Nov 8 Reuters Shares in Deutsche Pfandbriefbank pbb were on track for their worst day in six months after the German lender late on Tuesday lowered its fullyear profit forecast and said it would not pay out a special dividend.

The bank said it now expects annual pretax earnings of 90110 million euros 96117 million, slashing previous guidance of 170200 million, citing prolonged weakness in commercial real estate.

Its shares were down 11.8 at 0942 GMT on Wednesday, at the bottom of Germany39;s smallcaps index.

We do not expect the real estate market to stabilise until the first half of 2024, CEO Andreas Arndt said. The price discovery process is taking significantly longer than expected.

The group said it will not pay a special dividend for 2023 as it had in previous years, in view of the challenging situation in the real estate market, it said in a statement.

But it said it would stick with its policy for the overall dividend, which it would decide on and communicate when it publishes fullyear results.

1 0.9368 euros

Reporting by Anna Mackenzie in Gdansk; editing by Jason Neely

Source Reuters