LEG Immobilien SE

Investor Presentation • Mar 11, 2024

LEG Immobilien SE FY-2023 Results

11 March 2024

FY-2023 Results – Agenda

• Highlights FY-2023
• Portfolio & Operating Performance

Financial Performance

Appendix

Outlook

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 forwardlooking 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 FY-2023 1

Highlights

Financial Summary FY-2023

Operating results		FY-2023	FY-2022	+/– %
Net cold rent	€m	834.3	799.1	+4.4%
NOI (recurring)	€m	683.8	660.4	+3.5%
EBITDA (adjusted)	€m	672.8	638.1	+5.4%
FFO I1	€m	453.9	482.0	–5.8%
AFFO	€m	181.2	108.8	+66.5%
AFFO per share	€	2.44	1.48	+64.9%
Operating cashflow	€	447.9	389.0	+15.1%
NOI margin (recurring)	%	82.0	82.6	–60bps
EBITDA margin (adjusted)	%	80.6	79.9	+70bps
FFO I margin	%	54.4	60.3	–590bps
AFFO margin	%	21.7	13.6	+810bps
Dividend per share	€	2.45	0.00	–
Portfolio		31.12.2023	31.12.2022	+/– %
Residential units	number	166,546	167,040	–0.3%
In-place rent (l-f-l)	€/sqm	6.58	6.33	+4.0%
Investments (adj.)2	€/sqm	35.01	40.61	–13.8%
EPRA vacancy rate (l-f-l)	%	2.4	2.7	–30bps

Balance sheet		31.12.2023	31.12.2022	+/– %
Investment properties	€m	18,101.8	20,204.4	–10.4%
Cash and cash equivalents3	€m	405.5	402.2	+0.8%
Equity	€m	7,488.2	9,083.9	–17.6%
Total financing liabilities	€m	9,375.8	9,460.8	–0.9%
Net debt4	€m	8,954.4	9,036.6	–0.9%
LTV	%	48.4	43.9	+450bps
Average debt maturity	years	6.2	6.5	–0.3y
Average debt interest cost	%	1.58	1.26	+32bps
Equity ratio	%	38.8	42.5	–370bps
EPRA NTA, diluted	€m	9,379.9	11,377.2	–17.6%
EPRA NTA per share, diluted	€	126.57	153.52	–17.6%
				+/–
Employees		31.12.2023	31.12.2022	%/bps
No. of employees		2,003	2,040	-1.8%

1 No steering KPI – for information purpose only. 2 Excl. new construction activities on own land, own work capitalised, consolidation effects and after subsidies. 3 Including short term deposits of €128.0m as of FY-2023 (FY-2022: €40.0m). 4 Excl. lease liabilities according to IFRS 16 and incl. short term deposits.

Cash is King - Strategy pays out

AFFO of €181.2m above upper guidance level – strong operations – DPS24 of €2.45

• AFFO +66.5% to €181.2m
• Operating Cashflow +15.1% to €447.9m
• FFO I –5.8% to €453.9m
• Adj. EBITDA-Margin 80.6%
• LTV 48.4%
• Debt @ 1.58% for 6.2y
• NTA p.s. €126.57

• Net cold rent +4.4%
• l-f-l rental growth +4.0%
• l-f-l vacancy 2.4% (–30bps)

• SBTi approved in 2024
• Despite much lower investments CO2 reduction of ~8,700t realised vs. target of 4,000t, as modernisations contributed ~2,700t and nudging effects ~ 6,000t
• CO2-footprint expected to come down by 4% to 27.3 CO2ekg/sqm

4.9% property devaluation in H2-2023

Total devaluation of 11.9% in FY2023 – bottoming out expected

Resilient balance sheet – fully refinanced until mid 2025 LTV of 48.4% backed by strong financing structure Resumption of dividend with DPS24 of €2.45

100% of AFFO – net disposal proceeds (€55m) to be retained

Guidance 2024 confirmed – midpoint +5% vs. 2023 €180 – 200m AFFO driven by strong fundamentals

1 Bulwiengesa New Development Monitor for all German project starts Q4 23 vs Q4 22, see also appendix. 2 In run-off: Total remaining outflows until YE 2025 €82m.

