Landsec ups guidance amid falling profits

Bluewater owner Landsec has announced that it has upped its guidance for the year as it shifts away from office developments to retail sites and building more homes.

The company told shareholders that it is on track to deliver growth in net rental income of between 4% and 5% this financial year, having previously guided to between 3% and 4%. It also said it is set to post earnings per share at the “top end” of previous targets.

Its earnings per share rose by 3.2% for the half year ended 30 September 2025, on the back of a 5.2% rise in like-for-like income and a boost from reductions in overhead costs.

Despite this, the company posted profit before tax of £98m, down from £243m in the same period last year.

It put this down to a roughly £67m loss linked to the sale of £644m of assets “which generated little or no return”. This included the sale of four retail parks, including Lakeside in Thurrock, for around £261m.

It said it will “prioritise acquisition opportunities in retail”, following recent deals to grow its stakes in popular retail destinations, such as Bluewater and Liverpool One.

CEO Mark Allan said: “We continue to see clear positive momentum across every part of our business, notwithstanding the wider economic environment.

“Owning the right real estate has never been more important, so we continue to benefit from our proactive portfolio repositioning over the last few years, and our entire business is also benefitting from a sharper focus on sustainable EPS growth as our primary performance objective, providing greater clarity in terms of priorities and decision making.”

He added: “This gives us the confidence to raise both our near-term EPS guidance and medium-term EPS growth potential. With a best-in-class portfolio, effective capital allocation, and a clarity of purpose, priorities and objectives, our business is well positioned to build on our strong performance momentum.”