LEG Immobilien (LEG) Q4 2025 earnings summary

Executive summary

• Achieved record AFFO of €220.5M in 2025, up 10% year-over-year, surpassing targets and marking the highest in company history.

• Dividend proposal of €2.92/share, up 8%, reflecting 100% AFFO payout.

• Portfolio expanded to 171,360 residential units, driven by BCP acquisition and new builds, despite asset sales.

• Completed or agreed sales of 3,100 units for over €250M in 2025, supporting capital recycling and balance sheet optimization.

• Maintained high occupancy with EPRA vacancy rate at 2.3% and strong demand for affordable housing.

Financial highlights

• Net cold rent reached €919.9M, up 7% year-over-year, driven by 3.5% like-for-like rent growth and BCP integration.

• Adjusted EBITDA margin at 78.1%, exceeding guidance; adjusted EBITDA rose 7.3% to €718.3M.

• FFO I at €481.5M, up 5.2% year-over-year; AFFO per share rose 8.4% to €2.92.

• EPRA NTA per share up 8.9% to €137.14; equity ratio improved to 41.6%.

• Investments totaled €402.8M, up 10% year-over-year, exceeding per sqm targets.

Outlook and guidance

• 2026 AFFO guidance: €220M–€240M; FFO I: €475M–€495M; Adjusted EBITDA margin ~78%.

• Like-for-like rent growth targeted at 3.8%–4% for 2026; further upside from expiring social housing commitments in 2028.

• Investment volume to exceed €35/sqm in 2026.

• LTV expected at ~45% by end-2026.

• Digitalisation expected to contribute over €10M to AFFO and FFO I from 2030.