LEG Immobilien SE Unsponsored ADR (LGMMY) AI Stock Analysis

LEG Immobilien SE Unsponsored ADR

(Other OTC:LGMMY)

Select Model

Rating:61Neutral

Price Target:$14.00▲(4.77% Upside)

Action:initiatedcoverage

Date:09/24/26

The score is held back primarily by weak technicals (broad downtrend and negative momentum) and mixed financial quality (earnings volatility and cash flow trailing reported profits). These are partly offset by attractive valuation (low P/E and high yield) and a constructive earnings call with reaffirmed guidance, strong rent/vacancy trends, and progress toward the ~45% LTV target.

Positive Factors

Rent growth and low vacancyRent growth combined with very low vacancy indicates resilient tenant demand and limited unused capacity across the portfolio. This supports recurring rental income, helps protect occupancy economics, and provides a durable base for continued organic revenue growth over the next several quarters.

Negative Factors

Higher refinancing costsHigher refinancing rates are a durable headwind because they increase recurring interest expense as existing debt matures and is replaced. Unless rental growth and efficiency gains offset the reset, funding costs can reduce AFFO, constrain distributions, and slow balance-sheet improvement.

LEG Immobilien SE Unsponsored ADR (LGMMY) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $4.00B
Dividend Yield: 6.26%
Average Volume (3M): ―
Price to Earnings (P/E): 2.8
Beta (1Y): 0.32
Revenue Growth: 7.82%
EPS Growth: 128.09%
Country: US
Employees: 1,789
Sector: General
Sector Strength: 55
Industry: Real Estate - Services

LEG Immobilien SE Unsponsored ADR Business Overview & Revenue Model

Company Description

Operating primarily through its subsidiaries, LEG Immobilien SE functions as a fully integrated real estate enterprise within Germany. Its broad range of services includes the oversight of equity investments, comprehensive property management, and si...

How the Company Makes Money

LEG Immobilien SE primarily makes money by renting out residential apartments in its portfolio and collecting recurring rental income from tenants. The core revenue stream is contractual rent payments (base rent and, where applicable, ancillary recov...

LEG Immobilien SE Unsponsored ADR Earnings Call Summary

Earnings Call Date:Aug 03, 2026(Q2-2026)|% Change Since:-12.91%|Next Earnings Date:Nov 11, 2026

Earnings Call SentimentPositive

Overall the call conveyed a constructive operational and financial picture: rent growth, very low vacancy, positive revaluations and clear progress on deleveraging underpin confidence. Management reiterated full-year guidance for AFFO and FFO I and highlighted strong liquidity and financing measures. The main negatives were H1 earnings declines (AFFO/FFO) driven by phasing, higher interest costs, elevated investments and a weak transaction market that is delaying disposals; share-price discount and market volatility also constrain immediate capital return options. On balance the positives (confirmed guidance, margin resilience, near-target LTV, liquidity and validated energy-saving innovations) outweigh the headwinds, though execution risk on disposals and macro uncertainty remain important watch items.

Positive Updates

Stable Rent Growth and Strong Rent Per Square Metre

Like-for-like rent growth of 3.7% in H1 2026 (net cold rent €473.4m) with average rent at €7.21/sqm; 50 basis points of the growth came from cost rent adjustments and further increases expected in H2 to approach the 3.8%–4.0% target range.

Negative Updates

AFFO and FFO Declines in H1

AFFO fell 12.7% YoY to €110.5m in H1; FFO I declined 4.4% to €230.5m. Management attributes this largely to phasing (CapEx, lower subsidies in H1) and higher refinancing costs but the near-term cash generation was weaker vs prior year.

Company Guidance

LEG reconfirmed 2026 guidance: AFFO €220–240m and FFO I €475–495m with an adjusted EBITDA margin around 78%; H1 results show like‑for‑like rent growth 3.7% (avg rent €7.21/sqm; net cold rent €473.4m), EPRA vacancy 2.3%, adjusted EBITDA €368.1m, AFFO €110.5m and FFO I €230.5m; portfolio valuation +0.7% (~€135m) and LTV 45.5% (target ≈45% with a temporary Q3 uptick from the dividend). H1 investments were €202m (€18.19/sqm) — CapEx €112.3m (€10.11/sqm), maintenance €89.7m (€8.08/sqm), cap ratio 56% — and ~€10m of subsidies are expected in H2. Financing metrics: average interest cost 1.82%, interest cover 4.0x, avg debt maturity 5.7 years, liquidity >€450m, H1 refinancings €450m at 3.9% (avg) and a new €750m RCF (5+1+1). Management reiterated a disciplined disposal program (YTD disposals ~€42m; signed/closed sales >1,000 units, proceeds ~€78m) and said capital will be allocated after reaching the ~45% LTV target (organic growth, selective M&A, distributions or buybacks).

