LEG Immobilien AG: Further acquisitions in core markets

• Purchase of two attractive portfolios with 1,400 units in LEG's core markets
• Acquisition of property portfolios in special situations offers particular potential for increases in value
• Positive effects on FFO per share expected even after conclusion of financing

LEG Immobilien AG has acquired another two portfolios with a total of around 1,400 residential units. The properties are distributed evenly between high-growth markets such as Düsseldorf and attractive markets such as Dortmund, Essen and Wuppertal. With a purchase price of around EUR 98 million, the initial net rental yield is 5.8%. The vacancy rate is currently above 25%, meaning that there is significant potential for increases in value here.

These acquisitions include the purchase of a portfolio of 1,145 residential units that is in a classic turnaround situation and has a short-term vacancy rate of more than 30%. LEG can create significant added value here with its leading management expertise.

In addition, the portfolio of Düsseldorfer Ton- und Ziegelwerke AG was acquired by way of a takeover offer to the company's shareholders. In this special situation, LEG was able to purchase a very high-quality portfolio of 250 residential units, located mostly in Düsseldorf.

Even after the complete conclusion of the financing, LEG expects that these transactions will still have a positive impact on FFO per share right from the start.

'We are pleased to be able to continue our successful acquisition strategy. With these acquisitions, we are benefiting considerably from our leading market position in LEG's core markets and can apply our leading management expertise,' says Thomas Hegel, CEO of LEG Immobilien AG.

Since the beginning of the year, LEG has acquired a total of around 3,500 residential units in its core markets. LEG remains confident that it will also be able to continue this value-adding external growth over the remainder of the year. Specific reviews are currently in progress for further portfolios.

About LEG

With around 130,000 rental properties and approximately 350,000 residents, LEG is one of Germany's leading listed housing companies. The company has eight branch offices in North Rhine-Westphalia, providing personal local contact. LEG generated rental and lease income of around EUR 763 million in the 2016 financial year.

Investor Relations contact:

Burkhard Sawazki

Tel. +49 211 45 68-204
e-mail: burkhard.sawazki[at]­leg.ag

Press contact:

Jürgen Homeyer

Tel. +49 211 45 68-325
e-mail: juergen.homeyer[at]­leg-wohnen.de

Disclaimer

This publication constitutes neither a solicitation to buy nor an offer to sell securities.

To the extent that we express forecasts or expectations or make forward-looking statements in this document, these statements can entail known and unknown risks and uncertainties. These statements reflect the intentions, opinions or current expectations and assumptions of LEG Immobilien AG. The forward-looking statements are based on current planning, estimates and forecasts, which LEG Immobilien AG has made to the best of its knowledge, but that are not a statement on their future accuracy. Actual results and developments can therefore differ materially from the expectations and assumptions expressed.