LANDSEC

ANNUAL REPORT

2025

Landsec Annual Report 2025

CONTENTS

STRATEGIC REPORT

01 Our portfolio

02 Chief Executive’s statement

06 Market context

07 Our business model

08 Our strategy

10 Our KPIs

11 Operating and portfolio review

16 Financial review

22 Our stakeholders

25 Our people and culture

28 Our approach to sustainability

33 TCFD statement

38 Managing risk

41 Principal risks and uncertainties

46 Going concern and viability

48 Non-financial and sustainability

informationstatement

GOVERNANCE

50 Introduction from the Chair

51 Board of Directors

55 Executive Leadership Team

56 Governance report

60 Introduction from the Chair of the

NominationCommittee

61 Report of the Nomination Committee

62 Introduction from the Chair of the

Audit Committee

64 Report of the Audit Committee

68 Directors’ Remuneration Report –

Chair’sAnnualStatement

69 Annual Report on Remuneration

80 Directors’ Report

FINANCIAL STATEMENTS

83 Statement of Directors’ Responsibilities

84 Independent Auditor’s Report

92 Income statement

92 Statement of comprehensive income

93 Balance sheets

94 Statements of changes in equity

95 Statements of cash flows

96 Notes to the financial statements

ADDITIONAL INFORMATION

152 Business analysis – EPRA disclosures

158 Business analysis – Group

160 Sustainability performance

163 Alternative performance measures

164 Combined Portfolio analysis

166 Reconciliation of segmental information

notetostatutory reporting

167 Ten-year summary

169 Subsidiaries, joint ventures and associates

173 Shareholder information

174 Key contacts and advisers

175 Glossary

IBC Cautionary statement

While this year saw political

change altering the UK and

global context, many of the

preceding years’ challenges

persist. Inflation continues

toshape our economy and

define our sector. The cost

ofcapital remains elevated,

creating a challenging

environment in which to grow.

It’s within market conditions

likethese that the true quality

of a business is revealed.

Facing into the storm, we have

remained clear-eyed in our

focus to deliver. Disciplined in

maintaining our balance sheet.

Agile in our ability to seize the

opportunities that emerged

andrelentless in our ability

toexecute when it matters.

We enter the new financial

yearhaving put in place the

building blocks for further

growth with the release of

ourupdated strategy.

We are rebalancing our portfolio

to deliver higher sustainable

growth in income and earnings

per share.

With a focus on key urban

growth locations, we will

consolidate our high-quality

office portfolio, deepen our

investment in high-income

return retail and increase our

exposure to a structural growth

sector by building our residential

platform. All underpinned by

ourheritage and long-standing

competitive advantage in

shaping places that stand

thetest of time.

Despite the challenging

conditions we’ve acted decisively

to position Landsec for long-

term sustainable growth.

Strong leadership. Refreshed

strategy. Clear purpose.

LANDSEC ANNUAL REPORT 2025 01

VALUATION

£6.7bn

VALUATION

£2.6bn

VALUATION

£0.8bn

WHO WE ARE

We are one of the leading real estate

companies in the UK. We have a best-in-

class office and retail portfolio, both of

which are focused on areas of strong

customer demand, and a £3bn residential

pipeline, providing a valuable opportunity

togrow in this attractive, structural growth

market. Our unique ability to shape places

that stand the test of time underpins our

long-term growth potential.

OUR PURPOSE

Landsec is built on places that stand the test

of time. Places that are scarce in number, but

high in potential. Places that enhance quality

of life and bring joy to the people who live,

work in or visit them.

READ HOW WE ARE SHAPING PLACES THAT STAND

THE TEST OF TIME ON PAGES 07-09.

OUR PERFORMANCE

VALUATION (£BN)

10.9

10.0

EPRA EARNINGS (£M)

374

371

DIVIDEND PER SHARE (PENCE)

40.4

39.6

2025 2024

Central London Retail Residential-led

OUR PORTFOLIO

LANDSEC ANNUAL REPORT 202502

STRATEGIC REPORT

CHIEF EXECUTIVE’S STATEMENT

MARK ALLAN,

CHIEF EXECUTIVE

A CLEAR TRAJECTORY FOR GROWTH,

BOTH NEAR AND LONGER TERM

Owning the right real estate has never been

more important. Irrespective of sector, there

is a clear focus from customers on best-in-

class space and as this space remains in short

supply, rents are growing. As such, we are

confident in how we have repositioned our

portfolio over the past four years. The success

of this is vindicated by the strength of our

operational performance, with like-for-like

rental income up 5.0% and like-for-like

occupancy up 100bps to 97.2%, substantially

outperforming wider markets.

In the long run, it is clear that income growth

is the main driver of value growth in both

equity markets and real estate, so our

primary focus is on delivering sustainable

income and EPS growth. For an £11bn REIT

likeus, materially shifting portfolio mix takes

time, so we need to think differently about

what drives EPS growth near term and what

we believe will drive it longer term, as these

are not necessarily the same.

In the near term, most of our EPS growth

willbe driven by the assets we own today,

notthe assets we decide to buy or develop

from here. In that respect, we expect our

customers’ focus on quality to persist and

forthis to support continued like-for-like

rental income growth. This encouraging

outlook on income is further supported by

ourclear plans to further reduce overhead

costs by over 10% over the next two years

following the 13% saving we already made

over the last two years. These two factors

combined underpin our expectations for

positive near-term EPS growth.

The capital allocation decisions we make

today have more impact on EPS growth

inthemedium to longer term. As such, our

decisions on development and recycling

capital today are therefore about making

sure that in 3-5 years’ time, our asset mix

issuch that we are still as confident about

the income growth prospects of our portfolio

at that point, as we are about our current

portfolio today.

These two factors – impact on sustainable

income and EPS growth nearer term and

impact on desired portfolio mix longer term

– are, alongside our assessment of risk,

the primary guide for our capital allocation

decisions. It is this framework which

underpinned our decision to invest £0.6bn

of capital in two of the very best retail

destinations in the UK over the past year –

Liverpool ONE and Bluewater – and to sell

£0.4bn of ageing hotels with a substantial

capex bill looming. It is also what underpins

our aim to invest a further £1bn in major

retailover the next 1-3 years, as we monetise

further non-core assets and surplus land.

And, on a 2-5-year view, our aim is to reduce

our capital employed in offices by £2bn to

build a sizeable residential platform, which

we believe will provide higher structural

growth and lower volatility.

Whilst we are mindful of the recent rise in

global economic uncertainty, we are yet to

see any impact of this on customer demand

or investment markets. Given the actions

LANDSEC ANNUAL REPORT 2025 03

we have taken over the past few years, our

outlook for EPS growth and return on equity

therefore remains positive. Executing our

strategy will build further on this and deliver

material value for shareholders by moving

to higher income, higher income growth

andlower cyclicality in the medium term.

STRONG OPERATIONAL PERFORMANCE

UNDERPINS SOLID FINANCIAL RESULTS

Our operational performance over the past

year has been strong. Occupancy increased

to a high 97.2% and we delivered 5.0% growth

in like-for-like net rental income, with strong

growth across London and major retail. For

both, our reversionary potential is growing,

with 8% rental uplifts on relettings/renewals.

In retail in particular, this trend has continued

to rise, up from 1% last year to 4% at the half

year, 7% for the full year and 10% for current

lettings. Overall leasing was 4% above ERV,

driving 4.2% ERV growth.

Our strong operational performance and

£4mreduction in overhead costs, on top of

the £7m reduction in the prior year, mean

our financial results for the year are positive.

Despite the earnings impact of the significant

disposals we made early in the year, EPRA

earnings still increased £3m to £374m, or

50.3pence per share. This was also despite

the fact that the prior year benefitted from

£14m, or 1.9 pence, higher surrender receipts

than the last 12 months and means EPS is

ahead of our initial guidance for the year.

Reflecting this, our dividend is up 2.0%.

The valuation of our portfolio was up 1.1%, in

line with our view a year ago that yields were

set to stabilise and values for the best assets

would return to growth. As such, our return

on equity improved to 6.4% and NTA per

share increased 1.7%. Meanwhile, our balance

sheet remains robust, with a long average

debt maturity of 9.6 years. Pro-forma for

disposals since the year-end, our LTV is

38.4%and average net debt/EBITDA is

7.7times. Following a £350m ten-year bond

issue at 4.625%, representing a 97bps credit

spread, and refinancing of £2.25bn revolving

credit facilities at stable margins during the

year, the benefit of our balance sheet

strength is clear and maintaining this

remains a key priority.

OUR STRATEGY

Through targeted investments and £3.3bn

ofdisposals since our Strategy Review in late

2020, we have established a high-quality

portfolio and pipeline of best-in-class

office-led, retail-led and residential-led

places with substantial income growth

potential. The predominant use of space

ineach of these areas differs, yet there is

increasingly more binding them together

than setting them apart, as the lines

between traditional uses of successful

urbanplaces continue to blur.

Our ability to curate these places to adapt

tothe evolving demands of modern cities

iswhat supports their sustained growth

overtime.

This strategy has paid off, as demand for

modern, sustainable office space in London

remains strong and in retail, brands continue

to concentrate on fewer, but bigger and

better stores in key locations. As supply of

both is constrained, rents in our portfolio

continue to grow, which underpins our

positive view on near-term income and EPS

growth. This reflects the investments

decisions we have made in recent years,

in terms of assets, but also in respect of

our organisation, people and technology

platform. Similarly, the investment decisions

we make over the next 1-2 years will

determine the trajectory for our returns

in 3-5 years’ time.

HIGHLIGHTS

TABLE 1

Mar 2025 Mar 2024 Change %

EPRA earnings (£m)

374 371 0.8

IFRS profit/(loss) before tax (£m) 393 (341) n/a

Total return on equity (%) 6.4 (4.0) 10.4

Basic earnings/(loss) per share (pence) 53.3 (43.0) n/a

EPRA earnings per share (pence)

50.3 50.1 0.4

Dividend per share (pence) 40.4 39.6 2.0

Combined Portfolio (£m)

1,2

10,880 9,963 9.2

IFRS net assets (£m) 6,532 6,447 1.3

EPRA Net Tangible Assets per share (pence)

874 859 1.7

Adjusted net debt (£m)

4,304 3,517 22.4

Group LTV ratio (%)

39.3 35.0 4.3

Proportion of portfolio rated EPC A-B (%) 56 49

Average upfront embodied carbon reduction

development pipeline (%)

41 40

Energy intensity reduction vs 2020 (%) 23 18

1. Including our proportionate share of subsidiaries

and joint ventures, as explained in the Presentation

of financial information in the Financial Review.

2. Includes owner-occupied property and non-current

assets held-for-sale.

LANDSEC ANNUAL REPORT 202504

STRATEGIC REPORT

CHIEF EXECUTIVE’S STATEMENT

CONTINUED

Looking ahead, over the medium to longer

term, we see a number of macro trends

that we expect to shape the environment

we operate in:

→

growing geopolitical risk and climate

change mean inflationary pressures will

likely persist, which stresses the importance

of driving sustainable like-for-like income

growth

→

the normalisation of interest rates means

the cost of capital is likely to remain

elevated, putting more emphasis on

risk-adjusted returns, the time value

ofmoney and efficiency

→

technological change means customer

expectations will continue to evolve rapidly,

impacting depreciation in sectors with

fewer long-term supply constraints

→

continued population growth will mean

the existing shortage of urban housing

isset to grow

The Strategy Update we set out in February

this year is built around these structural

trends. In executing this strategy, our primary

focus will be on delivering sustainable income

and EPS growth. As a framework for capital

allocation decisions, this means we will

prioritise opportunities that deliver income

and EPS growth in the near term but also

position our portfolio mix such that EPS

growth can be sustained in the medium

tolonger term. Beyond that, there will be

abalance between these two factors –

near-term EPS growth and impact on our

desired portfolio mix – but our decisions

willalways seek to enhance at least one

ofthese, without distracting from the other.

This explains why major retail still remains

ourhighest conviction call and why we seek

to grow our retail platform by a further £1bn

over the next 1-3 years. Risk-adjusted returns

on acquisitions are compelling, with highly

attractive 7-8% day-one income yields; rents

having returned to growth from rebased

levels; and zero supply of new space in the

foreseeable future, as capital values are

around half of replacement costs, meaning

that competition for the best space is

expected to persist and rents continue

to grow.

This framework also explains our plan to

reduce capital employed in office-led assets

by £2bn to fund the build-up of a £2bn+

residential-led platform over the next

2-5 years. We are very confident in the

near-term income growth prospects of our

high-quality London office assets, as the

focus from customers on best-in-class space

and modest new supply in recent years has

created 12% positive reversionary potential.

Yet, longer term there are fewer supply

constraints, and demand and hence rents

are likely to be more cyclical. The growth

in demand for homes, however, is more

structural, as it is underpinned by long-term

demographic trends. This means residential

income and values have been much less

volatile historically and we expect this to

remain the case going forward.

Whilst investing in residential offers limited

near-term EPS upside, income growth closely

tracks inflation over time and is captured

annually, so real returns are attractive.

Netyields of c. 4.5-5% are similar to net

effective income returns on offices after lease

incentives, so rotating capital out of offices

into residential should be broadly EPS neutral

initially, but offers higher EPS growth and

lower risk over time. The scale-up of our

residential platform is supported by the

6,000-homes development pipeline we have

established over the past few years across

three large-scale, well-located and highly

connected sites in London and Manchester,

which combined with selective acquisitions

will take us to our £2bn+ target by 2030.

The other implications of our recent strategy

update are also clearly explained by our

thinking on capital allocation. We plan to

release half of our £0.7bn capital employed

inlow/non-yielding pre-development assets

over the next 1-3 years to reduce the holding

cost of this, which should improve earnings

byc. £15m per annum and overall ROE by

c. 25-50bps. We also plan to exit our residual

£0.8bn of retail/leisure parks, as day-one

yields are reasonable but like-for-like income

growth trails the growth in major retail

destinations. In addition, we will scale back

our office-led development by at least half,

togrow our residential development. All of

these decisions either enhance our near-term

EPS growth, help rebalance our portfolio

towards higher longer-term EPS growth,

orcontribute to both.

IMPLICATIONS FOR EPS GROWTH AND

DRIVING SHAREHOLDER VALUE

As most of our near-term income and EPS

growth will be driven by our current assets,

we are confident in how we have positioned

our portfolio and platform in recent years.

Our strong 5.0% growth in like-for-like

income over the past 12 months is testament

to this. In addition to continuing to capture

the growing reversion in our existing portfolio

and further reducing overhead costs over

thenext two years, all else equal, the above

capital allocation decisions would therefore

drive c. 30% EPS growth by FY30. Against

that, we have to absorb the impact of

interest costs going up as we refinance

maturing debt plus the expiry of the income

at Queen Anne’s Mansions, which have a

combined negative EPS impact of c. 5 pence,

spread over a number of years.

Overall, we therefore see the potential for

EPS to grow c. 20% from 50.3 pence over the

past year to c. 60 pence by FY30, which adds

further to our attractive existing income

return at NTA of 5.8%. Over this period

growth should be relatively linear although

the exact year-on-year profile will be

influenced by factors such as the timing

of development lettings, with for example

£61m of ERV completing at our two highly

sustainable, on-site developments in Victoria

and the Southbank in about a year’s time.

We are seeing encouraging customer interest

in this space emerge and although it will

take time to lease-up as these are multi-let

buildings, they should add £7m to earnings

once fully let. We will not start any new

speculative office-led projects until the

expected income on these projects is

substantially de-risked.

Over time, our compound growth in EPS

should drive continued growth in dividends,

whilst rebalancing our portfolio towards

higher long-term income growth and lower

cyclicality will create a more valuable income

profile. In support of this, we will retain our

strong capital base, as we continue to target

a net debt/EBITDA of below 8x and an LTV

around the mid 30s at this stage of the cycle.

This will be further enhanced by a reduction

in risk profile and cyclicality, as we reallocate

capital from offices to residential. As we

execute our strategy, Landsec is well-placed

to deliver significant shareholder value.

LANDSEC ANNUAL REPORT 2025 05

OUTLOOK

The outlook for our best-in-class portfolio

andpipeline remains firmly positive.

In major retail, the top 1% of all shopping

destinations in the UK provide brands with

access to 30% of all in-store retail spend.

Asclose to 90% of our retail assets are in this

top 1%, brands continue to invest in space

with us, focusing on ‘fewer, bigger, better’

stores in the best locations. Any pressure on

brands’ margins from increased NI costs or

wider economic uncertainty will likely sharpen

this focus further and put more pressure on

the tail-end of brands’ store portfolios. As our

occupancy is now higher than it was before

Covid, we expect rental value growth this

year to be around similar levels as last year.

In London, office utilisation across our

portfolio continues to grow and customers

are now planning for c. 25% more space per

person than five years ago, with c. 80% of

ourlettings over the past year having seen

customers grow or keep the same space.

Inthe near future, new supply across London

is modest, so we expect our rental values this

year to continue to grow at a broadly similar

rate as they did last year. This also bodes

wellfor our two committed developments,

Thirty High and Timber Square, where we

expect to see first pre-let activity in the

second half of this year, in line with our

underwrite assumptions.

Meanwhile, in residential, we have created a

£3bn development opportunity to build scale

in a sector with strong structural growth

characteristics, attractive real returns and

much lower volatility. The attractive long-

term prospects in this space should enhance

our sustainable income and EPS growth

over time.

The trends that have supported our strong

operational performance over the past

fewyears remain intact, even though the

global economic outlook has become more

uncertain in recent months as a result of

shifting US trade policy. We are mindful

ofthe disruption this can cause but, as a

purely UK focused business with an existing

customer base that is primarily focused

onsuccessful omnichannel retail brands,

professional services and financial services

and a development pipeline which is

increasingly focused on residential, we are

not seeing any impact on customer demand

or financial performance.

In investment markets, we continue to see

a steady pick-up in activity across the UK

andincreasingly in London offices, albeit

from a low base. The outlook for long-term

interest rates is more relevant than the

outlook for base rates, but for assets where

there is an opportunity to drive income

growth in the coming years, such as our

best-in-class portfolio, there appears to be

agrowing understanding amongst investors

that real returns look attractive relative to

real interest rates. Absent any major economic

shocks, we expect this will continue to

underpin valuations for such assets as

investment activity recovers further.

In summary, we are well-placed due to the

successful execution of our 2020 strategy,

with clear upside as we deliver the next phase

of our strategy. Our portfolio is 97.2% full,

soERVs are growing. Our office rents are 12%

reversionary and rental uplifts on relettings/

renewals in retail have risen to 10%. We are

ontrack to reduce overhead cost by a further

10% over the next two years, with additional

upside to EPS to come from recycling £3bn of

capital out of offices and non-core assets into

major retail and residential.

All this means we see the potential to deliver

c. 20% growth in EPS by FY30 and with

c. 2-4%growth in EPS expected for FY26,

supported by c. 3-4% growth in like-for-like

net rental income, we are well on track.

Weexpect thisto support continued growth

in dividends and to drive an attractive return

on equity over time, built on an existing

income return at NTA of 5.8% plus future

income growth. Aswe move to higher income,

higher income growth and lower cyclicality

inreturns, the delivery of our strategy is

settodrive significant shareholder value.

Owning the right real estate has never been

more important.

MARK ALLAN,

CHIEF EXECUTIVE

LANDSEC ANNUAL REPORT 202506

STRATEGIC REPORT

MARKET CONTEXT

The Landsec property portfolio focuses on

areaswhere we have a sustainable or attainable

competitive advantage. Our high-quality,

urbanreal estate portfolio has the potential for

material income growth and is focused on the

office, retail and residential segments of the UK

commercial property market.

OFFICE-LED REAL ESTATE

The Central London office market continues

to adapt as many businesses are looking to

increase the proportion of the working week

spent in the office. As a result, demand for

office space with the best sustainability

credentials, local amenities and transport

connectivity has continued to grow. Take-up

of Grade A office space at 9.0msqft remains

ahead of the long-run average of 8.7msqft.

This demand for the best space contrasts

with overall take-up which has fallen over

thelast 12 months.

The high demand for Grade A space is reflected

in rental levels, which have continued their

recent strong growth and saw a 5.5% increase

over the last year. Recent evidence in Victoria,

where roughly half of our office portfolio is

located, shows rents have moved on 15%

fromthe record rent we set with our n2

development just 18 months ago. Our portfolio

is well-positioned to benefit from this strong

occupational market.

In contrast to the strong occupational market,

office investment volumes have been subdued

in the last two years. Despite recent global

economic volatility, we expect activity to start

to pick up in 2025 as concerns around working

from home have eased and confidence in

income has grown, and yields for good quality

assets look attractive in an historical context.

Encouragingly, investment volumes in Q125

totalled £2.4bn, a 49% increase on the

previous quarter.

RETAIL-LED REAL ESTATE

In retail, the polarisation between the best

destinations and the rest of the market

continues. The top 1% of all shopping

destinations in the UK provide brands with

access to 30% of all retail spend, which is

more than the bottom 90% of destinations

combined. It is therefore no surprise that

thistop 1% is where demand from brands is

focused, with many leading retailers choosing

to locate the vast majority of their stores in

these places. As 86% of our retail portfolio

sits in this top 1%, it is clear that we are

focused where demand is strongest.

This polarisation can be seen clearly in

occupancy levels. Overall, across all shopping

centres in the UK, occupancy remains

relatively low at 85% as many locations

simply do not provide the location, catchment

and facilities to attract high demand for

space from retailers. In contrast, our portfolio

of dominant, high-quality centres has

near-record occupancy of 97%. The demand

for our high-quality space has resulted in us

delivering rental income growth through the

rent review process and growth in turnover

income as retailer sales in our centres grew

by3.4% in the last year.

RESIDENTIAL-LED REAL ESTATE

The UK has a structural need for new homes,

as the UK population is expected to grow by

6 million people by 2035. The housing market

has a clear demand-supply imbalance as

completions have averaged just 185,000

perannum over the last ten years versus

awidely acknowledged housing target of

300,000 per annum. And with a more than

20% decline in planning approvals over the

last three years, supply will be even more

constrained in the near future.

One of the attractions of the residential

market is that, over time, average residential

rents are closely correlated with inflation via

wage growth − much more so than average

commercial rents. Also, following the rise in

mortgage rates, it is on average now cheaper

to rent than buy a house in terms of overall

cost. The opportunities within our portfolio

are well-placed to capitalise on these trends.

The outlook for the private rented market

looks particularly attractive as demand

isgrowing given the flexibility and value

proposition on offer. This is particularly the

case for Gen Z consumers (aged 13-28) who,

given the choice, are more than twice as

likelyto prefer to rent as previous generations.

This is important as the Gen Z generation will

become the main target customers for build

to rent over the next five to ten years.

LANDSEC ANNUAL REPORT 2025 07

OUR BUSINESS MODEL

Our purpose is to shape places that stand the test of time in order to create value

forall our stakeholders. Our primary financial objective is to deliver sustainable

income and EPS growth, with return on equity being the output of this, rather

than a standalone target.

OUR PURPOSE | SHAPING PLACES THAT STAND THE TEST OF TIME

TWO PRINCIPLES OF SUSTAINABLE VALUE CREATION

MAINTAIN A STRONG

FINANCIAL POSITION

FOCUS RESOURCES

WHERE WE HAVE A SUSTAINABLE OR

ATTAINABLE COMPETITIVE ADVANTAGE

PORTFOLIO OF HIGH-QUALITY OFFICE-LED, RETAIL-LED AND RESIDENTIAL-LED

URBAN PLACES WITH STRONG GROWTH PROSPECTS

Strong customer

relationships

Leveraging our skills

and knowledge

Appropriate

leverage

Healthy

liquidity

Managing

development risk

Allocation of capital based on clear view of risk-adjusted returns

FOCUSED ASSET

RECYCLING

DRIVING LONG-TERM VALUE CREATION THROUGH DELIVERING SUSTAINABLE INCOME/EPS GROWTH

DELIVERING FOR OUR

CUSTOMERS & PARTNERS

LANDSEC ANNUAL REPORT 202508

STRATEGIC REPORT

OUR STRATEGY

We believe there are two principles of

sustainable value creation: focusing our

resources where we have a true competitive

advantage; and maintaining a strong

financial position.

Property is not a highly liquid asset class

andwe, like all REITs, have to manage our

business knowing there is a limit to how

muchwe can buy or sell in any given year.

Wetherefore have to approach how we

deliver EPS growth in the near to medium

term differently from EPS growth in the

medium to long term.

EPS growth in the near to medium term is

primarily driven by the assets we own today:

capital allocation decisions that have already

been taken. Owning the right real estate

hasnever been more important, and we

havepositioned our portfolio well. Through

acombination of targeted investments and

£3.4bn of disposals since our Strategy Review

in late 2020, we have established a high-

quality portfolio and pipeline of best-in-class

office-led, retail-led and residential-led places

with substantial income growth potential.

Weexpect our recent track record of delivering

strong like-for-like rental income growth to

continue and this, together with further

reductions in our cost base, means our

earnings outlook is positive.

EPS growth in the medium to longer term

isprimarily about portfolio mix, which takes

time to shift: capital allocation decisions

taken today. Having assessed the best

risk-adjusted return opportunities for our

business and our shareholders, the next

phase of our strategy will see us move

towards higher income, higher income

growth and lower cyclicality. Building on

themomentum created over recent years,

wewill further rebalance our portfolio mix,

with more investment in growing our market-

leading retail platform; the establishment of

a sizeable residential platform, building on

the £3bn development opportunity we have

created; and, to fund this, a smaller share

ofcapital employed in offices.

We believe that, in the long term, income

growth is the main driver of value growth

inboth equity markets and real estate, so

ourprimary focus is on delivering sustainable

income and EPS growth as this will result in

an attractive return on equity over time.

BEST-IN-CLASS OFFICE-LED PORTFOLIO LEADING UK RETAIL-LED PLATFORM £3BN+ RESIDENTIAL-LED PIPELINE

PORTFOLIO FOCUSED ON AREAS OF STRONG CUSTOMER DEMAND

LUCENT

GUNWHARF QUAYS

PORTSMOUTH

MAYFIELD

MANCHESTER

LANDSEC ANNUAL REPORT 2025 09

Our approach to capital allocation is clear:

weprioritise investments that can support

both near-term earnings growth targets

andlong-term portfolio mix objectives.

Beyondthose it is a balance between the

twoobjectives but our decisions will always

support one of these two objectives without

detracting from the other.

MAJOR RETAIL

Major retail remains our highest conviction

call because it supports earnings growth both

near term and longer term. Growth is driven

near term by reversion off rebased rents;

longer term by the fact that no new shopping

centres are being built, retailers are focusing

on fewer, bigger, better stores, and people

areincreasingly looking for compelling

experiences that drive repeat visits. We are

clear that we want to invest a further £1bn

into this segment over the next 1-3 years:

nearterm EPS positive; long term EPS positive.

LONDON OFFICE

We are comfortable being invested in high-

quality offi ces for now as the fl ight to prime

will support earnings growth in the short to

medium term. Longer term, it is more diffi cult

to judge earnings growth potential because

of the challenges in forecasting the volume

ofnew supply and the historic cyclicality

indemand.

RESIDENTIAL

Living sectors, we believe, have the strongest

structural support for long-term growth.

Whilst investing in residential off ers limited

near-term EPS upside, income growth closely

tracks infl ation over time and is captured

annually, so real returns are attractive.

Netyields of c. 4.5-5% are similar to net

eff ective income returns on offi ces after lease

incentives, so rotating capital out of offi ces

into residential should be broadly EPS neutral

initially but off ers higher EPS growth and

lower risk over time.

Hence our plan is to invest £2bn into the

residential sector, funded by a commensurate

reduction in capital employed in offi ces over

the next 2-5 years.

This rebalancing of the portfolio should

notonly enhance our longer-term growth

prospects, but also reduce the cyclicality

inour returns, given the higher volatility

inoffi ces than residential. At the same time,

through a combination of capturing like-

for-like income growth, costs savings and

aclear focus on capital allocation, we have

the potential to deliver compound growth in

EPStotalling c. 20% over the next fi ve years,

supporting continued growth in dividends.

To establish a £2bn+ residential business,

weneed more than just the right assets

andprojects; we need the right people and

platform. This is why we have been working

hard in recent years on transforming our

operating platform, for example, by boosting

our skills in areas such as residential and

creative placemaking, which will enhance

thevalue of our places; strengthening our

customer orientation, which with leadership

sourced from our customers’ industries,

provides greater insight into how to best

service their needs, anticipate future trends

and continue to enhance our income growth;

and investing in data and technology.

In addition to rebalancing the portfolio,

wewill continue our focus on maintaining

astrong capital base, targeting net debt/

EBITDA of less than 8 times, and an LTV

around the mid 30s at this stage of the cycle.

This will be strengthened further by a

reduction in risk profi le and cyclicality over

time, refl ecting the reallocation of capital

from offi ces to residential, where the volatility

in returns is lower.

OUR KEY AREAS AND CAPITAL ALLOCATION DECISIONS TO DRIVE INCOME/EPS GROWTH

Output 5.8% existing income return at NTA + c. 20% growth = attractive, less cyclical return on equity

Strong capital base Net Debt/EBITDA below 8x and LTV around mid 30s

TWO STRANDS

TO DRIVE EPS

GROWTH

March 25 March 26 March 27 March 28 March 29 March 30

➊ Capturing reversion and reducing overhead cost

by a further £8m+ through effi ciency savings

➋ Releasing half of c. £0.7bn capital employed in

low/non-yielding pre-development assets

and exiting residual £0.8bn of non-core assets

➌ Investing up to £1bn into our retail platform

➊ Deliver low to mid single digit LFL net rental income growth p.a.

➋ Establish a £2bn+ residential platform via pipeline and acquisitions

➌ Scale back offi ce-led development by at least half to grow

residential-led development

➍ Release £2bn of capital employed from offi ces to fund

residential investment

LANDSEC ANNUAL REPORT 202510

STRATEGIC REPORT

OUR KPIs

Our KPIs are aligned to our strategy

andouraim to deliver long-term value

creation. They provide direction for our

people, and offer clear links to remuneration.

