LEG Immobilien SE

Investor Presentation • Nov 9, 2023

9M-2023

LEG Immobilien SE 9M-2023 Results

9 November 2023

9M-2023 Results – Agenda

• Highlights 9M-2023
• Portfolio & Operating Performance

Financial Performance

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 9M-2023 1

Highlights

Financial Summary 9M-2023

Operating results		9M-2023	9M-2022	+/- %
Net cold rent	€m	623.5	596.6	4.5%
NOI (recurring)	€m	516.9	511.7	1.0%
EBITDA (adjusted)	€m	507.3	493.5	2.8%
FFO I	€m	352.6	374.3	–5.8%
FFO I per share	€	4.76	5.11	–6.8%
AFFO	€m	176.9	114.6	54.4%
AFFO per share	€	2.39	1.56	53.2%
Operating cashflow	€	306.7	259.1	18.4%
NOI margin (recurring)	%	82.9	85.8	–290bps
EBITDA margin (adjusted)	%	81.4	82.7	–130bps
FFO I margin	%	56.6	62.7	–610bps
AFFO margin	%	28.4	19.2	920bps
Portfolio		30.09.2023	30.09.2022	+/- %
Residential units	number	166,827	166,758	0.0%
In-place rent (l-f-l)	€/sqm	6.55	6.30	+4.0%
Investments (adj.)1	€/sqm	22.32	28.82	–22.6%
EPRA vacancy rate (l-f-l)	%	2.4	2.6	–20bps

Balance sheet		30.09.2023	31.12.2022	+/- %
Investment properties	€m	18,983.3	20,204.4	–6.0%
Cash and cash equivalents2	€m	305.7	362.2	–15.6%
Equity	€m	8,114.4	9,083.9	–10.7%
Total financing liabilities	€m	9,364.9	9,460.8	–1.0%
Net debt3	€m	9,021.9	9,036.6	–0.2%
LTV	%	46.8	43.9	290bps
Average debt maturity4	years	6.6	6.8	–0.2y
Average debt interest cost4	%	1.65	1.26	39bps
Equity ratio	%	40.4	42.5	–210bps
EPRA NTA, diluted	€m	10,195.1	11,377.2	–10.4%
EPRA NTA per share, diluted	€	137.57	153.52	–10.4%

1 Excl. new construction activities on own land, own work capitalised and consolidation effects. 2 Excluding short term deposits of €20.0m as of 9M-2023 (FY-2022: €40.0m). 3 Excl. lease liabilities according to IFRS 16 and incl. short term deposits. 4 Pro-forma as of 11/2023 after refinancing 97% of the 2024 maturities

Strong 9M performance points to upper end of guidance

Cash generation grows further in 2024 – AFFO 2024 to grow to €180 – 200m

• AFFO +54.4% to €176.9m
• Operating Cashflow +18.4% to €306.7m
• FFO I –5.8% to €352.6m
• Adj. EBITDA-Margin 81.4%
• LTV 46.8%
• Debt @ 1.65%1 for 6.6y1
• NTA p.s. €137.57

• Net cold rent +4.5%
• l-f-l rental growth +4.0%
• l-f-l vacancy 2.4% (–20bps)

• SBTi approved well on track on decarbonisation path
• ESG targets for 2024–2027 defined
• All LEG initiatives part of the ZIA Innovations radar 2023, i.e RENOWATE, dekarbo (A2A-heat pump initiative), termios (thermostats/ former seero), Youtilly

New AFFO-guidance 2024 €180-200m

Rising rental growth momentum with 3.2-3.4% expected

Transaction markets remain challenging H2-2023 devaluation of c. 4–6% expected Adaption of LTV target to 45% (medium-term) C. €130m of disposals YTD

