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1. Company Snapshot

1.a. Company Description

At Landsec, we build and invest in buildings, spaces and partnerships to create sustainable places, connect communities and realise potential.We are one of the largest real estate companies in Europe, with a £11 billion portfolio of retail, leisure, workspace and residential hubs.Landsec is shaping a better future by leading our industry on environmental and social sustainability while delivering value for our shareholders, great experiences for our guests and positive change for our communities.

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1.b. Last Insights on LAND

Land Securities Group plc's recent performance has been driven by robust like-for-like income growth and high occupancy rates, as reported in its Q2 2026 earnings call. The company has also improved its guidance amid a strategic shift from office investment, citing "clear positive momentum" across the business. Analysts have noted minimal change in sentiment, with a slight decrease in the consensus price target from £6.95 to £6.89. The company's focus on debt reduction and cost savings is also a positive factor.

1.c. Company Highlights

2. Landsec's Strong H1 Results and Ambitious Growth Plans

Landsec's half-year results showcase a robust financial performance, with EPRA EPS rising by 3.2% to £0.258, slightly below analyst estimates of £0.2629. The company's net rental income grew strongly, driven by £12 million like-for-like income growth, and the gross-to-net margin improved by 130 basis points to 87.7%. Overhead costs decreased by £2 million, while finance costs increased as expected. The company's earnings per share (EPS) growth is a positive sign, and the 2.2% increase in the interim dividend is a welcome move for income-focused investors.

Publication Date: Nov -16

📋 Highlights
  • EPS Growth Outlook Raised: Landsec increased its medium-term EPS target to 62p by FY30, a 20% uplift from prior guidance, with compound annual growth of 4-4.5%.
  • Capital Recycling Progress: Sold £644 million in low-return assets, enhancing capital deployment focus on high-quality office/retail (now ~90% of income), with further GBP 650M disposals planned.
  • Cost Efficiency Gains: Overhead costs reduced by £2M YoY, targeting £65M by FY27 (25% cut from FY23), and GBP 10M+ savings by FY26 via ongoing reductions.
  • Strong Operational Performance: Achieved 5.2% like-for-like income growth (vs. 4-5% guidance) and 3.2% EPRA EPS increase, driven by high occupancy and rental uplifts in core assets.
  • Financial Leverage Reduction: Net debt-to-EBITDA target lowered to <7x by FY27 (from <8x), reflecting disciplined capital recycling and improved gross-to-net margin (87.7%, +130 bps).

Revenue Growth and Margin Expansion

The company's like-for-like net rental income growth was 5.2%, ahead of its full-year guidance, driven by high-quality market-leading platforms. The retail portfolio showed strong performance, with 19% growth in retailer sales over three years, outpacing the market's 3% growth. This supports the potential for rental value growth, and the company's focus on delivering sustainable income and EPS growth is evident.

Valuation and Outlook

With a P/E Ratio of 11.58 and a Dividend Yield of 4.3%, Landsec's valuation appears reasonable, considering its growth prospects. The company's net debt to EBITDA ratio is expected to reduce to below 7x within the next 2 years, down from the current 10.31x. Mark Allan, the company's representative, mentioned that they have reasonable visibility on their capital recycling plans, and the disposal of lower-yielding London office assets is expected to fund acquisitions within a similar timeframe.

Growth Strategy and Capital Allocation

Landsec is targeting an EPS growth of around 20% to 62p by financial year '30, driven by capturing the growing reversion in its existing portfolio, further overhead savings, and a move to a lower level of development exposure. The company is well-placed to drive substantial shareholder value with a strong capital base and attractive existing income return. The focus remains on rotating office assets into residential over the medium to long term, and the company is actively selling almost £650 million worth of assets to achieve this goal.

Capital Recycling and Development Plans

The company's capital recycling plans are on track, with £644 million of assets sold in the first half, and further disposals expected in the second half. Landsec is targeting dominant shopping centers for acquisitions within a 12- to 18-month window and is confident about working with third-party capital on potential projects. The company's development plans are focused on build-to-rent residential, leveraging their skill set, and they are targeting IRRs higher than 10% to 12% on residential developments.

3. NewsRoom

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Land Securities Group PLC (LDSCY) (Q2 2026) Earnings Call Highlights: Strong Growth in Income ...