TOTAL RETURN ON EQUITY

How we measured it

Three-year growth in EPRA NTA per share adjusted for dividend payments

TOTAL SHAREHOLDER RETURN

How we measured it

Three-year TSR performance relative to selected constituents of the EPRA 350 Real Estate Index

EPRA EARNINGS LFL NET RENTAL INCOME STRATEGIC OBJECTIVES

How we measured it

The target is set in line with our

five-year plan and annual budget

Link to remuneration

35% of annual bonus

35%

Performance in 2024/25

EPRA earnings of £374m were

ahead of the £350m target

How we measured it

The target is set in line with our

five-year plan and annual budget

Link to remuneration

35% of annual bonus

35%

Performance in 2024/25

LFL net rental income growth

of 4.3% was ahead of the

2.4% target

How we measured it

Six individual objectives including

two environmental targets

Link to remuneration

30% of annual bonus

30%

25% of LTIP for 2024-27

25%

Performance in 2024/25

All objectives met target level

orabove

ACHIEVED

NOT ACHIEVED

ACHIEVED

ACHIEVEDACHIEVED

Performance 1 April 2022 – 31 March 2025

Total return on equity was below

thethreshold 6% p.a.

Performance 1 April 2022 – 31 March 2025

Landsec ranked first out of 19companies

Link to remuneration

35% of LTIP for 2024-27

35%

Link to remuneration

40% of LTIP for 2024-27

40%

1. Based on the pool of assets considered like-for-like at the time of writing targets at the start of the financial year.

LANDSEC ANNUAL REPORT 2025 11

OPERATING AND PORTFOLIO REVIEW

We have created a high-quality, urban real estate portfolio

which produces £657m of annualised rental income and offers

potential for material income growth. This portfolio was valued

at £10.9bn as of March and comprised the following segments:

62%

CENTRAL LONDON

Our well-connected, high-quality

office (85%) and retail and other

commercial space (15%), principally

focused on multi-let assets in a

small number of key areas in the

West End (68%), City (24%) and

Southwark (8%).

24%

MAJOR RETAIL DESTINATIONS

Our investments in seven shopping

centres and three retail outlets,

c. 90% of which sit in the top 30

highest selling retail destinations

inthe UK.

MIXED-USE URBAN

NEIGHBOURHOODS

Our investments in mixed-use

urban places in London and a small

number of other major UK cities,

with future repositioning or

residential development potential.

SUBSCALE

Assets in sectors where we have

limited scale or competitive

advantage and which we therefore

plan to divest over time, split

broadly equally between retail and

leisure parks.

From FY26 onwards, we will align our

financialreporting to our updated strategy

and operating model, with a split between

office-led (61%), retail-led (29%) and

residential-led (2%) places plus an

elementofresidual non-core assets (8%).

Areconciliation will be provided separately,

but this report is based on the segmentation

of how our portfolio was managed over the

past financial year.

DRIVING SUSTAINABLE INCOME GROWTH

Our main focus is delivering sustainable

income and EPS growth. In the long run,

valuation yields of real estate assets and

P/Emultiples in equity markets are both

broadly stable, which means that delivering

sustainable income and EPS growth, over

time, will result in an attractive return on

equityfor shareholders.

Given the time it takes to develop and

acquireor sell a meaningful share of an £11bn

property portfolio, in the next few years the

majority of our income growth will be driven

by our existing portfolio, where the outlook is

positive. Our capital allocation decisions from

here are about ensuring our income growth

prospects in 3-5 years are as attractive as

they are for our current portfolio today.

The strength of this has again been proven

over the past 12 months. Like-for-like net

rental income was up 5.0%, with strong

growth in both London and retail. Occupancy

increased 100bps on a like-for-like basis to a

high 97.2% and we secured rental uplifts of

8% on relettings/renewal across the two main

parts of our portfolio. Overall ERVs were up

4.2%, underpinning future income growth,

and on a like-for-like basis, our gross to net

margin was up 1.7ppt due to a reduction in

service charge expense and operating costs

as a result of our focus on efficiencies.

LIKE-FOR-LIKE INCOME GROWTH

TABLE 2

Net rental

income

£m

LFL net

rental

income

growth

LFL

occupancy

change

ppt

Gross to net

margin

LFL change

in GtN

margin

ppt

Central London 275 6.6 1.2 92.0 0.7

Major retail 166 5.1 1.1 83.4 1.7

Mixed-use urban 43 2.8 0.9 79.6 4.4

Subscale sectors 68 0.0 0.4 94.4 2.2

Total Combined Portfolio 552 5.0 1.0 88.5 1.7

CENTRAL LONDON

Customer demand for office space with

thebest sustainability credentials, local

amenities and transport connectivity

continues to grow and given that such space

is in limited supply, rents continue to rise.

The appeal of our offer is reflected in the

factthat we continue to see growth in daily

turnstile tap-ins in our buildings. The rate of

growth will naturally plateau as customers’

space nears full capacity, yet the last three

months saw average daily tap-ins up 11% vs

the prior year. Our customers are now

planning for c. 25% more space per person

than they did five years ago, so c. 80% of our

lettings over the last 12 months have seen

customers grow or keep the same space.

Reflecting this, like-for-like occupancy

increased 120bps to 98.0%, significantly

outperforming the London market as a whole

at 91.9%. We completed 42 lettings and

renewals during the year, totalling £21m of

rent, on average 5% ahead of ERV, with a

further £3m of lettings in solicitors’ hands,

22% above ERV. Uplifts on relettings/renewals

were 10%, supporting 6.6% like-for-like rental

LANDSEC ANNUAL REPORT 202512

STRATEGIC REPORT

OPERATING AND PORTFOLIO REVIEW

CONTINUED

income growth, reflecting strong leasing

results across a wide range of assets and

further income growth at Piccadilly Lights.

ERVs were up 5.2%, so as our reversionary

potential is now 12%, we expect continued

growth in rental income.

Our two established Myo flex office locations

in Victoria and Liverpool Street saw occupancy

reduce from 90% to 79% in the first half due

to a small number of larger lease expiries,

butin line with the view we set out at the

halfyear, occupancy has recovered to 90%

since then. The lease-up of the four new Myo

locations we opened a year ago has taken

slightly longer than expected, but these are

now 61% let or under offer, with a further

21%in negotiations and rents on average

2%ahead of our underwrites.

MAJOR RETAIL DESTINATIONS

The top 1% of all UK shopping destinations

provide brands with access to c.30% of

thecountry’s in-store, non-food retail

spend,offering higher sales densities and

productivity than other formats. Around

90%of our retail assets sit in this top 1%,

which means our destinations continue to

materially outperform, with total sales up

3.4% and footfall up 0.4%, well ahead of BRC

Benchmarks (-1.7% and -0.7% respectively).

As a result, we continue to see strong

demand for our space, as brands focus on

‘fewer, bigger, better’ stores. Examples of

thisover the past year are deals with Next

totriple the size of their existing store in

Bluewater to 133,000sqft and Primark to

double their store in White Rose from 37,000

to 71,000sqft; new openings of e.g. Bershka,

Pull&Bear and Sephora at Bluewater; and

with JD Sports, who are moving into a major

new store in St David’s from elsewhere in

Cardiff city centre.

Over the past year, 17 brands increased their

space with us, 30 new brands opened in our

centres and 45 existing brands opened stores

in new locations within our portfolio. This

meant like-for-like occupancy increased

110bps to 96.6%, so occupancy is now higher

than it was before the pandemic. We signed

201 leases totalling £26m of rent on average

8% above ERV, driving 4.0% ERV growth for

the year. Relettings and renewals for the

yearwere 7% above previous passing rent,

upfrom 3% at the half year and 1% over the

prior year. This has risen further to 10% for

deals in solicitors’ hands, underlining the

growing reversionary potential in our

portfolio. As a result, like-for-like net rental

income increased 5.1%.

At the same time, on a like-for-like basis

ourleasing pipeline is up meaningfully vs

thistime last year, with £12m of lettings in

solicitors’ hands on average 20% ahead of

ERV, and as our existing assets are nearly full

and new supply is non-existent, we expect

this to drive continued growth in rental

income over time.

MIXED-USE

After taking full control of MediaCity in

October, we have already started to deliver a

turnaround in performance with a number of

office lettings and new F&B lettings, resulting

in a 110bps increase in occupancy to 93.5%.

We recently appointed a CEO for MediaCity

who joins from a senior media background,

and who will oversee the entire operations

ofthe estate including the studios business.

This will allow us to further build on the

growing momentum and capitalise on the

upside potential our new control offers us.

In other mixed-use, our previous approach

toBuchanan Galleries in Glasgow and our

centres at Finchley Road and Lewisham

inLondon was to manage each towards

afullvacant possession date to maximise

development flexibility. This naturally

impacted income as leases were shortening,

which in turn weighed on values. We changed

this approach last year in response to the

higher interest rate environment to focus

more on retaining and improving the existing

income, which for Finchley Road and

Lewisham will augment the major residential

opportunity at both sites. At Buchanan, we

will build on this by focusing on upgrading

theexisting retail space. This new asset

management approach should see income

grow over time, which was up 2.8% for

theyear.

SUBSCALE

Across our portfolio of retail and leisure

parks,occupancy increased 40bps to 97.4%.

We completed or are in solicitors’ hands on

£9m of lettings, on average 2% below ERV.

During the first half of the year, Cineworld

announced a restructuring plan which

resulted in a rent reduction in five of their

13cinemas in our portfolio. We took the

opportunity to re-let two of these to other

operators at higher rents so the combined

impact on rental income was minimal.

Overall, like-for-like income on our retail

andleisure parks was flat, which was well

short of the 5.1% increase at our major

retaildestinations.

OPERATIONAL PERFORMANCE

TABLE 3

Annualised

rental

income

£m

Net

estimated

rental value

£m

EPRA

occupancy

LFL

occupancy

change

ppt

WAULT

Years

West End offices 164 202 9 9.1 (0.6) 6.0

City offices 85 111 96.2 4.4 8.1

Retail and other 58 54 9 7. 3 0.4 5.7

Developments – 85 n/a n/a n/a

Total Central London 307 452 98.0 1.2 6.5

Shopping centres 186 188 96.4 1.0 4.1

Outlets 48 52 9 7.4 1.4 2.8

Total Major retail 234 240 96.6 1.1 3.8

London 10 14 88.1 (2.1) 6.7

Major regional cities 37 49 95.2 2.1 5.3

Total Mixed-use urban 47 63 93.5 0.9 5.6

Leisure 44 41 98.2 1.2 10.0

Retail parks 25 27 96.4 (0.8) 5.5

Total Subscale sectors 69 68 9 7. 4 0.4 8.2

Total Combined Portfolio 657 823 97. 2 1.0 5.8

1. Excluding developments.

LANDSEC ANNUAL REPORT 2025 13

ACQUISITIONS

We made £720m of acquisitions during the

year, in line with our strategy to grow our

major retail platform and future residential

optionality. The majority of this was our

acquisition of a 92% stake in Liverpool ONE

for £490m, which is one of the top retail

destinations in the UK. £35m of the

consideration is deferred for two years at

zerointerest charge and with a day-one net

income return of 7.5% and rents which are

reversionary and poised to grow, we expect

overall returns to be in the double digits.

Weinvested £120m in buying a further 17.5%

stake in Bluewater at an income yield of

8.5%and £19m in two smaller assets adjacent

to our existing retail assets in Cardiff and

Glasgow, bringing total retail acquisitions

to£629m.

Other acquisitions totalled £91m. This

principally reflected the acquisition of the

remaining 25% interest in MediaCity from

Peel, plus the 218-bed hotel and studio

operations at the estate which were wholly

owned by Peel. The cash consideration

was£23m and we assumed £61m of debt,

providing an overall consideration of £84m.

This represented a discount to the book value

of our existing stake, reflecting the value of

future income from wrapper leases to Peel

weagreed to surrender. Adjusted for this,

thedeal was broadly in line with book value

and EPS neutral in the short term, but

itenhances medium- to longer-term EPS

growth, as it provides us with full control to

implement our asset management plans for

the existing estate, whilst the Phase 2 land

has a planning allocation to develop 2,700

homes. We also acquired £7m of assets

adjacent to our future residential schemes

inManchester and London.

DISPOSALS

We sold £496m of assets during the year

which did not fit our strategic objectives and

longer-term growth aspirations. On average,

these disposals reflected an effective net

income yield of 7.5% and were 1% below their

March 2024 book value. The largest disposal

was our £400m hotel portfolio, which had

seen a strong recovery in performance post

Covid, yet as the income was 100% turnover-

linked on long-term leases to the operator of

the hotels, there was little opportunity for us

to influence or enhance its future operational

performance. In addition, c. 70% of the hotels

were more than 25 years old and the portfolio

was therefore expected to require significant

capex in the near future. The disposal

included a deferred payment of £50m for up

to two years, for which we receive an annual

6% coupon.

We also sold a retail park in Taplow for £46m

and a number of smaller non-core assets for

a combined £50m. Since the year-end, we

have sold two further retail parks for £143m,

reflecting an average net rental income yield

of 6.4%, in line with book value. We expect to

progress further disposals in the near future,

as we continue to recycle capital out of

subscale sectors and aim to monetise part

ofour capital employed in low-yielding

pre-development assets. Over the next

2-5 years, we aim to further rebalance our

portfolio

mixby monetising c. £2bn of capital

employed

in offices.

DEVELOPMENT AND INVESTMENTS

INEXISTING ASSETS

During the year, we invested £486m in capex,

including £202m for our two on-site office

projects in Victoria and Southwark and £85m

in pre-development assets. As we plan to

reduce our capital employed in pre-

development assets by half over the next

three years, the latter is set to reduce over

time. We invested £199m in our existing

portfolio, including £45m in the refurbishment

of 5 New Street Square where we agreed a

new 17-year lease with Taylor Wessing in 2023;

£28m in repositioning traditional office

space to Myo flex space, which delivers a

material uplift in income; £22m in our net

zero investment programme; and £14m in

public realm improvements. The remainder

principally relates to leasing activity and

accretive investment in retail capex.

CURRENT PROJECTS

Our two committed office developments

areexpected to complete over the next

12months and we are starting to see good

customer interest emerge. We expect this

willtranslate into progress on pre-lets in the

second half of the year for both schemes,

ashigh-quality, sustainable office space in

locations with good transport connectivity

and attractive amenities remains in scarce

supply. However, as both schemes are

designed to be multi-let, the majority

oflease-up is expected to occur post

completion. At Thirty High in particular,

thisenables us to capture a premium for

theunique views this 30-storey West End

tower offers and with £61m of ERV, these two

projects are expected to add £7m to earnings

once fully let based on current interest costs.

The completion of Thirty High has moved out

a few months, but costs remain in line with

expectations. At Timber Square, building on

the success at our n2 scheme in Victoria, we

have added clubrooms to the original design

which will be accessible to all customers.

Thiswill drive additional rent, yet combined

with some design refinements and a sub-

contractor insolvency, we reported at the half

year that overall costs had gone up £31m and

the expected gross yield on cost had reduced

slightly from 7.1% to 7.0%. There have been

nofurther changes to costs in the second half.

COMMITTED PIPELINE

TABLE 4

Project Sector

Size

sq ft

’000

Estimated

completion

date

Net income/

ERV

£m

Market

value

£m

Costs to

complete

£m

TDC

£m

Gross yield

on TDC

Thirty High, SW1 Office 299 Q4 FY26 30 352 102 418 7. 2 %

Timber Square, SE1 Office 383 Q4 FY26 31 292 152 442 7.0 %

Total 682 61 644 254 860 7.1%

POTENTIAL FUTURE PIPELINE

As part of our aim to invest a further £1bn

into major retail destinations over the next

1-3 years, we plan to progress a number

ofaccretive investments in our existing

majorretail assets, such as the creation

ofanew F&B destination at Trinity, Leeds;

thesignificant upsizes of Primark and

NextatWhite Rose and Bluewater; the

repositioning of Buchanan Galleries in

Glasgow; and a new waterfront F&B offer

atGunwharf Quays. Total capex could be

c. £200m, spread over multiple smaller

projects, with double-digit IRRs and a

blended yield on cost of around 10%.

In terms of larger development projects, our

success in terms of planning over the past

two years means we now have more options

to start new projects across Central London

offices or our major residential schemes in the

next 12-24 months than we have the balance

sheet capacity or risk appetite to

accommodate. In addition, we have a

number of other development opportunities

outside of our core focus areas.

LANDSEC ANNUAL REPORT 202514

STRATEGIC REPORT

OPERATING AND PORTFOLIO REVIEW

CONTINUED

PRE-DEVELOPMENT ASSETS

TABLE 5

Project

Current capital

employed

£m

Proposed

sqft

’000

Indicative

TDC

Indicative

ERV

£m

Gross yield

onTDC

Potential

start date Planning status

Office-led

Red Lion Court, SE1 250 2026 Consented

Old Broad Street, EC2 290 2026 Consented

Liberty of Southwark, SE1 220 2026 Consented

Hill House, EC4 390 2026 Consented

Southwark Bridge Road, SE1 140 2026 Consented

Nova Place, SW1 60 2027 Design

Timber Square Phase 2, SE1 380 2027 Design

Total c. 370 1,730 2.4 170 7. 1

Residential-led

Mayfield, Manchester 1,800 0.9 2026 Consented

Finchley Road, NW3 1,400 1.2 2026 Consented

Lewisham, SE13 1,900 1.5 2027 Planning application

MediaCity Phase 2, Salford n/m n/m n/m Design

Total c. 260 5,100 3.6 200-260 6-7

Other opportunities c. 100 n/m Various

1. Indicative figures given multi-phased nature of schemes; subject to change depending on final scope, planning and design.

Our total capital employed in these pre-

development assets is c. £730m yet the

current net income yield on this is minimal

atc. 1%. As there is a clear holding cost in

maintaining this optionality for a prolonged

period, we plan to monetise around half of

our capital employed over the next 1-3 years,

principally from office-led and other projects.

This will add c. £15m to earnings through

reduced interest costs and improve our overall

ROE by c. 25-50bps, taking into account lower

capitalised pre-development costs.

Post the completion of our two existing

officeschemes, we will reduce our office-led

development activity by at least half compared

to the average c. £1bn committed TDC we

have had over the last five years. From 2026,

we plan to shift development activity to

residential, where we now have an attractive

pipeline of more than 6,000 homes across

three schemes in Manchester and London,

which could deliver over £200m of annualised

net rental income in the next decade.

The first of our main residential projects is

Finchley Road, in zone two London, where

wehave outline consent for 1,800 homes and

detailed planning consent for the first 600

homes. We expect a decision on a variation

tothe detailed consent in the second half of

2025. We have secured vacant possession and

completed the demolition and enabling works

for the first phase, which means we could

start on site in late 2026. We expect a gross

yield on cost of close to 6.5%, which

translates into a net yield after property

operating expenses of c. 4.8-5.0%, resulting

ina c. 10-12% unlevered IRR.

At our residential-led scheme at Mayfield,

adjacent to Manchester’s main train station,

we agreed with our JV partners to optimise

the development strategy for this 24-acre

siteduring the year. The site benefits from

effective outline consent in the form of a

strategic regeneration framework and we

have submitted a detailed planning

application for the first 879 homes, which we

expect a decision on in the second half of this

year. We are working towards the potential

start of a c. £150m office block as part of the

first phase of development. Office demand in

Manchester remains strong, with prime rents

up 13% over the past two years. Whilst we

would not pursue office development in

isolation, the returns on this look acceptable

and, importantly, delivering this would unlock

the opportunity to invest c. £1bn in delivering

c. 1,700 homes across multiple phases. The

first residential phase could start in late 2026

with a gross yield on cost of c. 6.5-7.0% and

net yield after direct property costs of

c. 5.0-5.5% is expected to deliver an unlevered

IRR of c. 11-13%.

At Lewisham, south-east London, we

submitted a planning application for our

newmasterplan, which has the potential to

deliver up to 1,700 homes with a further 445

co-living homes and 660 student beds over

the next decade across multiple phases. The

plans have been developed after substantial

consultation with local stakeholders, as a

result of which our plans received ten times

more letters of support than objections.

Weexpect a decision on our application in

thesecond half of this year. Given that we

have vacant possession flexibility for the first

phase, this could allow for a start on site

in2027. We expect a gross yield on cost of

around 6.5%, which translates into a net

yieldafter direct property costs of c. 4.9-5.1%,

resulting in a c. 10-12% unlevered IRR.

Across London, office space under construction

is stable vs March 2024 at 13msqft, of which

c. 45% is pre-let or under offer. Whilst demand

for space remains good, the build cost inflation

over the past few years, continued challenges

in supply chains and higher exit yields have

putpressure on development returns, despite

growing rents. This impacts office development

more than residential, so we continue to

carefully weigh risks and returns on any new

schemes, but in any case, we do not plan to

commit to any new speculative London office

projects until we have secured the majority

ofthe £61m ERV on our existing projects.

LANDSEC ANNUAL REPORT 2025 15

PORTFOLIO VALUATION

Successfully delivering on our objective to

drive sustainable income growth over time

will underpin growth in property values in

thelong run, even though in the short term

valuations are also affected by changes in

valuation yields. Reflecting our successful

leasing activity and the fact that property

yields stabilised, in line with the expectation

we set out a year ago, the external valuation

of our portfolio was up 1.1%.

Our Central London portfolio was up 1.0%,

driven by strong 5.2% growth in ERVs, whilst

valuation yields rose slightly. Developments

were up 2.5% reflecting ERV growth and a

de-risking of our on-site schemes. The

valuation of our major retail portfolio was up

3.4%, reflecting a combination of 4.0% ERV

growth and 22bps yield compression.

Combined with the high-income return, this

again was the best performing segment in

our portfolio, with a 10.1% total return for the

year compared with Central London at 5.2%

and mixed-use at 0.1%.

The value of our mixed-use assets was down

5.0% for the year, principally reflecting a rise

in valuation yields at MediaCity in the first

half of the year, although this stabilised in the

second half. The shortening of income at our

three existing retail assets in Glasgow and

London, which previously had been managed

for flexibility for future redevelopment, also

weighed on values in the first half yet this

slowed in the second half, as our plans

become more tangible. The value of our retail

parks was up 5.4%, principally driven by yield

compression. We have now sold c.40% of this

portfolio since the year-end, on average in

line with book value. The value of our leisure

portfolio was down slightly for the year,

butstable in the second half.

We continue to see a steady pick-up in

investor interest and activity in London

andmajor retail. As rents for the best assets

continue to grow, yields for such assets remain

attractive in a historical context. Whilst we

have not seen any impact on investor

appetite from the recent increase in global

economic uncertainty so far, we are mindful

that the direction for long-term interest rates

and credit spreads will likely influence the

pace at which momentum continues to

improve from here. As customer demand

remains robust, following our 4.2% growth

inoverall ERVs over the past 12 months, we

expect London and major retail ERVs to grow

by a broadly similar rate this year as they did

over the last 12 months.

VALUATION OVERVIEW

TABLE 6

Market

value

£m

Surplus /

(Deficit)

£m

valuation

change

valuation

change

LFL rental

value

change

Net initial

yield

Topped up

net initial

yield

Equivalent

yield

LFL

equivalent

yield change

bps

West End offices 3,124 17 0.6 0.5 5.2 4.6 5.4 5.4 14

City offices 1,445 20 1.4 0.0 7.5 4.2 5.1 6.2 13

Retail and other 1,022 (2) (0.2) 0.3 0.6 4.3 4.6 4.9 (2)

Developments 1,108 27 2.5 (0.4) n/a 0.0 0.0 5.3 n/a

Total Central London 6,699 62 1.0 0.2 5.2 4.4

5.2

5.5 12

Shopping centres 1,977 81 4.3 1.3 3.6 7.2 7.9 7.7 (31)

Outlets 626 4 0.5 0.8 5.1 6.3 6.3 6.9 (7)

Total Major retail 2,603 85 3.4 1.2 4.0 7.0 7.6 7.5 (22)

London 190 (18) (8.1) (2.7) 3.4 4.3 4.3 6.6 8

Major regional cities

599 (24) (4.0) (1.4) 1.7 6.6 6.5 8.2 47

Total Mixed-use urban 789 (42) (5.0) (1.7) 2.2 5.9

5.8

7.7 36

Leisure 423 (5) (1.2) (0.1) 1.3 7.8 8.1 8.8 (8)

Retail parks

366 19 5.4 (0.1) 1.1 6.1 6.3 6.7 (24)

Total Subscale sectors 789 14 1.8 (0.1) 1.2 7.0 7.2 7.7 (22)

Total Combined Portfolio 10,880 119 1.1 0.3 4.2 5.4

6.0

6.3 3

1. Rental value change excludes units materially altered during the period.

2. Excluding developments/land.

3. Includes owner-occupied property.

4. Includes non-current assets held-for-sale.

GROWING IN A SUSTAINABLE WAY

We target to reduce direct and indirect

greenhouse gas emissions by 47% by 2030

vs2019/20, including all of our Scope 1 and 2

emissions and all of our reported Scope 3

emissions, and reach net zero by 2040. So far,

we have reduced our emissions by 33% vs our

2019/20 baseline. We also target to reduce

energy intensity by 52% by 2030 vs 2019/20

and are currently on track, with a 23%

reduction vs this baseline so far.

In 2021, we set out a net zero transition

investment plan to ensure all our assets

would meet a Minimum Energy Efficiency

Standard of EPC ‘B’ by 2030. The cost of this

isreflected in our valuations and we

completed the first retro-fit of air source

heatpumps in an occupied building during

the year at Dashwood, so 56% of our portfolio

is now rated EPC ‘B’ or higher, up from 49%

ayear ago. We also installed almost 1,300

additional solar panels at Gunwharf Quays,

which combined with the already existing

system will generate over 670,000kWh per

year, representing 23% of total landlord

electricity demand.

We also continue to focus on reducing

embodied carbon in development, with

ourfuture pipeline tracking a 41% reduction

vs the standard baseline. This is principally

achieved via relatively low-cost changes in

design and retention of existing structures,

but there is a limit to how much of a further

reduction is economically achievable.

Whilstthere is clear evidence that energy

inuse is important to customers and

investors, there is no evidence they are willing

to pay a premium for buildings with less

embodied carbon.

Finally, through our Landsec Futures

programme, we continue to improve social

mobility in real estate and tackle issues local

to our assets. To date, this has created career

pathways for 18 interns and supported 13 real

estate bursaries. From our 2019/20 baseline,

we have so far created £96m of social value

and empowered 14,737 people towards the

world of work.

LANDSEC ANNUAL REPORT 202516

FINANCIAL REVIEW

HIGHLIGHTS

£374m

EPRA EARNINGS

(2024: £371m)

£393m

IFRS PROFIT/(LOSS)

BEFORE TAX

(2024: £(341)m)

50.3p

EPRA EARNINGS PER SHARE

(2024: 50.1p)

53.3p

BASIC EARNINGS/(LOSS)

PER SHARE

(2024: (43.0)p)

£10,880m

COMBINED PORTFOLIO

1, 2

(2024: £9,963m)

£6,532m

IFRS NET ASSETS

(2024: £6,447m)

6.4%

TOTAL RETURN ON EQUITY

(2024: (4.0)%)

40.4p

DIVIDEND PER SHARE

(2024: 39.6p)

39.3%

GROUP LTV RATIO

(2024: 35.0%)

£4,304m

ADJUSTED NET DEBT

(2024: £3,517m)

874p

EPRA NET TANGIBLE

ASSETSPER SHARE

(2024: 859p)

1. Including our proportionate share of subsidiaries

andjoint ventures, as explained in the Presentation

offinancial information in the Financial Review.

2. Includes owner-occupied property and non-current

assets held-for-sale.

PRESENTATION OF

FINANCIALINFORMATION

The condensed consolidated preliminary

financial information is prepared under

UKadopted international accounting

standards (IFRSs and IFRICs) where the

Group’s interests in joint ventures are

shown collectively in the income

statement and balance sheet, and all

subsidiaries are consolidated at 100%.

Internally, management reviews the

Group’s results on a basis that adjusts

forthese forms of ownership to present

aproportionate share. The Combined

Portfolio, with assets totalling £10.9bn,

isan example of this approach, reflecting

our economic interest in our properties

regardless of our ownership structure.

Our key measure of underlying earnings

performance is EPRA earnings, which

represents the underlying financial

performance of the Group’s property

rental business, which is our core

operating activity. A full definition of

EPRAearnings is given in the Glossary.

Thismeasure is based on the Best

Practices Recommendations of the

European Public Real Estate Association

(EPRA) which are metrics widely used

across the industry to aid comparability

and includes our proportionate share of

joint ventures’ earnings. Similarly, EPRA

Net Tangible Assets per share is our

primary measure of net asset value.

Measures presented on a proportionate

basis are alternative performance

measures as they are not defined under

IFRS. This presentation provides additional

information to stakeholders on the

activities and performance of the Group, as

it aggregates the results of all the Group’s

property interests which under IFRSare

required to be presented across anumber

of line items in the statutory financial

statements. For further details see table71

in the Business analysis section.

OVERVIEW

We delivered solid financial results for the

year. EPRA EPS was ahead of our initial

guidance due to our strong leasing activity

and, in line with the view we set out a year

ago, valuations for our best-in-class assets

returned to growth, underpinning a positive

return on equity. Meanwhile, our strong

capital base allowed us to take advantage of

the opportunity to invest in a number of rare,

high-quality, accretive acquisitions, which

will further enhance future growth income

and our overall return prospects.

With continued customer demand for our

best-in-class space resulting in over 97%

occupancy and positive rental uplifts on

relettings and renewals, like-for-like net

rental income was up 5.0%, ahead of our

increased guidance at the half year. Despite

continued inflation, overhead costs were

down 5%, as our continued focus on driving

cost efficiencies more than offset inflation.

We see further upside on both fronts in the

near future, underpinning a positive outlook

on EPS growth.

