LEG Immobilien SE

Investor Presentation • Mar 9, 2017

LEG Immobilien AG 9 March 2017

FY 2016 Results

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. HIGHLIGHTS FY-2016
• II. PORTFOLIO AND OPERATING PERFORMANCE
• III. FINANCIAL PERFORMANCE
• IV. BUSINESS UPDATE AND OUTLOOK
• V. APPENDIX

Highlights FY-2016

Overall company development

• Early repayment of subsidised loans triggers additional NAV growth
• €608m total valuation uplift; thereof €174m from early repayment of subsidised debt (€114m net effect)
• Valuation uplift +8.4%; excl. refinancing effect +6.0%
• Signing of JV contract for craftsmen services successful expansion of services activities in cooperation
• JV with supplier B&O, c.300 craftsmen for small repair services, immediate positive earnings impact
• Issue of inaugural benchmark bond at attractive terms diversifies the existing debt structure
• Issue 16 January 2017: volume €500m, maturity 7 years, financing costs 1.34% p.a.

Sound rent growth on basis of high capital efficiency; accelerating rent growth ahead

	In-place rent, l-f-l	€5.34/sqm (+2.5% total portfolio, +3.4% for free-financed units)
	EPRA-Vacancy, l-f-l	2.9% (up c.40 bps YOY, due to temporary reorganisation effect)
	Maintenance/Capex	€18.2/sqm

Financials: Steady margin expansion supports dynamic earnings growth

 Net cold rent	€511.7m (+17.3% YOY from €436.1m)
 Adjusted EBITDA	€355.7m (+21.1% YOY from €293.7m) Strong margin expansion excl. maintenance (c.+380 bps YOY)
 FFO I (excl. minorities)	€268.3m (+30.2% YOY from €206.0m), €4.26 per share (+20.7% YOY from €3.53)
 AFFO	€190.8m (+30.5% YOY from €146.2m)
 EPRA-NAV (excl. goodwill)	€67.15 per share (+14.0% YOY)
 DPS	€2.76 (+22.1% YOY, payout ratio 65%)

II. PORTFOLIO AND OPERATING PERFORMANCE

Portfolio Overview

Positive rent development across all submarkets

Strong results on the basis of tailor-made management strategies

High-Growth Markets
	31.12.2016	 (YOY)
# of units	39,207	+5.0%
In-place rent (sqm), l-f-l	€5.91	+2.7%
EPRA-Vacancy, l-f-l	1.3%	+15 bps

Stable Markets with Attractive Yields
	31.12.2016	 (YOY)
# of units	46,991	+16.0%
In-place rent (sqm), l-f-l	€5.03	+2.1%
EPRA-Vacancy, l-f-l	2.9%	+30 bps

Total Portfolio			Higher-Yielding Markets
	31.12.2016	 (YOY)		31.12.2016	 (YOY)
# of units	128,488	+18.0%	# of units	40,396	+36.4%
In-place rent (sqm), l-f-l	€5.34	+2.5%	In-place rent (sqm), l-f-l	€4.95	+2.4%
EPRA-Vacancy, l-f-l	2.9%	+36 bps	EPRA-Vacancy, l-f-l	5.4%	+70 bps

Around 93% of LEG's portfolio is located in the reach of swarm cities LEG portfolio highly exposed to structural growth markets

Geographic reach (60 km radius)

Key data

• Approx. 93% of LEG's portfolio is located in the catchment area of swarm cities (60 km) and around 64% in the commuter belts of Düsseldorf and Cologne (60 km)
• NRW is a key metropolitan area in Germany and one of the largest areas in Europe (17.7m inhabitants) with Cologne and Düsseldorf being the most populous cities
• Many university cities are located in NRW, e.g. Aachen with the largest technical university in Europe
• Number of 1-2 person households constantly growing in swarm cities and outperforming Germany (2015: 75.6% in Germany)
• Opposite trend in age structure compared to Germany: share of people under the age of 40 steadily increasing (2015: 42.3% in Germany) and percentage of people above the age of 60 steadily shrinking (2015: 27.4% in Germany)
• Many large companies are located near to swarm cities, e.g. Bayer, Bertelsmann, Brenntag, Deutsche Post, Deutsche Telekom, Dr. Oetker, E.ON, Evonik, GEA, Henkel, innogy, Lanxess, Metro, Miele, RWE, thyssenkrupp, Uniper etc.

