LEG Immobilien SE

Investor Presentation • Nov 12, 2015

9M Results 2015

12th November 2015

Disclaimer

While the company has taken all reasonable care to ensure that the facts stated in this presentation are accurate and that the opinions contained in it are fair and reasonable, this presentation is selective in nature and is intended to provide an introduction to, and an overview of the Company's business. Any opinions expressed in this presentation are subject to change without notice and neither the Company nor any other person is under any obligation to update or keep current the information contained in this presentation. Where this presentation quotes any information or statistics from any external sources, you should not interpret that the Company has adopted or endorsed such information or statistics as being accurate.

This presentation may contain forward-looking statements that are subject to risks and uncertainties, including those pertaining to the anticipated benefits to be realised from the proposals described herein. Forward-looking statements may include, in particular, statements about future events, future financial performance, plans, strategies, expectations, prospects, competitive environment, regulation, and supply and demand. The Company has based these forward-looking statements on its views and assumptions with respect to future events and financial performance. Actual financial performance could differ materially from that projected in the forward-looking statements due to the inherent uncertainty of estimates, forecasts and projections, and financial performance may be better or worse than anticipated. Given these uncertainties, readers should not put undue reliance on any forward-looking statements. The information contained in this presentation is subject to change without notice and the Company does not undertake any duty to update the information and forward-looking statements, and the estimates and assumptions associated with them, except to the extent required by applicable laws and regulations.

This presentation does not constitute an offer or invitation to purchase or sell any shares in the Company and neither this presentation or anything in it shall form the basis of, or be relied upon in connection with, any contract or commitment whatsoever.

I.I. Highlights 9M-2015

Highlights 9M-2015

Overall company development

• Termination of the business combination agreement with Deutsche Wohnen
• Acquisition of 13,800 units strong affirmation of stand-alone growth strategy
• LEG expands leading market position (c.20,000 units YTD) in NRW allowing for attractive scale effects
• Further pipeline for acquisitions
• Efficiency program exceeding expectations (€10m p.a. with full effect in FY-2017)
• Raising EBITDA margin target 2017 to 72% (previously 71%)

Dynamic rent growth combined with high capital efficiency

• In-place rent €5.19/sqm (+2.5% like-for-like, +3.5% for free-financed units)
• EPRA-Vacancy 3.2% l-f-l (stable YOY)
• Maintenance/Capex of c.€9.9/sqm
• FY-2015 target of €15/sqm reiterated

Financials: Compelling growth at low risk

• Rental income €325.3m (+13.5% YOY from €286.6m)
• Adjusted EBITDA €225.4m (+15.3% YOY from €195.5m)
• Margin expansion excl. maintenance c.+240 bps YOY
• FFO I €158.5m(+27.8% YOY from €124.0m), €2.76 per share (+17.9% YOY from €2.34)
• AFFO €125.0m (+28.5% YOY from €97.3m)
• EPRA-NAV (excl. goodwill) €52.87 per share (+4.1% YTD incl. DPS)

II.I. Portfolio and Operating Performance

Portfolio Overview

Strong operational performance across all submarkets

	30 Sep 2015	 (YOY)
# of units	109,602	+12.4%
In-place rent (sqm)	€5.19 (€5.22*)	+1.8% (+2.5%*)
EPRA-Vacancy	3.2% (3.2%*)	(+/-0 bps)

High-Growth Markets
	30 Sep 2015	 (YOY)
# of units	33,561	+5.9%
In-place rent (sqm)	€5.83 (€5.85*)	+2.1% (+2.8%*)
EPRA-Vacancy	1.4% (1.3%*)	+10 bps (+/-0 bps*)

Stable Markets with Attractive Yields
	30 Sep 2015	 (YOY)
# of units	44,148	+22.5%
In-place rent (sqm)	€4.91 (€4.92*)	+2.0% (+2.0%*)
EPRA-Vacancy	3.5% (3.7%*)	-40 bps (-20 bps*)

Higher-Yielding Markets
	30 Sep 2015	 (YOY)
# of units	30,436	+7.6%
In-place rent (sqm)	€4.80 (€4.82*)	+1.9% (+2.4%*)
EPRA-Vacancy	5.3% (5.3%*)	+30 bps (+30 bps*)

