Landsec FY26 results broadly in line, mid-term guidance reiterated

Overview

This report is Goldman Sachs' commentary on Landsec's FY26 results. It notes that Landsec's FY26 performance was broadly in line with Goldman Sachs' estimates and market consensus: EPRA EPS was in line with GSe and slightly above consensus, EPRA NTA per share was 2% above GSe and in line with consensus, and DPS was in line with both GSe and Visible Alpha consensus. Operating performance was more positive, with growth in like-for-like rent income and lower vacancy, while both the office and retail businesses showed better rent momentum.

Core views

The core view is that the results were broadly as expected, so the immediate share price impact is likely to be limited; however, operating quality is relatively strong, especially rent growth, higher rents on renewals and relettings, and low vacancy, which support medium-term earnings growth. Management reiterated medium-term guidance, expecting FY27 EPS to be stable, FY28 EPRA EPS to grow in the high single digits, and FY30 EPS to be around 62p. Key points to monitor are whether rent growth can offset financing cost pressure in a higher-rate environment and whether the company can capture asset rotation opportunities in the current market.

Analysis framework

The report mainly uses a results-comparison and operating-metric decomposition approach, comparing FY26 actuals with Goldman Sachs estimates, Visible Alpha consensus, and 1H26 data, while separately assessing office, retail, and balance sheet metrics. Key indicators include EPRA EPS, EPRA NTA per share, DPS, like-for-like net rental income, EPRA vacancy, ERV growth, LTV, debt cost, disposals, and acquisitions.

Methodology notes

• earnings comparisonActuals vs. GSe and Visible Alpha consensus

  By comparing actual company results with analyst forecasts and market consensus, determine whether earnings were ahead of or behind expectations.

  The report compares EPRA EPS, EPRA NTA per share, and DPS against Goldman Sachs estimates and Visible Alpha Consensus Data, concluding that results were broadly in line with expectations.

• property operating metricsEPRA metrics and like-for-like rental growth

  EPRA EPS, EPRA NTA, vacancy, and like-for-like net rental income are used to measure a property company's profitability, net asset value, and operating momentum.

  Landsec's FY26 like-for-like net rental income grew 4.6%, and EPRA vacancy fell to 2.0%, indicating strong operating momentum.

• broker factor frameworkGS Factor Profile

  Goldman Sachs uses four attributes—Growth, Financial Returns, Multiple, and Integrated—to compare stocks with the market and sector peers.

  This framework is disclosed in the report appendix as a methodological note and is not the main basis for the earnings review conclusions.

Asset mapping & comparison

Structured mapping from thesis to named assets (strengths, weaknesses, peers, risks).

• Landsec (LAND.L)

  research object

  Strengths

  FY26 results were broadly in line with expectations; like-for-like net rental income grew 4.6%; EPRA vacancy fell to 2.0%; office and retail rent momentum was strong; the medium-term EPS growth guidance was reiterated.

  Weaknesses

  FY27 EPS is expected to remain stable; asset disposals have a negative effect on NTA and EPS; EPRA LTV increased to 40.4%.

  Comparison

  EPRA EPS was in line with Goldman Sachs estimates and 1% above Visible Alpha consensus; EPRA NTA per share was 2% above Goldman Sachs estimates and broadly in line with consensus; DPS was broadly in line with estimates and consensus.

  Risks

  Higher rates may offset rent growth; asset rotation opportunities and execution prices are uncertain; disposals of low-return assets will pressure EPS in the near term; changes in property valuations and financing conditions may affect NTA and leverage.

Key data

• FY26 adjusted diluted EPS51.4pUp 2% year on year, in line with Goldman Sachs' estimate of 51.4p and 1% above the Visible Alpha consensus of 51.1p.
• EPRA NTA per share882pUp 2% from 867p at end-September 2025, 2% above Goldman Sachs' estimate of 867p, and broadly in line with consensus at 880p.
• FY26 DPS41.2pUp 2% year on year, broadly in line with Goldman Sachs' estimate of 41.0p and the Visible Alpha consensus of 41.1p.
• Like-for-like net rental income growth4.6%Below the 5.2% in 1H26, but in line with the company's 4%-5% guidance provided in 1H26.
• EPRA vacancy2.0%Down 30bp from 2.3% in 1H26, the lowest level in 20 years.
• Office like-for-like net rental income growth6.0%FY26 growth of 6.0% was below the 6.8% in 1H26; office ERV growth was 7.1%.
• Retail like-for-like net rental income growth5.5%Above the 5.0% in 1H26; retail ERV growth was 5.8%.
• EPRA LTV40.4%Up 40bp from 40.0% at end-September 2025.
• Debt cost3.6%As of end-March 2026, unchanged from end-September 2025.
• Asset disposals£705mnDisposals of low-return or no-return assets had a 1.1% cost to overall NTA and an approximately -0.4% EPS impact.

Impact & implications

The report expects the results release to have a limited but slightly positive impact on trading in Landsec shares. The results themselves were not a material positive surprise, but low vacancy, office and retail rent growth, improved rents on renewals and relettings, and the medium-term target of around 62p FY30 EPS should support market confidence in the company's operating resilience. That said, asset disposals, a modest increase in LTV, and the interest-rate backdrop may still limit valuation re-rating potential.

Risks

• It remains to be seen whether rent growth can offset financing cost pressure in a high-rate environment.
• Asset rotation opportunities and execution pricing are uncertain.
• The £705mn asset disposal created a 1.1% cost to overall NTA and an approximately -0.4% EPS impact.
• EPRA LTV rose to 40.4%, and changes in leverage may affect investor views on the balance sheet.
• The report discloses that Goldman Sachs has an investment banking relationship or potential investment banking compensation arrangement with Landsec, so conflict-of-interest disclosures should be noted.

What to watch

• Whether FY27 EPS can remain stable as management expects.
• Whether FY28 EPRA EPS can achieve high-single-digit growth.
• Whether FY30 EPS can reach around 62p, implying a roughly 5% CAGR for FY27-FY30.
• Whether like-for-like net rental income, ERV growth, and rent premiums on renewals/relettings can continue in the office and retail businesses.
• Whether EPRA vacancy can stay at a low level.
• The pace of asset disposals, acquisitions, and asset rotation in the current market environment.
• The impact of changes in rates and debt costs on earnings and valuation.