LEG Immobilien SE

Investor Presentation • Nov 10, 2022

LEG Immobilien SE 9M-2022 Results

10 November 2022 9M-2022

9M-2022 Results

Agenda

5

• 1 Highlights 9M-2022
• 2 Portfolio & Operating Performance
• 3 Financial Performance
• 4 Outlook
  • Appendix

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 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.

Highlights 9M-2022

1

Financial Summary 9M-2022

				+/–
Operating results	9M-2022	9M-2021	%/bps
Net cold rent	€m	596.6	509.7	+17.0%
Adjusted net rental income	€m	476.9	420.0	+13.5%
EBITDA adjusted	€m	458.7	400.6	+14.5%
FFO I	€m	374.3	334.2	+12.0%
FFO I per share	€	5.11	4.62	+10.6%
FFO II	€m	373.2	332.0	+12.4%
AFFO	€m	114.6	104.2	+10.0%
EBITDA margin (adj.)	%	76.9	78.6	–170bps
FFO I margin	%	62.7	65.6	–290bps
Portfolio		30.09.2022	30.09.2021	+/– %/bps
Residential units	number	166,758	145,656	+14.5%
In-place rent (l-f-l)	€/m2	6.32	6.12	+3.2%
Capex (adj.)1	€/m2	21.25	22.13	–4.0%
Maintenance (adj.)1	€/m2	7.57	7.50	+1.0%
EPRA vacancy rate (l-f-l)	%	2.1	2.5	–40bps

				+/–
Balance sheet		30.09.2022	31.12.2021	%/bps
Investment properties	€m	20,829.8	19,067.7	+9.2%
Cash and cash equivalents2	€m	310.2	675.6	–54.1%
Equity	€m	10,038.9	8,953.0	+12.1%
Total financing liabilities	€m	9,460.6	8,885.1	+6.5%
Current financing liabilities	€m	198.6	1,518.1	–86.9%
Net debt3	€m	8,987.8	8,112.1	+10.8%
LTV4	%	42.3	42.1	+20bps
Equity ratio	%	45.0	43.6	+140bps
EPRA NTA, diluted	€m	12,095.5	11,149.1	+8.5%
EPRA NTA per share, diluted	€	163.21	146.10	+11.7%

1 Excl. new construction activities on own land, backlog measures, own work capitalised and margin of LWSPlus; pls see Appendix. 2 Excluding short term deposits.

3 Excl. lease liabilities according to IFRS 16 and incl. short term deposits. 4 Since Q1-2022 calculation adapted to market standard: inclusion of short-term deposits and participation in other residential companies.

Financials and operations well on track despite strong headwinds

Transaction markets start to reflect new interest rate environment

• FFO I +12.0% to €374.3m
• FFO I p.s +10.6% to €5.11
• AFFO +10.0% to €114.6m
• Adj. EBITDA-Margin 76.9%
• LTV 42.3%¹
• Debt @ 6.8y for 1.26%
• NTA ps €163.21

• Net cold rent +17.0%
• l-f-l rental growth +3.2%
• l-f-l vacancy 2.1% (–40bps)

• with first serial refurbishment project and first external order: 47 LEG flats in Mönchengladbach to benefit from lower warm rent
• Top employer in Germany: Great Place to work survey 2022 increases Trust index further to 73% from 66% (German average 62%)
• Strong Customer Satisfaction Index Significant improvement to 60.1% (Q3 22) from 53.8% (initial survey 2020)

9M-2022

Investors sit on their hands due to high uncertainty

Transaction market volumes contracted strongly

Valuations being negatively impacted by strong interest rate increase Valuation decline for H2/2022 expected to be 3% – 5%

Focus on liquidity and capital structure

Dividend 2022 subject to market environment

Headwinds being reflected in adjusted guidance FFO I range narrowed to €475m – €485m for 2022

German real estate residential market

Structural drivers remain intact and will further increase higher demand for affordable housing

Supply

• New development pipeline to dry out
• Order intake new construction Aug 22 y/y –15.6%
• New building permissions Aug 22 y/y –9.4%
• Construction costs Aug 22 y/y +16.5%
• Environmental requirements erase affordable development. Construction costs for efficiency house standard 40 (mandatory from 2025 onwards) to start at >5,000€/sqm)
• 400k government target for new units p.a. completely unrealistic

