Landsec (LDSCY) AI Stock Analysis

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Landsec

(OTC:LDSCY)

Rating:45Neutral

Price Target:―

Land Securities Group struggles with profitability and operational efficiency, evidenced by negative income and high leverage risks. The stock shows bearish technical signals, trading below its major moving averages. The valuation appears stretched with a high P/E ratio, though the dividend yield offers some attraction. Positive cash flow provides a degree of financial stability.

Landsec (LDSCY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$6.38B

Dividend Yield7.51%

Average Volume (3M)17.37K

Price to Earnings (P/E)12.8

Beta (1Y)0.55

Revenue Growth1.49%

EPS GrowthN/A

CountryUS

Employees598

SectorReal Estate

Sector Strength55

IndustryREIT - Diversified

Share Statistics

EPS (TTM)0.26

Shares Outstanding744,942,800

10 Day Avg. Volume2,225

30 Day Avg. Volume17,371

Financial Highlights & Ratios

PEG Ratio0.04

Price to Book (P/B)0.59

Price to Sales (P/S)0.00

P/FCF Ratio17.22

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

Landsec Business Overview & Revenue Model

Company DescriptionAt Landsec, we build and invest in buildings, spaces and partnerships to create sustainable places, connect communities and realise potential. We are one of the largest real estate companies in Europe, with a £11 billion portfolio of retail, leisure, workspace and residential hubs. Landsec is shaping a better future by leading our industry on environmental and social sustainability while delivering value for our shareholders, great experiences for our guests and positive change for our communities.

How the Company Makes MoneyLand Securities Group generates revenue primarily through the leasing of its extensive portfolio of office and retail properties. The company's revenue streams include rental income from tenants occupying its office spaces and retail outlets, as well as income from property development projects. It also benefits from property sales and asset management fees. Strategic partnerships and joint ventures with other real estate developers and investors are significant contributors to its earnings, allowing the company to undertake larger projects and share risks and rewards. Additionally, Land Securities Group invests in sustainable development practices, which can enhance the value of its properties and attract premium tenants.

Landsec Earnings Call Summary

Earnings Call Date:May 16, 2025

(Q4-2025)

% Change Since: 9.85%|

Next Earnings Date:Nov 18, 2025

Earnings Call Sentiment Positive

Landsec's earnings call reflects a strong operational performance with significant like-for-like income growth and an optimistic outlook for future EPS growth. The company has successfully increased occupancy and portfolio value while strategically investing in premium retail locations. However, challenges such as rising net debt, interest costs, and the holding costs of predevelopment assets present obstacles. Despite these challenges, the company's strategic focus on sustainable income and EPS growth suggests a positive trajectory.

Q4-2025 Updates

Positive Updates

Strong Operational Performance

Landsec reported high like-for-like income growth across both London and retail, which make up 83% of the business. Overall like-for-like income growth over the year was up 5% with uplifts on relettings and renewals in retail and London rising to 8%.

Increase in Occupancy and Portfolio Value

The company delivered a 100 basis point increase in occupancy to 97.2% and a portfolio value increase of 1.1% driven by successful leasing activity.

Positive EPS Growth Outlook

Landsec expects EPS growth of around 20% over the next five years, even after absorbing a 10% EPS headwind from rising interest costs.

Retail Investment and Growth

Invested over GBP600 million into premium retail destinations Liverpool ONE and Bluewater at highly accretive yields. Retail portfolio value increased by 3.4%, driven by ERV growth and yield compression.

Development and Residential Pipeline

Commenced planning for significant residential developments in London and Manchester, with potential to start projects by late 2026.

Negative Updates

Rising Net Debt and LTV

Net debt increased due to acquisitions, with LTV now just over 38%. However, it is expected to reduce to the mid-30s over time.

Impact of Rising Interest Costs

Forecasted EPS growth has to absorb a 10% EPS headwind from rising interest costs and a finance lease expiry.

Challenges with Predevelopment Assets

Holding cost of predevelopment assets is significant, with GBP730 million of capital employed producing a current income return of around 1%.

Company Guidance

In the call, Landsec provided guidance indicating a positive outlook for EPS growth, projecting a 20% increase over the next five years, even after accounting for a 10% EPS headwind due to rising interest costs and a finance lease expiry. The company expects continued strong like-for-like income growth, with overall income up 5% over the year and specific increases of 6.6% in Central London and 5.1% in retail. Landsec's occupancy rate improved by 100 basis points to 97.2%. Their dividend grew by 2%, aligning with guidance, and net tangible assets per share rose by 1.7%, contributing to a 6.4% return on equity. The company aims to maintain a strong capital base, targeting a net debt to EBITDA ratio of less than 8 times and a loan-to-value ratio around the mid-30s. Landsec's strategic focus includes investing in high-quality retail destinations and establishing a substantial residential platform, with goals to shift portfolio mix and sustain EPS growth in the long term.

