LEG Immobilien (LEG) Q4 2025 earnings summary

Executive summary

• Achieved record AFFO of EUR 220.5 million in 2025, up 10% year-over-year, with strong portfolio execution, BCP integration, and surpassing targets.

• Dividend proposal of EUR 2.92 per share, up 8%, reflecting a 100% AFFO payout and a 4.7% yield.

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

• Completed or agreed sales of 3,100 units for over EUR 250 million, 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 EUR 919.9 million, up 7% year-over-year, supported by a 3.5% like-for-like rent increase and BCP integration.

• Adjusted EBITDA margin at 78.1%, with EBITDA (adjusted) up 7.3% to EUR 718.3 million.

• FFO I rose 5.2% to EUR 481.5 million; AFFO per share increased 8.4% to EUR 2.92.

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

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

Outlook and guidance

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

• Like-for-like rent growth targeted at 3.8–4.0% for 2026, with cost rent adjustment contributing 40–50 bps.

• Investment volume to exceed EUR 35 per square meter in 2026.

• LTV expected at ~45% by end of 2026; 100% AFFO payout policy maintained.

• Midterm AFFO growth of ~5% per year expected, driven by rent increases from units coming off restriction, value-add businesses, and digitalisation initiatives.