LEG Immobilien SE: Record profits and new investments for 2025!

LEG Immobilien SE: Record profits and new investments for 2025!

LEG Immobilien SE is optimistic about the coming quarters and reports positive business development in the first quarter of 2025. With a remarkable increase in adjusted operating profit (AFFO) of almost a third compared to the previous year, the company shows its strong market position. The clear reason given for this development is the integration of the BCP housing stock, the rental growth in LEG's core portfolio and strict cost discipline. While the investment level was slightly reduced, investments in the first quarter of 2025 amounted to 7.51 euros per square meter, compared to 7.58 euros per square meter in the previous year. Marketscreener reports that LEG is planning investments of at least 35 euros per square meter for the year as a whole.

LEG's portfolio includes around 166,300 rental properties in Germany, which mainly consist of the rental of residential and commercial units as well as garages. The last reported closing price was 75.05 euros, a decrease of 2.09% compared to the previous price of 76.48 euros. The average price target for the share is EUR 89.11, which represents an upside of 18.74%.

Successful financial year 2024

Looking back at the 2024 financial year, in which LEG achieved an operating profit from real estate (AFFO) of 200.4 million euros - an increase of 10.6% compared to 181.2 million euros in 2023 - the company continues to show strong foundations. Investors Plus reports, that the vacancy rate was reduced to just 2.3% and rents increased by 3.4%. These are positive indicators of the company's stability and profitability.

For 2025, an expected AFFO of between 205 and 225 million euros is anticipated, underlining the positive results of the BCP integration, which is proceeding according to plan and allows further improvements to be expected by 2026.

Sustainability and investment plans

LEG Immobilien SE not only focuses on growth, but also on sustainability. The company plans to save around 6,000 tons of CO2 by the end of 2025. The average cost of financing is 1.49% with a term of 5.7 years, and net debt has fallen by 2.2% to around 8.8 billion euros. The loan-to-value (LTV) improved to 47.9%. LEG focuses on affordable housing, especially for people with small and medium incomes, which is both socially and economically important.

The dividend proposal for 2024 is 2.70 euros per share, and the gross return on the real estate portfolio is 4.9%. LEG currently manages around 167,000 rental apartments and therefore represents a significant contribution to the housing market in Germany.