Successful refinancings of 2024 maturities Fully refinanced until mid 2025

1 Pro-forma as of 11/2023 after refinancing 97% of the 2024 maturities.

Introducing cash is king in 2022 – Promised and delivered As presented 10 November 2022 Highlights Promised Strengthen operations Rent growth 23e 3.8 – 4.0% Investments 23e €35/sqm Run-off new development Put in run-off in Q4 22 Reduced exposure further by cancellation of projects €117m of cash-Net seller C. 1,600 residential units + non-core commercial units Total proceeds c. €130m Keep focus on innovations Renowate (serial refurbishment) Youtilly (B2B2C) Termios (smart thermostats) … and delivered Strengthen operations Run-off new development Net seller Keep focus on innovations 01 02 03 04 01 02 03 04

outflows remaining

until 2025

Costs on track

Dekarbo (A2A heat pumps) Highlights

Cash remains king – macro picture remains unclear

We remain focussed on cash without jeopardising our growth

Highlights

Cash remains king: AFFO 2023e to AFFO 2024e

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

9M-2023 Results – LEG Immobilien SE 9

Portfolio & Operating Performance 2

Portfolio transactions

Around 1,600 units and commercial units sold YTD at book value for c. €130m

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

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.

Additions

• In Q1 transfer of ownership of one larger portfolio (Düsseldorf and Cologne) signed in 2022
• In Q2 und Q3 nearly all additions from finished new construction projects

Disposals

• Transfer of 831 units at a volume of c. €49m – at around book value in 9Mperiod
• Disposal contracts for around 800 units, signed but not yet transferred, for a volume of (c. €45m )
• Total disposals include four larger portfolios (in total >800 units) and several small ticket sales of non-core units particular in Eastern Germany
• Additional commercial non-core units sold at book value (c. €36m)

Portfolio & Operating Performance

Immediate cash generation via dynamic rent growth

Additional contribution from cost rent adjustment

7.88 7.58 6.61 6.36 6.21 6.03 9M-2023 9M-2022 9M-2023 9M-2022 9M-2023 9M-2022 €/sqm/month Stable +4.0% Higher-yielding +3.1% +3.9% High-growth

• Residential rent increase of 4.0% driven by rent table adjustments and re-letting
• Cost rent increase of 5.5% for the subsidised units contributed 0.8%-pts.
• Free financed rent increased by 3.7% on average
• New rent table examples for LEG: Kiel +15.6%, Münster +13.3%, Dortmund +5.8% (based on local reference rent (OVM))

l-f-l free financed rent development

Capex and Maintenance

Significant reduction in 9M – confirming target of 35€/sqm of investments for 2023

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

• €22.32 and lifts cash generation by c. €70m
• Shift towards AFFO steering leads to lower capitalisation rate² (57% vs 74% 9M-2022) and increased maintenance expenses
• Investments in 9M remained below pro-rata level to achieve guidance of €35/sqm. Capex levels to increase significantly in Q4 with higher expected share of finished work
• Hence €35/sqm investment guidance for FY 2023 reaffirmed
• On track for our CO2 targets despite lower investment volumes
• New construction costs on own land reduced to c. €20m, run-off progressing

Financial Performance 3

Financial highlights 9M-2023

Well on track for our guidance

Net cold rent

EBITDA (adjusted)1

€m

AFFO

Net cold rent

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

Net operating income (recurring)

• Slight increase by 1.0%
• Margin decline from 85.8% to 82.9% driven by higher operating expenses (–€11.6m) e.g. due to higher non-transferable operating and heating costs

EBITDA (adjusted)

Positive effects from other services (+€11.7m), driven by forward sale of green electricity

AFFO

• Driven by reduction of investments by 22.2% to €242.2m from €311.4m
• Partly offset by higher interest expenses (–€12.5m)

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

81.4%

(82.7%)

AFFO Bridge 9M-2023

Close grip on capex spendings drives AFFO up

Portfolio valuation 9M-2023: Sound 4.6% gross yield

Devaluation of c. 4–6% for H2 23 expected – at decreasing momentum and differentiated across markets

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	49,932	7,573	2,299	3.9%	26.0x	383	7,956	6% 5%
Stable Markets	66,760	6,637	1,559	4.8%	20.7x	211	6,847	4%
Higher Yielding Markets	50,135	3,529	1,166	6.0%	16.7x	95	3,623	3% Higher-Yielding Stable 2%
Total Portfolio	166,827	17,739	1,677	4.6%	21.5x	688	18,4271	LEG 1% High-Growth
								0% 2019 2020 2021 H1 2022 2022 9M 2023

