Central London-focused real estate group Land Securities Group PLC (LSE:LAND)’s annual earnings from rental income dropped to £371 million, from £393 million in 2023, while earnings per share (EPS) remained stable at 50.1 pence.
Despite these earnings, Landsec reported a loss before tax of £341 million due to a valuation writedown of £625 million.
This significant hit in the value of its property portfolio reflected market conditions and changes in investor sentiment, as well as losses on disposals and increased financing costs.
Net debt increased slightly to £3.5 billion and the loan-to-value (LTV) ratio rose to 35%. However, the company said it maintained a strong balance sheet with a long average debt maturity of 9.5 years and substantial cash and undrawn facilities amounting to £1.9 billion.
Looking ahead, Landsec anticipates a positive outlook for return on equity as property values begin to stabilise, but earnings per share (EPS) for financial 2025 is projected to be slightly below the 50.1p recorded this year.