Rent Development

Attractive portfolio + operational excellence = sound rent growth

• underlying rent dynamics
• High capital efficiency maintained (growth relative to capital expenditure)
• Regional focus drives outperformance

EPRA-Vacancy Development (like-for-like) Low vacancies despite temporary drag from reorganisation

• Low absolute vacancies maintained despite temporary effects from the reorganisation / optimisation of operational units
• Outlook FY-2017: Rising l-f-l occupancy expected (starting H2)

Capex & Maintenance High quality standards and capital discipline maintained

III. FINANCIAL PERFORMANCE

Financial Highlights FY-2016

Margin expansion on back of attractive scale effects + cost discipline

Income Statement

FY-2016

€ million	FY-2016	FY-2015
Net rental and lease income	373.1	320.5	 Higher rental income (+€52.6m/+16.4%)  NRI-margin decreased slightly
Net income from the disposal of investment property	7.6	3.6	from 73.5% to 72.9% YOY due to some higher maintenance
Net income from the valuation of investment property	616.6	285.5	 Disposal gains (total effect) €25.1m
Net income from the disposal of real estate inventory	-2.4	-1.2	 Higher one-time costs
Net income from other services	3.7	0.9	(+€24.2m to €43.2m) due to non-capitalised transaction costs (€34.4m; mainly real
Administrative and other expenses	-78.2	-58.1	estate transfer tax)  Recurring admin. costs down to €32.1m (-€4.6m YOY)
Other income	16.4	0.9	despite volume growth
Operating earnings	936.8	552.1	 Lower financing costs (-€95.2m YOY), lower re financing costs and burdens
Net finance costs	-157.2	-252.4	from fair value measurement of derivatives outweigh one time cost for subsidised loans (€59.8m)  Lower cash interests (€83.2m; -€4.3m YOY) despite increased financing volume
Earnings before income taxes	779.6	299.7
Income tax expenses	-200.4	-82.0
Consolidated net profit	579.2	217.7	 Cash taxes (-€5.0m), thereof (-€1.1m) from IAS40 sales

FFO Calculation

FY-2016

€ million	FY -2016	FY -2015
Net cold rent	511.7	436.1	 +€75.6m (+17.3% YOY)
Profit from operating expenses	-1.6	1.2
Maintenance	-72.0	54.4
Staff costs	-42.2	-37.4	 Disproportional growth in staff
Allowances on rent receivables	-7.2	-6.0	costs (+12.8%) reflects efficiency gains
Other	-10.3	-14.4
Non -recurring project costs (rental and lease)	2.7	2.3	 +€53.7m (+16.4% YOY)
Recurring net rental and lease income	381.1	327.4	 NRI-margin decreased slightly due to higher
Recurring net income from other services	6.0	2.9	maintenance expenses
Staff costs	-21.6	-22.7
Non -staff operating costs	-53.7	-33.3	 One -time costs (thereof
LTIP (long -term incentive programme )	0.0	0.2	€34.4m non -capitalised
Non -recurring project costs (admin.)	43.2	19.0	transaction costs including RETT)
Extraordinary and prior -period expenses	0.0	0.1
Recurring administrative expenses	-32.1	-36.7	 Decreasing admin. cost base despite significant volume
Other income and expenses	0.7	0.1	growth
Adjusted EBITDA	355.7	293.7	 +€62.1m (+21.1% YOY)
Cash interest expenses and income	-83.2	-87.5	 EBITDA margin 69.5% vs.
Cash income taxes	-3.9	-0.2	67.3% in FY -2015 (pre maintenance +380 bps)
FFO I (including non -controlling interests)	268.6	206.0
Non -controlling interests	-0.3	-	 Lower average interest costs (approx. -30 bps YOY)
FFO I (excluding non -controlling interests)	268.3	206.0
FFO II (including disposal of investment property)	292.3	209.6
Capex -adjusted FFO I (AFFO)	190.8	146.2

