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LEG Immobilien (DE:LEG)
XETRA:LEG
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LEG Immobilien
(XETRA:LEG)
Rating:65Neutral
Price Target:―
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
€5.57B
Dividend Yield3.31%
Average Volume (3M)246.64K
Price to Earnings (P/E)22.1
Beta (1Y)0.55
Revenue Growth3.25%
EPS GrowthN/A
CountryDE
Employees1,920
SectorReal Estate
Sector Strength65
IndustryReal Estate - Services
Share Statistics
EPS (TTM)0.99
Shares Outstanding74,469,666
10 Day Avg. Volume273,296
30 Day Avg. Volume246,644
Financial Highlights & Ratios
PEG Ratio0.80
Price to Book (P/B)0.77
Price to Sales (P/S)0.00
P/FCF Ratio13.67
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€86.25Price Target Upside13.64% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
LEG Immobilien Business Overview & Revenue Model
Company DescriptionLEG Immobilien AG is a leading German residential real estate company, primarily engaged in the acquisition, management, and development of residential properties. Based in Düsseldorf, Germany, the company operates mainly in the North Rhine-Westphalia region, offering quality and affordable housing solutions. LEG Immobilien focuses on providing rental housing and associated services to its tenants, catering to a diverse range of customer needs.
How the Company Makes MoneyLEG Immobilien makes money primarily through rental income from its extensive portfolio of residential properties. The company generates revenue by leasing apartments and homes to tenants, ensuring steady cash flow from rent payments. Additionally, LEG Immobilien enhances its revenue by offering ancillary services to tenants, such as property management, maintenance, and facility services. The company's strategic acquisitions and developments further contribute to its income stream by expanding its real estate portfolio and increasing rental opportunities. Partnerships with local municipalities and housing associations also play a role in supporting LEG's growth and revenue generation by facilitating access to desirable properties and enhancing community engagement.
LEG Immobilien Financial Statement Overview
Summary
LEG Immobilien's financial performance is mixed. The income statement shows recovery in 2024 with positive EBIT, but previous volatility and losses remain a concern. The balance sheet reveals high leverage, posing financial risks despite stable equity ratios. The cash flow is strong, with robust operational cash covering net income and growing free cash flow.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 | ||||
| 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 | EBIT |
| 325.50M | -1.86B | 628.10M | 2.25B | 1.54B | EBITDA |
| 341.10M | -1.80B | 509.10M | 376.00M | 401.10M | Net Income Common Stockholders |
| 66.00M | -1.57B | 234.00M | 1.72B | 1.36B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 305.80M | 277.50M | 360.50M | 673.60M | 332.90M | Total Assets |
| 19.59B | 19.30B | 21.36B | 20.55B | 15.28B | Total Debt |
| 9.72B | 9.38B | 9.46B | 8.89B | 5.87B | Net Debt |
| 9.41B | 9.10B | 9.10B | 8.21B | 5.54B | 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
Positive
75.90
Price Trends
70.18
Positive
74.20
Positive
81.13
Negative
Market Momentum
0.84
Positive
54.76
Neutral
49.46
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LEG, the sentiment is Positive. The current price of 75.9 is above the 20-day moving average (MA) of 74.20, above the 50-day MA of 70.18, and below the 200-day MA of 81.13, indicating a neutral trend. The MACD of 0.84 indicates Positive momentum. The RSI at 54.76 is Neutral, neither overbought nor oversold. The STOCH value of 49.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:LEG.
LEG Immobilien Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | €1.87B | 8.50 | 6.27% | ― | -1.22% | ― | |
69 Neutral | €28.66B | 14.14 | 17.10% | 2.12% | 7.42% | 15.61% | |
65 Neutral | €5.57B | 22.14 | 3.32% | 3.31% | 3.25% | ― | |
60 Neutral | $2.82B | 10.29 | 0.31% | 8508.26% | 5.91% | -17.42% | |
55 Neutral | €23.91B | ― | -2.91% | 3.13% | 23.19% | 82.41% | |
54 Neutral | $8.93B | ― | -4.68% | 0.17% | 6.08% | ― |
* Real Estate Sector Average
Performance Comparison
DE:LEG
LEG Immobilien
75.90
-8.11
-9.66%
DE:DWNI
Deutsche Wohnen
22.75
4.21
22.71%
DE:VNA
Vonovia
29.45
0.46
1.59%
DE:TLX
Talanx AG
114.20
43.27
61.01%
DE:GYC
Grand City Properties SA
11.20
-0.59
-5.00%
LEG Immobilien Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: 1.13%|
Next Earnings Date:Aug 07, 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.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.