Real estate: LEG has to devalue buildings again, but confirms the annual forecast
The Düsseldorf-based group is recording an increase in cash inflow, but expects a devaluation of the portfolio due to the interest rate environment.
Quick Look
- The real estate group LEG reports an increase in cash inflow (AFFO) by 4.9 percent to 190.1 million euros.
- Despite rising rents and low vacancies, high interest rates are putting a strain on the portfolio, leading to an expected devaluation.
AI-generated summary
Why It Matters
The real estate market in Germany is under pressure due to increased interest rates and inflation, which is leading to falling property prices.
Dusseldorf. The real estate group LEG benefits from rising rents and low vacancies. Its most important earnings value, cash inflow (AFFO), rose by 4.9 percent to 190.1 million euros after nine months, as the Düsseldorf-based group announced on Thursday. Like-for-like rent, i.e. rental income adjusted for acquisitions, sales and new buildings, increased by 3.9 percent for the entire portfolio. The vacancy rate was 2.5 percent.
The group has already announced further earnings growth for the 2026 financial year. The adjusted AFFO should be between 220 and 240 million euros. Next year it should reach a range between 230 and 250 million euros.
LEG, like its larger competitor Vonovia, is being burdened by the development of interest rates, which are being driven up by inflation. This depresses real estate prices.
LEG therefore expects a devaluation of its real estate portfolio in the second half of the year, the company said. This also means that a debt ratio (LTV) of around 45 percent will no longer be achievable in 2026, it said.
What to Watch
AI outlook — possibilities, not facts
Devaluation of the real estate portfolio in the second half of the year.
Very likely · Within months
Open Questions
- How high is the actual devaluation of the portfolio?
- What measures is LEG taking to reduce the level of debt?