FY-2023 Results – LEG Immobilien SE	7

			ILLUSTRATIVE
Driver	Growing, reliable cash inflows	Cash outflows/ AFFO
Structural supply/ demand imbalance support market rent growth  New development project starts in GER –75%1  Rent table dynamics continue LEG specific growth driver in 2026 and 2028 from rent restricted units	 Net cold rent via core business	 Investments  Maintenance  Capex  New development2  Operating & admin costs  Interest expenses  Taxes	Improve efficiency from decarbonisation capex (fully self funded) via own tools and initiatives Strict cost discipline Fully refinanced until mid 2025 Attractive financing conditions with avg. 1.58% for avg. 6.2 years
High rent collection of >99% Growing importance from value add business and Green JV's like	 Value add & third party decarbonisation business	AFFO	Potential dividend base, fully self-funded Scrip offering limiting cash outflows
Optionality from disposals on dividend base and/ or capital strengthening	Net disposal proceeds

A very resilient business set-up: Offering sufficient optionality to also shift gears –

Highlights

Very reliable and growing cashflows provide a sustainable base for the dividend

ILLUSTRATIVE

Portfolio & Operating Performance 2

Portfolio & Operating Performance

Portfolio transactions: c.2,000 units sold for total proceeds of c.€155m

€80m of proceeds reflected within 2023 figures – remainder of €75m to provide a good start to 2024

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

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.

• In Q1 transfer of ownership of one larger portfolio (Düsseldorf and Cologne) signed in 2022
• Since Q2 nearly all additions from finished new construction projects

Disposals

• Disposal incl. transfer of ownership of ~1,300 units at a volume of c. €80m – at around book value in FY-2023, net proceeds of €55m
• Disposal contracts for around 700 residential units signed but not yet transferred for a volume of c.€40m
• Additionally commercial non-core units sold at book value (c.€35m) with cash-inflow expected in Q1 2024
• Total disposals in 2023 include three larger portfolios (in total >800 units) and several small ticket sales of non-core units particular in Eastern Germany

Portfolio & Operating Performance

Immediate cash generation via dynamic rent growth

Additional contribution from cost rent adjustment

l-f-l free financed rent development

€/sqm/month

• Residential rent increase of 4.0% driven by rent table adjustments and re-letting
• Cost rent increase of 5.7% for the subsidised units contributed 0.8%-pts.
• Free financed rent increased by 3.6% on average
• New rent table examples for LEG: Bergkamen +14.8%, Castrop-Rauxel +18.1%, Krefeld +10.2% (based on local reference rent (OVM))

Stable

+3.9%

+3.9%

+2.8%

Capex and Maintenance

Spot landing with €35.01/sqm reflects efficient and disciplined spending

1 Excl. new construction activities on own land, own work capitalised, consolidation effects and after subsidies. 2 Relates to adjusted investments.

• by 13.8% yoy to €35.01. Investments were fully in line with guidance
• Shift towards AFFO steering leads to lower capitalisation rate² (59% vs 75% FY-2022) and increased maintenance expenses accordingly
• Despite much lower investments CO2 reduction of ~8,700 t realised vs. target of 4,000 t, as modernisations contributed ~2,700 t and nudging effects ~ 6,000 t
• New construction costs on own land amounted to c. €17m, run-off on track, also due to cancellation of projects. See remaining pipeline in appendix

Value-added services

Normalisation of earnings contribution after tailwinds from energy prices in 2022

Launch January 2014

Partner

~100 partners from energy and technical service providers

100% entity

Electricity, heating, gas, metering

Launch March 2015

Partner

Joint venture (51%)

Small repair work, craftsmen services

Launch January 2017

Partner

~130

partners from craft companies and technical service providers

100% entity

General contractor services

Acquisition October 2020

Key driver 2023

ESP results impacted by volatility in energy markets and from higher investments

Further service entities of LEG

Joint Venture: provides serial energetic refurbishment of properties

Joint Venture: developed the first smart thermostat for hydraulic balancing

Joint Venture: offers comprehensive service around air-to-air heatpump installation

Fully digital platform: facilitates services like green keeping and cleaning between property owners and providers

Financial Performance 3

Financial highlights FY-2023 Cash focus pays off

Net cold rent

EBITDA (adjusted)1

AFFO

€m

Net cold rent

Growth mainly driven by 4.0% l-f-l rent growth and some positive effects from additions to the portfolio

Net operating income (recurring)

Margin decline from 82.6% to 82.0% largely due to higher non-allocable operating expenses

EBITDA (adjusted)

Positive effects from other services driven by forward sale of green electricity (+€20.7m)

AFFO

• Increase by 66.5% to €181.2m driven by
  • Reduction of investments by –13.5% from €439.2m to €379.8m
  • Adverse effect from higher cash interest expenses (–€18.1m)

1 Previous year adapted to new definition, i.e. excluding maintenance (externally-procured services) and own work capitalised.

80.6%

(79.9%)

AFFO Bridge FY-2023

In particular decline in investments leads to strong AFFO improvement

Portfolio valuation FY-2023 – Breakdown of revaluation losses

Devaluation losing momentum

Valuation decline by markets l-f-l¹

1 Property valuation with cut-off date as of 30 September 2023 and revaluation date as of 31 December 2023. 2 Source: BNP Real Estate for transactions >30 units.

