Landsec: major retail “more attractive than office or residential”
Landsec has said that “major retail remains more attractive than office or residential development”.
In its final results for the year ending 31st March 2026, the real estate investment trust (REIT) said that growing its investment into major retail destinations remains its highest conviction call, citing high income yields and the attractive income growth on offer “for the right assets”.
The REIT said that although it had assessed acquisition opportunities over the past twelve months, it chose not to progress any acquisitions during the year but remains “active in assessing future opportunities”. The group also highlighted over £3bn of assets in the hands of parties “who are not natural long-term owners which will likely come to market in the next year or two.”
Landsec also said that occupational markets for retail “continue to be characterised by two well established trends: a significant concentration of demand on the very best space coupled with heavy constraints on new supply.”
Over the course of the year, Landsec recorded a pre-tax profit of £346m, down from £393m the previous year.
The REIT said its like-for-like net rent for the current financial year is expected to grow approximately 3 to 5%, with no signs of slowdown in customer demand.
Mark Allan, chief executive of Landsec, said: “Over the past few years we have actively positioned Landsec for a higher inflation and higher interest rate world. We have focused our portfolio on the best quality locations where customer demand is highest, scaled back development, reduced our overhead costs and maintained our strong capital base. Occupancy is now up to a 20-year high and rents are growing at their fastest pace in nearly two decades.”