LEG Immobilien shines in the first quarter: profits and dividends increase!

LEG Immobilien shines in the first quarter: profits and dividends increase!

LEG Immobilien significantly increased both its operating profit and net profit in the first quarter of 2025. This is shown by the company's current results for the period from January to March. Adjusted operating profit (AFFO) rose to 62.3 million euros, compared to 48.6 million euros in the previous year. The net rent also increased by over 7 percent to 229.5 million euros, compared to 214 million euros in the previous year. The actual rent on a comparable basis increased by 3 percent, which underlines the positive development of the company. After taxes, LEG Immobilien achieved a profit of 243 million euros, a considerable increase compared to 57.8 million euros in the previous year finanzen.at reported.

For the entire 2025 financial year, LEG expects adjusted FFO (AFFO) in the range of 205 to 225 million euros. The positive development is accompanied by stabilizing valuations of the real estate portfolio and moderate growth in rental income.

Dividend and market reaction

An important step for investors is the announcement by LEG Immobilien that it will increase the dividend for 2024 to 2.70 euros per share, after it was 2.45 euros in the previous year. Analysts on average had expected a lower dividend of EUR 2.66 per share. The dividend is composed of 100 percent of adjusted FFO (AFFO) and a portion of net real estate sales proceeds, reports finance.net.

The net rent rose to 859.4 million euros in 2024, which shows a moderate increase compared to 834 million euros in the previous year. The actual rent on a comparable basis also increased by 3.4 percent, which is at the upper end of the target range of 3.2 to 3.4 percent. LEG Immobilien achieved a profit after taxes of 68.9 million euros, a significant increase from a loss of around 1.6 billion euros in the previous year. This loss was due to a revaluation of the portfolio due to interest rate movements.

Stock market and analyst opinion

The shares of LEG Immobilien increased by 2.4 percent to 72.56 euros in XETRA trading on Monday. Compared to the closing price of the previous Friday, the shares temporarily rose by 0.40 percent to 71.16 euros. In the previous week, however, shares fell almost 12 percent, marking their lowest level in a year. The decline was caused by rising interest rate fears after the yield on 10-year federal bonds rose to 2.93 percent. Analyst Neil Green from JPMorgan described LEG Immobilien's annual figures as solid, but expressed the expectation that the market would not remain stable if bond yields remained high. The developments surrounding LEG Immobilien therefore show both positive business figures and challenges in the current market environment.