LEG Immobilien SE recorded stable business development in the first nine months of 2026. Despite a challenging framework for housing companies, the company reaffirmed its financial and operational targets for the full year. Against this backdrop, rating agency Moody's upgraded the company's investment-grade rating from Baa2 to Baa1.
The key earnings metric AFFO improved by 4.9 per cent to EUR 190.1 million in the first three quarters, up from EUR 181.3 million in the corresponding period of the previous year. FFO I remained largely unchanged at EUR 370.0 million compared to the prior-year figure of EUR 370.7 million. Net cold rent increased by 3.6 per cent to EUR 712.4 million.
Operational management metrics
On a like-for-like basis, in-place rent rose by 3.9 per cent, of which 50 basis points resulted from the regular adjustment of cost rents for subsidised housing. For the full year, the group is targeting an increase of between 3.8 and 4.0 per cent. The average net cold rent stands at EUR 7.29 per square metre, corresponding to a monthly rent of around EUR 460 for an average unit of 63 square metres. EPRA vacancy decreased to 2.5 per cent.
- —Investments in maintenance and modernisation of EUR 292.2 million in the first nine months
- —EPRA NTA per share as at 30 September at EUR 138.25 compared with EUR 137.14 at year-end 2025
- —Gross yield of the total property portfolio at 4.9 per cent
- —Disposal proceeds since the beginning of the year totalling around EUR 190 million
Transactions and refinancing profile
As part of its programme to dispose of a total of 5,000 units, LEG has concluded agreements for around 1,300 flats since the beginning of the year. In addition, the 193,000-square-metre Glasmacherareal site in Dusseldorf was sold to a joint venture between Hines and Vastint. The payment of the purchase price is linked to project progress and includes an earn-out provision if defined space thresholds are exceeded.
Lars von Lackum, Chief Executive Officer of the company, emphasised that the company is on track with the capital-preserving strategy it has pursued since 2022 and is directing capital to where it yields the highest return. For the second half of the year, the company projects a portfolio devaluation of up to one percentage point due to inflation and interest rates, resulting in an expected neutral valuation result for the full year.
Net debt in relation to property assets stood at 46.5 per cent as at the reporting date. Average financing costs were 1.82 per cent with a remaining term of liabilities of 5.4 years. Based on available liquidity and existing credit facilities, the company reports no further refinancing requirements until autumn 2027; the next bond maturity of EUR 500 million is not due until November 2027.
