LEG Immobilien SE

Investor Presentation • Nov 10, 2021

LEG Immobilien SE 9M-2021 Results

10 November 2021 9M-2021

9M-2021 Results

Agenda

• 1 Highlights 9M-2021
• 2 Portfolio & Operating Performance
• 3 Financial Performance
• 4 Outlook

5

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 9M-2021

1

9M-2021 – Financial Summary

				+/-
Operating results		9M-2021	9M-2020	%/bps
Net cold rent	€m	509.7	464.5	+9.7%
Net rental income	€m	407.3	365.7	+11.4%
EBITDA adjusted	€m	400.6	360.2	+11.2%
FFO I	€m	334.2	296.7	+12.6%
FFO I per share	€	4.62	4.25	+8.7%
FFO II	€m	332.0	295.5	+12.4%
EBITDA margin (adj.)	%	78.6	77.5	+110bps
FFO I margin	%	65.6	63.9	+170bps

				+/-
Portfolio		30.09.2021	30.09.2020	%/bps
Residential units	number	145,656	138,601	+5.1%
In-place rent (l-f-l)	€/m2	6.11	5.91	+3.3%
Capex (adj.)1	€/m2	22.13	22.30	-0.8%
Maintenance (adj.)1	€/m2	7.50	6.72	+11.7%
EPRA vacancy rate (l-f-l)	%	2.6	3.1	-50bps

Balance sheet		30.09.2021	31.12.2020	+/- %/bps
Investment properties	€m	16,179.8	14,582.7	+11.0%
Cash and cash equivalents	€m	515.1	335.4	+53.6%
Equity	€m	8,366.4	7,389.9	+13.2%
Total financing liabilities	€m	6.748,1	5,869.0	+15.0%
Current financing liabilities	€m	108.6	491.3	-77.9%
Net debt	€m	6,207.5	5,502.8	+12.8%
LTV	%	38.0	37.6	+40bps
Equity ratio	%	48.1	48.4	-30bps
EPRA NTA, diluted	€m	10,484.8	9,247.6	+13.4%
EPRA NTA per share, diluted	€	137.40	122.43	+12.2%

1 Excl. new construction activities, backlog measures and own work capitalised; compare slide 33

Highlights

On track for a record result

FFO I pointing towards upper end of €410m – 420m range

• FFO I +12.6% to €334.2m
• Adj. EBITDA-Margin 78.6% (+110bps)
• LTV 38.0%
• Debt @ 7.4y for 1.23%

• NTA ps € 137.40 (+12.2% vs. FY 2020)

• Net cold rent +9.7%

• l-f-l rental growth +3.3%

• l-f-l vacancy 2.6% (–50bps)

• Upgrade I: New Sustainalytics rating of 7.8 (10.4), comfortably within negligible risk category

• Upgrade II: New built units target of 1,000 units by 2026 (prev. 500 units by 2023)
• Upgrade III: New and more ambitious ESG STI/LTI targets for 2022/ 2025

Keeping the momentum

C. 7,000 units added in 2021

We delivered on our target of c. 7,000 units and aim for another c. 7,000 units in 2022

Attractive portfolio

Valuation uplift for H2 expected to be 4–5%

Guidance 2021 confirmed

FFO I towards upper end of €410m – €420m range

More growth to come Guidance 2022: FFO I €450m – €460m

Highlights

Delivered on our growth ambition with c.6,900 units acquired

In line with our criteria – focus on affordable housing – in our target markets

Financial summary of acquisitions

• As of today c. 6,900 units to be transferred in 2021

• 80% high growth markets, >80% outside NRW

• Purchase price c. €900m
• Net cold rent multiple of c. 26x based on in-place rent and in-line with own valuation
• Annualised contribution of FFO I of c. €20m
• C. 5,500 to be transferred in Q4 2021, with vast majority as of 31st December 2021

Background & Rationale

• 2 bigger deals represent 2/3 of the acquisitions
• Focus on affordable housing
• Focus on Rhine-Neckar area with 2,200 units and Kiel with 2,300 units
• Up-side potential from modernisations
• Leveraging of platform along established hubs

Highlights

Increase in new built units to 1,000 units p.a. from 2026

Cooperation with Goldbeck for serial and modular construction

Ongoing supply shortage and change of external parameters

Political ambition:

New government likely to increase new built target to 400k p.a. of which 100k rent restricted units to address market shortage and social imbalances

Higher immigration:

Demographics in Germany require an increase of immigration by 400,000 people p.a. ¹

ESG as a driving force:

Ongoing focus on energy efficiency of buildings via EU-Taxonomy, German Climate Change Act etc.

