Land Securities Lifts EPS Outlook as Income Growth Accelerates

Land Securities Group (LSE:LAND) reported a strong set of interim results for the half year to 30 September 2025, delivering solid income growth despite a challenging macroeconomic backdrop. EPRA earnings per share rose 3.2% to 25.8 pence, supported by a 5.2% like-for-like increase in net rental income and a 6% reduction in overhead costs. This performance allowed the company to raise its interim dividend by 2.2% to 19.0 pence.

Portfolio metrics remained resilient, with occupancy improving 40 basis points to 97.7%—its highest level in nearly a decade. Rental uplifts on relettings and renewals averaged 10%, underscoring the group’s reversionary potential. “We continue to see clear positive momentum across every part of our business, notwithstanding the wider economic environment. Owning the right real estate has never been more important,” said Chief Executive Mark Allan.

Landsec has upgraded its like-for-like net rental income growth guidance for FY26 to around 4–5%, up from 3–4%, and now expects EPRA EPS growth to come in at the upper end of its 2–4% range, excluding the effects of the Queen Anne’s Mansions disposal. The company continued its capital recycling programme during the period, completing £644 million of disposals—mainly lower-returning assets—which resulted in a £67 million loss on sale and a 1.3% decline in EPRA Net Tangible Assets per share.

Medium-term earnings prospects have also improved. Landsec now targets EPS of approximately 62 pence by FY30, implying 4–4.5% compound annual growth from FY25, driven by stronger retail income growth, additional overhead efficiencies, and reduced development exposure.

Operationally, the office portfolio delivered 6.8% like-for-like rental growth with occupancy at 98.8%, while the retail-led segment achieved 5.0% rental growth alongside a 7.7% increase in retail sales. The group now aims to cut its net debt-to-EBITDA ratio to below 7x within two years—tightening its previous goal of below 8x—and expects its loan-to-value ratio to trend below 35% over time.