Land Securities Group PLC (LSE:LAND) reported a 2.9% fall in in its total accounting return, reflecting a softening of London yields due to rising interest rates, pushing EPRA NTA per share down by 5.0% to 1,010p at the half-way stage.
The FTSE 100-listed property group said losses before tax were £192mln compared to a profit of £275mln last time with growth in earnings offset by market yield shift, while EPRA EPS rose 9.5% to 26.6p, supported by strong leasing and 8.3% like-for-like rental income growth.
“We continue to expect underlying EPRA EPS for this year to grow by a low to mid-single digit percentage, excluding the benefit from increased surrender premiums which were up £10mln in the first half of the year, and we expect dividend for the full year to grow in line with underlying EPRA EPS,” the company said.
Beyond full-year 2023, the exact shape of earnings progression will rely on the pace of future disposals and reinvestments, it added.
Mark Allan, chief executive, commented: “Our business remains underpinned by a strong balance sheet, with a low 31% LTV, long 9.8-year average debt maturity and no need to refinance any debt until 2026.”
“The successful execution of our strategy therefore means we are not only well placed for more challenging market conditions, but also have optionality to take advantage of new opportunities that will no doubt emerge as property markets continue to adjust to a new reality."