company is a bank or financial institution.

Fundamentally a bank's business is based upon borrowing and lending money, for this reason they typically have high levels of debt and we analyse them differently.
Net Worth
Balance sheet
This treemap shows a more detailed breakdown of Aareal Bank's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Aareal Bank Company Filings, last reported 3 months ago.

XTRA:ARL Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,928.00 29,349.00 7,633.00
2018-09-30 2,853.00 26,879.00 6,841.00
2018-06-30 2,798.00 27,029.00 7,104.00
2018-03-31 2,932.00 28,295.00 7,241.00
2017-12-31 2,924.00 29,077.00 7,873.00
2017-09-30 2,884.00 39,552.00 4,599.00
2017-06-30 2,833.00 40,489.00 3,381.00
2017-03-31 2,906.00 42,323.00 3,730.00
2016-12-31 3,129.00 43,672.00 2,983.00
2016-09-30 3,064.00 46,357.00 6,369.00
2016-06-30 3,025.00 46,810.00 4,699.00
2016-03-31 3,079.00 47,604.00 5,397.00
2015-12-31 3,044.00 47,871.00 3,286.00
2015-09-30 2,992.00 49,809.00 5,185.00
2015-06-30 2,949.00 51,487.00 4,204.00
2015-03-31 2,800.00 47,063.00 5,171.00
2014-12-31 2,723.00 45,849.00 4,316.00
2014-09-30 2,704.00 46,208.00 4,484.00
2014-06-30 2,653.00 45,063.00 4,511.00
2014-03-31 2,653.00 46,140.00 4,178.00
2013-12-31 2,450.00 39,994.00 2,145.00
2013-09-30 2,420.00 28,390.00 6,918.00
2013-06-30 2,387.00 29,484.00 7,666.00
2013-03-31 2,362.00 30,084.00 7,633.00
2012-12-31 2,317.00 42,992.00 2,941.00
2012-09-30 2,326.00 30,937.00 8,190.00
2012-06-30 2,264.00 31,260.00 8,704.00
BANK ANALYSIS

This company is a bank or financial institution, which is analysed accordingly below.

Below we check the amount of loans the bank has, how many of those are bad, and its ability to cover any bad loans.
  • Aareal Bank has an acceptable proportion of non-loan assets held.
  • Aareal Bank's liabilities are made up of primarily higher risk sources of funding.
  • Aareal Bank has advanced significantly more loans than the customer deposits it holds (i.e. bank has borrowed additional funds to lend).
  • Aareal Bank's level of assets compared to its equity is moderate (i.e. an appropriate level of borrowing to fund lending).
  • Aareal Bank has a low allowance for bad loans.
  • Aareal Bank has a high level of bad loans (greater than 2%).
X
Financial health checks
We assess Aareal Bank's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Aareal Bank has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ARL Dividends

 What is Aareal Bank's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.95%
Current annual income from Aareal Bank dividends. Estimated to be 7.26% next year.
If you bought €2,000 of Aareal Bank shares you are expected to receive €139 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Aareal Bank's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.44%).
  • Aareal Bank's dividend is above the markets top 25% of dividend payers in Germany (3.67%).
Upcoming dividend payment

Purchase Aareal Bank before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
XTRA:ARL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Mortgage Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 5.2%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

XTRA:ARL Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 2.30 1.00
2020-12-31 2.26 10.00
2019-12-31 2.11 10.00
XTRA:ARL Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-02-18 2.100 7.389
2018-05-23 2.500 7.566
2017-05-04 2.000 5.373
2016-05-25 1.650 5.050
2015-05-20 1.200 3.853
2014-05-21 0.750 2.149
2010-02-23 0.000 0.000
2009-11-10 0.000 0.000
2009-10-30 0.000 0.000
2009-08-12 0.000 0.000
2009-04-30 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Aareal Bank has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Aareal Bank only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Aareal Bank's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.3x coverage).
X
Income/ dividend checks
We assess Aareal Bank's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Aareal Bank afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Aareal Bank has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ARL Management

