German property company, LEG Immobilien, is predicting that its full-year earnings will reach the higher end of its guidance. This is due to the continuing high demand for affordable housing. The company also forecasts growth for next year.
LEG Immobilien now expects its adjusted funds from operations (AFFO) to be at the upper end of its forecast range, which is between 165 million euros and 180 million euros ($176.7 million-$192.8 million). Furthermore, the company confirms an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of 80%.
Growth Forecast for 2024
Looking ahead to 2024, LEG Immobilien predicts an AFFO range of between EUR180 million and EUR200 million.
During the third quarter, LEG Immobilien's AFFO reached EUR58.3 million, a significant increase compared to EUR35.2 million during the same period last year. The company's EBITDA stood at EUR157.8 million, up from EUR154.7 million, with rental income rising by 4.4% to EUR209.2 million.
Although LEG Immobilien saw a decline in net profit, dropping from EUR126.4 million to EUR57.3 million, the company remains optimistic about its overall performance.