LEG Immobilien

LEG Immobilien SE is one of Germany's large, publicly listed housing companies, focusing on providing affordable rental properties for various segments of society. The company was founded in 1970 through the merger of several non-profit housing enterprises in North Rhine-Westphalia. Originally a state-owned entity, its initial activities centered on urban renewal, development, and housing construction. A significant milestone was its privatization in 2008 when it was sold to funds managed by the American investment bank Goldman Sachs. The company went public on February 1, 2013, and has been listed on the MDAX since June 2013. In August 2020, it transitioned from a German stock corporation (AG) to a European company (SE).

LEG's core business is the management and leasing of its extensive property portfolio, which primarily consists of residential units, supplemented by commercial spaces, garages, and parking spots. The company's revenue is mainly generated through rental income. A key part of its strategy is focusing on the North Rhine-Westphalia region, where approximately 80% of its assets are located. LEG aims to offer good quality, affordable housing, with an average rent of around €6.58 per square meter as of late 2023. Its client base is broad, serving approximately 500,000 residents, including those requiring subsidized housing, which makes up about one-fifth of its portfolio. The business model also involves value-added services for tenants, property sales, and a commitment to sustainability, including energy-efficient upgrades and aiming for carbon neutrality.

The company is led by a management board that includes Lars von Lackum (CEO), Dr. Kathrin Köhling (CFO), and Dr. Volker Wiegel (COO). In response to market changes, LEG has adopted a cash-focused strategy, prioritizing free cash flow, reducing new developments, and executing a sales program for non-core assets to maintain a strong balance sheet. The company has also ventured into energy services through joint ventures to support its decarbonization goals.

Keywords: residential real estate, property management, affordable housing, German property market, rental apartments, North Rhine-Westphalia real estate, real estate investment, housing company, property portfolio, tenant services, public housing, real estate development, sustainable housing, property leasing, portfolio optimization, MDAX, Düsseldorf, European company, residential leasing, commercial units