Valuation adjustment of –7.4% in H1-2023 and –4.9% in H2-2023; total of –11.9% in

Transaction market in German residential real estate at lowest volume since 2010

Stronger devaluation effect in high-growth markets compared to higher-yielding

Average object-specific discount rate increased to 4.7% (FY-2022 3.7%), cap rate increased to 5.7% (FY-2022 5.2%)

Since peak in H1-2022 combined devaluation effect of c.15.5%

Highlights

FY-2023

H2 22

H2 22

markets

(2023: €5.2bn)2

Portfolio valuation FY-2023: Back at attractive yields

4.8% gross yield and 3.8% NIY – c.5% and c.4% resp. expected, towards year end due to rent growth

Market segment	Residential Units	GAV Residential Assets (€m)	GAV/ sqm (€)	Gross yield	In-Place Rent Multiple	GAV Commercial/ Other (€m)	Total GAV (€m)	Gross yields 7%
High Growth Markets	49,928	7,265	2,207	4.0%	25.2x	327	7,592	6% 5%
Stable Markets	66,713	6,457	1,509	4.9%	20.3x	257	6,714	4%
Higher Yielding Markets	49,905	3,377	1,129	6.2%	16.3x	91	3,467	3% Higher-Yielding Stable 2%
Total Portfolio	166,546	17,098	1,619	4.8%	21.0x	674	17,7731	LEG 1% High-Growth
								0% 2019 2020 2021 H1-2022 2022 H1-2023 2023

Financial profile

2024 maturities refinanced at attractive terms – next maturities mid 2025

Pro forma maturities¹

Average debt maturity

Average interest cost

Loan-to-value

Highlights

• No refinancings until mid of 2025 cash at hand as well as RCF would cover all maturities until 01/2026
• Undrawn RCF's increased to €750m (3y maturity) (prev. €675m)/ CP-programme of €600m
• Strong liquidity of >€400m (as at 12/23)2
• Headroom of c. 23–24% value decline regarding LTV and unencumbered asset test respectively
• Secured maturities in 2025 of €564m to be rolled forward or refinanced (first maturities mid 2025)
• Convertible of €400m due as of Sept 1, 2025
• Average debt maturity as at 12/23 was 6.2 years with average interest cost of 1.58%
• Interest hedging rate of c.94%
• LTV of 48.4% above medium-term target level of max. 45%, but comfortably within thresholds for rating of Baa2 (stable)

1 Pro-forma as of 01/2024 after refinancing 100% of the 2024 maturities. 2 Cash and short-term deposits.

Outlook 4

Guidance 2023: Operating results reached upper end

Significant higher CO2-savings

Outlook

		Guidance 20231	2023 achievement
AFFO		Upper end of €165m – 180m	€181.2m
Adj. EBITDA margin		c. 80%	80.6%
l-f-l rent growth		3.8% – 4.0%	4.0%
Investments		c. 35€/sqm	35.01€/sqm
LTV		Medium-term target level max. 45%	48.4%	work in progress
Dividend		100% AFFO as well as a part of the net proceeds from disposals	€2.45 ps
Disposals		Not reflected1
Environment	2023–2026	Reduction of persistent relative CO2 emission saving costs in €/ton by 10% achieved by permanent structural adjustments to LEG residential buildings		On track
	2023	4,000 reduction from modernisation projects tonnes CO2 and customer behavior change	8,700 t
Social	2023–2026	Improve high employee satisfaction level to 70% Trust Index		Interim Update 2024
	2023	Timely resolution of tenant inquiries regarding outstanding receivables (<13 working days)	11.5 days
Governance	2023	85% of Nord FM, TSP, biomass plant, 99% of all other staff holding LEG group companies have completed digital compliance training	98.6% 99.9%

Outlook

Guidance 2024 unchanged: AFFO in the range of €180m – €200m

Stronger rent growth and smart spending allows for higher cash generation

		Guidance 20241
AFFO2		€180m – 200m
Adj. EBITDA margin3		c. 77%
l-f-l rent growth		3.2% – 3.4%
Investments		c. 32€/sqm
LTV		Medium-term target level max. 45%
Dividend		100% AFFO as well as a part of the net proceeds from disposals
Disposals		Not reflected1
Environment	2024–2027	Installation and commissioning of 2,000 air-to-air heat pumps in 2027 in LEG's portfolio and in third-party portfolios
	2024	4,000 tonnes CO2 reduction from modernisation projects and customer behaviour change
Social	2024–2027	Acceleration of the processing time of total LEG tenant complaints by 10% by 31 December 2027 based on the averaged processing time of resolved complaint tickets from March 2024 and September 2024
	2024	Use of 100 LEG staff hours to design, organise or implement intercultural projects until 31 December 2024
Governance	2024	85% of TSP employees, 99% of employees in staff holding LEG group companies have completed the "IT Security" training until 31 December 2024

1 Guidance based on 167 k units. 2 Adjusted for capex financed in full by subsidised, long-term loans accounted for at fair value or at cost, these will be reported separately. 3 Based on the adjusted EBITDA definition effective since business year 2023, i.e. excluding maintenance (externally-procured services) and own work capitalised.

