LEG Immobilien stock gains after AFFO growth and 2027 outlook

LEG Immobilien reported stronger adjusted earnings for the first nine months of 2026 and confirmed its full-year targets on Thursday, November 12. The German residential landlord also presented its first 2027 outlook, pointing to further AFFO growth despite higher financing costs. The figures were published in a LEG investor-relations release.

Higher AFFO, stable FFO I

AFFO rose 4.9 percent to EUR 190.1 million in the first nine months, compared with EUR 181.3 million a year earlier. LEG attributed the increase to stronger letting performance and growth in value-added services. FFO I remained broadly stable at EUR 370.0 million, versus EUR 370.7 million in the prior-year period.

Net cold rent increased 3.6 percent to EUR 712.4 million. Like-for-like in-place rent advanced 3.9 percent, including a 0.5 percentage-point contribution from higher cost rents in subsidised housing. The company retained its full-year like-for-like rent-growth target of 3.8 percent to 4.0 percent.

The EPRA vacancy rate declined to 2.5 percent from 2.7 percent a year earlier. LEG spent EUR 292.2 million on maintenance and modernisation during the first nine months and plans to invest more than EUR 35 per square metre for the full year.

2027 guidance points to growth

LEG kept its 2026 AFFO guidance at EUR 220 million to EUR 240 million and reaffirmed its FFO I range of EUR 475 million to EUR 495 million. Based on the midpoint, the company expects the 2026 AFFO result to represent growth of about 4 percent from 2025.

For 2027, management expects AFFO of EUR 230 million to EUR 250 million. At the midpoint, that would mean another 4 percent increase from the 2026 guidance midpoint. Comparable rent growth is expected to moderate to 2.9 percent to 3.1 percent, while investment is planned at approximately EUR 35 per square metre.

LEG said its dividend policy remains unchanged. The company intends to distribute 100 percent of AFFO together with a share of net property-sale proceeds. The dividend proposal is scheduled for approval in February 2027 alongside publication of the 2026 annual results.

Financing remains a key risk

Moody's upgraded LEG's rating from Baa2 to Baa1 with a stable outlook. The company said available liquidity and completed financing cover all maturities through autumn 2027; the next major bond maturity is a EUR 500 million bond due in November 2027.

Average financing costs stood at 1.82 percent at September 30, while the loan-to-value ratio was 46.5 percent. LEG no longer expects to reach its previous 2026 target of about 45 percent because of expected property devaluation in the second half and lower transaction volumes. The company sold or agreed sales of about 1,300 apartments year to date and completed the sale of the Glasmacher site in Dusseldorf.

LEG Immobilien stock traded at 51.05 euros on Lang & Schwarz at 11:45 CET on Thursday, November 12, 2026, 2.80 percent above the Xetra close of 49.66 euros on Wednesday, November 11. The comparison uses the previous Xetra session because the current trading day had not reached the Xetra close.

German equities remain in focus as investors track the DAX.

Further updates and analysis are available on the LEG Immobilien stock topic page.