Landsec (LDSCY) AI Stock Analysis

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Landsec

(OTC:LDSCY)

Rating:69Neutral

Price Target:

$8.50

▲(8.14% Upside)

Landsec's overall stock score is driven by a strong earnings call and reasonable valuation, indicating a positive outlook for future growth. Financial performance shows improvement, but challenges with leverage and cash flow volatility remain. Technical analysis suggests caution due to bearish momentum signals.

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

Market Cap

$5.83B

Dividend Yield6.6%

Average Volume (3M)2.12K

Price to Earnings (P/E)11.5

Beta (1Y)0.52

Revenue Growth2.49%

EPS GrowthN/A

CountryUS

Employees598

SectorReal Estate

Sector Strength55

IndustryREIT - Diversified

Share Statistics

EPS (TTM)0.26

Shares Outstanding744,947,200

10 Day Avg. Volume3,677

30 Day Avg. Volume2,118

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.91

Enterprise Value/Revenue13.23

Enterprise Value/Gross Profit21.59

Enterprise Value/Ebitda25.43

Forecast

1Y Price Target

$8.50

Price Target Upside8.14% Upside

Rating ConsensusHold

Number of Analyst Covering1

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 MoneyLandsec generates revenue primarily through the leasing of its commercial properties, which include office and retail spaces. The company earns rental income from long-term leases with tenants, which provides a stable cash flow. Additionally, Landsec profits from property development projects by either selling developed properties or leasing them out after completion. The company also engages in asset management to enhance the value of its portfolio, driving further revenue through property appreciation. Strategic partnerships with local authorities and businesses can facilitate development opportunities, while sustainability initiatives may also attract tenants seeking eco-friendly workspaces, further bolstering revenue streams.

Landsec Key Performance Indicators (KPIs)

Any

Gross Rental Income by Segment

Gross Rental Income by Segment
Shows the total rental income generated from different property segments, highlighting which areas are driving revenue and indicating potential growth or risk areas based on segment performance.

Chart InsightsLandsec's gross rental income from Central London shows a slight decline, contrasting with the earnings call's optimistic outlook of a 6.6% increase in this segment. Major Retail income has been resilient, aligning with strategic investments in premium retail destinations. However, Mixed-Use Urban and Subscale Sectors have seen recent declines, posing challenges amid rising interest costs and debt levels. Despite these pressures, Landsec's focus on high-quality retail and residential development suggests potential for long-term income growth and portfolio diversification.

Data provided by:

Main Street Data

Landsec Earnings Call Summary

Earnings Call Date:May 16, 2025

(Q4-2025)

% Change Since: -0.76%|

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

Landsec demonstrates a positive trajectory in financial recovery, with notable improvements in profitability and cash management. The company maintains a strong equity position but faces challenges with increased leverage and cash flow volatility. Continued focus on stabilizing earnings and managing debt levels will be vital for sustained growth.

Income Statement

Positive

Landsec's income statement shows a significant turnaround in net income from a loss in 2024 to a profit in 2025, indicating improved profitability. Gross profit margin remained strong, reflecting efficient cost management. However, fluctuations in EBIT and EBITDA margins over the years highlight volatility, which poses a risk to consistent profitability.

Balance Sheet

Positive

The balance sheet reflects a stable equity base, with a healthy equity ratio suggesting solid financial standing. The debt-to-equity ratio increased in 2025, indicating higher leverage, which could be a concern if interest rates rise. However, the return on equity improved significantly, reflecting better utilization of equity to generate profits.

Cash Flow

Positive

Cash flow analysis shows positive free cash flow generation in 2025, a recovery from previous periods. Operating cash flow to net income ratio improved, indicating efficient cash generation from operations. Yet, fluctuations in free cash flow highlight potential instability in cash management.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	832.00M	824.00M	791.00M	679.00M	635.00M
Gross Profit	510.00M	500.00M	412.00M	372.00M	416.00M
EBITDA	511.00M	-231.00M	-527.00M	388.00M	-1.31B
Net Income	396.00M	-319.00M	-619.00M	869.00M	-1.39B
Balance Sheet
Total Assets	11.62B	10.66B	10.97B	12.89B	10.99B
Cash, Cash Equivalents and Short-Term Investments	39.00M	78.00M	41.00M	146.00M	5.00M
Total Debt	4.55B	3.78B	3.54B	4.55B	3.52B
Total Liabilities	5.09B	4.22B	3.89B	4.90B	3.78B
Stockholders Equity	6.51B	6.40B	7.00B	7.92B	7.21B
Cash Flow
Free Cash Flow	93.00M	212.00M	240.00M	339.00M	15.00M
Operating Cash Flow	256.00M	338.00M	342.00M	381.00M	233.00M
Investing Cash Flow	-383.00M	-272.00M	834.00M	-607.00M	334.00M
Financing Cash Flow	88.00M	-29.00M	-1.28B	362.00M	-1.91B

Landsec Technical Analysis

Technical Analysis Sentiment

Positive

Last Price7.86

Price Trends

50DMA

8.13

Negative

100DMA

7.81

Positive

200DMA

7.49

Positive

Market Momentum

MACD

-0.09

Negative

RSI

48.76

Neutral

STOCH

77.31

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 7.86 is above the 20-day moving average (MA) of 7.79, below the 50-day MA of 8.13, and above the 200-day MA of 7.49, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 48.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.31 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 (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPRT	80 Outperform	$6.00B	25.47	6.33%	3.95%	25.79%	2.46%
BNL	76 Outperform	$3.18B	32.79	3.32%	6.90%	2.74%	-37.41%
UE	74 Outperform	$2.56B	23.22	8.46%	3.73%	6.09%	-65.94%
WPC	72 Outperform	$14.43B	43.29	3.99%	5.40%	0.23%	-41.66%
LDSCY	69 Neutral	$5.83B	11.52	6.13%	6.60%	2.49%	―
Sector *	63 Neutral	$6.78B	12.96	-0.54%	7.46%	3.69%	-24.78%
GNL	56 Neutral	$1.70B	―	-11.87%	12.55%	-11.06%	29.36%

* Real Estate Sector Average

Performance Comparison

LDSCY

Landsec

7.83

0.29

3.85%

WPC

W. P. Carey Inc.

65.60

12.99

24.69%

Urban Edge Properties

19.44

0.60

3.18%

GNL

Global Net Lease

7.41

0.37

5.26%

EPRT

Essential Properties Realty

29.90

1.24

4.33%

BNL

Broadstone Net Lease

16.64

0.77

4.85%

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: Aug 07, 2025