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• AFFO Guidance: Increased from EUR180 million to EUR200 million, now EUR190 million to EUR210 million, indicating a 10% increase in AFFO per share year on year.

• Vacancy Rate: Reduced by 10 basis points to a record low of 2.5%.

• Free-Financed Rent Increase: Achieved 3.6% in 2023, expected 3.8% to 4% in 2024.

• Devaluation Rate: Moderated to 1.6%, below the midpoint of the guidance range of 1% to 3%.

• Gross Yield: Portfolio offers a 4.9% gross yield.

• Disposals: Year-to-date disposals reached EUR285 million.

• Net Cold Rent: Increased by 3.3% to EUR427.9 million.

• Recurring Net Operating Income: Rose by 3.2% to EUR350.2 million.

• Adjusted EBITDA: Declined by 3.4% due to lower contribution from green electricity production.

• AFFO: Decreased by 7.5% year over year to EUR109.7 million.

• Interest Rate: Average interest rate at 1.66% with an average maturity of six years.

• Pro-Forma LTV: Slightly lower at 48.3%, expected to decline further to below 48% by year-end.

• ICR: Stands at 4.3 times.

• Warning! GuruFocus has detected 13 Warning Signs with LEGIF.

• List of 52-Week Lows

• List of 3-Year Lows

• List of 5-Year Lows

Release Date: August 09, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• LEG Immobilien SE (LEGIF) increased its AFFO guidance to EUR190 million to EUR210 million, indicating a strong 10% increase in AFFO per share year on year.

• The company achieved a record low vacancy rate of 2.5%, reflecting effective operational management.

• LEG Immobilien SE (LEGIF) reported a 3.3% increase in net cold rent, driven by a 2.9% increase in in-place rent on a like-for-like basis.

• The company successfully disposed of EUR285 million worth of assets year-to-date, demonstrating strong progress in its disposal strategy.

• LEG Immobilien SE (LEGIF) maintains a strong ESG rating, being listed as number six within Sustainalytics' global real estate coverage.

Negative Points

• AFFO decreased by 7.5% year over year to EUR109.7 million, impacted by lower contributions from green electricity production and higher interest payments.

• The company's LTV remains above its mid-term target of 45%, currently standing at 48.3%, indicating a need for further deleveraging.

• Despite progress in disposals, the company faces challenges in achieving its LTV target, potentially requiring additional asset sales.

• The devaluation cycle, although moderating, resulted in a 1.6% decline in property values, impacting the company's financial metrics.

• Higher personnel costs and increased operating expenses contributed to a decline in adjusted EBITDA by 3.4%.