1 GAV of IAS 40 portfolio (including leasehold, land value and assets under construction) was €18,983m.

Financial Performance

Pro forma financial profile (as of early November)

loans)

2024 maturities refinanced – next maturities mid 2025

Average debt maturity (pro forma)

Average interest cost (pro forma)

Loan-to-value (30 Sept)

Highlights

• €500m bond redemption, in total financings of €>900m signed at 8.0y for 3.89% cash interest costs with a mix of c.90/10 of secured/ unsecured debt
• Headroom of c. >25% value decline regarding unencumbered asset test
• Secured maturities in 2025 of €566m to be rolled forward or refinanced (first maturities mid 2025)
• Convertible of €400m due as of Sept 1, 2025
• Undrawn RCF's increased to €675m (3y maturity) (prev. €600m)/ CP-programme of €600m
• Strong liquidity of €326m (as at 09/23)2
• Average debt maturity as at 11/23 was 6.6 years with average interest cost of 1.65%
• Interest hedging rate of c.94%
• LTV of 46.8% above new medium-term target level of max. 45%, but comfortably within thresholds for rating of Baa2 (stable)

1 Pro-forma as of 11/2023 after refinancing 97% of the 2024 maturities. 2 Cash and short-term deposits.

Outlook 4

Outlook

Guidance 2023: Strong performance points to upper end of range

Well on track – Q4 with seasonality in capex spending

				Guidance 20231
AFFO			Update:	Upper end of €165m – 180m
Adj. EBITDA margin				c. 80%
l-f-l rent growth				3.8% – 4.0%
Investments				c. 35€/sqm
LTV			Update:	Medium-term target level max. 45%
Dividend				100% AFFO as well as a part of the net proceeds from disposals
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
	2023		4,000 tons CO2	reduction from modernisation projects and customer behavior change
Social	2023–2026			Improve high employee satisfaction level to 70% Trust Index
	2023			Timely resolution of tenant inquiries regarding outstanding receivables
Governance	2023		99% of all other staff holding LEG group companies have completed digital compliance training	85% of Nord FM, TSP, biomass plant,

1 Guidance based on 167 k units.

Outlook

Guidance 2024: 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 tons 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.

LEG additional creditor information

Headroom of >25% value decline for unencumbered asset test

Unsecured financing covenants Financing mix

Covenant	Threshold	9M-2023
Consolidated Adjusted EBITDA / Net Cash Interest	≥1.8x	4.7x1
Unencumbered Assets / Unsecured Financial Indebtedness	≥125%	163.8%
Net Financial Indebtedness / Total Assets	≤60%	45.2%
Secured Financial Indebtedness / Total Assets	≤45%	16.2%

Ratings (Moody's) Key financial ratios

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

	9M-2023	9M-2022
Net debt / adj. EBITDA2	13.9x	14.0x
LTV	46.8%	42.3%
Secured Debt / Total Debt	35.8%	37.6%
Unencumbered Assets / Total Assets	42.2%	41.1%
Equity ratio	40.4%	45.0%

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 capitalized, KPI is 5.2x. 2 Average net debt last four quarters / adjusted EBITDA LTM.

Positive operational trends vs. valuation decline

Strong rent growth and continued vacancy reduction

Market split (GAV)

%

High-growth 42.7 Stable 37.4 Higher-yielding 19.9

In-place rent, l-f-l

Vacancy, l-f-l

Markets

	Total portfolio		High-growth			Stable	Higher-yielding
	9M-2023	 (YOY)	9M-2023	 (YOY)	9M-2023	 (YOY)	9M-2023	 (YOY)
# of units	166,827	0.0%	49,932	+0.8%	66,760	+0.2%	50,135	–0.9%
GAV residential assets (€m)	17,739	–8.8%	7,573	–10.2%	6,637	–8.0%	3,529	–7.2%
In-place rent (sqm), l-f-l	€6.55	+4.0%	€7.36	+4.1%	€6.31	+4.3%	€6.00	+3.4%
EPRA vacancy, l-f-l	2.4%	–20bps	1.5%	–50bps	2.2%	–10bps	4.1%	+10bps