Demand

• Population growth outgrew new built apartments in the last 10 years
• Especially demand for the affordable segment to grow further, driven by:
• Immigration
• Refugees from Ukraine (until end of August net immigration of 874,000 people)
• Consumer price inflation (+10.4% Oct y/y)1
• Potential recession
• Unaffordability of condos

STATUS QUO Fully rented out market in the affordable segment

Vacancy LEG: 2.1% (lfl)

Structural deficit of number of apartments c. 1.5m – 2.0m 2

A challenging environment

Leading to a re-positioning of business model

Surge in interest rates – 10Y BUND yield

LEG bond yield 2021/32, 1.0% coupon

Broadly stable spreads for LEG secured debt

• Cost of capital significantly increased
• Preferred debt financing tool at current market situation: secured loans current capacity of €1bn 1.5bn
• Dislocation of financing markets also affects transaction markets with little volume overall, small number of transactions only and only small portfolios being traded
• Unclear when and where interest rates find new equilibrium level and following that, transaction markets open up again

Cash is King (1/2)

Focusing on improvement of resilience and cash position for the current environment

Cash is King (2/2)

Shift of internal steering to cash and a more defensive set-up

External guidance to reflect internal cash focus

AFFO as cash proxy instead of FFO I

Dividend based on 100% AFFO as well as a part of the net proceeds from asset sales – subject to environment

Remuneration system to be adapted to AFFO p.s.

AFFO

Advantage

• Already introduced as industry KPI
• Focus on cash generation and distributable cash in a more defensive set-up

Disadvantage

• Requires internal and external shift from a pure investment view to a cash view
• Negative accounting effects on FFO I due to lower capitalization rates

Portfolio transactions

More than 5,000 units in the marketing process for sale

Additions 617 782 20,567 21,966 407 390 177 974 Divestments -255 18 34 307 254 104 47 405 Change 362 764 20,533 21,659 153 286 130 569 166,758 144,892 764 20,533 166,189 153 286 130 30.06.2021 Q3 2021 Q4 2021 31.12.2021 Q1 2022 Q2 2022 Q3 2022 30.09.2022

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.

Disposals

• 405 units disposed as of Q3 at book value
• More than 5,000 units in the marketing process
• Marketing still focussed on higher-yielding assets
• €100–200m of targeted sales volume with expected signing in 2022, i.e. majority not included in guidance

Acquisitions

No more acquisitions at present

Strong catch-up in rent growth in Q3 On track for target level of ~3.0%

6.32 6.12 6.73 6.47 9M-2022 9M-2021 9M-2022 9M-2021 l-f-l rent development €/m2/month +3.9% Free financed rent +3.2% Residential rent Rent table +2.0% Modernisation/ +1.2% Re-letting

7.76 7.46 6.42 6.18 6.10 9M-2022 9M-2021 9M-2022 9M-2021 9M-2022 €/m2/month Stable +3.8% Higher-yielding +3.9% +4.0% High-growth

• Strong impact from rent table adjustments in Q3 drives in-place rent growth to 3.2% after 2.6% as of H1
• L-f-l rental growth for FY 2022 confirmed at c.3.0% due to y/y effects in Q4
• Strong increase of free financed rent with 3.9% equally driven by all market segments

l-f-l free financed rent development

Ongoing positive trends across all KPIs and market clusters

Further vacancy reduction to 2.1% confirms LEG's strong positioning in a demand-driven market

Market split (GAV)

%

High-growth 43.4 Stable 37.1 Higher-yielding 19.5

In-place rent, l-f-l €/m2 High-growth

Vacancy, l-f-l

%

7.13

Markets

	Total portfolio	High-growth		Stable		Higher-yielding
	9M-2022	 (YOY)	9M-2022	 (YOY)	9M-2022	 (YOY)	9M-2022	 (YOY)
# of units	166,758	+14.5%	49,519	+16.5%	66,629	+9.6%	50,610	+19.5%
GAV residential assets (€m)	19,447	+26.5%	8,432	+28.4%	7,211	+25.0%	3,804	+25.3%
In-place rent (m2 ), l-f-l	€6.32	+3.2%	€7.13	+3.2%	€6.05	+3.1%	€5.82	+3.4%
1 EPRA vacancy, l-f-l	2.1%	–40bps	1.4%	–30bps	2.0%	–60bps	3.0%	–70bps

1 Current EPRA vacancy rate, i.e. including recent acquisitions was 2.9% for the total portfolio.

Capex and Maintenance

Slow down of spending in a rising cost and interest rate environment – €42/sqm for FY2022 exp.

