Land Securities raises EPS outlook on strong rental income growth

The Tip Desk · June 2, 2026 · 2 min read

The company increased its potential FY30 EPRA EPS from approximately 60 pence to 70 pence.

Land Securities Group Plc, a leading UK real estate company, has raised its near-term and medium-term earnings per share (EPS) guidance following strong income growth and a reduction in overhead costs. The company reported that EPRA EPS rose 3.2% to 25.8p, supported by 5.2% growth in like-for-like (LFL) income.

Rental performance has been a primary driver of the company's trajectory. Like-for-like net rental income grew 4.6%, exceeding the initial guidance of 3-4%. The company reported that uplifts on relettings and renewals almost doubled to 15%, up from 8% a year ago. This growth is supported by an EPRA occupancy rate of 98.0%, the highest level the company has seen in two decades.

In the office sector, the company noted that rental levels grew 10% in 2025, driven by structural shortages in high-quality stock. Demand is being fueled by traditional professional services and AI and tech operators, with active AI requirements growing 136% year-on-year by early 2026. Land Securities said its speculative London office development pipeline is completing over the next few months, which will reduce development exposure to less than 2% of the portfolio. The company stated it has no plans to add significant new commitments to this pipeline for approximately 18 months due to elevated risks around returns on future projects.

Retail performance also showed a divergence between prime and secondary assets. The company reported that 85% of its retail assets are located in the top 1% of UK shopping destinations. Occupancy in its portfolio of dominant high-quality centres reached 98%, while overall UK shopping centre occupancy remained lower at 87%.

To support earnings, the company reduced overhead costs to £62m, a 26% decrease over the last three years. This follows a 6% reduction in overheads reported in the half-year period ended 30 September 2025.

Looking forward, the company expects like-for-like net rental income for FY26 to grow approximately 4-5%, an increase from previous guidance of 3-4%. FY26 EPRA EPS growth is expected to reach the top end of the 2-4% guidance range, before a £7m impact from the disposal of Queen Anne’s Mansions. The company also expects overhead costs to reduce further to the low £60m range by FY27.