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LEG Immobilien (DE:LEG)
XETRA:LEG
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LEG Immobilien
(XETRA:LEG)
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Rating:70Outperform
Price Target:
€71.00
▲(12.25% Upside)
LEG Immobilien's overall stock score is driven by strong financial performance and positive earnings call sentiment, highlighting AFFO growth and a positive rating outlook. However, technical analysis indicates bearish momentum, which tempers the overall score. The stock's attractive valuation further supports its potential as an investment.
Positive Factors
AFFO Growth
Consistent AFFO growth indicates strong cash generation and financial health, supporting sustainable dividends and reinvestment opportunities.
Positive Rating Outlook
A positive rating outlook from Moody's enhances the company's creditworthiness, reducing borrowing costs and supporting financial stability.
Strong Rent Growth
Strong rent growth boosts revenue and profitability, reinforcing the company's market position and ability to invest in property improvements.
Negative Factors
Challenges in Rental Growth
Underperformance in rental growth targets may indicate market saturation or competitive pressures, potentially affecting future revenue streams.
Higher Interest Costs
Rising interest costs can strain cash flow and reduce profitability, impacting the company's ability to finance growth and manage debt effectively.
Decrease in Subsidies
A reduction in subsidies could limit financial flexibility and increase reliance on internal cash flows or external financing for future projects.
LEG Immobilien (LEG) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€4.86B
Dividend Yield4.22%
Average Volume (3M)178.45K
Price to Earnings (P/E)8.0
Beta (1Y)0.34
Revenue Growth6.91%
EPS GrowthN/A
CountryDE
Employees1,920
SectorReal Estate
Sector Strength53
IndustryReal Estate - Services
Share Statistics
EPS (TTM)8.50
Shares Outstanding75,570,800
10 Day Avg. Volume167,519
30 Day Avg. Volume178,450
Financial Highlights & Ratios
PEG Ratio-0.88
Price to Book (P/B)0.82
Price to Sales (P/S)4.66
P/FCF Ratio14.55
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€86.79Price Target Upside37.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
LEG Immobilien Business Overview & Revenue Model
Company DescriptionLEG Immobilien AG, together with its subsidiaries, operates as an integrated property company in Germany. The company engages in the performance of services and management of equity investments; property management and location development; performance of services for third parties and housing industry services; and generation of electricity and heat. It also provides IT and management services for third-party. As of December 31, 2021, the company's property portfolio consisted of 166,189 residential units; 1,576 commercial units; and 45,438 garages and parking spaces in North Rhine-Westphalia. LEG Immobilien AG was founded in 1970 and is headquartered in Düsseldorf, Germany.
How the Company Makes MoneyLEG Immobilien generates revenue primarily through rental income from its extensive portfolio of residential properties. The company benefits from stable cash flows due to long-term lease agreements with tenants, which provide a consistent revenue stream. Additionally, LEG engages in property development and refurbishment projects that can lead to increased property values and higher rental yields. The company may also earn income through ancillary services related to property management. Strategic partnerships with local authorities, construction firms, and real estate service providers play a crucial role in enhancing its operational efficiency and expanding its market reach, further contributing to its overall earnings.
LEG Immobilien Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive overall sentiment with strong AFFO growth, a positive rating outlook, and successful asset disposals, though challenges such as lower-than-targeted rental growth and rising interest costs were noted.Q3-2025 Updates
Positive Updates
AFFO Growth on Track
The company is on track to achieve a 10% AFFO growth for 2025 and has projected an additional 5% growth in 2026.
Positive Moody's Rating Outlook
Moody's confirmed LEG Immobilien's Baa2 rating and revised their outlook to positive, recognizing efforts to protect the balance sheet and focus on cash.
Strong Rent Growth
Net cold rent grew by 6.8%, contributing to a strong EBITDA margin of 79.2% for the first 9 months.
Successful Disposals
Over 2,200 units were sold for around EUR 100 million, helping to bring down the Loan-to-Value (LTV) ratio.
