Continued operational strength, as values for best assets begin to stabilise
Around 80% of our portfolio is now invested in twelve places with significant scarcity value, where our competitive advantages in shaping and curating these places mean we expect like-for-like rents to continue to grow.
'Following a reset of values over the past two years driven by rising interest rates, the stabilisation in rates and evidence of continued rental growth is starting to attract increased investor interest for the best assets. Around 60% of our portfolio already showed stable values in the second half and overall yields were largely stable in the final quarter, pointing to a positive outlook for our overall return on equity.
'The quality and return prospects of our portfolio are further bolstered by our strong balance sheet. After a period of proactive capital recycling, most recently with over
Financial highlights
EPRA EPS(1)(2) stable vs prior year's underlying level(3) of 50.1p, in line with guidance, as occupancy growth and 2.8% LFL income growth offset rise in interest costs and impact of asset disposals
Total dividend up 2.6% to 39.6p per share, in line with guidance of low single digit percentage growth
Loss before tax moderated to
Total return on equity improved to -4.0%, with 8.2% reduction in EPRA NTA per share(1)(2) to 859p, as outlook for return on equity turns more positive as values begin to stabilise
Maintained strong balance sheet with, pro-forma for disposals post year-end, 7.0x net debt/EBITDA and a 32.3% Group LTV(1)(2) - down 2.1ppt over past two years despite adjustment in values
FY25 EPRA EPS, post
Operational highlights: high quality of portfolio underpins positive outlook for returns
Delivered continued outperformance in a market increasingly focused on best-in-class space, reflected in 8% uplifts on relettings/renewals and 130bps occupancy growth across
Delivered 1.4% LFL net income growth in offices, with overall occupancy +140bps to 97.3%,
Registered consistent upwards trend in office utilisation throughout the year, with unique daily entries across our buildings up 18% vs prior year, and 81% of lettings in year resulting in customers taking more or same space, as demand remains firmly focused on high-quality space in the best locations
Started two net zero carbon developments in Victoria and
Major retail: strong income growth, as rental reversions reach inflection point and turn positive
Delivered 6.9% LFL net income growth, with occupancy + 130bps to 95.4%, and
Further focusing investment in best-in-class destinations, with the sale of our two smallest outlets and accretive investment of c.
Capitalised on clear focus from brands on fewer, bigger, better stores, with the attraction our locations offer reflected in 4.1% YoY sales growth, resulting in growing competition for space
Attraction of high and growing cashflow reflected in 0.2% increase in asset values in second half (FY-1.1%), even though valuers' assumed 1.4% ERV growth continues to trail operational performance, with low to mid single digit percentage growth in ERVs expected for current year
Mixed-use: starting first on-site preparations in
Secured planning consent for 1,800-homes
Progressing optimisation of plans for Mayfield and rest of portfolio to enhance risk/return profile
Underpinning our strategy: strong capital base following pro-active capital recycling
Sold
Maintained strong capital base, with long 9.5-year average debt maturity,
Capitalised on sector-leading access to credit, with AA/AA- ratings, via
An alternative performance measure. The Group uses a number of financial measures to assess and explain its performance, some of which are considered to be alternative performance measures as they are not defined under IFRS. For further details, see the Financial review and table 14 in the Business analysis section.
Including our proportionate share of subsidiaries and joint ventures, as explained in the Financial review. The condensed consolidated preliminary financial information is prepared under
Including the benefit of
Contact:
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Email: enquiries@landsec.com
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