LEG Immobilien (LEG) Q2 2026 Earnings Report

Overall the call communicates a predominantly positive operational and financial trajectory: management reconfirmed full-year guidance, delivered solid rent growth, low vacancy, disciplined deleveraging (LTV ~45.5%), a modest positive valuation and robust liquidity and financing arrangements. The primary negatives are H1 AFFO compression and higher interest costs driven by market-rate refinancing, subsidy phasing, and weak transaction markets slowing disposals — many of which management frames as timing or market-driven rather than structural. Given guidance confirmation, balance sheet progress, and operational resilience, positives outweigh the temporary and market-related headwinds.

LEG reconfirmed its 2026 guidance: AFFO €220–240m and FFO I €475–495m with an adjusted EBITDA margin around 78% (H1: 77.8%; adjusted EBITDA €368.1m), and reiterated rent growth guidance toward ~3.8–4.0% (H1 like‑for‑like 3.7%; net cold rent H1 €473.4m), while reporting EPRA vacancy 2.3%, portfolio revaluation +0.7% (H1), and an LTV target of ~45% (H1 45.5% with a temporary Q3 uptick expected due to the dividend); liquidity remains >€450m (scrip retained €63.1m, 28.6% take‑up), H1 AFFO €110.5m (‑12.7% YoY) and FFO I €230.5m (‑4.4% YoY), H1 investments €202m (€18.19/sqm; full‑year target >€35/sqm) with CapEx €112.3m/€10.11sqm and maintenance €89.7m/€8.08sqm (cap ratio 56%), disposals YTD €78m (≈1,000 units; program up to 5,000 units), financing closed €450m (avg maturity 9.3y, avg rate 3.9%), new €750m RCF (5+1+1), average interest cost 1.82%, avg debt maturity 5.7y, interest cover 4.0x — management expects H2 to be meaningfully stronger (including ~€10m of subsidies) and confirmed guidance across all line items.