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.

Agenda

I. Highlights H1-2014
II. Portfolio and Operating Performance
III. Financial Performance
IV. Business Update and Outlook
V. Appendix

I. Highlights H1-2014

Highlights H1-2014

Overall company development in Q2

Issue of €300m convertible bond
Progress on external growth; upside to FY targets
Acquisition of approx. 2,400 units close to signing
Additional deals in due diligence
Successful initiatives for organic rental growth

Strong operating performance with further accelerating rent growth

In-place rent €5.07 /sqm (+3.3% like-for-like, +3.8% for free-financed units)
Occupancy at 97.1% on l-f-l basis (+10bps YOY; 96.8% including acquisitions)
Further vacancy reduction in FY-2014 expected
Maintenance/capex below FY run rate; catch-up effects in coming quarters
Total expenses for maintenance and capex of c. €5.50 /sqm in H1
FY-2014 target of approx. €13/sqm

Financial performance reflects dynamic rent development

Rental income €189.0m (+6.1% YOY from €178.1m)
Adjusted EBITDA €129.2m (+13.9% YOY from €113.4m)
FFO I €81.6m, €1.54 per share (+19.3% YOY from €68.4m)
AFFO €65.4m (+15.3% YOY from €56.7m)
NAV €48.14 per share (DPS distribution of €1.73 in Q2)

II. Portfolio and Operating Performance

Portfolio Overview

Accelerating Positive Rent Dynamics across all Submarkets

Total Portfolio

	30 June 2014	∆ (YOY)
# of units	95,783	+5.4%
In-place rent (sqm)	€5.07 (€5.07)**	+3.1% (+3.3%)**
Occupancy	96.8% (97.1%)**	-20bps (+10bps)**	** like for like

High-Growth Markets
	30 June 2014	∆ (YOY)
# of units	31,679	+0.6%
In-place rent (sqm)	€5.67 (€5.67)**	+3.6% (+3.7%)**
Occupancy	98.7% (98.7%)**	+10bps (+10bps)**

Stable Markets with Attractive Yields
	30 June 2014	∆ (YOY)
# of units	35,226	+10.0%
In-place rent (sqm)	€4.78 (€4.75)**	+3.3% (+2.7%)**
Occupancy	96.4% (96.7%)**	+10bps (+30 bps)**

Higher-Yielding Markets
	30 June 2014	∆ (YOY)
# of units	27,405	+5.4%
In-place rent (sqm)	€4.67 (€4.67)**	+2.8% (+2.8%)**
Occupancy	95.2% (95.6%)**	-60bps (-20bps)**

Sound Organic Growth – Further Accelerating Momentum in Q2

L-f-l rent growth (per sqm) of +3.3%
Further accelerating rent growth of +3.8% for free-financed units emphasizes strong underlying dynamics
Successful growth initiatives to diminish gap to market rents, new rent tables

Further Vacancy Reduction Ahead Occupancy Development

L-f-l vacancy rate of 2.9% /-10bps YOY confirms sound underlying development
On track to reach further vacancy decrease in course of FY-2014
Positive underlying demand situation across all sub-markets:
Temporary vacancy increase in Purple segment expected to revert in H2

Capex & Maintenance Well Maintained Asset Base; Rising Investments in H2

III. Financial Performance

Financial Highlights H1-2014

Income Statement H1-2014

Condensed Income Statement (€ million)	2013	H1-2014	H1-2013	 Higher rental income
Net rental and letting income	257.7	139.5	123.7	(+€10.9m/+6.1%)  Lower maintenance expenses (-€3.3m)
Net income from the disposal of investment property	-1.8	-0.3	-0.7
Net income from the valuation of investment property	81.6	0.0	0.0
Net income from the disposal of real estate inventory	-3.1	-1.6	-1.7	 €0.6m Long Term Incentive Plan – non-cash
Net income from Other services	2.3	0.6	1.5	pass-through item  Slightly lower recurring
Administrative and Other expenses	-51.5	-16.8	-22.5	admin. costs of €14.8m (H1-2013: €15.4m)
Other income	0.2	0.2	0.3	 Lower non-cash loan amortisation of -€3.4m
Operating earnings	285.5	121.6	100.6	(one-off effect due to refinancing in Q1-2013)
Net finance costs	-126.9	-44.4	-60.9	 €5.7m tax reimbursement  €8.9m revaluation gain
Earnings before income taxes	158.6	77.2	39.7	derivatives  Slightly higher cash
Income tax expense	-21.7	-22.3	-5.0	interest expenses (€46.7m vs. €45.2m)
Consolidated net profit	136.9	54.9	34.7	 Deferred taxes (thereof cash taxes: -€0.8m)

