LEG Immobilien SE

Investor Presentation • May 11, 2022

LEG Immobilien SE Q1-2022 Results

11 May 2022 Q1-2022

1 Highlights Q1-2022 2 Portfolio & Operating Performance

• 3 Financial Performance
• 4 Outlook
  • Appendix

LEG Immobilien SE

Disclaimer

While LEG Immobilien SE ("The Company") has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature and is intended to provide an introduction to, and an overview of the Company's business. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external sources, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate.

This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realised from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation, and supply and demand. The Company has based these forwardlooking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and the Company does not undertake any duty to update the information and forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

This presentation does not constitute an offer or invitation to purchase or sell any shares in the Company and neither this presentation or anything in it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

Highlights Q1-2022

Q1-2022 – Financial Summary

			+/-
Operating results		Q1-2022	Q1-2021	%/bps
Net cold rent	€m	197.5	168.4	+17.3%
Recurring net rental income	€m	154.7	133.2	+16.1%
EBITDA adjusted	€m	147.2	126.0	+16.8%
FFO I	€m	121.4	104.1	+16.6%
FFO I per share	€	1.67	1.44	+16.0%
FFO II	€m	119.6	103.8	+15.2%
EBITDA margin (adj.)	%	74.5	74.8	-30bps
FFO I margin	%	61.5	61.8	-30bps
				+/-
Portfolio		31.03.2022	31.03.2021	%/bps
Residential units	number	166,342	144,519	+15.1%
In-place rent (l-f-l)	€/m2	6.20	6.04	+2.7%
Capex (adj.)1	€/m2	5.58	6.85	-18.5%
Maintenance (adj.)1	€/m2	2.32	2.59	-10.4%
EPRA vacancy rate (l-f-l)	%	2.4	2.8	-40bps

				+/-
Balance sheet		31.03.2022	31.12.2021	%/bps
Investment properties	€m	19,292.5	19,067.7	+1.2%
Cash and cash equivalents	€m	490.1	675.6	-27.5%
Equity	€m	9,139.2	8,953.0	+2.1%
Total financing liabilities	€m	9,069.0	8,885.1	+2.1%
Current financing liabilities	€m	204.6	1,518.1	-86.5%
Net debt	€m	8,554.0	8,182.1	+4.5%
LTV2	%	43.1	42.1	+100bps
Equity ratio	%	43.7	43.6	+10bps
EPRA NTA, diluted	€m	10,961.8	11,149.1	-1.7%
EPRA NTA per share, diluted	€	150.49	146.10	+3.0%

1 Excl. new construction activities on own land, backlog measures, own work capitalised and margin of LWSPlus; pls see Appendix 2 Calculation adapted to market standard: inclusion of short-term deposits and participation in other residential companies

Highlights

Financials and operations well on track

Backed by resilient business model

• FFO I +16.6% to €121.4m
• Adj. EBITDA-Margin 74.5%
• LTV 43.1%¹
  • Debt @ 7.3y for 1.16%
• NTA ps € 150.49

• Net cold rent +17.3%
• l-f-l rental growth +2.7%
• l-f-l vacancy 2.4% (–40bps)

• In 2021, strong reduction of CO2 emissions by 5.4% to 34.7 kg/sqm (location based) or 5.0% to 32.3 kg/sqm (market based)
• JV (LEG/ Rhomberg) founded: serial solutions for decarbonising residential buildings
• Providing more than 300 units to Ukrainian refugees at more than 40 locations

Moody's Baa1 rating confirmed

Solid balance sheet

Attractive portfolio Valuation uplift for H1 expected to be 6 - 7%

1 Calculation adapted to market standard: inclusion of short-term deposits and participation in other residential companies

Reacting to changing environment

High level of flexibility in respect to capital allocation

FFO I of €475m - €490m range Guidance 2022 confirmed

A resilient business model

Safeguarding robust earnings profile

Flexibility

100% Optionality on potential acquisition of BCP 50% Down-sizing of new development target to 500 units5 10x Increase of disposal program to up to 5,000 units4

Integration

15% new assets3 100% target asset class 100% LEG processes and IT

1 Total investment volume for acquired projects and own new development in % of Q1 GAV. 2 Reflects fixed prices for acquired development projects or flexibility to withdraw/ adjust development plans based on total investment volume 3 22k units acquired in 2021. 4 Original volume 300-500 units. 5 Previous target 1,000 units by 2026, 500 units in 2023 confirmed.

