Half Year 2026 LEG Immobilien SE Earnings Call Transcript

Aug 4, 2026 / 08:00 AM GMT

Release Date Price: €52.25

Transcript

Key Points

Positve

Like-for-like rent growth of 3.7% in H1 2026, within the full-year guidance corridor, with 50 basis points from cost rent adjustments.
APRA vacancy declined by 20 basis points to 2.3%, indicating strong demand and tight supply in the German residential market.
Adjusted EBITDA grew by 2.3% to EUR368.1 million, with an EBITDA margin of 77.8%, in line with the full-year target of around 78%.
Portfolio valuation increased by 0.7% (EUR135 million), marking the fourth consecutive positive revaluation, confirming recovery in German residential values.
LTV reduced to 45.5%, down 210 basis points year-on-year, effectively at the target level of around 45%, with a clear path to reach the target by year-end.
Disposals of EUR42 million were completed at or above book value, and the disposal program of up to 5,000 units remains on track.
The Fraunhofer Institute confirmed that the Termeus Pro AI thermostat saves an average of 14% in energy consumption, supporting green ventures growth.
Strong liquidity position of over EUR450 million, with no 2026 maturities left and 2027 maturities partially covered.
Full-year guidance for AFFO (EUR220-240 million) and FFO1 (EUR475-495 million) is confirmed, with H2 expected to be stronger due to subsidies and lower investments.
The new syndicated revolving credit facility of EUR750 million extends backup liquidity to up to seven years, enhancing financial flexibility.

Negative

AFFO declined 12.7% year-on-year to EUR110.5 million in H1, impacted by higher cash interest costs and CapEx phasing.
Net cash interest increased by EUR10.3 million due to rising refinancing costs and lower interest income, reflecting the gradual upward reset of funding costs.
The transaction market remains challenging, with low volumes and buyer unwillingness to notarize deals, delaying larger portfolio disposals.
Geopolitical tensions and higher inflation expectations have led to a more moderate valuation pace (0.7% vs. 1.8% in H2 2025), with no H2 valuation guidance provided.
The Scripp dividend take-up was lower at 28.6% (vs. prior year), and the dividend payment will cause a temporary LTV uptick in Q3.
Subsidies recognized in H1 were only EUR0.5 million versus EUR3.3 million last year, with the bulk expected in H2, creating phasing uncertainty.
The biomass plant subsidiary negatively impacted results due to higher wood prices, contributing to a EUR2.8 million negative other effect.
Rent growth is likely to land at the lower end of the guidance range (3.8-4%) as the upper end would require an uptick in churn, which is not expected.
The company is not willing to sell assets below book value, which may limit disposal volumes and delay deleveraging progress.
Green ventures are still not contributing positively to FFO1, with breakeven targeted for 2026 but no H1 numbers disclosed, and the renovation segment faces challenges.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

LEGn.DE - LEG Immobilien SE
Half Year 2026 LEG Immobilien SE Earnings Call
Aug 04, 2026 / 08:00AM GMT

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Presentation
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Unidentified_1 [1]
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Good morning, everyone, and welcome to our earnings call. As always, we have LG's entire management team on the call, our CEO, Lars von Lakum our CFO, Kathrin Kuhlings and our COO, Volker Wiegel.

You will find the quarterly report as well as the presentation in the Investor Relations section of our website.

Please note, there is a legal disclaimer on Page 2 of the presentation.

And with that, I would like to hand it over to you, Lars.

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Unidentified_2 [2]
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Thank you, Karen. Good morning, everyone, and thank you for joining

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