• Increase of total investments by 14.9% y-o-y driven by portfolio growth (+14.5% in units)
• Investments per sqm declined by c.15% vs. original planning of €46-48/sqm, aiming now for €42/sqm
• Quick adjustment of entire organisation to lower spending budgets possible due to
  • Low insourcing ratio
  • Swift renegotiation of prices with suppliers
• On track to reach full year target of 4,000 tons CO2 reduction
• Investment into energy efficiency measures of €97m
• Increase in new construction and others (not part of LEG's investment/sqm guidance) driven by milestone payments of new construction activities – small in group context and limited exposure going forward (see slide 28)

1 Excl. new construction activities on own land, backlog measures, own work capitalised and LWS Plus margin. For further details see appendix.

Effects of lowered investment levels on capitalization rate/p&l

Focus on cash instead of accounting effects

1 Rounded numbers for 2022e and 2023e.

Significant reduction of investments in 2023

New steering methodology requires view on total investment

1 Excl. new construction activities on own land, backlog measures, own work capitalised and LWS Plus margin. Others includes work capitalised (capex relevant) as well as the LWS Plus margin (not capex relevant). Rounded numbers

• Reduction of adjusted investments from €450–470m (€42/sqm) to €380–390m (€35/sqm)
• New steering requires view on total investment spent
  • Capex & Maintenance remain core
  • New development will run down until 2025
• Maintenance increase driven by lower capitalization rate
• CO2 reduction target for 2023 remains stable as lower modernisation capex will be offset via nudging initiatives towards tenants and smart metering initiatives
• Continue to enable innovation, subsidised loans not reflected in

Financial Performance 3

Financial highlights 9M-2022 On track for guidance

Net cold rent

Adjusted EBITDA

Adjusted net rental and lease income

Well on track for margin target

• Strong increase in net cold rent through acquisitions but also organic growth
• Services continue their positive contribution
• Adjusted EBITDA margin of 76.9% down 170 bps yoy, mainly due to lower margin of portfolios acquired in 2021. Improvement in comparison to 74.8% in H1-2022
• Positive impact in Q3 from lower maintenance ratio, strong contribution of Services business and lower personnel cost ratio in admin
• Higher provisioning for not yet invoiced operating costs to cover potential shortfall in payments
• On track for FY 2022 EBITDA margin target of ~75%

FFO I ps 9M-2022: €5.11 (+10.6%)

Financial Performance

FFO Bridge 9M-2022

Strong contribution from acquisitions and rent growth

Portfolio valuation 9M-2022

Residential Units	GAV Residential Assets (€m)	GAV/ m2 (€)	Gross yield	In-Place Rent Multiple	GAV Commercial/ Other (€m)	Total GAV (€m)
49,519	8,432	2,591	3.3%	30.7x	350	8,781
66,629	7,211	1,695	4.3%	23.5x	231	7,442
50,610	3,804	1,241	5.4%	18.4x	107	3,911
166,758	19,447	1,839	4.1%	24.7x	688	20,1351

1 GAV of IAS 40 portfolio (including leasehold, land value and assets under construction) was €20,830m.

Well balanced financial profile

Weighted avg. interest (excl. subsidised loans)

1.97% 1.51% 1.42% 1.10% 1.54% 1.01% 1.09% 1.80% 0.87% 1.00% 0.82% 1.62%

No significant maturities until 2024

Average debt maturity

years
9M-2022	6.8
9M-2021	7.4

Average interest costs

1.26 9M-2022

1.23 9M-2021

Loan-to-value

%

1 Since Q1-2022 calculation adapted to market standard: inclusion of short-term deposits and participation in other residential companies. 2 Average net debt last four quarters / EBITDA LTM.