Highlights

Market fundamentals unchanged

Macro trends favor asset holding companies

Demand-supply gap is still widening

Further increase in demand

• As of May 2022, Germany welcomed c.600,000 refugees from Ukraine2
• Increasing demand in large cities and their outskirts: LEG portfolio with high exposure to these areas
• Economic recession drives additional demand for affordable housing

Supply even more limited – national construction target at risk

• High demand meets vacancy levels at structural lows (LEG 2.4%)
• Prices for new construction of resi buildings in GER +14.3% in 02/22 yoy with strongest rise in carpentry/ timber construction work (+33.9%)3
• Replacement costs further driven by higher energy efficiency requirements and higher staff cost
• General scarcity of craftsmen, building materials
• Discontinuation of new construction subsidies
• National 400,000 resi units p.a. target at risk

No. of completed resi units Germany

Attractive yields in inflation-proof model

Still attractive spreads vs. 10Y BUND

Rent development in line with inflation

• Historic rent development strongly linked to inflation
• 20% of LEG's portfolio is restricted with CPI-linked rent increases every third year (next: January 2023)

1 Acc. to German Federal Employment Agency to maintain Germany's productivity 2 BAMF Federal Office for Migration and Refugees 3 Federal Statistical Office (April 2022) 4 Federal Statistical Office (data for 2021 not yet available)

Carbon Balance Sheet 2021

32.3 kg CO2e/m2 on a market based and climate adjusted basis

Carbon balance sheet

• Bottom-up approach
• BAFA-factors in line with GHG-protocol
• Scope 1 and scope 2
• 32.3 kg CO2e/m2 based on heating energy
• 283k t CO2 in total (2020: 311k t)
• C. 2/3 coming from gas

Heat energy by source (100% of portfolio)

• Based on actual consumption 2020 (74% actuals, 6% actuals previous year, 20% certificates)
• Extrapolated for 2021
• Limited assurance by Deloitte

Energy efficiency of our portfolio of 144.5 kWh/m2 (2020: 157.5kWh/m2) is a function of corporate DNA & history:

Providing affordable housing in post-war Germany

LEG portfolio by construction years vs. LEG market

Reflecting our roots Distribution by energy efficiency classes LEG

Highlights

Strong CO2 reduction of 5% in 2021

Well on track for our target towards climate neutrality

to achieve climate neutrality by 2045 Aligned with strategy via LTIcomponent of compensation scheme

(s. appendix p.27)

Climate Change Act

Strong reduction in 2021 by 5.4% to 34.7kg (location based) and by 5.0% to 32.3kg (market based)

LEG fully committed to new German

• Key driver: 1) refurbishment of 3.5% of our units in 2021 and 2) better footprint of our district heating grid based on actual certificates of our utility provider vs. original assumption of market average
• First time disclosure of location based and market based figures (both climate

Portfolio & Operating Performance 2

Portfolio transactions

Number of units based on date of transfer of ownership1,2

1 Residential units. 2 Note: The date of the transaction announcement and the transfer of ownership are usually several months apart. The number of units may therefore differ from other disclosures, depending on the data basis. 3 BW = Baden-Wurttemberg, HB = Bremen, LS = Lower Saxony, NRW = North Rhine-Westphalia, RP = Rhineland-Palatinate, SH = Schleswig-Holstein, SL = Saarland. 4 Up to 5,000 disposals in FY 2022.

Acquisitions (Locations/State3)

Q1 2021

NRW – Oldenburg (LS)

Q2 2021

NRW – Oldenburg (LS) – Hanover (LS) – Brunswick (LS) – Kaiserslautern, Koblenz (RP)

Q3 2021

NRW – Hanover (LS) – Osnabrück (LS) - Brunswick (LS) - Bremen

Q4 2021

NRW – DeuWo-Portfolio (RP/BW) – Bremen – Hanover (LS) – Kiel (SH) – Adler-Portfolio (LS, SH)

Q1 2022

NRW – Flensburg (SH) – Kiel (SH) – Hanover (LS) – Rhine-Neckar (RP/BW)

Q2 2022

NRW – Brunswick (LS)

