| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 68.30 | 12 |
| Intrinsic value (DCF) | 36.42 | -40 |
| Graham-Dodd Method | 64.00 | 5 |
| Graham Formula | 10.10 | -83 |
LEG Immobilien SE is a leading German real estate company specializing in residential and commercial property management. Headquartered in Düsseldorf, LEG Immobilien operates an extensive portfolio of 166,189 residential units, 1,576 commercial units, and 45,438 garages and parking spaces, primarily in North Rhine-Westphalia. Founded in 1970, the company provides integrated property services, including equity investment management, location development, and energy generation. LEG Immobilien also offers IT and management services to third parties, enhancing its revenue streams. As a key player in Germany's real estate sector, the company benefits from stable rental income and long-term tenant relationships. With a market capitalization of approximately €5.47 billion, LEG Immobilien is a significant entity in the European real estate market, appealing to investors seeking exposure to Germany's robust housing demand and urbanization trends.
LEG Immobilien SE presents a mixed investment profile. The company's strong portfolio of residential and commercial properties in Germany provides stable cash flows, supported by a dividend yield of €2.45 per share. However, its high total debt of €9.72 billion and a beta of 1.19 indicate sensitivity to market volatility and interest rate fluctuations. The company's operating cash flow of €436.5 million in the last fiscal year demonstrates solid operational performance, but net income of €66 million reflects margin pressures. Investors should weigh the stable rental income against the leveraged balance sheet and macroeconomic risks in the German real estate market.
LEG Immobilien SE holds a competitive position in Germany's real estate market due to its large-scale residential portfolio and integrated property management services. Its focus on North Rhine-Westphalia, a densely populated and economically strong region, provides geographic stability. The company's ability to generate ancillary revenue through IT and energy services adds diversification. However, LEG faces intense competition from other large German real estate firms, particularly in urban areas where housing demand is high. Its high leverage ratio compared to peers could limit financial flexibility in a rising interest rate environment. The company's scale and localized expertise are strengths, but it must navigate regulatory pressures and tenant protection laws in Germany, which can constrain rental growth. LEG's competitive advantage lies in its operational efficiency and long-term tenant relationships, but it must balance growth with debt management to sustain investor confidence.