Adjusted EBITDA H1-2014

€ million	2013	H1-2014	H1-2013	 +€10.9m higher rental
EBITDA	294.1	125.8	104.8	income  + €3.3m lower
Net income from the valuation of investment property	-81.6	0.0	0.0	maintenance cost  + €5.7m lower admin. costs (project costs)
Long-term incentive program (LTIP)	3.3	0.6	1.8
Non-recurring project costs	7.9	0.8	4.7
Extraordinary and prior-period expenses and income	3.2	0.1	-0.3
Net income from the disposal of investment property	1.7	0.3	0.7
Net income from the disposal of real estate inventory	3.1	1.6	1.7	 Winding down of former development business  Smaller disposals at
Adjusted EBITDA	231.7	129.2	113.4	premium to book values  Total inventories: €5.8m

FFO Calculation H1-2014

€ million	2013	H1-2014	H1-2013
Adjusted EBITDA	231.7	129.2	113.4	 Slightly higher financial
Cash interest expenses and income	-91.0	-46.7	-45.2	charges due to acquisitions (net debt +€186.5m YOY)  Slight decrease of
Cash income taxes	0.5	-0.9	0.2	average interest costs
FFO I (not including disposal of investment property)	141.2	81.6	68.4
Net income from the disposal of investment property	-1.7	-0.3	-0.7	 Disposals of non-core assets at premium to book values
FFO II (including disposal of investment property)	139.5	81.3	67.7
Capex	-43.7	-16.2	-11.7
Capex-Adjusted FFO I (AFFO)	97.5	65.4	56.7	 €1.2m higher capex & maintenance (YOY)  Rising investments in
				H2-2014 expected

FFO Bridge H1-2014

Focus: Cash Effective Interest Expense H1-2014

€ million	2013	H1-2014	H1-2013
Reported interest expense	131.4	60.9	65.4
Interest expense related to loan amortisation	-30.2	-8.7	-13.8	 Extraordinary effects in 2013 due
Interest expenses related to convertible bond (non cash)	-	-1.7	-	to refinancing
Refinancing fees	-2.9	0.0	-2.0
Prepayment penalties	0.0	0.0	0.0
Interest on shareholder loans	-0.2	0.0	-0.2
Interest charges relating to valuation of assets/liabilities	-2.3	-0.9	-1.0
Leasing related interest expense	-1.6	-0.7	-0.8
Interest expenses related to changes in pension provisions	-3.6	-2.0	-1.9
Other interest expenses	-0.2	0.1	0.0
Bank charges	1.5	0.2	-
Interest income	-0.9	-0.5	-0.6
Cash effective interest expense	91.0	46.7	45.2

EPRA-Net Asset Value H1-2014

Value of Attractive Multimedia Business is not Capitalised

€ million	30.06.2014	31.12.2013
Equity (excl. minority interests)	2,189.8	2,248.8	 +€54.6m net profit  -€22.6m O-C-I
Effect of exercising options, convertible loans and other rights	-	-	 -€91.6m dividend payment
NAV	2,189.8	2,248.8
Fair value of financial derivatives	74.0	52.0
Deferred taxes	285.9	271.1
EPRA-NAV	2,549.7	2,571.9
Number of shares outstanding (m)	52,963	52,963
EPRA-NAV per share in €	48.14	48.56	 Adjusted for DPS of €1.73 NAV increased by +2.7% y-t-d