Portfolio & Operating Performance

On track for 3.0% l-f-l rental growth target

Strong contribution from the stable markets' free-financed portfolio

l-f-l free financed rent development

• Ongoing strong l-f-l rental growth driven by all of our three market segments
• Free financed portfolio with +3.2% overall and +3.5% in the stable markets
• Rent restricted units +0.4% l-f-l to €4.99 sqm/month; no cost rent adjustments in 2022

Portfolio & Operating Performance

Positive trends across all KPIs and market clusters

Strong rent increase momentum while vacancy drops even further

Markets

	Total portfolio		High-growth		Stable		Higher-yielding
	Q1-2022	 (YOY)	Q1-2022	 (YOY)	Q1-2022	 (YOY)	Q1-2022	 (YOY)
# of units	166,342	+15.1%	49,401	+17.7%	66,417	+9.8%	50,524	+20.2%
GAV residential assets (€m)	18,076	+29.5%	7,858	+33.4%	6,672	+26.0%	3,549	+27.8%
In-place rent (m2 ), l-f-l	€6.20	+2.7%	€7.00	+2.6%	€5.94	+2.9%	€5.71	+2.5%
EPRA vacancy, l-f-l	2.4%	-40bps	1.6%	-20bps	2.4%	-50bps	3.4%	-70bps

Capex und Maintenance

Ongoing focus on growth and energy efficiency

• Increase of total investments by 4.2% y-o-y
• Adjusted for new construction on own land, backlog from acquisitions and capitalized own services, investments per sqm decreased by 16.4%
• Some supply bottlenecks are noticeable, but the overall impact is low
• On track to reach full year target of 4,000 tons CO2 reduction from modernisation projects
• Steering towards FY 2022 target of €46-48 per sqm in a difficult environment, i.e.despite cost inflation and supply chain bottlenecks
• Increase in new construction and others (not part of LEG's investment/sqm guidance) driven by new construction activities
• Acquisition of new development projects not treated as capex

1 Excl. new construction activities on own land, backlog measures, own work capitalised and LWS Plus margin. For further details see appendix.

Expanding the value chain and positioning as solution provider Renovate NOW - ReNOWate

Product

Company

• Renowate to provide comprehensive, serial, energetic refurbishment solutions
• 'One stop shop': measuring, planning, production and installation provided internally
• Key goals: reduction of modernization time and cost
• Approach to be tested on more than 10 LEG pilot projects in 2022/2023 (more than 200 units)

Innovative five steps process of serial energetic renovation clearly differentiates from competitors

STEP 2

Transfer to a digital twin (BIM principle) and integral planning of all services

Status Quo

STEP 3

• 50:50 joint venture with the Rhomberg Group, an internationally operating and innovative family-owned construction company
• Offices in Düsseldorf und Bregenz
• Product to be offered to third parties after trial phase providing investment light growth opportunity
• As of 05/22: 10 employees (incl. management)

Financial Performance 3

Financial highlights Q1-2022

Strong impact from acquisitions, margins stay on track

Net cold rent

Adj. EBITDA

€m

€m

Recurring net rental and lease income €m

FFO I

Recurring net rental and lease income

• Strong increase in net cold rent through acquisitions but also organic growth
• NRI further driven by higher contribution from value-add services
• Partially offset by increase in staff cost (+275 FTEs, mainly via acquisition from Adler) and higher externally procured maintenance

Adj. EBITDA

On track for FY 2022 margin target of ~75%

FFO I ps

• Q1-2021 €1.44
• Q1-2022 €1.67 (+16%)

Financial Performance

FFO Bridge Q1-2022

Strong contribution from acquisitions and rent growth

Portfolio valuation Q1-2022

Market segment	Residential Units	GAV Residential Assets (€m)	GAV/ m2 (€)	Gross yield	In-Place Rent Multiple	GAV Commercial/ Other (€m)	Total GAV (€m)
High-Growth Markets	49,401	7,858	2,419	3.4%	29.2x	334	8,191
Stable Markets	66,417	6,672	1,570	4.5%	22.2x	230	6,902
Higher-Yielding Markets	50,524	3,549	1,162	5.7%	17.5x	116	3,665
Total Portfolio	166,342	18,076	1,713	4.3%	23.4x	680	18,7591

