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LEG Immobilien
(XETRA:LEG)
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Rating:67Neutral
Price Target:
€58.00
▲(12.51% Upside)
Action:Reiterated
Date:08/04/26
The score is driven primarily by mixed financial performance—strong and stable cash generation and improving leverage, but highly volatile reported profitability that raises sustainability concerns. The earnings call was supportive with guidance reaffirmed and strong operating KPIs (rent growth and low vacancy), though higher interest costs and weaker H1 AFFO/FFO I temper confidence. Valuation is a key positive (very low P/E and high dividend yield), while technical indicators are neutral-to-soft with negative MACD and price below longer-term moving averages.
Positive Factors
Strong cash generation
Sustained operating cash flow and ~€460m TTM free cash flow provide durable internal funding for capex, modernization, dividends and debt servicing. Reliable cash generation reduces refinancing dependence and supports operational resilience across business cycles.
Negative Factors
Volatile reported profitability
Earnings that swing materially due to valuation movements reduce predictability of profits and can mask underlying operating performance. Heavy reliance on fair‑value gains risks reversals in tougher markets, impacting distributable earnings, covenants and investor confidence over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Sustained operating cash flow and ~€460m TTM free cash flow provide durable internal funding for capex, modernization, dividends and debt servicing. Reliable cash generation reduces refinancing dependence and supports operational resilience across business cycles.
Read all positive factors
LEG Immobilien (LEG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€4.00B
Dividend Yield5.61%
Average Volume (3M)178.45K
Price to Earnings (P/E)3.0
Beta (1Y)0.44
Revenue Growth2.65%
EPS Growth408.35%
CountryDE
Employees1,940
SectorGeneral
Sector StrengthN/A
IndustryREIT - Residential
Share Statistics
EPS (TTM)17.15
Shares Outstanding76,848,470
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
€73.84Price Target Upside43.24% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)6.43
Revenue Forecast (FY)€960.16M
LEG Immobilien Business Overview & Revenue Model
Company Description
LEG Immobilien SE operates as a comprehensive real estate enterprise throughout Germany. Its activities span managing equity investments and providing a range of services, alongside expertise in property administration and site development. The co...
How the Company Makes Money
LEG primarily generates revenue from renting out residential properties. The core revenue stream is net cold rent (base rent) paid by tenants for apartments, supplemented by ancillary cost pass-throughs (operating and utility charges billed to ten...
LEG Immobilien Earnings Call Summary
Earnings Call Date:Aug 04, 2026
(Q2-2026)
| Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
Overall the call communicates a predominantly positive operational and financial trajectory: management reconfirmed full-year guidance, delivered solid rent growth, low vacancy, disciplined deleveraging (LTV ~45.5%), a modest positive valuation and robust liquidity and financing arrangements. The primary negatives are H1 AFFO compression and higher interest costs driven by market-rate refinancing, subsidy phasing, and weak transaction markets slowing disposals — many of which management frames as timing or market-driven rather than structural. Given guidance confirmation, balance sheet progress, and operational resilience, positives outweigh the temporary and market-related headwinds.Positive Updates
Like-for-like Rent Growth
Like-for-like net cold rent grew 3.7% in H1 2026 (reported 3.4%), with 50 basis points attributable to cost rent adjustments; average rent per sqm rose to EUR 7.21.
Negative Updates
AFFO and FFO I Declines in H1
AFFO fell 12.7% YoY to EUR 110.5 million in H1; FFO I declined 4.4% to EUR 230.5 million — both affected by phasing (CapEx, subsidies) and higher financing costs in H1.
Read all updates
Q2-2026 Updates
Positive
Negative
Like-for-like Rent Growth
Like-for-like net cold rent grew 3.7% in H1 2026 (reported 3.4%), with 50 basis points attributable to cost rent adjustments; average rent per sqm rose to EUR 7.21.
