LEG Immobilien (LEG) Q3 2025 earnings summary

Executive summary

• AFFO increased 19.3% to €181.3 million for the first nine months of 2025, with FFO I up 12.6% and strong rental growth driven by BCP integration.

• Portfolio expanded to 171,781 residential units, with average rent at €7.01/sqm and like-for-like rent up 3.1%.

• Moody's confirmed Baa2 rating and revised outlook to positive, reflecting balance sheet strength and cash-focused management.

• Over 2,200 units sold for €190 million at or above book value, with further disposals expected in Q4.

• Major BCP acquisition completed and fully consolidated, significantly impacting financials and portfolio size.

Financial highlights

• Net cold rent increased by 6.8% to €687.7 million year-over-year, driven by BCP integration and organic growth.

• Adjusted EBITDA rose 10.8% to €544.9 million, with margin at 79.2% for the first nine months; full-year guidance at 77%.

• AFFO for the first nine months reached €181.3 million; full-year expected between €215–225 million.

• Like-for-like rental growth at 3.1% as of Q3, with confidence to reach 3.4–3.6% for the full year.

• Net profit for the period reached €1,130.8 million, driven by positive revaluation and tax effects.

Outlook and guidance

• 2025 guidance: AFFO €215–225 million, FFO I €470–490 million, adjusted EBITDA margin ~77%, and like-for-like rent growth of 3.4–3.6%.

• 2026 guidance: AFFO to grow by 5% to €220–240 million, FFO I €475–495 million, rent growth of 3.8–4%, and EBITDA margin ~78%.

• LTV targeted at 45% in 2026, driven by disposals and valuation effects.

• Investments to remain above €35 per square meter, in line with current year.

• Environmental targets for CO2 savings included in medium-term outlook.