1 GAV of IAS 40 portfolio (including leasehold, land value and assets under construction) was €19,292m

Well balanced financial profile

No significant maturities until 2024

42.1 43.1 Q1-2021 Q1-2022 1.29 1.16 Q1-2021 Q1-2022 Loan-to-value¹ % Average interest costs % Average debt maturity years 7.5 7.3 Q1-2021 Q1-2022

Highlights

• Refinancing of €1.4bn bridge loan in January via issuance of bond with three tranches and total volume of €1.5bn (avg. maturity 7.7years for average coupon of 0.92%)
• Average debt maturity at 7.3 years (-0.2y)
• Average interest costs down by 13 bps vs. Q1-2021
• No significant maturities until 2024
• LTV in-line with target level
• Net debt/EBITDA increased from 11.7x to 13.5x2.

Weighted avg. interest (excl. subsidised loans)

1.9% 1.5% 1.3% 0.9% 1.2% 1.0% 1.0% 1.5% 0.8% 1.0% 0.8% 1.6%

Outlook 4

Outlook

2022 guidance

Guidance unchanged – external growth options to be evaluated

		2022
FFO I		€475m – 490m
l-f-l rent growth		3.0% c.
EBITDA margin		c. 75%
Investments		46 – 48€/sqm1 c.
LTV		max. 43%
Dividend		70% of FFO I
Acquisition ambition	Highly selective due to capital market environment BCP option exercise to be evaluated until 30 Sep 2022	Not reflected in guidance: c. 7,000 units
Disposals		Not reflected in guidance: up to 5,000 units
Environment	Reduction of CO 2022–2025 4,000 2022	emissions by 10% based on CO e kg/sqm 2 2 tons CO reduction from modernisation projects 2
Social	2022–2025 2022	Improve Customer Satisfaction Index (CSI) to 70% Maintain high employee satisfaction level (66% Trust Index)
Governance	2022	Maintain Sustainalytics rating within the negligible risk range (<10)

1 Includes €2.75/sqm for holistic refurbishment projects in Wolfsburg and Göttingen

Appendix 5

Portfolio & Operating Performance

LEG's portfolio comprised c. 166,300 units end of Q1

Well balanced portfolio with significant exposure now in target markets outside NRW

Outside North Rhine-Westphalia (c. 33,100 units / c. 20%)

Growth along our investment criteria

• Asset class affordable living
• Entry in new markets outside NRW via orange and green markets

1,000 units per location

Critical size in locations outside NRW reached, allowing for growth into higher-yielding markets

Appendix

€

Further building on our track record

8th dividend increase in a row

Dividend per share / Portfolio – residential units

Attractive payout policy

• 8th dividend increase in a row
• 70% of 2021 FFO I in line with payout policy
• Dividend yield of 4.1%¹
• Total payout of c. €300m
• Offering of scrip dividend planned
• Well balanced capital management to finance growth: Since 2013 total dividends paid out to shareholders of c. €1.3bn vs. capital inflows from the issue of new shares, conversion of one convertible bond and scrip dividends of c. €1.3bn

Changes to remuneration system and new 2022/25 ESG targets integrated – Proposed to AGM 2022

Purchase of LEG shares equivalent to a gross basic salary within 4 years

A highly committed management team

LEG shares1 Michael Zimmer Chairman 97,257 Dr. Johannes Ludewig 1,051 Dr. Claus Nolting - - - Dr. Jochen Scharpe 3,000 Dr. Sylvia Eichelberg - - - Stefan Jütte Deputy Chairman 250 Martin Wiesmann 1,400 Total 102,958 Lars von Lackum CEO Susanne Schröter-Crossan CFO Dr. Volker Wiegel COO LEG shares 7,750 1,515 1,919 Total 11,184 ¹ Management Board Supervisory Board

Inflation - Portfolio & financing structure as well as a small development exposure limit risks

Impact on rents

Appendix

• Rent restricted units are basically hedged (20% of portfolio)
  • Rents linked to Consumer Price Index (CPI)
  • However, there is a time lag as in-place-rents can only be adjusted every three years (next time 2023)

Free-financed units

• In-place-rent adjustments for staying tenants via rent table adjustments (take place every 2 years), with strong link to CPI. Cap at 20% (11% in tense markets) within 3 years offers some hedge
• In general tenant fluctuation (LEG c. 10%) offers opportunity to adjust rents
• In tense markets the reletting rent can be increased to a level of 10% above the local reference rent