Negative Updates
Challenges in Like-for-Like Rental Growth
The like-for-like rental growth was 3.1%, below the target range of 3.4% to 3.6% for the year.
Higher Interest Costs
Although the average interest rate remained low at 1.59%, absolute net cash interest rose by EUR 5.9 million due to increased debt and new financings.
Decrease in Subsidies
Subsidies are expected to decrease to around EUR 10 million in 2026 due to the cessation of new construction activities.
Company Guidance
During the LEG Immobilien Q3 2025 Conference Call, the company reaffirmed its guidance for the year and outlined expectations for 2026. Key financial metrics included an anticipated AFFO growth of 10% for 2025 and an additional 5% for 2026. The company remains committed to maintaining AFFO as its core KPI due to its focus on cash generation. LEG Immobilien also projected a positive valuation result of 1.5% to 2% for the second half of 2025 and aimed to bring down its Loan-to-Value (LTV) ratio to 45% by 2026 through strategic disposals. The net cold rent grew by 6.8% year-on-year, contributing to a strong EBITDA margin of 79.2% for the first nine months, with an expected full-year margin of 77%. The company also highlighted the recent confirmation of its Baa2 rating by Moody's, with a revised outlook to positive, acknowledging its efforts in maintaining a robust balance sheet. Lastly, LEG Immobilien outlined its investment strategy, spending over EUR 35 per square meter, which aligns with its historical investment levels, aiming to foster future rent growth.LEG Immobilien Financial Statement Overview
Summary
LEG Immobilien demonstrates strong revenue growth and improved profitability in the TTM, with a stable balance sheet and effective cash flow management. While there are some operational challenges, the company maintains a healthy financial position with potential for continued growth.Income Statement
LEG Immobilien shows strong revenue growth with a TTM increase of 1.76% and a consistent gross profit margin around 48%. The net profit margin improved significantly in the TTM to 19% from 5% in the previous year, indicating enhanced profitability. However, the EBIT margin has fluctuated, suggesting some operational challenges.75
Positive
Balance Sheet
The company's debt-to-equity ratio has improved to 1.30 from 1.32, indicating a slight reduction in leverage. Return on equity remains modest at 3.41% in the TTM, reflecting stable but not exceptional returns. The equity ratio is healthy, suggesting a solid capital structure.65
Positive
Cash Flow
Free cash flow growth is positive at 4.94% in the TTM, showing improved cash generation. The operating cash flow to net income ratio is low at 0.13, indicating potential challenges in converting income to cash. However, the free cash flow to net income ratio is strong at 0.95, suggesting efficient cash management.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
63.25
Price Trends
66.65
Negative
69.02
Negative
70.02
Negative
Market Momentum
-1.13
Positive
35.10
Neutral
20.66
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 63.25 is below the 20-day moving average (MA) of 65.20, below the 50-day MA of 66.65, and below the 200-day MA of 70.02, indicating a bearish trend. The MACD of -1.13 indicates Positive momentum. The RSI at 35.10 is Neutral, neither overbought nor oversold. The STOCH value of 20.66 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | €4.86B | 8.00 | 15.11% | 4.22% | 6.91% | ― | |
68 Neutral | €1.82B | 4.47 | 14.70% | ― | 0.44% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | €3.34B | 4.60 | 9.56% | ― | -1.82% | ― | |
59 Neutral | €616.36M | 28.46 | ― | 4.69% | 0.23% | ― | |
58 Neutral | €21.69B | 56.23 | 10.56% | 4.71% | 22.80% | ― | |
51 Neutral | €6.44B | ― | -0.39% | ― | -9.69% | 97.58% |
* Real Estate Sector Average
DE:LEG
LEG Immobilien
63.25
-21.42
-25.29%
DE:PAT
Patrizia Immobilien
7.34
0.12
1.69%
DE:VNA
Vonovia
25.90
-3.03
-10.48%
DE:AT1
Aroundtown SA
3.09
0.26
9.19%
DE:GYC
Grand City Properties SA
10.84
-1.22
-10.12%
DE:O5G
CPI PROPERTY GROUP S.A.
0.79
0.01
1.28%
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.