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LAND

Land Securities Group LSE:LAND Stock Report

Last Price

UK£5.36

Market Cap

UK£4.0b

7D

-12.5%

1Y

-22.6%

Updated

24 Sep, 2022

Data

Company Financials +
LAND fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends5/6

LAND Stock Overview

At Landsec, we build and invest in buildings, spaces and partnerships to create sustainable places, connect communities and realise potential.

Land Securities Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Land Securities Group
Historical stock prices
Current Share PriceUK£5.36
52 Week HighUK£8.22
52 Week LowUK£5.30
Beta1.33
1 Month Change-18.35%
3 Month Change-25.19%
1 Year Change-22.57%
3 Year Change-37.39%
5 Year Change-44.91%
Change since IPO-35.06%

Recent News & Updates

Shareholder Returns

LANDGB REITsGB Market
7D-12.5%-10.8%-3.1%
1Y-22.6%-27.8%-13.8%

Return vs Industry: LAND exceeded the UK REITs industry which returned -27.8% over the past year.

Return vs Market: LAND underperformed the UK Market which returned -13.8% over the past year.

Price Volatility

Is LAND's price volatile compared to industry and market?
LAND volatility
LAND Average Weekly Movement4.9%
REITs Industry Average Movement3.9%
Market Average Movement5.2%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.7%

Stable Share Price: LAND is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: LAND's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1944610Mark Allanhttps://www.landsec.com

At Landsec, we build and invest in buildings, spaces and partnerships to create sustainable places, connect communities and realise potential. We are one of the largest real estate companies in Europe, with a £11 billion portfolio of retail, leisure, workspace and residential hubs. Landsec is shaping a better future by leading our industry on environmental and social sustainability while delivering value for our shareholders, great experiences for our guests and positive change for our communities.

Land Securities Group Fundamentals Summary

How do Land Securities Group's earnings and revenue compare to its market cap?
LAND fundamental statistics
Market CapUK£3.97b
Earnings (TTM)UK£869.00m
Revenue (TTM)UK£679.00m

4.6x

P/E Ratio

5.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
LAND income statement (TTM)
RevenueUK£679.00m
Cost of RevenueUK£307.00m
Gross ProfitUK£372.00m
Other Expenses-UK£497.00m
EarningsUK£869.00m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 15, 2022

Earnings per share (EPS)1.17
Gross Margin54.79%
Net Profit Margin127.98%
Debt/Equity Ratio55.4%

How did LAND perform over the long term?

See historical performance and comparison

Dividends

6.9%

Current Dividend Yield

50%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is LAND undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for LAND?

Other financial metrics that can be useful for relative valuation.

LAND key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue12.5x
Enterprise Value/EBITDA21.8x
PEG Ratio-0.6x

Price to Earnings Ratio vs Peers

How does LAND's PE Ratio compare to its peers?

LAND PE Ratio vs Peers
The above table shows the PE ratio for LAND vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average5.9x
BLND British Land
3.5x-17.0%UK£3.4b
LXI LXI REIT
13.5x15.6%UK£2.2b
UKCM UK Commercial Property REIT
3.4xn/aUK£805.6m
BCPT Balanced Commercial Property Trust
3.2xn/aUK£601.9m
LAND Land Securities Group
4.6x-8.0%UK£4.0b

Price-To-Earnings vs Peers: LAND is good value based on its Price-To-Earnings Ratio (4.6x) compared to the peer average (5.9x).


Price to Earnings Ratio vs Industry

How does LAND's PE Ratio compare vs other companies in the GB REITs Industry?

Price-To-Earnings vs Industry: LAND is good value based on its Price-To-Earnings Ratio (4.6x) compared to the UK REITs industry average (6x)


Price to Earnings Ratio vs Fair Ratio

What is LAND's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

LAND PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio4.6x
Fair PE Ratio13.8x

Price-To-Earnings vs Fair Ratio: LAND is good value based on its Price-To-Earnings Ratio (4.6x) compared to the estimated Fair Price-To-Earnings Ratio (13.8x).


Share Price vs Fair Value

What is the Fair Price of LAND when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: LAND (£5.36) is trading below our estimate of fair value (£11.38)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-8.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LAND's earnings are forecast to decline over the next 3 years (-8% per year).

Earnings vs Market: LAND's earnings are forecast to decline over the next 3 years (-8% per year).

High Growth Earnings: LAND's earnings are forecast to decline over the next 3 years.

Revenue vs Market: LAND's revenue (1.1% per year) is forecast to grow slower than the UK market (4.6% per year).

High Growth Revenue: LAND's revenue (1.1% 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 (5.7%).


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Past Performance

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

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-29.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: LAND has a large one-off gain of £517.0M impacting its March 31 2022 financial results.

Growing Profit Margin: LAND became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: LAND has become profitable over the past 5 years, growing earnings by -29% per year.

