Landsec boosts guidance amid strong performance in H1 of FY26

British real estate giant Landsec is experiencing positive momentum across all areas of its business, leading to increased earnings per share (EPS) guidance for the near and medium term.

For the six months ended September 30, 2025, Landsec reported EPRA earnings of 192 million pounds, a 3.2 percent increase from 186 million pounds in the prior period. EPRA EPS rose to 25.8 pence, up from 25.0 pence. Profit before tax was 98 million pounds, compared to 243 million pounds in the previous period, which benefited from a valuation surplus of 91 million pounds. The company's like-for-like net rental income grew by 5.2 percent, and overhead costs decreased by 6 percent.

"We continue to see clear positive momentum across every part of our business, notwithstanding the wider economic environment," said Mark Allan, chief executive of Landsec. "Owning the right real estate has never been more important, so we continue to benefit from our proactive portfolio repositioning over the last few years, and our entire business is also benefitting from a sharper focus on sustainable EPS growth as our primary performance objective, providing greater clarity in terms of priorities and decision making."

Landsec has raised its like-for-like net rental income growth forecast for FY26 to approximately 4-5 percent, up from the initial guidance of 3-4 percent. The company also expects FY26 EPRA EPS growth to be at the top end of the 2-4 percent guidance. Furthermore, Landsec has increased its potential FY30 EPRA EPS target from approximately 60 pence to approximately 62 pence, implying a 4-4.5 percent compound annual growth rate (CAGR) in EPS from FY25. The company aims to achieve a net debt/EBITDA ratio of below 7x within the next two years, down from the previous target of below 8x.

This article was made with assistance from AI.