Land Securities Group (LSE:LAND) has reported EPRA earnings per share of 25.9p for the half year to 30 September, broadly stable on 25.8p a year earlier, in line with its guidance for the full year.
The London-listed real estate investment trust, which owns and manages a portfolio of UK offices, shopping centres and retail destinations, said like-for-like net rental income grew 6.2% in the half, up from 4.6% in the prior full year and ahead of its guided 3-5% range for the year.
EPRA earnings held flat at £192m as the growth in rental income and a 9% cut in overhead costs offset a £10m earnings hit from last year's sale of QAM.
IFRS profit before tax more than doubled to £243m, from £98m a year earlier, driven by an £88m valuation surplus compared with a £6m deficit in the prior-year period.
Landsec raised its interim dividend 2.1% to 19.4p, from 19.0p.
The office-led portfolio delivered like-for-like income growth of 5.4%, with occupancy at 97.7%, though that was down 90 basis points largely on lease expiries at its sole Paddington asset; deals agreed since the period-end have lifted occupancy back to 98.0%.
Retail-led like-for-like income accelerated to 6.3%, with occupancy up 10 basis points to 97.8%, the highest level in more than two decades, and retail sales across the portfolio up 3.7% against a 1.4% decline in the UK national average.
Landsec raised £500m of new equity after the period-end to fund £611m of retail acquisitions, completing the purchase of Metrocentre in Gateshead and an additional stake in Bluewater, two assets the company has described as top-10 UK retail destinations.
On a pro-forma basis for those transactions and the equity issue, net debt to EBITDA fell to 7.7x from 8.4x at the March year-end, and loan-to-value dropped to 37.1% from 38.7%.
"In a more uncertain world, the characteristics of our earnings matter," said chief executive Mark Allan, adding that the group's "long-dated financing, efficient cost base, and substantially completed development capex" give it "both resilience today and visibility on an acceleration in EPS growth ahead."
Read more about Land Securities
- 13/10/26Landsec lifts Bluewater stake to 74%
- 01/10/26Landsec buys full control of Metrocentre for £516m
- 29/06/26Landsec called a Buy after 55 Old Broad Street sale
Landsec said it expects EPRA EPS for the year to March 2027 to be stable versus FY26, in line with previous guidance, with FY28 now expected to deliver "improved" high-single-digit percentage growth as the recent retail acquisitions add to upside from development leasing and like-for-like income growth.
The company said it has improved visibility on its FY30 target of c.62p in EPRA EPS, implying roughly 5% compound annual growth from FY27, noting that roughly 90% of that target is now driven by its current portfolio and platform, up from about 80% at the full-year stage in May.
Committed development capital expenditure has been reduced to £133m, with Landsec saying it has decided not to pursue the Lewisham residential development as risk and return prospects were insufficient.
The company expects net debt to EBITDA to reduce to comfortably below 7x as income grows and committed development exposure falls to less than 2% of portfolio value.
