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LEG Immobilien SE Financial Results H1 2023 | Strong Growth and Forward Planning with IR

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Frank Kopfinger, the Head of Investor Relations and Strategy at LEG Immobilien SE delivers an update on the company’s H1 2023 Financial Results, spotlighting some noteworthy highlights:


Operational Strength:

The first half of 2023 has been marked by impressive operational numbers, leveraging the robust dynamics of the German housing market. Influenced by the significant supply-demand imbalance, this sector witnessed heightened demand for affordable rental apartments, where LEG is commanding.


Rent and Earnings Performance:

LEG reported an appreciable 4.3% growth in rents on a like-for-like basis and 4.6% on a reported basis. This increase is attributed to new constructions, which outweighed the impact of asset disposals.


Vacancy Rate:

Maintaining their robust approach towards asset management, LEG achieved a reduction in their vacancy rate, bringing it down further to 2.6%. This indicates almost a full occupancy, showcasing effective asset management.


AFFO Boost:

The AFFO (Adjusted Funds From Operations), a pivotal metric, witnessed a striking jump to €118.6 million, marking an almost 50% increase. This surge is credited to robust financial results, benefits from high energy prices in 2022, and significant reductions in company expenditures.


Portfolio Valuation:

Despite stellar operational performance, LEG’s portfolio faced a devaluation of 7.4%, influenced by the market’s adjusting transaction multiples and higher cost assumptions. This comes after a 4% portfolio devaluation in H2 2022.


Financing & Liquidity:

Frank emphasises the company’s well-balanced financial strategy. LEG continues to gain from past low-interest rates, reporting an average interest rate of 1.4% for its debt and an average debt term of 6.1 years. The Loan to Value (LTV) ratio has risen slightly to 46.6%, but Frank assures stakeholders of the company’s continued ability to refinance upcoming maturities.


Guidance for 2023:

Frank reiterates the company’s guidance for the AFFO, standing at €165 to €180 million, buoyed by higher rental incomes and green energy sales. He also underlines their commitment to environmental, social, and governance (ESG) targets.


LEG’s strong H1 performance paints a promising picture for stakeholders, reaffirming the company’s commitment to delivering sustained value.

Chapters

    • Ongoing strong performance of operations
    • Portfolio Valuation H1-2023 – Breakdown of revaluation losses
    • Well balanced financial profile as at 06/2023
    • Guidance 2023:Focus on AFFO

Resources

Presentation
LEG Video Hub
Podcast

Host

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

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Release Date

August 10, 2023

Duration

06:25

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