Highlights

• €200m secured loan financings agreed in in July (2.3%, 5-year term). Remaining secured headroom of c.€1bn – 1.5bn
• Increased RCF to €600m in mid October (previously: €400m)/ CP-programme of €600m
• Average debt maturity at 6.8 years
• Average interest costs increase by 3 bps vs. 9M-2021
• Interest hedging rate of 93.7%
• No significant maturities until 2024. Monitoring the market closely and act opportunistically
• Medium term commitment to deleveraging depending on valuation and progress of sales programme
• LTV below max. medium-term target level of 43%
• Net debt/EBITDA of 15.2x as at end of September2

Outlook 4

Outlook

Guidance 2022: FFO I confirmed at a more narrow range

		Old guidance 2022		guidance for 2022 Updated
FFO I		€475m – 490m		€ 475m 485m –
l-f-l rent growth		c. 3.0%		c. 3.0%
EBITDA margin		c. 75%		c. 75%
Investments		Less than 46€/sqm c. ( prev. 46 – 48€/sqm)	/sqm 42€ c.
LTV		max. 43%	Medium-term target level max. 43%
Dividend		70% of FFO I	70% of FFO I – subject further market development to
Acquisitions		Highly selective due to capital market environment		Stopped of October 1 2022 as ,
Disposals		Not reflected in guidance: up to 5,000 units		Not reflected in guidance: up to 5,000 units
Environment	2022–2025 2022	Reduction of CO emissions by 10% based on CO e kg/sqm 2 2 4,000 tons CO reduction from modernisation projects 2	2022–2025 2022	Reduction of CO emissions by 10% based on CO e kg/sqm 2 2 4,000 tons CO reduction from modernisation projects 2
Social	2022–2025 2022	Improve Customer Satisfaction Index (CSI) to 70% Maintain high employee satisfaction level (66% Trust Index)	2022–2025 2022	Improve Customer Satisfaction Index (CSI) to 70% Maintain high employee satisfaction level (66% Trust Index)
Governance	2022	Maintain Sustainalytics rating within the negligible risk range (<10)	2022	Maintain Sustainalytics rating within the negligible risk range (<10)

Outlook

Guidance 2023: Focus on AFFO

		Guidance 20231
AFFO2		€ 110m – 125m
Adj. EBITDA margin3		c.78%
l-f-l rent growth		3.3% – 3.7%
Investments	c. 35€/sqm
LTV		Medium-term target level max. 43%
Dividend	100% AFFO as well as a part of the net proceeds from disposals – subject to further market development
Disposals		Not reflected1
Environment	2023–2026 2023	Reduction of persistent relative CO e emission saving costs in €/ton by 10% achieved by 2 permanent structural adjustments to LEG residential buildings 4,000 tons CO reduction from modernisation projects 2 and customer behavior change
Social	2023–2026 2023	Improve high employee satisfaction level to 70% Trust Index Timely resolution of tenant inquiries regarding outstanding receivables
Governance	2023	85% of Nord FM, TSP, biomass plant, 99% of all other staff holding LEG group companies have completed digital compliance training

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; currently no such projects are planned; if those projects are contracted, these will be reported separately. 3. Adjusted for maintenance (externally-procured services), internally procured and capitalized services and non-recurring special effects.

Appendix 5

Bridge FFOI 2022e to AFFO 2023e

28 9M-2022 Results – LEG Immobilien SE

Appendix

New construction pipeline

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

Investment volume per year

1 Incl. acquisition of land 2 Incl. development Cologne-Ehrenfeld on acquired land

Aggregated

Aggregated investment volume

LEG's portfolio comprised c. 166,800 units end of Q3

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

Total portfolio1 (c. 166,800 units)

Outside North Rhine-Westphalia

Growth along our investment criteria

• Asset class affordable living
• Entry in new markets outside NRW via orange and green markets

1,000 units per location

Critical size in locations outside NRW reached, allowing for growth into higher-yielding markets

Appendix

Expanding the value chain and positioning as solution provider Renovate NOW – ReNOWate

Product

Company

• Renowate to provide comprehensive, serial, energetic refurbishment solutions
• 'One stop shop': measuring, planning, production and installation provided internally
• Key goals: reduction of modernization time and cost
• Refurbishment of 47 units (KfW 55) in Mönchengladbach started in July. Approach to be tested on more than 10 LEG pilot projects in 2022/2023 (more than 200 units)

Innovative five steps process of serial energetic renovation clearly differentiates from competitors

