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LEG Immobilien (DE:LEG)
XETRA:LEG
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LEG Immobilien
(XETRA:LEG)
61Neutral
Positive Factors
Guidance Achievement
LEG Immobilien is on track to achieve 2024 guidance after solid Q3 figures.
Transaction Market Recovery
The transaction market continued to recover with additional sales volume.
Negative Factors
AFFO Decrease
AFFO was €152m, a decrease of 14% compared to the first nine months of FY23.
Financial Performance
Adjusted EBITDA of €492m showed a decline of 3.1% over the prior year.
LEG Immobilien (LEG) vs. S&P 500 (SPY)
Market Cap
€5.50B
Dividend Yield3.33%
Average Volume (3M)344.60K
Price to Earnings (P/E)83.0
Beta (1Y)0.56
Revenue Growth2.26%
EPS GrowthN/A
CountryDE
Employees1,920
SectorReal Estate
Sector Strength77
IndustryReal Estate - General
Share Statistics
EPS (TTM)0.89
Shares Outstanding74,469,666
10 Day Avg. Volume225,995
30 Day Avg. Volume344,596
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)3.83
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€87.05Price Target Upside17.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
LEG Immobilien Business Overview & Revenue Model
Company DescriptionLEG Immobilien AG is a leading German residential real estate company, primarily engaged in the acquisition, management, and development of residential properties. Based in Düsseldorf, Germany, the company operates mainly in the North Rhine-Westphalia region, offering quality and affordable housing solutions. LEG Immobilien focuses on providing rental housing and associated services to its tenants, catering to a diverse range of customer needs.
How the Company Makes MoneyLEG Immobilien makes money primarily through rental income from its extensive portfolio of residential properties. The company generates revenue by leasing apartments and homes to tenants, ensuring steady cash flow from rent payments. Additionally, LEG Immobilien enhances its revenue by offering ancillary services to tenants, such as property management, maintenance, and facility services. The company's strategic acquisitions and developments further contribute to its income stream by expanding its real estate portfolio and increasing rental opportunities. Partnerships with local municipalities and housing associations also play a role in supporting LEG's growth and revenue generation by facilitating access to desirable properties and enhancing community engagement.
LEG Immobilien Financial Statement Overview
Summary
Income Statement
Balance Sheet
Cash Flow
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.30B | 1.24B | 1.15B | 961.70M | 860.80M | Gross Profit |
| 621.40M | 579.70M | 412.10M | 521.60M | 427.20M | EBIT |
| 325.50M | -1.86B | 628.10M | 2.25B | 1.54B | EBITDA |
| 341.10M | -1.80B | 509.10M | 376.00M | 401.10M | Net Income Common Stockholders |
| 66.00M | -1.57B | 234.00M | 1.72B | 1.36B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 305.80M | 277.50M | 360.50M | 673.60M | 332.90M | Total Assets |
| 19.59B | 19.30B | 21.36B | 20.55B | 15.28B | Total Debt |
| 9.72B | 9.38B | 9.46B | 8.89B | 5.87B | Net Debt |
| 9.41B | 9.10B | 9.10B | 8.21B | 5.54B | Total Liabilities |
| 12.19B | 11.82B | 12.28B | 11.60B | 7.89B | Stockholders Equity |
| 7.37B | 7.46B | 9.06B | 8.93B | 7.37B |
| Cash Flow | Free Cash Flow | |||
| 417.70M | 432.40M | 311.10M | 342.40M | 310.50M | Operating Cash Flow |
| 436.50M | 447.90M | 389.00M | 353.70M | 326.10M | Investing Cash Flow |
| -604.20M | -421.50M | -1.06B | -2.75B | -1.33B | Financing Cash Flow |
| 197.10M | -111.10M | 356.40M | 2.74B | 890.30M |
LEG Immobilien Technical Analysis
Neutral
73.90
Price Trends
71.25
Positive
75.65
Negative
81.65
Negative
Market Momentum
1.11
Negative
60.57
Neutral
84.08
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:LEG, the sentiment is Neutral. The current price of 73.9 is above the 20-day moving average (MA) of 69.24, above the 50-day MA of 71.25, and below the 200-day MA of 81.65, indicating a neutral trend. The MACD of 1.11 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 84.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for DE:LEG.
