| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 84.58 | 39 |
| Intrinsic value (DCF) | 37.76 | -38 |
| Graham-Dodd Method | 72.73 | 20 |
| Graham Formula | 11.47 | -81 |
LEG Immobilien SE is a leading German real estate company specializing in residential and commercial property management. Headquartered in Düsseldorf, LEG operates primarily in North Rhine-Westphalia, managing a portfolio of over 166,000 residential units, 1,500+ commercial units, and 45,000+ garages and parking spaces. The company provides integrated property services, including location development, housing industry services, and energy generation. With a strong focus on sustainable urban development, LEG leverages its extensive regional expertise to optimize property performance and tenant satisfaction. As one of Germany's largest residential landlords, LEG plays a crucial role in addressing housing demand in key urban areas. The company's diversified revenue streams—from rental income to third-party services—position it as a resilient player in the European real estate sector.
LEG Immobilien offers exposure to Germany's stable residential real estate market, with a high-yielding portfolio concentrated in economically strong North Rhine-Westphalia. The company's €2.7 dividend per share (2024) provides attractive income, though investors should note the elevated leverage (€9.7B debt) and sensitivity to interest rate movements (beta 1.19). While the €436M operating cash flow demonstrates solid cash generation, the net income margin (~5%) reflects cost pressures in German housing markets. LEG's regional focus provides operational advantages but also concentration risk. The stock may appeal to income-focused investors comfortable with REIT sector volatility.
LEG Immobilien's competitive advantage stems from its scale as North Rhine-Westphalia's dominant residential landlord and its vertically integrated property services. The company benefits from high barriers to entry in German residential real estate, where fragmented ownership and strict tenant protections favor established operators. LEG's 50+ year operating history provides unmatched local market knowledge for acquisitions and value-add management. However, the company faces intensifying competition from institutional investors like Vonovia in the German multi-family sector. While LEG's regional focus allows efficient operations, it lacks the national diversification of larger peers. The company's €1.3B revenue base is modest compared to industry leaders, potentially limiting capital recycling opportunities. LEG differentiates through its commercial/garage assets and energy services, but its heavy debt load (7.4x net debt/EBITDA) may constrain growth versus better-capitalized competitors. The firm's IT and third-party service offerings provide ancillary income streams most rivals lack.