UK's Land Securities reports stable half-year EPRA earnings as overhead costs fell
UK's Land Securities reports stable half-year EPRA earnings as overhead costs fell
Overview
UK real estate REIT's half-year EPRA earnings and EPS stable year-on-year
IFRS profit before tax rose sharply, supported by a valuation surplus
Company raised £500 mln equity post-period to fund retail acquisitions, targeting income growth
Outlook
Landsec expects FY27 EPRA EPS to be stable vs FY26
Company sees FY28 EPRA EPS growing by a high-single-digit percentage
Landsec expects FY30 EPRA EPS to reach about 62 pence, implying c. 5% CAGR over FY27-FY30
Result Drivers
RENTAL GROWTH - Like-for-like net rental income rose 6.2%, driven by rental uplifts on relettings and renewals, and high occupancy in both office and retail portfolios
COST REDUCTION - Overhead costs fell 9% year-on-year, contributing to stable earnings despite the impact of asset sales
PORTFOLIO REPOSITIONING - Recent acquisitions of major retail assets and disposals of lower-growth assets are expected to enhance income growth and EPS
Company press release: ID:nRSM0169Da
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 EPRA Earnings |
| GBP 192 mln |
|
H1 EPRA Earnings Per Share |
| GBP 0.26 |
|
H1 Pretax Profit |
| GBP 242 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the diversified reits peer group is "buy"
Wall Street's median 12-month price target for Land Securities Group PLC is GBp715.00, about 2.7% above its November 12 closing price of GBp696.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 13 three months ago
Reuters Recommended Reads
Nov 11 - UK's Taylor Wimpey warns on annual profit as affordability woes deepen
Nov 12 - UK homebuilder Persimmon sees 2027 volume growth but flags cost pressures
Nov 12 - UK house sales outlook is darkest since 2023, RICS says
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)