Education
About Us
Working with TipRanks
Follow Us
LEG Immobilien (DE:LEG)
XETRA:LEG
Top Page
LEG Immobilien
(XETRA:LEG)
Rating:72Outperform
Price Target:
€80.00
▲(11.81% Upside)
Positive Factors
Financial Performance
LEG Immobilien is on track to achieve 2024 guidance after solid Q3 figures.
Market Recovery
The transaction market continued to recover with additional sales volume.
Negative Factors
Cash Flow
AFFO was €152m, a decrease of 14% compared to the first nine months of FY23.
Earnings Decline
Adjusted EBITDA of €492m showed a decline of 3.1% over the prior year.
LEG Immobilien (LEG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€5.56B
Dividend Yield3.77%
Average Volume (3M)147.40K
Price to Earnings (P/E)9.2
Beta (1Y)0.46
Revenue Growth5.99%
EPS GrowthN/A
CountryDE
Employees1,920
SectorReal Estate
Sector Strength52
IndustryReal Estate - Services
Share Statistics
EPS (TTM)1.22
Shares Outstanding75,570,800
10 Day Avg. Volume145,743
30 Day Avg. Volume147,402
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€94.37Price Target Upside31.89% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
LEG Immobilien Business Overview & Revenue Model
Company DescriptionLEG Immobilien AG (LEG) is a leading real estate company based in Germany, primarily focused on the acquisition, development, and management of residential properties. The company operates mainly in the housing sector, managing a diverse portfolio of over 100,000 residential units across various regions in Germany. LEG's core services include property leasing, property management, and real estate development, catering to both private tenants and institutional investors.
How the Company Makes MoneyLEG Immobilien generates revenue through multiple streams primarily derived from its rental operations. The company's key revenue source is rental income from its extensive portfolio of residential properties, which includes long-term lease agreements with tenants. Additionally, LEG earns income from property management services and ancillary revenues such as maintenance fees and service charges. The company's focus on strategic acquisitions and developments in high-demand urban areas further enhances its income potential. Partnerships with local authorities and housing agencies also contribute to its earnings, particularly in the context of social housing initiatives and urban development projects.
LEG Immobilien Earnings Call Summary
Earnings Call Date:Aug 07, 2025
(Q1-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Positive
The earnings call was generally positive with strong financial performance indicators such as AFFO and EBITDA growth, alongside successful integration of BCP. However, the increase in leverage and slow investment ramp-up present challenges.Q1-2025 Updates
Positive Updates
Strong AFFO Growth
AFFO increased by a strong 28.2% to EUR 62.3 million, driven by strong performance and BCP integration.
Net Cold Rent Increase
Net cold rent grew by 7.2% or EUR 15.4 million to EUR 229.5 million, with BCP contributing EUR 12.3 million.
Positive EBITDA Margin Improvement
The adjusted EBITDA rose by 10% to EUR 173.4 million, with the EBITDA margin improving by 200 basis points to 75.6%.
Robust Disposal Program
Successfully disposed of 1,500 units in Q1 with proceeds of EUR 125 million, and a robust transaction market in Germany.
Successful BCP Integration
BCP is operationally and financially fully integrated, with refinanced two-thirds of BCP's financing, supporting rental growth.
Negative Updates
Increased Leverage
LTV increased slightly to 48.4% due to the full consolidation of BCP, raising concerns about leverage levels.
Slow Investment Ramp-Up
Investments per square meter were lower than expected at EUR 7.51, slightly declining by 0.9% and behind the annual run rate.
Geopolitical and Macroeconomic Risks
Despite geopolitical tensions and macroeconomic risks, the company anticipates robust transaction activity.
