Land Securities Group PLC
🇬🇧 LAND.LSE · London · GB00BYW0PQ60
Real Estate
GBX 627.50 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
13.7
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 627.50 ÷ 45.92 = 13.7
TTM period through: 2026-03-31
Forward P/E (estimated): 12.2
Based on analyst estimates
Reference: Provider P/E (Trailing): 13.6
Yield (Fwd)
6.57%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 4.99%
Div. Growth (5Y CAGR)
-2.4%
Growth Streak
4 yrs
Consecutive years of increase
Net Debt/EBITDA (TTM)
9.3x
Latest quarter: 14.1x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2026-03-31
Latest quarter (2026-03-31): 14.1x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
193.9%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 84.5%
Cash Flow Payout (TTM): 128.9%
ROE
5.3%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
19.1x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Land Securities Group is a premier UK REIT trading at an attractive 28% discount to its net asset value due to temporary, non-cash property revaluations tied to elevated interest rates. Trading at 627.50 GBX, the stock sits well below our fair value P/FFO estimate of 660-943 GBX, offering compelling upside potential and making it worth considering for new positions. The 5.0% yield is highly secure with a 53% AFFO payout ratio, providing robust income while waiting for a macroeconomic real estate recovery.
Sector Context
Land Securities Group is a leading UK Real Estate Investment Trust (REIT) that owns, develops, and manages a premium portfolio of commercial, retail, and mixed-use properties. For dividend investors, REITs operate under structural mandates requiring high distributions of taxable income. Because traditional earnings (and P/E ratios) are often heavily distorted by non-cash property revaluations, metrics like P/FFO (Funds From Operations) and AFFO payout ratios are the critical benchmarks for assessing true cash generation and dividend sustainability in this sector.
Temporary Opportunity Identified
Statutory non-cash accounting losses driven by massive negative property portfolio revaluations amid rapidly rising interest rates, which temporarily mask the underlying operational cash flow and leasing stability.
📊 Strategy Analysis
- • Trading at 627.50 GBX, below the fair value P/FFO range of 660-943 GBX, offering an attractive upside alongside a steep 28.3% discount to its NAV of 875.72 GBX.
- • Underlying operations remain highly cash-generative, evidenced by an attractive P/FFO of 13.3x and an exceptionally cheap P/AFFO of 8.6x, despite GAAP statutory losses.
- • The 5.0% trailing dividend yield is well-protected by a conservative AFFO payout ratio of 53.3%, ensuring distributions are sustainably covered by real cash flows.
- • Management continues prudent balance sheet management, deleveraging Net Debt/EBITDA to 9.26x from historical highs of 11.4x, supported by a healthy 0.69x Debt/Equity ratio.
⚠ What to Watch
- • Mandatory capital expenditures under UK MEES regulations require ongoing investment (via its £135M Net Zero plan) to achieve EPC 'B' ratings by 2030, presenting stranded asset risk if unfulfilled.
- • The company holds long-term structural liabilities under the UK Government's Developer Remediation Contract to retroactively fund life-critical cladding and fire safety remediation on legacy residential buildings.
- • While deleveraging is progressing, the Net Debt/EBITDA of 9.26x remains a notable headwind that exposes the company to elevated refinancing costs in a prolonged high-interest-rate environment.
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-06-06
Disclaimer: This information is for educational purposes only. Not financial advice.