1	Financials
2	Market
3	Portfolio
4	ESG
5	Financing
6	Share Information

FFO I/ AFFO calculation

€m	FY -2023	FY -2022
Net cold rent	834.3	799.1
Profit from operating expenses	–21.8	–12.4
Personnel expenses (rental and lease)	–109.0	–107.5
Allowances on rent receivables	–16.4	–25.2
Other income (rental and lease)	–10.9	–4.2
Non -recurring special effects (rental and lease)	7.6	10.6
Net operating income (recurring)	683.8	660.4
Net income from other services (recurring)	36.8	17.3
Personnel expenses (admin.)	–35.1	–28.4
Non -personnel operating costs	–19.3	–37.6
Non -recurring special effects (admin.)	6.5	26.4
Administrative expenses (recurring)	–47.9	–39.6
Other income (admin.)	0.1	0.0
EBITDA (adjusted)	672.8	638.1
Net cash interest expenses and income FFO I	–131.3	–113.2
Net cash income taxes FFO I	–4.7	–1.7
Maintenance (externally -procured services)	–99.3	–57.1
Subsidies recognised in profit or loss	2.2	–
Own work capitalised	16.0	17.7
FFO I (including non -controlling interests)	455.7	483.8
Non -controlling interests	–1.8	–1.8
FFO I (excluding non -controlling interests)	453.9	482.0
FFO II (including disposal of investment property)	453.7	483.7
Capex (recurring)	–272.7	–373.2
AFFO (capex -adjusted FFO I)	181.2	108.8

Net cold rent

+€35.2m or +4.4 %, mainly from organic growth

Profit from operating expenses

Higher operating expenses due to higher non -allocable operating expenses ( – €10.2m)

Allowances on rent receivables

Normalisation due to 2022 one -time effects

Net income from other services (rec.)

Positive effects driven by forward sale of green electricity (+€20.7m)

Personnel expenses (admin)

Driven by tarif increases (-€2.2m) and LTI contribution effects ( - €1.8m)

Net cash interest expenses

Increase (–€18.1m) reflects general interest hike

Investments

Increase in externally procured maintenance (–€42.2m) and considerable decline in capex (+€100.5m) driven by change to AFFO steering and hence lower capitalisation ratio

Appendix – Financials

Cash remains king: AFFO 2023 to AFFO 2024e

More than offsetting the normalisation of the forward sale of green electricity contribution as well as higher interest rates

EPRA NRV – NTA – NDV

€m	31.12.2023		31.12.2022
	EPRA NRV	EPRA NTA1	EPRA NDV	EPRA NRV	EPRA NTA	EPRA NDV
	– diluted	– diluted	– diluted	– diluted	– diluted	– diluted
IFRS equity attributable to shareholders (before minorities)	7,463.2	7,463.2	7,463.2	9,058.6	9,058.6	9,058.6
Hybrid instruments	28.5	28.5	28.5	31.0	31.0	31.0
Diluted NAV (at Fair Value)	7,491.7	7,491.7	7,491.7	9,089.6	9,089.6	9,089.6
Deferred tax in relation to fair value gains of IP and deferred tax on subsidised loans and financial derivatives	1,943.4	1,935.2	–	2,371.9	2,371.9	–
Fair value of financial instruments	–42.0	–42.0	–	–78.5	–78.5	–
Intangibles as per the IFRS balance sheet	–	-5.0	–	–	–5.8	–
Fair value of fixed interest rate debt	–	–	744.0	–	–	1,208.3
Deferred taxes of fixed interest rate debt	–	–	–156.7	–	–	–643.6
Estimated ancillary acquisition costs (real estate transfer tax)	1,759.4	–	–	1,955.3	–	–
NAV	11,152.5	9,379.9	8.079.0	13,338.3	11,377.2	9,654.3
Fully diluted number of shares	74,109,276	74,109,276	74,109,276	74,109,276	74,109,276	74,109,276
NAV per share (€)	150.49	126.57	109.01	179.98	153.52	130.27

1 Including RETT (Real Estate Transfer Tax) would result in an NTA of €11,127.5m or €150.15 per share (31.12.2022: €13,332.4m or €179.90 per share).