* like-for-like

Attractive portfolio + operational excellence = strong rental growth

• Sound growth despite absence of major cost rent adjustments (for restricted units)
• Strong growth of free financed units best indicator for underlying performance
• High rent growth relative to investments underscores strong performance
• Structural competitive advantages of regional focus paying-off

EPRA-Vacancy Development (like-for-like)

Attractive portfolio + operational excellence = low vacancies

• High occupancy maintained
• Positive outlook for Q4-2015: l-f-l basis vacancy c. 2.8%

Capex & Maintenance Well maintained asset base & high capital efficiency

Financial Highlights 9M-2015

Margin expansion on back of sound topline growth + cost discipline

Income Statement 9M-2015

Condensed Income Statement (€ million)	FY-2014	9M-2015	9M-2014	 Higher rental income
Net rental and lease income	284.9	242.4	213.1	(+€38.7m/+13.5%)  NRI-margin increased from 74.4% to 74.5% YOY (75.8%
Net income from the disposal of investment property	-1.7	0.7	-0.3	to 76.1% w/o one-time costs) despite higher maintenance
Net income from the valuation of investment property	143.0	0.0	0.0	(+29% YOY)
Net income from the disposal of real estate inventory	-3.1	-0.5	-2.6	 Higher one-time costs (+€4.6m to €6.5m)  Recurring admin. costs of
Net income from other services	-0.3	0.1	0.0	€24.5m (+€0.6m YOY), temporary increase mainly
Administrative and other expenses	-41.6	-32.7	-28.4	due to first time consolidation effects  Decreasing cost base in 2016 expected to contribute to further margin expansion
Other income	0.5	0.6	0.6
Operating earnings	381.7	210.6	182.4	 One-time refinancing costs (-€46.7 m)
Net finance costs	-162.2	-220.5	-87.7	 Net income from fair value measurement of derivatives (-€77.9m; thereof -€76.7m from convertible)
Earnings before income taxes	219.5	-9.8	94.7
Income tax expense	-62.7	-12.1	-26.5	 Cash taxes -€1.1m (including an aperiodic effect of -€0.9m)
Consolidated net profit	156.8	-21.9	68.2

FFO Calculation 9M-2015

€ million	9M-2015	9M-2014
Rental income	325.3	286.6	 +€38.7m (+13.5% YOY)
Profit from operating expenses	-0.6	1.0
Maintenance	-36.5	-28.3
Staff costs	-27.4	-24.4
Allowances on rent receivables	-4.7	-3.6
Other	-10.4	-15.1
Non-recurring project costs (rental and lease)	1.8	0.9
Current net rental and lease income	247.5	217.1	 +€30.4m (+14.0% YOY);
Current net income from other services	1.8	1.7	further cost savings from efficiency program expected
Staff costs	-16.4	-16.3
Non-staff operating costs	-14.8	-10.5
LTIP (long-term incentive programme)	0.2	1.0
Non-recurring project costs (admin.)	6.4	1.8
Extraordinary and prior-period expenses	0.1	0.1	 Decreasing admin. cost base
Current administrative expenses	-24.5	-23.9	in 2016 expected
Other income and expenses	0.6	0.6
Adjusted EBITDA	225.4	195.5	 +€29.9m (+15.3% YOY)
Cash interest expenses and income	-66.7	-70.4
Cash income taxes	-0.2	-1.1	 +€34.5m supported by topline
FFO I (not including disposal of investment property)	158.5	124.0	growth and margin expansion
Net income from the disposal of investment properties	0.7	-0.3
FFO II (including disposal of investment property)	159.2	123.7
Capex	-33.5	-26.7
Capex-adjusted FFO I (AFFO)	125.0	97.3

