Property investment giant Land Securities, or Landsec, has seen a five per cent uplift amid a strategic shift in the company’s commercial property portfolio towards residential and retail property.
Pre-tax profits climbed to £395m from £341m, as the group sets its sights on investing £1bn in retail and over £2bn in a residential property platform, as reported by City AM.
EPRA earnings, which represent earnings from operational activities, nudged up to £374m in 2025, a slight increase from £371m in 2024.
The firm reported a net asset value per share of 877p at year-end, a rise from the 863p reported at the end of 2024.
Shareholders were treated to a two per cent hike in the annual dividend to 40.4p per share.
Landsec’s CEO Mark Allan emphasised: “Owning the right real estate has never been more important. Irrespective of sector, there is a clear focus from customers on best-in-class space and as this space remains in short supply, rents are growing.”
He expressed confidence in the company’s strategic repositioning over the past four years.
Allan also noted: “Whilst we are mindful of the recent rise in global economic uncertainty, we are yet to see any impact of this on customer demand or investment markets.”
He concluded: “Given the actions we have taken over the past few years, our outlook for EPS growth and return on equity therefore remains positive.”
Strategic shift
Landsec is shaking things up with a decisive strategic realignment, steadily moving away from its traditional base in the London office market.
The property titan is targeting an even distribution across offices, retail, and residential properties by the end of this decade.
The company bounced back into profit last November, buoyed by a resurgence in the property sector and robust demand for London rental spaces.
In a bold extension of its retail estate portfolio, Landsec clinched a predominant 92% share of Liverpool One shopping district, parting with a hefty £490 million.
This purchase was made from Grosvenor, led by the Duke of Westminster, alongside the Abu Dhabi Investment Authority.
Chief Executive Mark Allan spoke to The Times in March regarding the company’s trajectory, emphasising that while it may not be ground-breaking, “we’ve said we’re going to grow our earnings by 20 per cent from where they are today by 2030.”
Allan further clarified the value proposition for investors: “Broadly speaking, if you buy a Landsec share today you get an earnings yield of about 9 per cent and what we’re saying is we’re going to grow that by about 4 per cent a year over the next five years.”
