LEG Immobilien (LEG) AI Stock Analysis

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LEG Immobilien

(LSE:LEG)

Rating:63Neutral

Price Target:

€76.00

▲(8.34% Upside)

LEG Immobilien's overall stock score of 63 reflects a stable yet cautious outlook. The company's strong cash flow and recovery in operational efficiency are significant positives. However, high leverage and technical indicators suggest potential risks. The balanced sentiment from the earnings call, with strong AFFO growth and strategic integration, supports the company's resilience in a challenging market environment.

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

€5.30B

Dividend Yield3.89%

Average Volume (3M)142.07K

Price to Earnings (P/E)20.8

Beta (1Y)0.48

Revenue Growth3.25%

EPS GrowthN/A

CountryDE

Employees1,920

SectorReal Estate

Sector Strength59

IndustryReal Estate - Services

Share Statistics

EPS (TTM)1.22

Shares Outstanding75,570,800

10 Day Avg. Volume139,792

30 Day Avg. Volume142,067

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

€92.08

Price Target Upside31.26% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering13

LEG Immobilien Business Overview & Revenue Model

Company DescriptionLEG Immobilien (LEG) is a prominent real estate company based in Germany, primarily engaged in the residential property sector. The company focuses on acquiring, managing, and developing residential properties, with a significant portfolio predominantly located in North Rhine-Westphalia. LEG aims to provide quality housing solutions while maintaining strong tenant relationships and ensuring sustainable growth in its operations.

How the Company Makes MoneyLEG Immobilien makes money primarily through rental income generated from its extensive portfolio of residential properties. The company leases apartments to individual tenants and collects rent as its main source of revenue. Additionally, LEG may engage in property sales, development projects, and ancillary services that complement its core rental business. Efficient property management and tenant services are crucial to maintaining occupancy rates and rental income. Strategic acquisitions and portfolio optimization also play a role in enhancing the company's revenue potential.

LEG Immobilien Earnings Call Summary

Earnings Call Date:Aug 07, 2025

(Q1-2025)

% Change Since: -3.07%|

Next Earnings Date:Nov 12, 2025

Earnings Call Sentiment Neutral

The earnings call presented several positive outcomes such as significant AFFO and rent growth, successful integration of BCP, and progress in the disposal program. However, challenges such as an increased LTV and sluggish investment levels were also noted. The overall sentiment is balanced with strong highlights countered by noteworthy lowlights.

Q1-2025 Updates

Positive Updates

Strong AFFO Growth

AFFO increased by 28.2% to EUR 62.3 million, driven by strong cash generation from core business and improved margins.

Net Cold Rent Increase

Net cold rent grew by 7.2% to EUR 229.5 million, supported by like-for-like growth and the integration of BCP.

Successful Integration of BCP

BCP is operationally and financially fully integrated, contributing EUR 12 million to rental growth.

Disposal Program Progress

Sold 1,500 units in Q1 with proceeds of EUR 125 million, with ongoing robust transaction activity in the German residential market.

EBITDA Margin Improvement

Adjusted EBITDA rose by 10% to EUR 173.4 million, with a margin improvement of 200 basis points to 75.6%.

Negative Updates

Increased LTV

LTV increased slightly to 48.4% due to technical accounting effects and full consideration of BCP.

Sluggish Investment Level

Investment levels were sluggish compared to Q1 2024, affecting the strong AFFO level.

Potential Yield Widening

Expectation of a yield widening due to rent growth outpacing nominal value growth for the year.

