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Investing.com -- LEG Immobilien AG (ETR:LEGn) delivered a solid set of second-quarter results and nudged its full-year adjusted funds from operations (AFFO) guidance higher, even as like-for-like (LFL) rental growth slightly trailed internal targets.
The company’s shares rose 1% in Frankfurt trading as of 07:29 GMT.
LFL rental growth for the first half came in at 3.2% year-on-year, compared to 3.4% in full-year 2024 and just below the company’s guided range of 3.4%–3.6%.
LEG expects the full market adjustment to materialize in the third quarter. Cold rents rose 7% to €457.8 million, and free-financed units saw stronger growth of 3.7%.
The company lifted AFFO guidance to €215–225 million, from €205–225 million previously. The FFO I outlook remains at €470–490 million.
Jefferies analysts said LEG’s guidance raise comes amid “unsurprising Q2” results.
Recurring net operating income (NOI) increased 9.6% to €383.8 million, while adjusted EBITDA rose 11.1% year-on-year to €360 million. FFO I was up 10.7% to €241.2 million, or €3.23 per share, reflecting a 10% increase.
AFFO climbed 15.4% year-on-year to €126.6 million, or €1.70 per share, up 15%.
The EPRA vacancy rate was flat at 2.4%, down from 2.6% in the first quarter. In-place rent reached €6.93 per square meter, up from €6.87 in the first quarter and €6.80 at the end of 2024.
Valuation on a like-for-like basis rose 1.2%, ahead of the company’s expected range of +0.5% to +1%, and in line with Vonovia’s 1.1% increase. EPRA NTA per share rose 4% in the first half to €130.9.
LEG’s EPRA LTV declined to 51.3% from 51.8% at the end of 2024, while the company’s own LTV dropped 30 basis points to 47.6%. Recurring capex rose 6% year-on-year to €115 million.