Land Securities Group (LAND) investor relations material

Market trends and portfolio performance

• Customer demand is concentrated in prime locations, with office and retail momentum persisting strongly.

• London office construction costs have risen 41% over five years, while major retail destinations have a 2.3% vacancy rate, the lowest in over 20 years.

• Rents in top locations are rising at the fastest pace in nearly two decades.

• Occupancy rates are at a two-decade high, and rental uplifts in retail have doubled to 15%.

• Office rents are 17% reversionary, indicating significant upside potential.

Financial strategy and growth outlook

• Debt maturity is twice the sector average, and overhead costs are at a 20-year low.

• Development exposure has been reduced by about 80% by late summer FY26.

• Top-line growth is expected to accelerate EPS growth, with a clear framework for capital allocation.

• High single-digit EPS growth is targeted by FY28, with a 5% CAGR EPS potential by FY30.

• Low double-digit total return is projected, with a 5.8% income return at NTA plus 5% growth per annum.

Drivers of earnings growth

• Around 80% of EPS growth is expected from the existing platform and portfolio.

• Key drivers include capturing reversion, like-for-like NRI growth, leasing up near-term developments, and asset rotation.

• Planned asset rotation will invest £1bn in retail, with potential FY30 EPRA EPS of about 62p.

• Refinancing based on the current yield curve is expected to support EPS growth.