FFO Bridge FY-2016

Cash Effective Interest Expense FY-2016

€ million	FY-2016	FY-2015
Reported interest expense	177.2	181.5	 One-off refinancing effect of €66m in FY-2016,
Interest expense related to loan amortisation	-81.3	-38.6	thereof €59.8m from refinancing of subsidised loans (loan amortisation)
Prepayment penalties / breakage costs	-6.0	-48.9	 Release of swaps and
Interest charges relating to valuation of assets/liabilities	-1.8	-1.6	fixed interest loans (refinancing)
Leasing related interest expense	-1.6	-1.4
Interest expenses related to changes in pension provisions	-3.2	-2.9
Cash effective interest expense (gross)	83.3	88.1
Cash effective interest income	0.1	0.6	 Interest coverage
Cash effective interest expense (net)	83.2	87.5	improved further (4.3x up from 3.4x YOY)

EPRA-Net Asset Value

31 December 2016

Moderate yield compression; Attractive yield suggests further upside

€ million	31.12.2016	31.12.2015
Equity (excl. minority interests)	3,414.5	2,967.8
Effect of exercising options, convertibles and other rights	435.6	427.2
NAV	3,850.1	3,395.0
Fair value measurement of derivative financial instruments	146.7	165.5
Deferred taxes1)	644.2	466.6
EPRA-NAV	4,641.0	4,027.1
(m)2) Number of shares fully-diluted incl. convertible	68.466	67.904
EPRA-NAV per share in €	67.79	59.31
Goodwill resulting from synergies	43.8	26.4
Adjusted EPRA-NAV (excl. goodwill)	4,597.2	4,000.7
Adjusted EPRA-NAV per share in €	67.15	58.92

• €579.2m net profit
• Dividend -€141.9m
• Capital increase €32.4m

• -€5.0m other comprehensive income (derivatives)

• Attractive rental yield of 6.6% (6.7% for free financed units) leaves future upside

• Value of services business not included in NAV
• Scenario: additional value approx. €2.60 per share at discount rate of 6%3)

2) Actual number of shares outstanding 63.19m 1) And goodwill resulting from deferred taxes on EPRA-adjustments 3) Assumption: growth rate of 0%

Portfolio Revaluation

31 December 2016

Valuation Uplift by Markets

	Valuation uplift	Gross yield
High-growth markets	+6.7 % (+10.9 %2 )	5.4 %
Stable markets	+6.7 % (+7.8 %2 )	7.2 %
Higher-yielding markets	+3.7 % (+4.6 %2 )	7.9 %
Total portfolio	+6.0 % (+8.4 %2 )	6.6 %

• Higher target rents in catchment areas of big cities important value driver (especially Stable markets)
• Reported values show significant gap to recent market transactions/asking prices

1) €616.6m incl. asset disposals

2) Valuation uplift incl. payback of subsidised loans

Sound property fundamentals basis for value growth

As of 31.12.2016

Market	Residential Units	GAV Residential Assets (€m)	% of Total Residential GAV	GAV/ sqm (€)	In-Place Rent Multiple	Multiples, Estimated Rental Values (31.12.2016)	GAV Commercial/ Other Assets (€m)	Total GAV
High Growth Markets	39,027	3,324	43%	1,282	18.6x	16.1x	191	3,514
Stable Markets	46,991	2,439	32%	807	13.8x	12.7x	106	2,545
Higher Yielding Markets	40,396	1,754	23%	708	12.7x	12.0x	50	1,804
Subtotal NRW	126,594	7,516	98%	929	15.2x	13.8x	347	7,863
Portfolio outside NRW	1,894	131	2%	1,023	15.3x	14.0x	2	132
Total Portfolio	128,488	7,647	100%	930	15.2x	13.8x	349	7,995
Other Assets								70
Total								8,065

