LSE:LAND

Stock Analysis Report

Executive Summary

At Landsec, we believe great places are for people to experience and are made with the experience of great people.


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Land Securities Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: LAND has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.5%

LAND

-1.3%

GB REITs

0.2%

GB Market


1 Year Return

9.8%

LAND

12.9%

GB REITs

6.4%

GB Market

Return vs Industry: LAND underperformed the UK REITs industry which returned 13.5% over the past year.

Return vs Market: LAND exceeded the UK Market which returned 7.1% over the past year.


Shareholder returns

LANDIndustryMarket
7 Day-3.5%-1.3%0.2%
30 Day0.4%0.6%-1.4%
90 Day5.0%5.4%3.8%
1 Year15.9%9.8%17.9%12.9%11.9%6.4%
3 Year4.2%-15.5%26.2%8.4%18.6%3.8%
5 Year-6.0%-28.3%27.4%2.1%34.8%4.0%

Price Volatility Vs. Market

How volatile is Land Securities Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Land Securities Group undervalued compared to its fair value and its price relative to the market?

21.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: LAND (£9.61) is trading below our estimate of fair value (£12.22)

Significantly Below Fair Value: LAND is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: LAND is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: LAND is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate LAND's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: LAND is good value based on its PB Ratio (0.7x) compared to the GB REITs industry average (1x).


Next Steps

Future Growth

How is Land Securities Group forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

68.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAND is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).

Earnings vs Market: LAND is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: LAND's is expected to become profitable in the next 3 years.

Revenue vs Market: LAND's revenue (0.09% per year) is forecast to grow slower than the UK market (3.5% per year).

High Growth Revenue: LAND's revenue (0.09% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: LAND's Return on Equity is forecast to be low in 3 years time (4.6%).


Next Steps

Past Performance

How has Land Securities Group performed over the past 5 years?

-69.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LAND is currently unprofitable.

Growing Profit Margin: LAND is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: LAND is unprofitable, and losses have increased over the past 5 years at a rate of -69.8% per year.

Accelerating Growth: Unable to compare LAND's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: LAND is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-20.8%).


Return on Equity

High ROE: LAND has a negative Return on Equity (-3.21%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Land Securities Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: LAND has a low level of unsold assets or inventory.

Debt Coverage by Assets: LAND's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: LAND has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: LAND has been profitable on average in the past, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: LAND's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if LAND has a sufficient allowance for bad loans.

Low Risk Liabilities: LAND reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if LAND has an acceptable proportion of non-loan assets held.

Low Risk Deposits: LAND has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if LAND has an appropriate level of bad loans.


Next Steps

Dividend

What is Land Securities Group's current dividend yield, its reliability and sustainability?

4.74%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Land Securities Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.7%marketbottom25%1.8%markettop25%5.1%industryaverage3.8%forecastin3Years5.0%

Current dividend yield vs market & industry

Notable Dividend: LAND's dividend (4.74%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: LAND's dividend (4.74%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: LAND's dividend payments have been volatile in the past 10 years.

Growing Dividend: LAND's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.4%), LAND's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: LAND's dividends in 3 years are forecast to be covered by earnings (83% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.0yrs

Average management tenure


CEO

Rob Noel (55yo)

7.8yrs

Tenure

UK£1,624,000

Compensation

Mr. Robert M. Noel, known as Rob, BSc, MRICS, serves as Independent Non Executive Director of Taylor Wimpey plc since October 01, 2019. Mr. Noel has been the Chief Executive Officer of Land Securities Grou ...


CEO Compensation Analysis

Compensation vs Market: Rob's total compensation ($USD2.11M) is below average for companies of similar size in the UK market ($USD3.33M).

Compensation vs Earnings: Rob's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Robert Noel
CEO & Director7.8yrsUK£1.62m0.015% £1.1m
Martin Greenslade
CFO & Director14.4yrsUK£1.06m0.059% £4.2m
Scott Parsons
Executive Officer10.1yrsUK£707.88kno data
Colette O'Shea
MD of London & Retail Portfolios and Director2.1yrsUK£827.00k0.0090% £641.9k
Edward Thacker
Head of Investor Relations0yrsno datano data
Tim Ashby
Group General Counsel & Company Secretary0yrsno datano data
Jill Brady
Group Human Resources Director1.1yrsno datano data
Martin Wood
Group Head of Tax & Treasury0yrsno datano data
Neil Pennell
Head of Design Innovation & Property Solutions11.8yrsno datano data
Marc Geddes
Head of Property for London Portfolio0yrsno datano data

9.0yrs

Average Tenure

54.5yo

Average Age

Experienced Management: LAND's management team is seasoned and experienced (9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Noel
CEO & Director7.8yrsUK£1.62m0.015% £1.1m
Martin Greenslade
CFO & Director14.4yrsUK£1.06m0.059% £4.2m
Colette O'Shea
MD of London & Retail Portfolios and Director2.1yrsUK£827.00k0.0090% £641.9k
Christophe Evain
Independent Non-Executive Director0.8yrsno data0.0011% £77.4k
Christopher Bartram
Non-Executive Director10.5yrsUK£70.00k0.0026% £184.8k
Cressida Hogg
Non-executive Chairman1.6yrsUK£290.00k0.0056% £400.5k
Edward H. Carter
Senior Independent Director3.6yrsUK£84.00k0.0013% £91.0k
Nicholas Cadbury
Independent Non-Executive Director3.1yrsUK£90.00k0.0010% £72.4k
Stacey Rauch
Non-Executive Director8.1yrsUK£73.00k0.0011% £77.4k
Madeleine Cosgrave
Independent Non-Executive Director1.1yrsUK£18.00k0.00066% £47.3k

3.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: LAND's board of directors are considered experienced (3.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: LAND insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Land Securities Group plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Land Securities Group plc
  • Ticker: LAND
  • Exchange: LSE
  • Founded: 1944
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£7.164b
  • Shares outstanding: 740.38m
  • Website: https://www.landsec.com

Number of Employees


Location

  • Land Securities Group plc
  • 100 Victoria Street
  • London
  • East Lothian
  • SW1E 5JL
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LSGO.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1992
LANDLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1992
LSU2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
LANDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1992
LDSC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2016

Biography

At Landsec, we believe great places are for people to experience and are made with the experience of great people. As one of the largest real estate companies in Europe, our £13.8 billion portfolio spans 24 million sq ft of well-connected, experience-led retail, leisure, workspace and residential hubs, with a growing focus on London. From the iconic Piccadilly Lights in the West End and the regeneration of London’s Victoria, to the creation of retail destinations at Westgate Oxford and Trinity Leeds, we own and manage some of the most successful and memorable real estate in the UK. We aim to lead our industry in critical long-term issues – from diversity and community employment, to carbon reduction and climate resilience. We deliver value for our shareholders, great experiences for our customers and positive change for our communities. At Landsec, everything is experience. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 20:43
End of Day Share Price2020/02/21 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.