Impact on capex

• New construction cost index up 14%1 LEG with relatively small own development pipeline/ exposure
• Minor impact on 2022 investment programme due to long-term contracts

Impact on financing

• Fixed interest rates on 95% of financial debt,
• Average maturity of 7.3 years, no major maturity until 2024
• A 25 bps increase in interests would have a negative impact of €1m on LEG's cash interest payments

Valuation framework

Frequency Valuation Date	Semi-annually 30 June - (cut off for data 31 March) 31 December - (cut off for data 30 September)	Same as LEG
Scope	Complete portfolio incl. commercial units, parking spaces, including land	Complete portfolio incl. commercial units, parking spaces, excluding land
Valuation Level	Address-specific (building entrance level)	Economic units (homogeneous cluster of adjacent buildings with similar construction date and condition) provided by LEG
Technical Assessment	Physical review of 20% of the portfolio as part of technical reviews, data updates in EPIQR (data base for technical condition of buildings)	Every economic unit has been inspected at least once Rolling annual inspections, especially of new acquisitions and modernised properties Additional information on change of condition provided by LEG
Model	10 year DCF model, terminal value in year 11, finite Assumption that buildings have a finite life (max. 80 years), decrease in value over a building's life Residual value of land at the end of building's life Cap rate1 increased to reflect the decrease of a building's value over its lifetime	10 year DCF model, terminal value in year 11, infinite No separate valuation of plot size/ value of land Exit cap rate based on market evidence
Calculation of Discount-/Cap-Rate	Determination based on data from expert committees (publicly appointed surveyor boards) plus property specific premiums and discounts	Consistent DCF model for all 402 cities/districts and all clients plus property specific premiums and discounts. Results cross-checked with market data (local land valuation boards, asking prices, own transaction data base)
Inclusion of legislation (e.g. rental brake)	Yes, via cash-flow	Yes, via cash-flow
Relevance for Audit of Financial Statements	Yes, model and results audited by the Auditor	No, second opinion for validation only

LEG CBRE (Appraiser since IPO in 2013)

EPRA NRV – NTA – NDV

€m	31.03.2022			31.12.2021
	EPRA NRV – diluted	EPRA NTA1 – diluted	EPRA NDV – diluted	EPRA NRV – diluted	EPRA NTA – diluted	EPRA NDV – diluted
IFRS equity attributable to shareholders (before minorities)	9,114.1	9,114.1	9,114.1	8,927.9	8,927.9	8,927.9
Hybrid instruments	29.9	29.9	29.9	455.7	455.7	455.7
Diluted NAV (at Fair Value)	9,114.0	9,114.0	9,114.0	9,383.6	9,383.6	9,383.6
Deferred tax in relation to fair value gains of IP and deferred tax on subsidised loans and financial derivatives	2,090.7	2,079.0	–	2,056.5	2,044.8	–
Fair value of financial instruments	45.6	45.6	–	95.2	95.2	–
Goodwill as a result of deferred tax	-267.3	-267.3	-267.3	-267.3	-267.3	-267.3
Goodwill as per the IFRS balance sheet2	–	-35.9	-35.9	–	-103.4	-103.4
Intangibles as per the IFRS balance sheet	–	-3.6	–	–	-3.8	–
Fair value of fixed interest rate debt	–	–	-138.2	–	–	-307.4
Deferred taxes of fixed interest rate debt	–	–	26.9	–	–	59.5
Revaluation of intangibles to fair value	–	–	–	–	–	–
Estimated ancillary acquisition costs (real estate transfer tax)	1,868.3	–	–	1,843.9	–	–
NAV	12,881.3	10,961.8	8,729.5	13,111.9	11,149.1	8,765.0
Fully diluted number of shares	72,839,625	72,839,625	72,839,625	76,310,308	76,310,308	76,310,308
NAV per share (€)	176.84	150.49	119.85	171.82	146.10	114.86

1 Including RETT (Real Estate Transfer Tax) would result into an NTA of €12,817.2m or €175.96 per share 2 Reduction of goodwill (€67.6m) relating to the adjustment of the preliminary purchase price allocation from the transaction with the Adler Group

