LEG Immobilien: Strong rent increases despite geopolitical challenges!

LEG Immobilien: Strong rent increases despite geopolitical challenges!

LEG Immobilien SE held its Q1 results meeting on May 13, 2025, which reflected a balanced sentiment. The meeting highlighted both positive aspects and challenges that characterize the company's current situation. Loud TipRanks The article does not contain specific financial data or detailed results from the call, but does provide a general overview of the company's situation.

A series of financial key figures show that LEG Immobilien was able to achieve strong performance in the first quarter. For example, there was a net rent increase of over 7% and adjusted FFO (AFFO) growth of 28%. A significant indicator of operational growth is the increase in net rent by 7.2% to EUR 229.5 million and the recurring net operating income, which grew by 8.7% to EUR 186 million. These numbers were from Yahoo Finance provided.

Financial key figures in detail

• Like-for-Like Mietsteigerung: 3,5% im Q1
• Durchschnittliche Miete: 6,87 EUR pro Quadratmeter
• EBITDA-Marge: Verbesserung um 200 Basispunkte auf 75,6%
• Bargeld und Zahlungsmitteläquivalente: 830 Millionen EUR Ende März
• Loan-to-Value (LTV): Anstieg auf 48,4%
• Zinsdeckungsquote (ICR): Verbesserung auf 4,4-fach

The integration of BCP, which was completed both operationally and financially, also contributed EUR 12 million to rental growth. Other significant steps included refinancing two-thirds of BCP's financing at an average interest cost of 1.55%. Although the company is aiming for a target of 7% net profit growth for the year, the current situation is weighed down by geopolitical tensions and macroeconomic risks.

Strategic decisions and challenges

A key issue was the decision to sell parts of the portfolio, particularly in eastern Germany, including Leipzig. This decision was made due to insufficient scaling. The sale could be structured either as a complete portfolio or in parts. Additionally, two properties will be developed under the BCP deal; one in Grafenberg, which is to be sold after demolition, and one in Gerresheim, where negotiations with the city are ongoing.

Rent development also represents an important challenge. In the Q1 meeting it was emphasized that rent growth depends on the publication of new rent tables. Despite the challenges ahead, revaluations show positive trends with an expected increase of 0.5% to 1% in the first half of 2025. However, these positive expectations are in the context of a limited ability to expand externally due to balance sheet constraints, therefore the focus is on maximizing the value of existing assets.