LEG Immobilien SE: Strong start to the year confirms 2026 outlook

• Sustained high demand for affordable housing:

• Rental growth of 3.7% (l-f-l)

• Consistently low EPRA vacancy rate of 2.4% (l-f-l)

• Average LEG apartment remains affordable at EUR 450 net rent per month

• Strong operating profitability: Adjusted EBITDA margin rises to 77.4% (+ 180 bps)
• AFFO on track: Quarterly result of around €59m – 2026 guidance of
  EUR 220 million to EUR 240 million confirmed
• Robust balance sheet: loan-to-value/LTV at 46.2% (– 60 bps) – all 2026 maturities addressed
• Progress on climate action and customer satisfaction: RENOWATE refurbishes in Austria for the first time – LEG has been awarded by tenant analytics platform AktivBo

LEG Immobilien SE has made a strong start to the 2026 financial year and confirms all targets for the full year. Supported by sustained high demand for affordable housing in its core markets, LEG increased rents on a like-for-like basis by 3.7 percent in the first quarter of 2026, while maintaining a low EPRA vacancy rate of 2.4 percent. The adjusted EBITDA margin rose to 77.4 percent, underlining the company’s strong earnings power. Loan-to-value (LTV) stands at 46.2 percent, keeping the company on track towards its 2026 target of around 45 percent. AFFO, LEG’s key earnings metric, reached EUR 58.6 million and is likewise on track to meet the full-year guidance.

 

Lars von Lackum says: “I am very pleased that, despite the volatile market environment, we have made a good start to the new financial year. We look to the future with confidence and can fully confirm our guidance for 2026. In times of significant geopolitical and economic uncertainty, our business model remains resilient and our earnings outlook positive. This is no coincidence, but the result of our consistent cash-focused management approach, a solid financial position and, not least, the dedicated work of the entire LEG team.”

 

Operational strength: rental growth, affordable housing and customer focus

Demand for affordable housing in LEG’s markets remains high. In the total portfolio, actual rent for comparable space increased by 3.7 percent in the first quarter of 2026 to EUR 7.15 per square metre (Q1-2025: EUR 6.90). In the free-financed segment, the increase was 3.8 percent to EUR 7.50 per square metre. The regular adjustment of cost rents in the subsidised housing portfolio, which only takes place every three years, contributed 50 basis points to rental growth.

 

LEG’s average basic rent therefore remains in the “affordable housing” segment: LEG tenants pay on average around EUR 450 per month for a typical LEG apartment of 63 square metres. This means LEG remains true to its ambition of providing affordable housing for people on low and middle incomes.

 

At the same time, letting activity remained stable at a high level: the EPRA vacancy rate on a like-for-like basis stood at 2.4 percent.

 

Operational efficiency also developed positively: the adjusted EBITDA margin improved by 180 basis points to 77.4 percent. By continuously improving and digitalising its property management platform, the company increases not only efficiency but also the quality of customer service.

At the benchmarking event of the tenant analytics platform AktivBo, LEG received awards in both the “Greatest improvement in service index” category and the “Greatest improvement in image” category. The awards are considered unique in the German residential property sector, as the winners are determined exclusively by tenants. For LEG, the recognitions are an incentive to further improve housing and service quality.

 

Smoother phasing of investments across the year

AFFO in the first quarter of 2026 came in at EUR 58.6 million, 5.9 percent below the prior-year figure (Q1-2025: EUR 62.3 million). This reflects a deliberate effort to smooth investment spending throughout the 2026 financial year. Adjusted investments increased by 17.4 percent year on year to EUR 8.82 per square metre (Q1-2025: EUR 7.51 per square metre). LEG is therefore shifting a larger share of modernisation and maintenance expenditure into the first quarter in order to achieve a more even utilisation of LEG teams and partner contractors over the year as a whole. This effect weighs on AFFO in the first quarter but is neutral for the full year and in line with the 2026 guidance. This assessment is supported by the development of operating cash flow, which increased significantly by 14.5 percent year on year to EUR 126.3 million. The figure underlines the company’s operational strength despite higher investments.

 

FFO I came in at EUR 114.7 million, slightly above the prior-year quarter (Q1-2025: EUR 114.3 million).

 

Balance sheet and financing: high resilience in volatile markets

LEG’s balance sheet remains a strength even in the current market environment. Loan-to-value (LTV) decreased by 60 basis points compared with 31 December 2025 to 46.2 percent, keeping the company on track towards its 2026 target of around 45 percent.

Average financing costs remained low at 1.80 percent as of 31 March 2026, with an average remaining maturity of financial liabilities of 5.8 years.