Value multimedia

Discount rate 6%
Value approx. €100m / c.€1.89 per share

Balance Sheet H1-2014

Strong Balance Sheet Secures Defensive Profile and Paves Way for Growth

€ million	30.06.2014	31.12.2013	 Purchases €71.5m
Investment property	5,236.7	5,163.4	 Capex €16.2m  Reclassification
Prepayment for investment property	2.0	6.9	-€14.2m
Other non-current assets	93.6	91.9
Non-current assets	5,332.3	5,262.2
Receivables and other assets	65.7	33.8	 For acquisitions
Cash and cash equivalents	300.3	110.7	consolidated as of mid-2014
Current assets	366.0	144.5
Assets held for disposal	10.7	16.4
Total Assets	5,709.0	5,423.1
Equity	2,217.4	2,276.1	 Equity ratio of 38.8%
Non-current financial liabilities	2,641.8	2,396.7
Other non-current liabilities	529.9	443.9
Non-current liabilities	3,171.7	2,840.6
Current financial liabilities	201.4	187.0
Other current liabilities	118.5	119.4
Current liabilities	319.9	306.4
Total Equity and Liabilities	5,709.0	5,423.1

LTV H1-2014

Liquidity for Acquisitions and Headroom to Enhance LTV (max. 55%)

€ million	30.06.2014	31.12.2013
Financial debt	2,843.2	2,583.7
Cash & cash equivalents	300.3	110.7
Net Debt	2,542.9	2,473.0	 Liquidity of c.€300m
Investment properties	5,236.7	5,163.4	and low LTV offer significant
Properties held for sale	10.7	16.4	headroom for external growth
Prepayment for investment properties	2.0	6.9	 Financial firepower c.€750m
	5,249.4	5,186.7
Loan to Value (LTV) in %	48.4	47.7

Financing Structure H1-2014

LT Secured Debt, Well-Balanced Maturity Profile, Low Cost of Debt

IV. Business Update and Outlook

Business Update

Strong Organic Growth and Positive Outlook for Acquisitions

Successful initiatives for accelerated organic growth

Strong LFL growth in Q2
Rent adjustments on existing rents without new Mietspiegels (across all market segments)
New Mietspiegel in Dusseldorf (+4.3%), Ratingen (Greater Dusseldorf area) and Hamm
Low tenant turnover/high tenant satisfaction remain key objectives
Planned investment programme for H2-2014 promises further vacancy reduction
Focus on newly acquired portfolios (release of capex backlog source of above average returns)
Investments in vacant apartments/turn costs

Promising outlook for accelerating external growth

Acquisition of approx. 2,400 units close to signing (total volume c. 9,400 units since IPO)
Further smaller and midsized deals in due diligence
Accelerated deal flow in H2 expected; LEG well positioned

Acquisitions: Creating Tangible Value

	30.06.2014		Closing		Change
Units	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy
6,305	5.18	93.4%	4.96	94.0%	0.22 (+4.4%)	-60 bp

New-letting [Closing – 30.06.2014]		Previous rent [Closing –	30.06.2014]
sqm	In-place rent € / sqm	sqm	In-place rent € / sqm	Change In-place rent
37,657	5.73	39,410	5.26	+8.9%

Dynamic rent growth confirms attractive reversionary potential
Average in-place rents +4.4% (within avg. 10 months), re-lettings +8.9%
Initiated capex-programme offers further significant upside
Rising occupancy in course of FY-2014 expected
Adjusted for two newly acquired portfolios vacancies dropped sequentially

Full Earnings Effect from Signed Acquisitions and Multimedia in FY-2015

2014	Guidance
L-F-L rent growth	approx. 3.0%
Maintenance/Capex:	approx. €13 /sqm (capex ratio c. 50%)
Acquisitions:	>10,000 units by end 2014
FFO I :	€158m - €161m/ €2.96 - €3.04 per share
Dividend	65% of FFO I