Company Guidance

In the Q1 2025 results call, the management reaffirmed the company's robust financial performance and strategic direction. They guided a 7% bottom-line growth, with a notable increase in cash generation from core business activities and a 28% boost in AFFO, partly due to a reduced investment level compared to Q1 2024. The integration of BCP contributed significantly, with a net cold rent increase of over 7% and a EUR 12 million rental growth addition. The company reiterated its investment guidance of at least EUR 35 per square meter for the full year, planning to enhance investments post-BCP integration. The like-for-like rent growth was guided between 3.4% to 3.6%, exceeding 4% for the free finance portfolio. The LTV increased to 48.4% due to technical accounting effects, but the company maintained its midterm target of 45%, supported by a disposal program of around 5,000 units. Despite geopolitical and macroeconomic challenges, the German residential market remained robust, with expected value increases between 0.5% to 1% in H1 2025. The management expressed confidence in navigating market volatility while upholding their financial guidance for 2025.

LEG Immobilien Financial Statement Overview

Summary

LEG Immobilien shows a mixed financial performance. While revenue growth and a recovery in EBIT and EBITDA are positive, high leverage and inconsistent return on equity pose risks. Strong cash flow generation enhances liquidity, but debt management remains crucial.

Income Statement

Positive

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.

Balance Sheet

Neutral

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.

Cash Flow

Positive

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	1.24B	1.15B	961.70M	860.80M
Gross Profit	621.40M	579.70M	412.10M	521.60M	427.20M
EBITDA	341.10M	-1.80B	509.10M	376.00M	401.10M
Net Income	66.00M	-1.57B	234.00M	1.72B	1.36B
Balance Sheet
Total Assets	19.59B	19.30B	21.36B	20.55B	15.28B
Cash, Cash Equivalents and Short-Term Investments	305.80M	277.50M	360.50M	673.60M	332.90M
Total Debt	9.72B	9.38B	9.46B	8.89B	5.87B
Total Liabilities	12.19B	11.82B	12.28B	11.60B	7.89B
Stockholders Equity	7.37B	7.46B	9.06B	8.93B	7.37B
Cash Flow
Free Cash Flow	417.70M	432.40M	311.10M	342.40M	310.50M
Operating Cash Flow	436.50M	447.90M	389.00M	353.70M	326.10M
Investing Cash Flow	-604.20M	-421.50M	-1.06B	-2.75B	-1.33B
Financing Cash Flow	197.10M	-111.10M	356.40M	2.74B	890.30M

LEG Immobilien Technical Analysis

Technical Analysis Sentiment

Negative

Last Price70.15

Price Trends

50DMA

72.97

Negative

100DMA

70.58

Negative

200DMA

74.45

Negative

Market Momentum

MACD

-0.93

Positive

RSI

41.22

Neutral

STOCH

20.02

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 70.15 is below the 20-day moving average (MA) of 71.23, below the 50-day MA of 72.97, and below the 200-day MA of 74.45, indicating a bearish trend. The MACD of -0.93 indicates Positive momentum. The RSI at 41.22 is Neutral, neither overbought nor oversold. The STOCH value of 20.02 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 (53)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LEG	63 Neutral	€5.30B	20.78	3.32%	3.89%	3.25%	―
Sector *	53 Neutral	$1.19B	3.49	-2.22%	6.01%	-2.19%	-157.35%
0FJC	―	€646.41M	47.62	1.19%	―	―	―
0QFT	―	€22.86B	―	-2.91%	―	―	―
GYC	74 Outperform	€1.83B	8.51	6.27%	―	-1.22%	―
AT1	70 Outperform	€3.51B	15.94	2.91%	―	-3.28%	―
O5G	51 Neutral	€7.29B	―	-3.87%	―	-6.54%	76.78%

* Real Estate Sector Average

Performance Comparison

DE:LEG

LEG Immobilien

70.15

-8.05

-10.30%

GB:0FJC

Patrizia Immobilien

7.39

0.66

9.81%

GB:0QFT

Vonovia

27.18

0.13

0.48%

DE:AT1

Aroundtown SA

3.21

1.26

64.62%

DE:GYC

Grand City Properties SA

10.94

-0.17

-1.53%

DE:O5G

CPI PROPERTY GROUP S.A.

0.82

0.00

0.00%

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.Date of analysis: Aug 07, 2025