 

Liquidity remains high: at quarter-end, LEG had cash and cash equivalents of more than EUR 500 million as well as substantial undrawn credit lines of EUR 750 million. With an interest coverage ratio (ICR) of 4.2x and a hedging ratio of around 98 percent, the company is robustly positioned in times of volatile interest rates.

 

All maturities for 2026 have already been addressed. The next larger maturity is not until November 2027, when a EUR 500 million bond issued in 2019 falls due.

 

Together with the solid investment-grade rating (Moody’s: Baa2, positive outlook), this underlines the company’s strong financing position.

 

Structured disposal programme continued to strengthen balance sheet and portfolio

As of 31 March 2026, EPRA NTA per share remained virtually unchanged at EUR 138.29 (31 December 2025: EUR 137.14 per share). As in previous years, the next regular valuation of LEG’s real estate portfolio will take place on 30 June. LEG expects a slightly positive valuation result of up to +1.0 percent for the first half of 2026.

 

The gross yield of the entire property portfolio was nearly unchanged as of 31 March 2026 at 4.9 percent, continuing to offer an attractive premium over the yield on risk-free 10-year German government bonds.

 

Despite hesitant transaction markets, LEG has, in the current year, completed or agreed the sale of around 1,000 flats. Around 250 units changed hands in the first quarter of 2026; the closing for the remaining roughly 750 units is planned for the subsequent quarters of this year. LEG’s structured disposal programme of up to around 5,000 residential units serves not only to strengthen the balance sheet, but also to drive the focused development of the portfolio. Two principles remain central for LEG: disposals are to come from non-core assets and generally at or above book value and ensuring that the assets pass into ‘good hands’ takes precedence over short-term speed of execution.

 

RENOWATE now also active abroad

In addition to solid results and a robust balance sheet, LEG is focusing on affordable climate action in its own portfolio and in marketing services to third parties. The company continues to develop the three Green Ventures it established for this purpose:

• RENOWATE, the joint venture for serial refurbishment, has for the first time won contracts outside Germany and is modernising properties of Sozialbau AG in Vienna.

• With termios.Pro, LEG’s Green Venture termios launched an AI-supported thermostat to the market last year as a world first. In the meantime, more than 20,000 devices have been contracted. By optimising heating control, the thermostat can save up to 20 percent energy per flat.

• Dekarbo, as an expert in heat pump solutions, is continuously expanding its product range for the entire residential property sector.

These initiatives support both customer satisfaction and LEG’s social responsibility. They complement the financial resilience of the business model with a strong operational and environmental dimension.

Positive outlook for 2026 reaffirmed

Against the backdrop of strong underlying performance in the core business, a robust balance sheet profile and continued high demand for affordable housing, LEG confirms its 2026 guidance.

The company expects like-for-like rental growth of 3.8 percent to 4.0 percent, an adjusted EBITDA margin of around 78 percent, and AFFO of EUR 220 million to EUR 240 million.

With its focus on affordable housing, disciplined management based on the AFFO as KPI, and a clear investment strategy for the portfolio and for the green transformation, LEG believes it is well positioned to deliver reliable contributions for tenants, local authorities, investors and partners even in a challenging environment
.
Key figures Q1 2026

 

About LEG

LEG Immobilien SE is one of Germany’s leading listed residential property companies, with around 171,000 rental flats and approximately 500,000 residents. The company operates through eight branches as well as additional local contacts in selected regions. In the 2025 financial year, LEG Immobilien SE generated net cold rent of around EUR 920 million. With an average rent of around  EUR 7 per square metre, a high proportion of subsidised housing, a consistent digitalisation strategy and its commitment to efficient climate action, LEG is setting important stimulus for a responsible and future-proof housing sector. As one of the first companies in the industry, it is building up a technology-driven operating model and, since 2022, has been driving innovation through its own GreenTech and PropTech ventures.

 

 

 

Investor Relations contact:

Frank Kopfinger

Tel. +49 211 45 68-550

Email: frank.kopfinger@leg-se.com

 

Press contact:

Sabine Jeschke

Tel. +49 211 45 68-325

Email: sabine.jeschke@leg-wohnen.de

 

Disclaimer

This publication does not, and is not intended to, constitute or form part of, and should not be construed as, an offer to purchase or sell or a solicitation of an offer to purchase or sell any securities in LEG Immobilien SE.

This publication may contain forward-looking statements that are subject to known and unknown risks and uncertainties. LEG Immobilien SE has based these forward-looking statements on its current views and assumptions with respect to future events and financial performance and they shall not be construed as guarantees of future developments and results. Actual results and developments including, in particular, the actual financial performance, could differ materially from that projected or implied in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated.