Land Securities Group PLC · LSE:LAND
Land Securities — Landsec — FY2025 Earnings Presentation
33 slides from Land Securities's earnings presentation, May 2025
Slide 1: Our Annual Results
OUR ANNUAL RESULTS
Slide 2: Shaping places that stand the test of time
BEST-IN-CLASS CENTRAL LONDON PORTFOLIO LEADING UK RETAIL PLATFORM SIGNIFICANT RESIDENTIAL-LED PIPELINE SHAPING PLACES THAT STAND THE TEST OF TIME
Slide 3: Sustainable income/EPS growth to drive long-term value growth
NEAR TERM MEDIUM TO LONGER TERM FY25 FY30 • • • • • • SUSTAINABLE INCOME/EPS GROWTH TO DRIVE LONG-TERM VALUE GROWTH
Slide 4: Capital allocation and balance sheet targets; c.20% upside potential in EPS
CAPITAL ALLOCATION AND BALANCE SHEET TARGETS C.20% UPSIDE POTENTIAL IN EPS
Slide 5: Growing like-for-like income, investing in future growth, strong capital base
GROWING LIKE-FOR-LIKE INCOME INVESTING IN FUTURE GROWTH MAINTAINING A STRONG CAPITAL BASE • • • • • • • • •
Slide 6: Expect EPRA EPS to grow by c.2-4% in FY26
EXPECT EPRA EPS TO GROW BY C. 2-4% IN FY26
Slide 7: Operational Review
OPERATIONAL REVIEW Mark Allan CHIEF EXECUTIVE OFFICER
Slide 8: Central London 47% of income, Major Retail 36% of income, rental uplifts rising
CENTRAL LONDON – 47% OF INCOME MAJOR RETAIL – 36% OF INCOME RENTAL UPLIFTS RISING CAPTURING GROWING REVERSIONARY POTENTIAL TO DRIVE NEAR-TERM EPS GROWTH
Slide 9: Positive rental outlook for best assets attracting new investor demand
GRADE A TAKE-UP 20% ABOVE LT AVERAGE RENTS CONTINUE TO RISE INVESTMENT ACTIVITY STARTS TO RECOVER POSITIVE RENTAL OUTLOOK FOR BEST ASSETS ATTRACTING NEW INVESTOR DEMAND
Slide 10: Expect ERV growth similar in FY26 and continued LFL income growth
UTILISATION CONTINUES TO GROW CUSTOMERS PLANNING FOR MORE SPACE STRONG OPERATIONAL PERFORMANCE • • • • • • EXPECT ERV GROWTH TO BE BROADLY SIMILAR IN FY26 AND CONTINUED LFL INCOME GROWTH
Slide 11: Delivering in attractive window
DELIVERING IN ATTRACTIVE WINDOW THIRTY HIGH, VICTORIA TIMBER SQUARE, SOUTHBANK • • • • • • • •
Slide 12: Strong demand in best destinations drives rents higher as new supply is zero
RETAIL SPEND FOCUSED ON BEST LOCATIONS C. 86% OF LANDSEC RETAIL IN TOP 1% SIGNIFICANT UPSIDE IN INCOME AND VALUES TOP 5% TOP 2% 100% 93% TOP 1% 86% £2.6bn STRONG DEMAND IN BEST DESTINATIONS DRIVES RENTS HIGHER, AS NEW SUPPLY IS ZERO
Slide 13: Expect similar ERV growth in FY26 and continued LFL income growth
SALES/FOOTFALL OUTPERFORMING RENTAL UPLIFTS TRENDING HIGHER STRONG OPERATIONAL PERFORMANCE • • • • • • EXPECT SIMILAR ERV GROWTH IN FY26 AND CONTINUED LFL INCOME GROWTH
Slide 14: Capital Allocation
CAPITAL ALLOCATION Mark Allan CHIEF EXECUTIVE OFFICER
Slide 15: Prioritising capital allocation decisions
Landsec Annual Results 2025 Prioritising capital allocation decisions Two clear objectives alongside view on risk < 2 ° .. Uy 1 1 1 1 1 Esc ' cs 1 £3 Lo I 5m = A Vw ' Offices to see good LFL growth in near term, but long-term € & OFFICE a eee ESIDENT - supply/demand to remain cyclical as customer de
Slide 16: Next 1-3 years, next 2-5 years
• NEXT • 1-3 • YEARS • • • NEXT • 2-5 YEARS • •
