LEG Immobilien (LEG) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 surged 320.8% year-over-year to €243.2 million, driven by the BCP acquisition and strong rental growth.

• AFFO increased 28.2% to €62.3 million, with guidance for >7% AFFO growth in 2025 reaffirmed.

• BCP integration completed, including squeeze-out of minorities, delisting, and full consolidation as of April 2025.

• Portfolio expanded to over 171,700 units, with disposals ramping up to a 5,000-unit program.

• ESG strategy 2030 published, targeting a 47% carbon footprint reduction by 2030.

Financial highlights

• Net cold rent increased 7.2% to €229.5 million, with BCP contributing €12.3 million.

• Recurring net operating income rose 8.7% to €186 million; margin improved to 81%.

• Adjusted EBITDA up 10% to €173.4 million; margin at 75.6%.

• FFO I increased 15.7% to €114.3 million; AFFO per share up 27.3% to €0.84.

• Operating cash flow declined 17.9% to €110.3 million.

Outlook and guidance

• 2025 AFFO expected in the range of €205–225 million; adjusted EBITDA margin targeted at ~76%.

• Like-for-like rent growth guidance of 3.4%-3.6%; investments to exceed €35/sqm.

• Medium-term LTV target at max 45%; 100% AFFO payout plus part of disposal proceeds as dividend.

• Environmental target set to save 6,000 tonnes of CO2 in 2025.

• H1 2025 valuation effects expected at +0.5% to +1.0%.