LEG Immobilien SE

Investor Presentation • May 13, 2015

Disclaimer

While 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 forward-looking 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.

• I. Highlights Q1-2015
• II. Portfolio and Operating Performance
• III. Financial Performance
• IV. Business Update and Outlook
• V. Appendix

I. Highlights Q1-2015

Highlights Q1-2015

Overall company development in Q1-2015

• Execution of €900m early refinancing
• Strong credit profile confirmed by Moody's (Baa1)
• New JV with RWE for energy services
• Delivering on acquisitions: c.800 units signed and approx. 2,500 units close to signing

Leading operating performance

• In-place rent €5.13/sqm (+2.5% like-for-like, +3.5% for free-financed units)
• EPRA-Vacancy 3.2% l-f-l (+/-0 bps YOY)
• Maintenance/capex of c.€2.2/sqm in line with budget
• FY-2015 target of €15/sqm reiterated
• Focus on efficient deployment of capital

Financials: Compelling growth at low risk

• Rental income €107.3m (+13.8% YOY from €94.3m)
• Adjusted EBITDA €74.9m (+15.8% YOY from €64.7m);
• Strong underlying margin improvement (c. +170 bps YOY)
• FFO I €51.4m, €0.90 per share (+25.4% YOY from €41.0m)
• AFFO €45.6m (+39.4% YOY from €32.7m)
• EPRA-NAV (excl. goodwill) €54.11 per share (+2.7% YTD)

II. Portfolio and Operating Performance

Portfolio Overview

Strong operational performance across all submarkets

	Total Portfolio
	Q1-2015	 (YOY)
# of units	106,778	+12.4%
In-place rent (sqm)	€5.13 (€5.16)*	+2.0% (+2.5%)*
EPRA-Vacancy	3.3% (3.2%)*	+/-0 bps (+/-0 bps)*

High-Growth Markets
	Q1-2015	 (YOY)
# of units	32,811	+4.2%
In-place rent (sqm)	€5.77 (€5.77)*	+2.6% (+2.8%)*
EPRA-Vacancy	1.5% (1.3%)*	+/-0 bps (-10 bps)*

Stable Markets with Attractive Yields
	Q1-2015	 (YOY)
# of units	42,808	+23.7%
In-place rent (sqm)	€4.86 (€4.85)*	+2.4% (+2.1%)*
EPRA-Vacancy	3.8% (3.8%)*	-30 bps (-20 bps)*

Higher-Yielding Markets
	Q1-2015	 (YOY)
# of units	29,698	+8.3%
In-place rent (sqm)	€4.75 (€4.76)*	+2.1% (+2.3%)*
EPRA-Vacancy	5.1% (5.1%)*	+20 bps (+20 bps)*

* like-for-like

Rent Development

Attractive portfolio + operational excellence = strong rent growth

• Sound growth maintained despite absence of cost rent adjustments (for restricted units)
• Performance of free financed units signals underlying growth dynamics
• Efficient deployment of capital remains key (rent growth relative to investments)
• Regional focus as competitive edge

EPRA-Vacancy Development (like-for-like)

Attractive portfolio + operational excellence = low vacancies

• High occupancy maintained; EPRA vacancy in line with vacancy result according to previous calculation method
• Temporary increase in vacancy just due to typical seasonal pattern
• Target to achieve a L-F-L vacancy of at least 2.8% in FY-2015 reiterated