Appendix – Financials

Balance sheet

€m	31.12.2023	31.12.2022
Investment property	18,101.8	20,204.4
Other non -current assets	559.0	579.0
Non -current assets	18,660.8	20,783.4
Receivables and other assets	287.4	179.5
Cash and cash equivalents	277.5	362.2
Current assets	564.9	541.7
Assets held for sale	77.9	35.6
Total Assets	19,303.6	21,360.7
Equity	7,488.2	9,083.9
Non -current financing liabilities	8,930.1	9,208.4
Other non -current liabilities	2,110.2	2,491.1
Non -current liabilities	11,040.3	11,699.5
Current financing liabilities	445.7	252.4
Other current liabilities	329.4	324.9
Current liabilities	775.1	577.3
Total Equity and Liabilities	19,303.6	21,360.7

Equity ratio: 38.8 % (FY -2022: 42.5%)

• Investment property Revaluation: –€2,422.8 m
• Acquisitions: +€169.5 m
• Capex: +€264.5 m
• Disposals and held for sale: –€121.5^m

Other non -current assets

BCP stake (35.7%) included with market value of €168.3m ( €61.04 per share)

Receivables and other assets Increase mainly driven by higher short term deposits (+ €88.0m to €128.0 m )

- Cash and cash equivalents Operating activities: +€447.9m (+15.1%) Investing activities: –€421.5^m Financing activities: –€111.1^m

Other non -current liabilities

Decline in deferred tax liabilities (–€404.4m) mainly driven by decline in property values

Current financing liabilities As of today, all financial maturities for 2024 (c. €310 m) prolonged

Appendix – Financials

Loan to Value

Loan to Value (LTV) in %	48.4	43.9
Property values	18,519.8	20,607.5
companies1 Participation in other residential	340.1	306.7
Prepayments for investment properties and acquisitions	–	60.8
Properties held for sale	77.9	35.6
Investment properties	18,101.8	20,204.4
Net Debt	8,954.4	9,036.6
Cash & cash equivalents1	405.5	402.2
Excluding lease liabilities (IFRS 16)	15.9	22.0
Financial liabilities	9,375.8	9,460.8
€m	31.12.2023	31.12.2022

Loan to Value

Increase to 48.4% as at Dec 31, 2023 from 43.9% as at Dec 31, 2022 driven by devaluation effects

Participation in other residential companies

BCP is included with a value of €168.3m based on a share price of €61.04 at Tel Aviv Stock Exchange as at Dec 31, 2023 (€268m, €97.19 as at Dec 31, 2022)

1 Since Q1-2022 calculation adapted to the current standard practices, i.e. inclusion of short-term deposits and inclusion of participation in other residential companies (in particular BCP) into property values.

Income statement

€ m	FY -2023	FY -2022
Net operating income	581.6	413.5
Net income from the disposal of investment property	–1.7	–1.5
Net income from the valuation of investment property	–2,422.8	382.4
Net income from the disposal of real estate inventory	–0.5	–0.2
Net income from other services	36.3	16.4
Administrative and other expenses	–57.7	–182.6
Other income	0.3	0.1
Operating earnings	–1,864.5	628.1
Net finance costs	–117.8	–120.1
Earnings before income taxes	–1,982.3	508.0
Income tax expenses	417.5	–270.6
Consolidated net profit	–1,564.8	237.4

Net operating income  Increased net cold rent (+€35.2 m )  €10.2 Higher operating expenses ( – m) due to higher non -allocable operating costs  Higher maintenance costs (externally procured) ( – €42.2 m )  Positive impact from significantly lower depreciation/amortisation (+€183.4 m ) Net income from valuation  –11.9% devaluation effect as of Dec 31 or –€2.4bn vs. +€0.4bn in FY-22
Administrative and other expenses
 FY 2022 impacted by amortisation effects (–€112.4m)
Net finance costs
 Net interests increased slightly
 Positive effects from the valuation of
participations nearly offset by negative effects from embedded derivatives of the convertible bonds
Income tax expenses
 Devaluation of properties lead to lower potential capital gains in case of disposals and hence to lower deferred taxes

Effective Group tax rate of 21.1 % (FY -2022: 53.3%)

Appendix – Market

German residential market

A highly fragmented market – dominated by private owners

Professional owners 34%

66% Private owners

Appendix – Market

Demand – supply imbalance will persist for the coming years

Immigration remains a driver to further push demand for affordable units while new supply erodes

German population at highest level ever in 2023

New apartments completed

No. of building permissions for apartments with strongest decline within last decade – on a yearly basis with 260k units at lowest level since 2012

German new development: Studies point to significant reduction

Direction seems to be clear – momentum not yet, but risks that supply drastically breaks down

New residential projects started by volume1 m sqm

"The crisis is deeper than building permission figures and completion figures show so far. Residential construction activities still benefits from projects which have been started before the interest rate reversal. Based on building permissions which have been dropped by roughly a quarter and considering completion times, the number of new built homes will decline to 150.000 units per year [by 2025]"2

