16th May 2025 08:19
(Alliance News) - Land Securities Group PLC swung to an annual profit amid a gain on the revaluation of investment properties, as it reported on Friday strong demand for modern office space in London.
The London-based commercial property developer posted a pretax profit of GBP393 million for its financial year that ended March 31, swung from a GBP341 million loss the year before.
This was driven by a net surplus of GBP91 million on the revaluation of investment properties in financial 2025, against a GBP628 million deficit in financial 2024.
Land Securities had basic earnings per share of 53.3 pence in financial 2025, swung from a basic loss per share of 43.0p in financial 2024.
EPRA net tangible asset value per share rose 1.7% to 874p from 859p.
Land Securities recorded a 6.4% total return on equity for financial 2025, against negative 4.0% the year before.
Revenue grew 2.2% to GBP842 million from GBP824 million.
The company said: "Demand for modern, sustainable office space in London remains strong and in retail, brands continue to concentrate on fewer, but bigger and better stores in key locations."
Chief Executive Officer Mark Allan said: "Owning the right real estate has never been more important and, with a very healthy pipeline of occupier demand, this trend looks set to continue, providing a clear trajectory for further near and medium-term earnings per share growth."
The firm recommended a final dividend per share of 12.3p, up 1.7% from 12.1p a year ago. This would bring the total payout for financial 2025 to 40.4p, up 2.0% from 39.6p.
CEO Allan said: "Our capital allocation decisions from here are about ensuring that the growth outlook for our portfolio in 3-5 years' time is as positive as it is for our current portfolio today.
"That is why we have set out a clear plan to increase investment in major retail by a further GBP1 billion and establish a GBP2 billion+ residential platform by 2030, to be funded by rotating GBP3 billion of capital out of offices, non-core investments and low or non-yielding pre-development assets. Delivering on this strategy, whilst continuing to drive sustainable income and EPS growth, is our priority and we are firmly underway."
Further, like-for-like growth, efficiency improvements and portfolio rebalancing aim to enhance long-term growth, with the firm targeting around 20% EPRA earnings per share growth by financial 2030, with around 2% to 4% growth expected for financial 2026.
Land Securities shares were 0.6% lower at 600.00p each on Friday morning in London.
By Tom Budszus, Alliance News slot editor
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