Accelerating Growth: LAND has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: LAND has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (126.7%).


Return on Equity

High ROE: LAND's Return on Equity (10.9%) is considered low.


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Financial Health

How is Land Securities Group's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: LAND's short term assets (£668.0M) do not cover its short term liabilities (£872.0M).

Long Term Liabilities: LAND's short term assets (£668.0M) do not cover its long term liabilities (£4.0B).


Debt to Equity History and Analysis

Debt Level: LAND's net debt to equity ratio (53.8%) is considered high.

Reducing Debt: LAND's debt to equity ratio has increased from 25.4% to 55.4% over the past 5 years.

Debt Coverage: LAND's debt is not well covered by operating cash flow (8.6%).

Interest Coverage: LAND's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: LAND's dividend (6.91%) is higher than the bottom 25% of dividend payers in the UK market (2.05%).

High Dividend: LAND's dividend (6.91%) is in the top 25% of dividend payers in the UK market (5.77%)


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 increased over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (49.9%), LAND's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (71.9%), LAND's dividend payments are covered by cash flows.


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Management

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

8.3yrs

Average management tenure


CEO

Mark Allan (50 yo)

2.42yrs

Tenure

UK£2,000,000

Compensation

Mr. Mark Christopher Allan serveds as CEO & Executive Director at Land Securities Group Plc since April 14, 2020. He had been Chief Executive Officer and Director at St Modwen Properties since December 1,...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD2.19M) is about average for companies of similar size in the UK market ($USD2.71M).

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


Leadership Team

Experienced Management: LAND's management team is seasoned and experienced (8.3 years average tenure).


Board Members

Experienced Board: LAND's board of directors are considered experienced (3.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: LAND insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

LSE:LAND Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
18 Jul 22BuyUK£99,516Mark AllanIndividual14,672UK£6.78
27 Sep 21BuyUK£39,999Madeleine CosgraveIndividual5,652UK£7.08

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 61.56% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
10.65%
BlackRock, Inc.
78,868,975£422.6m-1.38%0.01%
7.86%
Norges Bank Investment Management
58,205,425£311.9m-14.65%0.05%
4.96%
Schroder Investment Management Limited
36,729,740£196.8m-3.2%0.18%
4.48%
The Vanguard Group, Inc.
33,200,676£177.9m-0.86%no data
3.71%
State Street Global Advisors, Inc.
27,451,237£147.1m2.17%0.01%
3.55%
Legal & General Investment Management Limited
26,277,559£140.8m0.65%0.05%
2.3%
Alecta Pensionsförsäkring, ömsesidigt
17,000,000£91.1m0%0.32%
2.2%
Janus Henderson Group plc
16,314,339£87.4m7.2%0.06%
2.2%
UBS Asset Management
16,267,669£87.2m17.76%0.02%
2%
Jupiter Fund Management Plc
14,801,161£79.3m9.45%0.31%
1.68%
Stichting Pensioenfonds ABP
12,429,553£66.6m-4.83%0.11%
1.54%
JPMorgan Chase & Co, Private Banking and Investment Banking Investments
11,423,877£61.2m26.75%0.03%
1.41%
LGT Capital Partners (FL) AG
10,417,771£55.8m-0.64%2.87%
1.38%
JPMorgan Chase & Co, Brokerage and Securities Investments
10,204,674£54.7m38.74%0.06%
1.31%
Dimensional Fund Advisors LP
9,678,828£51.9m-0.67%0.01%
1.25%
J O Hambro Capital Management Limited
9,263,068£49.6m64.7%0.34%
1.2%
Amundi Asset Management
8,882,416£47.6m87.83%0.02%
1.17%
Royal London Asset Management Limited
8,639,748£46.3m-0.87%0.1%
1.16%
Aviva Investors Global Services Limited
8,558,396£45.9m5.63%0.11%
1.1%
HSBC Global Asset Management (UK) Limited
8,125,701£43.5m0.73%0.04%
1.05%
Northern Trust Global Investments
7,751,649£41.5m9.24%0.01%
0.98%
Ibercaja Gestión SGIIC S.A.
7,243,304£38.8m0%1.55%
0.93%
M&G Investment Management Limited
6,922,700£37.1m-55.35%0.1%
0.8%
AXA Investment Managers S.A.
5,894,446£31.6m62.42%0.08%
0.73%
abrdn plc
5,382,436£28.8m1.93%0.03%

Company Information

Land Securities Group plc's 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
  • Implied Market Cap: UK£3.968b
  • Shares outstanding: 740.64m
  • 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 SharesUSUSDSep 2002
LANDLSE (London Stock Exchange)YesOrdinary SharesGBGBPSep 2002
LSU2DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2002
LANDLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPSep 2002
LDSC.YOTCPK (Pink Sheets LLC)UNSPONSORED ADRUSUSDNov 2016

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/24 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/03/31
Annual Earnings2022/03/31


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.