LEG Immobilien

Grand City Properties has taken just over a 20 percent stake in LEG and describes the position as a financial investment. The news drove LEG shares significantly higher; Grand City and major shareholder Aroundtown also gained. Analysts called the stake surprising and do not necessarily expect it to be permanent, especially given refinancing needs; an increase to up to 29.9 percent or a reduction/sale are being considered. It was also pointed out that there could be a one‑off non‑cash gain due to the share price trading at a discount to book value. » Mere på finanzen.net

LEG warns that the recent rise in interest rates of around 100 basis points increases refinancing costs and causes roughly ten million euros in additional annual expenses for the company, about five percent of earnings. New-build projects and transactions are particularly affected by higher construction loan rates and cautious investors, which dampens transaction volume. LEG maintains its AFFO guidance of around 220 to 240 million, but expects a tougher sales environment for its portfolio; municipalization plans in Berlin, CEO Lars von Lackum believes, would further worsen investor sentiment. » Mere på handelsblatt.com

LEG Immobilien's share price has fallen by over 25% year-to-date, weighed down by rising interest rates and discussions about nationalizing housing stock. CEO Lars von Lackum cites an average external financing rate of 1.8% and, with an annual refinancing need of around €1 billion, expects a manageable additional burden of €20–30 million. While smaller portfolio transactions continue to work, the market for large disposals has stalled. As of 30 June, EPRA-NTA stood at €10.5 billion versus a stock market valuation of about €3.5 billion; nonetheless, price risk from possible further rate increases remains high and the share is technically searching for a floor. » Mere på finanzen.net

LEG must refinance around one billion euros per year; the average external financing rate is 1.8 percent, and the recent rise in interest rates has caused additional costs of about €20–30 million. According to CEO Lars von Lackum, this extra burden is offset by comparable rent increases. The transaction market for larger portfolios remains weak, though smaller sales of up to around €5 million are possible. The joint project Renowate is not performing as hoped; continued involvement depends on Renowate reaching breakeven this year. » Mere på finanzen.net

LEG CEO Lars von Lackum warns of the social consequences of expropriating residential properties and stresses that ownership guarantees individual freedom. He is banking on a planned federal law intended to prevent expropriations in the German states and does not expect spillover effects in the western German regions where LEG operates. The stock fell slightly at times on XETRA. » Mere på finanzen.net