(Reuters) -British commercial landlord Land Securities raised its annual profit and rental income forecasts on Friday, supported by resilient demand for prime offices and major retail assets.
The owner of London’s Piccadilly Lights has been selling its non-core London office assets and increasing investments in retail and residential projects, as it grapples with depressed valuations for office assets.
It plans to establish a residential platform exceeding 2 billion pounds ($2.68 billion) and retail platform of more than 1 billion pounds by 2030.
“Although wider economic uncertainties persist, we see no signs of this impacting customer demand, so as we deliver our strategy,” the company said in a statement.
Land Securities expects like-for-like net rental income to grow 4%-5% for the year ending March 31, up from its previous forecast of 3%-4%.
For fiscal 2026, EPRA earnings-per-share growth, a key metric for real estate firms, is expected to reach the top end of its 2%–4% target, before factoring in the impact of office property Queen Anne’s Mansions sale to Arora Group.
EPRA earnings per share exclude property valuation changes and focus on recurring rental income.
($1 = 0.7451 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Subhranshu Sahu)