FFO I/ AFFO calculation

€m	9M -2023	9M -2022
Net cold rent	623.5	596.6
Profit from operating expenses	–16.8	–5.2
Personnel expenses (rental and lease)	–79.4	–79.8
Allowances on rent receivables	–14.0	–12.4
Other income (rental and lease)	0.8	3.5
Non -recurring special effects (rental and lease)	2.8	9.0
Net operating income (recurring)	516.9	511.7
Net income from other services (recurring)	23.1	11.4
Personnel expenses (admin.)	–23.0	–20.8
Non -personnel operating costs	–19.1	–20.4
Non -recurring special effects (admin.)	9.4	11.6
Administrative expenses (recurring)	–32.7	–29.6
Other income (admin.)	0.0	0.0
EBITDA (adjusted)	507.3	493.5
Net cash interest expenses and income FFO I	–94.9	–82.4
Net cash income taxes FFO I	–4.6	0.0
Maintenance (externally -procured services)	–63.7	–50.9
Own work capitalised	11.4	16.1
FFO I (including non -controlling interests)	355.5	376.3
Non -controlling interests	–2.9	–2.0
FFO I (excluding non -controlling interests)	352.6	374.3
FFO II (including disposal of investment property)	349.4	373.2
Capex (recurring)	–175.7	–259.7
AFFO (capex -adjusted FFO I)	176.9	114.6

Net cold rent +€26.9m or +4.5 %, mainly from internal growth

Profit from operating expenses Higher operating expenses (–€11.6m) e.g. due to higher non transferable operating and heating costs

Other income (rental and lease) Decline in other income (–€2.7 m) driven mainly by higher non personnel costs

Net income from other services (rec.)

Positive effects from other services (+€11.7m), driven by forward sale of green electricity

Net cash interest expenses Increase (–€12.5m) reflects general interest hike

Investments Increase in externally procured maintenance ( – €12.8m) and considerable decline in capex (+€84.0m) driven by change to AFFO -steering and hence lower capitalisation ratio

Balance sheet

€m	30.09.2023	31.12.2022
Investment property	18,983.3	20,204.4
Other non -current assets	468.5	579.0
Non -current assets	19,451.8	20,783.4
Receivables and other assets	275.4	179.5
Cash and cash equivalents	305.7	362.2
Current assets	581.1	541.7
Assets held for sale	28.8	35.6
Total Assets	20,061.7	21,360.7
Equity	8,114.4	9,083.9
Non -current financing liabilities	8,335.3	9,208.4
Other non -current liabilities	2,225.7	2,491.1
Non -current liabilities	10,561.0	11,699.5
Current financing liabilities	1,029.6	252.4
Other current liabilities	356.7	324.9
Current liabilities	1,386.3	577.3
Total Equity and Liabilities	20,061.7	21,360.7

• Investment property Revaluation: –€1,495.0 m
• Acquisitions/Disposals (net): +€97.8 m
• Capex: +€173.3 m

Other non -current assets

BCP stake (35.7%) included with market value of €217.8 m

Receivables and other assets Increase mainly driven by a decrease in short -term deposits of €20.0m and not yet invoiced operating costs of €87.3 m

• Cash and cash equivalents Operating activities: +€306.7^m (+18.4%)
• Investing activities: – €235.5 m
• Financing activities: – €127.7m (mainly repayment of loans)

Financing liabilities Shift from non-current to current financing liabilities due to change in maturity profile

Loan to Value

Loan to Value (LTV) in %	46.8	43.9
Property values	19,268.6	20,607.5
companies1 Participation in other residential	256.5	306.7
Prepayments for investment properties and acquisitions	–	60.8
Properties held for sale	28.8	35.6
Investment properties	18,983.3	20,204.4
Net Debt	9,021.9	9,036.6
Cash & cash equivalents1	325.7	402.2
Excluding lease liabilities (IFRS 16)	17.3	22.0
Financial liabilities	9,364.9	9,460.8
€m	30.09.2023	31.12.2022

Loan to Value

Increase to 46.8% as at Sept 30, 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 €217.8m based on a share price of €78.98 at Tel Aviv Stock Exchange as at Sept 30, 2023 (€97.19 as at December 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.

