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.

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Agenda

I. Highlights Q1-2014
II. Portfolio and Operating Performance
III. Financial Performance
IV. Business Update and Outlook
V. Appendix

I. Highlights Q1-2014

Highlights Q1-2014

Overall company development

Cost rent adjustment of c. 35k units in January (+2.2%)
Successful launch of multimedia business
Preparation of the issue of €300m convertible bond (successful transaction in April)
Further progress on external growth

Sound operating performance with accelerating rent growth

In-place rent €5.04 /sqm (+2.9% like-for-like, +3.2% for free-financed units)
Occupancy at 96.9% on l-f-l basis (+10bps YOY; 96.7% including acquisitions)
On track for further vacancy reduction in FY-2014
Sequential increase due to seasonal pattern
Lower maintenance/turn costs in Q1; catch-up effects in coming quarters
Total expenses for maintenance and capex of €2.70 /sqm in Q1
FY-2014 target of approx. €13/sqm

Financial performance reflects dynamic rent development

Rental income €94.3m (+5.7% YOY from €89.2m)
Adjusted EBITDA €64.7m (+19.4% YOY from €54.2m);
FFO I €41.0m(+21.3% YOY from €33.8m), €0.77 per share
AFFO €32.7m (+22.0% YOY from €26.8m)
NAV €49.23 per share (+ 1.4% QOQ)

II. Portfolio and Operating Performance

Portfolio Overview Positive Rent Dynamics across all Submarkets

Total Portfolio

	31 Mar. 2014	∆ (YOY)
# of units	94,998	+4.5%
In-place rent (sqm)	€5.04 (€5.05)**	+2.6% (+2.9%)**
Occupancy	96.7% (96.9%)**	-10bps (+10bps)**
			** like for like

High-Growth Markets
	31 Mar. 2014	∆ (YOY)
# of units	31,477	-0.0%
In-place rent (sqm)	€5.54 (€5.63)**	+3.0% (+3.1%)**
Occupancy	98.6% (98.6%)**	+10bps (+10bps)**

Stable Markets with Attractive Yields
	31 Mar. 2014	∆ (YOY)
# of units	34,616	+8.0%
In-place rent (sqm)	€4.67 (€4.74)**	+1.5% (+2.4%)**
Occupancy	96.0% (96.4%)**	0bps (+40 bps)**

Higher-Yielding Markets
	31 Mar. 2014	∆ (YOY)
# of units	27,428	+5.5%
In-place rent (sqm)	€4.58 (€4.66)**	+1.4% (+2.6%)**
Occupancy	95.2% (95.5%)**	-30bps (0bps)**

Sound Organic Growth – Accelerating Momentum in Q1

Organic rent growth (residential) of +3.0% YOY
L-f-l rent growth (per sqm) of +2.9%
Accelerating rent growth of +3.2% for free-financed units emphasizes strong underlying dynamics

Further Vacancy Reduction Ahead Occupancy Development

L-f-l vacancy rate of 3.1% /-10bps YOY confirms sound underlying development
On track to reach further vacancy decrease in FY-2014
Positive underlying demand situation across all sub-markets:
Well-maintained asset base, good quality of micro locations, strong property management platform

Capex & Maintenance Well Maintained Asset Base; On Track for FY target

III. Financial Performance

Financial Highlights Q1-2014

Income Statement Q1-2014

Condensed Income Statement (€ million)	2013	Q1-2014	Q1-2013	 Higher rental income
Net rental and letting income	257.7	70.5	59.4	(+€5.1m/+5.7%)  Lower maintenance expenses (-€3.9m)
Net income from the disposal of investment property	-1.8	0.0	-0.2
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	-0.9	-0.9	 €0.3m Long Term
Net income from Other services	2.3	0.1	0.8	Incentive Plan – non-cash pass-through item
Administrative and Other expenses	-51.5	-8.8	-11.4	 Slightly lower recurring admin. costs of €7.8m (Q1-2013: €8.1m)
Other income	0.2	0.2	0.6
Operating earnings	285.5	61.1	48.4	 Lower non-cash loan amortisation of €4.6m
Net finance costs	-126.9	-32.2	-36.5	(-€5.6m YOY; one-off effect due to refinancing in Q1-2013)
Earnings before income taxes	158.6	28.9	11.9	 Slightly higher cash
Income tax expense	-21.7	-6.5	-0.7	interest expenses (€23.6m vs. €20.6m)
Consolidated net profit	136.9	22.4	11.3	 Deferred taxes (thereof cash taxes: -€0.1m)

