Land Securities Group (LAND) H2 2025 earnings summary

Executive summary

• Achieved strong operational and financial performance, with high like-for-like income growth in London and retail, which comprise 83% of the business, and a focus on sustainable income and EPS growth.

• Portfolio repositioning over the past four years has driven resilience and growth, emphasizing high-quality, scarce assets.

• EPS grew 0.4% year-over-year, ahead of initial guidance, and dividend increased by 2%.

• Return on equity reached 6.4%, supported by a 1.7% increase in NTA per share.

• Strategic capital allocation aims to drive near-term EPS growth and rebalance the portfolio toward residential-led assets for long-term value.

Financial highlights

• Like-for-like income growth was 5% overall, with retail and London segments seeing uplifts on relettings and renewals of 8%.

• Net rental income rose to £552 million, despite a £24 million reduction from timing differences in acquisitions and disposals.

• EPRA earnings rose 0.8% year-over-year to £374m; EPRA EPS up 0.4% to 50.3p.

• Dividend per share increased 2.0% to 40.4p; EPRA NTA per share up 1.7% to 874p.

• Portfolio value increased by 1.1%, driven by 4.2% ERV growth and stabilized yields.

Outlook and guidance

• EPS expected to grow by 2-4% in the coming year, underpinned by continued like-for-like income growth and cost savings.

• Targeting around 20% EPS growth by 2030, after absorbing a 10% headwind from rising interest costs and lease expiry.

• Dividend growth expected to continue, supported by compounding EPS and maintaining 1.2-1.3x cover.

• Overhead costs projected to fall below £65 million by 2027, a 23% reduction over four years.