STRATEGIC REPORT

VANESSA SIMMS,

CHIEF FINANCIAL OFFICER

LANDSEC ANNUAL REPORT 2025 17

Our £23m like-for-like net rental income

growth and £4m reduction in overhead

costsmore than offset a small rise in finance

costs, the impact from net disposals during

the period, and a reduction in surrender

receipts, so EPRA earnings were up £3m to

£374m, or 50.3 pence per share. Our total

dividend for the year of 40.4 pence is up 2.0%,

in line with our guidance of low single digit

percentage growth, and our dividend cover

of1.25x remains comfortably within our

target range of 1.2-1.3x on an annual basis.

Our successful leasing drove 4.2% growth

inERVs, which further enhances our income

growth potential and underpinned a 1.1%

increase in the valuation of our assets. This

meant IFRS profit before tax was £393m and

basic EPS was 53.3 pence, compared with a

loss before tax of £341m in the prior year.

EPRA NTA per share was up 1.7% to 874 pence,

so including dividends, our return on equity

was 6.4%.

All this remains underpinned by our clear

commitment to retain a strong balance

sheet. Adjusted net debt increased from

£3.5bn to £4.3bn, principally due to our

£455minvestment in Liverpool ONE in

December, but this reduces to £4.1bn

pro-forma for our £159m of disposals since

the year-end. Pro-forma for these, our LTV

is38.4% and our weighted average net

debt/EBITDA is 7.7x and we anticipate

makingfurther disposals in the near term.

InSeptember, we issued a £350m ten-year

Green Bond at a 4.625% coupon and in

October we refinanced £2.25bn revolving

credit facilities at stable margins, so our

average debt maturity remains long, at

9.6 years. We have no need to refinance

anydebt until 2027 and have £1.1bn of cash

and undrawn facilities.

INCOME STATEMENT

Our primary focus is to deliver sustainable

income and EPS growth as, over time, it is

sustainable growth in income and EPS which

drives value growth in real estate and equity

markets. During the year, our high-quality

portfolio and strong leasing activity delivered

strong like-for-like rental income growth.

We have continued to reposition our portfolio

to further enhance its long-term return

prospects, but as our main disposals were

atthe start of the year and our principal

acquisitions were towards the end of the

period, the loss of income for the year from

the timing of these transactions was £24m.

We also saw a £14m reduction in surrender

premiums vs 2024, yet despite this we

delivered a £2m increase in net rental income,

principally driven by strong like-for-like

growth. Finance expenses increased slightly,

but this was offset by a reduction in

administrative expenses so EPRA earnings

of£374m were ahead of the prior year, as

expected, and ahead of our initial guidance

for the year.

INCOME STATEMENT

TABLE 7

Year ended 31 March 2025 Year ended 31 March 2024

Central

London

£m

Major

retail

£m

Mixed-

use

urban

£m

Subscale

sectors

£m

Total

£m

Central

London

£m

Major

retail

£m

Mixed-

use

urban

£m

Subscale

sectors

£m

Total

£m

Change

£m

Gross rental income

299 199 54 72 624 291 181 57 112 641 (17)

Net service charge expense

(2) (4) (4) (1) (11) (4) (7) (3) (2) (16) 5

Net direct property expenditure

(23) (33) (12) (5) (73) (23) (31) (12) (15) (81) 8

Net other operating income – – 1 – 1 – – – – – 1

Movement in bad/doubtful debts provisions 1 4 4 2 11 (1) 8 – (1) 6 5

Segment net rental income 275 166 43 68 552 263 151 42 94 550 2

Net administrative expenses (73) (77) 4

EPRA earnings before interest 479 473 6

Net finance expense (105) (102) (3)

EPRA earnings 374 371 3

Capital/other items

Valuation surplus/(deficit) 107 (625) 732

Loss on disposals (18) (16) (2)

Impairment charges (26) (12) (13)

Fair value movement on interest-rate swaps (38) (17) (21)

Other (6) (20) 14

Profit/(loss) before tax attributable to

shareholders of the parent

393 (319) 712

Non-controlling interests – (22) 22

Profit/(loss) before tax 393 (341) 734

1. Including our proportionate share of subsidiaries and joint ventures, as explained in the Presentation of financial information above.

2. Includes finance lease interest, after rents payable.

3. Current year balances reflect a reclassification of joint venture service charge management fee income from net direct property expenditure to net service charge expense

of £3m. While the comparatives have not been restated, the equivalent reclassification would have been £3m.

LANDSEC ANNUAL REPORT 202518

STRATEGIC REPORT

FINANCIAL REVIEW CONTINUED

NET RENTAL INCOME

Our gross rental income was down £17m

to£624m, principally reflecting the timing

difference between acquisitions and

disposals, as outlined above, and the fact

that surrender receipts were £14m lower

thanin the prior year, at £5m. We anticipate

surrender receipts to remain limited in the

future, given lower levels of customer

rightsizing or repurposing activity across our

portfolio. The release of bad and doubtful

debt provisions was up £5m, principally due to

the recovery of outstanding debts on assets

that were previously managed externally and

we now manage in house, so we expect this

level to reduce this year. The benefit of this

broadly offset the fact that surrenders were

lower than our original guidance.

Reflecting the above, our overall net rental

income was up £2m to £552m, although on

alike-for-like basis net rental income was

up£23m, or 5.0%. This was well ahead of

ourinitial guidance for the year of similar

growth as the prior period’s 2.8% and above

our raised guidance at the half year of growth

being closer to 4%. This reflects our strong

leasing, with increased occupancy, positive

uplifts on relettings and renewals, and

growth in turnover income, but also our focus

on costs, as direct property costs reduced

by £8m and net service charge expenses

were down £5m. Looking ahead, we expect

like-for-like net rental income to grow by

c. 3-4% in this financial year.

Our gross to net margin improved by 2.7ppt

to88.5%, which was well ahead of our

guidance, reflecting the growth in like-for-

like income, our focus on managing costs,

and the increase in recovery of bad and

doubtful debt provisions, although we expect

the benefit of the latter to reduce next year.

NET RENTAL INCOME

(£m)

CHART 8

Net rental income for the

year ended 31 March 2025

Net rental income for the

year ended 31 March 2024

Increase in variable and

turnover-based rents

Acquisitions since

1 April 2023

Movement in

bad/doubtful debts

Disposals since

1 April 2023

Like-for-like net service

charge expense

Like-for-like net direct

property expenditure

Decrease in surrender

premiums received

Gross rental income

like-for-like movement

in the period

Operational

performance

Developments

550

(14)

(41)

552

600

550

500

450

400

350

300

1. Including our proportionate share of subsidiaries and joint ventures, as explained in the Presentation of financial information above.

2. Gross rental income on a like-for-like basis and the impact of developments, acquisitions and disposals exclude surrender premiums received.

NET ADMINISTRATIVE EXPENSES

Following a £7m reduction during the prior

year, net administrative expenses were

downa further £4m to £73m last year, as

ourcontinued focus on managing costs

morethan offset inflation, principally driven

by organisational changes and procurement

savings. We implemented our new data and

tech systems late last year, so the material

efficiency savings these will deliver will

mostlybenefit future years. Alongside a

further streamlining of our resources and

other savings, this means we expect net

administrative expenses to be well below

£70m for FY26 and less than £65m for FY27,

despite the increase in national insurance

costs and ongoing inflation.

The reduction in net administrative expenses

and increase in gross to net margin resulted

in a 3.3ppt improvement in our EPRA cost

ratio to 21.7%, although this is not a measure

which is overly useful in its own right. Assets

with long leases to a single tenant naturally

have lower operating costs than more

operational assets such as e.g. residential

orshopping centres, yet that clearly does

notmean they deliver better income or total

returns. For us, it is the overall net income

return which matters, as that is what

ultimately drives value for shareholders.

NET FINANCE EXPENSES

Net interest costs increased by £3m to £105m,

which reflected a small increase in our

weighted average cost of debt and higher

adjusted net debt following the acquisition

ofa 92% stake in Liverpool ONE in December.

We expect to reduce our net debt over the

coming year from the level at March 2025 due

to our planned capital recycling, but as our

starting net debt for the year is higher than

itwas last year, we still expect net finance

expenses for this financial year to be higher

than last year.

LANDSEC ANNUAL REPORT 2025 19

Non-cash finance expense, which includes

the fair value movements on derivatives,

capsand hedging and which is not included

in EPRA earnings, increased from a net

expense of £23m in the prior year to £39m

thisyear. This is predominantly due to the fair

value movements of our interest-rate swaps

over the period.

VALUATION OF INVESTMENT PROPERTIES

The independent external valuation of our

Combined Portfolio showed an increase in

value of £119m. Our continued strong leasing

activity resulted in 4.2% ERV growth, and

valuations yields were stable in both the first

and second half of the year. We continue

tosee investment activity picking up, which

we expect will continue to underpin values

forthose assets that can generate income

growth, although we are mindful that the

pace at which activity recovers further from

here could well be influenced by any changes

in long-term interest rates.

IFRS PROFIT/LOSS AFTER TAX

Substantially all our activity during the

yearwas covered by UK REIT legislation,

which means our tax charge for the period

remained minimal. The IFRS profit after tax

of£396m reflects our continued strong

income performance and the positive fair

value adjustment of our investment portfolio.

This compares with an IFRS loss after tax of

£341m last year.

NET ASSETS AND RETURN ON EQUITY

Including dividends paid, our total return

onequity for the year was 6.4%, compared

with -4.0% for the prior year. The income

component of this was 5.8%. Movements

invaluation yields reduced our overall return

on equity by 0.8%, but other valuation

movements added 2.1%. Within this, the

upside from ERV growth was offset in part

byan increased level of capex on pre-

development assets and a reduction in the

value of QAM, as it is getting nearer the end

of its lease. We also recognised an element of

goodwill write-off and provisions, as detailed

below, which reduced ROE by 0.7%, but

theseare not expected to recur. Given our

attractive income return and clear income

growth, we are well-placed to deliver

attractive return on equity over time.

After the £297m of dividends paid, EPRA

NetTangible Assets, which reflects the value

of our Combined Portfolio less adjusted net

debt, increased to £6,530m, or 874 pence per

share. This was up 1.7% vs the prior year. Our

strong operational performance supported

a£119m valuation uplift across our portfolio,

yet this was partly offset by a number of

items. In line with our guidance at the half

year, we wrote off £22m of goodwill which

principally arose from acquiring the studios

business at MediaCity alongside our acquisition

of the remaining 25% stake of this estate,

inline with our practice to not carry any

goodwill on our balance sheet. In addition,

wesaw a £18m loss on disposals and we

madea number of other small adjustments

impacting NTA in respect of certain

transaction costs and property provisions

totalling £23m.

BALANCE SHEET

TABLE 9

31 March

2025

£m

31 March

2024

£m

Combined Portfolio 10,880

9,963

Adjusted net debt (4,304) (3,517)

Other net assets/(liabilities) (46) (48)

EPRA Net Tangible Assets 6,530 6,398

Shortfall of fair value over net investment in finance leases book value 8 5

Other intangible assets 2 2

Excess of fair value over trading properties book value (27) (25)

Fair value of interest-rate swaps 1 22

Net assets, excluding amounts due to non-controlling interests 6,514 6,402

Net assets per share 877p 863p

EPRA Net Tangible Assets per share (diluted) 874p 859p

1. Including our proportionate share of subsidiaries and joint ventures, as explained in the Presentation of financial information above.

2. Includes owner-occupied property and non-current assets held-for-sale.

MOVEMENT IN EPRA NET TANGIBLE ASSETS

(£m)

CHART 10

Like-for-like

valuation movement

Development

valuation movement

Impact of

acquisitions/disposals

EPRA Net Tangible Assets

at 31 March 2025

EPRA Net Tangible Assets

at 31 March 2024

EPRA earnings

Dividends

Loss on disposals

Goodwill impairment

Other

Total valuation surplus £119m

6,398

374

(297)

(18)

(22)

6,530

(24)

7,000

6,000

5,000

4,000

859 50 10 3 3 (40) (3) (4)(4) 874

Diluted per share (pence)

1. Including our proportionate share of subsidiaries and joint ventures as explained in the presentation of financial information above.

2. Includes owner-occupied property.

LANDSEC ANNUAL REPORT 202520

STRATEGIC REPORT

FINANCIAL REVIEW CONTINUED

NET DEBT AND LEVERAGE

Adjusted net debt, which includes our share

of JV borrowings, was flat over the first half

of the year, but increased by £787m to

£4,304m during the second half. We spent

£702m on acquisitions, most of which was

inthe second half of the year, reflecting the

92% stake in Liverpool ONE and the residual

25% stake of MediaCity. We invested £486m

in capex, including £202m for our two on-site

London office schemes, £45m in a significant

office refurbishment, £85m on pre-

development assets, £28m for investments

inMyo flex office space, and £22m in net zero

investments. This was partly offset by £446m

of disposals, including our £400m hotel

portfolio and other non-core assets.

We expect our adjusted net debt to reduce

over this financial year. Since the year-end,

we have already sold £159m of assets, which

reduced adjusted net debt to £4,145m on

a pro-forma basis, and we expect further

disposals in the near future. We have £232m

of committed capex remaining on our two

London office developments, which will

completeat the end of this financial year.

Wedo not intend to commit to any new

office-led developments until we have secured

the majority of income on these projects.

The other key elements behind the increase in

net debt are set out in our statement of cash

flows and note 13 to the financial statements,

with the main movements in adjusted net

debt shown below. A reconciliation between

net debt and adjusted net debt is shown in

note 22 of the financial statements.

MOVEMENT IN ADJUSTED NET DEBT

(£m)

CHART 11

Adjusted net debt

at 31 March 2025

Adjusted net debt

at 31 March 2024

Adjusted net cash inflow

from operating activities

Dividends paid

Capital expenditure

Acquisitions

Disposals

3,517

(260)

305

486

702

(446)

4,304

5,000

4,500

4,000

3,500

3,000

2,500

2,000

1. Including our proportionate share of subsidiaries and joint ventures, as explained in the Presentation of financial information above.

Net debt/EBITDA increased to 7.9x on a

weighted average basis, which is more

representative than the 8.9x year-end

position, as the latter includes the full cost of

the Liverpool ONE acquisition but only three

months of income. We expect average net

debt/EBITDA to tick up slightly in the short

term, reflecting the fact that our two on-site

developments are nearing the point of full

capital deployment but are not yet producing

income, yet we target this to be below 8x over

time. All else equal, our objective to reduce

our capital employed in pre-development

assets by half over the next 1-3 years will

reduce net debt/EBITDA by c. 0.7x.

We said at the half year that we expected

ourGroup LTV, which includes our share of

JVs, to increase temporarily as we would

aimto capitalise on attractive acquisition

opportunities, but to remain within our

25-40% target range. With the acquisition

ofLiverpool ONE, LTV ended the year at

39.3%, but as we have sold £159m of assets

since the end of March, this has come down

to 38.4% on a pro-forma basis since then,

whilst net debt/EBITDA is down to 7.7x.

Weexpect LTV to reduce further towards

themid 30s as we recycle further capital

outof non-income producing development

sites and non-core assets.

NET DEBT AND LEVERAGE

TABLE 12

31 March

2025

31 March

2024

Net debt £4,341m £3,594m

Adjusted net debt

£4,304m £3,517m

Interest cover ratio 3.6x 3.9x

Net debt/EBITDA

(period-end)

8.9x 7.4 x

Net debt/EBITDA

(weighted average)

7.9 x 7. 3 x

Group LTV

39.3% 35.0%

Security Group LTV 41.9% 37.0 %

1. Including our proportionate share of subsidiaries

and joint ventures, as explained in the Presentation

of financial information above.

LANDSEC ANNUAL REPORT 2025 21

FINANCING

We continued to strengthen our financial

position during the year. In September, we

issued a £350m Green Bond with a maturity

of ten years at 4.625%, representing a spread

of 97bps over the reference gilt yield. In

October, we put in place £2,250m of revolving

credit facilities to replace facilities that

weredue to expire across 2025-27. The new

facilities are split evenly across two tenors of

3+1+1 and 5+1+1 years, to spread refinancing

dates, and on average have the same margin

as the facilities they replaced.

Both transactions underline the strength of

our credit profile and ensure our overall debt

maturity remains long, at 9.6 years, providing

clear visibility and underpinning the resilience

of our attractive earnings profile. We had

£1.1bn of cash and undrawn facilities at the

end of March 2025, providing substantial

flexibility, and no refinancing needs until

FY27. Our debt is 91% fixed or hedged and

ouraverage cost of debt was up marginally

to3.4%. We expect this to increase slightly

inthe current year.

Our gross borrowings of £4,396m are

diversified across various sources, including

£2,868m of Medium Term Notes (MTNs),

£778m of syndicated and bilateral bank loans

and £750m of commercial paper. Our MTNs

and the majority of bank loans form part of

our Security Group, which provides security

on a floating pool of assets valued at £10.0bn.

This structure provides flexibility to include or

exclude assets, and an attractive cost of

funding, with our MTNs currently rated AA

and AA- with a stable outlook respectively

byS&P and Fitch.

Our Security Group has a number of tiered

covenants, yet below 65% LTV and above 1.45x

ICR, these involve very limited operational

restrictions. A default only occurs when LTV

ismore than 100% or the ICR falls below 1.0x.

Our portfolio could withstand a c. 36% fall in

value before we reach the 65% LTV threshold

and c. 58% before reaching 100% LTV, whilst

our EBITDA could fall by c. 60% before we

reach the 1.45x ICR threshold and c.

72%

before reaching 1.0x ICR.

AVAILABLE FACILITIES

TABLE 13

31 March

2025

£m

31 March

2024

£m

Medium Term Notes 2,868 2,607

Drawn bank debt 778 415

Outstanding commercial paper 750 681

Cash and available undrawn facilities 1,101 1,889

Total committed credit facilities 2,590 2,907

Weighted average maturity of debt

9.6 ye ars 9.5 ye ar s

Percentage of borrowings fixed or hedged

91% 94%

Weighted average cost of debt

3.4% 3.3%

1. Assuming the extensions on both RCF tranches are executed; 8.9 years excluding this.

2. Calculated as fixed rate debt and hedges over gross debt based on the nominal values of debt and hedges.

3. Including amortisation and commitment fees; excluding this, the weighted average cost of debt is 3.3% at 31 March 2025.

FINANCIAL SUMMARY

In summary, the high-quality portfolio we

have created over the past few years

continues to benefit from strong customer

demand, so we expect our strong operational

performance to persist. Reflecting this, we

expect like-for-like net rental income for this

year to increase by c. 3-4% and we also

anticipate a further reduction in overhead

cost. We expect this to more than offset an

increase in interest expenses and the fact

that we are unlikely to have the same benefit

of the recovery of outstanding debts on

assets that were previously managed

externally that we had last year.

Overall, we expect EPRA EPS to grow by

c. 2-4% this year. This is on track with the

c. 20% EPS growth potential we see by FY30

as we execute our strategy and is expected to

drive further growth in dividends, in line with

our 1.2-1.3x target cover. As our capital base

remains strong, we are well-placed to deliver

significant shareholder value over time.

VANESSA SIMMS,

CHIEF FINANCIAL OFFICER

LANDSEC ANNUAL REPORT 202522

STRATEGIC REPORT

OUR STAKEHOLDERS

The Board is pleased to provide a statement

that supports Section 172(1) of the Companies

Act 2006. This requires that Directors promote

the success of the Company for the benefit

ofthe members, having regard to the interest

of stakeholders in their decision making.

Inthis section, we provide examples of how

the Board engages with stakeholders and

takes into account their interests when

making decisions.

STAKEHOLDERS AND

BOARDDECISIONMAKING

Our stakeholders’ interests and priorities

continue to evolve. Effective communication

with our stakeholders is critical to keeping

pace with their changing needs, which is

soimportant for our long-term success.

TheBoard’s engagement with stakeholders

isboth direct engagement and indirect

(bymanagement reporting). The importance

of having effective relationships with our

stakeholders is embedded throughout the

wider business.

OUR CUSTOMERS

During the year, the Board received regular

updates on customer insights for each of

ourbusiness units as well as having detailed

discussions on the proposed changes to our

strategy. The following Board activities took

place this year: (a) in September 2024, the

Board visited our Westgate Centre, Oxford

and received an update on the retail business

including consumer trends; (b) in January

2025, the Board had a tour of the Myo Lucent

office. Our Board members also individually

visited Workplace and Lifestyle assets

throughout the year.

Our role is to shape places that stand the

testof time in order to create value for all our

stakeholders. This is our Section 172 Statement.

OUR FIVE KEY STAKEHOLDERS

OUR FIVE KEY

STAKEHOLDERS

LANDSEC ANNUAL REPORT 2025 23

In February 2025, our evolved strategy was

announced, which will see us continue to

grow our portfolio of UK urban places.While

each of these places will be mixed in use,

theywill be shaped primarily by one of our

core focus sectors, being office-led, retail-led

or residential-led. Over the next fiveyears

weare aiming to rebalance our portfolio to

besplit approximately in thirds between

these different sectors to deliver sustainable

income and earnings per share growth.As a

result of this, we will be refocusing our capital

allocation, particularly towards growing our

residential portfolio.

OUR COMMUNITIES

Landsec Futures is our principal community

investment programme focused on

enhancing social mobility in our workplace

and wider industry. The programme is

designed to maximise the potential of people,

places and communities by creating pathways

into our industry from education to training

and entry-level roles. It supports our

corporate commitment to empower 30,000

people from underrepresented socio-economic

backgrounds towards the world of work,

creating £200m of social value by 2030.

The Board gains a better view of our local

communities from regular updates on and

visiting our sites, and updates from the

Corporate Affairs Director on political and

community engagement.

Our teams engage extensively with local

communities. For example, teams across

ourbusiness celebrated Purple Tuesday in

November 2024, alongside the launch of

SignLive, a pioneering tool to support the

deaf community with online video British Sign

Language interpretation services that are

available on demand 24/7, helping to make

our places more accessible and inclusive.

You can read more about our community work

onpage 31.

OUR PARTNERS

Our business model of developing and

operating properties relies on a network

ofsuppliers and so it is important that we

have strong relationships with our suppliers.

We are committed to high ethical standards

in the conduct of our business and to ensuring

our behaviour and practices maintain our

integrity. We value our relationships with

our suppliers and want to build long-lasting

partnerships. Our Supply Chain Commitment

launched in 2022 sets out our purpose, values

and approach to sustainability and how we

want to work with suppliers who uphold the

same ethical principles as us, and help us

achieve our sustainability commitments

incollaboration.

More information on our relationships with our

suppliers and associated processes is available

onourwebsite.

In 2023, we undertook a significant re-tender

of our facilities management providers

acrossour business. Our Future of Facilities

Programme explored the latest innovations

infacilities management, helping us to

identify the best service partners in the

market, and enabling us to design the best

operating model for us to achieve sustainable

operational excellence, best-in-class

customer experience, and a safe and secure

environment in a post-Covid world. The

programme was a significant effort, with

collaboration across the business, and has

now completed with new service partners

onboarded. The Board approved the

FutureofFacilities Programme and

contractscommenced in our retail business

on 1 April 2024 with our new service partners.

In Workplace, we’re continuing to evolve our

Aspire operating model and are excited to

welcome some new partners along with our

retained partners. 

In January 2025, CEOs from leading real

estate companies joined Mark Allan, CEO

andMike Hood, COO,at our office for Real

Estate Balance’s CEO breakfast. CEOs who

have signed up to their ten diversity and

inclusion (D&I) commitments were invited

todiscuss the findings and recommendations

of Real Estate Balance’s (REB) recent report.

OUR EMPLOYEES

Manjiry Tamhane is the Non-executive

Director responsible for Employee

Engagement and Whistleblowing. She

provides half-yearly updates on employee

engagement activities, as well as

contributing to discussions as and when

relevant matters arise. Overall, employee

sentiment has been very positive across

Landsec with high levels of engagement.

TheBoard received briefings on the employee

engagement survey undertaken in February

2025 which provided them with good insights

into employee sentiment (see page 25 for

more on our latest engagement survey).

Our Employee Forum represents our employee

voice and is made up of volunteers from

across the business. They meet every six

weeks as a team to discuss and action key

topics raised by employees as well as plan

events to bring employees together. They

meet quarterly with our CEO, Chief People

Officer and Corporate Affairs Director to flag

key issues of importance to employees and

seek answers or influence change as well as

being the conduit for insights and updates

from the business. Manjiry also meets the

Employee Forum twice a year, and key themes

for 2024/25 included the impacts of the

strategy refresh and launch of new core

business systems, town halls and other

communications, office technology and

facilities, expenses policy, events, bonus and

pay review and cost of living. Other

engagement activities included:

•

meet the Board events throughout the year,

where members of the Board met with

employees for open discussions on the

employee experience and Landsec culture

•

a one-off Engagement with our Shadow

Board members

•

our Non-executive Directors attending

ourannual spotlight awards event which

celebrates individual and team achievements

•

engagement with our employee diversity

networks and participants on our training

programmes including our high performance

masterclass (for senior leadership), Enrich

(atalent development programme to

buildethnic diversity in the talent pipeline

for management and leadership) and

ourinterns

LANDSEC ANNUAL REPORT 202524

STRATEGIC REPORT

OUR STAKEHOLDERS CONTINUED

Our investors

We want to create sustainable value for our three types of investors: institutional, private and debt. It is important

tousthat our investors understand our strategy and our equity story so they can support the execution of our strategy

andour capital recycling.

NO. OF EQUITY

INVESTORS

7,906

Institutional investors

During the year, our Chair and Senior Independent Director wrote

to our larger shareholders offering meetings, and as a result they

met with some of those shareholders to discuss governance and

the overall strategy of the Group.

Our Executive Directors continue to hold meetings with investors

representing more than half the share register by value.

We manage a comprehensive investor relations programme

forinstitutional investors, consisting of post-results roadshows,

industry conferences, private-client broker roadshows and

property tours.

In February 2025, we held a Capital Markets event in London, for

institutional investors and sell-side analysts. Our CEO, CFO and

Chief Strategy & Investment Officer explained the focus for the

next phase of Landsec’s strategy. They set out our plans to

buildon our strategic achievements since late 2020, and focus

onincome and EPS growth to drive overall return on equity.

INDUSTRY CONFERENCES

Attending industry conferences provides our Executive

Directorswith a chance to meet a large number of institutional

investors on a formal and informal basis. Conferences attended

this year include the UBS Global Property conference in London,

the Kempen conference in Amsterdam, the Bank of America

conference in New York and London, the Citi conference in

Florida, Barclays’ real estate conference in London, Deutsche

Numis’ real estate conference in London, and Morgan Stanley’s

real estate conference in London.

INSTITUTIONAL

INVESTORS

1,265

99.07% OF SHARES

Private investors

Our private investors are encouraged to give feedback and

communicate with the Directors via the Company Secretary

throughout the year.

2024 ANNUAL GENERAL MEETING

We held our AGM as a physical meeting in 2024. We invited

shareholders to ask questions and vote on the resolutions.

All resolutions put to the meeting received overwhelming support

of investors.

The results of the voting at all general meetings are published

on our website: landsec.com/investors/regulatory-news.

PROGRAMME OF SHARE REGISTER ACTIVITIES

We have a rolling programme of share register activities, the

intention of which is to maintain an efficient share register,

limited paper distributions, effective communications and

theprovision of best-in-class service to our investors.

PRIVATE INVESTORS QUERIES

We work closely with our registrar Equiniti to address all

queriesthat we receive from our private shareholders

throughoutthe year.

PRIVATE INVESTORS

6,641

0.93% OF SHARES

Debt stakeholders

FIXED INCOME INVESTORS

In June 2024 we held an annual update for fixed income investors

linked to the FY24 results. A number of key investors took part

inaseries of one-to-one and group video calls with the CFO

andthe Group Treasurer. This engagement supported us in

successfully accessing the bond market in September 2024

without the need for a further deal-specific update. Going

forward, we plan to continue to engage with fixed income

investors on at least an annual basis, updating them on our

results and key developments.

BANKS

We have continued to maintain an active dialogue with our

banking group over the course of the financial year, at both

arelationship coverage level and across multiple financing

andrisk management areas, to discuss various opportunities.

Engagement was even more extensive over Q2 and Q3 of

ourfinancial year, as we launched and refinanced the Group’s

revolving credit facilities, originally put in place in 2018 and

2019.The majority of the existing banking group joined the

newfacilities, demonstrating ongoing support, with a number

increasing their commitment to the Group. Two new banks also

joined to replace those exiting the facilities.

CREDIT RATING AGENCIES

We work closely with each of Standard & Poor’s, Fitch Ratings

andMoody’s, in their capacity as credit rating agencies and

debtstakeholders, to provide them with business and financial

updates and understand any evolution in their credit rating

assessments and methodologies.

Further information for our debt investorscan be found

onourwebsite: landsec.com/investors.

NO. OF LISTED BONDS

LANDSEC ANNUAL REPORT 2025 25

OUR PEOPLE AND CULTURE

It is also a pivotal moment for us to reflect on

areas for further improvement to help unlock

our people potential and support the business

to deliver on its growth ambitions.

The financial year ending 31 March 2025

hasbeen particularly busy from a people

perspective as we have welcomed employees

to Landsec as part of our growth strategy with

the acquisition of the remaining 25% stake in

MediaCity and our focus on elevating our retail

platform with the acquisition of Liverpool ONE.

Our focus as a People team continues to

beon creating an inclusive environment

where people thrive and do their best work.

Our people are a key part of our competitive

edge as an organisation, and enabling our

colleagues to deliver their best work and

berewarded and celebrated accordingly

isparamount to our success.

From a talent and development perspective,

our high performance ambition has gathered

momentum over the past 12 months.

Embedding this into every stage of our people

journey has been a key focus for this year and

will continue to be as we head into the new

financial year.

EMPLOYEE ENGAGEMENT

Understanding our people’s perspectives is

key in driving our success. We anonymously

survey our people regularly, to gather

feedback and uncover meaningful insights

that inform our focus and actions.

Since 2023, we have adopted a bi-annual

engagement approach – a comprehensive

survey each spring and a pulse survey in

theautumn. This enables us to benchmark

against similar-sized organisations, the real

estate and property industry, and top-quartile

organisations. Through this, we explore

themes such as employee engagement,

inclusivity, culture, high performance and

company-wide communication.