Residential completions3 by European countries 2022 to 2026
in 1,000 units
	2022	2023	2024	2025	2026	Change in % 2022/26
Belgium	57.0	51.8	47.4	46.7	46.7	–18.1
Denmark	39.9	32.9	25.5	24.6	26.6	–33.3
Germany	295.3	270.0	225.0	195.0	175.0	–40.7
Finland	41.4	33.5	19.2	22.0	28.3	–31.6
France	375.7	381.3	328.8	296.3	296.6	–21.1
Great Britain	207.5	173.5	176.9	185.4	194.8	–6.2
Ireland	29.8	31.0	33.5	35.0	36.1	21.3
Italy	96.0	101.0	99.8	95.4	90.5	–5.7
Netherlands	74.4	75.0	72.0	71.0	72.0	–3.2
Norway	28.0	28.9	23.7	26.0	30.2	7.6
Austria	62.3	55.8	49.3	46.6	46.4	–25.4
Portugal	20.2	20.8	21.4	22.0	22.7	12.6
Sweden	72.1	69.0	35.6	33.1	36.5	–49.5
Switzerland	43.3	42.1	42.4	43.0	43.7	1.1
Spain	89.1	90.0	95.0	100.0	100.0	12.2
Western Europe (EC-15)	1,531.9	1,456.5	1,295.5	1,242.1	1,246.0	–18.7
Poland	238.6	230.5	185.0	203.0	214.0	–10.3
Slovakia	20.2	19.4	19.7	21.3	22.1	9.3
Czech Republic	39.4	37.7	31.2	30.6	33.0	–16.2
Hungary	20.5	19.0	17.0	14.5	15.5	–24.5
Eastern Europe (EC-4)	318.8	306.6	252.9	269.4	284.6	–10.7
Total	1,850.7	1,763.1	1,548.4	1,511.5	1,530.6	–17.3

1 Source Bulwiengesa New Development Monitor. 2 Source: ZIA – https://zia-deutschland.de/fruehjahrsgutachten/ 3 Completed residential units in new buildings as wells in existing residential and non-residential buildings. Source: ifo/ EUROCONSTRUCT https://www.ifo.de/publikationen/2024/aufsatz-zeitschrift/europaeische-baukonjunktur-verliert-2024-weiter-dynamik

FY-2023 Results – LEG Immobilien SE 31

Appendix – Market

German residential: Lowest transaction volume since 2010

Family offices and US capital already back in the market with above long-term participation rate

Investment volume German residential

• Transaction volume €5.2bn
• Lowest volume since 2010
• –72% vs. long-term average

Investors by group

%

• High interest from family offices with 19% (vs. 4% for 10-year average)
• Investment funds and property companies constraint by higher financing costs

Investors by geography

%

• High share of local capital with 68%
• Return of US investors with 24% (vs. 6% for 10-year average)

1 Residential units. 2 Non-core units. 3 Tense markets only allow for 15% rent increase within three year while normal markets allow for 20%.

LEG's portfolio comprises c. 166,500 units

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

Appendix – Portfolio

As at 31 December 2023

40%

42%

15% tense

30%

(c. 32,600 units / c. 20%)

Total portfolio1 (c. 166,500 units)

30%

by units

20%

by GAV €m

85% normal

Normal vs. tense markets³

Existing

Rent regulation in Germany

Only 15% of units located in tense markets

Free-financed units 81% of LEG's units (~134,500 units)

Non-tense markets ~109,500 units Tense markets² ~25,000 units Contracts Rent increase Max. 20% within 3 years Max. increase to local reference rent1 Rent increase Max. 15% within 3 years (Kappungsgrenze) Max. increase to local reference rent1 Modernisation levy Annual rent can be increased by 8% of modernisation costs + +

Limit: €3 per sqm (rent/sqm/month > €7) or €2 per sqm (rent/sqm/month < €7) over 6 years

New contracts No regulations Rental brake (Mietpreisbremse) Increase of max. 10% on local reference rent1

Rent restricted units

19% of LEG's units (~32,000 units)

Cost rent adjustment

• Every third year (i.e. last was in 2023, next will be in 2026)
• After full repayment of the underlying subsidised loan, the residential unit gets out of rent restriction and regular code applies
• In the case of early repayment, rent restriction continues for another 10 years (tenant protection); then regular code applies

Advantages of early repayment

• Earlier transition of subsidised unit into free financed segment
• Immediate positive valuation effect (DCF model)

1 Based on rent table (Mietspiegel). 2 In NRW, 18 cities were identified as tense markets, especially Düsseldorf, Cologne and Greater Cologne area, Bonn, Münster. Outside NRW and relevant for LEG are cities such as Brunswick, Hanover, Laatzen, Oldenburg, Osnabrück and Mannheim.

