LEG Reports Higher Profits, Expects Earnings Growth in 2026

Real estate group LEG has increased its profits following the end of the sector crisis.

The company reported on Wednesday that net earnings for the first nine months reached approximately EUR1.1 billion (previous year: EUR10.4 million). In operational terms, LEG posted a 19.3 percent increase in its key performance figure, adjusted funds from operations (AFFO), reaching EUR181.3 million. Across its entire portfolio, LEG was able to raise rents by 3.1 percent, while the vacancy rate for its apartments stood at 2.5 percent. "With targeted earnings growth of ten percent this year and a further five percent next year, we are demonstrating attractive gains in the current interest rate and market environment," said LEG CEO Lars von Lackum.

The company reaffirmed that full-year AFFO is expected to reach between EUR215 million and EUR225 million. Last year, LEG recorded EUR200 million in this metric. For the 2026 financial year, LEG anticipates "further significant earnings growth," with AFFO projected in a range of EUR220 million to EUR240 million. This would represent an additional five percent increase compared to 2025, according to the company.

Industry leader Vonovia has also boosted profits, partly due to rising residential property prices. LEG is likewise benefiting from the real estate market recovery: "Based on increasing property prices, LEG expects a revaluation gain of plus 1.5 to plus 2.0 percent for its real estate assets in the second half of 2025," the company added.

(Report by Matthias Inverardi, edited by Sabine Wollrab. For inquiries, please contact our editorial team at [e-mail] (for politics and economics) or [e-mail] (for companies and markets).