Latest news with #LandSecuritiesGroup
New Straits Times
16-05-2025
- Business
- New Straits Times
UK's Land Securities swings to annual profit
KUALA LUMPUR: British commercial property firm Land Securities Group swung to an annual profit on Friday, helped by strong occupancy rates and rental growth in its London and retail assets. "We continue to see a steady pick-up in investor interest and activity in London and major retail," the company said, adding that it has yet to see an impact on investor appetite from the current macro uncertainties. The company has been expanding in major retail destinations, recently acquiring one of the UK's premier shopping centres as signs of recovery in the property market strengthen amid falling interest rates and stabilising property values. Land Securities' EPRA net tangible assets - an industry measure that represents the value of its buildings - rose 1.7 per cent year-on-year to 874 pence per share by March end. The company reported a pre-tax profit of 393 million pounds (US$523.8 million) for the year ended March 31, compared to a loss of 341 million pounds last year.
Yahoo
12-04-2025
- Business
- Yahoo
Here's how to produce a £1,400 second income from a £20k ISA in the next year
Earning a second income sounds like hard work – but it doesn't have to be. In fact, it's possible to build one simply by investing in dividend-paying shares inside a Stocks and Shares ISA. One of the best things about this approach is that it can generate passive income, money that rolls in without lifting a finger. FTSE 100 companies do the heavy lifting, investors sit back and enjoy the results. All free of tax thanks to the ISA wrapper. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions. Here's how my strategy would pan out. Let's say an investor puts this year's full £20,000 ISA allowance into a basket of FTSE 100 dividend shares. With careful stock picking, they could deliver an average dividend yield of around 7%. If they did that, they could be looking at £1,400 in income over the next 12 months. Any share price growth will be on top of that, but obviously, there's a danger the original capital may shrink in today's volatile markets. One dividend stock I think's worth considering is Land Securities Group (LSE: LAND), one of the UK's biggest real estate investment trusts (REITs). Its shares have had a rough time lately, down 5.5% in the last week and almost 20% over the past year. A mix of trends has worked against it — the shift to remote working has hit demand for office space while high street retail continues to struggle due to the cost-of-living squeeze and march of online shopping. But Landsec's adapting. It's pivoting towards residential property, with plans to build a £2bn platform in the years ahead. At the same time, it's scaling back new office developments to free up capital, and targeting stronger rental income from its £3bn retail arm, which includes successful retail and leisure destinations like Liverpool One. In February, the company reaffirmed its aim to grow earnings per share (EPS) by 20% by 2030, supported by portfolio reshuffles and cost cutting. It also announced that dividends will now be paid twice a year, making things a bit more predictable for investors. Landsec currently offers a juicy trailing dividend yield of 8.01%. That's very attractive, and the shares look decent value with a price-to-earnings ratio just above 10. But as with everything right now, these numbers should be treated cautiously. The wider uncertainty caused by Trump's tariffs could drag on earnings, by knocking business confidence and consumer spending. As with any dividend, whether those payouts hold up depends on what comes next. Retailers are struggling and now have to absorb April's employer's National Insurance hike, along with an increased Minimum Wage. This could hit Landsec's rental income. Struggling companies could also cut back on office space. House prices could dip, hitting the group's residential venture. We are in uncharted waters today. Landsec's ambitious EPS growth target was set before Trumpian volatility, and maybe harder to deliver today. That's why I'd spread this year's ISA across several different shares. That way, if one falters, others might help smooth out the bumps. Markets are likely to stay choppy for a while. But reinvested dividend income can scoop up more shares at today's lower prices and, with luck, keep that second income growing over time. Not just in 2025, but 2026, 2027 and beyond… The post Here's how to produce a £1,400 second income from a £20k ISA in the next year appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Land Securities Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Yahoo
22-02-2025
- Business
- Yahoo
6.9% yield! I like this FTSE 100 dividend stock as I aim for big passive income
A dividend stock with a big yield can be a great way build up long-term income. But we don't usually want to see a share price slump at the same time. And that's exactly what's happened to Land Securities Group (LSE: LAND). Just look at this share price chart, especially over 10 years… Land Securities is a commercial real estate investment trust (REIT). I find myself increasingly drawn to them at the moment. We've had share price weakness across the board, as the property market has been under pressure. That depresses asset values, makes borrowing harder, and raises the general risk of failure. No wonder the market has turned away from the sector. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. But a fallen share price can give a nice boost to the dividend yield, and we're looking at a forecast 6.9% here. Well, we will be if the dividend is maintained. And that can be another risk for an investment firm facing high borrowing costs. With first-half results posted in November 2024, we heard that the average cost of debt had risen. In times of high interest, that's not surprising. And it can definitely be a bit of a worry. But wait, it's still only 3.5%, up from 3.3% a year previously. That was at 30 September. And the update said 'we expect this to remain stable during the second half'. If we still see a debt cost of 3.5% at full-year time, when the Bank of England's base rate is likely to still be at 4.5% (or not much less at best), I'll see that as a big win. Gross borrowings added up to £3,624m with £2,954m in medium-term notes. And that total is really not far off the trust's £4.3bn market capitalisation. I suspect it could weigh fairly heavily on the share price for a while yet. But there was still £2.2bn of cash and undrawn facilities available at the end of September. And the company reckons it could stand a 40% fall in portfolio valuation before its covenants could start to bite. I rate the liquidity as maybe under a bit of pressure, but nowhere near critical. The trust is big in shopping centers and retail parks. And the rise of online retailing could keep property values low and turn investors away. But it can work both ways. Investors with the money to spend can often buy properties at bargain rates. In December, Land Securities snapped up 92% of the Liverpool ONE shopping centre for £490m. Of that, £35m is deferred for two years, and the company reckons it should see a 7.5% return on its initial outlay. I think it got a cracking deal. The shopping centre has a mix of retail, restaurants, bars, and high-profile leasure brands. It's also home to the Everton Two official retail store (Everton Two, Liverpool One, geddit?). And it's very busy. I might be contrarian. But I rate the chances of the death of bricks-and-mortar retail as greatly exaggerated. And I think this share has to be worth considering for REIT investors with long-term income plans. The post 6.9% yield! I like this FTSE 100 dividend stock as I aim for big passive income appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Alan Oscroft has no position in any of the shares mentioned. The Motley Fool UK has recommended Land Securities Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
