LEG Immobilien SE

Good morning everyone and welcome to our earnings call. As always, we have LEG's entire management team on the call. Our CEO, Lars von Lackum, our CFO, Kathrin Köhling, and our CEO, Volker Wiegel. You will find the quarterly report as well as the presentation in the Investor Relations section of our website. Please note, there is a legal disclaimer on page 2 of the presentation. And with that, I would like to hand it over to you, Lars.

Thank you, Karin. Good morning, everyone, and thank you for joining our H1 analyst and investor call today. Let me walk you through the six highlights on this slide. LED is delivering on every dimension which we set out at the beginning of the year. First, rent. Like-for-like rent growth came in at 3.7% for H1, squarely within our full-year guidance corridor. I want to highlight one quality element here specifically. 50 basis points of backdrills came from cross-trend adjustments. Further rent increases in the second half will push this number into our target range of 3.8% to 4%. Second, APRA vacancy. At 2.3% on a like-for-like basis, vacancy declined by a further 20 basis points. This is a clear signal of underlying demand strength across our portfolios. It also tells you that supply remains the key issue in the market, while meaningful new supply remains absent from the market. Third, adjusted EBTA. Adjusted EBTA grew by 2.3%, rising to €368.1 million. This reflects the continued operational leverage of our platform. More revenue flowing through to earnings, with cost discipline holding first. With this, we are on track with our target of an EDTA margin of around 78%. Fourth, AFFO. AFFO of 110.5 million euros for H1 puts us fully on track for our full year guidance range of 220 to 240 million euros. Guidance is confirmed across all line items. Fifth, Valuation. Portfolio variation came in at plus 0.7%, a result in line with our expectation of up to 1%. The market is moving, carefully and constructively, in the right direction. 6. LTV LTV stands at 45.5%, effectively at our target level of approximately 45%. Let me flag one item for transparency. We expect a temporary technical uptick in Q3, driven solely by the timing of our dividend payout. This is a known and mechanical effect, not a shift in trajectory. The underlying direction of travel on leverage remains unchanged. Downward, disciplined and cash flow driven. This discipline is paying off, particularly in the current environment. Portfolio transactions in our current market are still at very low levels. Inflation concerns and rising interest rates, amplified by geopolitical tensions, have weighed heavily on investor sentiment. Overall, times are challenging. Against this background, we are in a comfortable leveraged position. Therefore, we remain fully committed to our disciplined disposal strategy. Selling only when pricing adequately reflects the intrinsic value of our assets. Let me now turn to slide 6 and our capital allocation logic. The principle is simple. Every euro goes where it earns the most for shareholders. Today, that principle plays out in two phases. First, where we stand in H1 2026. Our LTV came down to 45.5% from 47.6% the year earlier, that is, effectively, at our target level of around 45%. Three reasons got us there. Firstly, disposals of 42 million euros, all at or above book value. Secondly, evaluation result of plus 0.7%, in line with our expectation of up to plus 1% for the half year. Thirdly, the take-up of the script dividend, which retains 63 million euros of liquidity in the company. Our ongoing AFFO-driven steering avoids any overspending, and with that, any need to take on additional debt. So, the deleveraging path is on track, despite the market volatility we have all had to navigate this year. As soon as we have reached our ITV target, we see four potential options for capital allocation. You find these options on the right-hand side of the slide, and we will reassess capital allocation priorities on a regular basis against market conditions. The first is organic growth. Driven by modernization ends by our green ventures. That is to leave the closest to our core operating business. Next to that, we would look at acquisitions or inorganic atoms, selective, opportunistic entry points, where the numbers work, and that only once our balance sheet has the heteroem fit. Then, there is distribution to shareholders, in addition to our existing dividend policy. And, within this lever, our sustainable dividend policy carries priority. share buybacks remain one additional option we keep available. With a substantial discount of the share price versus the NTA, this option forms the natural hurdle rate for alternative users of capital within the first. Finally, further leveraging beyond the circa 45% range, their target. Rating hedging and refinancing flexibility have value in their own right. especially in a market that remains volatile. So, this option stays on the list for resilience and balance sheet flexibility and that is exactly the discipline that got us there. The point I want you to take away is this. Capital gets deployed where it earns the most and that assessment stays dynamic rather than fixed. The discipline behind it is concert. The same HFO-based steering that got us got our LTV down to 45%. We'll gather how we use the next euro from here. And that discipline is also exactly what carries into the overview of our H1 numbers on the next slide. Let me now turn to the financial overview. The numbers on this slide confirm that we are fully on track for our 2026 guidance across every metric that matters. Starting with rents. Netcode REN stands at 473.4 million euros, reflecting like-for-like growth of 3.7% in 1981 and 3.4% on a reported basis due to effects from disposals. I will not repeat the details from the previous slide, but the key message is this. The REN trajectory is intact, predictable, and structurally supported. On the EBITDA margins, We turn in at 77.8%, which is fully in line with our full-year guidance. AFFO of 110.5 million euros reflects the decline of 12.7% year-on-year for H1. I cover the bridge in Q1. Quebec's phasing and cash interests step up, and H1 confirms that reach. What matters now is the forward pitch here. With H2 expected to be meaningfully stronger, we are fully comfortable reiterating our full-year AFFO guidance of 220 to 240 million euros. The split between H1 and H2 is intentional and anticipated. The key leaders will be slightly lower investments as well as subsidies which we expect to materialise in H2. FFO1 came in at 230.5 million euros, down 4.4%. The same phasing logic applies. Our full-year FFO1 guidance of 475 to 495 million euros remains intact, and the H2 run rate implied by that range is clearly stronger than H1, which is exactly what we expect. On the key drivers, Rent growth at 3.7% like for like and vacancy at 2.3% is the primary driver. The margin headwind from lower subsidies and higher investments is a pure phasing issue. The key takeaway from this slide is straightforward. H1 was solid, guidance is confirmed and H2 will be stronger. Cash flow trajectory, margin recovery and rent growth. all point in the same direction. We enter the second half with full confidence in the full year numbers. And with this, I hand it over to Volker for the operational highlights.

