Wednesday, 13 May 2026
LEG Immobilien SE has confirmed its full-year 2026 outlook after reporting stable operating performance in the first quarter, supported by continued demand for affordable housing across its core German markets.
Like-for-like rental growth reached 3.7 percent year-on-year in the first quarter, while the EPRA vacancy rate remained low at 2.4 percent. Average in-place rent increased to EUR 7.15 per square metre, compared with EUR 6.90 a year earlier.
The company said the average monthly net rent for a typical LEG apartment remains around EUR 450, reflecting its focus on affordable housing for lower and middle-income households.
Adjusted EBITDA rose by 5.9 percent year-on-year to EUR 183.6 million, with the adjusted EBITDA margin improving to 77.4 percent from 75.6 percent in the same period last year. Net cold rent increased by 3.3 percent to EUR 237.1 million.
AFFO, which LEG uses as a key earnings indicator, totalled EUR 58.6 million in the quarter, down from EUR 62.3 million a year earlier. The company attributed the decline to a decision to bring forward more maintenance and modernisation investments into the first quarter in order to smooth project workloads over the year. Operating cash flow increased by 14.5 percent to EUR 126.3 million.
FFO I remained broadly stable at EUR 114.7 million.
LEG also reported further progress in strengthening its balance sheet. Loan-to-value decreased to 46.2 percent at the end of March 2026, compared with 46.8 percent at the end of 2025, while total financing liabilities fell by 4 percent. The company said all financing maturities for 2026 have already been addressed.
Cash and cash equivalents stood at EUR 508 million at the end of the quarter, alongside undrawn credit lines of EUR 750 million. Average financing costs remained low at 1.8 percent, with an average debt maturity of 5.8 years.
The company continued its disposal programme during the quarter, completing or agreeing the sale of around 1,000 residential units. LEG stated that disposals are focused on non-core assets and are generally targeted at or above book value.
In parallel, LEG continued expanding its sustainability and refurbishment initiatives. Its serial refurbishment joint venture RENOWATE secured its first contracts outside Germany through projects in Vienna, while termios.Pro expanded deployment of its AI-supported thermostat technology.
Looking ahead, LEG reaffirmed its full-year guidance for 2026. The company expects like-for-like rental growth of between 3.8 percent and 4.0 percent, an adjusted EBITDA margin of around 78 percent, and AFFO in the range of EUR 220 million to EUR 240 million.
Lars von Lackum, CEO of LEG Immobilien, said the company remained resilient despite ongoing geopolitical and economic uncertainty, supported by a disciplined cash-focused management approach and stable demand for affordable housing.