STEP 2

Transfer to a digital twin (BIM principle) and integral planning of all services

Status Quo

• 50:50 joint venture with the Rhomberg Group, an internationally operating and innovative family-owned construction company
• Offices in Düsseldorf und Bregenz
• Product to be offered to third parties after trial phase providing investment-light growth opportunity; first project sold to third party
• As of 05/22: 10 employees (incl. management)

Appendix

Subsidised units

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

Cost rent components2
Management costs	Capital costs
 Depreciation	 Financing costs
 Operating costs
 Loss of rental income risk
 Administration costs  Maintenance costs	CPI - linked

Calculation for LEG's subsidised portfolio

+4.8 cost rent adjustment in January 2023

		122		since 01/2020	adjustm. 01/2023
	+15% (applied to		Administration costs4 per unit/year	298.41	+15%
106.1	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 20193 Oct	Oct	CPI index 20223

Historic view

Impact on cost rent adjustment at LEG

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

LEG portfolio

Subsidised units (Q3-2022)

Location	Number of subsidised units	Average net cold rent month/sqm (€)
High growth markets	11,459	5.41
Stable markets	14,612	4.97
Higher-yielding markets	7,221	4.59
Total subsidised portfolio	33,292	5.05

1 CPI development from October 2019 (index = 106.1) to October 2022 (index = 122, provisional figure acc. to Federal Statistical Office). 2 Legal basis for calculation: II. Berechnungsverordnung. 3 Basis 2015 = 100. 4 Administration and maintenance costs are lump sums.

Valuation framework

Frequency Valuation Date	Semi-annually 30 June - (cut off for data 31 March) 31 December - (cut off for data 30 September)	Same as LEG
Scope	Complete portfolio incl. commercial units, parking spaces, including land	Complete portfolio incl. commercial units, parking spaces, excluding land
Valuation Level	Address-specific (building entrance level)	Economic units (homogeneous cluster of adjacent buildings with similar construction date and condition) provided by LEG
Technical Assessment	Physical review of 20% of the portfolio as part of technical reviews, data updates in EPIQR (data base for technical condition of buildings)	Every economic unit has been inspected at least once Rolling annual inspections, especially of new acquisitions and modernised properties Additional information on change of condition provided by LEG
Model	10 year DCF model, terminal value in year 11, finite Assumption that buildings have a finite life (max. 80 years), decrease in value over a building's life Residual value of land at the end of building's life Cap rate1 increased to reflect the decrease of a building's value over its lifetime	10 year DCF model, terminal value in year 11, infinite No separate valuation of plot size/ value of land Exit cap rate based on market evidence
Calculation of Discount-/Cap-Rate	Determination based on data from expert committees (publicly appointed surveyor boards) plus property specific premiums and discounts	Consistent DCF model for all 402 cities/districts and all clients plus property specific premiums and discounts. Results cross-checked with market data (local land valuation boards, asking prices, own transaction data base)
Inclusion of legislation (e.g. rental brake)	Yes, via cash-flow	Yes, via cash-flow
Relevance for Audit of Financial Statements	Yes, model and results audited by the Auditor	No, second opinion for validation only

LEG CBRE (Appraiser since IPO in 2013)

EPRA NRV – NTA – NDV

€m	30.09.2022		31.12.2021
	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)	10,013.6	10,013.6	10,013.6	8,927.9	8,927.9	8,927.9
Hybrid instruments	29.9	29.9	29.9	455.7	455.7	455.7
Diluted NAV (at Fair Value)	10,043.5	10,043.5	10,043.5	9,383.6	9,383.6	9,383.6
Deferred tax in relation to fair value gains of IP and deferred tax on subsidised loans and financial derivatives	2,377.1	2,364.7	–	2,056.5	2,044.8	–
Fair value of financial instruments	–104.3	–104.3	–	95.2	95.2	–
Goodwill as a result of deferred tax	–203.7	–203.7	–203.7	–267.3	–267.3	–267.3
Goodwill as per the IFRS balance sheet	–	–	–	–	–103.4	–103.4
Intangibles as per the IFRS balance sheet	–	–4.7	–	–	–3.8	–
Fair value of fixed interest rate debt	–	–	1,330.6	–	–	–307.4
Deferred taxes of fixed interest rate debt	–	–	–271.7	–	–	59.5
Revaluation of intangibles to fair value	–	–	–	–	–	–
Estimated ancillary acquisition costs (real estate transfer tax)	2,017.7	–	–	1,843.9	–	–
NAV	14,130.3	12,095.5	10,898.7	13,111.9	11,149.1	8,765.0
Fully diluted number of shares	74,109,276	74,109,276	74,109,276	76,310,308	76,310,308	76,310,308
NAV per share (€)	190.67	163.21	147.06	171.82	146.10	114.86

