German residential landlord LEG Immobilien SE reported FY25 results exceeding analyst expectations, with net cold rent of €919.9 million, up 7% year-on-year. Like-for-like rental growth accelerated to 3.5%, while in-place rent per square metre rose to €7.04. The company owns 173,200 properties, with 80% concentrated in North Rhine-Westphalia, delivering solid performance against market projections.

Adjusted funds from operations surged 10% to €220.5 million, topping estimates. LEG proposed a dividend of €2.92 per share, an 8% increase, though paid partially in shares. EPRA net tangible assets per share climbed 9% to €137.14, while portfolio valuation reversed 2024's decline with 3% growth. Despite these gains, vacancy rates edged up 10 basis points to 2.6%.

Jefferies maintained a 'buy' rating with a €88 price target, implying 33% upside from current levels. The brokerage identified inflation, yield expansion, and regulatory changes as key risks. LEG shares have traded between €58.75 and €77.95 over the past year, reflecting the volatility Germany's residential property market has experienced.