Capex & Maintenance Well maintained asset base

III. Financial Performance

Financial Highlights Q1-2015

Margin expansion on back of sound topline growth + cost discipline

Income Statement Q1-2015

Condensed Income Statement (€ million)	FY-2014	Q1-2015	Q1-2014	 Higher rental income
Net rental and lease income	284.9	80.8	70.5	(+€13m/+13.8%)  NRI-margin increased from 74.8% to 75.3% YOY
Net income from the disposal of investment properties	-1.7	1.3	0.0
Net income from the remeasurement of investment properties	143.0	-	-	 Higher project costs in Q1 2015 (€0.3m) due launch of
Net income from the disposal of real estate inventory	-3.1	-0.7	-0.9	energy services  €0.1m Long Term Incentive Plan – non-cash pass
Net income from other services	-0.3	-0.1	0.1	through item  Despite acquisitions,
Administrative and other expenses	-41.6	-8.9	-8.8	recurring admin. costs remain at previous year's level (€7.9m vs. €7.8m)
Other income	0.5	0.2	0.1
Operating earnings	381.7	72.6	61.0	 Interest charges related to early refinancing (-€13 m)
Net finance costs	-162.2	-94.0	-32.1	 Result from fair value measurement of derivatives (-€52.7m; thereof -€52.4m
Earnings before income taxes	219.5	-21.4	28.9	from convertible)
Income tax expense	-62.7	-9.0	-6.5	 Income taxes -€1.1m (including an aperiodic effect
Consolidated net profit	156.8	-30.4	22.4	of -€0.9m)

FFO Calculation Q1-2015

€ million	31.03.2015	31.03.2014
Net cold rent	107.3	94.3	 +€13.0m (+13.8% YOY)
Profit from operating expenses	-1.5	0.3
Maintenance	-9.9	-8.3
Staff costs	-9.4	-8.4
Allowances on rent receivables	-1.8	-1.1
Other	-2.7	-5.3
Non-recurring project costs (rental and lease)	0.2	0.2
Current net rental and lease income	82.2	71.7	 +€10.5m (+14.6% YOY)
Current net income from other services	0.4	0.7
Staff costs	-5.3	-5.7
Non-staff operating costs	-3.1	-2.6
LTIP (long-term incentive programme)	0.1	0.3
Non-recurring project costs (admin.)	0.4	0.1	 Stable admin. despite
Extraordinary and prior-period expenses	-	0.1	acquisitions reflects cost
Current administrative expenses	-7.9	-7.8	discipline and scalability
Other income and expenses	0.2	0.1
Adjusted EBITDA	74.9	64.7	 +€10.2m (+15.8% YOY)
Cash interest expenses and income	-23.3	-23.6
Cash income taxes	-0.2	-0.1	 +€10.4m supported by topline
FFO I (not incl. disposal of investment property)	51.4	41.0	growth and margin expansion
Net income from the disposal of investment properties	1.3	0.0
FFO II (incl. disposal of investment properties)	52.7	41.0	 Higher costs for capex &
Capex	5.8	8.3	maintenance in coming
Capex-adjusted FFO I (AFFO)	45.6	32.7	quarters

FFO Bridge Q1-2015

Focus: Cash Effective Interest Expense Q1-2015

€ million	FY-2014	Q1-2015	Q1-2014	 Increase due to early
Reported interest expense	128.5	44.2	30.0	refinancing of loans (refinancing costs (€13m)
Interest expense related to loan amortisation	-24.6	-11.6	-4.6	 Including valuation of
Refinancing fees	0.0	0.0	0.0	the convertible (+€1.6m) and effects
Prepayment penalties	0.0	-7.5	0.0	from refinancing (+€5.5m)
Interest charges relating to valuation of assets/liabilities	-2.3	-0.2	-0.5
Leasing related interest expense	-1.5	-0.4	-0.4
Interest expenses related to changes in pension provisions	-4.0	-0.7	-1.0
Other interest expenses	-0.2	-0.1	0.2	 Lower ø cost of debt
Bank charges	-0.3	0.0	0.0	2.8% vs. 3.2% YOY
Interest income	-1.0	-0.4	-0.1	 Interest coverage
Cash effective interest expense	94.5	23.3	23.6	improved further (3.2x up from 2.7x YOY)

EPRA-Net Asset Value Q1-2015

Attractive portfolio yield + hidden reserves from services business

€ million	31.03.2015	31.12.2014
Equity (excl. minority interests)	2,447.9	2,477.3
Effect of exercising options, convertible loans and other rights	367.8	308.7
NAV	2,815.7	2,786.0
Fair value of financial derivatives	188.5	136.1
Deferred taxes	379.0	372.5
EPRA-NAV	3,383.2	3,294.6
Number of shares fully-diluted incl. convertible (m)*	62.043	62.043
EPRA-NAV per share in €	54.53	53.10
Goodwill, resulting from synergies	25.9	25.9
Adjusted EPRA-NAV (excl. goodwill)	3,357.3	3,268.7
Adjusted EPRA-NAV per share in €	54.11	52.69