1 Including RETT (Real Estate Transfer Tax) would result into an NTA of €14,100.4m or €190.26 per share.

Appendix

FFO calculation

€m	9M -2022	9M -2021
Net cold rent	596.6	509.7
Profit from operating expenses	–5.2	–0.5
Maintenance (externally -procured services)	–50.9	–43.6
Staff costs	–79.8	–61.5
Allowances on rent receivables	–12.4	–5.8
Other	19.6	17.2
Non -recurring special effects (rental and lease)	9.0	4.5
Recurring net rental and lease income	476.9	420.0
Recurring net income from other services	11.4	7.1
Staff costs	–20.8	–20.1
Non -staff operating costs	–20.4	–13.8
Non -recurring special effects (admin.)	11.6	7.4
Recurring administrative expenses	–29.6	–26.5
Other income and expenses	0.0	0.0
Adjusted EBITDA	458.7	400.6
Cash interest expenses and income	–82.4	–64.1
Cash income taxes from rental and lease	–	–0.7
FFO I (including non -controlling interests)	376.3	335.8
Non -controlling interests	–2.0	–1.6
FFO I (excluding non -controlling interests)	374.3	334.2
FFO II (including disposal of investment property)	373.2	332.0
Capex	–259.7	–230.0
Capex -adjusted FFO I (AFFO)	114.6	104.2

Net cold rent

-2021

+€86.9m or +17.0% driven by portfolio growth (+€72.5m) and organic growth (+€14.4m)

Maintenance

Increase through portfolio growth

Staff costs

Growth in staff costs due to additional 269 FTE's in operations, esp. from Adler portfolio and related facility management company (LEG Nord FM)

Allowances on rent receivables

Increase driven by higher provisions for not yet invoiced operating costs

Recurring administrative expenses

Slightly higher headcount (+13 FTEs), general cost increases

Cash interest expenses

Increase in average interest costs by 3 bps and higher volume of financial debt

Balance sheet

€m	30.09.2022	31.12.2021
Investment property	20,829.8	19,067.7
Other non -current assets	797.0	617.8
Non -current assets	21,626.8	19,685.5
Receivables and other assets	339.8	155.6
Cash and cash equivalents	310.2	675.6
Current assets	650.0	831.2
Assets held for sale	31.2	37.0
Total Assets	22,308.0	20,553.7
Equity	10,038.9	8,953.0
Non -current financing liabilities	9,262.0	7,367.0
Other non -current liabilities	2,458.8	2,335.0
Non -current liabilities	11,720.8	9,702.0
Current financing liabilities	198.6	1,518.1
Other current liabilities	349.7	380.6
Current liabilities	548.3	1,898.7
Total Equity and Liabilities	22,308.0	20,553.7

Investment property (among others)

• Valuation: +€1,168.4m
• Acquisitions: +€364.3m
• Capex: +€257.7m

Other non -current assets

• BCP stake at market value of €317.0m
• Goodwill adjustment Adler portfolio (–€67.6m)
• Complete goodwill amortisation of all CGU excl. Adler portfolio ( –€99.6m)
• New HQ +€59.8m

Receivables and other assets

• Short term deposits (+€70.0m)
• Receivables due from tenants (€86.4m; +€38.1 vs. FY 2021)

Cash and cash equivalents

• Operating activities: +€259.1m
• Investing activities: –€984.7m
• Financing activities: +€360.2m (+€1,482.4m bond issuance; +€501.1m loans; –€1,428.7m repayment of bridge loan acquisition; –€183.3m cash dividend)

Appendix

Loan to Value

€m	30.09.2022	31.12.2021
Financial liabilities	9,460.6	8,885.1
Excluding lease liabilities (IFRS 16)	22.6	27.4
Cash & cash equivalents1	450.2	745.6
Net Debt	8,987.8	8,112.1
Investment properties	20,829.8	19,067.7
Properties held for sale	31.2	37.0
Prepayments for investment properties and acquisitions	21.9	23.4
companies1 Participation in other residential	350.7	119.2
Prepayments for business combinations	–	1.8
Property values	21,233.6	19,249.1
Loan to Value (LTV) in %	42.3	42.1

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 into property values. The figures as at 31.12.2021 have been adjusted accordingly.

