LEG Immobilien SE presented solid business results for the first half of 2026. As a result, the company confirmed its forecast targets for the full year. This development is largely driven by persistently high demand for affordable housing in LEG's core markets and the company's operational efficiency.
Lars von Lackum, CEO of LEG Immobilien SE, expressed satisfaction with the company's performance, emphasising that LEG continued to demonstrate consistently strong performance despite the complex economic and geopolitical environment. He explained that the positive development of operational and financial key figures indicated that the company's cash-oriented management model was functioning as planned. Furthermore, von Lackum highlighted that Adjusted Funds From Operations (AFFO) remained on target despite accelerated investments, which underlined the quality of earnings. LEG's corporate strategy, which focuses on affordable housing with a structural demand overhang, continuous operational cash generation, and disciplined capital allocation, remains unchanged. Acquisitions or organic growth would only be pursued if they promised greater value appreciation than the return of capital to shareholders.
Demand for affordable housing in LEG's markets remained high. The in-place rent on a like-for-like basis across the entire portfolio increased by 3.7 percent in the first half of 2026 to EUR 7.21 per square metre, up from EUR 6.96 in the first half of 2025. The average net rent of an LEG flat remains in the affordable housing segment, with an average monthly rent of approximately EUR 450. This underscores LEG's commitment to providing housing for middle and lower incomes.
The EPRA vacancy rate on a like-for-like basis decreased by 20 basis points compared to the previous year, reaching 2.3 percent, which reflects the high demand and efficient letting activities. The portfolio is therefore almost fully let. The adjusted EBITDA margin was 77.8 percent, confirming the earning power of LEG's management platform.
- —AFFO in the first half of 2026: EUR 110.5 million (H1-2025: EUR 126.6 million)
- —Investments in the first half of 2026: EUR 202 million (H1-2025: EUR 184.4 million)
- —FFO I in the first half of 2026: EUR 230.5 million (H1-2025: EUR 241.2 million)
- —Adjusted EBITDA in the first half of 2026: EUR 368.1 million (H1-2025: EUR 360.0 million)
The decline in AFFO compared to the previous year resulted from the deliberate continuity of investments. LEG expects a stronger second half, due to scheduled investment shifts and higher subsidies. Dr. Kathrin Köhling, CFO of LEG Immobilien SE, reiterated that LEG always makes investments based on operational and strategic necessity as well as financial rationale. She also highlighted the commitment to reducing the loan-to-value ratio to approximately 45 percent and underscored the priority of an attractive and sustainable dividend as an established dividend stock.
LEG's balance sheet proves stable even in volatile market phases. The Loan-to-Value (LTV) decreased to 45.5 percent as at 30 June 2026, a reduction of 130 basis points compared to year-end 2025 (46.8 percent). This brings the LTV closer to the target of approximately 45 percent for the full year 2026. Although a temporary increase in LTV is expected in the third quarter due to dividend payments, the company is adhering to its annual target. The average financing costs amounted to 1.82 percent as at 30 June 2026, with a remaining maturity of liabilities of 5.7 years. An equity ratio of 42.4 percent and a solid investment-grade rating (Moody's Baa2, outlook positive) underpin LEG's robust financing position. A routine revaluation of the residential portfolio as at 30 June 2026 showed a valuation result of +0.7 percent, which signals a stabilisation of property values and is in line with expectations.