Closing the supply gap in the affordable housing segment

• 500 units p.a. from 2023 onwards already secured via:
• Redensification on own land

• Acquisition of turnkey projects from external developers

• 500 units of serial and modular built new units p.a. from 2026 onwards

• Co-operation with
• Combining expertise: LEG as a leading residential company in Germany with a focus on affordable housing and Goldbeck as a leader in serial construction in Europe

LEG new built units pipeline

(by year)

Portfolio & Operating Performance 2

Portfolio overview 145,700 units as of 09/2021

• Asset class affordable living
• Entry via orange and green markets

1,000 units per location

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

Portfolio transactions

Exceeding 150,000 units in FY 2021

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.

Acquisitions (Locations/State3) Q3 2020 NRW – Flensburg (SH) Q4 2020 NRW – Brunswick (LS) – Hanover (LS) – Koblenz (RP) – Rhine-Neckar (RP/BW) 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 – Rhine-Neckar (RP/BW) – Bremen – Hanover (LS) – Kiel (SH)

Portfolio & Operating Performance

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

Still catch-up effects from rent increase waiver due to Covid-19 in FY 2020

• Ongoing strong l-f-l rental growth driven by all of our three market segments; +4.1% for free financed portfolio
• Rent restricted units +0.4%: no cost rent adjustments in 2021
• Still comparatively low baseline in previous year due to temporary suspension of rent increases

Portfolio & Operating Performance

Positive trends across all KPIs and market clusters

Strong rent increase momentum while vacancy drops to low levels

In-place rent, l-f-l €/m2 High-growth

Vacancy, l-f-l % 1.6 2.6 3.8 High-growth Stable Higher-yielding

Markets

	Total portfolio			High-growth		Stable		Higher-yielding
	9M-2021	 (YOY)	9M-2021	 (YOY)	9M-2021	 (YOY)	9M-2021	 (YOY)
# of units	145,656	+5.1%	46,454	+10.8%	56,662	+4.5%	42,540	+0.4%
GAV residential assets (€m)	15,371	+21.1%	7,001	+24.8%	5,314	+20.7%	3,056	+14.2%
In-place rent (m2 ), l-f-l	€6.11	+3.3%	€6.91	+3.4%	€5.82	+3.4%	€5.62	+3.1%
EPRA vacancy, l-f-l	2.6%	–70 bps	1.6%	–30 bps	2.6%	–80 bps	3.8%	–140 bps

Capex und Maintenance

1 Excl. new construction activities, backlog measures and own work capitalised

Ongoing focus on growth and energy efficiency

• Increase of investments with c.17% y-o-y within plan
• C.5% increase in capex driven by significant growth in value-enhancing turn-cost spending and growth in modernisations
• Energetic measures are the biggest driver for modernisation spending – on track with our ESG strategy
• Increase in maintenance costs by c.18% driven among others by portfolio growth, price increases and special refurbishment projects to also increase customer satisfaction

Financial Performance 3

Investments 2022 – under a new paradigm

Balancing capex yield vs. carbon yield

Investments

• Total investments of €44 46/sqm expected
• 2022 c.€110m for energetic measures planned – in line with ESG agenda
• Shift towards holistic refurbishment approach to maximize CO2 reduction
• BEG-framework considered, subsidies of €1.5m expected for projects finalized in 2022, €18m for those started in 2022

Capex yield vs carbon yield

• Shift of paradigm from pure rental yield focus towards a balanced rental and carbon yield approach
• At least 30% efficiency improvement
• Reduction of c. 4,000 CO2 t2 for 2022
• Aiming for a capex yield of 4–5%3 for rentrelevant part of investments

