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. » More on 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. » More on 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. » More on finanzen.net