We are proud to have been recognised twice

with the Outstanding Workplace Award

byour survey partner, People Insight. This

recognition reflects our ongoing dedication

toengagement. In February 2025, 86% of our

employees participated in the latest survey,

achieving an engagement score of 89%,

atestament to our commitment to fostering

a supportive and high-performing workplace.

Our recent efforts have focused on key

priorities, including cross-team

communication, career progression,

managing performance and workload.

Actions taken to address these priority

areas,include:

•

business plans for all business units and

enabling functions were cascaded through

hybrid ‘mini–Loop Live’ sessions open to all

employees. Additionally, quarterly business

updates provided company-wide

transparency on our performance

•

we enhanced clarity around talent

management through our Talent &

Development intranet pages and expanded

our Next Level on-demand learning

pathways to offer tailored development

opportunities for all

•

senior leadership teams participated

inmasterclasses with an external expert

todefine clear performance measures,

forming the cornerstone of our high-

performance journey. In addition, we

haveprovided performance management

training and resources ranging from

in-person sessions to videos, podcasts

andquick reference guides to support

linemanagers and colleagues alike

As part of our Landsec80 celebration, we were

delighted to offer 80 free Landsec shares to all

employees through our Share Incentive Plan

(‘MySIP’). We launched MySIP a year ago, and

over 45% of colleagues have joined this plan

todate, allowing them to share in the success

they are helping to build.

We launched MyTotal Reward which includes

a comprehensive overview and details of

ourcomplete package and the ability for

individuals to view the value of their current

package. In our recent People survey, 94%

ofpeople understood our benefits and 80%

ofour people believed that we offer the right

combination of benefits to attract, motivate

and retain our people.

Our ‘always on’ recognition platform

continues to empower all employees to

recognise, appreciate and celebrate each

other’s achievements, with 76% of our people

receiving personal recognition this year. Our

annual Spotlight awards event is the highlight

of our recognition calendar – a truly special

occasion that unites our people to honour our

remarkable individuals and teams.

As we celebrate our 80th year as a business,

this year has been an important time for us

as a people-focused organisation to reflect

on what makes Landsec so special.

LANDSEC ANNUAL REPORT 202526

STRATEGIC REPORT

OUR PEOPLE AND CULTURE

CONTINUED

TALENT MANAGEMENT

Our talent strategy is centred around

ourcommitment to fostering growth,

preparing future leaders and driving

organisational success.

At Landsec, we support the 70/20/10

approach to development, a popular

framework based on the premise that

learning comes from three main sources,

broken down into the following proportions:

•

70% from on-the-job experiences and

challenging assignments

•

20% from developmental relationships,

such as mentoring and coaching

•

10% from formal learning and training

Our people continue to demonstrate their

dedication to growth, with each colleague

completing an average of 11 hours and

22minutes of formal learning this year.

Additionally, we remain committed to

supporting professional development,

with13employees pursuing recognised

qualifications this year.

Through our bi-annual Group Talent Review,

we bring clarity to succession planning,

targeted development and participation

intailored programmes.

Key outcomes of this approach include:

•

Succession planning: Comprehensive

succession plans for all Executive

Leadership Team (the ‘ELT’) and Senior

Leadership Team roles.

•

Leadership development programme:

Launch of Landsec Builds: Next Level

Leadership, a development programme for

emergent leaders to strengthen our future

leadership bench. In 2025, this programme

will evolve to include Shadow Sounding

Board accountability.

•

Diversity and inclusion focused programme:

Enrich is a targeted programme aimed at

enhancing the ethnic diversity of our future

talent pipeline. Eight colleagues participated

in the first cohort with significant shifts seen

in their career aspirations and clarity on how

to achieve them following participation in

the programme.

•

Development of our most senior leaders:

via high-performance masterclasses.

Since their inception, 59 of our colleagues

haveparticipated in these programmes. The

measures of success are to retain and promote

talent up and through the organisation.

To ensure development opportunities are

accessible to all, we introduced our Next Level

learning platform in 2024. This platform

continues to evolve, offering curated learning

pathways that enhance skills, knowledge and

behaviours aligned with our high-performance

culture ambitions.

Our refreshed induction programme, Landed,

combines an enhanced day-one experience,

acurated digital onboarding journey and an

in-person event hosted at one of our iconic

locations. Featuring our history, insights from

senior leaders and a Q&A with our CEO, this

initiative fosters connectivity, engagement

and a deeper understanding of our business.

DIVERSE TALENT

We continued to embed our Diversity &

Inclusion (D&I) strategy ‘Diverse Talent,

Inclusive Culture, Inclusive Places’.

Our overall business broadly reflects the

gender and ethnic diversity of the UK, but

diversity reduces at senior levels. That’s why

this year, we’ve focused on better reflecting

the diversity of our communities within our

leader population by recruiting from diverse

shortlists and building a diverse talent pipeline.

•

53% of those promoted into leader roles

werefemale and 13% were from an ethnic

minority background.

•

We added ‘inclusion nudges’ into the

recruitment process, giving hiring

managers tips on reducing bias in job

adverts and carrying out effective

structured interviews each time they

startanew recruitment process.

•

Over 80% of leader roles have been

recruited from diverse shortlists.

“ Enrich has given me the confidence to

foster new relationships within different

parts of the business and expanded my

perspective on career development.

The 1:1 coaching sessions have been

particularly helpful in formulating a

careertrajectory and exploring new ways

to strengthen my impact at Landsec.”

Chloe Prince, Workplace Portfolio Manager

and Enrich participant

INCLUSIVE CULTURE

An inclusive culture enables diverse talent to

thrive through inclusive leadership, training

and employee engagement. In particular,

thisyear:

•

Our ELT completed their reverse mentoring

programme, with reverse mentoring

pairingNisha Manaktala (Chief Data

andTechnology Officer) and Ross Tyson

(Performance and Partnerships Manager)

sharing their learning in a session open

toall colleagues on Empowering

Neurodiversity at Work.

•

Our networks delivered a range of

sessionsto engage colleagues and the

wider industry with highlights including:

– Diaspora shared the stories of Black

changemakers in our industry and local

communities in an impactful Black

History Month event

– Hand in Hand sponsored sessions for

allcolleagues on mental health and

neurodiversity inclusion to upskill

colleagues and line managers

– Landsec Pride collaborated with industry

peers on the inaugural ‘Pride in Property’

event to support LGBT+ inclusion in

realestate

– Landsec Women focused on women’s

empowerment, running sessions on

female investment and embracing the

discomfort zone

LANDSEC ANNUAL REPORT 2025 27

•

We rolled out mandatory learning to line

managers on evidence-based decision

making to reduce the impact of bias

onannual performance assessments.

•

We acted on feedback from reverse

mentoring participants and the Employee

Forum, co-creating new guides to support

maternity returners and their line managers

to ensure an effective return to work.

•

We maintained positive scores in our

inclusion index – part of our employee

engagement survey which measures

ourprogress in creating an inclusive

culture,scoring an average of 80%

positiveresponses across the four

inclusionquestions.

“ As a child and in my early career, I spent a

lot of time trying to push a part of myself

into the background. This is a common

situation for many neurodiverse people.

Inrecent years, I’ve decided to embrace

my differences and talk openly about

them. It was amazing to work with my

mentee, Nisha Manaktala, to help shine

aspotlight on neurodivergence and help

current and future colleagues who may

have been in the same situation.”

Ross Tyson, Performance and Partnerships

Manager and reverse mentor

INCLUSIVE PLACES

•

We launched ourInclusive Design Principles

to help deliver our commitment to delivering

inclusive places.

•

We rolled out live sign language

interpretation across our retail portfolio

with SignLive.

•

We enhanced the accessibility of our

managed Workplace portfolio by providing

tailored information on accessibility and

facilities in each asset’s automated visitor

information email, making it easier for

guests to find the information they need.

Further details on our strategy are available on our

D&I strategy page on landsec.com with progress

against targets reported annually on our D&I targets

and performance scorecard.

PAY GAP

We reported on our 2024 ethnicity and gender

pay gaps for the Landsec Group with full

details available on our website.

•

Our mean gender pay gap reduced from

29.1% in 2023 to 28.2% in 2024

•

Our median gender pay gap increased from

27.6% to 29.2% over the same period

This year, we saw a mixed picture with our

mean gender pay gap improving slightly and

the median worsening by 1.6%. These small

changes in our gender pay gaps are due to

increases in female representation in all of

the quartiles, except the upper middle

quartile which has seen a decrease in female

representation. In real terms this is due to

increased female representation in all of our

leadership populations but a small decrease

in our mid-level management population

which is largest in number.

•

Our mean ethnicity pay gap reduced from

43.0% in 2023 to 39.6% in 2024

•

Our median ethnicity pay gap slightly

increased from 39.4% to 39.5% in the

sameperiod

Our mean ethnicity pay gap has decreased,

and the median has only increased by 0.1%

because the representation of ethnic minority

employees has increased across all pay

quartiles, except the lower middle quartile.

This is due to a high proportion of ethnic

minority new starters over the period. 31.6%

of new starters over the past 12 months are

from ethnic minority backgrounds.

GENDER BY MANAGEMENT LEVEL

CHART 14

ETHNICITY GROUP BY MANAGEMENT LEVEL

CHART 15

EXECUTIVE

SENIOR LEADER

LEADER

MANAGER

PROFESSIONAL

SUPPORT

WHOLE ORGANISATION

60 40

66 34

61 39

53 47

38 62

20 80

47 53

EXECUTIVE

SENIOR LEADER

LEADER

MANAGER

PROFESSIONAL

SUPPORT

WHOLE ORGANISATION

90 10

97 3

90 5 21

83 26 3 3 2

972 10 7 12

2360 12 3

79 8 7 3 1

Male Female

Overall, as a business, we remain roughly gender balanced with 53% female

representation and 47% male representation. Over the past 12 months,

female representation has increased from 36% to 39% at Leader level but

decreased in our smaller Senior Leader population from 38% to 34% due to

twofemale leavers at this level.

White Asian Black Mixed Other Prefer not to say/Unknown

19% of our staff are from ethnic minority backgrounds, broadly representative

of the UK as a whole and aslight increase from the previous year. We have

seen a small growth in ethnic minority representation at Leader and Senior

Leader levels – a key focus of our D&I plans for the past year. Totals may not

add up to 100% due to rounding.

LANDSEC ANNUAL REPORT 202528

STRATEGIC REPORT

OUR APPROACH TO SUSTAINABILITY

We design, develop and manage buildings

inways that will enhance the health of

ourenvironment and improve quality of life

for our people, customers and communities,

now and for future generations.

Our sustainability strategy – Build well, Live well, Act well –

continues to focus our work on the environmental, social

andgovernance (ESG) issues where we know we can have

the biggest impact.

See more about our approach to sustainability

at landsec.com/sustainability.

For full performance updates please see our Sustainability

Performanceand Data Report 2025 at landsec.com/sustainability/

reports-benchmarking.

PERFORMANCE AT A GLANCE

This year, we have again made good progress on delivering our commitments and targets against each of our three pillars:

PILLAR TARGET HIGHLIGHTS

BUILD WELL

Our commitment to

enhance the health

of the environment

See more on pages 29-30

47% reduction in absolute GHG emissions

by2030 from a 2019/20 baseline

33%

REDUCTION IN ABSOLUTE CARBON EMISSIONS

50% reduction in average upfront embodied

carbon compared with a typical building

by2030

41%

REDUCTION IN EMBODIED CARBON ACROSS

DEVELOPMENT PIPELINE

Reduce energy intensity by 52% by 2030

from a 2019/20 baseline

23%

ENERGY INTENSITY REDUCTION

Deliver our nature strategy across our

operational assets and development schemes

100%

OF ASSETS UNDER OUR OPERATIONAL CONTROL WITH

NATURE ACTION PLANS IN PLACE

LIVE WELL

Our commitment

to support our

communities to thrive

See more on page 31

£200m of social value by 2030 from

a 2019/20 baseline

£96m

SOCIAL VALUE CREATED

30,000 people empowered to enter

the world of work from a 2019/20 baseline

14,737

PEOPLE EMPOWERED

Design, develop and manage our assets

toensure everyone feels like they belong

Launched

OUR INCLUSIVE DESIGN PRINCIPLES TO HELP US CREATE

INCLUSIVE PLACES

ACT WELL

Our commitment

to being a fair,

responsible business

See more on page 32

Build relationships with our customer base

to drive improved sustainability performance

4.1/5

AVERAGE SCORE FOR CUSTOMERS AGREEING WE ARE

DOINGA GOOD JOB OF SUPPORTING THEM ACHIEVE

THEIRESG GOALS

Build relationships with our strategic

suppliers enhancing sustainable practices

throughout our supply chain

93%

OF STRATEGIC SUPPLIERS SIGNED UP TO OUR SUPPLY

CHAINCOMMITMENT

All Landsec colleagues to support the

delivery of Build well, Live well, Act well

witha proportion of remuneration linked

toESG targets

100%

EMPLOYEES HAVE ESG METRICS INCLUDED IN THE

ANNUALBONUS PLAN AND LONG-TERM INCENTIVE PLAN

(LTIP) FOR SENIOR LEADERS AND ELT

1. Excluding assets acquired or completed after the launch of nature strategy and third-party managed assets.

LANDSEC ANNUAL REPORT 2025 29

DECARBONISING OUR PORTFOLIO

We are committed to transitioning to net zero

by 2040, whilst building resilience to climate

change. Our ambitious science-based carbon

reduction target (SBT) will see us reduce our

Scope 1, 2 and 3 emissions by 47% by 2030

andby 90% by 2040 from a 2019/20 baseline.

REDUCING OPERATIONAL CARBON

We remain focused on decarbonising our

portfolio and improving energy effi ciency.

Our £135m Net Zero Transition Investment

Plan (NZTIP), launched in 2021, is key to

achieving our SBT and we are making strong

progress. To date, we have invested £32m,

including transforming our offi ce buildings

byreplacing existing heating and cooling

systems with air source heat pumps (ASHPs).

The installation programme is progressing at

pace, with around40ASHPs being installed

tocompletely remove gas across fi ve buildings

in Victoria and the City.

Across our retail sites we continue increasing

our on-site renewable electricity generation.

This year we installed almost 1,300 solar

panels at Gunwharf Quays, adding to the

existing array to generate 23% of landlord

total electricity demand. We plan to install

additional solar PV arrays at Braintree Village

next year and at Bluewater, Southside and

StDavid’s in subsequent years.

Following the publication of the Transition

Plan Taskforce (TPT) Disclosure Framework

inOctober 2023, we have been developing

ourClimate Transition Plan, mapping out

theactions we need to take to decarbonise

our business and reach net zero across our

value chain by 2040.

This includes actions across our retail portfolio,

such as improving our understanding of

our brand partners’ energy consumption,

to better engage with them on their journey

to net zero.

To fi nd out how we are already engaging our

customers to reduce their energy use, see page 32.

This year, we embarked on a signifi cant

energy management transformation,

implementing a comprehensive energy

management platform, which will improve

energy management, streamline operations

and reporting process. By delivering

comprehensive data visualisation and

customised dashboards, the platform will

enable proactive energy management

actions and improved performance insights.

REDUCING CARBON IN CONSTRUCTION

Responding to occupier demand for

workplaces with excellent sustainable

credentials, all our commercial schemes are

targeting BREEAM Excellent or above, and an

average upfront embodied carbon reduction

of 50% compared with a typical development

by 2030. Our two committed schemes,

TimberSquare and Thirty High, are exemplary

due tothe high levels of retention of existing

structures, with upfront embodied carbon

intensities of 522kgCO

e/sqm and

347kgCO

e/sqm respectively.

Our development team remains focused

oninnovation, identifying and testing

low-carbon solutions for application across

ourprojects. These solutions are also a key

metric in our annual bonus for all employees.

We also actively support the demand for

low-carbon materials, as signatory

membersof Climate Group’s SteelZero and

ConcreteZero campaigns, committing to

procure 100% netzero steel and concrete

by2050, with a50% lower-emission target

by2030. Our2024/25 reported fi gures

showstrong progress, with over half of the

concrete used being low carbon, and 42%

ofsteel meeting SteelZero criteria.

To compensate the unavoidable residual

emissions from our new developments,

weaim to support ‘beyond value chain

mitigation’ (BVCM). This includes activities

that avoid, reduce, or remove and store

carbon emissions, also known as carbon

off sets. In line with our off setting strategy

and due diligence process, we have

purchased high-quality nature-based carbon

credits, including removals and avoidance

carbon credits from the Kuamut Rainforest

Conservation Project in Malaysia and

reduction credits from Ghana through the

Lowering of Emissions by Accelerating Forest

Finance (LEAF) coalition.

DECARBONISING

DASHWOODHOUSE

In March 2025, Dashwood House was

ourfi rst ASHP installation project in

anoccupied building to complete.

Thebuilding is now powered by fi ve

newASHPs on the roof, running solely

onelectricity from renewable sources.

Asa result, the building has achieved an

EPC rating of B, and is expected to reduce

energy usage for heating and cooling

thebuilding by 50%, with further carbon

reduction expected as the electricity

griddecarbonises.

NET ZERO AT THIRTY HIGH

Thirty High has been designed to be

net zero in both construction and

operation in line with the UK Green

Building Council’s defi nition of a net zero

building and will target EPC A, NABERS 5*,

WELL Core Platinum and BREEAM

‘Outstanding’. By retaining the existing

structure, we will lower the upfront

embodied carbon by 60% compared with

a typical building as set by the Greater

London Authority. The building will also

befully electric, powered by air source

heat pumps, with all electricity derived

from renewable sources.

BUILD WELL

EPC RATINGS

Our portfolio is 100% compliant with the 2023 MEES EPC E or above requirements.

Inaddition, 56% of our portfolio – 51% of offi ces and 61% of retail – is already EPC B

orabove.

2024/25 EPC RATING (BY ERV)

CHART 16

LANDSEC

OFFICE

RETAIL

56 21 21 2

51 21 28

61 20 14 5

A-B C D E

LANDSEC ANNUAL REPORT 202530

STRATEGIC REPORT

ENHANCING NATURE ANDGREENSPACES

We believe that nature leads to better, more

desirable places, and want to use our places

as a catalyst to enhance nature in the urban

environment. Last year, we launched our

‘LetNature In’ strategy to improve biodiversity

in the built environment, promote health,

wellbeing and community engagement,

andcreate nature-based solutions to mitigate

and adapt to climate change. As such we

have developed nature action plans for all

assets where we have operational control and

included core nature principles underpinned

by targets in our Sustainable Development

Toolkit to guide our development projects.

OUR APPROACH TO SUSTAINABILITY

CONTINUED

→

Protection: Continue to protect the local

water catchment area prioritising assets

located in sensitive areas

We are setting metrics and targets to help

usmonitor our performance in delivering

these principles, with a principal target

tomaximise rainwater and greywater

harvesting opportunities across the portfolio,

focusing on areas of high water stress.

AtNova, we are already harvesting almost

2 million litres of rainwater per year.

See further information on our TNFD disclosure within

our Sustainability Performance and Data Report 2025.

For more information on our Build well targets

performance activity, visit landsec.com/

sustainability/build-well.

MAXIMISING

MATERIALSREUSE

Eight of our Central London Workplace

design teams met for a ‘materials

auction’ in April 2024, to present materials

that would be coming off our projects

undergoing significant deconstruction,

and discuss options to maximise reuse of

elements, such as steel works, railings,

raised access floor tiles and timber doors.

As a result, we salvaged over 4,000m

floor tiles from Red Lion Court, for use in

our Timber Square development, saving

nearly 165 tonnes of embodied carbon.

Additional tiles are to be reused at Timber

Square from 55 Old Broad Street.

USING RESOURCES EFFICIENTLY

MATERIALS

Our Materials Brief, launched in 2024,

isproving instrumental in shaping our

developments, driving embodied and

whole-life carbon reduction. It guides our

design team to identify key opportunities

formaterial reuse, alternative materials

andinnovative solutions in collaboration

withour supply partners. The brief also helps

align our developments to green building

certification requirements, promotes use of

local suppliers, and upholds ethical sourcing

and human rights standards. This holistic

approach is supporting our commitment

tocreating sustainable places.

WASTE

In 2024/25 we continued to divert 100%

ofwaste from landfill, and recycled 65%

ofoperational waste (2023/24: 66%).

Wehaveconsolidated our service providers

into an overarching operating model,

whichhas enhanced the way we manage

waste. We have optimised our process in

collaboration with our new waste partners

setting targets to improve waste

management and better collect and report

waste data. Despite this significant change

inhow we operate our assets, we have

managed to keep our recycling rates level

dueto our established waste management

and reporting process.

In March 2025, a UK-wide legal framework

‘Simpler Recycling’ was introduced to make

the recycling process more straightforward.

Our long-standing recycling target and

robustapproach to waste segregation

ensures we are well prepared and the

changes will have minimal impact to our

business and our customers.

WATER

Water and climate change are closely linked,

as extreme weather events exacerbate

waterstress, making water more scarce,

unpredictable and polluted. We therefore aim

to ensure water is used as efficiently as

possible across our portfolio, and this year

wereviewed our approach to water, focusing

on areas we can have the biggest impact.

Our approach is based on three key principles:

→

Conservation: Eliminate unnecessary use

bychanging behaviour and processes

→

Efficiency: Reduce water use by adopting

efficient design and technology to do

‘morewith less’

TRANSFORMING

ST DAVID’S, CARDIFF

At St David’s, Cardiff, we are transforming

the old Debenhams store into a new public

space, following extensive engagement

with more than 5,000 people across the

local community. This included Landsec

research which revealed that 75% of

people in Cardiff think access tonature

and green space should be apriority for

developers. We responded byensuring the

new square will be landscaped with trees

and a diverse mix of native planting,

boosting biodiversity and access to nature

in the city centre.

INCLUSIVE PLACES

To help us create truly inclusive places,

welaunched our Inclusive Design Principles,

providing guidance and inspiration to our

teams, consultants and service partners

around three principles: inclusive places,

inclusive processes and inclusive knowledge

and skills. The document off ers an

overarching framework, ideas for key

actionsand resources that off er more

comprehensive guidelines on specifi c areas

ofinclusive design to ensure our spaces are

accessible, useable, safe and welcoming.

ENHANCING WELLBEING

In line with our commitment to designing

andmanaging our assets to enhance our

customers’ physical and mental wellbeing,

wecontinue to subscribe to WELL at scale.

Currently, 41% of our directly managed offi ce

buildings are WELL certifi ed, including WELL

Core Platinum for nine assets and WELL Core

Gold for two assets. Additionally, we were

awarded WELL Equity Ratings for 17 assets and

WELL Health & Safety Ratings for 18 assets,

representing 67% of total managed offi ces.

To fi nd out more about our approach to creating

inclusive places and how we are supporting our

colleagues’ wellbeing, please see pages 25-27.

For more information on our Live well targets

performance activity, visit landsec.com/

sustainability/live-well.

LANDSEC ANNUAL REPORT 2025 31

COMMUNITY DESIGN

CHAMPIONS IN LEWISHAM

For our Lewisham Shopping Centre

Masterplan, we co-designed the scheme

with the local community, engaging

2,000people since 2023. We initiated

aDesign Champions process, recruiting

17community members to design the

scheme alongside our team. These

champions have signifi cantly infl uenced

the plans which now include a meadow

on the roof, a music venue and a locally

led plan for the mix of retail to serve the

community needs.

INCLUSIVE DESIGN

ATTIMBERSQUARE

We applied our Inclusive Design Principles

during the design of Timber Square Phase II.

As part of the public consultation process,

werecruited 12 local community members

asDesign Champions, bringing diversity

ofthought into the design process. These

champions worked with our inclusive design

consultants, resulting in key changes to

public realm features, including the

orientation of stairs to improve the sense

ofsafety and moving a passenger lift to

ensure a more equitable user experience.

LIVE WELL

4,488

PEOPLE SUPPORTED THROUGH

LANDSECFUTURES IN 2024/25

£43m

SOCIAL VALUE CREATED IN 2024/25

CREATING OPPORTUNITIES

ANDTACKLING LOCAL ISSUES

ENHANCING SOCIAL

MOBILITYINREALESTATE

Empowering and collaborating with our

communities is a crucial step to us creating

sustainable places that support our

communities to thrive. Through Landsec

Futures, we are enhancing social mobility in

ourbusiness and wider industry, striving to

empower 30,000 people from underrepresented

socioeconomic backgrounds towards the world

of work, creating £200m of social value by 2030.

Since launching Landsec Futures in 2023,

wehave welcomed 18 interns, ten of whom

stayed at Landsec after their internship

ended. This year we expanded our internship

programme to Manchester and Leeds, taking

on our fi rst cohort of regional interns.

Manuella joined us as an intern at Mayfi eld,

having previously worked with Regeneration

Brainery, one of our employability partners.

“ Within the fi rst two months of working

atLandsec, I have received insight into

what the development process is and all

that itrequires to reach the next stage.

Theinternship has not only equipped me

with the skills required for the role of a

project manager but it has enabled me

toface challenges head on.”

Manuella, Regeneration Brainery

AmbassadorandLandsec Intern

We supported a total of 13 scholars this year

in London, Portsmouth, Cardiff , Leeds and

Salford to undertake placemaking courses

including architecture and real estate.

Allbursary recipients meet social mobility

criteria and have a mentor from Landsec

assigned to them for the duration of their

degree, which is helping build networks

andopen doors in the industry.

ENGAGING OUR LOCAL COMMUNITIES

We know that for our places to succeed we

need the support of our local communities.

Our Community Charter, published in 2023,

ensures that we listen and understand the

needs of our local communities, working

withthem to shape our places. This builds

trust and stakeholder support for our

schemes, enabling a smoother planning

process. Since publishing our charter, we

havereceived over 700 letters of support

forour schemes in Camden, Lewisham,

Southwark and the City, demonstrating

positive local sentiment.

LANDSEC ANNUAL REPORT 202532

STRATEGIC REPORT

OUR APPROACH TO SUSTAINABILITY

CONTINUED

EMBEDDING SUSTAINABILITY

ENGAGING OUR EMPLOYEES

To ensure that every colleague contributes

toour sustainability vision, we continue

including ESG metrics in the Long-Term

Incentive Plan (LTIP) and Annual Bonus Plan

for Executive Directors and employees.

Wealso off er an EV salary sacrifi ce benefi t

scheme, encouraging colleagues to make

more sustainable choices at home.

ENGAGING OUR CUSTOMERS

We aim to be recognised as a leading

providerof sustainable places, supporting

ourcustomers to achieve their sustainability

ambitions. To enhance awareness of the

sustainability credentials of our buildings and

the impact of our programmes, we launched

a suite of communications in October 2024,

including our new quarterly customer

newsletter ‘One Workplace’, and providing

sustainability updates in customer meetings.

We continue collaborating with our customers

to promote sustainable behaviour, meet

shared sustainability goals and deliver cost

savings. Over the past three years, we have

delivered energy audits for 38 of our offi ce

occupiers, reviewing their energy use and

recommending ways to save as much as

15%energy usage annually. Building on

thesefi ndings, we identifi ed key learnings

applicable to all of our customers, and

overthe past year our Workplace team

haveshared these insights with a total of

54customers, advising on energy-saving

initiatives, and tracking implemented

actions. To date, 23% of the 300+

recommended measures have already been

implemented by our customers, with an

additional 45% agreed to be delivered

through Landsec-led interventions. We are

also empowering our service partners with

training on our lighting control systems,

enabling them to actively drive energy

savingsfor our customers.

ACT WELL

DOING THE BASICS BRILLIANTLY

SUSTAINABLE PROCUREMENT

Our work with suppliers to achieve our

sustainability commitments and support

positive change beyond our own business is

ongoing. 93% of our strategic suppliers have

signed up to our Supply Chain Commitment

which sets out how we work with suppliers

that share our values and help us to achieve

the highest standards in our supply chain,

whilst achieving wider social, economic and

environmental benefi ts.

As part of the consolidation of our service

partners, we embedded sustainability KPIs

into our contracts, tracking progress of the

positive impact we are having in collaboration

with our suppliers. As a result, each of our

Aspire Service Partners have committed to

employat least one apprentice, with six having

started employment since September 2024.

ASPIRE APPRENTICESHIPS

In June 2024, our Aspire Service Partners

collaborated with our Landsec Futures

employability partners to run a successful

Apprenticeships Recruitment Day,

ensuring we recruit from a diverse talent

pool. Clients from Cardinal Hume Centre,

Circle Collective, Construction Youth Trust

and Resurgo were invited to the day to

showcase the Aspire apprenticeships and

other entry-level job opportunities,

encouraging attendees to apply.

TACKLING MODERN SLAVERY

We require all employees to complete

mandatory modern slavery training, and

runmodern slavery workshops for our

supplypartners through the Supply Chain

Sustainability School. Key actions undertaken

this year to further improve our approach to

tackling modern slavery include:

→

Refreshing our modern slavery risk

framework, assessing risks at project and

supplier level, which informs appropriate

mitigation actions

→

Collaborating with our principal

contractors and facility management

partners to ensure whistleblowing signage

is displayed on all sites, confi rm adherence

with our Supply Chain Commitment and

check that relevant policies and procedures

are in place to protect the human rights of

all people working across our sites

→

Enhancing our approach to modern slavery

remediation to ensure we immediately

respond to a suspected case of modern

slavery or other serious forms of labour

exploitation, and provide remedy for

adverse impacts on individuals or groups

through legitimate means, in line with

bestpractice

CREATING HEALTHY, SAFE AND

SECURESPACES

This year we maintained our ISO 45001

certifi cation and BS 9997 fi re-safety

management-system certifi cation, both

subject to independent auditing. We continue

to focus our safety improvements on areas

where we can have the biggest impact,

including reducing the risk of signifi cant

occupational-safety hazards, such as working

at height, rooftop access management,

asbestos management and workplace-

transport hazard management. Fire safety

remains one of our priority areas, and

we continue working to ensure we meet

legislative requirements, such as the Building

Safety Act 2022.

BUSINESS ETHICS

We are committed to upholding high

standards of ethical conduct and operating

our business with integrity, and we expect the

same of our colleagues and any third-party

organisations who work with us. During the

year, we reviewed and updated our Anti-

Bribery and Corruption Policy and Ethical

Business Policy. We have strengthened our

procedures to prevent bribery and corruption

including confl icts of interests and gifts and

hospitality. We have also launched a new

Financial Crime Policy which includes how

weprevent money laundering, corporate

taxevasion and the new off ence of failing

toprevent fraud.