LEG Immobilien SE Unsponsored ADR Financial Statement Overview

Summary

Recent results show very strong reported profitability and positive free cash flow, but earnings are highly volatile (sharp loss in 2023, weaker 2024, then exceptionally high 2025/TTM). Leverage is meaningful (debt-to-equity ~1.09), and cash flow is relatively low versus net income in recent periods, raising some earnings-quality concerns despite consistently positive FCF.

Income Statement

68Positive

Balance Sheet

56Neutral

Cash Flow

61Positive

Financial statement breakdown
Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.39B	1.43B	1.30B	1.24B	1.15B	961.70M
Gross Profit	567.51M	534.34M	621.40M	579.70M	412.10M	521.60M
EBITDA	1.13B	1.27B	341.10M	-1.80B	965.40M	2.28B
Net Income	1.29B	1.40B	66.00M	-1.57B	234.00M	1.72B
Balance Sheet
Total Assets	20.93B	21.15B	19.59B	19.30B	21.36B	20.60B
Cash, Cash Equivalents and Short-Term Investments	463.41M	756.18M	305.80M	277.50M	360.50M	673.60M
Total Debt	9.63B	10.15B	9.72B	9.38B	9.46B	8.89B
Total Liabilities	12.05B	12.40B	12.19B	11.82B	12.28B	11.64B
Stockholders Equity	8.82B	8.69B	7.37B	7.46B	9.06B	8.93B
Cash Flow
Free Cash Flow	446.85M	425.90M	417.70M	432.40M	311.10M	342.40M
Operating Cash Flow	463.56M	444.15M	436.50M	447.90M	389.00M	353.70M
Investing Cash Flow	-116.20M	223.71M	-604.20M	-421.50M	-1.06B	-2.75B
Financing Cash Flow	-534.22M	-236.00M	197.10M	-111.10M	356.40M	2.74B

LEG Immobilien SE Unsponsored ADR Technical Analysis

Technical Analysis SentimentPositive

Last Price13.36

Price Trends

50DMA13.42Negative

100DMA14.30Negative

200DMA15.69Negative

Market Momentum

MACD0.03Negative

RSI53.57Neutral

STOCH57.11Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LGMMY, the sentiment is Positive. The current price of 13.36 is above the 20-day moving average (MA) of 13.03, below the 50-day MA of 13.42, and below the 200-day MA of 15.69, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.57 is Neutral, neither overbought nor oversold. The STOCH value of 57.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LGMMY.

LEG Immobilien SE Unsponsored ADR Peers Comparison

Overall Rating

UnderperformOutperform

Sector (55)

Financial Indicators

LGMMY against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RMR	63Neutral	$534.46M	14.59	8.69%	10.80%	-15.21%	-0.30%
LGMMY	61Neutral	$4.11B	2.80	14.93%	6.26%	7.82%	128.09%
Sector *	55Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
TCI	53Neutral	$431.36M	53.72	0.95%	―	5.33%	22.04%
ARL	50Neutral	$298.01M	35.79	1.36%	―	6.77%	―
FRPH	46Neutral	$359.97M	3537.74	0.02%	―	2.47%	-98.22%
STHO	41Neutral	$90.25M	6.12	5.29%	―	-8.12%	―

* General Sector Average

Performance Comparison

LGMMY and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
LGMMY	LEG Immobilien SE Unsponsored ADR	13.36	-4.52	-25.29%
ARL	American Realty Investors, Inc.	18.45	2.59	16.33%
FRPH	FRP Holdings Inc.	18.75	-4.55	-19.53%
TCI	Transcontinental Realty Investors	49.93	5.63	12.71%
RMR	The RMR Group Inc.	16.66	2.67	19.04%
STHO	Star Holdings	7.47	0.07	0.95%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Sep 24, 2026

LEG Immobilien SE Unsponsored ADR AI Stock Analysis