LEG Immobilien ups full-year AFFO outlook, shares rise

Published 07/08/2025, 08:30
© Reuters

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.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.