EPRA-Net Asset Value

31 December 2016

* valuation effects derivatives + deferred taxes are added back

Balance Sheet

31 December 2016

Strong balance sheet

€ million	31.12.2016	31.12.2015
Investment property	7,954.9	6,398.5
Prepayment for investment property	27.3	203.1
Other non-current assets	182.3	296.8
Non-current assets	8,164.5	6,898.4
Receivables and other assets	47.7	37.2
Cash and cash equivalents	166.7	252.8
Current assets	214.4	290.0
Assets held for disposal	57.0	6.7
Total Assets	8,435.9	7,195.1
Equity	3,436.7	2,985.0
Non-current financial liabilities	3,222.3	2,745.6
Other non-current liabilities	870.3	673.7
Non-current liabilities	4,092.6	3,419.3
Current financial liabilities	552.0	496.0
Other current liabilities	354.6	294.8
Current liabilities	906.6	790.8
Total Equity and Liabilities	8,435.9	7,195.1

• Additions €1,064.2m
• Revaluation gains €616.6m
• Capex €77.6m
• Reclassification/disposals -€199.6m
• Cash flow from operating activities €207.0m Dividend -€141.9m

LTV 31 December 2016

Strong credit profile leaves headroom for growth investments

€ million	31.12.2016	31.12.2015
Financing debt	3,774.3	3,241.6	 LTV well within the updated target range of 45-50%
Cash & cash equivalents	166.7	252.8	 Low LTV leaves headroom for additional capex and smaller
Net Debt	3,607.6	2,988.8	acquisitions  Yield compression is likely to
Investment properties	7,954.9	6,398.5	trigger a further decline during the cycle
Properties held for sale	57.0	6.7
Prepayments for investment properties	27.3	203.1
Prepayments for business combinations	-	146.1
Property values	8,039.2	6,754.4	 Significant positive impact on LTV from future conversion of
Loan to Value (LTV) in %	44.9	44.2	convertible expected (currently -340bps)
Pro-forma LTV post conversion in %	41.5	40.4

Financing Structure

1) Maturity 2021 with investor put option 2019 (€300 m convertible bond)

2) Payback of corporate bond (€500 m)

Key Facts		Maturities
Average debt maturity	9.7 years (estimate)	1-2 years
Interest costs	Ø 1.93% (estimate)	3-5 years
Hedging ratio	92.9% (31.12.2016)	6-8 years
Rating	Baa1 (Moody's)	≥ 9 years

1-2 years	0.0%
3-5 years	16.1%
6-8 years	38.0%
≥ 9 years	45.9%

IV. BUSINESS UPDATE AND OUTLOOK

Business Update

Extracting superior value from an attractive asset base

Market: Rising optimism for acquisitions

• Acquisitions FY-2016: c.2,000 residential units acquired at attractive yields (Ø rental yield 7.4%)
• Deals H2-2016: No acquisition due to mismatch of price expectations (initial rental yields below implied yields)
• Successful disposal of around 4,000 non-core units at attractive premium (+13%; €25m)
• Yield compression: Continued positive price trend also over the last couple of months
• Most asking prices still significantly above IFRS values
• Next portfolio revaluation scheduled for Q2-2017
• Pipeline: LEG's pipeline increased since start of the year mainly due to some "special situations"
• Negotiation process for some mid-sized deals

New JV for craftsmen services: Another milestone of the margin expansion story

• Signing of JV contract (51% stake) with B&O nationwide player of craftsmen services ideally complements LEG's services strategy
• Capacity of c.300 craftsmen secured; supply increasingly becomes bottleneck
• Immediate positive earnings impact expected (FFO contribution >€3m)
• Focus on small repair services: Low operational risks and stable demand situation (high and stable capacity utilisation)
• Insourcing of around 25% (approx. €50m) of maintenance & capex budget 2017e
• High flexibility and lean cost structure maintained

