WOOD Flash – Duna House: 4Q22 – 50% dividend yield in the next two years?
Thanks to the acquisition of Italian HGroup (which was consolidated in the results from 1 April 2022), Duna House (DH) generated record strong results in 2022, despite the high rate environment weighing on the affordability and demand for mortgages and apartments in Hungary and Poland. DH’s 2022 results were boosted further by the Forest Hill residential development project in Budapest. Management decided to distribute the proceeds from the residential sales via a dividend – translating into a yield of 26% on the share price on the closing of the day before the results were announced. Going forward, the completion and sale of the remaining parts of the Forest Hill project, and the sale of the residential apartments DH owned in Budapest could generate additional cash inflows of HUF 5.6-5.7bn. Management expects the proceeds to either finance a M&A, or to be distributed to the shareholders via another dividend. This could translate into a yield of around 30%, if fully paid out. This means that, over the next two years, DH could distribute around half of its market share via dividends, even following the step-up in the share price following the earnings announcement.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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