Real Estate: Property prices weigh on LEG
The real estate company is considered sought after and can continue to increase its earnings. However, interest rate developments in the second half of the year could lead to a downward revaluation.
The German real estate company LEG has reported a 4.9% increase in its key earnings metric, AFFO, to €190.1 million for the first nine months. The company has seen a 3.9% rise in rent for comparable properties and a low vacancy rate of 2.5%. LEG has announced expected growth in earnings for 2026, with an AFFO forecast of €220-240 million, and €230-250 million for 2027.
However, the company is facing challenges due to rising interest rates driven by inflation, which are impacting property prices. Grand City Properties has increased its stake in LEG to 20.04%.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
