Key Highlights

  • Land Securities Group PLC (LSE:LAND) offers a Dividend Yield of 6.07%.
  • The dividend for the year to 31 March 2026 rose 2.0%, with EPRA Earnings Per Share up 2.2% to 51.4 pence.
  • Rents grew at their fastest pace in nearly two decades, and occupancy reached a 20-year high.
  • Half-year results for the six months to 30 September 2026 are due on 13 November 2026.

Company Overview

Land Securities Group PLC (LSE:LAND), known as Landsec, is a FTSE 100 real estate Investment trust and one of the UK's largest commercial property companies. Its portfolio is focused on prime London offices and major retail destinations, with mixed-use developments forming part of its long-term pipeline.

The shares offer a dividend yield of 6.07%. As a REIT, Landsec must distribute most of its property rental profits, making the dividend closely linked to earnings.

Dividend Growth

Landsec has delivered steady dividend growth. For the year to 31 March 2026, the dividend rose 2.0%, supported by like-for-like income growth and overhead savings. The Interim Dividend for that year was 19.0 pence per share, up from 18.6 pence, paid partly as a Property Income Distribution of 13.6 pence and partly as an ordinary dividend of 5.4 pence.

The company has said dividends are expected to grow alongside earnings per share, giving investors a clear link between operating performance and income.

Earnings and Cover

EPRA earnings per share rose 2.2% to 51.4 pence in the year to March 2026, despite a 1.8% dilutive effect from selling Queen Anne's Mansions. EPRA earnings reached £382 million. Like-for-like net rental income grew 4.6%, and overhead costs fell 15%. With EPRA EPS of 51.4 pence, the dividend is covered by recurring earnings, consistent with REIT practice.

Management expects a 4% impact on EPS in the current year from disposals but sees high single-digit EPS growth in the year to March 2028 and around 5% compound annual EPRA EPS growth to 2030.

Rental Momentum

Demand for Landsec's Assets is healthy in the prime segment. Estimated rental value growth accelerated to 6.4% for the year, the fastest in nearly two decades, and occupancy rose to a 20-year high. Recently completed developments are letting well, with £45 million of rental value completed in the second half already 54% let and a further £35 million completing in the summer of 2026.

Retail destinations have also seen rental growth as the best-located centres benefit from occupier consolidation. Retailers are concentrating on fewer, larger flagship stores in prime locations, and Landsec's major shopping destinations are well placed to capture that demand. In offices, the flight to quality continues, with occupiers prioritising modern, energy-efficient buildings in central London, which supports both occupancy and rental growth at Landsec's newer developments. Together, these trends provide a growing income base for dividends.

Balance Sheet and Disposals

Landsec sold more than £700 million of assets generating limited or no return, including Queen Anne's Mansions, pre-development sites, retail parks and smaller London offices. Group loan-to-value fell slightly to 38.7%, and net Debt to EBITDA improved to 8.4 times. Management expects this ratio to fall below 7 times within two years as income grows and committed development exposure falls to about 2% of portfolio value.

EPRA net tangible assets per share rose 0.9% for the year and 2.2% in the second half, suggesting property values have stabilised.

Upcoming Results

Half-year results for the six months to 30 September 2026 will be released on 13 November 2026. Investors will focus on rental growth, leasing progress, the interim dividend and any update to earnings guidance after the disposal programme. A rise in the interim dividend above last year's 19.0 pence would confirm management's confidence in the earnings trajectory.

Risks

Key risks include weaker Demand for offices if economic conditions deteriorate, structural pressure on secondary retail, higher interest rates affecting valuations and refinancing costs, and execution on development projects. Gearing, though reducing, remains a Factor for the group's financing costs. The disposal programme also temporarily reduces earnings, so dividend growth may be modest in the near term until income from new lettings and developments replaces income from assets sold.

Is the Dividend Sustainable?

The dividend at Land Securities Group PLC (LSE:LAND) appears sustainable, backed by recurring rental earnings, improving occupancy and accelerating rents. With EPS growth expected to resume after disposal effects and debt falling steadily, the 6.07% yield offers income with scope for gradual increases.