-€30.4m net loss resulting from early refinancing of loans and fair value measurement of derivatives

• Property valuation
• Attractive portfolio yield of 7.2%
• Services
• Expected future FFO >€10m (€10m/6% = €166m or c. €2.70 per share) *Actual number of shares

outstanding 57.063m

Balance Sheet Q1-2015

€ million	31.03.2015	31.12.2014
Investment property	5,935.6	5,914.3	 Additions €16.1m  Capex +€5.8m
Prepayment for investment property	0.6	16.8	 Reclassification €0.7m
Other non-current assets	153.4	155.8
Non-current assets	6,089.6	6,086.9
Receivables and other assets	53.7	35.9
Cash and cash equivalents	176.7	129.9	 Cash flow from operating activities (€51.7m)
Current assets	230.4	165.8
Assets held for disposal	12.1	58.4
Total Assets	6,332.1	6,311.1
Equity	2,462.4	2,491.6	 Equity ratio of 38.9%
Non-current financial liabilities	1,602.3	2,546.5
Other non-current liabilities	570.8	612.3
Non-current liabilities	2,173.1	3,158.8
Current financial liabilities	1,362.0	413.8
Other current liabilities	334.6	246.9
Current liabilities	1,696.6	660.7
Total Equity and Liabilities	6,332.1	6,311.1

Headroom for external growth LTV Q1-2015

€ million	31.03.2015	31.12.2014
Financing liabilities	2,964.3	2,960.3
Cash & cash equivalents	176.7	129.9
Net Debt	2,787.6	2,830.4
Investment properties	5,935.6	5,914.3
Properties held for sale	12.1	58.4
Prepayment for investment properties	0.6	16.8
Property values	5,948.3	5,989.5
Loan to Value (LTV) in %	46.9	47.3
Equity	2,462.4	2,491.6

• Financial firepower approx. €500m
• Positive impact on LTV from future conversion of convertible expected (currently -430bps)

Financing Structure - 31 March 2015

External growth supports further decrease in average interest costs

Chart 20

Further strengthening of best-in-class financing structure

LT secured debt, well-balanced maturity profile, low cost of debt

Refinancing Targets
Volume	approx. €900m
One-off charges (estimate)	c.€60m
Payback period	3.5 years
Avg. debt maturity new loans	approx. 10 years
Avg. interest cost - new loans - replaced old loans	< 2% 3.86%

IV. Business Update and Outlook

Business Update

Growth Story Fully Intact

Refinancing well underway

• Closing of planned €900m refinancing scheduled for end of June
• Margins have already been fixed at very attractive terms
• Despite recent spike in rates, guidance of marginal cost of <2% (for 10 year loans) can still be confirmed

Moody's confirms LEG's strong credit profile

• Moody's initiates rating of LEG with Baa1 and stable outlook
• Strong credit rating based on LEG's strong market position and healthy financial metrics
• LEG well positioned to tap bond market for further diversification of financing mix

Acquisitions: Fully on track to acquire at least 5,000 units in FY-2015

• Around 800 units signed YTD, additional approx. 2,500 units close to signing
• Portfolios located in core regions of NRW well complementing LEG's existing portfolio
• Deals meet strict investment criteria: Attractive initial FFO-yields of >8% with further future upside
• Attractive rental yields maintained due to LEG's strong competitive position

Acquisitions: Creating Tangible Value

	31.03.2015			Closing		Change
Units	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy
8,142*	5.25	94.5%	4.95	94.7%	0.30 (+6.0%)	~ -20 bp

New-letting (Closing – 31.03.2015)		Previous rent (Closing –	31.03.2015)
sqm	In-place rent € / sqm	sqm	In-place rent € / sqm	Change In-place rent
78,707*	5.65	83,218	5.26	+7.4%

• Dynamic rent growth confirms attractive reversionary potential
• Average in-place rents +6.0% (within avg. 17 months), re-lettings +7.4%
• Temporary increase of vacancies in Q1-2015 due to seasonal pattern expected to revert in FY-2015
• Previously three consecutive quarters of steady decline

* Acquisitions since end-2012 excl. NRW Vitus transaction

Outlook 2015 & 2016 - Confirmed

Guidance
€195m - €200m/ €3.42 - €3.50; excl. future acquisitions
2.3% - 2.5%
≤ 2.8%
€15/sqm (capex ratio c. 50%)
≥ 5,000 units p.a.
65% of FFO I