 What is the CEO of Aareal Bank's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Hermann Merkens
COMPENSATION €3,581,202
AGE 52
TENURE AS CEO 3.6 years
CEO Bio

Mr. Hermann Josef Merkens serves as Chairman of the supervisory Board at Aareal Beteiligungen AG. He served as the Chairman of the Management Board at Aareal Beteiligungen AG since September 2015 and served its Member of the Management Board since 2003. Mr. Merkens served as the Chief Financial Officer of Aareal Bank AG until October 1, 2018. Mr. Merkens served as Chief Financial Officer at Aareal Beteiligungen AG. Mr. Merkens has been the Chairman of the Management Board at Aareal Bank AG since September 17, 2015 and has been its Member of the Management Board since March 1, 2003 and served as its Deputy Chairman of Management Board from December 4, 2014 to September 17, 2015. Already in 1999, he joined Aareal Bank AG (back then DePfa Bank AG) as Head of Division Commercial Property Financing Germany and was appointed Deputy Member of the Management Board in 2001. He was Director with general authority at Deutsche Interhotel Holding GmbH & Co. KG. His professional career started in 1985 at Deutsche Bank Group. He served as Deputy Chairman of the Management Board at Aareal Bank AG. He has been the Chairman of the Supervisory Board of Aareal Asset Management Gmbh since March 18, 2004. He has been the Chairman of the Supervisory Board of Aareal Immobilien Kapitalanlagegesellschaft mbH since February 16, 2004. He serves as the Chairman of the Supervisory Board of Aareal Estate AG. He has been the Chairman of the Supervisory Board of Aareal Property services B.V since March 2004. He has been the Chairman of the Supervisory Board at Westdeutsche Immobilien Servicing AG (alternate name, Westdeutsche ImmobilienBank AG) since October 16, 2015. He serves as Chairman of the Supervisory Board at Deutsche Bau- und Grundstücks-Aktiengesellschaft. He served as the Chairman of Aareal Immobilien Management AG until June 30, 2006. He has been Deputy Chairman of Supervisory Board at Corealcredit Bank AG since April 1, 2014. He served as Deputy Chairman of Supervisory Board at Aareal Beteiligungen AG since April 1, 2014. Mr. Merkens served as Deputy Chairman of Aareal Bank AG since April 1, 2014. He served as Deputy Chairman of Westdeutsche Immobilien Servicing AG from June 1, 2015 to October 15, 2015. He served as Deputy Chairman of the Supervisory Board of Aareal Hype AG since December 30, 2004 until March 3, 2006. He served as Deputy Chairman of Aareal Property services B.V until March 2004. He has been a Member of the Supervisory Board at Westdeutsche Immobilien Servicing AG since June 1, 2015. He serves as Member of the Supervisory Board of Aareal First Financial Solutions AG, Aareon AG and Aareal Valuation GmbH. He has been a Director of Aareal Financial Services (Singapore) Pte. Ltd., since August 10, 2006. Mr. Merkens serves as Member of the Advisory Board of Deutsche Structured Finance GmbH. He serves as Member of the Advisory Board of Deutsche Interhotel Holding GmbH & Co. KG. He graduated from Berlin School of Economics with a diploma in business administration.

CEO Compensation
  • Hermann's compensation has been consistent with company performance over the past year.
  • Hermann's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Aareal Bank management team in years:

3.1
Average Tenure
51.5
Average Age
  • The tenure for the Aareal Bank management team is about average.
Management Team

Hermann Merkens

TITLE
Chairman of the Management Board
COMPENSATION
€4M
AGE
52
TENURE
3.6 yrs

Marc Hess

TITLE
CFO & Member of the Management Board
COMPENSATION
€1M
AGE
44
TENURE
0.5 yrs

Thomas Ortmanns

TITLE
Member of the Management Board
COMPENSATION
€2M
AGE
58
TENURE
13.6 yrs

Dagmar Knopek

TITLE
Member of the Management Board
COMPENSATION
€2M
AGE
60
TENURE
5.8 yrs

Christiane Kunisch-Wolff

TITLE
Chief Risk Officer & Member of the Management Board
COMPENSATION
€2M
AGE
52
TENURE
3.1 yrs

