March 7 (Reuters) - Italy's biggest telecoms tower firm INWIT said on Thursday it plans to invest around 800 million euros ($875 million) as part of its updated targets to 2026.

It said investments will be about 150 million euros higher than it had forecast last March, and will focus on building new sites, deploying distributed antenna system indoor coverage, and to buy land.

INWIT expects total revenues of between 1.16 and 1.24 billion euros in 2026, with a core earnings margin of around 92%.

It also pledged to return a dividend of about 0.48 euros per share on its 2023 results, forecasting a 7.5% yearly increase in payouts through 2026.

The company reported a 10.8% yearly increase in earnings before earnings before interest, taxes, depreciation and amortization (EBITDA) to 226.1 million euros in the last quarter of 2023, and a 12.1% increase in total revenues to 247.1 million euros. ($1 = 0.9142 euros) (Reporting by Alessandro Parodi, editing by Elaine Hardcastle/Keith Weir)