FFO Bridge 9M-2015

Focus: Cash Effective Interest Expense 9M-2015

€ million	FY-2014	9M-2015	9M-2014
Reported interest expense	128.5	145.9	93.8	 Refinancing costs of €46.7m (P+L effective)
Interest expense related to loan amortisation	-24.6	-27.4	-16.9	 Including valuation of
Prepayment penalties	0.0	-7.2	0.0	the convertible (€4.8m) and effects from
Interest charges relating to valuation of assets/liabilities	-2.3	-1.3	-1.7	refinancing (€6.0m)
Leasing related interest expense	-1.5	-1.0	-1.0
Interest expenses related to changes in pension provisions	-4.0	-2.2	-2.9
Other interest expenses	-0.2	-39.6	-0.2	 Release of swaps (refinancing) ~€39.5m
Bank charges	-0.3	0.0	0.0
Interest income	-1.0	-0.6	-0.8	 Lower ø cost of debt
Cash effective interest expense	94.5	66.7	70.4	 Interest coverage improved further (3.4x up from 2.8x YOY)

EPRA-Net Asset Value 9M-2015

€ million	30.09.2015	31.12.2014
Equity (excl. minority interests)	2,410.6	* 2,476.2
Effect of exercising options, convertibles and other rights	418.9	308.7
NAV	2,829.5	2,784.9
Fair value measurement of derivative financial instruments	167.4	136.1
Deferred taxes**	381.3	373.7
EPRA-NAV	3,378.2	3,294.7
Number of shares fully-diluted incl. convertible (m)***	63.394	62.043
EPRA-NAV per share in €	53.29	53.10
Goodwill, resulting from synergies	26.4	* 26.4
Adjusted EPRA-NAV (excl. goodwill)	3,351.8	3,268.3
Adjusted EPRA-NAV per share in €	52.87	52.69

• -€21.9m net loss (early refinancing of loans and fair value measurement of derivatives) Dividend distribution
• (-€111.8m)

• Capital increase (€72.9m)

• Rental rental yield of 7.3% signals future upside; first moderate yield compression in Q4

• Expected valuation uplift in Q4-2015: 4.4% 4.7%
• Value of services business not included in NAV
• Value €2.90 per share at discount rate of 6%

* Adjustment arising from final PPA of Vitus transaction *** Actual number of shares outstanding 58.260m ** And goodwill resulting from deferred taxes on investment properties

First Moderate Yield Compression in Q4 2015*

Strong momentum in orange markets
Markets	Change
Total valuation uplift	€265m - €285m (+4.4 – 4.7%)
Orange markets	c.+7.5%
Green and purple markets	c.+2.5 – 2.8%

Selected Markets
Cities	Segment	Valuation Uplift
Dusseldorf	High-Growth	~9.0%
Cologne	High-Growth	~12.5%
Dortmund	Stable	~3.0%
Essen	Stable	~3.0%
Duisburg	Higher-Yielding	~2.0%
Gelsenkirchen	Higher-Yielding	~5.0%

* Expected results

Balance Sheet 9M-2015

Strong balance sheet secures defensive profile

€ million	30.09.2015	31.12.2014
Investment property	6,093.5	5,914.3	 Additions €189.9m  Capex €33.5m
Prepayment for investment property	0.6	16.8	 Reclassification -€47.5m
Other non-current assets	140.9	* 155.1
Non-current assets	6,235.0	6,086.2	 Cash flow from operating activities (€120.0m)
Receivables and other assets	60.0	35.9	 Dividend distribution
Cash and cash equivalents	378.2	129.9	(-€111.8m)  Net acquisitions and capex
Current assets	438.2	165.8	measure (-€126.5m)
Assets held for disposal	41.2	58.4	 Capital increase (€72.9m)
Total Assets	6,714.4	6,310.4
Equity	2,426.8	* 2,490.4	 Equity ratio of 36.1%
Non-current financial liabilities	2,851.4	2,546.5
Other non-current liabilities	609.4	612.3
Non-current liabilities	3,460.8	3,158.8
Current financial liabilities	492.9	413.8
Other current liabilities	333.9	* 247.4
Current liabilities	826.8	661.2
Total Equity and Liabilities	6,714.4	6,310.4

* Adjustment arising from final PPA of Vitus transaction

LTV 9M-2015

Strong credit profile and efficient capital structure maintained

€ million	30.09.2015	31.12.2014
Financial debt	3,344.3	2,960.3
Cash & cash equivalents	378.2	129.9
Net Debt	2,966.1	2,830.4
Investment properties	6,093.5	5,914.3
Properties held for sale	41.2	58.4
Prepayment for investment properties	0.6	16.8
Property values	6,135.3	5,989.5
Loan to Value (LTV) in %	48.3	47.3
Equity	2,426.8	* 2,490.4