Business Update

Extracting superior value from an attractive asset base

Capex programme on track: Examination of a potential extension

• Preparation of additional capex programme (€40m in H2-2017, total €200m until 2019) nearly completed (kick-off construction works mid-2017)
• Analysing the potential for an enlarged programme
• Broadbased upswing in core markets creates additional growth potential
• Identification of most attractive growth opportunities
• New construction on existing sites, refurbishment of existing stock (repositioning of assets)

Exploiting the value potential from early redemption of subsidised loans

• Early repayment of subsidised loans (€185m; 32% of subsidised debt) triggered positive net NAV uplift of €114m
• Repayment of further smaller tranches of subsidised debt on the cards (assumption: FFO neutrality, positive NAV impact) in course of FY-2017

Acquisitions: Leading Management Skills Paying Off

Operational improvements reflect strong management track record

		Closing		28.02.2017		Change
	Units	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy	In-place rent € / sqm	Occupancy
Total Portfolio1)	39,236	4.90	94.7%	5.26	94.8%	0.36 (+7.4%)	~ +10 bp
Vitus portfolio	9,323	4.76	96.1%	5.24	96.2%	0.48 (+10.1%)	~ +10 bp
portfolio2) Charlie	11,630	4.81	93.6%	5.12	93.6%	0.31 (+6.4%)	~ +/-0 bp

Acquisitions: Leading Management Skills Paying Off Scalability of platform + cost discipline support value accretive growth

Strong volume growth at decreasing overhead cost…

…leads to a significant drop of the admin. costs ratio

Early refinancing of subsidised loans Positive impact on NAV and FFO growth

Successfully exploiting internal growth opportunities

• Significant reversionary potential on rent restricted portfolio (average rent €4.59 per sqm; c.25% below market rents)
• Also after partial repayment of subsidised loans (avg. maturity approx. 35 years) rents remain bound to cost rent system for a grace period of 10 years
• Positive short term effect on asset valuation of €174m (DCF model) outweighing the negative effects on the liabilities side (IFRS values of loans below nominal values)
• Annualised positive impact on FFO guidance of approx. €3m due to lower financing costs (one-time refinancing costs approx. €11m)

Outlook for 2017 - 2018

2017	Guidance
FFO I	€288m - €293m / €4.56 - €4.64 per share (up from €284m - €289m / €4.50 - €4.57 per share)
EBITDA margin	~72%
L-F-L rent growth	3.0 - 3.3%
L-F-L vacancy	-20 - -40 bps
Capex	€24/sqm
Dividend	65% of FFO I
2018
FFO I	€310m - €316m / €4.91 - €5.00 per share
EBITDA margin	~73%
L-F-L rent growth	~3.0%
Capex	€29/sqm

Steady Expansion of Leading Profitability

V. APPENDIX

Generating Appealing Shareholder Returns

Net Immigration Expected to Remain at a High Level Stabilising net immigration with decreasing share of refugees

Sources:

• 1) Interview with director of Federal Agency of Migration and Refugees (Aug 2016)
• 2) Deutsche Bundesbank
• 3) Regional government of North Rhine-Westpahlia

EPRA Net Initial Yield FY-2016

€ million	31.12.2016	31.12.2015
Investment properties	7,950.9	6,101.6
Assets held for sale	57.0	6.7
Market value of residential property portfolio (net)	8,007.9	6,108.3
Estimated incidental costs	789.2	601.5
Market value of residential property portfolio (gross)	8,797.0	6,709.8
Annualised cash flow from rental income (gross)	500.3	428.1
Non recoverable operating costs	-79.1	-61.4
Annualised cash flow from rental income (net)	421.2	366.7
EPRA Net Initial Yield in %	4.8	5.5

