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LEG Immobilien (DE:LEG)
XETRA:LEG
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LEG Immobilien (LEG) AI Stock Analysis

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DE:LEG

LEG Immobilien

(XETRA:LEG)

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Neutral 67 (OpenAI - 5.2)
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)

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
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
Cash flow is a relative strength with consistently positive operating cash flow and solid TTM free cash flow (~€460M), alongside improving leverage (debt-to-equity down vs 2024). However, reported profitability is highly volatile (notably the swing from a deep 2023 loss to unusually high net income/margins in 2025/TTM), reducing confidence in earnings sustainability; debt coverage by operating cash flow is also only modest (~0.25x).
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue1.36B1.49B1.30B1.24B1.15B961.70M
Gross Profit566.40M556.30M621.40M579.70M412.10M521.60M
EBITDA1.17B1.32B341.10M-1.80B509.10M376.00M
Net Income1.29B1.46B66.00M-1.57B234.00M1.72B
Balance Sheet
Total Assets20.81B21.16B19.59B19.30B21.36B20.55B
Cash, Cash Equivalents and Short-Term Investments457.60M756.50M305.80M277.50M360.50M673.60M
Total Debt9.75B10.16B9.72B9.38B9.46B8.89B
Total Liabilities11.97B12.40B12.19B11.82B12.28B11.60B
Stockholders Equity8.78B8.69B7.37B7.46B9.06B8.93B
Cash Flow
Free Cash Flow460.10M443.40M417.70M432.40M311.10M342.40M
Operating Cash Flow478.40M462.40M436.50M447.90M389.00M353.70M
Investing Cash Flow-19.30M232.90M-604.20M-421.50M-1.06B-2.75B
Financing Cash Flow-478.80M-245.70M197.10M-111.10M356.40M2.74B

LEG Immobilien Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price51.55
Price Trends
50DMA
53.52
Negative
100DMA
54.64
Negative
200DMA
57.81
Negative
Market Momentum
MACD
-0.40
Negative
RSI
51.34
Neutral
STOCH
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

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
€4.00B3.0315.43%5.66%2.65%408.35%
67
Neutral
€231.38M2.1311.69%0.53%48.31%125.34%
64
Neutral
€1.62B3.8911.65%3.16%0.72%89.13%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
55
Neutral
€17.84B5.1213.06%6.03%-20.27%
45
Neutral
€6.11B20.515.16%-11.60%
42
Neutral
€21.38M-0.07-64.67%58.52%-142.49%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
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
-0.72
-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.Date of analysis: Aug 04, 2026