Balance sheet

€m	31.03.2022	31.12.2021
Investment property	19,292.5	19,067.7
Other non-current assets	926.6	617.8
Non-current assets	20,219.1	19,685.5
Receivables and other assets	170.8	155.6
Cash and cash equivalents	490.1	675.6
Current assets	660.9	831.2
Assets held for sale	21.0	37.0
Total Assets	20,901.0	20,553.7
Equity	9,139.2	8,953.0
Non-current financing liabilities	8,864.4	7,367.0
Other non-current liabilities	2,285.5	2,335.0
Non-current liabilities	11,149.9	9,702.0
Current financing liabilities	204.6	1,518.1
Other current liabilities	407.3	380.6
Current liabilities	611.9	1,898.7
Total Equity and Liabilities	20,901.0	20,553.7

1 Reduction of goodwill (€67.6m) relating to the adjustment of the preliminary purchase price allocation from the transaction with the Adler Group

31.12.2021	Inve
19.067.7	A
617.8
19,685.5
155.6
675.6	Oth
831.2
37.0	S
20,553.7
8,953.0
7,367.0	Cas
2.335.0	€
9,702.0	Ir
1,518.1
380.6

Investment property

• Acquisitions: +€162.7m
• Capex: +€70.4m
• Assets held for sale: -€8.9m

Other non-current assets

• Goodwill reduction: -€67.7m1
• Stake in BCP: +€316.6m
• New HQ: +€54.5m

Cash and cash equivalents

• Cash flow from operating activities €116.1m
• Investing activities –€465.4m
• Financing activities €163.8m
  • Bond issuance €1,482.4m
  • Repayment of loans –€1,412.1m (bridge loan acquisition)

Loan to Value

€m	31.03.2022	31.12.2021
Financial liabilities	9,069.0	8,885.1
Excluding lease liabilities (IFRS 16)	24.9	27.4
Cash & cash equivalents1	530.1	745.6
Net Debt	8,514.0	8,112.1
Investment properties	19,292.5	19,067.7
Properties held for sale	21.0	37.0
Prepayments for investment properties and acquisitions	26.0	25.2
companies1 Participation in other residential	435.8	119.2
Property values	19,775.3	19,249.1
Loan to Value (LTV) in %	43.1	42.1

• YoY increase by 100 bps following payments for acquisitions
• Maximum target of 43% respected
• Adaptation of current market standards by including shortterm deposits into cash equivalents and participation in other residential companies into property values

1 Calculation adapted to the current standard practices, i.e. reduction of net debt by short-term deposits and inclusion of participation in other residential companies into property values

Appendix

FFO calculation

€m	Q1 -2022	Q1 -2021
Net cold rent	197.5	168.4
Profit from operating expenses	-2.0	-0.7
Maintenance (externally -procured services)	-19.4	-16.2
Staff costs	-25.7	-21.1
Allowances on rent receivables	-4.2	-2.3
Other	7.4	3.5
Non -recurring special effects (rental and lease)	1.1	1.6
Recurring net rental and lease income	154.7	133.2
Recurring net income from other services	3.2	2.1
Staff costs	-7.6	-6.5
Non -staff operating costs	-7.7	-4.1
Non -recurring special effects (admin.)	4.6	1.3
Recurring administrative expenses	-10.7	-9.3
Other income and expenses	0.0	0.0
Adjusted EBITDA	147.2	126.0
Cash interest expenses and income	-26.8	-20.5
Cash income taxes from rental and lease	1.0	-1.4
FFO I (including non -controlling interests)	121.4	104.1
Non -controlling interests	0.0	0.0
FFO I (excluding non -controlling interests)	121.4	104.1
FFO II (including disposal of investment property)	119.6	103.8
Capex	-70.4	-69.8
Capex -adjusted FFO I (AFFO)	51.0	34.3

Net cold rent

+€29.1m or +17.3% driven by portfolio growth (83%) and organic growth (17%)

Maintenance

Higher externally procured maintenance

Staff costs

Growth in staff costs due to additional 275 FTE's in operations, esp. from Adler portfolio acquisition and increased tariff

Other

Increase driven by income from value -added services

Recurring administrative expenses

Slightly higher headcount (+19 FTEs), general cost increases

Cash interest expenses

Decline in average interest costs from 1.29% to 1.16%, but increase in financial debt

