LEG Immobilien SE Financial Results FY 2023 | Earnings Soar & Strategic Wins

LEG Immobilien SE FY 2023: Key Takeaways

Executive Overview

LEG Immobilien’s Stellar Performance in Fiscal Year 2023

In this presentation, Frank Kopfinger, Head of Investor Relations at LEG Immobilien SE, highlights the company’s outstanding performance during the fiscal year 2023. Despite challenges in the housing sector, LEG Immobilien SE not only navigated these successfully but also significantly exceeded financial forecasts through a strategic shift towards a cash-focused approach, leading to growth in Adjusted Funds From Operations (AFFO), an attractive dividend proposal, and a commitment to sustainability.

Unveiling Financial Milestones

Financial Achievements and Rent Growth

Frank Kopfinger presented a series of financial accomplishments, notably a 66.5% increase in AFFO to EUR 181.2 million. This performance is a testament to the company’s disciplined cost management and strategic planning. The like-for-like rent increase of 4.0% demonstrates the company’s effective management of inflationary pressures, strengthening its position in the affordable housing segment.

Strategic Dividends for Shareholders

Generous Dividend Proposal

A significant dividend proposal of EUR 2.45 per share was announced to reward shareholders for their loyalty and the company’s robust performance. This proposal aligns with the company’s revised dividend policy, aiming for a 100% payout of AFFO, pending approval at the upcoming Annual General Meeting in May.

Solid Foundations & Future Outlook

Sustainability Efforts and AFFO Forecast

Highlighting sustainability, Frank Kopfinger reported a company’s carbon footprint reduction by approximately 4%, underscoring LEG’s commitment to climate protection. Looking ahead to 2024, he confidently forecasts an AFFO ranging from EUR 180 million to EUR 200 million, thanks to a strategy well-adapted to the challenges of higher interest rates.

Operational Excellence & Market Resilience

Operational Metrics and Financial Structure

The presentation showcased key operational metrics, including a decrease in like-for-like vacancy rates to 2.4% and a solid financial foundation with a Loan to Value (LTV) ratio of 48.4%. These figures reflect the company’s operational efficiency and resilience in the market, indicating a stable and growth-oriented future.

Commitment to Sustainability and Innovation

Investments in Green Startups and Digitalization

Frank emphasised LEG’s investment in sustainability and innovation, particularly through initiatives like termios, dekarbo, and RENOWATE. These investments contribute to the company’s sustainability objectives and enhance its tenants’ living experience, positioning LEG as a forward-thinking industry leader.

Closing Remarks: A Bright Horizon

Message from CEO Lars von Lackum

In conclusion, Frank Kopfinger relayed CEO Lars von Lackum’s message of resilience and strategic success. The achievements of the past fiscal year lay a solid foundation for LEG’s future, which is marked by growth, operational excellence, and a steadfast commitment to affordable housing and sustainability.

About LEG Immobilien SE

A Leading Housing Company in Germany

Frank’s closing remarks included an overview of LEG Immobilien SE, showcasing its position as a leading housing company in Germany with around 167,000 rental apartments. LEG’s focus on affordable housing, sustainability, and tenant satisfaction solidifies its role as a pivotal industry player, ready to face future challenges and opportunities.

Chapters

Cash is King – Strategy pays out
Portfolio Valuation FY 2023 – Breakdown of revaluation losses
Financial Profile
Guidance 2024 unchanged: AFFO in the range of €180m – €200m

Resources

Host

Frank Kopfinger, CFA
Head of Investor Relations & Strategy | LEG SE

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