Slide 17: Increased ownership; acquisition of top UK retail destination
INCREASED OWNERSHIP ACQUISITION OF TOP UK RETAIL DESTINATION TAKEN FULL CONTROL • • • • • • • • •
Slide 18: Sold £496m during year, further capital recycling planned
SOLD £496M DURING YEAR SOLD £159M SINCE YEAR-END FURTHER CAPITAL RECYCLING PLANNED • • • • • • • • •
Slide 19: Release capital from pre-development assets, shift development to residential
RELEASE CAPITAL FROM PRE-DEVELOPMENT ASSETS SHIFT DEVELOPMENT ACTIVITY TO RESIDENTIAL ON-SITE OFFICE FUTURE DEVELOPMENT EXPOSURE DEVELOPMENTS • • • • • •
Slide 20: Finchley Road, Mayfield, Lewisham residential developments
FINCHLEY ROAD, ZONE 2 LONDON MAYFIELD, MANCHESTER LEWISHAM, ZONES 2&3 LONDON • • • • • • • • •
Slide 21: Financial Review
FINANCIAL REVIEW Vanessa Simms CHIEF FINANCIAL OFFICER
Slide 22: Financial summary
Landsec Annual Results 2025 Financial summary Strong operational performance underpins positive financial results Pea 3 March 2024 Change EPRA earnings £374m £371m 0.8% EPRA earnings per share 50.3p 50.1p 0.4% Dividend per share 40.4p 39.6p 2.0% EPRA NTA per share 874p 859p 1.7% Group LTV 39.3% 35.0
Slide 23: EPRA earnings ahead of initial guidance
Landsec Annual Results 2025 EPRA earnings ahead of initial guidance Driven by stronger than expected LFL growth and focus on cost savings 81Mareh 2025 31 March 2024 im £m Gross rental income 624 641 * Net rental up £2m despite disposals Net service charge (1) (16) and £14m reduction in surrenders Di
Slide 24: Movements in EPRA EPS
Landsec Annual Results 2025 EPRA EPS up 0.4% Strong LFL growth offsets impact from disposals and lower surrenders Like-for-like business Other items Investment activity 3.Ap 0.5p : | a 0.6p (1.9)p es (.7)p Total LFL NRI growth +5.0%! 6.6% 5.1% 2.8% 0.0% LAL tr tr iL emia) trace | casio | eres FY24 E
Slide 25: Continuing to drive improvement in efficiency
CONTINUING TO DRIVE IMPROVEMENT IN EFFICIENCY
Slide 26: Valuation yields stabilising; ERV growth picking up
VALUATION YIELDS STABILISING (BPS) ERV GROWTH PICKING UP (%)
Slide 27: Return on equity; movement in NTA per share
RETURN ON EQUITY MOVEMENT IN NTA / SHARE (pps) • •
Slide 28: Move to lower risk profile over time
AVERAGE DEBT MATURITY OF 9.6 YEARS1 TARGET MID 30’S LTV OVER TIME TARGET ND/EBITDA OF LESS THAN 8X MOVE TO LOWER RISK PROFILE OVER TIME DUE TO RECYCLING OF CAPITAL FROM OFFICES TO RESIDENTIAL
Slide 29: Potential for EPS to grow c.20% by FY30
POTENTIAL FOR EPS TO GROW C. 20% BY FY30 – DIVIDEND TO GROW IN LINE WITH 1.2-1.3X COVER FY26 EPS EXPECTED TO GROW C. 2-4%
Slide 30: Overview
OVERVIEW Mark Allan CHIEF EXECUTIVE OFFICER
Slide 31: EPS growth in next 1-3 years and 2-5 years
EPS GROWTH IN NEXT 1-3 YEARS EPS GROWTH IN NEXT 2-5 YEARS FY25 FY30 • • • • • •
Slide 32: Well-placed due to successful execution of 2020 strategy
WELL-PLACED DUE TO SUCCESSFUL CLEAR UPSIDE AS WE DELIVER FOCUS ON SUSTAINABLE INCOME EXECUTION OF 2020 STRATEGY NEXT PHASE OF STRATEGY /EPS GROWTH TO DRIVE ROE
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