Landsec Financial Statement Overview

Summary

Land Securities Group faces significant challenges in profitability and operational efficiency, with declining profit margins and negative net income. The high debt-to-equity ratio poses a leverage risk. However, positive free cash flow offers some liquidity resilience.

Income Statement

Neutral

The company has faced challenges with profitability as evidenced by negative net profit margins. The gross profit margin has declined slightly from past years, and revenue growth is modest. The EBIT and EBITDA margins are negative, indicating operational inefficiencies or high costs relative to revenue.

Balance Sheet

Neutral

The balance sheet shows a relatively high debt-to-equity ratio, which poses a leverage risk, yet the equity ratio remains strong. Return on equity has been negative, reflecting net losses impacting shareholder returns. The company's asset base is stable but has slightly decreased over recent years.

Cash Flow

Neutral

Cash flow metrics show a reasonable operating cash flow to net income ratio, yet the free cash flow has shown a decline in growth rate. The company is maintaining positive free cash flow, which is a positive aspect supporting liquidity despite negative net income.

Breakdown	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	824.00M	791.00M	679.00M	635.00M	741.00M
Gross Profit	500.00M	412.00M	372.00M	416.00M	500.00M
EBITDA	-231.00M	-527.00M	388.00M	-1.31B	-737.00M
Net Income	-319.00M	-619.00M	869.00M	-1.39B	-832.00M
Balance Sheet
Total Assets	10.66B	10.97B	12.89B	10.99B	14.36B
Cash, Cash Equivalents and Short-Term Investments	78.00M	41.00M	146.00M	5.00M	1.34B
Total Debt	3.78B	3.54B	4.55B	3.52B	5.33B
Total Liabilities	4.22B	3.89B	4.90B	3.78B	5.61B
Stockholders Equity	6.40B	7.00B	7.92B	7.21B	8.75B
Cash Flow
Free Cash Flow	212.00M	240.00M	339.00M	15.00M	200.00M
Operating Cash Flow	338.00M	342.00M	381.00M	233.00M	401.00M
Investing Cash Flow	-272.00M	834.00M	-607.00M	334.00M	-116.00M
Financing Cash Flow	-29.00M	-1.28B	362.00M	-1.91B	1.05B

Landsec Technical Analysis

Technical Analysis Sentiment

Positive

Last Price8.70

Price Trends

50DMA

7.98

Positive

100DMA

7.52

Positive

200DMA

7.55

Positive

Market Momentum

MACD

0.12

Positive

RSI

58.66

Neutral

STOCH

21.25

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDSCY, the sentiment is Positive. The current price of 8.7 is above the 20-day moving average (MA) of 8.38, above the 50-day MA of 7.98, and above the 200-day MA of 7.55, indicating a neutral trend. The MACD of 0.12 indicates Positive momentum. The RSI at 58.66 is Neutral, neither overbought nor oversold. The STOCH value of 21.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDSCY.

Landsec Peers Comparison

Overall Rating

UnderperformOutperform

Sector (59)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UE	74 Outperform	$2.50B	30.00	6.48%	4.03%	6.18%	-72.21%
WPC	74 Outperform	$13.77B	32.43	5.02%	5.66%	-5.89%	-26.36%
EPRT	72 Outperform	$6.32B	27.51	6.01%	3.69%	25.47%	-4.35%
BNL	69 Neutral	$3.06B	27.19	3.79%	7.18%	0.73%	-37.65%
Sector *	59 Neutral	C$1.23B	0.76	-8.20%	5.62%	9.89%	-25.14%
GNL	54 Neutral	$1.68B	―	-13.01%	10.12%	16.69%	39.04%
LDSCY	45 Neutral	$6.38B	12.79	6.13%	7.51%	1.49%	―

* Real Estate Sector Average

Performance Comparison

LDSCY

Landsec

8.70

1.07

14.02%

WPC

W. P. Carey Inc.

62.87

10.62

20.33%

Urban Edge Properties

18.87

1.32

7.52%

GNL

Global Net Lease

7.51

1.15

18.08%

EPRT

Essential Properties Realty

31.93

5.21

19.50%

BNL

Broadstone Net Lease

16.16

1.30

8.75%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Apr 08, 2025