Land Securities Group (LAND) H2 2026 earnings summary

Executive summary

• Occupancy reached a 20-year high at 98%-99% in both office and retail segments, driving strong rental growth and income visibility.

• Like-for-like net rental income grew 4.6% year-over-year, exceeding guidance, with compound annual growth of 4% over four years.

• EPS increased 2.2% to 51.4p, at the top end of guidance, despite a drag from the Queen Anne's Mansions sale, supporting a 2% dividend increase.

• Portfolio valuation rose 1.2% to £10.8bn and NTA per share increased 0.9% to 882p.

• Strategic focus remains on sustainable income and EPS growth, with capital allocation shifting toward retail and away from new office development.

Financial highlights

• Net rental income grew 4.6% like-for-like to £562m, with office and retail segments growing 6% and 5.5%, respectively.

• EPRA earnings grew 2.2%, and dividends increased by 2% to 41.2p.

• Overhead costs reduced by 15% to £62m, now at a 20-year low, lifting operating margin by 160bps to 87.1%.

• Net debt reduced by nearly £100m, lowering LTV to 38.7% and net debt/EBITDA to 8.4x.

• Portfolio valuation up 1.2%, with ERV growth of 6.4%, the highest in nearly 20 years.

Outlook and guidance

• EPS expected to be stable in FY27 due to the QAM sale, with high single-digit EPS growth targeted for FY28.

• Compound annual EPS growth of around 5% projected through FY30, with 80% of growth from the existing portfolio.

• Net debt/EBITDA expected to fall below 7x within two years as developments lease up.

• Retail platform expected to deliver 4.5%-7% net rental income growth per year over the next few years.

• No significant new development planned in the near term; capital allocation focused on recycling out of lower-return assets and investing in retail.