Thursday, 13 November 2025
LEG Immobilien SE has reported a solid performance for the first nine months of 2025, confirming its full-year guidance and projecting continued earnings growth in 2026. The German residential landlord recorded an adjusted funds from operations (AFFO) of €181.3 million between January and September, an increase of 19.3% year-on-year. The improvement was driven by rental growth, the integration of the Brack Capital Properties portfolio, and increased revenue from value-add services. FFO I rose 12.6% to €370.7 million.
Rental income increased by 6.8% to €687.7 million, with comparable rents growing 3.6% in the free-financed segment. The EPRA vacancy rate remained low at 2.5%. LEG invested €291.9 million in maintenance and modernisation during the first nine months—around 10% more than in the prior-year period—as the company continues to prioritise portfolio upgrades and energy-efficiency measures.
LEG’s properties recorded a 4.1% increase in EPRA NTA per share since December 2024, supported by rising residential values in its markets. The company expects a valuation uplift of 1.5% to 2.0% in the second half of the year. Apartment disposals are accelerating, with roughly 2,200 units sold or agreed for sale in the first three quarters for €190 million. LEG maintains that sales will not be executed below book value.
The company reports that its financing position remains stable. Loan-to-value was 48.3% at the end of September, and all refinancing needs are covered until the end of 2026. Moody’s recently affirmed LEG’s Baa2 investment-grade rating and upgraded the outlook to positive.
LEG maintains its 2025 AFFO guidance of €215–225 million and has introduced an outlook for 2026, forecasting AFFO in the range of €220–240 million. The company expects to achieve an LTV of about 45% in 2026 and plans to continue investing more than €35 per square metre in portfolio improvements. Rental growth of 3.8–4.0% is forecast for 2026, with higher growth expected in subsequent years as subsidised units gradually exit regulated rent schemes.