LEG Immobilien Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | €25.67B | 12.87 | 17.88% | 2.37% | 12.49% | 24.44% | |
66 Neutral | €1.77B | 9.25 | 5.48% | ― | -1.76% | ― | |
61 Neutral | €5.50B | 82.97 | 0.89% | 3.33% | 2.26% | ― | |
59 Neutral | $2.72B | 11.59 | 0.11% | 8770.69% | 5.44% | -16.52% | |
50 Neutral | $8.24B | ― | -4.68% | 0.17% | 6.08% | ― | |
46 Neutral | €23.73B | ― | -3.71% | 3.11% | 15.65% | 86.00% |
* Real Estate Sector Average
Performance Comparison
DE:LEG
LEG Immobilien
73.90
-1.36
-1.80%
DE:DWNI
Deutsche Wohnen
22.50
5.24
30.35%
DE:VNA
Vonovia
28.84
3.52
13.92%
DE:TLX
Talanx AG
99.40
30.82
44.95%
DE:GYC
Grand City Properties SA
10.54
0.32
3.13%
LEG Immobilien Earnings Call Summary
Earnings Call Date: Mar 10, 2025 | % Change Since: 4.26% | Next Earnings Date: May 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong operational performance with an increase in AFFO guidance, successful refinancing activities, and stabilization in property values. However, the company faced challenges from lower green electricity contributions, increased expenses, and integration costs from the BCP acquisition. The sentiment is balanced, considering both positive growth metrics and operational challenges.Highlights
Strong Like-for-Like Rent Growth
The company reported a 3.2% like-for-like rent growth for its full portfolio, translating into a market-leading 3.8% rent growth for the free-financed portfolio.
AFFO Guidance and Growth
Confirmed 2024 AFFO guidance in the range of EUR190 million to EUR210 million, representing an increase of around 10% for the AFFO per share.
Acquisition of Brack Capital Partners
Announced acquisition of the remaining shares in Brack Capital Partners, expected to be neutral on AFFO per share in the year of acquisition, and a contributor to earnings in the mid-term.
Stabilization of German Residential Values
Expecting valuation of the portfolio to stabilize with a range of 0% to +0.5%, indicating a gross yield of around 5%.
Capital Recycling Strategy
Sold 3,400 units for EUR330 million, with further disposals planned to bring down LTV to the mid-term target of 45%.
Low Average Cash Financing Costs
Maintained low average cash financing costs of 1.6% due to successful refinancing activities.
Lowlights
Impact of Green Electricity Production
Lower contribution from green electricity production impacted adjusted EBITDA, with a decline of 3.1%.
Higher Personnel and Operational Expenses
Higher personnel expenses and weaker results from energy and multimedia subsidiaries negatively impacted operating results by EUR14.3 million.
Increased Investment Spending
AFFO decreased by 14.1% year-over-year to EUR152 million, impacted by higher investment spending.
Challenges in BCP Integration
Higher CapEx levels expected in the initial year due to underinvestment in BCP's portfolio, delaying a meaningful AFFO contribution until 2027.
Company Guidance
In the recent call, the company provided detailed guidance for its fiscal performance, emphasizing profitability as a key focus. The organization reported a like-for-like rental growth of 3.2% across its full portfolio, aligning with the guidance range of 3.2% to 3.4%, and highlighted a market-leading 3.8% growth in its free-financed portfolio. For 2024, the company confirmed its AFFO guidance, anticipating a range between EUR190 million and EUR210 million, marking an approximate 10% increase in AFFO per share at the midpoint. Looking ahead to 2025, the company expects AFFO to further grow to EUR205 million to EUR225 million, indicating a 7.5% increase at the midpoint. This growth will be supported by continued rent growth momentum, increased investment spending, and advantageous refinancing conditions. The company also announced the acquisition of the remaining shares in Brack Capital Partners (BCP), which will be neutral in terms of its impact on AFFO per share in the acquisition year, with anticipated mid-term contributions to earnings. Additionally, the company reported progress in its capital recycling strategy, having sold 3,400 units for EUR330 million, with a target to reduce its LTV to 45% mid-term.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.