Thank you, Lars, and good morning, everyone. I will start with the rent development on slide 8. On a like-for-like basis, the average rent per square meter in LEG's portfolio rose by 3.7% year-on-year to €7.21. This means we are comfortably on track to deliver on our rental guidance for full year 2026. Looking at the free finance segment of our portfolio, we see a particularly good performance in the stable and high growth markets with rent growth of 3.8% and 3.9% respectively. This clearly underlines the operating strength and resilience of our portfolios. 2026 is a cost-rent adjustment year where we can also increase rents of our subsidized units based on the CPI development. As a result, the rents in our subsidized portfolios were up 3.2% compared to the previous year. Regarding the breakdown of drivers, rent tables and modernization reletting each contributed 1.6 percentage points, while cost-rent adjustment added further 0.5 percentage points. As always, you can find an overview in the appendix, it is on slide 26, of upcoming rent tables for top locations in our portfolio. And to give some color on most recent rent tables, the new table for Bielefeld in Westphalia implies an uplift of around 8% for a typical LEG apartment and the table for Gütersloh, also in Westphalia, of more than 7%. Finally, on vacancies. If our vacancy rate came further down by another 20 basis points to a low level of 2.3%, reflecting strong demand for our assets and our ability to quickly refurbish and re-let vacant apartments. Moving to investments on slide 9. In the first half, adjusted investments amounted to 202 million euros or 18 euros and 19 cents per square meter. This is well in line with our full-year target of more than €35 per square meter. It is also a more even distribution than last year, which was characterized by the gradual integration of BCP. Hence the 10% increase in investments in H1-2026 compared to the previous year. In the first six months, CapEx accounted for €112.3 million or €10.11 per square meter, while we have maintenance expenses of 89.7 million euros or 8 euros and 8 cents per square meter. The cap ratio of 56% was unchanged compared to the previous year. Coming to slide 10 and our value-add services. For LEG, these operations are both a strategic pillar and a growth driver. In the first half of 2026, The contribution to FF01 before consolidation was 28 million euros. Please note that this number only relates to the services shown on the left-hand side of the slide, which include, amongst others, the management and steering of refurbishment projects, our technician and craftsman services, and our energy and heating business. Our green ventures, shown in the middle of the slides, are not yet included in the FFO1 number shown here, but they will become a meaningful growth contributor over the next few years. With these ventures, we also contribute to decarbonization, one of the main and most urgent tasks in our sector. One of these ventures is Tamius. and I am pleased to say that the Fraunhofer Institute scientifically confirmed the effectiveness of Termius Pro, the AI-supported thermostat. So far, only the basic functions of Termius Pro have been examined. These are precise temperature control and adaptive digital hydraulic balancing. The study confirms an average saving in energy consumption of 40%. This corresponds to an average annual savings of about 170 euros for a tent. And this only applies to the basic version of the premises with the roll-out of additional functions, further savings can be expected. Let's now turn to disposals on slide 11. Year-to-date, we have completed or signed sales for more than 1000 units with total proceeds of 78 million euros. Of these, 237 units were transferred in Q2 for around 24 million euros. The remaining 552 units with gross proceeds worth around 36 million euros are due for closing in the second half of this year. On slide 35, we have gathered external research figures on the German transaction markets in the first half of 2026. The market is still characterized by a comparatively low number of large volume teams and scarcity of international capital. Against this background, our ability to offer smaller portfolios or even individual multifamily houses sized to match buyer appetite is a genuine structural advantage. We also stick to our disciplined approach. We sell only non-coexistence and only at or above book value. Our total program still comprises up to 5,000 units. With this, I hand over to Kathrin.