LEG Immobilien (LEG) Q4 2024 earnings summary

Executive summary

• Delivered on all ambitious operational and financial targets for 2024, with AFFO up 10.6% to EUR 200.4 million, and dividend per share up 10.2% to EUR 2.70, reflecting strong bottom-line performance and capital discipline.

• Focused on cash generation, disciplined portfolio management, and disposal of non-core units above book value, with integration of BCP portfolio adding 9,100 units and divesting 2,479 units in 2024.

• ESG progress includes a 26% reduction in CO₂e emissions since 2019 and validation of decarbonization path by SBTI.

• Proposed dividend of EUR 2.70 per share, fully covered by AFFO, with scrip and cash options.

• Vacancy rate reduced by 30bps to 2.3%.

Financial highlights

• Net cold rent grew 3.0% to EUR 859.4 million; like-for-like rent up 3.4%.

• Recurring net operating income rose 5.1% to EUR 718.7 million; margin improved to 83.6%.

• AFFO increased 10.6% to EUR 200.4 million, despite loss of EUR 25.8 million windfall from prior year.

• EBITDA stable at EUR 669.5 million; margin at 77.9%.

• Cash and cash equivalents: EUR 914.3 million (+125.5%); LTV: 47.9% (-50bps); equity ratio: 37.8%.

Outlook and guidance

• 2025 AFFO guidance: EUR 205–225 million, implying over 7% growth at midpoint, with like-for-like rent growth of 3.4–3.6% and investments above EUR 35/sqm.

• Dividend policy to pay out 100% of AFFO and part of net disposal proceeds.

• Medium-term LTV target remains max 45%.

• Continued focus on cash generation, disciplined disposals, and maintaining a clean balance sheet.