Appendix

Income statement

€ m	Q1 -2022	Q1 -2021
Net rental and lease income	151.0	129.0
Net income from the disposal of investment property	-0.6	-0.2
Net income from the valuation of investment property	0.3	1.9
Net income from the disposal of real estate inventory	0.0	0.0
Net income from other services	3.0	1.4
Administrative and other expenses	-16.6	-11.5
Other income	0.0	0.0
Operating earnings	137.1	120.6
Net finance costs	46.2	23.1
Earnings before income taxes	183.3	143.7
Income tax expenses	-28.8	-19.3
Consolidated net profit	154.5	124.4

Net rental and lease income

NRI +17.1% or +€22m due to increase in net cold rent

Net income from other services

Relates to biomass plant, increase due to higher energy sales revenues

Administrative and other expenses

Slightly higher headcount as well as consulting fees for capital market financing and projects. Recurring admin. costs +€1.4m yoy

Net finance costs

• €7.4m increase in interest expenses mainly due to issue of corporate bonds
• €45.6m in fair value measurement of derivatives linked to the convertible bonds (yoy: +€2.4m)

Income tax expenses

Slight increase in the effective tax rate from 18.5% to 19.5% mainly due to the acquisition of companies from Adler

Reported interest expense Increase driven by growth in financing liabilities in connection

with the portfolio growth

Interest expenses from loan

Expenses in connection with the

Cash effective interest expense Interest coverage of 5.49x

amortisation

issue of bonds

(Q1-2021: 6.15x)

Cash effective interest expense

€m	Q1-2022	Q1-2021
Reported interest expense	32.3	24.9
Interest expense related to loan amortisation	-4.7	-4.1
Interest costs related to valuation of assets/liabilities	0.0	0.0
Interest expenses related to changes in pension provisions	-0.3	-0.2
Other interest expenses	-0.5	-0.1
Cash effective interest expense (gross)	26.8	20.5
Cash effective interest income	0.0	0.0
Cash effective interest expense (net)	26.8	20.5

Appendix

Investments

Reconciliation from investments to adjusted investments

€m	Q1-2022	Q1-2021	FY-2021
Maintenance	25.4	24.4	110.9
Adjusted maintenance	25.0	24.4	108.0
Capex	72.8	69.8	341.2
Thereof LWS Plus effect	2.4	2.4	10.2
Thereof public safety measures in connection with acquisitions	0.5	0.1	2.2
Thereof new construction	6.8	0.5	14.2
Thereof capitalisation of own services	3.0	2.2	15.8
Adjusted capex	60.1	64.6	298.7
Total investments	98.2	94.2	452.1
Adjusted total investments	85.1	89.0	406.8
Area of investment properties (million sqm)	10.78	9.43	9.57
Adjusted investment per sqm (€)	7.89	9.44	42.50

• Capex in FFO-table to calculate the AFFO corresponds to total capex minus LWSPlus effect
• The line item maintenance for net rental and lease income calculation includes only maintenance work done by external companies (€19.4m). The delta to the €25.4m is shown under staff costs

Refinancing of subsidised loans lifting value

Rent potential subsidised units

• Until 2028, around 24,000 units will come off rent restriction
• Units show significant upside to market rents
• The economic upside can theoretically be realised the year after restrictions expire, subject to general legal and other restrictions5

Around 65% of units to come off restriction until 2028

Number of units coming off restriction and rent upside

Spread to market rent

€/m2/month

1 All already released in Q1. 2 Employed by CBRE as indicator of an average rent value that could theoretically be achieved, not implying that an adjustment of the in-place rent to the market rent is feasible, as stringent legal and contractual restrictions regarding rent increases exist. 3 ≤5 years = 2022-2027; 6-10 years = 2028-2032; >10 years = 2033ff. 4 Rent upside is defined as the difference between LEG in-place rent and market. 5 For example rent increase cap of 11% (tense markets) or 20% for three years.