Loan to Value

• With 42.3% similar level as of FY-2021
• Maximum target of 43% met

Investments in other residential companies

Increase vs. year end 2021 due to higher stake in BCP. BCP is included with a value of €317.0m based on a share price of €114.97 at Tel Aviv Stock Exchange as at September 30 Appendix

Income statement

€m	9M-2022	9M-2021
Net rental and lease income	400.3	407.3
Net income from the disposal of investment property	–1.2	–0.7
Net income from the valuation of investment property	1,168.4	1,119.8
Net income from the disposal of real estate inventory	0.0	–0.1
Net income from other services	10.8	4.8
Administrative and other expenses	–84.8	–36.8
Other income	0.0	0.0
Operating earnings	1,493.5	1,494.3
Net finance costs	–10.7	–75.7
Earnings before income taxes	1,482.8	1,418.6
Income tax expenses	–295.2	–278.1
Consolidated net profit	1,187.6	1,140.5

Net rental and lease income

Decline driven by goodwill amortisation (€58.9m). Adjusted NRI +13.6%

Net income from other services

Relates to biomass plant, increase due to higher energy sales revenues

Administrative and other expenses

Impact from goodwill amortisation (€40.7m)

Net finance costs

• €18.9m increase in interest expenses mainly due to issue of corporate bonds
• –€53.3m impact from valuation of BCP at fair value
• +€150.0m impact from measurement of derivatives linked to the convertible bonds (yoy: +€143.5m)

Income tax expenses

Slight increase in the effective tax rate from 19.4% to 20.4%

Cash effective interest expense

€m	9M-2022	9M-2021
Reported interest expense	103.4	84.5
Interest expense related to loan amortisation	–18.1	–12.5
Interest costs related to valuation of assets/liabilities	–0.1	–0.1
Interest expenses related to changes in pension provisions	–0.9	–0.5
Other interest expenses	–1.9	–7.2
Cash effective interest expense (gross)	82.4	64.1
Cash effective interest income	0.0	0.0
Cash effective interest expense (net)	82.4	64.1

Reported interest expense

Increase driven by growth in financing liabilities in connection with the portfolio growth

Interest expenses from loan amortisation

Expenses in connection with the issue of bonds in 2021

Other interest expenses

One-time-effects in the previous year, e.g. prepayment costs

Cash effective interest expense

Interest coverage of 5.57x (9M-2021: 6.25x)

Investments

Reconciliation from investments to adjusted investments

€m	9M-2022	9M-2021
Maintenance	84.8	70.9
Adjusted maintenance	81.9	70.9
Capex	269.6	237.6
Thereof LWS Plus effect	9.9	7.6
Thereof public safety measures in connection with acquisitions	2.4 17.0 10.8	1.6 7.7 11.6
Thereof new construction
Thereof capitalisation of own services
Adjusted capex	229.6	209.1
Total investments	354.4	308.5
Adjusted total investments	311.4	280.0
Area of investment properties (million sqm)	10.81	9.45
Adjusted investment per sqm (€)	28.82	29.63

• Capex in FFO-table to calculate the AFFO corresponds to total capex minus LWSPlus effect
• The line item maintenance for net rental and lease income calculation includes only maintenance work done by external companies (€50.9m). The delta to the €84.8m is shown under staff costs

Refinancing of subsidised loans lifting value

Rent potential subsidised units

• Until 2028, around 21,000 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 65% of units to come off restriction until 2028

37 1,347 784 944 181 1,156 16,575 1,286 ^{618 355} 10,009 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032ff.

Spread to market rent

€/m2/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 = 2022-2026; 6-10 years = 2027-2031; >10 years = 2032ff. 3 Rent upside is defined as the difference between LEG in-place rent and market. 4 For example rent increase cap of 11% (tense markets) or 20% for three years.