Top locations upcoming rent tables (MSP – Mietspiegel)

FY 2024: Offering the basis for further growth

Location	# Residents	LEG market segment	# LEG free financed units	% of total free financed portfolio	Current MSP type	Current MSP valid since	New MSP expected type (method)	New MSP expected time of update
Wilhelmshaven	> 50,000	Higher-yielding	6,761	5.0%	No MSP	No MSP	Qualified (Bottom-Up)	03/2024
Bielefeld	>100,000	Stable	2,693	2.0%	Qualified	03/2022	Qualified (Update)	03/2024
Düsseldorf	>100,000	High-growth	4,770	3.5%	Simple	12/2021	Simple (Bottom-Up)	04/2024
Detmold	> 50,000	Stable	1,117	0.8%	Qualified	12/2021	Qualified (Update)	06/2024
Bonn	>100,000	High-growth	1,532	1.1%	Qualified	06/2022	Qualified (Bottom-Up)	07/2024
Gütersloh	>100,000	High-growth	1,390	1.0%	Qualified	07/2022	Qualified (Bottom-Up)	07/2024
Essen	>100,000	Stable	3,305	2.4%	Qualified	08/2022	Qualified (Bottom-Up)	08/2024
Braunschweig	>100,000	High-growth	1,987	1.5%	Qualified	09/2022	Qualified (Update)	09/2024
Remscheid	>100,000	Higher-yielding	1,521	1.1%	Qualified	12/2022	Qualified (Bottom-Up)	12/2024
Wuppertal	>100,000	Stable	1,346	1.0%	Qualified	12/2022	Qualified (Bottom-Up)	12/2024

Subsidised units – Inflation-dependent components of the cost rent (i.e. admin and maintenance) were adjusted in January 2023 based on 3-year CPI development1

Cost rent components2 Capital costs

Management costs Depreciation

Operating costs

• Loss of rental income risk
• Administration costs
• Maintenance costs

CPI - linked

Calculation for LEG's subsidised portfolio

122.2			from 01/2020	adjustm. 01/2023
	+15.2%		Administration costs4 per unit/year	298.41	+15%
106.1	(applied to admin costs and maintenance costs)		Maintenance costs4 per sqm/year
			Building age <22y	9.21	+15%
			Building age >22y<32y	11.68	+15%
			Building age >32y	14.92	+15%
CPI index Oct 20193		CPI index Oct 20223

Financing costs

Historic view

Impact on cost rent adjustment at LEG

	2014	2017	2020	2023
3 year period CPI development	+5.7%	+1.9%	+4.8%	+15.2%
Total rent increase for LEG's subsidised portfolio (l-f-l)	+2.4%	+1.2%	+2.0%	+5.7%5

LEG portfolio

Subsidised units (12/2023)

Total subsidised portfolio	32,120	5.36
Higher-yielding markets	7,065	4.87
Stable markets	13,636	5.26
High growth markets	11,419	5.77
Location	Number of subsidised units	Average net cold rent month/sqm (€)

1 CPI development from October 2019 (index = 106.1) to October 2022 (index = 122.2 acc. to Federal Statistical Office). 2 Legal basis for calculation: II. Berechnungsverordnung. 3 Basis 2015 = 100. 4 Administration and maintenance costs are lump sums. 5 as of Q4 2023.

Subsidised units account for around 19% of the portfolio

Reversionary potential amounts to 46% on average

Rent potential subsidised units

• Until 2028, around 20,000 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 restrictions⁴

Around 60% of units to come off restriction until 2028

Number of units coming off restriction and rent upside

Spread to market rent

€/sqm/month

1 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. 2 ≤5 years = 2024–2028; 6-10 years = 2029–2033; >10 years = 2034ff. 3 Rent upside is defined as the difference between LEG in-place rent and market. 4 For example rent increase cap of 15% (tense markets) or 20% for three years.

LEG's investment track record in nominal and real terms

Investments into the standing portfolio

Nominal (adjusted) investments

€/sqm

Inflation adjusted (2013 based) investments

€/sqm

Source: company data / Destatis for construction price index. 1 Assuming 3% construction price development.

FY-2023 Results – LEG Immobilien SE 39

Appendix – Portfolio

New construction – finishing the last projects – small in volume

Manageable size of projects and investment volume, cash potential from built to sell

Completions

number of units per year

Investment volume per year

Remaining completions until 2025

Remaining investment volume

€82m

Carbon Balance Sheet 2023

27.3 CO2ekg/sqm 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
• 27.3 CO2ekg/sqm based on heating energy

Heat energy by source (100% of portfolio)

• Based on actual consumption 2022 (61% actuals, 37% energy performance certificates (EPC), 2% estimates)
• Extrapolated for 2023
• Limited assurance by Deloitte

Energy efficiency of our portfolio of 144 kWh/sqm 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

Appendix – ESG

On track for our target towards climate neutrality

Nudging initiative pays-off and leads to strong and cost-effective contribution

LEG fully committed to German Climate Change Act to achieve climate neutrality by 2045

• Aligned with strategy via STI/ LTIcomponent of compensation scheme
• CO2 reduction in 2023 by 2% to 32.6kg (location based) and by 4% to 27.3kg (market based)
• Key driver:
  • 8,728t CO2 savings of which
    • 6,011t from nudging-effects
    • 2,717t from energetic refurbishments
• 2023 and 2024 STI component: 4,000 tons CO2 reduction from modernisation projects and customer behavior change
• 2023–26 LTI component envisages a 10% efficiency improvement for investments undertaken

