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Land Securities Group (LDSCY)
:LDSCY
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Landsec
(OTC:LDSCY)
Select Model
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Rating:71Outperform
Price Target:
$9.50
▲(10.21% Upside)
Landsec's strong earnings call and reasonable valuation are the most significant factors driving the score. Financial performance shows improvement, but leverage and cash flow volatility are concerns. Technical indicators suggest caution due to potential overbought conditions.
Landsec (LDSCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.30B
Dividend Yield6.04%
Average Volume (3M)2.94K
Price to Earnings (P/E)12.5
Beta (1Y)0.53
Revenue Growth2.49%
EPS GrowthN/A
CountryUS
Employees598
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.26
Shares Outstanding744,982,000
10 Day Avg. Volume3,945
30 Day Avg. Volume2,944
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 Cap1.77
Enterprise Value/Revenue13.23
Enterprise Value/Gross Profit21.59
Enterprise Value/Ebitda25.43
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Landsec Business Overview & Revenue Model
Company DescriptionLandsec (LDSCY) is one of the largest commercial property development and investment companies in the UK, specializing in the development and management of a diverse portfolio of properties, including office spaces, retail locations, and residential developments. The company focuses on creating sustainable, innovative spaces that enhance communities and contribute to the economy, with operations primarily in urban areas across the UK.
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
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.
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.
Data provided by:
Main Street Data
Main Street DataLandsec 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
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.68
Positive
Balance Sheet
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.72
Positive
Cash Flow
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.65
Positive
| 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
Positive
8.62
Price Trends
7.82
Positive
7.94
Positive
7.63
Positive
Market Momentum
0.22
Negative
64.48
Neutral
79.93
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 8.62 is above the 20-day moving average (MA) of 8.22, above the 50-day MA of 7.82, and above the 200-day MA of 7.63, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 79.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDSCY.
Landsec Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $6.08B | 24.66 | 6.84% | 3.89% | 24.60% | 8.05% | |
| ― | $14.63B | 43.90 | 3.99% | 5.42% | 0.23% | -41.66% | |
| ― | $2.69B | 24.40 | 8.46% | 3.65% | 6.09% | -65.94% | |
| ― | $6.30B | 12.49 | 6.13% | 6.04% | 2.49% | ― | |
| ― | $3.50B | 36.12 | 3.32% | 6.26% | 2.74% | -37.41% | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | $1.70B | ― | -11.87% | 10.96% | -11.06% | 29.36% |
* Real Estate Sector Average
LDSCY
Landsec
8.49
0.72
9.27%
WPC
W. P. Carey Inc.
66.11
12.63
23.62%
UE
Urban Edge Properties
20.29
-1.03
-4.83%
GNL
Global Net Lease
7.71
0.67
9.52%
EPRT
Essential Properties Realty
30.60
-0.49
-1.58%
BNL
Broadstone Net Lease
18.52
1.74
10.37%
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.