Landsec adjusted earnings up in half-year report

Real estate firm Landsec has reported its financials for the half-year ended September 30, 2024, during which time it bounced back to a profit before tax of 243 million pounds, up from a loss of 193 million pounds in the year prior.

The company cited a 0.9 percent uplift in portfolio value as a core driver, while Central London and major retail assets brought in respective like-for-like (LFL) net rental income growth of 5.5 and 3.1 percent.

It was noted that much of this uptick in retail assets was brought on by a continued focus from brands on fewer but better stores, with significant upsizes and lettings coming from the likes of Primark, Pull & Bear, Bershka, Sephora and JD Sports.

Landsec’s earnings from operational activities (EPRA) rose one million pounds to 186 million pounds compared to the same period last year, adjusted for 13 million pounds lower surrender receipts.

Its EPRA earnings per share (EPS), meanwhile, came at the top end of expectations at 25 pence, while the company reported a “better than expected” 3.4 percent like-for-like (LFL) net income growth.

In a release, Mark Allan, chief executive of Landsec, said that the firm was now raising its outlook for EPRA EPS and expecting FY25 to be “in line with last year’s level despite 0.5 billion pounds of net disposals over the past year”.

Allan continued: “At the same time, property values have stabilised, with growth in rental values driving a modest increase in capital values, resulting in a positive total return on equity.

"We expect these trends to persist, as customer demand for our best-in-class space remains robust and investment market activity has started to pick up.”