Adjusted EBITDA Q1-2014

€ million	2013	Q1-2014	Q1-2013	 -€3.9m lower
EBITDA	294.1	63.2	50.5	maintenance cost  +€5.1m higher rental income
Net income from the valuation of investment property	-81.6	0.0	0.0	 -€2.6m lower admin. costs
Long-term incentive program (LTIP)	3.3	0.3	1.0
Non-recurring project costs	7.9	0.3	1.8	 Restructuring & reorganisation charges petering out
Extraordinary and prior-period expenses and income	3.2	0.1	-0.2
Net income from the disposal of investment property	1.7	0.0	0.2
Net income from the disposal of real estate inventory	3.1	0.9	0.9	 Winding down of former development business  Smaller disposals at
Adjusted EBITDA	231.7	64.7	54.2	premium to book values  Inventories: €9.0m

FFO Calculation Q1-2014

€ million	2013	Q1-2014	Q1-2013
Adjusted EBITDA	231.7	64.7	54.2	 Elimination of quarterly
Cash interest expenses and income	-91.0	-23.6	-20.6	fluctuations of sub sidized loans (+€2.3m)  Higher financial debt due to acquisitions
Cash income taxes	0.5	-0.1	0.2	(+€0.7m)  Slightly lower interest costs (Ø 3,2%;-10bps)
FFO I (not including disposal of investment property)	141.2	41.0	33.8
Net income from the disposal of investment property	-1.7	0.0	-0.2	 Disposals of non-core assets above book value
FFO II (including disposal of investment property)	139.5	41.0	33.6
Capex	-43.7	-8.3	-7.0
Capex-Adjusted FFO I (AFFO)	97.5	32.7	26.8	 €2.6m lower capex & maintenance (YOY)

FFO Bridge Q1-2014

Focus: Cash Effective Interest Expense Q1-2014

€ million	2013	Q1-2014	Q1-2013
Reported interest expense	131.4	30.0	35.1	 Extraordinary effects in 2013 due to
Interest expense related to loan amortisation	-30.2	-4.6	-10.2	refinancing
Refinancing fees	-2.9	-0.4	-1.9
Prepayment penalties	0.0	0.0	0.0
Interest on shareholder loans	-0.2	0.0	-0.1
Interest charges relating to valuation of assets/liabilities	-2.3	-0.4	-0.6
Leasing related interest expense	-1.6	-0.4	-0.4
Interest expenses related to changes in pension provisions	-3.6	-1.0	-1.0
Other interest expenses	-0.2	0.3	0.0
Bank charges	1,5	0.2	-
Interest income	-0.9	-0.1	-0.3
Cash effective interest expense	91.0	23.6	20.6

EPRA-Net Asset Value Q1-2014

€ million	31.03.2014	31.12.2013
Equity (excl. minority interests)	2,260.6	2,248.8	 +€22.3m net profit
Note: Shareholder loans to be converted into equity	0.0	0.0	 -€11.0m O-C-I
Effect of exercising options, convertible loans and other rights	-	-
NAV	2,260.6	2,248.8
Fair value of financial derivatives	65.2	52.0
Deferred taxes	281.8	271.1
EPRA-NAV	2,607.6	2,571.9	 Only deferred taxes related to investment properties and assets
Number of shares outstanding (m)	52,963	52,963	held for disposal
EPRA-NAV per share in €	49.23	48.56

* adjusted

Balance Sheet Q1-2014

Strong Balance Sheet Secures Defensive Profile and Paves Way for Growth

€ million	31.03.2014	31.12.2013	 Purchases €26m
Investment property	5,195.4	5,163.4	 Capex €8.3m  Reclassification
Prepayment for investment property	3.1	6.9	-€2.3m
Other non-current assets	92.6	91.9
Non-current assets	5,291.1	5,262.2
Receivables and other assets	42.9	33.8	 For acquisitions
Cash and cash equivalents	140.5	110.7	consolidated as of mid-2014
Current assets	183.4	144.5
Assets held for disposal	16.3	16.4
Total Assets	5,490.9	5,423.1
Equity	2,288.0	2,276.1
Non-current financial liabilities	2,386.0	2,396.7	 Equity ratio of 41.7%
Other non-current liabilities	470.6	443.9
Non-current liabilities	2,856.6	2,840.6
Current financial liabilities	221.2	187.0	 Financial debt
Other current liabilities	125.0	119.4	+€23.5m
Current liabilities	346.2	306.4
Total Equity and Liabilities	5,490.9	5,423.1