For more information on our Act well targets

performance activity, visit landsec.com/

sustainability/act-well.

LANDSEC ANNUAL REPORT 2025 33

TASK FORCE ON CLIMATE-RELATED

FINANCIALDISCLOSURES(TCFD) STATEMENT

Climate change is considered a principal

riskfor Landsec and, since 2017, we have

reported our approach to the recommended

disclosures of TCFD. We continue to evolve

ourapproach to identifying, assessing

andmanaging climate-related risks, and

overthe past year, we have reviewed our

methodology and data sources to improve

the identification and assessment of physical

risks associated with climate change. We are

making steady progress on our NZTIP and

remain on track to meet our science-based

carbon reduction target. The NZTIP has been

incorporated into our financial statements,

as described within the Notes to the financial

statements on page 98.

This statement is consistent with the

requirements of the London Stock Exchange

(LSE) Listing Rule 6.6.6 and all 11 TCFD

Recommendations and Recommended

Disclosures, and we can confirm we have

made climate-related financial disclosures

for the year ended 31 March 2025 in relation

to governance, strategy, risk management,

and metrics and targets.

GOVERNANCE

KEY ACTIVITIES IN THE YEAR

→

Decision making: Remuneration

Committee reviewed ESG targets and

respective outcomes included in the

AnnualBonus Plan and LTIP in line with

theRemuneration Policy approved by

shareholders at our 2024 AGM. The ELT

approved the investment for retrofitting

heating and cooling systems with air source

heat pumps at three workplace assets (One

New Change, 80 – 100 Victoria Street and

123 Victoria Street) in line with our NZTIP.

→

Training: Board and ELT received a

teach-in from the sustainability team

onnet zero carbon buildings focusing

onembodied carbon.

→

Reporting: Board, ELT and Sustainability

Forum receive quarterly ESG reports

showing progress against our

sustainabilitytargets.

Landsec has a strong record of leadership

onclimate action and reporting, where we

recognise the risks and opportunities posed

by climate change in our business model

andstrategy.

BOARD OF DIRECTORS

Responsible for overseeing our approach

toclimate-related risks and opportunities

affecting the business, with our CEO having

overall responsibility.

Receives updates on sustainability and

climate-related performance quarterly, with

additional discussion sessions as required.

Thisyear, the Board discussed the emerging

drivers and complexity for reducing embodied

carbon across our developments. These sessions

providethe Board with valuable insights,

increasing their understanding of relevant

climate-related risks.

As climate change is a principal risk, the Board

considers the impact of climate risks when

discussing Landsec’s strategy and long-term

success, including significant investment

decisions. This includes reviewing the climate

risk exposure of potential new acquisitions and

their impact on our portfolio.

Board oversight

AUDIT COMMITTEE

Supports the Board in managing risk, and

isresponsible for reviewing our principal risk

management and internal control processes.

Reviews and approves our TCFD statement.

REMUNERATION COMMITTEE

Sets and monitors climate-related targets linked

to Executive remuneration.

The LTIP for Executive Directors and senior

management includes an operational carbon

reduction target aligned with our SBT.

Annual Bonus Plan for Executive Directors and

allemployees includes energy efficiency and

embodied carbon targets.

For details on annual bonus and LTIP,

seepages70-75.

CEO

Overall responsibility and management for all elements of strategy,

including climate-related risks. Chairs the ELT.

ELT

Responsible for setting and monitoring the progress of the sustainability strategy

toensureitaddresses our relevant ESG risks andopportunities,

including those pertaining to climate change. Discuss sustainability

andclimate-related risksquarterly, or more often if required.

SUSTAINABILITY FORUM

Supports the ELT in delivering our sustainability strategy and mitigating

climate-related risks. Senior representatives responsible for delivering

programmes of work that contributetomeetingoursustainability targets,

and for mitigating climate-relatedrisksacrossourbusiness.

SUSTAINABILITY TEAM

Recommends approach to sustainability, including addressing climate-related risks.

Coordinates the sustainability strategy and climate-related risks, collaborating with all

areasofthebusiness to ensure appropriate mitigation and adaptation plans are in place.

Reports on progress against our targets.

Landsec governance structure is further discussed on pages 56-59.

Management roles, responsibilities and accountability

LANDSEC ANNUAL REPORT 202534

STRATEGIC REPORT

STRATEGY

IDENTIFYING AND ASSESSING CLIMATE-

RELATED RISKS AND OPPORTUNITIES

In accordance with the TCFD

recommendations, we have identified

climate-related risks and opportunities

acrosstwo categories:

→

Transition risks: associated with the shift

to a low-carbon economy, including

regulatory changes, market shifts and

evolving consumer preferences

→

Physical risks: related to the physical

impacts of climate change, including

extreme weather events and long-term

environmental changes

We have considered these risks and

opportunities over three time horizons –

short(less than 1 year), medium (until 2030)

and long term (beyond 2030) – against two

science-based climate scenarios – below

2°C(aligned with Shared Socioeconomic

Pathways (SSPs) SSP1-2.6) and exceeding

4°C(aligned with SSP5-8.5).

We assess physical risks based on the location

of assets and their exposure to individual

hazards resulting from climate change.

Thisyear, we partnered with Munich Re to

improve the assessment of portfolio exposure

to these risks. The assessment of current

riskexposure utilises Munich Re’s proprietary

models and loss data, which weight hazards

based on their damage potential, normalising

the average annual loss rates for property

damage within each hazard zone for the

respective perils (earthquake, storm/tropical

cyclones/tornadoes, flood/storm surge).

Forfuture exposures, the model incorporates

current conditions, projections and

anticipated changes for each peril under

different scenarios up to 2100. Transition risks

are evaluated by assessing the alignment

ofassets with relevant regulations (e.g.

Minimum Energy Efficiency Standards (MEES))

and market demand.

Following our Group risk management

framework, risks identified in our scenario

analysis have been assessed for:

Likelihood:

Low: <10% chance of occurrence; High: >20%

chance of occurrence

Financial impact:

Low: <£5M P&L / <£150m Capital; High: >£25m

P&L / >£500m Capital

Reputational impact:

Low: minor reputational impact; High:

significant impact leading to loss of trust

inthe Company

We have identified and assessed risks

acrossallareas of our business, including

investments, development and operations.

Mitigation of these risks is discussed in the

section below.

Our assessment concluded that our current

portfolio is not highly exposed to physical

risks given the location of our assets, and the

impact of physical risks to our portfolio will

only become more relevant in the long term,

under a >4°C scenario. Conversely, transition

risks are material in the short and medium

term as we expect increasing mitigation

toreduce emissions, such as policy and

regulation changes. Alongside this, there

isan opportunity for us to benefit from

increasing customer and investor demand

forlow-carbon buildings.

IMPACT OF CLIMATE-RELATED RISKS

ANDOPPORTUNITIES ON OUR STRATEGY

We address these risks and opportunities

through three priorities, all of which are

critical elements of our approach to

sustainability – Build well, Live well, Act well:

→

Decarbonising our portfolio

→

Developing low-carbon buildings

→

Building resilience to a changing climate

DECARBONISING OUR PORTFOLIO

We are committed to achieve net zero

carbonacross our value chain by 2040.

Thiscommitment has been approved by the

Science Based Target initiative (SBTi) and

includes a near-term target to reduce our

absolute Scope 1, 2 and 3 emissions by 47%

by2030 from a 2019/20 baseline, and a long-

term target to reduce our absolute emissions

by 90% by 2040 from a 2019/20 baseline.

Through our £135m NZTIP, launched in 2021,

weare ensuring we meet our near-term

science-based target and stay ahead of

impending 2030 MEES requirements of

minimum EPC B.

Todate, we have invested

£32m, completing our

first ASHP installation

inan occupied building at Dashwood House

inMarch 2025 and progressing ASHP retrofits

across four additional assets. We will recover

aportion of this investment through the

service charge as part of the normal lifecycle

replacement process.

We also expect to derive energy efficiency

benefits and cost savings as a result. For

details on the progress of our NZTIP and SBT,

see pages 28-29.

We continue to operate our buildings in line

with our company-wide environmental and

energy management system certified to ISO

14001 and ISO 50001. Energy reduction plans

and asset-specific action plans outline

how we will reduce energy use and carbon

emissions of each asset effectively, forming

part of the operational financial planning

foreach asset.

As we strengthen relationships with our

suppliers, the climate-related information

theyprovide, including carbon emissions,

energy consumption and climate-related

targets, enhances our understanding of their

operations and informs future engagement

activity. Additionally, we are partnering with a

solution provider to gain insights into our brand

partners’ energy consumption across our retail

assets, enabling targeted engagement to

support the decarbonisation of our portfolio.

FINANCIAL IMPACT

Income statement

Research shows that buildings with strong

sustainability credentials attract higher

average rents, improving leasing and

occupancy rates. Improved energy efficiency

is also expected to reduce service charges

payable by tenants.

Conversely, older, less sustainable assets

mayexperience longer voids due to

retrofitting requirements and potential

rental income losses if they fail to meet

minimum EPC requirements.

Balance sheet

Through our £135m NZTIP, we are electrifying

heating, installing solar PV and improving

energy efficiency across our portfolio.

Theseinitiatives are expected to strengthen

the capital value of affected assets,

whichhave shown more resilience to yield

pressures compared with assets without

strong sustainability credentials. This is

demonstrated by the CBRE Sustainability

Index, which shows a more resilient total

property return for energy efficient assets,

including a 90bps gap in ERV growth

compared with inefficient ones.

The NZTIP is factored into our asset valuations,

alongside expected uplift in ERVs. The cost of

the NZTIP is expected to fluctuate over the

next five years due to inflation and portfolio

composition changes with the expenditure

profile weighted to 2024/25 and 2025/26.

TASK FORCE ON CLIMATE-RELATED

FINANCIALDISCLOSURES(TCFD) STATEMENT

CONTINUED

LANDSEC ANNUAL REPORT 2025 35

<2ºC SCENARIO

Proactive and sustained action to halve global emissions by 2030

andreach net zero by 2050 – strong policy and regulatory responses,

rapid investment and adoption of low-carbon technology and

sustainable business and lifestyle practices. In the UK, marginally

higher temperatures all year round, lower precipitation in summer,

flooding and windstorms within current variability.

>4ºC SCENARIO

Limited climate action is taken to mitigate climate

change – there is a push for economic and social

development coupled with continuing exploitation

offossil fuels. In the UK, increase in severe weather

events, increased summer and winter temperatures,

drier summers and wetter winters.

Short term (<1 year)

Our immediate

business planning

andbudgeting occurs

annually, so it is

important that

appropriate resource

for mitigating and

adapting to climate

change is identified

each year and included

in annual budgets.

Low physical risks as only 6% of our portfolio is currently highly

exposed to combined physical risks (earthquake, storm, flooding

andwildfire). 2.9% of portfolio is exposed to river flood (return

periodof 50-100 years) and 0.3% of portfolio is exposed to storm

surge(return period of 100 years).

These risks are constantly monitored and we ensure all assets have

appropriate mitigation plans in place.

Medium transition risks associated with:

• Existing regulations, e.g. current MEES requiring all non-domestic

properties to have a minimum EPC rating of E. Risk is considered

low,as 100% of our assets are already compliant. We continue

monitoring this risk to ensure that all spaces have a valid EPC.

• Local planning requirements favouring low embodied carbon

development schemes. Risk is considered medium, as costs to

meetembodied carbon targets is highly dependent on design

andnature of developments.

Opportunity associated with:

• Increasing occupier and investor interest in assets with high

sustainability credentials, including BREEAM and EPC, presents

amedium opportunity as our portfolio transitions to net zero,

with63% BREEAM certified and 56% EPC A-B, and we continue

developing low-carbon buildings.

Low physical risks as only 6% of our portfolio is

currently highly exposed to combined physical risks

(earthquake, storm, flooding and wildfire). 2.9% of

portfolio is exposed to river flood with a return period

of 50-100 years. 0.3% of portfolio is exposed to storm

surge with a return period of 100 years.

These risks are constantly monitored and we ensure

all assets have appropriate mitigation plans in place.

Medium transition risks, as current risks are the

same as under <2°C scenario.

Medium term (until 2030)

We are taking action

now until 2030 to meet

our near-term

science-based carbon

reduction target.

Physical risks remain at a similar level as in the short term.

High transition risks associated with:

• Emerging regulations, such as proposed MEES requiring all

non-domestic properties to meet a minimum of EPC B by 2030.

Riskisconsidered high, impacting 44% of our current portfolio

thathas an EPC below B.

• More stringent planning requirements, including stricter operational

and embodied carbon obligations. For instance, Greater London

Authority requires projected operational energy emission shortfalls

to be offset, recommending a price of £95/tCO

e. Risk is considered

high, potentially impacting all our new developments.

• Uncertainty surrounding global policy and regulatory frameworks

that may hinder the decarbonisation of our supply chain, affecting

the availability and cost of low-carbon solutions. Risk is considered

high, potentially impacting our ability to meet our science-based

target, alongside customer and investor demand.

Opportunity associated with:

• Continued increase in customer and investor demand for sustainable

assets. Stakeholders are setting net zero targets and reporting on

thesustainability outcomes of their investments, driving demand

forgreen building certifications (e.g. BREEAM) and high energy

efficiency (e.g. EPC). JLL suggests that BREEAM certified buildings

benefit from 20.6% capital value premium and 11.6% rent premium,

and single step EPC improvement contributes to 3.7% capital value

premium and 4.2% rent premium. This presents a high opportunity,

as our portfolio transitions to net zero and we continue developing

low-carbon buildings.

Physical and transition risks remain at a similar

level as in the short term.

Long term (beyond 2030)

Many of our assets

havea design lifespan

of over 60 years –

therefore, identifying

long-term risks beyond

2030 is important for

our investment and

development decisions,

to ensure our portfolio

remains resilient in the

long term.

Increase in physical risks, particularly from storm surge. By 2100,

9%ofportfolio will be highly exposed to storm surge (return period

of100 years).

No significant change to overall portfolio exposure to climate risks.

Forinstance, slightly warmer summers are expected but these do not

pose significant risk of heat stress.

Transition risks remain high as further mitigation actions and

regulatory changes are expected to continue driving reductions

incarbon emissions, including:

• Carbon tax – potential for the built environment to be included in the

UKEmissions Trading Scheme. Risk is considered high, due to high

degree of uncertainty at this stage. We keep monitoring emerging

discussions on this topic, whilst reducing carbon across our portfolio

to minimise potential impact to our business.

• Achieving our science-based net zero commitment by 2040. Risk is

considered high, as significant reduction beyond achievement of

2030near-term target will be required, demanding capital expenditure

and investment in new technologies and innovative low-carbon

materials and processes.

Significant increase in physical risks from hotter,

drier summers; warmer, wetter winters and more

frequent severe weather events. By 2100, 9% of

portfolio will be highly exposed to storm surge (return

period of 100 years) and expected losses due to storm

surges events will significantly increase.

Sea level rise puts additional strain on the Thames

Barrier and increase in river peak flows has potential

for flood defence failures across the UK, leading to

higher portfolio exposure, with 4% of portfolio

exposed to river flood (return period of 50-100 years).

According to Swiss Re, climate risk could worsen

weather-related insured catastrophe losses, such as

flood and wildfires. Property insurance premiums will

reflect this augmented risk from climate change,

potentially increasing by 33-41% by 2040.

Significant increase in transition risks as adaptation

measures are adopted to cope with changes in

climate and associated physical risks.

LANDSEC ANNUAL REPORT 202536

STRATEGIC REPORT

TASK FORCE ON CLIMATE-RELATED

FINANCIALDISCLOSURES(TCFD) STATEMENT

CONTINUED

DEVELOPING LOW-CARBON BUILDINGS

We are committed to design and build

low-carbon buildings, ensuring low upfront

embodied carbon emissions, low operational

emissions and fossil-fuel free assets powered

by renewable electricity. This commitment is

embedded in our Sustainable Development

Toolkit – a comprehensive guide for our

development teams and external partners

toensure that sustainability is integrated

throughout the lifecycle of our projects and

gateway approval process.

For each development, we aim to reduce

emissions associated with construction by

exploring structural retention and material

reuse, adopting efficient design and modern

methods of construction, and specifying

low-carbon materials, balancing upfront

carbon with whole-life carbon to ensure our

design decisions do not negatively impact

long-term operational and maintenance

carbon emissions of our assets. We are also

exploring opportunities across our projects

totrial innovations at small scale to support

the development of low-carbon solutions.

To optimise operational efficiency, we set

energy use intensity (EUI) targets for

eachscheme, modelling the design of the

schemefor maximum energy efficiency.

Ourdevelopments are designed to be 100%

electric and target maximum use of on-site

renewables as possible.

Beyond our own developments, we are

actively engaged in industry-wide initiatives

and collaborations to shape industry

standards. We are a critical partner in the

development of the UK’s Net Zero Carbon

Building Standard (NZCBS) and we are

assessing its methodology against our

development pipeline.

FINANCIAL IMPACT

Income statement

Strong and increasing market demand for

low-carbon properties, particularly in the

office sector, is outstripping supply. This is

likely to drive rental and value premiums for

these assets.

Balance sheet

Increased demand for low-carbon materials,

many of which are still nascent markets,

areincreasing the construction costs of our

development pipeline.

The financial impact of reducing embodied

carbon on developments is highly dependent

on the strategy adopted. We have modelled

this across our live developments and found

that retention on one project could reduce

Total Development Cost (TDC) by 2.8%, while

relying on low-carbon materials on another

might increase TDC by 1.8%.

In September 2024, we issued our second

Green Bond (£350m) supporting our

transition to net zero. The proceeds from

thisbond will fund Eligible Green Projects,

including Green Buildings – Construction

ofnew developments and Renewable Energy

projects. The allocation and impact report

forthis Green Bond will be released later in

the year.

Our Green Financing Framework and previous

GreenBond report are available on our website:

landsec.com/investorsdebt-investors/green-bonds.

BUILDING RESILIENCE TOACHANGINGCLIMATE

Although our assessment indicates that our

current portfolio is not highly exposed to

physical climate risks due to the location

ofour assets, we proactively mitigate these

risks through physical measures, insurance

coverage and business continuity planning.

Within our development pipeline, we design

and build climate-resilient buildings capable

of withstanding the UK’s evolving climate

conditions. We address physical risks, such

astemperature fluctuations, by adapting

building services design. The performance

ofour façade and fabric materials is designed

to cope with expected higher and extreme

temperatures, as well as increased wind

speeds, minimising maintenance issues or

damage. Our drainage strategies are

designed to mitigate increased rainfall and

flood risks through physical and nature-based

solutions. In line with our ‘Let Nature In’

strategy, we integrate nature-based

solutions, such as façade and rooftop

greening, permeable surfaces and

landscaping to reduce energy demand and

enhance climate resilience.

Across our operational portfolio, we ensure

assets located in areas highly exposed to

physical risks have adequate protection and

mitigation, including business continuity and

emergency response plans. These measures

and our appropriate risk management help

us to reduce the risk of increase in insurance

costs related to climate risks.

Our Responsible Property Investment Policy

ensures that climate risks are assessed

duringacquisition and disposal of assets.

Weconduct thorough due diligence,

understanding the asset’s performance

metrics, including energy consumption,

EPCsand other sustainability credentials,

andassessing flood risk and embodied carbon.

FINANCIAL IMPACT

Income statement

The changing environment has direct cost

implications particularly for assets located

inhigh-risk flood zones (3.2% of portfolio)

due to potential repair costs, business

interruption and higher insurance premium.

Additional financial considerations include

potential inclusion of the built environment

sector in the UK Emissions Trading Scheme,

resulting in carbon taxes and higher

energycosts.

Balance sheet

Increased capital investment is required

tomaintain compliance with evolving legal

requirements, such as improving EPC ratings

across the portfolio, and protecting assets

atrisk from physical climate change. Failure

to do so could negatively impact long-term

capital values.

RESILIENCE OF OUR STRATEGY

ANDBUSINESSMODEL

We are confident that our strategy to

decarbonise our portfolio, develop low-carbon

buildings and build resilience to a changing

climate supports our transition to a low-

carbon economy, whilst managing the

impact of climate risks to our portfolio.

Thisisconsistent with the Group’s going

concern and viability assessment.

However, we recognise that our strategy

mayneed to evolve in the long term,

particularly under a >4°C scenario. In this

scenario, changes to our strategy and

financial planning may be required, including

LANDSEC ANNUAL REPORT 2025 37

divestment of assets that are less resilient

to physical climate risks, and investment

in infrastructure to mitigate the impact

of flooding and coastal surge. This scenario

could also lead to disruptions to our

customers’ and supply chain partners’

businesses, including potential business

failures and interruption. In response, we

would need to increase due diligence in our

supply chain selection, particularly for the

sourcing of construction materials that may

be processed in regions where the impacts

of climate change are more severe.

RISK MANAGEMENT

Climate change is identified as one of

Landsec’s ten principal risks, and is therefore

governed and managed in line with our

riskmanagement and control framework.

Weidentify, assess and manage climate-

related risks through the framework. Risks

arescored on a gross and net basis, following

evaluation of the mitigating controls in place.

Furthermore, Landsec has defined its

appetite for each risk, including climate-

related risks, and this is overlaid when

considering any residual risks.

As part of its overall responsibility for risk,

theBoard undertakes an annual assessment,

taking account of risks that would threaten

our business model, future performance,

solvency or liquidity, as well as the Group’s

strategic objectives. We use scenario-

modelling, including the climate scenario

analysis described above, to better

understand the impact of these risks on

ourbusiness model under varying degrees

ofstress, enabling us to consider

interdependencies and mitigation plans.

The primary responsibility for management

ofeach risk is assigned to a specific member

of the ELT, who is responsible for ensuring

theoperating effectiveness of the internal

control systems and for implementing key

riskmitigation plans. Risks are also assigned

a secondary owner – usually at Senior Leader

level – who is responsible for ensuring we

mitigate the risk appropriately.

Until 31 March 2025, primary responsibility for

climate risk was held by our Managing Director,

Corporate Affairs and Sustainability. Effective

1 April 2025, this responsibility transitioned to

our Chief Operating Officer (COO), with the

Head of ESG and Sustainability maintaining

secondary responsibility. Our climate change

principal risk includes both transition and

physical climate risks as detailed above, which

are monitored quarterly through a set of key

risk indicators outlined in the Metrics and

Targets section.

Our risk management process to address our

principal risks and uncertainties, including climate

change, is detailed further on pages 38-45.

METRICS AND TARGETS

TARGETS

To address climate change risks, we have set ambitious climate-related targets – the headlines

of which are summarised below:

DECARBONISING OUR PORTFOLIO

Achieve net zero greenhouse gas (GHG) emissions across the value chain by 2040 from

a2019/20 baseline

Near-term target: Reduce absolute Scope 1, 2 and 3 GHG emissions by 47% by 2030 from

a2019/20 baseline

Long-term target: Reduce absolute Scope 1, 2 and 3 GHG emissions by 90% by 2040 from

a2019/20 baseline

Reduce energy intensity by 52% by 2030 from a 2019/20 baseline

Source 85% of total energy (electricity, gas, heating and cooling) consumption from

renewable sources by 2030

DEVELOPING LOW-CARBON BUILDINGS

Reduce upfront embodied carbon across our developments by 50% compared with a typical

building

by 2030

BUILDING RESILIENCE TO A CHANGING CLIMATE

Ensure all assets in areas highly exposed to climate risks have adaption measures in place

1. Residual 10% emissions that cannot be reduced by 2040 will be offset through permanent emissions removals

inline with SBT guidance.

2. Typical buildings from GLA Whole Life Carbon Guidance – Typical offices: 1,000kgCO

e/m

GIA and typical

residential: 850kgCO

e/m

GIA.

METRICS

In addition to targets, we also monitor a number of climate-related metrics that support our

risk assessment, as provided below:

METRICS 2024/25 2023/24

Reduction in energy intensity from a 2019/20 baseline 23% 18%

Total energy from renewable sources 68% 68%

Percentage of portfolio that is BREEAM-certified (by value) 63% 61%

Percentage of portfolio that is EPC B or above (by ERV) 56% 49%

Percentage of portfolio that is EPC E or above (by ERV) 100% 100%

Investment in energy efficiency measures implemented in the year £24.6m £5.9m

Estimated annual savings from energy efficiency measures

implemented in the year

£1.3m £0.5m

Percentage of portfolio exposed to climate physical risks

6% 4.5%

3. 2024/25 portfolio exposure is based on Munich Re’s overall risk score that combines earthquake, storm, flood

and wildfire risks. 2023/24 figure is based on MSCI’s Climate Value at Risk methodology.

Methodology and performance against Metrics and Targets are detailed in our Sustainability

Performance and Data Report 2025. Additionally, our Streamlined Energy and Carbon Reporting

(SECR) on pages 160-162 provides details of our energy consumption and carbon emissions.

LANDSEC ANNUAL REPORT 202538

STRATEGIC REPORT

MANAGING RISK

RISK MANAGEMENT FRAMEWORK

ANDGOVERNANCE

Landsec operates a Group-wide risk

management framework in order to

supportthe identification, evaluation and

management of our principal risks. Whilst

ourapproach is well-established, we are

continuously reviewing our risk management

procedures to ensure that they are fit for

purpose, as our business, and the environment

we operate in, evolves. Working to further

embed our risk management practices has

therefore been a key priority during 2024/25.

The key components and stakeholders of our

risk management framework are:

•

The Board: accountable and have overall

responsibility for overseeing risk and

ensuring that a robust risk management

and internal control system is in place

andoperating

•

The Audit Committee: responsible for

reviewing the effectiveness of the risk

management and internal control system

during the year

•

The ELT: responsiblefor day-to-day

monitoring and management of the

Group-wide principal risks, ensuring that

there is a consolidated view of our key risks

to inform their prioritisation

•

Business unit Executive Committees

(Excos): monitoring and managing the

specific risks relevant to their business

units, as well as ensuring there is

appropriate reporting upwards on the

status and implications of key risks

•

Risk owners: accountable for the day-to-

day management, tracking and reporting

of the individual risks within their

respectiveareas

•

Risk Champions: individuals with

responsibility to advocate effective risk

management practices within each of their

respective business units and to support

risk owners

•

The Head of Risk and Controls: a central

role to oversee embedded risk management

within the business, managing the

framework and providing support to risk

owners and risk champions, and to act as

acoordinator and interface between the

top-down and bottom-up approaches

RISK APPETITE

Taking risk is an essential and inherent part

ofoperating any business. As such, Landsec’s

risk management strategy is not to eliminate

all risk but to ensure that appropriate

strategies are in place to identify, evaluate

and manage the key risks we face. It is

essential that our appetite for risk is

appropriately considered across each of our

risk categories, so that we understand the

level of risk we are willing to take, in the drive

to reap the associated rewards.

The Board is responsible for defining the

riskappetite of the Group, and ensuring it

remains in line with our strategy. Landsec’s

risk appetite differs for each risk, however

‘rule of thumb’ principles apply, with a

minimalist appetite for legal and compliance

related risks, a cautious appetite for

operational risks and a flexible appetite

forstrategic risks. The risk appetite reflects

Landsec’s risk management philosophy

anddetermines the extent to which risk is

managed or monitored for changes. To embed

risk appetite effectively in the business we

have established key risk indicators

associated with each risk. Scenario planning

also assists in setting these thresholds.

OUR KEY SUCCESSES IN 2024/25

• Adjusted the top-down risk

management framework,

relocating the risk discussions

tothe Executive Committee level

• Significant progress made in

ourresponse to the future

requirements of Provision 29 of

the UK Corporate Governance

Code 2024 (the ‘2024 Code’)

• In line with above, established an

internal control forum and a risk

events log to triage risk events,

address control remediation

points and manage internal

auditfindings

• Decentralised risk management

framework simplified and

embedded, strengthening

theinteractions between the

‘top-down’ and ‘bottom-up’

riskmanagement processes

OUR KEY PRIORITIES IN 2025/26

• Ensuring complete readiness

forthe requirements of the

forthcoming Provision 29 of

the2024 Code

• Continue our work on

streamlining and optimising

controls as we embed our new

financial system

Our embedded risk management framework

is central to how we oversee our business and

our assets, supporting sustainable growth

while advancing our strategic goals.

LANDSEC ANNUAL REPORT 2025 39

RISK MANAGEMENT FRAMEWORK

TOP-DOWN

Oversight,

identification,

assessment and

mitigation of risk

ata Group level

RISK GOVERNANCE

BOARD

•

Set strategy and objectives

•

Set the risk culture

•

Monitor risk exposure

(including emerging risks)

•

Define risk appetite

AUDIT COMMITTEE

•

Support the Board in monitoring

risk exposure

•

Review the effectiveness of our

risk management and internal

control system

1ST LINE OF DEFENCE 2ND LINE OF DEFENCE 3RD LINE OF DEFENCE

RISK MANAGEMENT

ELT AND BUSINESS UNIT

LEADERSHIP TEAMS

•

Operate within risk

appetite

•

Identify the principal

and emerging risks

•

Evaluate response

strategies against

riskappetite

•

Design, implement

andevaluate the risk

management and

internal control system

RISK MANAGEMENT

•

Create a common risk

framework and language

and provide direction on

its application

•

Assist with the

identification and

assessment of principal

and emerging risks

•

Monitor risks and risk

response plans against

risk appetite

•

Aggregate risk

information

•

Provide guidance

andtraining

•

Facilitate risk escalations

and acceptance

INTERNAL AUDIT

•

Provide independent

assurance on the risk

programme, testing

ofkey controls and risk

response plans for

significant risks

BOTTOM-UP

Identification,

assessment and

mitigation of

riskatbusiness

unitand

functionallevel

RISK OWNERSHIP

BUSINESS UNITS

•

Identify and assess risks

•

Respond to risks

•

Monitor risks and

riskresponse

•

Ensure operating

effectiveness of

keycontrols

SUPPORT FUNCTIONS

•

Provide guidance/

support to teams within

the business units

managing risk

LANDSEC ANNUAL REPORT 202540

STRATEGIC REPORT

MANAGING RISK CONTINUED

IDENTIFYING AND EVALUATING RISKS

Landsec’s risk management approach

beginswith teams, senior management

andstakeholders across the business who

work alongside a risk champion network

andthe Head of Risk and Controls to identify

strategic, operational, legal, and compliance

risks in their respective areas. These risks

are assessed using a risk scoring matrix,

which evaluates the likelihood of each risk

materialising and its potential impact.

