Landsec (LDSCY) AI Stock Analysis

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Landsec

(OTC:LDSCY)

Select Model

Neutral 69 (OpenAI - 4o)

Rating:69Neutral

Price Target:

$8.50

▲(8.83% Upside)

Landsec's overall score is driven by strong earnings call insights and a solid valuation, offset by moderate financial performance and technical analysis. The company's strategic investments and positive EPS outlook are significant strengths, while increased leverage and cash flow volatility pose risks.

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

Market Cap

$5.78B

Dividend Yield6.65%

Average Volume (3M)856.00

Price to Earnings (P/E)11.4

Beta (1Y)0.51

Revenue Growth2.49%

EPS GrowthN/A

CountryUS

Employees598

SectorReal Estate

Sector Strength53

IndustryREIT - Diversified

Share Statistics

EPS (TTM)0.26

Shares Outstanding744,977,840

10 Day Avg. Volume0

30 Day Avg. Volume856

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 Cap1.93

Enterprise Value/Revenue13.23

Enterprise Value/Gross Profit21.59

Enterprise Value/Ebitda25.43

Forecast

1Y Price Target

$8.50

Price Target Upside8.83% 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: |

Next Earnings Date:Nov 14, 2025

Earnings Call Sentiment Positive

The earnings call presented a strong operational performance across key markets with robust income growth and a positive outlook for EPS growth. The strategic capital allocation and successful investments in retail destinations were emphasized. However, rising finance costs and increased net debt pose challenges. Overall, the highlights of operational success and strategic investments significantly outweigh the lowlights.

Q4-2025 Updates

Positive Updates

Strong Operational Performance and Income Growth

Landsec reported high like-for-like income growth across London and retail, which make up 83% of its business, with overall like-for-like income growth up 5%.

Positive EPS Growth Outlook

The company expects a 20% growth in EPS over the next five years, even after absorbing a 10% EPS headwind from rising interest costs, supported by strong operational performance and strategic capital allocation.

Increased Occupancy Rates

Occupancy rates increased by 100 basis points to 97.2% overall, with London occupancy at 98% and retail at 97%.

Successful Capital Recycling and Investment

Landsec invested over GBP600 million into top retail destinations while selling around GBP655 million of assets in subscale sectors.

Dividend and NTA Growth

Dividend increased by 2% and NTA per share grew by 1.7%, with a positive overall return on equity of 6.4%.

Robust Balance Sheet

The company's net debt to EBITDA ratio is at 7.7 times with a long average debt maturity of 9.6 years.

Strong Leasing Activity

Landsec signed leases in retail and London averaging 8% and 7% ahead of ERV, respectively, with a strong pipeline of deals.

Negative Updates

Rising Finance Costs

Landsec faces a roughly 10% EPS headwind from rising interest costs and a finance lease expiry, which will impact financial performance over several years.

Increased Net Debt

Net debt increased due to acquisitions, with a current LTV of just over 38%, although expected to reduce over time.

Development Cost Overruns

There were some cost overruns and slight project delays in developments like Timber Square, though no further deterioration is expected.

Company Guidance

In the recent call, Landsec provided guidance indicating a positive outlook for EPS growth, driven by strategic portfolio repositioning and operational efficiencies. Over the past year, like-for-like income growth rose by 5%, with retail and London sectors contributing significantly, showing uplifts of 8% in relettings and renewals. The company expects EPS to grow by 2% to 4% this year, with a projected 20% growth by 2030, despite a 10% EPS headwind from rising interest costs and a finance lease expiry. Landsec's occupancy increased by 100 basis points to 97.2%, and its portfolio value grew by 1.1%, driven by a 4.2% uplift in ERV. The company targets a net debt to EBITDA ratio of less than 8 times and continues to focus on sustainable income growth and capital allocation, with a loan-to-value ratio of around 38.4% post-disposals. As part of its strategy, Landsec plans to invest GBP1 billion in best-in-class retail and develop a GBP2 billion residential platform, capitalizing on strong structural demand.

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 Price7.81

Price Trends

50DMA

7.65

Positive

100DMA

7.92

Negative

200DMA

7.51

Positive

Market Momentum

MACD

0.04

Negative

RSI

59.66

Neutral

STOCH

83.79

Negative

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 7.81 is above the 20-day moving average (MA) of 7.48, above the 50-day MA of 7.65, and above the 200-day MA of 7.51, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.66 is Neutral, neither overbought nor oversold. The STOCH value of 83.79 is Negative, 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 (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WPC	77 Outperform	$14.99B	44.98	4.09%	5.18%	0.23%	-41.66%
UE	75 Outperform	$2.66B	24.15	8.07%	3.69%	6.09%	-65.94%
EPRT	73 Outperform	$5.91B	25.07	5.84%	3.97%	25.79%	2.46%
BNL	71 Outperform	$3.43B	35.34	2.80%	6.40%	2.74%	-37.41%
LDSCY	69 Neutral	$5.78B	11.41	6.13%	6.65%	2.49%	―
GNL	58 Neutral	$1.80B	-6.68	-15.59%	11.41%	-11.06%	29.36%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

* Real Estate Sector Average

Performance Comparison

LDSCY

Landsec

7.81

-0.58

-6.91%

WPC

W. P. Carey Inc.

68.08

9.46

16.14%

Urban Edge Properties

20.20

-0.26

-1.27%

GNL

Global Net Lease

8.04

0.64

8.65%

EPRT

Essential Properties Realty

29.62

-2.96

-9.09%

BNL

Broadstone Net Lease

17.86

0.18

1.02%

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: Sep 23, 2025