Positive impact on LTV from future conversion of convertible expected (currently -420bps)

Financing Structure - 30 September 2015

Value accretive growth on basis of a highly focused management platform

NRW market: Strong fundamentals suggest catch-up potential

• Many core markets in still early stage of the cycle with accelerating demand growth
• Affordable living in NRW key beneficiary of paradigm change of rising immigration
• High affordability in NRW indicates superior relative value
• LEG portfolio: attractive yield differential (yield 7.3%, value/sqm €826) despite sound growth dynamics (rent CAGR 2013-17e: +2.8%)

Exploiting attractive scale effects in our core markets

• Acquisition of approx. 20,000 units YTD in core markets; expansion of leading market position
• Strict investment criteria maintained: no NAV dilution, FFO accretion, efficiency gains (contribution to rising EBITDA margin)
• Purchase of 13,800 units from Vonovia ideally fits into LEG's growth strategy
• Transaction price in line with year end valuation
• Significant positive contribution to FFO per share expected (estimate: 3-4% per share)
• EBITDA margin >72% due to high synergies despite higher capex/maintenance
• Additional value upside (rents, vacancies) on basis of LEG platform
• LEG natural buyer in attractive NRW market: superior scale effects + very strong reputation as sustainable landlord

NRW Population Development

Many cities just entering upswing phase

80 85 90 95 100 105 110 115 120 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 2008 2011 2014 End of declining population 0.2% 0.1% 0.1% 0.4% 0.6% Index = 1975 CAGR 2011 - 2014 Cities entering upswing mode Bielefeld Mönchengladbach Krefeld Dortmund Essen

NRW cities showing significant upside potential

Source: CBRE, Destatis * Net income pre tax and social insurance contributions and including received transfer payments

Value accretive growth on basis of a highly focused management platform

Efficiency program beating expectations / EBITDA margin target raised

• Comprehensive approach covering all processes and functions; harvesting the fruits of a concentrated portfolio
• Upward revision of cost savings target from €5m to €10m (full effect in FY-2017)
• Process innovations key driver for sustainably lower cost base
• Examples: service centre for standard requests, higher standardisation of turn costs
• EBITDA margin target 2017 raised to 72% (up from 71%)
• Further strengthening of our leading operating profitability in the sector

More active capital recycling ahead: Creating additional value

• Portfolio has reached critical size
• More active selling of apartment blocks to investors; no tenant privatisation
• Crystallising attractive relative prices
• Opportunistic disposals (after transformation of assets from value-add/opportunistic to core)
• Status: analysis of portfolio; completion in Q4

Portfolio Overview – Excellent Fit to LEG's Portfolio

Key Figures
Residential units	c.13,800
Total sqm	c.862 k
Rent (€/sqm)	4.84
Market rent (€/sqm)	5.09
Vacancy (%)	6.3%
Commercial units	c.50
Parking	c.2,330
Other	c.50

High-Growth Markets

• Stable Markets
• Higher Yielding Markets

Gutersloh, Bielefeld, Essen, Siegen, Siegburg

Highlights
 Highly concentrated portfolio structure allows efficient property management  Portfolio is located in urban regions/commuter belts benefitting from strong migration to Germany and especially to NRW  LEG's product (affordable housing) well-suited for increasing net immigration to NRW

Commercial units	c.50	Locations	Units	Units	Market	Rent	Market	Vacancy	Target
Parking	c.2,330		acquired	LEG combined		€/sqm	rent €/sqm		Vacancy
Other	c.50
		Gelsenkirchen	c.3,830	c.6,740		4.86		9.5%
		Bergkamen	c.2,200	c.2,810		4.52		4.3%
		Marl	c.2,080	c.2,740		5.14		7.3%
		Herne	c.1,990	c.2,710		4.97		6.6%
		Herten	c.1,030	c.1,170		4.95		5.1%
High-Growth Markets		Dortmund	c.730	c.13,270		4.45		2.6%
Stable Markets		Monchengladb.	c.410	c.6,460		5.31		4.9%
Higher Yielding Markets		Ratingen	c.300	c.3,130		5.83		4.0%
		Krefeld	c.210	c.1,330		4.40		5.3%
		Total1	c. 13,800	c. 48,060		4.84	5.09	6.3%	<5.0%
1 Total Portfolio includes further units in Koblenz,