Christof Winkelmann

TITLE
Member of Management Board
COMPENSATION
€2M
AGE
42
TENURE
2.8 yrs

Holger Spielberg

TITLE
Group Managing Director of Group Technology
AGE
50

Jürgen Junginger

TITLE
Managing Director Investor Relations

Cornelia Müller

TITLE
Head of Corporate Communications division
AGE
51
TENURE
1.2 yrs

Brigitte Butz

TITLE
Head of Human Resources
Board of Directors Tenure

Average tenure and age of the Aareal Bank board of directors in years:

3.9
Average Tenure
61.5
Average Age
  • The tenure for the Aareal Bank board of directors is about average.
Board of Directors

Marija Korsch

TITLE
Chairman of the Supervisory Board
COMPENSATION
€301K
AGE
70
TENURE
5.9 yrs

Stephan Schüller

TITLE
Deputy Chairman of the Supervisory Board
COMPENSATION
€152K
AGE
66
TENURE
3.9 yrs

Klaus Novatius

TITLE
Deputy Chairman of the Supervisory Board
AGE
51
TENURE
0.3 yrs

Sylvia Seignette

TITLE
Supervisory Board Member
COMPENSATION
€103K
AGE
68
TENURE
3.9 yrs

Hermann Wagner

TITLE
Supervisory Board Member
COMPENSATION
€126K
AGE
62
TENURE
3.9 yrs

Elisabeth Stheeman

TITLE
Supervisory Board Member
COMPENSATION
€102K
AGE
54
TENURE
3.9 yrs

Thomas Hawel

TITLE
Employee Representative Supervisory Board Member
COMPENSATION
€77K
AGE
55
TENURE
12.9 yrs

Richard Peters

TITLE
Supervisory Board Member
COMPENSATION
€123K
AGE
61
TENURE
5.9 yrs

Hans-Werner Rhein

TITLE
Supervisory Board Member
COMPENSATION
€101K
AGE
66
TENURE
3.9 yrs

Hans-Dietrich Voigtländer

TITLE
Supervisory Board Member
COMPENSATION
€141K
AGE
60
TENURE
3.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Aareal Bank's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Aareal Bank has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ARL News

Simply Wall St News

Is There Now An Opportunity In Aareal Bank AG (ETR:ARL)?

saw significant share price movement during recent months on the XTRA, rising to highs of €29.43 and falling to the lows of €26.35. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at Aareal Bank’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Do Institutions Own Shares In Aareal Bank AG (ETR:ARL)?

The big shareholder groups in Aareal Bank AG (ETR:ARL) have power over the company. … Generally speaking, as a company grows, institutions will increase their ownership. … Our analysis of the ownership of the company, below, shows that.

Simply Wall St -

Is Aareal Bank AG (ETR:ARL) A Volatile Stock?

In finance, Beta is a measure of volatility. … Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta is a widely used metric to measure a stock's exposure to market risk (volatility).

Simply Wall St -

Is Aareal Bank AG's (ETR:ARL) CEO Salary Justified?

In 2015 Hermann Merkens was appointed CEO of Aareal Bank AG (ETR:ARL). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Hermann Merkens's Compensation Compare With Similar Sized Companies?

Simply Wall St -

At €26.01, Is It Time To Put Aareal Bank AG (ETR:ARL) On Your Watch List?

received a lot of attention from a substantial price movement on the XTRA over the last few months, increasing to €37.05 at one point, and dropping to the lows of €26.01. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … A question to answer is whether Aareal Bank's current trading price of €26.01 reflective of the actual value of the?