Real world example non-BEG vs. BEG compliant

	Modernisation without BEG	Modernisation with BEG
Net invest	€3.81m	€3.97m	+4%
Subsidy	–	€0.67m	–
Yield on cost3	4.5%	5.7%	+1.2%-pts
CO reduction 2	47%	49%	+2%-pts (5t CO ) 2

Margins at strong levels in 9M-2021

Benefiting from growth as well as value-added services

Recurring net rental and lease income

Strong contributions from a growing platform, rent increases as well as the services business

Adj. EBITDA

• Confirmation of margin guidance (c. 75%)
• Q4 margin always the lowest in a FY (Q4-2020: 65.5%)

FFO I ps

	9M-2021	€4.62
	9M-2020	€4.25

Financial Performance

FFO Bridge 9M-2021

Strong contribution from acquisitions and rent growth

Portfolio valuation 9M-2021

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	46,454	7,001	2,269	3.6%	27.7x	287	7,288
Stable Markets	56,662	5,314	1,473	4.7%	21.4x	159	5,472
Higher-Yielding Markets	42,540	3,056	1,177	5.5%	18.1x	88	3,144
Total Portfolio	145,656	15,371	1,655	4.4%	22.9x	534	15,905

Strong financial profile

Average debt maturity

years

1.5% 1.3% 1.4% 1.2% 1.0% 1.2% 1.4%

1.9%

Weighted avg. interest (excl. subsidised loans)

1.2%

0.8%

9M 2021	7.4
9M 2020	7.7

Average interest costs

1.35 2020

Loan-to-value

Highlights 9M-2021

• Placement of €500m bond with coupon of 0.875% and 12 years maturity in Q1
• Placement of €600m sustainability bond with coupon of 0.75% and 10 years maturity in Q2
• Average interest costs down by 12 bps vs. 9M-2020 and down by 10 bps vs. Q4-2020
• No maturities until 2023; 2023 recently reduced by early redemption
• LTV remains at low level with 38.0%, similar as Net debt/EBITDA (LTM: 12.2x).
• Interest coverage improved further y-o-y to 6.25 (6.03)

Outlook 4

Outlook

Guidance FFO I guidance for FY-2021 confirmed at upper end of range

|--|

2021	Financial targets
FFO I	Upper end of €410m – 420m
l-f-l rent growth	c. 3.0%
adj. EBITDA margin	c. 75%
Investments1	c. 40 – 42€/sqm
LTV	max. 43%
Dividend	70% of FFO I
Acquisition ambition	c. 7,000 units

Environment	emissions by 10% in 4 years2 2021 – 2024 Reduction of CO 2
	Energetic refurbishment of 3% of units2 2021
Social	2021 – 2024 Maintain high employee satisfaction level (66% Trust Index)
	2021 Reduction of iteration calls from tenants by 15%
Governance	2021 Maintain Sustainalytics rating at score of 10.4

2022	Financial targets
FFO I	€450m – 460m
l-f-l rent growth	c. 3.0%
adj. EBITDA margin	c. 75%
Investments1	c. 44 – 46€/sqm
LTV	max. 43%
Dividend	70% of FFO I
Acquisition ambition	units3 c. 7,000

Environment	2022 – 2025 Reduction of CO emissions by 10% based on CO e kg/sqm 2 2
	2022 4,000 tons CO reduction from modernisation projects 2
Social	2022 – 2025 Improve Customer Satisfaction Index (CSI) to 70%
	2022 Maintain high employee satisfaction level (66% Trust Index)
Governance	2022 Maintain Sustainalytics rating within the negligible risk range (<10)

1 Without new construction, public safety measures for acquisitions, capitalised own services. 2 Units as at 12/19. 3 Not reflected in 2022 guidance.

ESG strategy on 1-page

shell etc.