EPRA NRV – NTA – NDV

€m	30.09.2023			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)	8,089.3	8,089.3	8,089.3	9,058.6	9,058.6	9,058.6
Hybrid instruments	31.0	31.0	31.0	31.0	31.0	31.0
Diluted NAV (at Fair Value)	8,120.3	8,120.3	8,120.3	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	2,106.7	2,121.3	–	2,371.9	2,371.9	–
Fair value of financial instruments	–41.3	–41.3	–	–78.5	–78.5	–
Goodwill as a result of deferred tax	–	–	–	–	–	–
Goodwill as per the IFRS balance sheet	–	–	–	–	–	–
Intangibles as per the IFRS balance sheet	–	–5.2	–	–	–5.8	–
Fair value of fixed interest rate debt	–	–	1,121.2	–	–	1,208.3
Deferred taxes of fixed interest rate debt	–	–	–236.1	–	–	–643.6
Revaluation of intangibles to fair value	–	–	–	–	–	–
Estimated ancillary acquisition costs (real estate transfer tax)	1,840.0	–	–	1,955.3	–	–
NAV	12,025.7	10,195.1	9,005.4	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 (€)	162.27	137.57	121.52	179.98	153.52	130.27

1 Including RETT (Real Estate Transfer Tax) would result in an NTA of €12,016.6m or €162.15 per share (31.12.2022: €13,332.4m or €179.90 per share).

Income statement

€m	9M-2023	9M-2022	Net operating income
Net operating income	450.3	400.3	 Increased net cold rent (+€26.9m)  Higher operating expenses (–€11.6m)
Net income from the disposal of investment property	–1.2	–1.2	due to higher non-transferable operating and heating costs
Net income from the valuation of investment property	–1,495.0	1,168.4	 Higher maintenance costs (externally procured) (–€12.8m)
Net income from the disposal of real estate inventory	–0.2	0.0	 Positive impact from significantly lower (+€58.7m); depreciation/amortisation
Net income from other services	22.7	10.8	H1-2022 included amortisation of goodwill
Administrative and other expenses	–44.5	–84.8	Net income from valuation  –7.4% devaluation effect as of June 30
Other income	0.1	0.0	Net finance costs 
Operating earnings	–1,067.8	1,493.5	9M-2022 strongly driven by embedded derivatives from the convertible bonds
Net finance costs	–152.7	–10.7	while almost no effect in 9M-2023 (delta: –€148.7m)
Earnings before income taxes	–1,220.5	1,482.8	Income tax expenses  Devaluation of properties lead to lower
Income tax expenses	–250.6	–295.2	potential capital gains in case of disposals and hence to lower deferred
Consolidated net profit	–969.9	1,187.6	taxes  Effective Group tax rate of 21.1% (9M-2022: 20.4%)

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

New construction pipeline further reduced to a total of c. €117m

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

Investment volume per year

Aggregated completions

Aggregated investment volume

LEG's portfolio comprises c. 167,000 units

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

Subsidised units account for around 19% of the portfolio

Reversionary potential amounts to 43% 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 (ytd 2023: c. 1,500)

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.

