| Valuation method | Value, CHF | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | 67.70 | -38 |
| Graham Formula | 10.70 | -90 |
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/parking spaces. As an integrated property firm, LEG provides comprehensive services including property management, location development, IT services, and energy generation. Founded in 1970, the company has established itself as a key player in Germany's affordable housing sector, benefiting from stable rental income streams and long-term tenant relationships. With a market cap exceeding €4.9 billion, LEG combines scale advantages with local market expertise in one of Europe's most robust real estate markets. The company's focus on energy-efficient properties and digitalization initiatives positions it well for evolving tenant demands and regulatory changes in the German housing sector.
LEG Immobilien offers investors exposure to Germany's stable residential real estate market, characterized by high occupancy rates and inflation-linked rental income. The company's €1.3 billion revenue and €436 million operating cash flow demonstrate strong cash generation, though high leverage (€9.7 billion debt) warrants monitoring amid rising interest rates. The 3.3% dividend yield (€2.42/share) provides income appeal, but compressed margins (5% net income margin) reflect cost pressures. LEG's regional concentration in North Rhine-Westphalia offers operational efficiencies but creates geographic risk. Valuation appears reasonable at 0.38x price-to-book (€4.9bn market cap vs €12.8bn equity), though sector-wide headwinds from energy regulations and construction costs may persist. Suitable for investors seeking German real estate exposure with moderate risk tolerance.
LEG Immobilien's competitive position stems from its scale as Germany's third-largest residential landlord, with particular strength in the affordable housing segment of North Rhine-Westphalia. The company benefits from high barriers to entry in German residential real estate, where fragmented ownership and strict tenant protections favor established players. LEG's vertically integrated model—combining property ownership with in-house management services—creates cost advantages versus smaller competitors. However, the company faces intensifying competition from digital-first platforms like Vonovia that are investing heavily in smart home technologies. LEG's regional concentration (85% of portfolio in NRW) provides local market expertise but limits diversification compared to nationwide players. The company's €305 million cash position provides flexibility for value-add acquisitions, though its 76% loan-to-value ratio constrains aggressive expansion. Energy efficiency investments (15% of capex) help future-proof assets against tightening EU regulations. While LEG's focus on working-class housing provides recession resilience, it exposes the company to political risks around rent controls in Germany's tense housing market.