EPRA Cost Ratio FY-2016

€ million	31.12.2016	31.12.2015
Adjusted EBITDA	-355.8	-293.7
Rental income	511.7	436.1
Maintenance	-72.0	-54.4
Management costs	83.9	88.0
Maintenance	72.0	54.4
Leasehold interests	-4.3	-3.9
EPRA costs (incl. directly attr. vacancy costs)	151.6	138.5
Directly attributable vacancy costs	-6.3	-6.0
EPRA costs (excl. directly attr. vacancy costs)	145.3	132.5
Rental income	511.7	436.1
Leasehold interests	-4.3	-3.9
Rental income (gross)	507.4	432.2
EPRA cost ratio (incl. directly attr. vacancy costs) in %	29.9	32.0
EPRA cost ratio (excl. directly attr. vacancy costs) in %	28.6	30.7
EPRA cost ratio adjusted by maintenance (incl. directly attr. vacancy costs) in %	15.7	19.5
EPRA cost ratio adjusted by maintenance (excl. directly attr. vacancy costs) in %	14.4	18.1

LEG – Adj. EBITDA Margin

Leading profitability despite short term distortion from restricted units

Adj. EBITDA margin	2016		2015
	€m	margin %	€m	margin %
As reported	355.7	69.5	293.7	67.3
Gap restricted vs. unrestricted rents1)	26.3	71.0	22.5	68.9

1) €/sqm: €4.67 vs. €5.56 in 2016, €4.67 vs. €5.48 in 2015

• EBITDA as reported distorted by restricted units (compensation for lower rents included in interest result below the EBITDA line)
• Scenario analysis: closing gap between restricted vs. unrestricted rents; Adjusted EBITDA margin approx. 150 bps higher

Capex Programme Lifting internal growth potential

Additional upside for value enhancing capex measures due to steadily improving market fundamentals

• Additional investment programme of €200m with significant contribution to l-f-l rent and FFO growth
• Emphasis on attractive locations in high-growth markets (c.65% of total investment) with significant rent potential (e.g. Münster, Bonn, Monheim in catchment area of Düsseldorf)
• Strict capital discipline maintained IRR hurdle of 6%
• Construction work will start in H2-2017 with first effects on rent development in FY-2018

Average acquistion yield of 7.4% underscores LEG's strength to source attractive deals

Deal #	Units acquired	Geographic focus	Market	Annual net cold rent	In place rent/sqm	Vacancy rate	Signing	Purchase price	Closing
1	~1,100	Recklinghausen, Herne	Stable/ Higher Yielding	~EUR 4.0m	EUR 4.46	5.4%	Apr 2016	c.EUR 53m	May 2016
2	~560	Hamm, Krefeld, Duisburg	High Growth/ Stable	~EUR 1.8m	EUR 4.96	7.1%	July 2016	not disclosed	Dec 2016
3	~320	Duisburg, Herten	Higher Yielding/ Stable	~EUR 2.0m	EUR 4.62	2.1%	Aug 2016	not disclosed	Jan 2017
	c.2,000

Rent revisionary potential

Refinancing of subsidised loans lifting value

Rent Potential Subsidised Units

• In the following 10 years around 11,000 units will come off rent restriction
• Units show significant upside to market rents
• Subject to general legal and other restrictions, the economic upside can theoretically be realised the year after restrictions expire

595 218 800 791 95 100 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027ff # Units Number of Units Coming Off Restriction and Rent Upside 2,368* 1,856 2,673 1,470 26,160

* Thereof 2,095 units in Q1-2017

Spread to Market Rent € /sqm /month

	≤ 5 years2)	10 years2) 6 –	≥ 10 years2)
In-place rent	€4.52	€4.63	€4.83
Market rent1)	€6.33	€5.54	€6.03
Upside potential3)	40%	20%	25%
Upside potential p.a.3)	€9.2m	€3.8m	€25.6m

Source: LEG as of FY-2016

• 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 = 2017-2021; 6-10 years = 2022-2026; ≥10 years = 2027ff.

3) Rent upside is defined as the difference between LEG in-place rent as of FY-2016 and market rent (defined in footnote 1) as of FY-2016.

