LEG Immobilien (LEG) Q2 2024 earnings summary

Executive summary

• Net cold rent rose 3.3% year-over-year to €427.9 million, driven by 2.9% like-for-like rent growth and lower vacancy.

• AFFO for H1 2024 was €109.7 million, down 7.5% year-over-year, mainly due to lower green energy contributions and higher interest and maintenance expenses.

• Adjusted EBITDA declined 3.4% to €323.9 million, with margin at 75.7%.

• Portfolio devaluation slowed to 1.6% in H1 2024, signaling a potential trough and improved market stability.

• AFFO guidance for FY 2024 raised to €190–210 million, with a 10% per share increase expected.

Financial highlights

• Recurring NOI rose 3.2% to €350.2 million; margin stable at 81.8%.

• FFO I was €217.9 million (-3.6% year-over-year); AFFO per share at €1.48 (-7.5%).

• Operating cash flow increased 5.2% to €278.0 million.

• EPRA NTA per share (diluted) was €122.59, down 3.1% from year-end 2023.

• Net income from remeasurement of investment properties was €-293.4 million, a smaller loss than €-1,496.1 million in H1 2023.

Outlook and guidance

• AFFO guidance for 2024 raised to €190–210 million (previously €180–200 million).

• Investment guidance increased to €34 per sqm for 2024.

• Like-for-like rent growth expected at 3.2–3.4% for 2024.

• LTV expected to fall below 48% by year-end, aided by disposals; medium-term target remains max 45%.

• Dividend policy: 100% of AFFO plus part of net proceeds from disposals.