The evaluation process considers both gross

risk (before mitigating actions) and net risk

(after mitigating actions and controls). The

difference between these scores provides

visibility into the extent to which we are

able to control the risk.

The results are consolidated into risk registers,

and from these assessments we identify

principal risks (current risks with relatively

high impact and probability). These principal

risks are reviewed by the ELT both individually

– with the designated risk owner – and

collectively, at a minimum of once every

six months. The Audit Committee examines

principal risks biannually, providing

recommendations to the Board for further

review and inclusion in external reporting.

Principal risks are also reviewed by the

business and the Board during Landsec’s

annual strategic and business planning

processes. As part of these processes, we

assess risk scenarios that could threaten

our business model, future performance,

solvency, liquidity, or the Group’s strategic

objectives, with findings presented to the

Board for consideration. We use modelling

toanalyse the impact of these scenarios

under varying degrees of stress, enabling

usto consider interdependencies and test

plausible mitigation plans. This approach

allows us to better understand the impact

ofour plans on our risk appetite and principal

risks from both a near-term and long-term

perspective. We also track emerging risks

(risks where the extent and implications

arenot yet fully understood or are increasing

over time).

The risk waterfall on page 41 outlines

theprincipal risks faced by Landsec, the

appetite for these risks and the gross and

netrisk ratings.

MANAGEMENT AND ASSURANCE OF RISKS

Landsec employs a Three Lines of Defence risk

model to structure its risk management and

assurance activities. The First Line of Defence

comprises risk and control owners, who are

responsible for the day-to-day management

of their respective risks. They also ensure that

the controls in place to manage these risks

function effectively. For the principal risks,

individual members of the ELT are designated

as responsible for each risk.

The Second Line of Defence encompasses

the risk and compliance functions, which

establish the policies and standards for

riskmanagement across the business,

aswellas the internal assurance systems

designed to challenge the business to ensure

that risks are being managed effectively.

Forums such as ELT meetings, business unit

Excos and other management teams play

akey role in this process. The principal

operational risks, including health and safety,

and information security and cyber threat

aremanaged by dedicated second-line

functions that define and implement policy

and mitigating controls, and undertake

assurance activities.

The Head of Risk and Controls oversees

Landsec’s Key Controls Toolkit which

comprises a set of clearly defined controls

self-certified by business control owners

on a quarterly basis. This ensures ongoing

assurance and coverage of critical risk areas.

The internal control forum reviews the

outcomes of this process, escalating matters

to the ELT or the Audit Committee as

necessary. Regular control papers, presented

at each Audit Committee meeting, assist

inevaluating the control environment and

theadequacy of assurance activities.

Additionally, the Committee receives a

summary report outlining key second and

third-line assurance activities, including

internal audits, agreed actions and the status

of open risk mitigation actions.

Landsec’s Third Line of Defence is primarily

delivered through Internal Audit, which

provides independent assurance on key

controls and processes to both management

and the Audit Committee. An annual planning

exercise is carried out to identify the areas for

inclusion on a risk basis, including the areas

where the impact of controls is greatest,

i.e. where there is a relatively high inherent

risk and relatively low residual risk. This helps

to focus the work of Internal Audit and other

assurance providers.

For more information refer to the Audit Committee

Report on pages 64-67.

LANDSEC ANNUAL REPORT 2025 41

PRINCIPAL RISKS AND UNCERTAINTIES

Our principal risks consist of the ten most

signifi cant Group risks and are categorised

inaccordance with their strategic and

operational focus. We have fi ve strategic

andfi ve operational risks. The strategic risks

relate to the macroeconomic environment;

our key markets – offi ce and retail; capital

allocation; and development. The operational

risks are cyber threat; change projects;

health and safety; people and skills; and

climate change.

Our principal risks are refl ected in the risk

waterfall below. The risk waterfall allows

us to show the gross risk score (without

mitigations applied) alongside the net risk

score (the rating following consideration

ofthe mitigations in place). These scores

forboth gross and net risk are calculated

asafunction of impact and likelihood.

The box on each risk refl ects the Group’s risk

appetite for these risks. The appetite range

isa view which outlines the desired risk the

Group wishes to take in respect of each risk.

Appetite ranges are: ‘Open’ (where we are

focused on maximising opportunities);

‘Flexible’ (willing to consider all options);

‘Cautious’ (where we are willing to tolerate

adegree of risk); ‘Minimalist’ (preferring

options with low inherent risk); and ‘Averse’

(where we avoid risk and uncertainty).

Where the net risk sits within the appetite

box, the risk is considered to be managed

within appetite. At year-end, there are no net

risks currently above appetite. The tables on

the following pages describe each principal

risk in detail, including mitigating controls,

KRIs and changes in the year.

Our principal risks and uncertainties are

monitored throughout the year, to assess

ourchanging risk landscape, enabling

theBoard to make informed decisions.

PRINCIPAL RISKS

Macroeconomic

outlook

Offi ce occupier

market

Retail and

hospitality

occupier market

Capital

allocation

Development

Information

security and

cyber threat

Change projects

fail to deliver

Health and safety

People and skills

Climate change

transition

Residential

OPEN

CRITICAL

SIGNIFICANT

FLEXIBLECAUTIOUS

MODERATE

MINIMALIST

MINOR

AVERSE

2024

G,N

2024

Residential

Strategic risk Operational risk Future principal risk

Gross risk

Net risk

Appetite range Gross to net range per 2024 Annual Report

LANDSEC ANNUAL REPORT 202542

STRATEGIC REPORT

PRINCIPAL RISKS AND UNCERTAINTIES

CONTINUED

1 MACROECONOMIC OUTLOOK EXECUTIVE RESPONSIBLE | MARK ALLAN APPETITE: FLEXIBLE

Changes in the macroeconomic environment

result in reduction in demand for space or

deferral of decisions by retail and office

occupiers. Due to the length of build

projects,the prevailing economic climate

atinitiation may be vastly different from

thatat completion.

EXAMPLE KRIs

•

UK Gross Domestic Product

•

UK household spending levels

•

Inflation rates – CPI & RPI

•

Interest rates

•

Business confidence

•

Loan to value ratio

MITIGATION

•

Key risk indicators monitored

•

Scenario-based modelling of plausible

economic trajectories

•

Market Monitor packs analysing

macroeconomic, political and market-risk

factors prepared for Board meetings

•

Group monthly management information

packs include business unit review of sector

and market risk

CHANGE IN YEAR | NO CHANGE

We are mindful of the disruption to global

economic conditions caused by the imposition

of US trade tariffs in recent months, and the

overall risk remains high. However, as a purely

UK-focused business, with a strong customer

base, we have yet to see any impact to our

operational performance.

Long-term interest rates and higher finance

costs will remain a risk area for our business,

but we maintain a positive outlook for our

operational performance, and this should

driveearnings growth and underpin valuations

going forward.

The risk score has remained stable over the

period and continues to be within the defined

risk appetite.

2 OFFICE OCCUPIER MARKET EXECUTIVE RESPONSIBLE | MARCUS GEDDES APPETITE: FLEXIBLE

Structural changes in customer expectations

leading to changes in demand for office space

and the consequent impact on income and

asset values. Further, the risk encompasses

the inability to identify or adapt to changing

markets in a timely manner.

EXAMPLE KRIs

•

Percentage of lease expiries over our

five-yearplan

•

Void rates across our portfolio

•

Like-for-like rental income metrics

•

Customer and space churn

•

Office take-up and development pipeline

MITIGATION

•

Customer relationship management monitor

our customer base

•

Office leadership team review KRIs monthly

•

Management accounts monitoring key

riskindicators

•

ESG programme to decarbonise office

portfolio and strengthen prime property

portfolio by meeting changing

occupierneeds

•

Customer satisfaction measured regularly

•

Forward-looking market intelligence

reviewedregularly

•

Market-led demand and customer

expectations for environmentally sustainable

office space are closely monitored

•

Strict credit policy and process and review

ofcustomers at risk

•

Future of Work forum hosted by our Insight

team, examining disruption themes and

megatrends in ways of working

CHANGE IN YEAR | INCREASED

The office occupancy market outlook remains

positive, supported by robust demand in a

constrained market and an increasing social

preference for office working.

However, we are mindful of the significant

leasing activity associated with our two

existing office projects due to complete

withinthe next 12 months. We would expect

leasing activity to increase as we approach

thecompletion date of these developments.

As a result, whilst the gross risk has remained

stable, the net risk is assessed to have risen

atyear-end. Nevertheless, the residual risk

remains within the defined risk appetite.

3 RETAIL AND HOSPITALITY OCCUPIER MARKET EXECUTIVE RESPONSIBLE | BRUCE FINDLAY APPETITE: FLEXIBLE

Structural changes in customer expectations

leading to changes in demand for retail or

hospitality space and the consequent impact

on income and asset values.

EXAMPLE KRIs

•

Customer footfall

•

Retailer sales

•

Portfolio void rates

•

Percentage of lease expiries over five years

•

Like-for-like rental income metrics

•

Customer credit risk and tenant

counterpartyrisk

MITIGATION

•

Management accounts monitoring key

riskindicators

•

Customer relationship management

monitors customer base performance

•

Data-led development of asset and sector

strategies, promoting proactive leasing

•

Brand Account, Asset Management and

Guest Experiences teams established

•

Customer satisfaction surveys

•

Credit policy and process defines acceptable

level of credit risk

•

Finance reviews market data on customers

atrisk and agrees the best plan of action

CHANGE IN YEAR | NO CHANGE

We are mindful that the macroeconomic

environment continues to be challenging

forthe wider retail and hospitality market.

However, our strategy focuses on the best

quality assets in the strongest locations

forwhich the outlook remains positive.

Our Strategic Plan and Business Plans

outlineinitiatives to invest across our existing

portfolio and continue to grow our like-for-like

net rental income, with the expectation that

we will bring the risk within appetite.

LANDSEC ANNUAL REPORT 2025 43

4 CAPITAL ALLOCATION EXECUTIVE RESPONSIBLE | MARK ALLAN APPETITE: FLEXIBLE

Capital allocated to specific assets, sectors

orlocations does not yield the expected

returns, i.e. we are not effective in placing

capital or recycling.

EXAMPLE KRIs

•

Committed development pipeline

•

Portfolio liquidity

•

Loan to value

•

Headroom over development capital

expenditure

•

Speculative development, pre-development

and trading property risk exposure

•

Group hedging

MITIGATION

•

Regular monitoring of capital disciplines

andKRIs by business unit Excos, Capital

Allocation and Performance Review

meetingsand PLC Board

•

Detailed market and product analysis

toenable optimal investment decisions

•

Rigorous and established governance and

approval processes through the Investment

Committee and PLC Board

•

Investment Appraisal Guidelines define the

key investment criteria, the risk-assessment

process, key stakeholders and the delegations

of authority

•

Stress-testing of scenarios as part of

decision-making

CHANGE IN YEAR | INCREASED

Following the acquisition of Liverpool ONE,

leverage is towards the top end of our target

range and our continued focus on disposal

activity – including £0.8bn of non-core assets

– is expected to reduce it in line with our

Strategic and Business Plans.

As these disposals take place the net risk is

expected to reduce. Nevertheless, the residual

risk remains within the defined risk appetite.

5 DEVELOPMENT EXECUTIVE RESPONSIBLE | MIKE HOOD APPETITE: FLEXIBLE

We may be unable to generate expected

returns as a result of changes in the occupier

market for a given asset during the course

ofthe development, or cost or time overruns

on the scheme.

EXAMPLE KRIs

•

Take-up level for offices

•

Tender-price inflation

•

Monitor build-to-sell and build-to-rent ratios

to determine phasing approach

MITIGATION

•

Development strategy addresses risks that

could adversely affect underlying income

andcapital performance

•

A detailed appraisal is undertaken by the

Investment Committee before committing

toa scheme

•

Financial modelling and scenario-planning

todetermine expected yields

•

Tested project-management approach

andhighly experienced development team

•

Control processes over key risk areas

including: project organisation and reporting;

financial management; quality; schedule;

change; risk and contingency management;

health and safety; and project objectives

•

Each project is supported by internal

stakeholders in Operations, Sustainability

and Tech, as evidenced through key

monitoring reviews and gateway sign-offs

•

Strong community involvement in the design

process for our developments

•

Early engagement and strong relationships

with planning authorities

CHANGE IN YEAR | INCREASED

The market risk is considered to have

marginally increased during the year due to the

persistence of build cost inflation, continued

challenges in supply chains and an increase in

exit yields in recent years which are putting

pressure on development returns.

However, as the majority of the development

costs of our committed schemes are fixed

and/or nearing completion, this risk is primarily

a consideration for our future development

projects where we have the flexibility to

manage the scale and timing of our activity.

The risk is considered to be within risk appetite.

LANDSEC ANNUAL REPORT 202544

STRATEGIC REPORT

PRINCIPAL RISKS AND UNCERTAINTIES

CONTINUED

6 INFORMATION SECURITY AND CYBER THREAT EXECUTIVE RESPONSIBLE | NISHA MANAKTALA APPETITE: CAUTIOUS

Data loss or disruption to business processes,

corporate systems or building-management

systems resulting in a negative reputational,

operational, regulatory or financial impact.

EXAMPLE KRIs

•

Speed of threat and vulnerability detection

(against agreed penetration testing/external

assurance schedule)

•

Speed of threat and vulnerability resolution

•

Number of major cyber incidents or data-loss

events

•

Incident Response and Recovery Plan

reviewed and tested

•

Completion rates on cyber security and data

protection training

•

Number of critical, strategic or infosec

partners without current cyber security

diligence

MITIGATION

•

IT security policies set out our standards

forsecurity and penetration testing,

vulnerability and patch management,

datadisposal and access control

•

Quarterly assessment of key IT controls

•

Monitored mandatory cyber security and

GDPR training

•

Third-party IT providers subject to

information-security vendor assessment

•

Close working with IT service partners to

manage risk and improve technical standards

•

Defined technical IT standards for all

buildingsystems

•

Extensive use of cloud-based systems

•

Business continuity, crisis management and

IT disaster-recovery plans in place, including

regular testing

•

Established penetration testing and

vulnerability-management across our

ITestate

CHANGE IN YEAR | NO CHANGE

The cyber threat landscape is always evolving,

with sophisticated ransomware attacks, data

breaches and AI-driven scams becoming

increasingly common. With hackers exploiting

vulnerabilities in cloud systems, supply chains

and employee behaviours, Landsec must

remain vigilant, and we continue to focus on

investing in operational strengthening to

improve processes and controls in this area.

The net risk remains within the overall Cautious

risk appetite alignment for operational risks.

7 CHANGE PROJECTS FAIL TO DELIVER EXECUTIVE RESPONSIBLE | ELT APPETITE: CAUTIOUS

Landsec is engaging in a number of important

internal change programmes. These projects

aim to deliver important benefits, both

operationally and culturally. There is a risk

that these projects fail to deliver the benefits

identified in a timely manner and to budget.

EXAMPLE KRIs

•

Key project milestones missed

•

Number of projects operating without

appropriate governance

•

Number of success criteria achieved at

post-implementation reviews and audits

MITIGATION

•

ELT and Board oversight

•

Project governance methodology

•

Qualified project managers used on all

largeprojects

•

Benefits cases documented and agreed

•

Company-wide communication of Project

Major supported by regular town halls

andSenior Leadership Team engagement

•

Regular reporting of project progress to

project boards

•

Alignment of Finance and UK Governance

regime workstreams

CHANGE IN YEAR | NO CHANGE

Following the implementation of two major

change projects during the year – including

theupgrade and improvement of our financial

system, the gross risk is considered to have

reduced as our focus shifts to embedding and

optimising these change programmes within

our structure.

The net risk has remained stable and within

ourCautious risk appetite alignment for

operational risks.

8 HEALTH AND SAFETY EXECUTIVE RESPONSIBLE | MARINA THOMAS APPETITE: CAUTIOUS/MINIMALIST

Failure to identify, mitigate or react

effectively to major health or safety

incidents, leading to:

•

Serious injury, illness or loss of life

•

Criminal or civil proceedings or formal

enforcement action

•

Loss of stakeholder confidence

•

Delays to building projects and access

restrictions to our properties, resulting in

lossof income

•

Inadequate response to regulatory changes

•

Reputational impact

EXAMPLE KRIs

•

Number of reportable health and safety

incidents and training completion rates

•

Control reviews and follow up to completion

•

Employee engagement scores on

safetyculture

MITIGATION

•

Regular reviews by ELT and the Board

•

Health and safety management system

accredited to ISO 45001 standard

•

Fire-safety management system accredited

to the BS 9997 standard

•

Task force of internal experts and

independent fire-engineering firm

progressing cladding project quickly

•

Internal audits and an annual programme

ofdata-led and second-line audits by the

Health and Safety team

•

Legal and best practice compliance

monitored in real time

•

Strict standards applied to the selection

ofkey service and construction partners;

assessed by KPIs and regular reviews

CHANGE IN YEAR | NO CHANGE

This year, we successfully maintained our

ISO45001 and BS 9997 certifications through

independent audits, reflecting our

commitment to safety and compliance.

Ourfocus remained on reducing significant

occupational-safety risks and prioritising

firesafety to meet legislative requirements,

including the Building Safety Act.

The likelihood of a major health, safety or

security incident has remained constant

throughout the year and within appetite.

LANDSEC ANNUAL REPORT 2025 45

9 PEOPLE AND SKILLS EXECUTIVE RESPONSIBLE | KATE SELLER APPETITE: CAUTIOUS

Inability to attract, retain and develop the

right people and skills to meet our strategic

objectives, grow enterprise value and meet

shareholder expectations.

EXAMPLE KRIs

•

Employee turnover levels

•

High-potential employee turnover

•

Employee engagement score

•

Succession planning up to date

•

Time to hire

MITIGATION

•

Executive remuneration and long-term

incentive plans in place, which are

benchmarked, overseen by the Remuneration

Committee and aligned to the Group and

individual performance

•

Regular review of succession plans for senior

and critical roles

•

Remuneration plans for other key roles are

benchmarked annually

•

The talent-management programme

identifies high-potential individuals

•

Clear employee objectives and

developmentplans

•

Health and Wellbeing Statement of Practice

•

Regular employee engagement surveys

CHANGE IN YEAR | INCREASED

It is considered that this risk has temporarily

increased following the integration of Liverpool

ONE and MediaCity and the evolution of our

strategy, however it is expected to return to

2024 levels as our Strategy and Business Plans

are embedded during the financial year.

The risk remains within our risk appetite.

10 CLIMATE CHANGE TRANSITION EXECUTIVE RESPONSIBLE | CHRIS HOGWOOD APPETITE: CAUTIOUS

Climate change risk has two elements:

•

Our near and long-term SBTs by 2030 and

2040 are not met in time or are achieved

atasignificantly higher cost than expected,

leading to regulatory, reputational and

commercial impact

•

Failure to ensure all new developments are

net zero in construction and operation, as

defined by the emerging net zero standard

for assets, leads to an inability to service

market demand for high-quality assets that

meet the highest environmental and

wellbeing standards

EXAMPLE KRIs

•

Energy intensity

•

Renewable electricity

•

EPC ratings

•

Operational carbon emissions

•

Embodied carbon for new developments

•

Portfolio natural-disaster risk

MITIGATION

•

Climate risks and opportunities for potential

acquisitions assessed by our Responsible

Property Investment Policy and ESG

acquisition appraisal framework

•

Developments designed to be resilient

toclimate change and net zero both in

construction and operation

•

All properties comply with ISO 14001 and

ISO50001 Environmental and Energy

Management System

•

Continued monitoring of portfolio exposure

to physical climate risks, and we review

mitigation actions for sites located in

high-risk areas

•

Early engagement with supply chain for

procurement of ASHPs and solar PVs ensuring

appropriate due diligence

CHANGE IN YEAR | NO CHANGE

Despite no change in the net risk position, gross

risk has decreased due to targeted portfolio

improvements, such as air source heat pump

feasibility studies and our plans to scale down

office developments which we anticipate will

reduce our exposure to embodied carbon.

Operational and supply chain challenges

affecting sustainable resources remain under

review, with the net risk position stable and just

below our Cautious risk appetite target.

11 RESIDENTIAL

As our Strategic Plan begins to take shape, we anticipate the inclusion of a new strategic principal risk for the residential market, likely to

be within our ‘Flexible’ risk appetite. Over time, our market and operational risk will increase as we progress planned projects and pursue

acquisitions of stabilised assets.

Not a principal risk yet.

LANDSEC ANNUAL REPORT 202546

STRATEGIC REPORT

GOING CONCERN AND VIABILITY

GOING CONCERN

Given the impact of international and

domestic political and economic events over

the course of the year, the Directors have

continued to place additional focus on the

appropriateness of adopting the going

concern assumption in preparing the

financial statements for the year ended

31 March 2025. The Group’s going concern

assessment considers changes in the Group’s

principal risks (see pages 41-45) and is

dependent on a number of factors, including

our financial performance and continued

access to borrowing facilities. Access to our

borrowing facilities is dependent on our

ability to continue to operate the Group’s

secured debt structure within its financial

covenants, which are described in note 23.

In order to satisfy themselves that the

Grouphas adequate resources to continue

asa going concern for the foreseeable future,

the Directors have reviewed the base case,

downside and reverse stress test models, as

well as a cash flow model which considers

theimpact of pessimistic assumptions

ontheGroup’s operating environment

(the‘mitigated downside scenario’).

Thismitigated downside scenario reflects

unfavourable macroeconomic conditions,

adeterioration in our ability to collect rent

and service charge from our customers and

removes uncommitted acquisitions, disposals

and developments.

The Group’s key metrics from the mitigated

downside scenario as at the end of the going

concern assessment period, which covers the

16 months to 30 September 2026, are shown

below alongside the actual position at

31 March 2025.

KEY METRICS

TABLE 17

31 March

2025

Mitigated

downside

scenario

30 September

2026

Security Group LTV 41.9% 45.8%

Adjusted net debt £4,304m £4,769m

EPRA net tangible

assets

£6,530m £5,940m

Available financial

headroom

£1.1bn £0.7bn

In our mitigated downside scenario, the

Group has sufficient cash reserves, with

ourSecurity Group LTV ratio remaining less

than 65% and interest cover above 1.45x,

foraperiod of 16 months from the date of

authorisation of these financial statements.

Under this scenario, the Security Group’s

asset values would need to fall by a further

29% from the sensitised values forecasted at

30 September 2026 to be non-compliant with

the LTV covenant. This equates to a 36% fall

in the value of the Security Group’s assets

from the 31 March 2025 values for the LTV

toreach 65%. The Directors consider the

likelihood of this occurring over the going

concern assessment period to be remote.

The Security Group also requires earnings

before interest of at least £259m in the full

year ending 31 March 2026 and at least £146m

in the six months ending 30 September 2026

for interest cover to remain above 1.45x in the

mitigated downside scenario, which would

ensure compliance with the Group’s covenant

through to the end of the going concern

assessment period. Security Group earnings

post year end 31 March 2025 are well above

thelevel required to meet the interest cover

covenant for the year ended 31 March 2026.

The Directors do not anticipate a reduction in

Security Group earnings over the period ending

30 September 2026 to a level that would result

in a breach of the interest cover covenant.

The Directors have also considered a reverse

stress-test scenario which assumes no further

rent will be received, to determine when our

available cash resources would be exhausted.

Even under this extreme scenario, although

breaching the interest cover covenant, the

Group continues to have sufficient cash

reserves to continue in operation throughout

the going concern assessment period.

Based on these considerations, together

withavailable market information and the

Directors’ knowledge and experience of the

Group’s property portfolio and markets, the

Directors have adopted the going concern

basis in preparing these financial statements

for the year ended 31 March 2025.

VIABILITY STATEMENT

THE VIABILITY ASSESSMENT PERIOD

The Directors have assessed the viability of

the Group over a five-year period to March

2030, taking account of the Group’s current

financial position and the potential impact

ofour principal risks.

PROCESS

Our financial planning process comprises

abudget for two financial years and the

strategic plan. Generally, the budget has

agreater level of certainty and is used to

setnear-term targets across the Group.

Thestrategic plan is less certain than the

budget but provides a longer-term outlook

against which strategic decisions can

bemade.

The financial planning process considers the

Group’s profitability, capital values, gearing,

cash flows and other key financial metrics

over the plan period. These metrics are

subject to sensitivity analysis, in which a

number of the main underlying assumptions

are flexed and tested to consider alternative

macroeconomic environments. Additionally,

the Group also considers the impact of

potential structural changes to the business

in light of varying economic conditions,

suchas significant additional sales and

acquisitions or refinancing. These assumptions

are then adapted further to assess the

impact of considerably worse macroeconomic

conditions than are currently expected,

whichforms the basis of the Group’s

‘Viabilityscenario’.

The Directors outline their assessment

oftheGroup’s ability to operate as a

goingconcern and its long-term viability,

taking into account the impact of the

Group’s principal risks.

LANDSEC ANNUAL REPORT 2025 47

Given the recent unfavourable macroeconomic

conditions in which the Group has been

operating, additional stress-testing has been

carried out on the Group’s ability to continue

in operation under extremely unfavourable

operating conditions. While the assumptions

we have applied in these scenarios are

possible, they do not represent our view of

the likely outturn. The Directors have also

considered reverse stress-test scenarios

including one in which we are unable to

collect any rent for an extended period of

time. The results of these tests help to inform

the Directors’ assessment of the viability of

the Group.

KEY RISKS

The table below sets out those of the Group’s

principal risks (see pages 41-45 for full details

of the Group’s principal risks) that could

impact its ability to remain in operation and

meet its liabilities as they fall due and how

we have taken these into consideration when

making our assessment of the Group’s viability.

PRINCIPAL RISK VIABILITY SCENARIO ASSUMPTION

Macroeconomic outlook

Changes in the macroeconomic

environment result in reduction in demand

for space or deferral of decisions by retail

and office occupiers.

Due to the length of build projects, the

prevailing economic climate at initiation

may be vastly different from that at

completion.

•

Declines in capital values and outward

yield movements across all assets within

the portfolio

•

Additional impact of a higher inflationary

market captured within costs

•

No issuance of additional fixed term

bonds through the assessment period

•

Additional impact of increased interest

rates on servicing debt

Office occupier market

Structural changes in customer

expectations leading to changes in

demand for office space and the

consequent impact on income and

assetvalues.

•

Reduced demand leads to increased void

periods, negative valuation movements

and downward pressure on rental values

over the whole assessment period

Retail and hospitality occupier market

Structural changes in customer

expectations leading to changes in

demand for retail or hospitality space and

the consequent impact on income and

asset values.

•

Increased customer failures lead to

increased void periods, negative

valuation movements and downward

pressure on rental values over the period

Capital allocation

Capital allocated to specific assets, sectors

or locations does not yield the expected

returns i.e. we are not effective in placing

capital or recycling.

•

Capital that is uncommitted to the

portfolio has been removed

•

Any uncommitted budgeted acquisitions,

disposals and developments do not take

place due to reduced liquidity

Development

We may be unable to generate expected

returns as a result of changes in the

occupier market for a given asset during

the course of the development, or cost

ortime overruns on the scheme.

•

A reduction in recognised development

profits for committed schemes that will

continue to be advanced over the viability

assessment period

We considered our other Principal Risks, including climate change transition, and their possible

impact on our assessment of the Group’s viability. We concurred that as we have fully costed

and committed to invest £135m to achieve our SBT by 2030, this mitigated the climate change

transition risk sufficiently.

IMPACT ON KEY METRICS

We have assessed the impact of these

assumptions on the Group’s key financial

metrics over the assessment period, including

profitability, net debt, loan-to-value (LTV)

ratios and available financial headroom.

The viability scenario represents a contraction

in the size of the business over the five-year

period considered, with the Security Group

LTV at 50.0% in March 2030, its highest point

in the assessment period. The Group

maintains a positive financial headroom from

March 2025 through to September 2026 and

the Group will only be required to secure new

funding from April 2027. The Directors expect

the Group to be able to secure new funding,

given the strong relationships and engagement

the Group has with its existing banking group

and on the basis of the recent bond issuances

in March 2023, March 2024 and September

2024 that were well supported by investors.

KEY METRICS

TABLE 18

Actuals

31 March

2025

Mitigated

downside

scenario

31 March

2030

Security Group LTV 41.9% 50.0%

Adjusted net debt £4,304m £4,837m

EPRA net tangible

assets per share

874p 705p

Available financial

headroom

£1.1bn (£2.8bn)

CONFIRMATION OF VIABILITY

Based on this assessment the Directors have

a reasonable expectation that the Group will

continue in operation and meet its liabilities

as they fall due over the period to March 2030.

