LEG Immobilien (DE:LEG)
XETRA:LEG
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LEG Immobilien
(XETRA:LEG)
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Rating:63Neutral
Price Target:
€61.00
▲(2.01% Upside)
Action:ReiteratedDate:03/20/26
The score is anchored by solid financial durability (positive cash flow despite volatile earnings) and an attractive valuation (very low P/E and strong dividend yield). These positives are balanced by weak technicals (price below key moving averages with negative momentum) and moderate execution risks noted on the earnings call, including higher interest costs and disposal-market friction.
Positive Factors
Recurring cash-generative rental model
LEG’s core rental business produces stable operating and free cash flow across cycles. Recurring rent collections and ancillary income provide a durable cash base that funds maintenance, dividend distributions, and selective value‑add investments, supporting resilience over 2–6 months and beyond.
Negative Factors
Structural leverage
LEV is structurally elevated for a real estate owner, meaning earnings and equity returns are highly sensitive to interest rates and valuation shifts. High leverage constrains strategic optionality, raises refinancing exposure and can amplify downside in prolonged market stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring cash-generative rental model
LEG’s core rental business produces stable operating and free cash flow across cycles. Recurring rent collections and ancillary income provide a durable cash base that funds maintenance, dividend distributions, and selective value‑add investments, supporting resilience over 2–6 months and beyond.
Read all positive factors
LEG Immobilien (LEG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€4.52B
Dividend Yield4.45%
Average Volume (3M)178.45K
Price to Earnings (P/E)3.2
Beta (1Y)0.33
Revenue Growth6.91%
EPS GrowthN/A
CountryDE
Employees1,920
SectorGeneral
Sector StrengthN/A
IndustryReal Estate - Services
Share Statistics
EPS (TTM)-5.16
Shares Outstanding75,570,800
10 Day Avg. Volume167,519
30 Day Avg. Volume178,450
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.54
Price to Sales (P/S)3.13
P/FCF Ratio10.53
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€78.55Price Target Upside31.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)6.24
Revenue Forecast (FY)€955.52M
LEG Immobilien Business Overview & Revenue Model
Company Description
LEG Immobilien AG, together with its subsidiaries, operates as an integrated property company in Germany. The company engages in the performance of services and management of equity investments; property management and location development; perfor...
How the Company Makes Money
LEG primarily makes money from rental operations: it earns recurring income from residential tenants through contract rents, plus ancillary recoverable service charges (e.g., operating and heating-related costs that are billed to tenants where per...
LEG Immobilien Earnings Call Summary
Earnings Call Date:Mar 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call emphasized strong operational and financial results (record AFFO, rent growth, margin outperformance, improved LTV and confirmed guidance) and outlined credible midterm growth levers (subsidy run-offs, value-add businesses, and a technology/digitalization program). Key near-term challenges include higher interest costs, slower transaction liquidity that lengthens disposals, one-off integration costs and a temporary negative drag from Green Ventures. On balance, positive execution on core metrics and a clear plan to manage refinancing and deleveraging outweigh the challenges.Positive Updates
Record AFFO and Strong Earnings Growth
AFFO of EUR 220.5 million (+10% YoY), the highest level in company history; FFO I of EUR 481.5 million (+5.2% YoY).
Negative Updates
Higher Financing Costs and Interest Headwind
Net cash interest rose by EUR 12 million; average interest cost increased to 1.66% (+17 bps). Management acknowledges higher interest costs ahead and refinancing risk for upcoming maturities.
Read all updates
Q4-2025 Updates
Positive
Negative
Record AFFO and Strong Earnings Growth
AFFO of EUR 220.5 million (+10% YoY), the highest level in company history; FFO I of EUR 481.5 million (+5.2% YoY).
