Land Securities Group (LAND) Status Update summary

Strategic direction and market positioning

• Focus shifts to higher income, higher income growth, and lower cyclicality by rebalancing the portfolio towards retail and residential, reducing office exposure over time.

• Over £3bn of disposals since 2020 have created a high-quality, diversified portfolio and pipeline.

• Retail and office portfolios are nearly full, driving rental growth; residential pipeline targets over 6,000 homes in London and Manchester by 2030.

• Strategy leverages macro trends: urbanization, housing undersupply, inflation, and evolving customer expectations.

• Investments in technology and operational efficiency have already delivered £6 million in annualized cost savings.

Financial objectives and capital allocation

• Targeting compound EPS growth of around 20% by FY30, from 50p to around 60p, supporting continued dividend growth.

• Net debt to EBITDA targeted below 8x, with LTV expected to return to mid-30s after recent acquisitions and disposals.

• Retail investments yield 7.5–8% with IRRs over 10%; residential developments expected to deliver low double-digit returns and 5% net yields on cost.

• Dividend policy targets 1.2–1.3x cover, with semi-annual payments aligned to financial reporting.

• Capital recycling will fund growth in retail and residential, with £2 billion of office disposals and £0.8 billion of non-core asset sales planned.

Portfolio and operational performance

• Retail portfolio focused on top 1% of UK destinations, capturing 30% of all retail spend; retail sales now exceed pre-pandemic levels.

• Office portfolio is 98% occupied, with 10% reversionary potential and strong demand for Grade A space.

• Residential pipeline includes major projects in Finchley Road, Mayfield, and Lewisham, with phased delivery starting 2026.

• Cost efficiencies and technology investments expected to reduce overheads by £20 million versus 2023, despite inflation.

• Portfolio rebalancing will increase EPRA cost ratio due to higher operating costs in residential, but net income and growth quality will improve.