LEG Immobilien (LEG) Q3 2025 earnings summary

Executive summary

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

• Portfolio expanded to 171,781 residential units and 1,605 commercial units, with average rent at €7.01/sqm and like-for-like rent growth of 3.1%.

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

• Disposed of 2,200 units for €190 million, with further disposals expected by year-end.

• Major acquisition and full integration of Brack Capital Properties (BCP) significantly impacted 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 improving to 79.2%.

• FFO I rose by 12.6% to €370.7 million; AFFO per share up 18% to €2.42.

• Equity increased by 14.1% to €8,439.5 million; EPRA NTA per share up 4.1% to €131.00.

• 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%, like-for-like rent growth 3.4–3.6%.

• 2026 guidance: AFFO €220–240 million, FFO I €475–495 million, adjusted EBITDA margin ~78%, like-for-like rent growth 3.8–4.0%.

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

• No new developments planned for 2026; subsidies expected to drop to €10 million.

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