Read all positive updates
Company Guidance
LEG reconfirmed its 2026 guidance: AFFO €220–240m and FFO I €475–495m with an adjusted EBITDA margin around 78% (H1: 77.8%; adjusted EBITDA €368.1m), and reiterated rent growth guidance toward ~3.8–4.0% (H1 like‑for‑like 3.7%; net cold rent H1 €473.4m), while reporting EPRA vacancy 2.3%, portfolio revaluation +0.7% (H1), and an LTV target of ~45% (H1 45.5% with a temporary Q3 uptick expected due to the dividend); liquidity remains >€450m (scrip retained €63.1m, 28.6% take‑up), H1 AFFO €110.5m (‑12.7% YoY) and FFO I €230.5m (‑4.4% YoY), H1 investments €202m (€18.19/sqm; full‑year target >€35/sqm) with CapEx €112.3m/€10.11sqm and maintenance €89.7m/€8.08sqm (cap ratio 56%), disposals YTD €78m (≈1,000 units; program up to 5,000 units), financing closed €450m (avg maturity 9.3y, avg rate 3.9%), new €750m RCF (5+1+1), average interest cost 1.82%, avg debt maturity 5.7y, interest cover 4.0x — management expects H2 to be meaningfully stronger (including ~€10m of subsidies) and confirmed guidance across all line items.LEG Immobilien Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.36B | 1.49B | 1.30B | 1.24B | 1.15B | 961.70M |
| Gross Profit | 566.40M | 556.30M | 621.40M | 579.70M | 412.10M | 521.60M |
| EBITDA | 1.17B | 1.32B | 341.10M | -1.80B | 509.10M | 376.00M |
| Net Income | 1.29B | 1.46B | 66.00M | -1.57B | 234.00M | 1.72B |
Balance Sheet | ||||||
| Total Assets | 20.81B | 21.16B | 19.59B | 19.30B | 21.36B | 20.55B |
| Cash, Cash Equivalents and Short-Term Investments | 457.60M | 756.50M | 305.80M | 277.50M | 360.50M | 673.60M |
| Total Debt | 9.75B | 10.16B | 9.72B | 9.38B | 9.46B | 8.89B |
| Total Liabilities | 11.97B | 12.40B | 12.19B | 11.82B | 12.28B | 11.60B |
| Stockholders Equity | 8.78B | 8.69B | 7.37B | 7.46B | 9.06B | 8.93B |
Cash Flow | ||||||
| Free Cash Flow | 460.10M | 443.40M | 417.70M | 432.40M | 311.10M | 342.40M |
| Operating Cash Flow | 478.40M | 462.40M | 436.50M | 447.90M | 389.00M | 353.70M |
| Investing Cash Flow | -19.30M | 232.90M | -604.20M | -421.50M | -1.06B | -2.75B |
| Financing Cash Flow | -478.80M | -245.70M | 197.10M | -111.10M | 356.40M | 2.74B |
LEG Immobilien Technical Analysis
Neutral
51.55
Price Trends
53.52
Negative
54.64
Negative
57.81
Negative
Market Momentum
-0.40
Negative
51.34
Neutral
55.50
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LEG, the sentiment is Neutral. The current price of 51.55 is below the 20-day moving average (MA) of 52.71, below the 50-day MA of 53.52, and below the 200-day MA of 57.81, indicating a neutral trend. The MACD of -0.40 indicates Negative momentum. The RSI at 51.34 is Neutral, neither overbought nor oversold. The STOCH value of 55.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | €4.00B | 3.03 | 15.43% | 5.66% | 2.65% | 408.35% | |
67 Neutral | €231.38M | 2.13 | 11.69% | 0.53% | 48.31% | 125.34% | |
64 Neutral | €1.62B | 3.89 | 11.65% | 3.16% | 0.72% | 89.13% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | €17.84B | 5.12 | 13.06% | 6.03% | -20.27% | ― | |
45 Neutral | €6.11B | 20.51 | 5.16% | ― | -11.60% | ― | |
42 Neutral | €21.38M | -0.07 | -64.67% | ― | 58.52% | -142.49% |
* General Sector Average
DE:LEG
LEG Immobilien
53.30
-13.36
-20.05%
DE:VNA
Vonovia
21.30
-4.52
-17.52%
DE:GYC
Grand City Properties SA
9.86
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-6.81%
DE:VIH1
VIB Vermoegen AG
7.16
-0.14
-1.90%
DE:ADJ
ADLER Group
0.14
-0.06
-31.16%
DE:O5G
CPI PROPERTY GROUP S.A.
0.73
-0.09
-10.98%
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.