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Like-for-Like Income Growth: 5.2% growth across the whole portfolio.

EPS Growth: Up 3.2% for the half year.

Dividend Increase: Up 2.2% for the interim period.

NTA Per Share: Down 1.3% to 863p.

Net Debt to EBITDA: Target to reduce below 7x within the next two years.

Loan-to-Value (LTV): 38.9%, with a target to reduce below 35% over time.

Office Occupancy: Nearly 99%, significantly ahead of the overall London market.

Retail Occupancy: Up to almost 97%.

Overhead Cost Savings: Target savings of more than GBP10 million by next financial year.

Asset Sales: GBP644 million of assets sold, including nearly GBP650 million of low-returning assets.

Guidance for EPS Growth: Raised to the top end of the 2% to 4% range for the full year.

Future EPS Potential: Raised from 60p to 62p by financial year '30.

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Release Date: November 14, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Land Securities Group PLC (LDSCY) reported strong like-for-like net rental income growth, driven by high-quality office and retail assets.

The company raised its near-term and medium-term EPS outlook, indicating confidence in delivering material shareholder value.

Occupancy rates reached a decade high, reflecting strong customer demand for high-quality office and retail spaces.

The company achieved significant overhead cost savings, with a target to reduce costs by more than GBP10 million by the next financial year.

Land Securities Group PLC (LDSCY) successfully sold GBP644 million of low-returning assets, enhancing future income and EPS growth prospects.

Net debt to EBITDA increased, although the company targets reducing it to below 7x within the next two years.

NTA per share decreased by 1.3%, primarily due to the sale of low-returning assets.

The sale of Queen Anne's Mansions is expected to reduce reported earnings for the year by GBP7 million.

The company faces challenges in the residential sector, with policy changes needed to improve development yields.

There is a risk of execution in leasing up new office developments, which could impact future EPS growth.

Q: How do recent policy changes impact your residential development yields, and are they sufficient for you to commit to these projects? A: Mark Allan, CEO: The policy changes, including reduced affordable housing and community infrastructure levy charges, could improve yields by 50 to 75 basis points, bringing them to the high 5s. This is attractive for a sector with structural growth. However, decisions will be made towards the end of 2026 when we have more clarity on project-level details and other capital deployment opportunities.

Q: With the crowded retail investment market, are you confident in allocating capital at your target returns? A: Mark Allan, CEO: Yes, we are confident. The retail market is operationally intensive, and our relationships, expertise, and data give us a competitive advantage. We have a significant reach in footfall, and larger lot sizes may deter some investors, allowing us to capitalize on opportunities.

Q: What is your stance on share buybacks, and how do they fit into your capital allocation strategy? A: Mark Allan, CEO: Share buybacks are considered within our capital allocation framework. Currently, deploying capital into retail offers more accretive returns than buybacks. However, we remain open to buybacks if they become the most beneficial option for earnings accretion.

Q: Can you elaborate on the potential for retail ERV growth given your current leasing performance? A: Mark Allan, CEO: Our leasing evidence consistently exceeds ERVs, and with occupancy at 97%, the evidence for rental growth is strong. Retailer sales growth in our portfolio significantly outpaces the market, indicating room for rental value increases.

Q: How does the current development exposure impact your financial strategy, and what are your plans for future development? A: Mark Allan, CEO: We plan to reduce development exposure to improve our risk profile and EPS growth. We aim to release half of our capital employed in predevelopment assets and maintain lower development exposure, focusing on income-generating assets for sustainable EPS growth.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.