Land Securities Group PLC (Landsec) released its half-year report for the period ended September 30, 2025, highlighting strong income growth and an increase in EPS outlook. The company reported EPRA EPS of 25.8p, up 3.2% from the previous year, driven by a 5.2% growth in like-for-like (LFL) income and a 6% reduction in overhead costs. This performance led to a 2.2% increase in the interim dividend to 19.0p per share.
Key financial highlights include
EPRA earnings of £192 million, up from £186 million in the prior period.
Profit before tax of £98 million, down from £243 million due to a £67 million loss on the sale of assets generating limited returns.
EPRA NTA per share of 863pdown slightly from 874p.
Net debt of £4.4 billionwith a Group LTV ratio of 40.3%.
Operationally, Landsec achieved strong LFL income growth across its office and retail platforms
Office LFL income grew 6.8%, with EPRA occupancy at 98.8% and rental uplifts on relettings/renewals at 6% <mark style="background-color:yellow">above</mark> previous rents.
Retail LFL income increased 5.0%, with EPRA occupancy stable at 96.7% and relettings/renewals 13% above previous rents.
The company also made progress in its residential development pipeline, securing planning consent for over 3,600 homes across four projects.
Landsec raised its guidance for FY26, expecting LFL net rental income to grow 4-5% (up from 3-4%) and EPRA EPS growth at the top end of 2-4% guidance. The company also increased its medium-term EPS growth potential, targeting c.62 pence by FY30, up from c.60 pence.
The companys strategy focuses on sustainable income and EPS growth, with a clear framework for capital allocation prioritizing investments in major retail destinations and maintaining a strong balance sheet. Landsec aims to reduce its net debt/EBITDA to below 7x within two years and expects its LTV to decrease to below 35% over time.
In summary, Landsecs half-year report demonstrates strong operational performance, with income growth driving an increase in EPS outlook. The companys strategic focus on sustainable growth, combined with its robust balance sheet and capital allocation framework, positions it well for continued success in the real estate market.
| Metric | Sep 2025 | Sep 2024 | Change % |
|---|---|---|---|
| Net rental income (£m) | 284 | 269 | 5.6% |
| EPRA earnings (£m) | 192 | 186 | 3.2% |
| IFRS profit before tax (£m) | 98 | 243 | -59.7% |
| Total return on equity (%) | 1.2 | 3.9 | -2.7% |
| EPRA earnings per share (pence) | 25.8 | 25.0 | 3.2% |
| Dividend per share (pence) | 19.0 | 18.6 | 2.2% |
| Combined portfolio (£m) | 10,778 | 10,880 | -0.9% |
| EPRA Net Tangible Assets per share (pence) | 863 | 874 | -1.3% |
| Adjusted net debt (£m) | 4,375 | 4,304 | 1.6% |
| Group LTV ratio (%) | 40.3 | 39.3 | 1.0% |
| Net debt (£m) | 4,400 | 4,341 | 1.4% |