LANDSEC ANNUAL REPORT 202548

STRATEGIC REPORT

NON-FINANCIAL AND SUSTAINABILITY

INFORMATIONSTATEMENT

TOPIC OUR POLICIES AND STANDARDS THAT GOVERN OUR APPROACH

WHERE INFORMATION CAN

BE FOUND IN THIS REPORT

ENVIRONMENTAL

MATTERS AND

CLIMATE-RELATED

FINANCIAL DISCLOSURE

REQUIREMENTS

• Sustainability Policy: sets out our sustainability vision and associated

commitments as detailed in our Build well, Live well, Act well strategy

• Environment and Energy Policy: how we manage our business activities with

minimal impact on the natural environment and strive to reduce our climate

change impact

• Materials Brief: framework guide for material selection across our

developments and portfolio projects, supporting the transition to a circular

economy. It also sets out the materials we prohibit use of in our construction

activities based on health impacts, responsible sourcing, embodied carbon

impact and resource efficiency considerations

• Responsible Property Investment Policy: our commitment and approach to

managing aspects of sustainability throughout the acquisition and disposal

of assets

• Sustainable Development Toolkit: translates our sustainability vision into

aguide to ensure that we design and develop our new schemes and

refurbishments sustainably

• Nature Strategy: details our approach to incorporating nature and green

spaces into our business activities as a real estate company who creates

valueby buying, developing, managing and selling properties

• Build well, Live well, Act well site action plans: plans that guide our site

teamsto operate and manage our standing assets sustainably, in line with

our company-wide Environmental and Energy Management System, certified

to ISO 14001 and ISO 50001

— BUILD WELL

ON PAGES 28-29

— TCFD STATEMENT

ON PAGES 33-37

— SECR REPORTING

ON PAGES 160-162

EMPLOYEES

• Employee Code of Conduct: sets out how we behave internally and

externally, in line with our purpose, values and behaviours

• Equal Opportunities Policy: how we treat our employees, based on

meritandability, in a fair and transparent way, building a diverse and

inclusive workplace

• Harassment and Bullying Policy and Procedure: our commitment to stop

andprevent behaviour that causes offence or distress in the workplace

• Health and Safety Policy: how we manage health and safety throughout

ouroperations and assets

• Health and Wellbeing Policy: investing in improving the health and wellbeing

of our employees, encouraging a healthy work-life balance

• Mental Health First Aider Policy: sets out how we manage our trained mental

health support network

— OUR PEOPLE AND CULTURE

ONPAGES 25-27

— ACT WELL ON PAGE 32

RESPECT FOR

HUMAN RIGHTS

• Human Rights and Modern Slavery Policy: our commitment and core

principles to respect the human rights of all those who work for Landsec

andon our behalf

• Modern Slavery Statement: we are committed to ensuring that all work

inoursupply chain associated with our projects and contracts is voluntary

and fair, and that the health, safety and security of all workers is a priority

• Supply Chain Commitment: our commitment to build long-lasting

partnerships with suppliers who uphold the same ethical principles as us

andwork together for a sustainable future for all

• Right To Work Policy: provides best practice guidance to those assigned

responsibility for performing right to work checks across our supply chain

— DIRECTORS’ REPORT

ONPAGES80-82

— ACT WELL ON PAGE 32

This section of our Strategic Report constitutes Landsec’s

Non-financial and Sustainability Information Statement.

Thisis intended to help stakeholders understand our position

on key non-financial matters. The table below highlights our

policies and standards and where you can find more

information in this report.

You can find our policies on our website:

landsec.com/sustainability/governance-policies, landsec.com/about/corporate-governance.

LANDSEC ANNUAL REPORT 2025 49

TOPIC OUR POLICIES AND STANDARDS THAT GOVERN OUR APPROACH

WHERE INFORMATION CAN

BE FOUND IN THIS REPORT

SOCIAL MATTERS

• Diversity and inclusion: our strategy, Diverse Talent, Inclusive Culture

andInclusive Places, sets out our vision to design, develop and manage

moreinclusive, commercially successful places through attracting and

nurturing diverse talent within a culture that enables everyone to reach

theirfull potential

• Board Diversity Policy: sets out the specific responsibilities of the Board in

relation to the diversity of its membership and its role in setting a culture

ofinclusive leadership from the top

• Community Charter: our commitment to engage our communities

throughout the development process and beyond

• Stakeholder Engagement Policy: outlines our commitment and approach

toinclusive stakeholder engagement

• Inclusive Design Principles: set out a framework for incorporating inclusive

design into our development projects including best practice guidance and

case studies on how to deliver the three key elements of inclusive design

— OUR PEOPLE AND CULTURE

ON PAGES 25-27

— GOVERNANCE REPORT –

BOARDDIVERSITY ON PAGE 58

— OUR STAKEHOLDERS

ON PAGES 22-24

— LIVE WELL ON PAGE 31

ANTI-BRIBERY

ANDCORRUPTION

• Anti-Bribery and Corruption and Ethical Business Policy: we have a zero

tolerance for any form of bribery or corruption

• Conflicts of interest and anti-competitive behaviours: our employees

mustact in the best interests of the Company and not make decisions for

personal gain

• Speak Up Policy: how we encourage those who work for Landsec and on our

behalf to ask questions, raise concerns or report incidents of any impropriety

or wrongdoing

• Sustainable Procurement Guidance: sets out six procurement principles to

ensure that we procure goods and services responsibly, securely, timely,

smartly, ethically and positively in accordance with the law and in

compliance with relevant legislation

• Tax strategy: we act with integrity and excellence when dealing with taxes

and engage with government for a fair taxation system

• Financial Crime Policy: sets out how we protect our business, our people and

our clients and their customers from being victims of financial crime

(including fraud) and what can be expected of us

— ACT WELL ON PAGE 32

— REPORT OF THE AUDIT COMMITTEE

ON PAGES 62-67

DESCRIPTION OF

PRINCIPAL RISKS

ANDIMPACT OF

BUSINESS ACTIVITY

• We consider both external and internal risks, evaluate them, assess the

impact and put in place mitigating actions and controls

— MANAGING RISK ONPAGES 38-40

— PRINCIPAL RISKS AND

UNCERTAINTIES ON PAGES 41-45

— REPORT OF THE AUDIT COMMITTEE

ON PAGES 62-67

DESCRIPTION OF

BUSINESS MODEL

• To create value, we buy, develop, manage and sell property, drawing on a

range of financial, physical and social resources

— OUR BUSINESS MODEL

ON PAGE 7

NON-FINANCIAL

KEY PERFORMANCE

INDICATORS

• In addition to our financial performance metrics, we set ourselves a range of

KPIs for the year including sustainability targets

— KEY PERFORMANCE INDICATORS

ON PAGE 10

This Strategic Report was approved by the Board of Directors on 15 May 2025 and signed on its behalf by:

MARK ALLAN, CHIEF EXECUTIVE

LANDSEC ANNUAL REPORT 202550

GOVERNANCE

DEAR SHAREHOLDER

I am pleased to introduce

thegovernance section for

the year ended 31 March 2025.

As Chair of Landsec, I’m pleased to present

our Corporate Governance Report. During

theyear our Board has continued to advance

the long-term, sustainable success of the

Company. Our effective governance processes

underpin Board activities and ensure we

effectively consider the opportunities, risks

and uncertainties that our business faces.

THE YEAR IN REVIEW

Given the continually evolving market

conditions and macroeconomic backdrop

since our last strategy re-set in 2020, this year

the Board’s most significant activity was to

undertake a detailed review of our strategy.

The conclusions of this review were presented

at our Capital Markets Day event in February

2025, where we set out our clear vision for

ahigher income, higher growth business

by2030: rebalancing the mix of our portfolio

by reducing our exposure to development

andincreasing our residential portfolio.

Thisshould result in lower risk and less cyclical

portfolio and increased earnings per share

upside potential. Strategic and execution risk

and the impacts of the portfolio changes on

our workforce were also reviewed in detail by

the Board.

Our Board activities during the year are described

inmore detail on page 59.

BOARD SUCCESSION AND DIVERSITY

The Board and Nomination Committee have

continued to focus on succession planning

and Board composition.

During the year, as well as the retirement

ofEdward Bonham Carter in July 2024, we

announced further changes in 2025 to our

Board: the appointment of Baroness Louise

Casey on 1 January, Michael Campbell on

1 Mayand Anne Richards on 1 September 2025.

Madeleine Cosgrave will also retire from the

Board at our AGM in July 2025. We continue

toreview and evolve our skills matrix to ensure

we have the skills needed on our Board.

Further details of our Board changes can be found

inour Nomination Committee Report on page 61.

We remain committed to having a Board

thatis diverse in all respects. As at the date

of this report we comply with the UK Listing

Rules requirements relating to diversity:

(i) 45% of our Board are women (also

meeting the FTSE Women Leaders target)

(ii) two of our senior Board roles are held by

women (CFO and SID) and

(iii) we have three Directors on the Board

from minority ethnic backgrounds

(alsomeeting Parker Review targets)

Our progress on diversity and inclusion is described

inmore detail on pages 26-27.

STAKEHOLDER ENGAGEMENT

Landsec’s success is dependent on the

Boardtaking decisions for the benefit of

ourshareholders and in doing so having

regard to all our stakeholders.

Each year we write to our larger shareholders,

offering them the opportunity to meet

privately and discuss their thoughts on the

Company and the wider market with the

Chair or the Senior Independent Director.

I had a number of these meetings during

the year and valuable feedback from those

meetings was discussed by the Board.

Our stakeholder engagement activity is described

inmore detail on pages 22-24.

CULTURE

The Board understands the importance

of culture and setting the tone of the

organisation from the top to ensure it is

embedded throughout Landsec. Our culture

is a key component for continuing to make

progress with our strategic plans. The aim

of our people strategy is to create a high-

performing and inclusive culture.

During the year the Board has monitored our

culture with regular updates from our Chief

People Officer on our people, our culture,

talentand succession planning, diversity and

inclusion activities and engagement survey,

and direct engagement activities with the

workforce, overseen by our Non-executive

Director for Employee Engagement. This

included a focus on our high performance

culture work and understanding the impacts of

the strategy refresh on our culture and people.

Our employee engagement activity is described

inmore detail on page 25.

BOARD EVALUATION

This year our Board evaluation was externally

facilitated by Board Alchemy. The process

involved questionnaires, interviews and

meeting observation. Some themes

wereidentified which are covered in the

Nomination Committee Report. Board

Alchemy concluded that the Board and

Committees were operating well.

Our Board evaluation is described in more detail

onpage 61.

UK CORPORATE GOVERNANCE CODE

In respect of the year ended 31 March 2025

Landsec was subject to the UK Corporate

Governance Code 2018 (the ‘Code’). The

Board is pleased to confirm that Landsec

applied the principles and complied with all

the provisions of the Code throughout the

year. We have also been preparing for further

changes under the 2024 Code which come

into effect in the next financial year, as

described in our Audit Committee Report.

CONCLUSION

I would like to take this opportunity to

recognise the hard work and commitment of

all our people during the year and to thank

them for their continued efforts to ensure the

future success of the business. I would also

like to conclude by thanking members of

the Board for their continued support and

commitment over the past year, and to take

this opportunity to thank Madeleine for her

commitment to Landsec throughout her

time on the Board. The Board and Audit

Committee have benefitted greatly from

Madeleine’s in-depth real estate experience,

and the specialist knowledge she has brought

to our discussions has been invaluable.

SIR IAN CHESHIRE, CHAIR

INTRODUCTION TO THE CORPORATE

GOVERNANCE REPORT FROM THE CHAIR

SIR IAN CHESHIRE, CHAIR* MONI MANNINGS OBE, SENIOR

INDEPENDENT NON-EXECUTIVE DIRECTOR*

JAMES BOWLING,

NON-EXECUTIVE DIRECTOR*

BOARD TENURE: 2 YEARS

Sir Ian joined the Landsec Board as Non-

executive Director and Chair Designate in March

2023 and assumed the role of Chair in May 2023.

COMMITTEES: Nomination Committee (Chair),

Remuneration Committee

ROLE: Leads the Board, responsible for

governance, major shareholder and other

stakeholder engagement.

SKILLS AND EXPERIENCE: Sir Ian’s executive

careerwas spent in retail, customer-focused

businesses in senior leadership and commercial

roles, latterly as Group Chief Executive of

Kingfisher Plc from 2008 to 2015 and prior to

that he was Chief Executive of B&Q Plc. He

previously held FTSE 100 Non-executive Director

roles at Barclays Plc (and as Chair of Barclays

Bank UK), Whitbread Plc, where he was Senior

Independent Director and BT Group Plc where

hewas Chair of the Remuneration Committee.

He was also Chair of Channel 4 until April 2025

and Chair of UK investment trust Menhaden

Resource Efficiency Plc (and retired from their

Board in September 2024). He was the lead

Non-executive Director at the UK Cabinet Office

and Department for Work and Pensions. Sir Ian

was also Chair of the British Retail Consortium,

Chair of the Prince of Wales Corporate Leaders

Group on Climate Change, President of the

Business Disability Forum President’s Group

andchaired the Ecosystem Markets Task Force

and GR Task Force.

Sir Ian was knighted in the 2014 New Year

Honours for services to Business, Sustainability

and the Environment, and is a Chevalier of the

Ordre National du Merite of France.

OTHER CURRENT APPOINTMENTS: Chair of Spire

Healthcare Group plc. Chair of the King Charles III

Charitable Fund and We Mean Business Coalition.

BOARD TENURE: 1-2 YEARS

Moni joined the Board in December 2023

andbecame Senior Independent Director

inApril2024.

COMMITTEES: Nomination Committee,

Remuneration Committee

ROLE: A sounding board for the Chair and

atrusted intermediary for other Directors

andshareholders.

SKILLS AND EXPERIENCE: From 2000 until 2016,

Moni was a Partner and Head of the

International Banking and Finance Division

ofOlswang LLP, before which she held senior

positions in other leading law firms.

Until 2017, Moni was Chief Operating Officer

ofAistemos Limited. Previous Non-executive

Director positions include Hargreaves Lansdown

plc, easyJet plc, Polypipe Group plc, Dairy Crest

Group plc, Breedon Group plc, Investec Bank plc

and Cazoo Group Ltd.

OTHER CURRENT APPOINTMENTS: Senior

Independent Director of Co-operative Group.

A Member of the Takeover Panel. Moni also

founded EPOC, a not-for-profit network that

seeks to increase the number of people of colour

on boards, and is a trustee on the Board of the

StMarks Hospital Foundation charity.

BOARD TENURE: 1-2 YEARS

COMMITTEES: Audit Committee (Chair),

Nomination Committee

SKILLS AND EXPERIENCE: James was Chief

Financial Officer of Severn Trent Plc from 2015

until his retirement in July 2023 and remained

onthe Severn Trent Plc Executive Committee

until December 2023 as a Senior Advisor. Prior to

joining Severn Trent, James was interim Chief

Financial Officer of Shire Plc, where he had been

since 2005. Prior to joining Shire, James spent

nine years at Ford Motor Company in various

finance roles of increasing responsibility.

James has relevant financial experience as a

Fellow of the Institute of Chartered Accountants

in England and Wales and as an experienced

listed company CFO who has successfully

applied his skills across a number of sectors.

Hehas broad experience in financial reporting,

enterprise risk management, long-term capital

investment models and a range of corporate

activity, including M&A.

OTHER CURRENT APPOINTMENTS: Non-independent

Non-executive Director of Water Plus Group Ltd.

Non-executive Director at Porterbrook Leasing

Company Limited.

LANDSEC ANNUAL REPORT 2025 51

BOARD OF DIRECTORS

N R N NR A

COMMITTEES

Audit Committee

Nomination Committee

Remuneration Committee

* Independent as per the Code.

LANDSEC ANNUAL REPORT 202552

GOVERNANCEGOVERNANCE

BOARD OF DIRECTORS CONTINUED

COMMITTEES

Audit Committee

Nomination Committee

Remuneration Committee

* Independent as per the Code.

A A

MICHAEL CAMPBELL,

NON-EXECUTIVEDIRECTOR*

BARONESS LOUISE CASEY,

NON-EXECUTIVEDIRECTOR*

MADELEINE COSGRAVE,

NON-EXECUTIVEDIRECTOR*

CHRISTOPHE EVAIN,

NON-EXECUTIVEDIRECTOR*

MILES ROBERTS,

NON-EXECUTIVE DIRECTOR*

MANJIRY TAMHANE,

NON-EXECUTIVEDIRECTOR*

BOARD TENURE: LESS THAN 1 MONTH

Michael was appointed to the Board on

1 May 2025.

SKILLS AND EXPERIENCE: Michael brings significant

experience acting in leadership roles across real

estate investment and advisory functions. He

has a Bachelor of Arts from Princeton University

and an MBA from The Wharton School,

University of Pennsylvania.

Michael is a Senior Managing Director and Head

of International Real Estate at Pretium Partners,

an alternative investment manager specialising

in residential real estate. Prior to Pretium,

Michael spent almost nine years at Mubadala

Investment Company, where he launched and

led the firm’s international real estate

investment activities.

Earlier in his career, he founded Phene Capital,

served as Managing Director at UBS Wealth

Management, and as Principal at JP Morgan.

Michael began his career as a real estate

consultant at Ernst & Young and Arthur

Andersen.

OTHER CURRENT APPOINTMENTS: Senior Managing

Director and Head of International Real Estate

at Pretium Partners.

BOARD TENURE: LESS THAN 1 YEAR

SKILLS AND EXPERIENCE: Baroness Casey became

acrossbench peer in the House of Lords in

September 2021, and is a former British

Government official, working on issues relating

to social welfare for five Prime Ministers over the

last 23 years. She started her career in the social

welfare sector and was Deputy Director of

Shelter, the homelessness charity, from 1992 to

1999. Baroness Casey is also involved in many

charities, including as a trustee of the King

Charles III Charitable Fund.

In February 2025, she became the UK

Government Lead Non-executive Director and

in May 2025 she becomes the Chair of the

Independent Commission to find long-term

and sustainable solutions for adult social care

in England.

OTHER CURRENT APPOINTMENTS: Independent

adviser for social issues, Chair of the Institute for

Global Homelessness, and Visiting Professor at

King’s College London.

BOARD TENURE: 6-7 YEARS

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Madeleine has extensive

experience in the property industry; she is a

member of the Royal Institution of Chartered

Surveyors and former chair of the INREV Investor

Platform. She is an independent member of

theCBRE IM EMEA Investment Committee,

senior adviser to ICG Real Estate and has

mentoring roles with IntoUniversity and GAIN

(Girls Are Investors).

Madeleine was previously Managing Director

and Regional Head, Europe at GIC Real Estate,

Singapore’s Sovereign Wealth Fund. She held

this position from 2016 until she stepped

downin June 2021 and was responsible for

theinvestment strategy, portfolio and team.

Sheledthe GIC real estate business in Europe

and was a voting member of GIC RE’s Global

Investment Committee.

Madeleine is a chartered surveyor and started

her career in 1989 with JLL as a graduate trainee.

She went on to hold roles in valuation, fund

management, leasing and development in both

London and Sydney, before joining GIC in 1999.

Madeleine is retiring from the Board at the AGM

in July 2025.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of Shaftesbury Capital PLC.

Independent Member of CBRE IM EMEA

Investment Committee. Senior Advisor to ICG

Real Estate.

BOARD TENURE: 6 YEARS

COMMITTEES: Remuneration Committee (Chair),

Nomination Committee

SKILLS AND EXPERIENCE: Christophe has extensive

investment experience in private equity, debt

and other alternative asset classes. As the

former CEO of a UK listed company, he also

hasmanagement and leadership strengths,

having successfully led the transformation of

Intermediate Capital Group PLC (ICG) from a

principal investment business into a diversified

alternative asset management group.

Christophe’s broad experience, both as a

business leader and an investor, is a valuable

asset to the Board. Having started his career in

banking, holding various positions at NatWest

and Banque de Gestion Privée, he joined ICG in

1994 as an investment professional, became CEO

in 2010 and stepped down from that position in

2017. During his time at ICG he held various

investment and management roles, founded the

Group’s businesses in Paris, the Asia-Pacific

region and North America, and was instrumental

in adding various additional businesses,

including a UK property lending business.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of Bridges Fund Management.

ChairofQuilvest Capital Partners.

BOARD TENURE: 2-3 YEARS

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Miles was Group Chief

Executive of DS Smith Plc, the international

packaging group, from 2010 until the company

was taken over by International Paper in January

2025. Miles is currently acting as an adviser

toDSSmith Limited and International Paper

subsequent to that takeover. Prior to his role

atDS Smith Plc, he was Chief Executive at

McBride plc from 2005 to 2010.

Miles brings a wide level of Board experience,

together with specific experience of large, long-

term capital projects, alongside a particular

focus on sustainability. Miles is a qualified

Chartered Accountant.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of RS Group PLC.

BOARD TENURE: 4 YEARS

COMMITTEES: Remuneration Committee

SKILLS AND EXPERIENCE: Manjiry brings over

20 years of client and agency side experience

inthe data, technology, advanced analytics and

AI industry gained from working in marketing,

customer insight and strategy roles.

She is Global Chief Executive Officer of Gain

Theory, a global marketing effectiveness

foresight consultancy, a subsidiary of WPP plc.

Manjiry was part of a team which founded Gain

Theory in 2015, having previously been Managing

Director of another of WPP’s consultancies also

focused on data and analytics. Prior to that,

Manjiry spent the first part of her career in the

retail sector, latterly as Head of Customer

Insight and Strategy at Debenhams.

In 2017, Manjiry was named as one of the top 20

Women in Data & Technology, led by The Female

Lead and Women in Data.

OTHER CURRENT APPOINTMENTS: Chief Executive

Officer of Gain Theory, a subsidiary of WPP plc.

Advisory Board member of Saracens Women’s

Rugby Club.

LANDSEC ANNUAL REPORT 2025 53

A RR N

MICHAEL CAMPBELL,

NON-EXECUTIVEDIRECTOR*

BARONESS LOUISE CASEY,

NON-EXECUTIVEDIRECTOR*

MADELEINE COSGRAVE,

NON-EXECUTIVEDIRECTOR*

CHRISTOPHE EVAIN,

NON-EXECUTIVEDIRECTOR*

MILES ROBERTS,

NON-EXECUTIVE DIRECTOR*

MANJIRY TAMHANE,

NON-EXECUTIVEDIRECTOR*

BOARD TENURE: LESS THAN 1 MONTH

Michael was appointed to the Board on

1 May 2025.

SKILLS AND EXPERIENCE: Michael brings significant

experience acting in leadership roles across real

estate investment and advisory functions. He

has a Bachelor of Arts from Princeton University

and an MBA from The Wharton School,

University of Pennsylvania.

Michael is a Senior Managing Director and Head

of International Real Estate at Pretium Partners,

an alternative investment manager specialising

in residential real estate. Prior to Pretium,

Michael spent almost nine years at Mubadala

Investment Company, where he launched and

led the firm’s international real estate

investment activities.

Earlier in his career, he founded Phene Capital,

served as Managing Director at UBS Wealth

Management, and as Principal at JP Morgan.

Michael began his career as a real estate

consultant at Ernst & Young and Arthur

Andersen.

OTHER CURRENT APPOINTMENTS: Senior Managing

Director and Head of International Real Estate

at Pretium Partners.

BOARD TENURE: LESS THAN 1 YEAR

SKILLS AND EXPERIENCE: Baroness Casey became

acrossbench peer in the House of Lords in

September 2021, and is a former British

Government official, working on issues relating

to social welfare for five Prime Ministers over the

last 23 years. She started her career in the social

welfare sector and was Deputy Director of

Shelter, the homelessness charity, from 1992 to

1999. Baroness Casey is also involved in many

charities, including as a trustee of the King

Charles III Charitable Fund.

In February 2025, she became the UK

Government Lead Non-executive Director and

in May 2025 she becomes the Chair of the

Independent Commission to find long-term

and sustainable solutions for adult social care

in England.

OTHER CURRENT APPOINTMENTS: Independent

adviser for social issues, Chair of the Institute for

Global Homelessness, and Visiting Professor at

King’s College London.

BOARD TENURE: 6-7 YEARS

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Madeleine has extensive

experience in the property industry; she is a

member of the Royal Institution of Chartered

Surveyors and former chair of the INREV Investor

Platform. She is an independent member of

theCBRE IM EMEA Investment Committee,

senior adviser to ICG Real Estate and has

mentoring roles with IntoUniversity and GAIN

(Girls Are Investors).

Madeleine was previously Managing Director

and Regional Head, Europe at GIC Real Estate,

Singapore’s Sovereign Wealth Fund. She held

this position from 2016 until she stepped

downin June 2021 and was responsible for

theinvestment strategy, portfolio and team.

Sheledthe GIC real estate business in Europe

and was a voting member of GIC RE’s Global

Investment Committee.

Madeleine is a chartered surveyor and started

her career in 1989 with JLL as a graduate trainee.

She went on to hold roles in valuation, fund

management, leasing and development in both

London and Sydney, before joining GIC in 1999.

Madeleine is retiring from the Board at the AGM

in July 2025.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of Shaftesbury Capital PLC.

Independent Member of CBRE IM EMEA

Investment Committee. Senior Advisor to ICG

Real Estate.

BOARD TENURE: 6 YEARS

COMMITTEES: Remuneration Committee (Chair),

Nomination Committee

SKILLS AND EXPERIENCE: Christophe has extensive

investment experience in private equity, debt

and other alternative asset classes. As the

former CEO of a UK listed company, he also

hasmanagement and leadership strengths,

having successfully led the transformation of

Intermediate Capital Group PLC (ICG) from a

principal investment business into a diversified

alternative asset management group.

Christophe’s broad experience, both as a

business leader and an investor, is a valuable

asset to the Board. Having started his career in

banking, holding various positions at NatWest

and Banque de Gestion Privée, he joined ICG in

1994 as an investment professional, became CEO

in 2010 and stepped down from that position in

2017. During his time at ICG he held various

investment and management roles, founded the

Group’s businesses in Paris, the Asia-Pacific

region and North America, and was instrumental

in adding various additional businesses,

including a UK property lending business.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of Bridges Fund Management.

ChairofQuilvest Capital Partners.

BOARD TENURE: 2-3 YEARS

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Miles was Group Chief

Executive of DS Smith Plc, the international

packaging group, from 2010 until the company

was taken over by International Paper in January

2025. Miles is currently acting as an adviser

toDSSmith Limited and International Paper

subsequent to that takeover. Prior to his role

atDS Smith Plc, he was Chief Executive at

McBride plc from 2005 to 2010.

Miles brings a wide level of Board experience,

together with specific experience of large, long-

term capital projects, alongside a particular

focus on sustainability. Miles is a qualified

Chartered Accountant.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of RS Group PLC.

BOARD TENURE: 4 YEARS

COMMITTEES: Remuneration Committee

SKILLS AND EXPERIENCE: Manjiry brings over

20 years of client and agency side experience

inthe data, technology, advanced analytics and

AI industry gained from working in marketing,

customer insight and strategy roles.

She is Global Chief Executive Officer of Gain

Theory, a global marketing effectiveness

foresight consultancy, a subsidiary of WPP plc.

Manjiry was part of a team which founded Gain

Theory in 2015, having previously been Managing

Director of another of WPP’s consultancies also

focused on data and analytics. Prior to that,

Manjiry spent the first part of her career in the

retail sector, latterly as Head of Customer

Insight and Strategy at Debenhams.

In 2017, Manjiry was named as one of the top 20

Women in Data & Technology, led by The Female

Lead and Women in Data.

OTHER CURRENT APPOINTMENTS: Chief Executive

Officer of Gain Theory, a subsidiary of WPP plc.

Advisory Board member of Saracens Women’s

Rugby Club.

NON-EXECUTIVE DIRECTOR – ANNERICHARDS

Anne Richards will join the Board on 1 September

2025. Anne is ViceChair of Fidelity International,

having previously served as their CEO since 2018.

Shewas previously CEO of M&G Investments and

Global Chief Investment Officer at Aberdeen

Asset Management. Anne has worked in asset

management since 1992, including over two

decades as an analyst, portfolio manager and

CIO, across a number of global investment firms.

THE ROLE OF OUR NON-EXECUTIVE DIRECTORS

Our Non-executive Directors are responsible

forbringing an external perspective, sound

judgement and objectivity to the Board’s

deliberations and decision making. They support

and constructively challenge the Executive

Directors using their broad range of experience

and expertise and monitor the delivery of the

agreed strategy within the risk management

framework set by the Board.

Our Non-executive Directors have adiverse

skillset and background including property,

investment, asset management, retail and

hospitality, and data and analytics. This expertise

enables the Board to constructively challenge

management and encourages diversity of

thought in the decision making process.

COMPANY SECRETARY

Marina Thomas is our Company Secretary.

Marinaprovides advice and support to the

Board,its Committees and the Chair, is

responsible for governance and compliance

across the Group, and is a member of our ELT.

The appointment and removal of the Company

Secretary is a matter for the Board.

MARK ALLAN, CHIEF EXECUTIVE,

EXECUTIVEDIRECTOR

VANESSA SIMMS, CHIEF FINANCIAL

OFFICER, EXECUTIVE DIRECTOR

BOARD TENURE: 5 YEARS

ROLE: Responsible for the leadership of the

Group, development and implementation

of strategy, managing overall business

performance and leading the ELT.

SKILLS AND EXPERIENCE: Mark brings extensive

knowledge and experience of the property

sector, combined with strong operational

leadership and, financial and strategic

management skills, to the Board.

Prior to joining Landsec, Mark was Chief

Executive of St. Modwen Properties Plc. Prior to

that he was Chief Executive of The Unite Group

since 2006. He moved to Unite in 1999 from

KPMG and held a number of financial and

commercial roles in the business, including

ChiefFinancial Officer from 2003 to 2006.

Mark is a qualified Chartered Accountant

anda member of the Royal Institution of

Chartered Surveyors.

OTHER CURRENT APPOINTMENTS: Mark is on the

Board of the British Property Federation and an

Independent Trustee at the University of Bristol.

COMMITTEES: Mark chairs the ELT and attends the

Board’s Audit, Remuneration and Nomination

Committees at the invitation of the chairs of the

relevant Committees.

BOARD TENURE: 4 YEARS

ROLE: Works closely with the Chief Executive

in developing and implementing vision and

strategy. Responsible for Group financial

performance, financial planning, management

of risk and assurance, Group legal and Group

procurement.

SKILLS AND EXPERIENCE: Vanessa brings extensive

financial experience to Landsec from the

property sector, most recently as Chief Financial

Officer at Grainger plc. Vanessa has particular

expertise in leading and implementing strategic

change in businesses and substantial experience

of leadership roles in a listed environment.

Prior to Grainger plc, Vanessa was Deputy Chief

Financial Officer at Unite Group plc and prior

tothat was UK Finance Director at SEGRO plc.

Vanessa is a Chartered Certified Accountant

(FCCA) and has an executive MBA (EMBA) from

Ashridge Business School.

Vanessa was a Non-executive Director and

AuditChair of Drax Group Plc until June 2024.