Read all positive updates
Company Guidance
LEG reconfirmed its 2026 guidance and key targets: AFFO €220–240m, FFO I €475–495m, adjusted EBITDA margin ~78% and like‑for‑like rent growth 3.8–4.0%; investments to exceed €35/sqm (2025: €36.11/sqm; total ~€400m), maintenance/capex split (CapEx €228m; maintenance €175m), and continued disposals (up to 5,000 units program — 3,100 units sold in 2025 for >€250m; YTD ~950 units ~€70m); balance sheet targets include LTV ~45% (end‑2025: 46.8%), ICR 4.3x, average debt maturity 5.5 years, liquidity >€800m with €750m undrawn RCF and average interest cost 1.66% (2025); the board will propose a €2.92/share dividend (100% AFFO payout, cash or scrip), sustainability targets of ~7,600 t CO2 reduction in 2026 and a 20% cut in relative CO2 saving costs by 2029, and medium/long‑term drivers including tech/digitalization (expected to be cash‑positive from 2028 and >€10m AFFO contribution by 2030) and Green Ventures (cumulative ~€20m target by 2028).LEG Immobilien Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.49B | 1.30B | 1.24B | 1.15B | 961.70M |
| Gross Profit | 556.30M | 621.40M | 579.70M | 412.10M | 521.60M |
| EBITDA | 1.32B | 341.10M | -1.80B | 509.10M | 376.00M |
| Net Income | 1.46B | 66.00M | -1.57B | 234.00M | 1.72B |
Balance Sheet | |||||
| Total Assets | 21.16B | 19.59B | 19.30B | 21.36B | 20.55B |
| Cash, Cash Equivalents and Short-Term Investments | 756.50M | 305.80M | 277.50M | 360.50M | 673.60M |
| Total Debt | 10.16B | 9.72B | 9.38B | 9.46B | 8.89B |
| Total Liabilities | 12.40B | 12.19B | 11.82B | 12.28B | 11.60B |
| Stockholders Equity | 8.69B | 7.37B | 7.46B | 9.06B | 8.93B |
Cash Flow | |||||
| Free Cash Flow | 443.40M | 417.70M | 432.40M | 311.10M | 342.40M |
| Operating Cash Flow | 462.40M | 436.50M | 447.90M | 389.00M | 353.70M |
| Investing Cash Flow | 232.90M | -604.20M | -421.50M | -1.06B | -2.75B |
| Financing Cash Flow | -245.70M | 197.10M | -111.10M | 356.40M | 2.74B |
LEG Immobilien Technical Analysis
Negative
59.80
Price Trends
62.26
Negative
62.50
Negative
66.04
Negative
Market Momentum
-1.31
Negative
51.35
Neutral
81.26
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LEG, the sentiment is Negative. The current price of 59.8 is above the 20-day moving average (MA) of 57.85, below the 50-day MA of 62.26, and below the 200-day MA of 66.04, indicating a neutral trend. The MACD of -1.31 indicates Negative momentum. The RSI at 51.35 is Neutral, neither overbought nor oversold. The STOCH value of 81.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:LEG.
LEG Immobilien Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | €254.52M | 4.42 | 4.43% | 0.39% | 20.83% | -54.40% | |
70 Outperform | €1.67B | 3.69 | 11.82% | ― | 0.44% | ― | |
63 Neutral | €4.52B | 3.20 | 18.02% | 4.45% | 6.91% | ― | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
52 Neutral | €19.62B | 5.49 | 14.53% | 5.08% | 22.80% | ― | |
49 Neutral | €6.24B | 23.97 | -0.36% | ― | -9.44% | 96.54% | |
45 Neutral | €25.17M | -0.06 | -62.13% | ― | ― | ― |
* General Sector Average
DE:LEG
LEG Immobilien
59.80
-7.07
-10.58%
DE:VNA
Vonovia
23.13
-2.67
-10.34%
DE:GYC
Grand City Properties SA
9.98
0.03
0.30%
DE:VIH1
VIB Vermoegen AG
7.70
-0.24
-3.02%
DE:ADJ
ADLER Group
0.17
-0.04
-20.57%
DE:O5G
CPI PROPERTY GROUP S.A.
0.75
-0.07
-9.15%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.