Building blocks to climate neutrality by 2045 (contribution in %)

Energetic refurbishment (25% – 30%)

• Targeting 3% of units to be refurbished in 2021
• At least 30% efficiency improvement
• Insulation of the building

Energy transition (65% – 70%)

3

4

• Shift from fossil energy mix to green district heating
• Shift towards green electricity along Germany's transition path

G o v e r n a n c e

Targets

2022 – 2025: Reduction of CO2 emissions by 10% based on CO2e kg/sqm 2022: 4,000 tons CO2 reduction based on own projects (i.e. excl. external drivers)

ESG targets integrated in

managements remunerations system and broken down into organisation

Tenant engagement

(up to 5%) Digitisation of heating system via smart metering

• Compliance management system certified by the Institute for Corporate Governance in the German Real Estate Industry
• One-third of our fully independent supervisory board to be represented by women after the AGM 2022

Targets

2022: Maintain Sustainalytics rating within the negligible risk range (<10)

5

1

2

Social responsible landlord Targets

S c a

• Social responsibility for our 400,000 customers
• Providing a home at affordable prices
• 145,700 units at €6.11/sqm
• On average rent of c. €390 per month per unit

2022 – 2025: Improve Customer Satisfaction Index (CSI) to >70%

2022: Maintain high employee satisfaction level (66% Trust Index)

24 9M-2021 Results – LEG Immobilien SE

Among the best in class

Sustainalytics´ ESG Rating recently improved to top category "negligible"

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)

New EPRA NRV – NTA – NDV

€m		30.09.2021			31.12.2020
	EPRA NRV – diluted	EPRA NTA – diluted	EPRA NDV – diluted	EPRA NRV – diluted	EPRA NTA – diluted	EPRA NDV – diluted
IFRS Equity attributable to shareholders (before minorities)	8,340.9	8,340.9	8.340.9	7,365.6	7,365.6	7,365.6
Hybrid instruments	451.6	451.6	451.6	464.3	464.3	464.3
Diluted NAV (at Fair Value)	8,792.5	8,792.5	8,792.5	7,829.9	7,829.9	7,829.9
Deferred tax in relation to fair value gains of IP and deferred tax on subsidised loans and financial derivatives	1,715.3	1,701.7	–	1,431.3	1,417.4	–
Fair value of financial instruments	93.4	93.4	–	102.7	102.7	–
Goodwill as a result of deferred tax	–55.9	–55.9	–55.9	–55.9	–55.9	–55.9
Goodwill as per the IFRS balance sheet	–	–43.7	–43.7	–	–43.7	–43.7
Intangibles as per the IFRS balance sheet	–	–3.2	–	–	–2.8	–
Fair value of fixed interest rate debt	–	–	–318.6	–	–	–443.0
Deferred taxes of fixed interest rate debt	–	–	61.8	–	–	87.2
Revaluation of intangibles to fair value	–	–	–	–	–	–
Estimated ancillary acquisition costs (real estate transfer tax)	1.553.9	–	–	1,421.7	–	–
NAV	12,099.2	10,484.8	8,436.1	10,729.7	9,247.6	7,374.5
Fully diluted number of shares	76,310,308	76,310,308	76,310,308	75,534,292	75,534,292	75,534,292
NAV per share	158.55	137.40	110.55	142.05	122.43	97.63

1 Including RETT (Real Estate Transfer Taxes) the NTA would have been €157.57

FFO calculation

€m	9M -2021	9M -2020
Net cold rent	509.7	464.5
Profit from operating expenses	–0.5	–1.2
Maintenance (externally -procured services)	–43.6	–37.4
Staff costs	–61.5	–53.7
Allowances on rent receivables	–5.8	–5.6
Other	17.2	6.5
Non -recurring project costs (rental and lease)	4.5	3.2
Recurring net rental and lease income	420.0	376.3
Recurring net income from other services	7.1	6.6
Staff costs	–20.1	–16.0
Non -staff operating costs	–13.8	–13.6
Non -recurring project costs (admin.)	7.4	6.9
Recurring administrative expenses	–26.5	–22.7
Other income and expenses	0.0	0.0
Adjusted EBITDA	400.6	360.2
Cash interest expenses and income	–64.1	–59.7
Cash income taxes from rental and lease	–0.7	–2.0
FFO I (including non -controlling interests)	335.8	298.5
Non -controlling interests	–1.6	–1.8
FFO I (excluding non -controlling interests)	334.2	296.7
FFO II (including disposal of investment property)	332.0	295.5
Capex	–230.0	–202.7
Capex -adjusted FFO I (AFFO)	104.2	94.0