Transaction Parameters – Attractive Portfolio Yield

Key Figures
Purchase price	c.€600m
Asset value/sqm (€)	c.€710
Rental yield/multiple (in-place rents)	7.8% (12.8x)
Rental yield/multiple (estimated rental values)	8.2% (12.2x)
Signing	mid December 2015
Expected closing	31 March 2016

Portfolio breakdown by macro and micro locations

Assets Located in Urban Regions of NRW

Overview Acquisitions Year-to-Date

Deal #	Units acquired	Geographic focus	Market	Annual net cold rent	In place rent/sqm	Vacancy rate	Signing	Purchase price	Expected closing
1	713	Cologne, Leverkusen, Sankt Augustin	high growth/ stable	EUR 3.5m	EUR 5.33	2.9%	April 2015	not disclosed	retroactively as of 1 June 2015
2	c.3,500	Top 2 locations ~60% (Bielefeld, Detmold)	stable	EUR 14.2m	EUR 5.22	3.6%	June 2015 (agreement)	EUR 225m	January 2016
3	2,037		stable/ higher yielding	EUR 7.7m	EUR 5.04	6.7%	August 2015	not disclosed	January 2016
4	c.13,800	NRW	higher yielding/ stable	c.EUR 48m	EUR 4.84	6.3%	November 2015 (agreement)	c.EUR 600m	1 April 2016
	c.20,000

Acquisitions: Creating Tangible Value

		31.10.2015		Closing		Change
	Units	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy
Portfolio incl. Vitus transaction	20,869*	5.12	95.9%	4.87	95.5%	0.25 (+5.1%)	~ +40 bp

Dynamic rent growth confirms attractive reversionary potential

Average in-place rents +5.1% (within avg. 17.1 months)

* Acquisitions since end-2012

2015	Guidance
FFO I:	€200m - €204m /€3.47 - €3.54 per share
L-F-L rent growth:	2.4 - 2.6%
L-F-L vacancy:	Approx. 2.8% (FY-14 comparable: 2.8%)
Dividend:	65% of FFO I

2016
FFO I:	€254m - €259m (up from €233 - €238m)/ €4.00 - €4.09 + upside from Vonovia acquisition of 3 – 4%
L-F-L rent growth:	2.4 – 2.6%

2017
FFO I:	€279m - €284m
L-F-L rent growth	3.0 – 3.3%

Steady Expansion of Leading Profitability

Expected new Mietspiegel in 2015

LEG – Adj. EBITDA Margin

Adj. EBITDA margin	2014		2013
	€m	margin %	€m	margin %
As reported	259.3	66.5	231.7	64.3
Gap restricted vs. unrestricted rents*	21.2	68.2	22.5	66.4

* €/sqm: €4.61 vs. €5.33 in 2014, €4.50 vs. €5.24 in 2013

• EBITDA as reported distorted by restricted units (compensation for lower rents included in interest results)
• Scenario analysis: closing gap between restricted vs. unrestricted rents; Adjusted EBITDA margin approx. 170 bps higher

Portfolio (as of 30 Sep 2015)

LEG Share Information

Financial Calendar

Date	Report/Event
12.11.2015	Quarterly Report 9M as of 30 September 2015
13.11.2015	Roadshow Amsterdam, Kempen
18.11.2015	Roadshow London, Morgan Stanley
19.11.2015	Roadshow Paris, KeplerCheuvreux
13.01.2016	J.P. Morgan European Real Estate CEO Conference, London
20.01.2016	Unicredit / KeplerCheuvreux 15th German Corporate Conference, Frankfurt
March 2016	Annual Report 2015

LEG Immobilien AG – Investor Relations Team

Burkhard Sawazki Head of Investor Relations Phone: +49 211 4568 204 burkhard.sawazki@leg.ag

Karin Widenmann Katharina Golke Manager Investor Relations Investor Relations Phone: +49 211 4568 458 Phone: +49 211 4568 294 karin.widenmann@leg.ag katharina.golke@leg.ag

Hans-Boeckler-Str. 38 40476 Dusseldorf Germany

Thank you for your interest.