2016	Guidance
FFO I:	€223m - €227m/ €3.91 - €3.98; excl. future acquisitions

V. Appendix

Mietspiegel overview

Expected new Mietspiegel in 2015

Release date (expected)	High-Growth Market1	Market1 Stable	Higher-Yielding Market1	Total Portfolio1,2
2015 (Q1)	4,653 units (mainly Cologne)	13,299 units (mainly Dortmund)	1,387 units	19,348 units
2015 (Q2)	10,143 units (mainly Münster, Monheim)	10,851 units (mainly Möchengladbach, Ahlen)	149 units	21,818 units
2015 (Q3)	1,488 units (mainly Bocholt)	4,310 units (mainly Wuppertal, Essen)	489 units	6,287 units
2015 (Q4)	2,847 units (mainly Bonn)		1,109 units (mainly Dorsten)	3,956 units
Total 1,2	19,131 units	28,460 units	3,134 units	51,409 units

Thereof: - Bocholt - Bonn - Cologne - Dorsten	1,469 units 2,225 units 3,705 units		1,073 units
- Dortmund		12,554 units
- Essen - Möchengladbach		1,786 units 6,050 units
- Monheim	3,436 units
- Münster	6,098 units
- Wuppertal		2,031 units		1 Sub-portfolios also include restricted units
				2 Total Portfolio also include 684 units Non NRW

LEG – Adj. EBITDA Margin

Leading profitability in the sector

Adj. EBITDA margin	2014		2013
	€m	margin %	€m	margin %
As reported	259.3	66.5	231.7	64.3
Gap restricted vs. unrestricted rents*	21.2	68.2	22.5	66.4

* €/sqm: €4.61 vs. €5.33 in 2014, €4.50 vs. €5.24 in 2013

• EBITDA as reported distorted by restricted units (compensation for lower rents included in interest results)
• Scenario analysis: closing gap between restricted vs. unrestricted rents; Adjusted EBITDA margin approx. 170 bps higher

Portfolio (as of 31 March 2015)

Sound property fundamentals basis for value growth

	Residential	GAV Residential	% of Total Residential	GAV/	In-Place	GAV Commercial/ Other
Market	Units	Assets (€m)	GAV	sqm (€)	Rent Multiple	Assets (€m)	Total GAV
High Growth Markets	32,811	2,333	41%	1,112	16.2x	161	2,494
Stable Markets with Attractive Yields	42,808	2,032	36%	724	12.9x	111	2,143
Higher-Yielding Markets	29,698	1,170	21%	638	11.8x	45	1,216
Subtotal NRW	105,317	5,535	98%	821	13.8x	318	5,853
Portfolio outside NRW	1,461	89	2%	923	14.4x	1	90
Total Portfolio	106,778	5,625	100%	822	13.8x	319	5,944
Other Assets							32
Total (incl. Landbank and DevCo) 5,975

LEG Share Information

Source: LEG; shareholdings according to latest voting rights notifications

Financial Calendar

Date	Report/Event
13.05.2015	Quarterly Report Q1 as of 31 March 2015
20.05.2015	Berenberg European Conference USA 2015, New York
21.05.2015	Roadshow Canada (Exane)
28.05.2015	Roadshow Paris (Exane)
03.06.2015	Kempen & Co's European Property Seminar, Amsterdam
15.06.2015	Roadshow Edinburgh (Berenberg)
16.06.2015	Roadshow London
17.06.2015	Morgan Stanley Europe & EEMEA Property Conference, London
18./19.06.2015	dbAccess German, Swiss & Austrian Conference 2015, Berlin
24.06.2015	Annual General Meeting, Dusseldorf
14.08.2015	Quarterly Report Q2 as of 30 June 2015

Contact

LEG Immobilien AG – Investor Relations

Burkhard Sawazki Head of Investor Relations Tel: +49 211 4568 204 burkhard.sawazki@leg-nrw.de

Karin Widenmann Manager Investor Relations Tel: +49 211 4568 458 karin.widenmann@leg-nrw.de

Hans-Boeckler-Str. 38 40476 Dusseldorf Germany

Thank you for your interest.