Mietspiegel Overview Expected new Mietspiegel in 2017

Release date (expected)	High-Growth Markets	Stable Markets	Higher-Yielding Markets	Total Portfolio
2017 (Q1)	7,383 units (mainly Cologne, Bocholt)	17,257 units1 (mainly Dortmund, Wuppertal, Solingen)	22,940 units (mainly Duisburg, Gelsenkirchen, Herne)	47,580 units1
2017 (Q2)	6,075 units (Münster)	1,602 units	1,236 units (mainly Dorsten)	8,913 units
2017 (Q3)	-	2,060 units (mainly Krefeld)	263 units	2,323 units
2017 (Q4)	429 units	36 units	2,464 units (Castrop-Rauxel)	2,929 units
Total 1	13,887 units	20,955 units1	26,903 units	61,745 units1
Thereof: - Castrop-Rauxel - Cologne - Dortmund - Duisburg - Gelsenkirchen - Herne - Munster	3,902 units 6,075 units	13,164 units	2,464 units 7,123 units 6,736 units 3,153 units	Sub-portfolios also include
- Recklinghausen - Solingen - Wuppertal		1,474 units 2,028 units	2,692 units	restricted units 1 Mietspiegel for Dortmund (13,164 units affected) already published in Jan 2017

LEG Share Information

• Prime Standard, Frankfurt Stock Exchange
• Total no. of shares: 63,188,185
• Ticker symbol: LEG
• ISIN: DE000LEG1110
• Indices: MDAX, FTSE EPRA/NAREIT, GPR 250, Stoxx Europe 600
• Weighting (31.12.2016): MDAX 2.65%; EPRA 2.34%

Share price (06.03.2017, indexed; 31.01.2013 = 100)

• Rating: Baa1 (stable) by Moody's

EPRA Germany LEG

Basic data Well-balanced shareholder structure

Diversification of LEG's funding sources Capital Market Financing

	Corporate Bond
Issue Size	EUR 500m
Term /	7 years /
Maturity Date	23 January 2024
Coupon	1.250 % p.a.
Issue	99.409 %
Price
Initial Re-offer	1.339 %
Yield
Financial	Incurrence-based:
Covenants	• Net financial debt / total assets ≤ 60%
	• Secured financial debt / total assets ≤ 45%1) • Unencumbered assets / unsecured financial
	debt ≥ 125%1)
	Maintenance-based:
	• Adj. EBITDA / net cash interest ≥ 1.8x
ISIN	XS1554456613
WKN	A2E4W8

	Convertible Bond
Issue Size	EUR 300m
Term /	7.2 years /
Maturity Date	1 July 2021
Coupon	0.500 % p.a.
Initial	EUR 62.39
Conversion Price
Adjusted	EUR 56.8403 (as of 20 May 2016)
Conversion Price
Investor Put	1 July 2019
Issuer Call	From 22 July 2019, if the LEG share price exceeds 130 % of the then applicable conversion price
ISIN	DE000LEG1CB5
WKN	LEG1CB

1) After 31 July 2017

Financial Calendar

Date	Report/Event
09.03.2017	Annual Report as of 31 December 2016
10.03.2017	Roadshow Zurich, Société Générale
16.03.2017	Roadshow Munich, Bankhaus Lampe
21.03.2017	Roadshow London, Deutsche Bank
22.03.2017	Commerzbank German Residential Property Forum, London
23.03.2017	HSBC Real Estate Conference, Frankfurt
29.03.2017	Bankhaus Lampe Deutschland Konferenz, Baden-Baden
05.04.2017	Roadshow Dusseldorf/Cologne, M.M. Warburg
10.05.2017	Quarterly Statement Q1 as of 31 March 2017

Contact

Investor Relations

Burkhard Sawazki Head of Investor Relations Tel: +49 (0) 211 4568-204 burkhard.sawazki@leg.ag

Karin Widenmann Manager Investor Relations Tel: +49 (0) 211 4568-458 karin.widenmann@leg.ag

Katharina Wicher Investor Relations Tel: +49 (0) 211 4568-294

katharina.wicher@leg.ag

40476 Dusseldorf, Germany E-Mail: ir@leg.ag

LEG Immobilien AG Phone: +49 (0) 211 4568-400 Hans-Boeckler-Str. 38 Fax: +49 (0) 211 4568-22 204

Thank you for your interest.