Short sellers squeeze LEG Immobilien as German real estate struggles
LEG Immobilien SE is facing growing pressure as short sellers target the German property firm. The company's share price has dropped sharply while competitors like Aroundtown and TAG Immobilien have seen gains. Rising interest rates and regulatory hurdles are adding to the challenges across the real estate sector.
Since mid-2025, short-selling activity against LEG Immobilien has intensified. The stock hit a low of €65 per share in the final quarter of that year, underperforming peers. Aroundtown's shares climbed to €3.20, and TAG Immobilien reached €12.50 by March 2026.
The company's focus on stable markets, such as the Ruhr region, has helped shield it from some geopolitical risks. However, occupancy rates remain steady, but rent growth opportunities are limited. Analysts are keeping a close watch on its loan-to-value ratios, which could worsen under current market conditions.
German pension funds hold large stakes in LEG Immobilien, putting its resilience to the test. The increased short interest, disclosed under BaFin's transparency rules, has raised questions about the firm's future. Yet, its below-average valuation is drawing attention from value investors who see potential for a recovery.
LEG Immobilien's struggles come amid broader sector difficulties, with rivals also feeling the strain. The company's ability to weather short-selling pressure and market volatility will determine its next steps. For now, its share performance remains weak compared to industry peers.
