The real estate group LEG has posted a high loss in 2023 after significant devaluations of its real estate portfolio. The bottom line is that the Düsseldorf-based group recorded a loss of around 1.5 billion euros, as it announced on Monday. However, the devaluation pressure eased in the second half of the year. LEG boss Lars von Lack was satisfied overall – because the group had exceeded some of its goals in operational business. “For LEG, the peak of the real estate crisis is over,” he emphasized.
LEG’s operational business went smoothly last year, thanks to increased rents and falling vacancies. The cash inflow (AFFO) reached 181.2 million euros and was therefore above the forecast range of 165 to 180 million euros. The shareholders should therefore receive a dividend of 2.45 euros per share; there was no distribution for the previous year. In 2024, AFFO, the company’s key financial indicator, should be in a range of 180 to 200 million euros, LEG confirmed.
Rapidly rising interest rates from the European Central Bank (ECB), skyrocketing construction costs, high inflation and a lack of large transactions have caused problems last year for real estate groups that have been spoiled by growth for years. Industry leader Vonovia had also significantly devalued its properties.