LTV Q1-2014

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

€ million	31.03.2014	31.12.2013
Financial debt	2,607.2	2,583.7
Cash & cash equivalents	140.5	110.7
Net Debt	2,466.8	2,473.0
Investment properties	5,195.4	5,163.4	 Low LTV offers significant
Properties held for sale	16.3	16.4	headroom for external growth
Prepayment for investment properties	3.1	6.9
	5,214.8	5,186.7
Loan to Value (LTV) in %	47.30	47.68

Financing Structure Q1-2014

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

IV. Business Update and Outlook

Business Update

Sound Organic Growth and Well-Positioned for External Growth

Sound prospects for organic growth

Identified attractive opportunities for selective larger modernisation projects and investments into turn costs
In-depth analysis of the newly acquired portfolios; internal benchmarking
Preparation phase completed; Investment programme started in spring
Especially, investments in vacant apartments promise attractive returns
Focus on newly acquired portfolios; release of capex backlog source of above average returns

Issue of convertible confirms low credit risk and supports external growth

€300m convertible issue with low coupon of 0.5% and attractive conversion premium of 30%
Attractive terms and implied bond value signal investment grade credit profile
Diversification of financing sources; strong access to debt capital markets
LEG's financial flexibility key competitive advantage in investment markets for acceleration of external growth

Promising outlook for continuation of external growth strategy

Smaller portfolio deal (300 units) signed in April
Further smaller transactions in advanced stages of due diligence
Rising visibility for accelerating deal momentum in the coming months ahead

Acquisitions: Dynamic Rent Growth

	31.03.2014		Closing		Change
Units	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy
5,472	5.09	92.6%	4.90	93.2%	0.20 (+4.0%)	-60 bp

New-letting		Termination
sqm	In-place rent € / sqm	sqm	In-place rent € / sqm	Change In-place rent
7,441	5.55	8,636	5.15	+7.7%

Adjustments of existing rents and re-lettings confirm attractive reversionary potential
Portfolios previously overall slightly undermanaged
Initiation of the capex-programme offers further significant upside
Rising occupancy in coming quarters expected

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

2014	Guidance
L-F-L rent growth	upper end of 2-3% range
Maintenance/Capex:	approx. €13 /sqm (capex ratio c. 50%)
Acquisitions:	>10,000 units by end 2014
FFO I:	€155m - €159m/ €2.93 - €3.00 per share; excl. future acquisitions
Dividend	65% of FFO I

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)	6,417 units (mainly Dusseldorf, Ratingen)	3,522 units (mainly Siegen, Solingen)	1,334 units (mainly Hagen)	11,273 units
2014 (Q2)	110 units	7,960 units (mainly Hamm, Bochum, Ahlen)		8,070 units
2014 (Q3)	209 units	310 units	5,374 units (mainly Gelsenkirchen, Unna)	6,002 units
2014 (Q4)	399 units	213 units	2,570 units (mainly Recklinghausen)	3,182 units
Total 1,2	7,135 units	12,005 units	9,278 units	28,527 units

Thereof: - Ahlen - Bochum		1,049 units 1,477 units
- Dusseldorf	3,293 units
- Gelsenkirchen			2,918 units
- Hamm		3,976 units
- Ratingen	2,794 units
- Recklinghausen			1,765 units	1) Sub-portfolios also include
- Siegen		1,027 units		restricted units
- Solingen - Unna		1,451 units	1,211 units	2) Total Portfolio also include 109 units Non NRW

LEG – Adj. EBITDA Margin

Leading Profitability in the Sector

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 subsidized 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 subsidized 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

Stable Asset Values Driven by Property Fundamentals: Rental Growth and Occupancy

	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	31,477	2,206	45%	1,061	15.9x	182	2,388
Stable Markets with Attractive Yields	34,616	1,548	32%	699	12.8x	83	1,631
Higher-Yielding Markets	27,428	1,058	22%	627	11.8x	42	1,100
Subtotal NRW	93,521	4,812	98%	805	13.8x	306	5,118
Portfolio outside NRW	1,477	85	2%	873	14.2x	10	95
Total Portfolio	94,998	4,897	100%	806	13.8x	316	5,213
Other Assets							36
Total (Incl. Landbank and DevCo)				5,249

LEG Share Information

Financial Calendar

Date	Report
15.05.2014	Quarterly Report Q1 as of 31st March 2014
25.06.2014	Annual General Meeting
12.08.2014	Quarterly Report Q2 as of 30th June 2014
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]

Frank Hilbertz Manager Investor Relations Tel: +49 211 4568 284 [email protected]

Hans-Boeckler-Str. 38 40476 Dusseldorf Germany

AI Terminal

LEG Immobilien SE

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