Number of units coming off restriction and rent upside

LEG additional creditor information

Unsecured financing covenants Financing mix

Covenant	Threshold	9M-2022
Consolidated Adjusted EBITDA / Net Cash Interest	≥1.8x	5.4x
Unencumbered Assets / Unsecured Financial Indebtedness	≥125%	181%
Net Financial Indebtedness / Total Assets	≤60%	41%
Secured Financial Indebtedness / Total Assets	≤45%	15%

Type	Rating	Outlook
Long Term Rating	Baa1	Stable
Short Term Rating	P-2	Stable

Ratings (Moody's) Key financial ratios

	9M-2022	9M-2021
Net debt / EBITDA1	15.2x	11.4x
LTV	42.3%2	38.0%
Secured Debt / Total Debt	38%	45%
Unencumbered Assets / Total Assets	41%	36%

1 Average net debt last four quarters / EBITDA LTM 2 Since Q1-2022 calculation adapted to the current standard practices, i.e. reduction of net debt by short-term deposits and inclusion of participation in other residential companies into property values.

Appendix

Capital market financing Corporate bonds

Maturity	Issue Size	Maturity Date	Coupon	Issue Price	ISIN	WKN
2017/2024	€500m	23 Jan 2024 (7 yrs)	1.250% p.a.	99.409%	XS1554456613	A2E4W8
2019/2027	€500m	28 Nov 2027 (8 yrs)	0.875% p.a.	99.356%	DE000A254P51	A254P5
2019/2034	€300m	28 Nov 2034 (15 yrs)	1.625% p.a.	98.649%	DE000A254P69	A254P6
2021/2033	€600m	30 Mar 2033 (12 yrs)	0.875% p.a.	99.232%	DE000A3H3JU7	A3H3JU
2021/2031	€600m	30 Jun 2031 (10 yrs)	0.750% p.a.	99.502%	DE000A3E5VK1	A3E5VK
2021/2032	€500m	19 Nov 2032 (11 yrs)	1.000% p.a.	98.642%	DE000A3MQMD2	A3MQMD
2022/2026	€500m	17 Jan 2026 (4 yrs)	0.375% p.a.	99.435%	DE000A3MQNN9	A3MQNN
2022/2029	€500m	17 Jan 2029 (7 yrs)	0.875% p.a.	99.045%	DE000A3MQNP4	A3MQNP
2022/2034	€500m	17 Jan 2034 (12 yrs)	1.500% p.a.	99.175%	DE000A3MQNQ2	A3MQNQ
Adj. EBITDA/ net cash interest ≥ 1.8 x Unencumbered assets/ unsecured financial debt ≥ 125% Financial Net financial debt/ total assets ≤ 60% Covenants Secured financial debt/ total assets ≤ 45%

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)	0.4% p.a. (semi-annual payment: 15 January, 15 July)
# of shares	3,470,683	3,556,142
Initial Conversion Price	€118.4692	€155.2500
Adjusted Conversion Price1	€113.2516 (as of 2 June 2022)	€153.6154 (as of 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).

Remuneration system 2022/25 – Update for 2023/26 based on new KPIs

80% share price development vs. EPRA Germany 20% ESG targets (100% target fulfilment below) E: Reduction of CO2 emissions by 10% based on CO2e kg/sqm S: Improve Customer Satisfaction Index (CSI) to 70% Reinvestment obligation of 25% of the LTI into LEG shares Malus/ Clawback Partial or complete reduction or reclaim of variable remuneration possible Max. remuneration CEO €4.8m Board member €3.1m year 1 year 2 year 3 year 4 40% net rental and lease income 40% funds from operations I (FFO I) per share 20% ESG targets (100% target fulfilment below) E: 4,000 tons CO2 reduction from modernisation projects S: Maintain high employee satisfaction level (66% Trust Index) G: Maintain Sustainalytics rating within the negligible risk range (<10) Basic remuneration Fringe benefits Pension entitlement (defined contribution) Effective 1 January 2022 Fixed components STI LTI c.35% 22% – 23% 38% – 40% Share of target remuneration

Share ownership guideline

Purchase of LEG shares equivalent to a gross basic salary within 4 years

Update of targets in-line with new steering methodology for 2023 planned Decision in AGM May 2023

Appendix

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

Share (07.08.2022; indexed; in %; 1.2.2013 = 100)

Weighting MDAX 3.7% (30.09.2022) EPRA Developed Europe 2.7% (30.09.2022)

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

For our detailed financial calendar, please visit https://ir.leg-se.com/en/investor-relations/financial-calendar

Financial calendar

Appendix

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