Simply Wall St -

Why Income Investors Should Have Aareal Bank AG (ETR:ARL) In Their Portfolio

Over the past 10 years Aareal Bank AG (ETR:ARL) has grown its dividend payouts from €0.50 to €2.5. … With a market cap of €2.0b, Aareal Bank pays out 90% of its earnings, leading to a 7.7% yield. … consistent, reliable and competitive dividend over a long period of time, and is expected to continue to pay in the same manner many years to come

Simply Wall St -

Is Aareal Bank AG's (ETR:ARL) CEO Pay Fair?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Hermann Merkens's Compensation Compare With Similar Sized Companies. … It would therefore appear that Aareal Bank AG pays Hermann Merkens more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Is Aareal Bank AG (ETR:ARL) A Smart Pick For Income Investors?

There is a lot to be liked about Aareal Bank AG (ETR:ARL) as an income stock, over the past 10 years it has returned an average of 3.00% per year. … The stock currently pays out a dividend yield of 6.47%, and has a market cap of €2.32b. … Let's take a look at Aareal Bank in more detail.

Simply Wall St -

Why Aareal Bank AG's (ETR:ARL) ROE Of 7.16% Does Not Tell The Whole Story

This analysis is intended to introduce important early concepts to people who are starting to invest. … and want to start learning about core concepts of fundamental analysis on practical examples from today's market. … Check out our latest analysis for Aareal Bank

Simply Wall St -

Intrinsic Calculation For Aareal Bank AG (ETR:ARL) Shows Investors Are Overpaying

This is because the rules financial firms face are different to other companies, which can impact the way we forecast their cash flows. … For instance, these lenders must hold a certain level of cash reserves on the books as a safety precaution.

Simply Wall St -

ARL Company Info

Description

Aareal Bank AG, together with its subsidiaries, provides financing, software products, and digital solutions for the property sector and related industries in Germany and internationally. The company operates in two segments, Structured Property Financing and Consulting/Services. The Structured Property Financing segment offers property financing and refinancing solutions for office buildings, hotels, and shopping centers, as well as retail, logistics, and residential properties. This segment also provides deposits, registered and bearer Pfandbriefe, promissory note loans, medium-term notes, debt securities, private placements, other bonds and subordinated issues, mortgage Pfandbriefe, and public sector Pfandbriefe. The Consulting/Services segment offers various services and products for the housing, commercial property, and energy and waste disposal markets. Its services include specialized banking, automated mass payment, and optimization of business processes, as well as software development; and asset management services. This segment also provides IT systems consultancy and related advisory services, enterprise resource planning systems, software solutions, hosting and software as a service, and in-house services. Aareal Bank AG was founded in 1923 and is headquartered in Wiesbaden, Germany.

Details
Name: Aareal Bank AG
ARL
Exchange: XTRA
Founded: 1923
€1,808,885,218
59,857,221
Website: http://www.aareal-bank.com
Address: Aareal Bank AG
Paulinenstrasse 15,
Wiesbaden,
Hessen, 65189,
Germany
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
XTRA ARL Ordinary Shares XETRA Trading Platform DE EUR 17. Jun 2002
OTCPK AAAL.F Ordinary Shares Pink Sheets LLC US USD 17. Jun 2002
DB ARL Ordinary Shares Deutsche Boerse AG DE EUR 17. Jun 2002
LSE 0MG0 Ordinary Shares London Stock Exchange GB EUR 17. Jun 2002
SWX ARL Ordinary Shares SIX Swiss Exchange CH CHF 17. Jun 2002
WBAG ARL Ordinary Shares Wiener Boerse AG AT EUR 17. Jun 2002
BATS-CHIXE ARLD Ordinary Shares BATS 'Chi-X Europe' GB EUR 17. Jun 2002
BDL 114071919 7.625%-FRN PERP EUR200000 'REGS' Bourse de Luxembourg LU EUR 13. Nov 2014
DB A1TNDK 7.625%-FRN PERP EUR200000 'REGS' Deutsche Boerse AG DE EUR 13. Nov 2014
Number of employees
Current staff
Staff numbers
2,464
Aareal Bank employees.
Industry
Thrifts and Mortgage Finance
Banks
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 21:16
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/25
Last earnings filing: 2019/03/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.