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Industry's creativity sparked by Vonovia, fueled by legal means

Real Estate company LEG reports a robust Q2 profit and elevates its full-year earnings estimate, while Vonovia delivers impressive half-year financial results.

Industry innovation fueled by LEG (Legal & General Affordable Homes) initiative, according to...
Industry innovation fueled by LEG (Legal & General Affordable Homes) initiative, according to Vonovia.

Bochum-based real estate giant LEG Immobilien (WKN: LEG111) has presented positive Q2 results and is more optimistic for the full year 2025 following a strong first half. The company, a North Rhine-Westphalia-based real estate giant, has updated its Adjusted Funds From Operations (AFFO) guidance to target the upper half of the prior range (€215-225 million), reflecting confidence in continued growth.

The latest predictions show an AFFO expected between €215 million and €225 million for the full year 2025, representing an approximate 10% growth compared to previous periods. The EBITDA margin remains robust at 78.6% in Q2, supported by the integration of Brack Capital Properties (BCP) and ESG-related upgrades.

The Q2 results show a profit of €204.9 million, compared to a loss of €143 million in the same period last year. The bottom line improvement is driven by slightly increased rental income and stable property valuations. The company's optimism for the full year is due in part to seamlessly building on Vonovia's strong half-year results.

In addition, the company aims to achieve an AFFO of €215-€225 million for the full year 2025, an increase from its previous target. The strong Q2 performance has led to a revised EBT outlook of between €1.85 and €1.95 billion for the full year, €100 million more than originally planned.

The net cold rent increased by seven percent to €228 million in Q2, but this fact was previously mentioned. The Q2 2025 AFFO increased 15.4% to €127 million, indicating solid momentum heading into the full year.

Market challenges like high interest rates and limited rent growth are offset by the company's focus on affordable housing and investment in energy and digital efficiencies (€50 million planned for 2025). Strategic deleveraging and liquidity management underpin operational resilience, with the loan-to-value (LTV) ratio at 47.6%, aiming for 45% by 2026.

LEG Immobilien's share performance may receive new impetus due to the positive trend in the German residential market. The trend of positive results is not limited to LEG Immobilien but applies to the German residential market in general.

[1] LEG Immobilien Q2 2025 Results Press Release (link) [2] LEG Immobilien Raises Full-Year 2025 AFFO Guidance (link) [3] DER AKTIONÄR: LEG Immobilien vs Vonovia (link)

It appears that LEG Immobilien has updated its Adjusted Funds From Operations (AFFO) guidance, aiming for an AFFO of €215-€225 million for the full year 2025. This growth, representing an approximate 10% increase compared to previous periods, is driven by the company's strong Q2 performance and strategic focus on finance-related matters such as affordable housing, energy, and digital efficiencies.

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