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

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

Capital costs

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%	+5.5%5

LEG portfolio

Subsidised units (H1-2023)

Location	Number of subsidised units	Average net cold rent month/sqm (€)
High growth markets	11,419	5.76
Stable markets	13,761	5.25
Higher-yielding markets	7,066	4.88
Total subsidised portfolio	33,246	5.35

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 9M 2023

Top locations upcoming rent tables (MSP – Mietspiegel)

Q4-2023 and 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
Duisburg	>100,000	Higher-yielding	5,760	4.3%	simple	11/2021	qualified (bottom-up)	Q4-2023
Dusseldorf	>100,000	High-growth	4,784	3.5%	simple	12/2021	simple (update)	Q4-2023
Gelsenkirchen	>100,000	Higher-yielding	7,001	5.2%	Simple	01/2022	simple (update)	Q1-2024
Wilhelmshaven	> 50,000	Higher-yielding	6,803	5.0%	none	–	qualified (bottom up)	Q1-2024
Bielefeld	>100,000	Stable	2,693	2.0%	qualified	03/2022	qualified (update)	Q1-2024
Bergkamen	< 50,000	Stable	2,285	1.7%	qualified	01/2022	qualified (update)	Q1-2024
Bremen	>100,000	Stable	1,867	1.4%	none	–	qualified (bottom up)	Q1-2024
Essen	>100,000	Stable	3,305	2.5%	qualified	08/2022	qualified (bottom up)	Q3-2024
Brunswick	>100,000	High-growth	1,987	1.5%	qualified	09/2022	qualified (update)	Q3-2024
Bonn	>100,000	High-growth	1,531	1.1%	qualified	06/2022	qualified (bottom up)	Q3-2024
Herne	>100,000	Higher-yielding	2,924	2.2%	simple	01/2023	qualified (bottom up)	Q4-2024
Remscheid	>100,000	Higher-yielding	1,521	1.1%	qualified	12/2022	qualified (bottom up)	Q4-2024

Demand – supply imbalance will persist for the coming years

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

No. of building permissions for apartments with strongest decline within last decade

Appendix

Stimulus measures for German construction 1/3

		LEG VIEW
Depreciation	 6% p.a. on new build for buildings with construction start between 09/2023 and 10/2029, declining balance depreciation method	Limited effect as focus is on tax relief only but does not address structural headwinds from construction costs and financing costs
Energetic standard new built	 EH 40 as a binding legal standard for new built suspended, i.e EH 55 is sufficient. Critical stance towards EPBD to force refurbishments	No material impact; avoids further raising of standards which would foster construction price inflation
Simplification of the construction of affordable living space	 Special provision planned on German Building Code, applicable in tense markets and limited until 12/2026  Federal ministry of construction to provide amendments until year end 2023	No immediate impact. In general lower requirements and simplification of process supportive but not clear who is going to build under high construction costs and high financing costs
Construction of social housing	 €45bn budget until 2027 (€18bn Federal Government, €27bn Federal States)	This is currently a proposal of the government and states need to agree as bulk of costs need to be financed by states. Unclear on terms and conditions and who is going to construct. No quick support for the market. At €3,500 – €4,000/sqm this represents c. 175k – 200k units.
KfW programme "Home ownership for families"	 Max. loan amounts increased by €30k, taxable income threshold for low-interest loans raised to €90k/year	No material impact, as for affordability reasons it mainly addresses families in B, C locations where prices are generally lower and supply/ demand imbalance less severe than in A locations

Stimulus measures for German construction 2/3

		LEG VIEW
Home ownership programme "Young buys old"	 Launch in 2024 and 2025 to support the acquisition of existing buildings in need of refurbishment by young families, programme will be run by KfW	Terms & conditions as well as budget unspecified
Conversion of commercial real estate into residential	 KfW funding programme with a total volume of €480m to be launched in 2024 and 2025	No material impact given small budget and technical complexity to transfer office into residential buildings
Building type E	 E for experimental, leeway for innovative planning, also by deviating from cost-intensive standards; Federal Government will provide a guideline and process recommendation	Details unclear as of today. Guidelines for type E buildings to be released until year end 2023. More a sandbox exercise than ready to implement solution
Sale of BImA-owned land at discount	 Federal Agency for Real Estate Tasks (BImA) will extend its programme of selling own land at a discount until year end 2029 to promote public purposes and social housing	Current programme with no/ little impact on construction activities. No material effect from extension of programme expected
Guidelines for noise protection	 In the Technical Instructions on Noise, the Federal Government will use an experimental clause to raise the noise values when residential buildings are close to commercial operations	Brings down requirements and supports new construction in general – however no immediate effect