Fixed interest 89.9% Derivatives 4.9% Variable interest 5.2%

LEG additional creditor information

Unsecured financing covenants	Financing mix
-------------------------------	---------------

Appendix

Covenant	Threshold	Q1-2022
Consolidated Adjusted EBITDA / Net Cash Interest	≥1.8x	5.7x
Unencumbered Assets / Unsecured Financial Indebtedness	≥125%	171%
Net Financial Indebtedness / Total Assets	≤60%	41%
Secured Financial Indebtedness / Total Assets	≤45%	15%

Type	Rating	Outlook
Long Term Rating	Baa1	Stable
Short Term Rating	P-2	Stable

1 Average net debt last four quarters / EBITDA LTM 2 Calculation adapted to the current standard practices, i.e. reduction of net debt by short-term deposits and inclusion of participation in other residential companies into property values

Ratings (Moody's) Key financial ratios

	Q1-2022	Q1-2021
Net debt / EBITDA1	13.5x	11.7x
LTV2	43.1%	42.1%

Appendix

Capital market financing Corporate bonds

Maturity	Issue Size	Maturity Date	Coupon	Issue Price	ISIN	WKN
2017/2024	€500m	23 Jan 2024 (7 yrs)	1.250% p.a.	99.409%	XS1554456613	A2E4W8
2019/2027	€500m	28 Nov 2027 (8 yrs)	0.875% p.a.	99.356%	DE000A254P51	A254P5
2019/2034	€300m	28 Nov 2034 (15 yrs)	1.625% p.a.	98.649%	DE000A254P69	A254P6
2021/2033	€500m	30 Mar 2033 (12 yrs)	0.875% p.a.	99.232%	DE000A3H3JU7	A3H3JU
2021/2031	€600m	30 Jun 2031 (10 yrs)	0.750% p.a.	99.502%	DE000A3E5VK1	A3E5VK
2021/2032	€500m	19 Nov 2032 (11 yrs)	1.000% p.a.	98.642%	DE000A3MQMD2	A3MQMD
2022/2026	€500m	17 Jan 2026 (4 yrs)	0.375% p.a.	99.435%	DE000A3MQNN9	A3MQNN
2022/2029	€500m	17 Jan 2029 (7 yrs)	0.875% p.a.	99.045%	DE000A3MQNP4	A3MQNP
2022/2034	€500m	17 Jan 2034 (12 yrs)	1.500% p.a.	99.175%	DE000A3MQNQ2	A3MQNQ
Financial Covenants		Adj. EBITDA/ net Unencumbered Net financial Secured	cash interest assets/ unsecured financial debt/ total assets financial debt/ total assets	≥ 1.8 x debt ≥ 125% ≤ 60% ≤ 45%

Capital market financing Convertible bonds

Maturity Date 30 June 2028 1 September 2025 0.875% p.a. 0.4% p.a. Coupon (semi-annual payment: (semi-annual payment: 15 January, 15 July) 1 March, 1 September) 3,470,683 3,556,142 # of shares €118.4692 €155.2500 Initial Conversion Price €115.2511 €154.6620 Adjusted Conversion Price1 (as of 14 June 2021) (as of 10 June 2021) From 22 September 2022, if LEG From 5 August 2025, if LEG share share price >130% of the then price >130% of the then applicable Issuer Call applicable conversion price conversion price DE000A2GSDH2 DE000A289T23 ISIN
8 years/ 8 years/ Term /
2017/2025 2020/2028 €400m €550m Issue Size

1 Dividend-protection: The conversion price will not be adjusted until the dividend exceeds €2.76 (2017/2025 convertible) and €3.60 (2020/2028 convertible).

LEG share information

1 Shareholdings according to latest voting rights notifications.

Appendix

Sustainable increase in share price and market capitalisation since IPO

IPO = Initial Public Offering; CI = capital increase; CIK = capital increase in kind; CB = convertible bond; SD = stock dividend

IR Contact

Investor Relations Team

Frank Kopfinger, CFA Head of Investor Relations & Strategy

Tel: +49 (0) 211 4568-550 E-Mail: frank.kopfinger@leg-se.com Elke Franzmeier Corporate Access & Events

Tel: +49 (0) 211 4568-159 E-Mail: elke.franzmeier@leg-se.com

Karin Widenmann Senior Manager Investor Relations

Tel: +49 (0) 211 4568-458 E-Mail: karin.widenmann@leg-se.com Gordon Schönell, CIIA Senior Manager Investor Relations

Tel: +49 (0) 211 4568-286 E-Mail: gordon.schoenell@leg-se.com

LEG Immobilien SE ǀ Flughafenstraße 99 ǀ 40474 Düsseldorf, Germany E-Mail: ir@leg-se.com ǀ Internet: www.leg-se.com