Landsec profit more than doubles as rental growth boosts outlook

Land Securities Group PLC on Friday reported a sharp rise in half-year profit, supported by property valuation gains, as strong rental growth prompted the company to improve its earnings outlook for financial 2028.

The London-based commercial property developer and investor said pretax profit rose to £243 million in the six months ended September 30 from £98 million a year earlier, reflecting a £88 million property valuation surplus, compared with a £6 million deficit previously.

EPRA earnings remained unchanged at £192 million, while EPRA earnings per share edged up to 25.9 pence from 25.8p.

Like-for-like net rental income increased by 6.2%, driven by growth of 5.4% across the office portfolio and 6.3% in retail properties.

Landsec raised its interim dividend by 2.1% to 19.4p per share from 19.0p.

The company now expects full-year like-for-like rental income growth at the upper end of its 3% to 5% guidance range, while maintaining its forecast for broadly stable EPRA EPS in financial 2027.

For financial 2028, Landsec anticipates improved high-single-digit percentage growth in EPRA EPS, supported by recent retail acquisitions and development leasing.

Landsec also reiterated its potential to achieve EPRA EPS of around 62p by financial 2030, representing compound annual growth of approximately 5% between financial 2027 and 2030.

Since the period-end, Landsec has raised £500 million in new equity to fund £611 million of acquisitions, including Metrocentre and an additional stake in the Bluewater shopping mall.

Chief Executive Mark Allan said: "We have continued to deliver on our strategic objectives over the past six months, strengthening our positioning for a higher inflation, higher rate environment."

Shares in Landsec were up 1.2% to 704.00 pence in London on Friday morning.

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