Stimulus measures for German construction 3/3

Subsidies for new heating systems and speed bonus	 Subsidies in a range of 30%–75%, depending on individual income  Additional Speed Bonus of 25% (2024–2025), 20% (2026), 15% (2027) – also available for professional landlords/ resi companies  Energy efficient modernisation: subsidies and tax depreciation are to be raised to 30% each (declining again from 2026 in line with speed bonus)	Positive impact for LEG as it supports LEG's decarbonisation strategy and improves cash generation Subsidies scheme not yet finally passed by parliament
Promotion of owner occupied housing	 Mainly through reduction of ancillary acquisition costs. The Federal Government wants to allow the Federal States more flexibility in structuring the real estate transfer tax (e.g. by means of an allowance). In return, an extended taxation of share deals is being examined	States would lose individual income, therefore ongoing discussions on state and federal level. Some support on ancillary acquisition costs but no material impact expected as construction and financing costs remain high
Speed-up planning, approval and implementation	 Building permits can be considered granted following three months fictitious approval time (until 2026)  Once serial and modular construction types have been approved in one federal state, they are valid nationwide and are mutually recognized without restriction  The use of attics for residential purposes will be exempt from approval	No immediate impact, however less bureaucracy and nation-wide serial construction ability in general supportive; support at the municipal level is crucial
Launch of new housing community benefit scheme	 New non-profit housing market segment for rent-restricted units in new built and existing properties promoted by investment subsidies and tax benefits	No immediate impact. No details on budget, funding and timeline provided

LEG VIEW

Source: Savills/ destatis

Breakdown German residential market A highly fragmented market – dominated by private owners

Professional owners 34%

Appendix

66% Private owners

Affordability of living

Increase of LEG rents vs. income growth

LEG rents vs. income (illustrative examples)

Source: LEG, ALDI Nord, Rewe; Verdi, IG Metall, destatis, Federal Ministry for Labor and Social Affairs, DGB regarding citizen benefit example (https://www.dgb.de/themen/++co++ef171378-cbfb-11ea-af64-001a4a160123 ), * eligible for citizen's benefit

1 As at 10/2023

Among the best in class

Upgrade to AAA rating by MSCI

SBTi: Approved near-term science based targets

Capital market financing Corporate bonds

Maturity	Issue Size	Maturity Date	Coupon	Issue Price	ISIN	WKN
2017/2024	€500m			Exercise of call option as at 23 October 2023
2019/2027	€500m	28 Nov 2027	0.875% p.a.	99.356%	DE000A254P51	A254P5
2019/2034	€300m	28 Nov 2034	1.625% p.a.	98.649%	DE000A254P69	A254P6
2021/2033	€600m	30 Mar 2033	0.875% p.a.	99.232%	DE000A3H3JU7	A3H3JU
2021/2031	€700m1	30 Jun 2031	0.750% p.a.	99.502%	DE000A3E5VK1	A3E5VK
2021/2032	€500m	19 Nov 2032	1.000% p.a.	98.642%	DE000A3MQMD2	A3MQMD
2022/2026	€500m	17 Jan 2026	0.375% p.a.	99.435%	DE000A3MQNN9	A3MQNN
2022/2029	€500m	17 Jan 2029	0.875% p.a.	99.045%	DE000A3MQNP4	A3MQNP
2022/2034	€500m	17 Jan 2034	1.500% p.a.	99.175%	DE000A3MQNQ2	A3MQNQ
			Adj. EBITDA/ net cash interest ≥ 1.8x
Financial Covenants			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

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 €2.76 (2017/2025 convertible) and €3.60 (2020/2028 convertible).

LEG share information

Share (7.11.2023; indexed; in %; 1.2.2013 = 100)

Appendix

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 3.5% (30.9.2023) EPRA Developed Europe 2.9% (30.9.2023)

Basic data Shareholder structure1

Share price and market capitalisation since IPO

Appendix

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 visithttps://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