How Is Land Securities Group Plc (LSE:LAND) Trading Today?

Land Securities Group Plc (LSE:LAND) shares were unchanged at around 696.0p today, following full-year results to 31 March 2026 that showed rents growing at their fastest pace in nearly two decades and occupancy at a 20-year high.

Like-for-like net rental income rose 4.6%, and EPRA Earnings Per Share rose 2.2% to 51.4p. The Dividend increased 2.0% to 41.2p per share, and EPRA net tangible Assets per share rose 0.9% to 882p.

Estimated rental values rose 6.4% over the year, and portfolio occupancy increased to 98%.

About Land Securities Group Plc

Landsec is one of the UK's largest commercial property companies, with a portfolio of offices, retail destinations and urban opportunities valued at around £10.8 billion. Its portfolio includes London offices and major retail destinations such as Liverpool ONE.

The group is led by Chief Executive Mark Allan, who has focused on two market-leading platforms, an office-led and a retail-led business, and on improving earnings and returns.

LSE:LAND therefore offers exposure to UK commercial property income and development.

Landsec's buildings are designed to meet the needs of modern occupiers, with a focus on location, sustainability and amenities. This approach has contributed to high occupancy and attractive rental growth, and the group has been investing in its best assets to maintain their appeal.

FY2026 Results

The portfolio valuation rose 1.2% to £10.8 billion, and the total accounting return was 5.6%. Net Debt was £4,234 million, and the loan-to-value ratio improved to 38.7% from 39.3%, while net debt to EBITDA improved to 8.4 times.

Management said Landsec is in excellent shape, with customer Demand remaining high across both offices and retail.

Net rental income rose to £284 million in the first half, with like-for-like growth contributing £12 million, and the group has said it expects continued income growth as recent lettings come into effect. EPRA earnings per share was at the top end of guidance despite the impact of asset sales.

Offices and Retail

Office-led like-for-like income rose 6.0%, with portfolio reversion rising to 17%, reflecting good leasing interest in recent developments. Of the £45 million of estimated rental value that completed in the second half, 54% was already let, and a further £35 million is due to complete in the summer.

With the portfolio effectively full, uplifts in rent on relettings and renewals virtually doubled over the year to around 15%.

The retail portfolio has also performed well, with growth in destinations such as Liverpool ONE, where customer visits and rental growth have been supported by a broad mix of tenants and leisure uses. The group has described its retail platform as delivering sustainable income growth.

Earnings Outlook

The group expects around 80% of its expected earnings per share growth by the 2030 financial year to come from its existing portfolio and operating platform, meaning growth does not rely on Investment market activity. It previously set an EPS ambition of 62p for the 2030 financial year.

Net debt to EBITDA is expected to reduce to below 7 times within the next two years as income grows and committed development exposure falls to around 2% of portfolio value.

The group has said that dividend growth will follow earnings growth, and it has set out its medium-term plan at a Capital Markets event in September 2025. Management has highlighted lower overheads and reduced development exposure as additional contributors to earnings.

Capital and Disposals

During the year, Landsec sold more than £700 million of assets, a programme that management described as Rebalancing the portfolio towards higher-return opportunities. The proceeds contributed to lower borrowing and improved financial flexibility.

The dividend has grown alongside earnings, and management expects dividends to continue to grow in line with EPS.

Growth Catalysts

Possible catalysts for LSE:LAND include continued rental growth in London offices, lettings of recent developments, performance of retail destinations, cost efficiencies and reduced development exposure. A lower debt ratio gives the group more flexibility.

Tenant demand for high-quality, well-located space continues to support the portfolio.

The group's pipeline of developments completing over the next year includes high-specification office space in central London, where demand for quality space has remained resilient. Active asset management of its existing buildings, including refurbishments and Lease events, provides further income opportunities.

Factors to Monitor

Property results are influenced by interest rates, valuations, tenant demand, construction costs and economic conditions. Valuations can move with market yields.

Investors typically follow like-for-like income, occupancy, net tangible assets, loan-to-value and dividends.

Conclusion

Landsec's unchanged price of around 696.0p today follows full-year results showing 4.6% like-for-like income growth, 98% occupancy and a 2% higher dividend.

Rental growth, occupancy, lower Leverage and dividend growth remain the central themes for LSE:LAND.

For those following LSE:LAND, half-year results will provide the next check on lettings, valuations and progress against the group's 2030 plan.