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Investing.com -- Land Securities (LON:LAND) shares rose 2% in London Friday after the company reported it has swung to a full-year profit for the year ended March 31, 2025, supported by resilient demand and rising rents across its London and major retail portfolios.
The U.K. REIT reported a pre-tax profit of £393 million for the year, recovering from a £341 million loss a year earlier.
Land Securities’ EPRA net tangible assets, a metric that demonstrates the value of its buildings, rose 1.7% year-on-year to 874 pence per share by March end.
Like-for-like (LFL) rental growth stood at 5%, with relettings and renewals in London and key retail locations up 8%. Occupancy rose 100 basis points to 97.2%, while administrative costs fell by 5%.
Earnings per share (EPS) rose marginally to 50.3p, and the dividend was increased by 2% to 40.4p. According to Jefferies analysts, these were "in line with guidance
of further LFL growth and efficiency improvements for 20% EPS growth potential by FY30, with 2-4% growth expected in FY26."
Asset values stabilised as the portfolio was revalued 1% higher in the second half of the year, with West End offices up 1%, City offices gaining 1.4%, and retail up 3.4%.
Land Securities is preparing to pivot into residential, planning to recycle £2 billion of office and £1 billion of retail assets, with the first residential project expected in 2026.
The company’s CEO Mark Allan noted “a very healthy pipeline of occupier demand,” which supports expectations for further EPS growth in the near to medium term.
Land Securities said it has not observed any decline in investor appetite despite ongoing macroeconomic uncertainties, noting that it continues "to see a steady pick-up in investor interest and activity in London and major retail."