2015
FFO I	€172m - €177m/ €3.25 - €3.34*; excl. future acquisitions

* incl. acquisition of approx. 2,400 units close to signing

V. Appendix

Mietspiegel Overview

Expected New Mietspiegel in 2014

Release Date (expected)	High-Growth Market1	Market1 Stable	Higher-Yielding Market1	Total Portfolio1,2
2014 (Q1)	8,650 units (mainly Dusseldorf, Ratingen)	8,630 units (mainly Siegen, Solingen)	1,334 units (mainly Hagen)	18,614 units
2014 (Q2)	110 units	2,928 units (mainly Hamm, Bochum)		3,038 units
2014 (Q3)	209 units	1,748 units (mainly Ahlen)	5,378 units (mainly Gelsenkirchen, Unna)	7,434 units
2014 (Q4)	395 units	1,113 units	2,569 units (mainly Recklinghausen)	4,077 units
Total 1,2	9,364 units	14,419 units	9,281 units	33,163 units

Thereof: - Ahlen - Bochum		1,049 units 1,477 units
- Dusseldorf - Gelsenkirchen	3,288 units		2,922 units
- Hamm		3,975 units
- Ratingen - Recklinghausen	2,793 units		1,765 units
- Siegen		1,027 units		1) Sub-portfolios also include restricted units
- Solingen - Unna		1,451 units	1,211 units	2) Total Portfolio also include 99 units Non NRW

LEG – Adj. EBITDA Margin

Adj. EBITDA margin	2012		2013
	€m	Margin %	€m	Margin %
Reported	223.1	64.8	231.7	64.3
Gap restricted vs. unrestricted rents*	19.4	66.7	22.5	66.4
Positive effect from subsidised loans on interest result**	17.6	66.5	17.4	65.9

• *€4.48 per sqm vs. €5.13 in 2013, €4.49 vs. €5.27 in 2013

• **€ Financing costs 1.4% (maturity 30 years) vs. Swap 2.6% +175 bps margin

Reported EBITDA distorted by restricted units (compensation for lower rents included in interest results)
Scenario analysis: closing gap between restricted vs. unrestricted rents; quantifying the impact from subsidised loans
Adjusted EBITDA margin approx. 160-210 bps higher
Lower Margin in 2013 YOY due to higher maintenance

Significant Efficiency Gains from External Growth Scalability of Platform allows for Above Average Productivity Gains

Sound property fundamentals Basis for Value Growth

Market	Residential Units	GAV Residential Assets (€m)	% of Total Residential GAV	GAV/ sqm (€)	In-Place Rent Multiple	GAV Commercial/ Other Assets (€m)	Total GAV
High- Growth Markets	31,679	2,218	45%	1,062	15.8x	168	2,385
Stable Markets with Attractive Yields	35,226	1,583	32%	703	12.7x	84	1,666
Higher-Yielding Markets	27,405	1,059	21%	628	11.7x	43	1,102
Subtotal NRW	94,310	4,860	98%	806	13.7x	294	5,154
Portfolio outside NRW	1,473	86	2%	877	14.1x	10	95
Total Portfolio	95,783	4,945	100%	808	13.7x	303	5,249
Other Assets							32
Total (Incl. Landbank and DevCo)				5,281

LEG Share Information

Source: LEG

Financial Calendar

Date	Report
12.08.2014	Quarterly Report Q2 as of 30th June 2014
02./03.09.2014	Roadshow London (Deutsche Bank)
09.09.2014	UBS Best of Germany Conference, New York
10./11.09.2014	Global Real Estate Conference, New York (BoA Merrill Lynch)
12.09.2014	Roadshow Chicago (Berenberg)
22.09.2014	Berenberg and Goldman Sachs German Corporate Conference, Munich
23.09.2014	Baader Investment Conference, Munich
14.11.2014	Quarterly Report Q3 as of 30th September 2014

Contact

LEG Immobilien AG – Investor Relations

Burkhard Sawazki Head of Investor Relations Tel: +49 211 4568 204 [email protected]

Karin Widenmann Manager Investor Relations Tel: +49 211 4568 458 karin.widenman[email protected]

Hans-Boeckler-Str. 38 40476 Dusseldorf Germany

AI Terminal

LEG Immobilien SE

260_ip_2014-08-12_74e1368e-4bd1-4437-b0a8-2733f54c1bbb.pdf