Land Securities eyes growth as rents climb at fastest for 20 years

Land Securities Group PLC on Thursday said rents are growing at the fastest pace in nearly two decades as it reported lower profit for the 2026 financial year.

The London-based commercial property development and investment company said pretax profit fell 12% to £346 million in the 12 months to the end of March from £393 million a year earlier.

However, EPRA net tangible assets per share grew 0.9% to 882 pence from 874p, while EPRA earnings per share climbed 2.2% to 51.4p from 50.3p, at the top end of guidance.

Land Securities said net rental income was up 1.8% at £562 million from £552 million, or 4.6% on a like-for-like basis, ahead of initial 3% to 4% guidance for the year.

The firm raised its dividend to 41.2p for financial 2026, up 2.0% from 40.4p a year ago.

Chief Executive Mark Allan said: ‘Over the past few years we have actively positioned Landsec for a higher inflation and higher interest rate world. We have focused our portfolio on the best quality locations where customer demand is highest, scaled back development, reduced our overhead costs and maintained our strong capital base.

‘Occupancy is now up to a 20-year high and rents are growing at their fastest pace in nearly two decades. As a result of our actions, our strong top line growth will increasingly flow through to an acceleration in EPS growth in the near and medium term.’

Land Securities expects like-for-like net rent to rise between 3% and 5% in financial 2027, with ‘no signs’ of a slowdown in customer demand.

It forecasts stable EPRA EPS, in line with previous guidance, as growth in underlying earnings is offset by a 4% EPS impact from the effect of the sale of the QAM finance lease.

For financial 2028, Land Securities expects high single digit percentage growth for EPRA EPS, based on ‘current positive momentum’ in development leasing, with like-for-like income growth.

The firm says it continues ‘to see potential’ for financial 2030 EPRA EPS to grow to around 62p, underpinned by positive like-for-like income growth and development leasing.

Shares in Land Securities were up 1.5% at 579.00p on Thursday morning in London.

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