(New: statements from the press conference, share price)
DÜSSELDORF (dpa-AFX) – The continued high demand for apartments in metropolitan areas is driving the real estate group LEG (LEG Immobilien). In 2025, results increased significantly thanks to higher rental income. The shareholders should also benefit from this and the dividend should increase significantly. Meanwhile, the company confirmed its goals for 2026 on Thursday when it presented the figures for 2025. The share was recently around 0.9 percent higher.
“We have done our homework in recent years and significantly strengthened our balance sheet,” said company boss Lars von Lackum, according to the statement. The company can therefore focus more intensively on growth again. In the medium term, LEG management sees considerable potential in additional services, but also through the expiry of commitment periods in the subsidized housing stock and the Digitalization.
For the current year, the LEG board continues to expect an operating result (AFFO) of 220 to 240 million euros – that would be a new record. In 2025, the key earnings figure for the company increased by 10 percent year-on-year to 220.5 million euros, as the company announced in Düsseldorf. The company wants to pay a dividend of 2.92 euros per share for 2025, after 2.70 euros in the previous year.
The net rent grew by 7.0 percent to almost 920 million euros in 2025. The rent on a comparable area rose from 6.81 euros per square meter to 7.04 euros. In the current year, rents are expected to increase by 3.8 to 4.0 percent, more than in 2025. This is mainly due to the fact that LEG can also increase rents in the subsidized portfolio this year. With around 28,000 subsidized units – a good 15 percent of the portfolio – LEG is one of the largest providers of social housing in Germany.
The commitment period for around 16,000 apartments will expire in 2028. The previously subsidized rents of an average of 5.41 euros per square meter should then be brought closer to the market rents in the privately financed area, it was said. The rents in these apartments could be increased by around 12 percent in 2028. This corresponds to additional rental growth of around one percentage point at the level of the overall portfolio. Even after 2028, LEG will remain one of the largest providers of subsidized housing in its core regions with 11,400 social housing units. The company will deal with hardship cases responsibly.
The bottom line was that the result for the period was around 1.46 billion euros, primarily thanks to a strong appreciation of the real estate portfolios. In 2024, LEG reported a profit of 68.9 million euros.
Meanwhile, the company is making good progress in reducing debt. The LTV – the ratio between net financial liabilities and the value of real estate – is expected to fall to 45 percent this year, von Lackum said at the press conference. At the end of 2025, LTV fell by 110 basis points to 46.8 percent. In addition to the appreciation of the real estate portfolio, the sale of apartments also contributed to debt reduction.
In 2025, the company completed or agreed to sell around 3,100 apartments for around 250 million euros. The real estate group plans to sell 5,000 residential units, including around 1,400 residential units in eastern Germany from the former Adler subsidiary. However, the transaction market continues to develop slowly, said the LEG boss. Individual apartment buildings through to small portfolios with a volume of two to around 30 million euros are in demand. Selling properties worth more than this is rather difficult.
At the end of 2025, the company owned a good 171,000 apartments, 4.4 percent more than in the previous year./mne/err/mis
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