Company Guidance
During the Q1 2025 earnings call, LEG Immobilien AG's management provided guidance indicating a robust outlook for the fiscal year, with an expected bottom-line growth of 7%. Key metrics highlighted include a strong net cold rent increase of over 7%, which, alongside the full integration of BCP, contributed to a 28% boost in AFFO. Despite a sluggish start in investments compared to Q1 2024, the company reaffirmed its investment guidance of at least EUR 35 per square meter for the full year. Furthermore, they projected a like-for-like rent increase of 3.4% to 3.6%, and over 4% for their free finance portfolio. The company's LTV slightly rose to 48.4%, attributed to technical accounting effects and the full consideration of BCP. The company remains committed to reducing its LTV to 45% through an ongoing disposal program targeting around 5,000 units. Despite geopolitical and macroeconomic challenges, transaction activity in the German residential market remains strong, underpinned by stable cash flows and an anticipated value increase of 0.5% to 1% in H1 2025.LEG Immobilien Financial Statement Overview
Summary
LEG Immobilien shows a mixed financial performance. The income statement reflects a recovery from previous losses with positive EBIT and EBITDA, indicating improved operational efficiency. However, the balance sheet reveals high leverage, posing financial risks, while the cash flow statement highlights strong cash generation, enhancing liquidity.Income Statement
LEG Immobilien's income statement reveals a mixed performance. The company showed a consistent revenue growth trend over recent years, with a notable increase from 2023 to 2024. However, the net profit margin has been volatile, with a significant loss reported in 2023 due to a large negative EBIT. The recovery in 2024 is promising, as EBIT and EBITDA turned positive again, indicating an improvement in operational efficiency.65
Positive
Balance Sheet
The balance sheet indicates a substantial leverage position, with a high debt-to-equity ratio in recent years. This suggests potential financial risk due to high debt levels relative to equity. However, the equity ratio remains stable, indicating a reasonable proportion of equity financing. Return on equity has been inconsistent, impacted by fluctuating net income figures over the years.58
Neutral
Cash Flow
LEG Immobilien's cash flow statement shows robust operational cash flow, consistently covering net income. The free cash flow has remained positive, with a visible growth trend, especially from 2023 to 2024. The operating cash flow to net income ratio suggests efficient cash generation relative to earnings, enhancing the company's liquidity position.70
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.35B | 1.30B | 1.24B | 1.15B | 961.70M | 860.80M |
| Gross Profit | 648.50M | 621.40M | 579.70M | 412.10M | 521.60M | 427.20M |
| EBITDA | 1.02B | 341.10M | -1.80B | 509.10M | 376.00M | 401.10M |
| Net Income | 599.00M | 66.00M | -1.57B | 234.00M | 1.72B | 1.36B |
Balance Sheet | ||||||
| Total Assets | 20.65B | 19.59B | 19.30B | 21.36B | 20.55B | 15.28B |
| Cash, Cash Equivalents and Short-Term Investments | 633.60M | 305.80M | 277.50M | 360.50M | 673.60M | 332.90M |
| Total Debt | 10.03B | 9.72B | 9.38B | 9.46B | 8.89B | 5.87B |
| Total Liabilities | 12.90B | 12.19B | 11.82B | 12.28B | 11.60B | 7.89B |
| Stockholders Equity | 7.69B | 7.37B | 7.46B | 9.06B | 8.93B | 7.37B |
Cash Flow | ||||||
| Free Cash Flow | 412.50M | 417.70M | 432.40M | 311.10M | 342.40M | 310.50M |
| Operating Cash Flow | 435.00M | 436.50M | 447.90M | 389.00M | 353.70M | 326.10M |
| Investing Cash Flow | -168.50M | -604.20M | -421.50M | -1.06B | -2.75B | -1.33B |
| Financing Cash Flow | 141.50M | 197.10M | -111.10M | 356.40M | 2.74B | 890.30M |
LEG Immobilien Technical Analysis
Negative
71.55
Price Trends
72.47
Negative
72.19
Negative
73.34
Negative
Market Momentum
0.21
Positive
45.37
Neutral
26.01
Neutral
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 71.55 is below the 20-day moving average (MA) of 72.40, below the 50-day MA of 72.47, and below the 200-day MA of 73.34, indicating a bearish trend. The MACD of 0.21 indicates Positive momentum. The RSI at 45.37 is Neutral, neither overbought nor oversold. The STOCH value of 26.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:LEG.
LEG Immobilien Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €5.56B | 9.15 | 8.02% | 3.77% | 5.99% | ― | |
63 Neutral | $7.06B | 13.38 | -0.50% | 6.96% | 4.08% | -25.24% | |
| ― | €652.42M | 29.89 | 2.00% | ― | ― | ― | |
| ― | €23.34B | 62.83 | 1.29% | ― | ― | ― | |
75 Outperform | €1.89B | 4.62 | 11.68% | ― | 0.19% | ― | |
70 Outperform | €3.70B | 5.10 | 9.56% | ― | -1.82% | ― | |
51 Neutral | €7.29B | ― | -3.87% | ― | -6.54% | 76.78% |
* Real Estate Sector Average
Performance Comparison
DE:LEG
LEG Immobilien
71.55
-12.40
-14.77%
GB:0FJC
Patrizia Immobilien
7.48
-0.27
-3.48%
GB:0QFT
Vonovia
27.83
-2.21
-7.36%
DE:AT1
Aroundtown SA
3.39
1.09
47.39%
DE:GYC
Grand City Properties SA
11.02
-1.41
-11.34%
DE:O5G
CPI PROPERTY GROUP S.A.
0.82
<0.01
1.23%
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.