Panmure Liberum has repeated a Buy rating for Land Securities Group (LSE:LAND), with a price target of 705p, following the sale of 55 Old Broad Street.
The stockbroker, in a note, said it views the disposal as consistent with Landsec's active capital-recycling strategy, which has seen the REIT complete £705m of asset sales during its last financial year, albeit at a £74m net loss, as it repositions the portfolio and works to reduce leverage.
Landsec's most recent full-year results showed EPRA EPS of 51.4p, up 2.2%, with EPRA occupancy reaching 98.0%, a two-decade high, and ERV growth accelerating to 6.4%; management has guided for EPRA EPS to be broadly stable in FY27 before high single-digit growth in FY28 and a target of approximately 62p by FY30, implying a roughly 5% compound annual growth rate.
The key near-term proof point for the investment case remains execution on leasing up committed developments, which management expects to drive net debt to EBITDA below 7x within two years, from 8.4x at the last year-end.