Net cold rent

+€45.2m or +9.7% driven by portfolio growth (c. 2/3) and organic growth (c. 1/3)

Maintenance

Higher total investments at nearly unchanged capitalisation ratio

Staff costs

Growth in staff costs mainly due to additional FTE's (+150), e.g. in newly acquired LWS Plus and TSP

Other

Increase driven by income from value -added services and capitalisation of own work

Recurring administrative expenses

Partially driven by higher headcount for IT and internal reallocation of resources

Cash interest expenses

Decline in average interest costs from 1.35% to 1.23% but increase in financial debt

Balance sheet

€m	30.09.2021	31.12.2020
Investment property	16,179.8	14,582.7
Other non-current assets	340.9	264.9
Non-current assets	16,520.7	14,847.6
Receivables and other assets	320.0	77.7
Cash and cash equivalents	515.1	335.4
Current assets	835.1	413.1
Assets held for sale	25.2	21.6
Total Assets	17,381.0	15,282.3
Equity	8,366.4	7,389.9
Non-current financing liabilities	6,639.5	5,377.7
Other non-current liabilities	1,983.9	1,650.5
Non-current liabilities	8,623.4	7,028.2
Current financing liabilities	108.6	491.3
Other current liabilities	282.6	372.9
Current liabilities	391.2	864.2
Total Equity and Liabilities	17,381.0	15,282.3

Investment property

• Revaluation: +€1,119.8m
• Capex: +€226.3m
• Acquisitions: +€279.5m
• Disposals: –€31.8m

Receivables and other assets

Increase in longer term deposits

Cash and cash equivalents

• Cash flow from operating activities €257.4m
• Investing activities –€745.6m
• Financing activities €667.9m
• Bond issuance €1,088.6m
• Repayment of loans –€224.5m
• Cash Dividend payment –€185.7m (scrip dividend offered)

Loan to Value

€m	30.09.2021	31.12.2020
Financial liabilities	6,748.1	5,869.0
Excluding lease liabilities (IFRS 16)	25.5	30.8
Cash & cash equivalents	515,1	335.4
Net Debt	6,207.5	5,502.8
Investment properties	16,179.8	14,582.7
Properties held for sale	25.2	21.6
Prepayments for investment properties	122.8	43.3
Property values	16,327.8	14.647,6
Loan to Value (LTV) in %	38.0	37.6

• LTV up 160 bps vs. 9M-2020/H1- 2021 and up 40 bps vs. FY-2020
• Low LTV enables further portfolio expansion

Income statement

€m	9M-2021	9M-2020
Net rental and lease income	407.3	365.7
Net income from the disposal of investment property	–0.7	-0.8
Net income from the valuation of investment property	1,119.8	593.3
Net income from the disposal of real estate inventory	–0.1	–2.3
Net income from other services	4.8	4.2
Administrative and other expenses	–36.8	–32.6
Other income	0.0	0.1
Operating earnings	1,494.3	927.6
Net finance costs	–75.7	–112.9
Earnings before income taxes	1,418.6	814.7
Income tax expenses	–278.1	–158.6
Consolidated net profit	1,140.5	656.1

Recurring net rental and lease income

NRI increased by €41.6m or +11.4% due to increase in net cold rent (+9.7%)

Administrative and other expenses

Increase in employees, corona bonus payments and reallocation of resources

Net finance costs

• Strong positive effects driven by LEG's share price performance from the fair value measurement of derivatives linked to the convertible bonds (yoy: +€49m)
• €13.3m increase in interest expenses mainly due to early redemption charges and measurement effects of financial instruments and higher debt

Income tax expenses

Small increase in the effective tax rate from 18.3% to 19.4% and strong increase in EBT lead to higher deferred taxes

Other interest expenses

instruments

Expenses in connection with the early redemption of financial

Cash effective interest expense Interest coverage improved further y-o-y to 6.2 (6.0)

