Land Securities Group (LAND) H1 2025 earnings summary

Executive summary

• Like-for-like net rental income grew 3.4% year-over-year, with return on equity at 3.9% for the half year and EPS guidance raised due to strong operational execution and cost efficiencies.

• Portfolio repositioning toward high-quality, higher-return assets and robust demand for best-in-class space led to outperformance versus the wider market.

• On-site with £850m of London projects and ability to invest £1bn+ in residential by 2030, with a residential pipeline exceeding 6,000 homes.

• Strong customer demand and high occupancy in both London and retail segments, with rents and relettings above ERV.

• Confidence in deploying further capital in the second half, supported by a robust balance sheet.

Financial highlights

• EPRA earnings for the half year were £186m, with EPRA EPS at 25.0p, and dividend per share up 2.2% to 18.6p.

• EPRA NTA per share increased 1.4% to 871p, and portfolio value rose 0.9% as yields stabilized and ERVs grew.

• Gross rental income was £302m, down from £323m year-over-year due to non-core asset sales and lower surrender premiums, but like-for-like income increased by £7m.

• Loan-to-value stood at 34.9%, net debt to EBITDA at 7.4x, and interest cover at 3.8x.

• Income return for the half year was 2.9%, with annualized income return at NTA of 5.8%.

Outlook and guidance

• FY25 EPRA EPS is expected to match FY24, with FY26 ahead, before any upside from acquisitions.

• Like-for-like income growth for the year is now expected closer to 4%, above previous guidance of 2.8%.

• Dividend growth is targeted at a low single-digit percentage, with further operational efficiencies and income growth anticipated.

• ERV growth guidance remains at low- to mid-single-digit percentage across the portfolio.

• Targeting 8%-10% annual return on equity over time.