Appendix – ESG

Among the best in class

Reflecting LEG's strong sustainability commitment

1 As at February 2024

SBTi: Approved near-term science based targets

LEG additional creditor information

Headroom of approx. 24% value decline for unencumbered asset test

Unsecured financing covenants Financing mix

Covenant	Threshold	FY-2023
Consolidated Adjusted EBITDA / Net Cash Interest	≥1.8x	4.5x1
Unencumbered Assets / Unsecured Financial Indebtedness	≥125%	160.8%
Net Financial Indebtedness / Total Assets	≤60%	47.1%
Secured Financial Indebtedness / Total Assets	≤45%	18.9%

Ratings (Moody's) Key financial ratios

Type	Rating	Outlook
Long Term Rating	Baa2	Stable
Short Term Rating	P-2	Stable

	FY-2023	FY-2022
Net debt / adj. EBITDA2	13.5x	14.9x
LTV	48.4%	43.9%
Secured Debt / Total Debt	40.2%	37.7%
Unencumbered Assets / Total Assets	39.7%	39.3%
Equity ratio	38.8%	42.5%

1 Based on the adjusted EBITDA definition effective until business year 2022. Based on the adjusted EBITDA definition effective since business year 2023, i.e. excluding maintenance (externally-procured services) and own work capitalised, KPI is 5.2x. 2 Average net debt last four quarters / adjusted EBITDA LTM.

Appendix – Financing

Capital market financing Corporate bonds

€500m 2019/2027 28 Nov 2027 0.875% p.a. 99.356% DE000A254P51 A254P5
€300m 2019/2034 28 Nov 2034 1.625% p.a. 98.649% DE000A254P69 A254P6
€600m 2021/2033 30 Mar 2033 0.875% p.a. 99.232% DE000A3H3JU7 A3H3JU
€700m1 2021/2031 30 Jun 2031 0.750% p.a. 99.502% DE000A3E5VK1 A3E5VK
€500m 2021/2032 19 Nov 2032 1.000% p.a. 98.642% DE000A3MQMD2 A3MQMD
€500m 2022/2026 17 Jan 2026 0.375% p.a. 99.435% DE000A3MQNN9 A3MQNN
€600m2 2022/2029 17 Jan 2029 0.875% p.a. 99.045% DE000A3MQNP4 A3MQNP
€500m 2022/2034 17 Jan 2034 1.500% p.a. 99.175% DE000A3MQNQ2 A3MQNQ

Financial
Covenants

Adj. EBITDA/ net cash interest ≥ 1.8x Unencumbered assets/ unsecured financial debt ≥ 125% Net financial debt/ total assets ≤ 60% Secured financial debt/ total assets ≤ 45%

1 Includes €100m bond tap as of 10 July 2023. 2 Includes €100m bond tap as of 22 November 2023.

Capital market financing Convertible bonds

	2017/2025	2020/2028
Issue Size	€400m	€550m
Term / Maturity Date	8 years/ 1 September 2025	8 years/ 30 June 2028
Coupon	0.875% p.a. (semi-annual payment: 1 March, 1 September)	0.400% p.a. (semi-annual payment: 15 January, 15 July)
# of shares	3,531,959	3,580,370
Initial Conversion Price	€118.4692	€155.2500
Adjusted Conversion Price1	€113.2516 (since 2 June 2022)	€153.6154 (since 7 June 2022)
Issuer Call	From 22 September 2022, if LEG share price >130% of the then applicable conversion price	From 5 August 2025, if LEG share price >130% of the then applicable conversion price
ISIN	DE000A2GSDH2	DE000A289T23
WKN	A2GSDH	A289T2

1 Dividend-protection: The conversion price will not be adjusted until the dividend exceeds €2.63 (2017/2025 convertible) and €3.562 (2020/2028 convertible).

LEG share information

Basic data Shareholder structure1 Market segment Prime Standard Stock Exchange Frankfurt Total no. of shares 74,109,276 Ticker symbol LEG ISIN DE000LEG1110

Indices MDAX, FTSE EPRA/NAREIT, GPR 250, Stoxx Europe 600, DAX 50 ESG, i.a. MSCI Europe ex UK, MSCI World ex USA, MSCI World Custom ESG Climate Series

Weighting MDAX 4.1% (31.01.2024) EPRA Developed Europe 2.9% (31.01.2024)

Share (07.03.2024; indexed; in %; 01.02.2013 = 100)

1 Shareholdings according to latest voting rights notifications.

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 https://ir.leg-se.com/en/investor-relations/financial-calendar

IR Contact

Frank Kopfinger, CFA Head of Investor Relations & Strategy

Tel: +49 (0) 211 4568 – 550 E-Mail: frank.kopfinger@leg-se.com

Investor Relations Team For questions please use ir@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