Appendix
----------	--

Cash effective interest expense

€m	9M-2021	9M-2020
Reported interest expense	84.5	71.2
Interest expense related to loan amortisation	–12,5	–9.8
Interest costs related to valuation of assets/liabilities	–0.1	–0.1
Interest expenses related to changes in pension provisions	–0.5	–0.9
Other interest expenses	–7.2	–0.6
Cash effective interest expense (gross)	64.2	59.8
Cash effective interest income	0.0	0.1
Cash effective interest expense (net)	64.2	59.7

Investments

Reconciliation from investments to adjusted investments

€m	9M-2021	9M-2020	FY-2020
Maintenance	70.9	60.1	98.3
Capex	237.6	202.7	290.4
Thereof LWS Plus effect	7.6	0.0	2.6
Thereof public safety measures in connection with acquisitions	1.6	0.0	0.2
Thereof new construction	7.7	3.2	4.8
Thereof capitalisation of own services	11.6	0.0	10.8
Adjusted Capex	209.1	199.5	274.8
Total investments	308.5	262.8	388.7
Adjusted total investments	280.0	259.6	370.3
Area of investment properties (million sqm)	9.45	8.94	9.03
Adjusted investment per sqm (€)	29.63	29.02	41.00

Refinancing of subsidised loans lifting value

Rent potential subsidised units

• Until 2028, around 23,000 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 In 9M already 1,018 units released. 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 = 2021-2025; 6-10 years = 2026-2030; >10 years = 2031ff. 4 Rent upside is defined as the difference between LEG in-place rent and market. 5 For example rent increase cap of 15% or 20% for three years.

Variable interest 6.4%

Unsecured financing covenants Financing mix

Covenant	Threshold	9M-2021
Consolidated Adjusted EBITDA / Net Cash Interest	≥1.8x	6.0x
Unencumbered Assets / Unsecured Financial Indebtedness	≥125%	216%
Net Financial Indebtedness / Total Assets	≤60%	36%
Secured Financial Indebtedness / Total Assets	≤45%	17%

LEG additional creditor information

Ratings (Moody's) Key financial ratios

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

Fixed interest 86.9% Derivatives 6.6%

	ey financial ratios

	9M-2021	9M-2020
Net debt / EBITDA	12.2x	10.7x
LTV	38.0%	36.4%

Capital market financing Corporate bonds

	2017/2024	2019/2027	2019/2034	2021/2033	2021/2031 (sustainable bond)
Issue Size	€500m	€500m	€300m	€500m	€600m
Term / Maturity Date	7 years / 23 January 2024	8 years / 28 November 2027	15 years / 28 November 2034	12 years / 30 March 2033	10 years / 30 June 2031
Coupon	1.250% p.a. (annual payment)	0.875% p.a. (annual payment)	1.625% p.a. (annual payment)	0.875% p.a. (annual payment)	0.750 % p.a. (annual payment)
Issue Price	99.409%	99.356%	98.649%	99.232%	99.502%
Financial Covenants	    Adj. EBITDA/ net cash interest ≥ 1.8 x	Net financial debt/ total assets ≤ 60% Secured financial debt/ total assets ≤ 45% Unencumbered assets/ unsecured financial debt ≥ 125%
ISIN	XS1554456613	DE000A254P51	DE000A254P69	DE000A3H3JU7	DE000A3E5VK1
WKN	A2E4W8	A254P5	A254P6	A3H3JU	A3E5VK

Capital market financing Convertible bonds

8 years/ 8 years/ Term / 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 share price >130% of the then Issuer Call applicable conversion price conversion price DE000A2GSDH2 DE000A289T23 ISIN	WKN	A2GSDH	A289T2
			From 5 August 2025, if LEG share price >130% of the then applicable
2017/2025 2020/2028	Issue Size	€400m	€550m

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

Share (30.7.2021; indexed; in %; 1.2.2013 = 100)

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

Financial calendar

For our detailed financial calendar, please visit our IR web page

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 Assistant Investor Relations & Strategy

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 Hans-Böckler-Str. 38 ǀ 40476 Düsseldorf, Germany Phone: +49 (0) 211 4568-400 ǀ Fax: +49 (0) 211 4568-22 204 ǀ E-Mail: ir@leg-se.com ǀ Internet: www.leg-se.com