Nov -14

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Landsec improves guidance amid shift from office investment

Nov -14

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How Analysts See the Evolving Story for Landsec Amid Real Estate Market Challenges

Sep -20

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Landsec sells Ministry of Justice office block to Arora Group for £245m

Aug -18

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River Island averts collapse after defeating Mike Ashley in rent cut battle

Aug -08

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The 'cheapest' stocks on FTSE 100 as UK blue-chip index trades at record high

Aug -01

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Land Securities Group PLC (LDSCY) (FY 2025) Earnings Call Highlights: Strong Operational ...

May -17

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Landsec swings to profit as London rents rise and shops get bigger

May -16

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.18%)

6. Segments

Central London

Expected Growth: 8.5%

Central London's 8.5% growth, driven by Land Securities Group plc, is attributed to strong demand for prime office and retail space, limited supply, and infrastructure investments. Proximity to major transport hubs, business districts, and iconic landmarks fuels growth. Additionally, the area's desirability and limited availability of land contribute to its attractiveness, driving up property values and rents.

Major Retail

Expected Growth: 8.0%

Strong demand for retail space, driven by e-commerce growth and increasing consumer spending, coupled with Land Securities' strategic asset management and active capital recycling, has contributed to the 8.0% growth in the Major Retail segment.

Subscale Sectors

Expected Growth: 7.5%

Land Securities Group plc's 7.5% subscale sector growth is driven by increasing demand for urban logistics and e-commerce, coupled with a strong development pipeline and strategic asset management. Additionally, the company's focus on high-quality, well-located assets and proactive capital recycling contribute to its growth momentum.

Mixed-use Urban

Expected Growth: 8.2%

Mixed-use urban developments from Land Securities Group plc, with 8.2% growth, are driven by increasing demand for live-work-play environments, urbanization, and infrastructure investments. Additionally, the scarcity of urban land, growing e-commerce, and the need for experiential retail spaces contribute to this growth.

7. Detailed Products

Commercial Property Investment

Land Securities Group plc invests in and manages a portfolio of commercial properties, including offices, retail spaces, and industrial units, generating rental income and capital appreciation.

Retail and Leisure Property Development

The company develops and redevelops retail and leisure properties, such as shopping centers, restaurants, and cinemas, to create vibrant destinations that attract visitors and drive economic growth.

Residential Property Development

Land Securities Group plc develops and invests in residential properties, including apartments, houses, and mixed-use schemes, to provide high-quality homes and communities.

Urban Regeneration

The company partners with local authorities and stakeholders to regenerate urban areas, transforming underutilized sites into vibrant, mixed-use developments that drive economic growth and community renewal.

Property Management Services

Land Securities Group plc provides property management services, including asset management, property maintenance, and facilities management, to optimize property performance and enhance customer experience.

8. Land Securities Group plc's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Land Securities Group plc is moderate due to the availability of alternative investment options in the real estate sector.

Bargaining Power Of Customers

The bargaining power of customers is low for Land Securities Group plc as the company operates in a niche market with limited competition, giving it a strong bargaining position.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Land Securities Group plc as the company relies on a diverse range of suppliers, but has some dependence on key contractors and consultants.

Threat Of New Entrants

The threat of new entrants is low for Land Securities Group plc due to the high barriers to entry in the UK real estate market, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for Land Securities Group plc due to the competitive nature of the UK real estate market, with several established players vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 36.66%
Debt Cost 3.95%
Equity Weight 63.34%
Equity Cost 11.17%
WACC 8.52%
Leverage 57.87%

11. Quality Control: Land Securities Group plc passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
MERLIN Properties

A-Score: 6.4/10

Value: 5.8

Growth: 4.0

Quality: 6.9

Yield: 6.9

Momentum: 6.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
LondonMetric Property

A-Score: 6.4/10

Value: 4.5

Growth: 5.7

Quality: 7.3

Yield: 8.8

Momentum: 3.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Cofinimmo

A-Score: 6.4/10

Value: 4.8

Growth: 2.3

Quality: 5.9

Yield: 10.0

Momentum: 7.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Covivio

A-Score: 5.7/10

Value: 4.0

Growth: 4.2

Quality: 3.9

Yield: 9.4

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
LandSec

A-Score: 5.7/10

Value: 4.5

Growth: 3.2

Quality: 6.2

Yield: 8.1

Momentum: 4.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Unite

A-Score: 5.6/10

Value: 4.5

Growth: 6.3

Quality: 6.2

Yield: 6.9

Momentum: 2.0

Volatility: 7.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.88$

Current Price

5.88$

Potential

-0.00%

Expected Cash-Flows