OTHER CURRENT APPOINTMENTS: Vanessa is a

Non-executive Director of Rotork plc.

COMMITTEES: A member of the ELT and chairs

our Disclosure Committee. Vanessa attends

the Board’s Audit Committee meetings at the

invitation of the Committee Chair.

LANDSEC ANNUAL REPORT 202554

GOVERNANCE

BOARD OF DIRECTORS CONTINUED

CURRENT GENDER

DIVERSITY OF BOARD

(ALL DIRECTORS)

CHART 19

MALE

55%

FEMALE

45%

CURRENT BOARD TENURE

(NON-EXECUTIVE DIRECTORS

INCLUDING CHAIR)

CHART 20

0 TO 3 YEARS

67%

3+ TO 6 YEARS

11%

6+ YEARS

22%

LANDSEC ANNUAL REPORT 2025 55

EXECUTIVE LEADERSHIP TEAM

Our ELT is made up ofour Executive Directors

and our business unit and enabling function

leaders, and is chaired by the Chief Executive.

BRUCE FINDLAY

MANAGING DIRECTOR,

RETAIL

KATE SELLER

CHIEFPEOPLE OFFICER

CHRIS HOGWOOD

CHIEFCORPORATE

AFFAIRS OFFICER

NISHA MANAKTALA

CHIEF DATA &

TECHNOLOGYOFFICER

MIKE HOOD

CHIEF OPERATING OFFICER

REMCO SIMON

CHIEF STRATEGY &

INVESTMENT OFFICER

MARCUS GEDDES

MANAGING DIRECTOR,

WORKPLACE

MARINA THOMAS

HEAD OF GOVERNANCE

AND COMPANY SECRETARY

Biographies for the ELT can be found on our website | landsec.com/about/our-management

LANDSEC ANNUAL REPORT 202556

GOVERNANCE

GOVERNANCE REPORT

*We also operate a Disclosure Committee, chaired by the CFO, which oversees compliance with market abuse requirements and manages inside information.

BOARD OF DIRECTORS

Responsible for the

long-term success

oftheGroup

Provides leadership

anddirection to the

Group onits culture,

values andethics

Sets strategy

andoversees its

implementation

Agrees risk appetite

andisresponsible

forriskoversight

Responsible for

corporategovernance

Responsible for the

overall financial

performance of

theGroup

Appointment of

ExecutiveDirectors

Approves property

andinvestment

decisionsand other

commitments

above£150m

CHIEF EXECUTIVE

Leads the Group

Articulates vision,

valuesandpurpose

Develops and

implementsstrategy

Responsible for

overallperformance

ofthebusiness

Manages the ELT

AUDIT COMMITTEE

Responsible for oversight

ofthe Group’s financial

andnarrative

reportingprocesses

Responsible for the integrity

of financial statements

andinternalcontrol

Supports the Board

inriskidentification

andmanagement

Ensures transparency and

financial governance

REMUNERATION COMMITTEE

Recommends to the

Boardthe Directors’

Remuneration Policy

Determines remuneration

packages of the Executive

Directors and the ELT

Oversight of remuneration

practices for all employees

NOMINATION COMMITTEE

Reviews structure, size

andcomposition of the Board

and itsCommittees

Oversees succession planning

of Directors andthe ELT

Leads Board

appointmentprocesses

Recommends appointments

to the Board

Board Committees*

Management committees

INVESTMENT

COMMITTEE

CAPITAL ALLOCATION AND

PERFORMANCE REVIEW

EXECUTIVE LEADERSHIP TEAM

BUSINESS UNIT (WORKPLACE, RETAIL, LANDSEC U+I)

EXECUTIVE COMMITTEES

OUR GOVERNANCE STRUCTURE

Approve

property

investment

decisions

£10m to

£150m

Monitor

performanceand

organisational health

Develop and oversee

the Group’s people

and culture strategy

Oversight of

sustainability and

datastrategies, risk

andcompliance

Business unit

performance

review

Prioritise

capital

allocation

Develop

andexecute

business plans

Assess and

manage

operational risks

Talent

development

Deliver

financial

performance

LANDSEC ANNUAL REPORT 2025 57

OUR GOVERNANCE STRUCTURE

The Board and Committees continue to

oversee governance and assurance. They are

supported by our ELT, which is responsible for

oversight of strategy, organisational health

and our people agenda.

Our governance model is evolving alongside

our strategy. From 1 April 2025, the Workplace

and Lifestyle Boards were removed and our

Shadow Boards were moved into Landsec

Builds, our development programme for

aspiring talent.

During their tenure, the Workplace and

Lifestyle Boards served an important purpose

as part of the evolution for our teams to be

more customer-focused and enable better

strategic conversations about the trends and

issues facing our business units. The Boards

included a diverse range of individuals not

only through the Shadow Boards, but also

because of strategic projects which often

involved seeking input from across business

units. These ways of thinking have been

successfully embedded and will continue

inthe various business unit Executive

Committees which have proved to be very

effective in overseeing the implementation

ofstrategy and the day-to-day running of the

business units. By incorporating the Shadow

Board concept into Landsec Builds we will

also ensure that aspiring talent can continue

to contribute to strategic decisions.

The Capital Allocation and Performance

Review (tracking performance and

prioritisation discussions) and the Investment

Committee (for formal investment decisions)

have both proved effective since being

introduced into our governance structure

earlier in the year.

Decisions that can only be made by the

Board, together with the terms of reference

for our Board Committees, are on our website.

Our Delegation of Authorities framework sets

out levels of authority for decision making

throughout the business. Decision making

oninvestments and commercial agreements,

including the acquisition, disposal and

development of assets, is delegated

according to financial values. Our investment

appraisal guidelines include the principles

inSection 172 of the Companies Act 2006

requiring consideration of all stakeholders.

ATTENDANCE

There were seven scheduled meetings this

year. All Board members attended those

meetings. The Chair holds meetings with

the Non-executive Directors without the

Executive Directors present at the end of

Board meetings.

BOARD ACTIVITIES

Our Board is responsible for the overall

leadership of the Group and throughout the

year, Board activities and discussion have

continued to focus on the Company’s strategic

priorities. The Board oversees the Company’s

strategic direction and supports the ELT

with its delivery of the strategy within a

transparent governance framework. Alongside

the revised strategy and business financial

and operational performance, the Board

has considered topics including executive

succession, diversity and inclusion, data and

technology, compliance and governance.

Board activities are covered in more detail

onpage 59.

STRATEGY REFRESH

Commencing in January 2024, the Board has

undertaken a detailed review of the strategy

which was last reset in 2020. This involved

detailed reviews of development, other real

estate sectors, the existing portfolio mix and

our current capital allocation. The Board then

considered resulting proposals to rebalance

the portfolio and capital allocation, aimed

at driving a higher income, higher growth

business by 2030. Strategic (and execution)

risk and the impacts of the portfolio changes

on our workforce were also discussed in detail.

STRATEGY DAY

As the business strategy had been an ongoing

focus throughout 2024 into early 2025, the

Board took the opportunity to concentrate

the annual strategy day in early 2025 on

AI and data and technology in real estate.

This day included sessions with internal

and external AI real estate experts and how

this was being or was planned to be applied

at Landsec.

TRAINING AND DEVELOPMENT

Directors received regular market updates

intheir Board papers, facilitating greater

awareness and understanding of the

contextof the Group’s business and strategy.

The strategy day on AI and data also

includedcontent intended to inform the

Board in these areas.

INDUCTION

Our induction plan is delivered on appointment

and aims to enable a new Director to assume

their responsibilities as quickly as possible and

feel able to contribute to business and strategy

discussions, with sufficient knowledge to

provide effective challenge.

During 2024/25 induction plans were in place

for Moni Mannings (who joined in December

2023) and Louise Casey (who joined in

January 2025).

Our induction programmes are designed for

Non-executive Directors to:

•

support their understanding of Landsec’s

business and financial position, strategy,

culture, risks and opportunities

•

enable a good understanding of our Board

processes and dynamics

•

help them form relationships with the

Board, the ELT and other key individuals

atLandsec and key external advisers

•

help the Directors learn about our business

first hand, by site visits across our portfolio.

All new Directors visit or are due to visit

sites including Victoria, Liverpool ONE,

Bluewater, Gunwharf Quays, Mayfield,

MediaCity, O2 and Lewisham

In our 2024/25 externally facilitated Board

evaluation, the induction programme was

well rated by our Directors.

LANDSEC ANNUAL REPORT 202558

GOVERNANCE

CONFLICTS OF INTEREST AND

EXTERNALAPPOINTMENTS

The Board has a policy to (i) identify and

manage Directors’ conflicts or potential such

disclosed conflicts; and (ii) determine any

mitigating actions deemed appropriate to

ensure that all Board meetings and decisions

are conducted solely with a view to

promoting the success of Landsec.

Directors’ conflicts of interest are reviewed by

the Board during the year, with new conflicts

arising between meetings dealt with by the

Chair and Company Secretary. Details of

Non-executive Directors’ other appointments

are included on pages 51-53. Non-executive

Directors’ letters of appointment set out the

time commitments expected fromthem.

Following consideration, the Nomination

Committee has concluded that all the

Non-executive Directors continue to devote

sufficient time to discharging their duties

tothe required high standard.

We generally adhere to the Institutional

Shareholder Services (ISS) proxy voting

guidelines on overboarding and accordingly

deem all of our Non-executive Directors to

bewithin these guidelines.

Our policy is to allow Executive Directors

totake one non-executive directorship at

another FTSE company, subject to Board

approval. In June 2024 Vanessa Simms

resigned from Drax Group plc and joined

theBoard at Rotork plc.

BOARD DIVERSITY

Our latest gender and ethnic diversity data at

Board level and below as required under the

UK Listing Rules is detailed below. Further

diversity data for the wider workforce is

onpages 26-27 and in our Sustainability

Performance and Data Report.

Landsec was ranked 15th in the FTSE 100 of

the FTSE Women Leaders Review, due to the

relatively high representation of women in

the combined executive committee and

direct reports group. Landsec were again

included in the 95% of FTSE 100 companies

who continue to meet the target of ‘at least

one ethnic minority director on their board’.

The 2023 Parker review introduced a new

voluntary target ‘for each FTSE 100 and 250

Board to set a target for 2027 for the

percentage of its Senior Management group

who identify as minority ethnic’. We set a

target of 9% representation in our senior

management population by 2027. This was a

mid-point target to our internal 2030 ethnic

minority representation targets (18% ethnic

minority representation at Leader and Senior

Leader levels and 20% at ELT level). The 2027

target of 9% is close to being achieved as at

31 December 2024 (the Parker Review

reporting date) with 8.6% ethnic minority

representation within ELT and direct reports.

BOARD AND EXECUTIVE LEADERSHIP DIVERSITY

TABLE 21

Number of

Board

members

Percentage of

the Board

Number of

senior

positions on

the Board

(CEO, CFO, SID

and Chair)

Number in

Executive

Leadership

Team

Percentage of

Executive

Leadership

Team

Gender diversity

Men 6 55% 2 6 60%

Women 5 45% 2 4 40%

Not specified/prefer not to say – – – – –

Ethnic diversity

White British or other White (including minority-white groups) 8 73% 3 9 90%

Mixed/Multiple Ethnic Groups – – – – –

Asian/Asian British 2 18% 1 1 10%

Black/African/Caribbean/Black British 1 9% – – –

Other ethnic group – – – – –

Not specified/prefer not to say – – – – –

1. Data disclosed as at the date of this report. The data is collected from individuals when joining the Company. Gender and ethnicity data is shared with the ELT and the

Board regularly.

GOVERNANCE REPORT CONTINUED

LANDSEC ANNUAL REPORT 2025 59

TOPICS/ACTIVITIES

OUTCOMES

STRATEGY

•

Retail, Workplace and Landsec U+I business reviews

•

Acquisitions and disposals

•

Defence overview, valuations and market reviews

•

Development deep dive review

•

Overall Strategy Review

•

Optimum capital recycling and capital allocation

•

Westgate Oxford site visit and presentation on retail

•

Tour of Myo Lucent and review of Below the Lights

•

Approval of the updated Landsec strategy and 2030

vision and associated Group strategic plan (five-

year view) with integrated view of risk management

•

Approval of Group business plan

•

Capital Markets Day to update investors on the next

phase of our strategy

•

Approval of the purchase of Liverpool ONE

•

Approval of the purchase of the remaining 25%

stake in MediaCity

•

Disposals of other non-core assets

FINANCIAL

•

Capital allocation

•

Macroeconomic environment consideration

inhigher interest rate and development

costenvironment

•

Budgets

•

Key business targets

•

Dividends, results and reports

•

Going concern and viability statement

•

Portfolio valuation

•

Source of funding and gearing levels

•

Finance systems transformation

•

Preliminary results, Annual Report and half-year

results approved

•

Group budget approved

•

Dividends approved and paid

•

Approval of change of frequency of future dividend

payments to half-yearly

•

Approval of budget

•

New bond issuance in September 2024

•

Annual tax strategy approved and published

•

Post investment appraisals of key development

projects

OPERATIONAL

•

Development pipeline and pre-let activity

•

Market and sector trends

•

Sustainability progress updates

•

Updates on UK politics

•

Health, safety and physical security, including

firesafety

•

AI, data and technology and cyber security

•

Board strategy day on AI, data and technology

inrealestate

•

Half-yearly health, safety and security updates

PEOPLE AND

ORGANISATION

•

Succession planning for ELT and senior management

•

Talent management across the Group including

review of talent programmes and high potentials

•

Progress with diversity and inclusion programmes

•

Review of culture through employee engagement

survey and feedback from direct engagement

•

Attendance at Spotlight Awards to celebrate

employee achievements

•

Focus on high performance culture and issuing

ourLandsecDNA and Landsec leader DNA

•

Refreshed purpose to accompany our updated

strategic vision

•

Continued progress with diversity and inclusion

initiatives

•

Approval of gender and ethnicity pay gap reports

GOVERNANCE

•

Risk identification, management and internal control

•

Meeting reports from Chairs of Audit, Remuneration

and Nomination Committees

•

Modern slavery

•

Board and Committee effectiveness

•

Litigation and whistleblowing updates

•

Share register analysis – major shareholder

movements

•

Updates on reports to FTSE Women Leaders Review

and Parker Review on Ethnic Diversity

•

Board succession review and skills matrix refresh

•

Annual General Meeting

•

Agreed risk appetite

•

Agree externally facilitated Board and Committee

evaluation actions

•

Agreed an updated Board skills matrix

•

Approval of Modern Slavery Statement

•

Remuneration Committee Chair meeting with

Employee Forum on executive remuneration

•

Regular meetings between employees and Non-

executive Directors with summary feedback covered

at the Board

•

Controls processes reviewed and refreshed to

reflectnew requirements under the 2024 Code

BOARD DISCUSSIONS DURING THE YEAR

LANDSEC ANNUAL REPORT 202560

GOVERNANCE

DEAR SHAREHOLDER

I am pleased to present the

report from the Nomination

Committee for the year.

BOARD COMPOSITION

We believe that a balanced and diverse

Boardwith a mix of skills, expertise,

background and tenure is critical to the

success of the business. The composition of

the Board underpins the quality of debate

and ensures there is appropriate challenge

during discussions.

As stated in our Board Diversity Policy

(available on our website), diversity at Board

level sets the tone for diversity throughout

the business and at Landsec we support

diversity in the broadest sense, including

gender and ethnicity but also experience,

skills, professional background and tenure.

Further information on diversity at Landsec

canbefound on pages 26-27.

INDEPENDENCE AND RE-ELECTION

TOTHEBOARD

The independence, effectiveness and

commitment of each of the Non-executive

Directors has been reviewed by the

Committee. The Committee is satisfied

withthe contributions and time commitment

of all the Non-executive Directors during

theyear.

The Committee will always discuss the

additional commitments of all Directors

(including the Chair) before recommending

their approval to the Board. It also considers

potential conflict issues as part of that

assessment.

Baroness Louise Casey and Michael Campbell

are standing for initial election by

shareholders at the AGM in July 2025, with all

other Directors standing for re-election with

the support of the Board, with the exception

of Madeleine Cosgrave who is stepping down

from the Board at the AGM.

KEY ACTIVITIES: APPOINTMENTS

The process for Board appointments is led

bythe Nomination Committee which makes

recommendations to the Board for approval.

It is the Nomination Committee’s

responsibility to keep Board composition

under review, including maintaining a skills

matrix, reviewing Director independence and

time commitments, and tenure. During the

year the Committee continued to review the

composition and skills of the Board and its

plan for Board succession.

The Nomination Committee works with

executive search consultants to create role

profiles for each appointment and to ensure

we review and meet a diverse range of

candidates for Board appointments.

Selection is always based on merit and

objective criteria.

As well as the retirement of Edward Bonham

Carter in July 2024, Madeleine Cosgrave will

retire from the Board and Audit Committee

at the AGM in July 2025. Madeleine, an

established real estate leader, joined the

Board in January 2019 and the Board has

benefitted from her deep real estate

expertise throughout her tenure of over six

years. As a result of these retirements and a

review of our skills matrix, a number of Board

appointments have been made which are

described in more detail in this report.

KEY ACTIVITIES: SKILLS MATRIX

During 2024, the Committee did some more

detailed work to improve our skills matrix and

this is described further in this report. The

revised matrix reinforced the need to focus

our recruitment in specific areas (investment

and real estate) and clarified a couple of

areas for increased focus in Board briefings.

BOARD EVALUATION

This year we carried out an externally

facilitated evaluation. I managed the process

alongside the Senior Independent Director

and Company Secretary and the outcomes

are described in more detail in this report.

Overall, the outcome of the Board review

waspositive and Board Alchemy also

concluded that this Committee had operated

effectively during the year in carrying out

itsresponsibilities.

SIR IAN CHESHIRE, CHAIR

INTRODUCTION FROM THE CHAIR

OF THE NOMINATION COMMITTEE

COMMITTEE MEMBERS

‡ Sir Ian Cheshire (Chair)

‡ James Bowling

‡ Christophe Evain

‡ Moni Mannings

KEY ACTIVITIES

•

Appointment of new Non-

executive Directors

•

Improved skills matrix

KEY RESPONSIBILITIES

•

Skills matrix and composition

ofthe Board and Committees

•

Succession planning

•

Board appointment processes

MEETINGS

•

Three scheduled meetings,

oneunscheduled meeting

•

All members of the Committee

attended all scheduled meetings

during their membership

LANDSEC ANNUAL REPORT 2025 61

SKILLS MATRIX AND NON-EXECUTIVE

DIRECTOR CHANGES

Early in the year the Nomination Committee

led an exercise to review and refresh the

Board skills matrix. Having identified the skills

required in a facilitated exercise, a new skills

matrix was created using a combined process

of scaled self-evaluation and peer review.

Thecombined matrix was reviewed by the

Committee and the Board. The revised matrix

reinforced the need to ensure investment

andreal estate skills were appropriately

represented on the Board given Board

changes that had happened or were due to

happen. The review also identified that skills

around social responsibility and political

engagement could be reinforced and resulted

in a couple of areas of increased focus for the

Board during the year: health and safety and

the future of AI in real estate.

As a result of Board changes and the skills

matrix work, it was agreed that looking for

additional Non-executive Directors with

certain skill sets would be of benefit to the

Board, so the Committee appointed

independent search firms, Lygon Group and

Russell Reynolds to assist in search processes

during the year. Neither Lygon Group nor

Russell Reynolds have any other connection

to Landsec.

The search processes involved long and short

diverse candidate lists and, following robust

selection processes, the following changes

were made:

•

Baroness Louise Casey joined the Board

on1 January 2025. Louise brings in-depth

experience of political engagement and

social responsibility matters

•

Michael Campbell joined the Board

on1 May 2025 and brings significant

experience in real estate investment,

including in his current role focused

onresidential real estate

•

Anne Richards will join the Board on

1 September 2025. Anne is a highly

accomplished investment leader turned

Chief Executive, with a wealth of

experience at a number of global

investment firms

BOARD EVALUATION

PROCESS 2024/25

Our Board evaluation provides the Board

andits Committees with an opportunity to

reflect on effectiveness and performance.

This year our review was externally facilitated

– Board Alchemy were selected for this work

as a result of a thorough selection process.

The review was carried out as follows:

•

Agree review process with the Chair,

SeniorIndependent Director and Company

Secretary, including those to be involved in

the review (the Board, Company Secretary,

external advisers, and a number of ELT

members who frequently attend the Board/

Committees, e.g. Chief People Officer)

•

Review of Board and Committee papers

•

Completion of a short questionnaire

toprovoke thoughts and give structure

tolaterdiscussions

•

Interviews/discussions with each Board

member (and other review participants)

tocover each area of Board performance

inmore detail

OUTCOMES

Overall, the Board was satisfied with its

performance during the year. The following

key themes were identified:

•

Overall, Landsec has an effective Board.

There is a good understanding of the

Board’s role. There are good working

relationships between the non-executives

and executives

•

Meetings are well run and supported by

good underlying processes effectively

facilitated by the Company Secretary

•

Non-executives speak positively about

theirinduction experience

•

Landsec also gives focus to Board

development with periodic updates and

briefings provided on topics relevant to

theBoard

•

Board and committee papers are good

quality and quality has improved further

inrecent years

•

The Board reflects appropriate levels of

gender and ethnic diversity that meet

keybenchmarks, and the non-executives

bring a wide range of relevant skills and

experience, including property, finance,

accounting, commercial, operations,

governance, risk, audit, remuneration

aswell as data, digital and technology

•

Meetings are chaired well and in an

inclusive way; they focus on appropriate

areas relevant to the business, including

stakeholders

•

The Committees also provide the Board

with appropriate support

The evaluation identified recommendations

and suggestions for consideration by the

Board. Key themes included:

•

The need – also identified during the skills

matrix review – to ensure real estate and

City/investment skills and experience

amongst Non-executive Directors given

recent Board changes. This was effectively

already being covered with the changes

being made to the Board in 2025

•

Given the number of changes to the Board

in the last few years, it was recommended

that later in the year there should be a

Board session to further deepen and

develop Board relationships and after that

session, that there are further opportunities

for non-executives and executives to meet

together informally

•

There were a number of procedural

suggestions to help the smooth running

ofthe Board and Committees

The Nomination Committee was also

reviewed. There were a few recommendations

however overall it was concluded that this

Committee had operated effectively during

the year. The Audit and Remuneration

Committee Reports contain a summary

oftheir own reviews.

REPORT OF THE

NOMINATION COMMITTEE

LANDSEC ANNUAL REPORT 202562

GOVERNANCE

INTRODUCTION FROM THE CHAIR

OF THE AUDIT COMMITTEE

DEAR SHAREHOLDER

I am pleased to present

myreport of the Audit

Committee for the year

ended 31 March 2025

The Committee has continued to ensure that

its key responsibilities highlighted on the left

were satisfied and that the Board was

provided with comfort on the reliability of

thefinancial statements, the integrity of the

reporting process and the Company’s system

of internal controls, risk identification and

management, audit and valuation processes,

effective compliance with laws, regulations

and ethical codes of practice, and overall

financial governance.

RISK AND CONTROLS

Following changes in the last financial year to

the risk management framework, this year

the Committee has been monitoring the

successful embedding of this decentralised

and simplified framework and its associated

processes into the day-to-day operations of

the business.

The risk relating to the macroeconomic

outlook is unchanged in the year but remains

the most significant strategic risk. Risks in

relation to the office occupier market, capital

allocation, development, and people and

skills have increased in the year. The

Committee is provided with detail to ensure

that actions to mitigate these and the other

principal risks are appropriate. No material

emerging risks have been identified through

the risk management process.

FINANCIAL STATEMENTS AND

REPORTINGPROCESS

The Group’s financial statements are of

critical importance to investors and wider

stakeholders and the Committee monitors

the integrity of the Group’s reporting process

and financial management. It scrutinises

the full and half-yearly financial statements

before proposing them to the Board for

approval. The Committee reviews in detail

the work of the external auditor and external

valuers and any significant financial

judgements and estimates made by

management to ensure that it is satisfied

with the outcome.

The Committee also considered the

disclosures against the Task Force on Climate-

related Financial Disclosures (TCFD) and the

Task Force on Nature-related Financial

Disclosure (TNFD) and updates from advisers

on these matters.

I am pleased to report that the Financial

Reporting Council raised no questions or

queries following their recent review of our

Annual Report and Accounts for the year

ended 31 March 2024

ASSET VALUATION

The valuation of our assets is a significant

constituent of our financial results and

measurement of our performance. CBRE and

JLL continue to value the office and retail

portfolios respectively (with some exceptions).

Both CBRE and JLL are industry-leading

agencies with extensive expertise and

appropriate knowledge who provide us with

an external valuation of our portfolio twice a

year, in accordance with the relevant industry

standards. The Committee has considered

a proposal in respect of the Royal Institute

of Chartered Surveyors’ mandatory rotation

policy for valuers.

The valuation process requires the valuers

to evaluate the likely future financial

performance of each individual asset and

apply recent and relevant transactional

evidence to determine an appropriate value

at the period end. The Committee analyses,

challenges and debates the valuations

prepared by the valuers who attend

Committee meetings for this purpose at the

half and full year-end. The external valuation

process and the values ascribed to specific

assets are also reviewed independently by

our auditor, EY, as part of its audit scope.

TRANSACTIONS

There were a number of transactions during

the year (including the acquisitions of

Liverpool ONE, an additional 17.5% stake

in Bluewater and the remaining interest

in MediaCity, and the disposals of the hotel

portfolio and Lakeside Retail Park). The

Committee considered the accounting

treatment and disclosures of these

transactions and concluded that they

were appropriate.

COMMITTEE MEMBERS

‡ James Bowling (Chair)

‡ Madeleine Cosgrave

‡ Miles Roberts

HIGHLIGHTS

•

Integrity of reporting process

•

Effectiveness of the risk

management and internal

controls process

•

Cyber and information security

•

Financial systems transformation

•

Accounting treatment of various

financial matters

•

Corporate governance changes

•

Whistleblowing updates

KEY RESPONSIBILITIES

•

Reliability of the financial

statements and internal controls

•

Effective risk identification

andmanagement

•

Overall transparency and

financial governance

MEETINGS ANDADVISERS

•

Four scheduled meetings with full

attendance from all members

•

Meetings are normally attended

by the Chair, the Executive

Directors, senior members of the

finance team, the Head of Risk

and Controls

•

Representatives of the EY external

audit team and the KPMG

internal audit team are also

in attendance

•

All Directors are invited to attend

when CBRE and JLL present

theirvaluations

•

Committee private sessions are

held with EY, KPMG, CBRE and JLL

1. Limitations of FRC Review: The FRC’s review provides

no assurance that the Annual Report and Accounts

are correct in all material respects. The FRC’s role is

not to verify the information provided to it but to

consider compliance with reporting requirements.

TheFRC (including its officers, employees and agents)

accepts no liability for reliance on their review.

LANDSEC ANNUAL REPORT 2025 63

FAIR, BALANCED AND UNDERSTANDABLE

The Committee considered the Company’s

2025 Annual Report in the round and

concluded and recommended to the Board

that, taken as a whole, the 2025 Annual

Report is fair, balanced and understandable.

GOING CONCERN AND VIABILITY STATEMENT

The Committee considers the appropriateness

of adopting the going concern assumption

inpreparing the financial statements and

thegoing concern statement is set out on

pages 46 and 47, along with the viability

statement and the rationale behind the

chosen five-year time horizon.

INTERNAL AUDIT

KPMG has completed audits on Business

Continuity Planning, Movers and Leavers,

Joiners and Procurement. This is in line with

its2024-2025 Internal Audit Plan, with three

audits postponed to ensure that it had a

morein-depth and meaningful review when

undertaken. The Audit Committee has agreed

KPMG’s proposed Internal Audit Plan for the

year ended 31 March 2026.

CORPORATE GOVERNANCE

ANDREGULATION

The Committee considered its compliance

with the Code and the FRC Guidance on

Audit Committees and continues to believe

that it has addressed both the spirit and

the requirements of each. In addition, the

Committee continues to regularly monitor

any changes to the corporate governance

regime and other regulations. In particular,

this year it has considered the Company’s

preparation to comply with the 2024 Code

(effective for our next year-end) and the

Economic Crime and Corporate Transparency

Act 2023.

COMMITTEE CHANGES AND EFFECTIVENESS

We recently announced that Madeleine

Cosgrave would be stepping down from the

Board and the Committee at the AGM in July.

I would like to thank Madeleine for her valued

contributions during her six years as part of

the Committee. I would also like to welcome

Michael Campbell who joined the Board and

Committee on 1 May.

An external Board evaluation was

undertakenduring the year (see process

outlined on page 61) which included a few

recommendations but concluded overall that

the Committee continued to be effective and

I would therefore like to thank all members,

the internal Landsec teams and our external

advisers for their contribution to the

successful operation of the Committee.

JAMES BOWLING, CHAIR

AUDIT COMMITTEE MEETINGS

ATTENDEES AT

MEETINGS TO SUPPORT

THE COMMITTEE

•

Chair of the Board

•

Chief Executive

•

Chief Financial

Officer

•

Head of Governance

and Company

Secretary

•

Deputy Company

Secretary

•

Head of Risk and

Controls

•

Members of the

senior finance team

•

Representatives of

the EY external

audit team

•

Representatives of

the KPMG internal

audit team

PROPERTY

VALUATION

PRESENTATIONS

•

All Directors are

invited to attend

meetings when

CBRE and JLL

property valuation

presentations are

made

COMMITTEE

PRIVATESESSIONS

•

CBRE valuation team

•

JLL valuation team

•

EY external

auditteam

•

KPMG internal

auditteam

LANDSEC ANNUAL REPORT 202564

GOVERNANCE

REPORT OF THE AUDIT COMMITTEE

STRUCTURE AND OPERATIONS

The Audit Committee’s structure and

operations are governed by terms of

reference, which are reviewed annually and

approved by the Board. These were last

approved in November 2024. The Committee

determined that any changes which would be

required to the terms of reference as a result

of the 2024 Code would be reflected in the

next review as the section of the 2024 Code

applicable to the Committee was effective

forperiods starting or after 1 January 2026.

The terms of reference are available on our website:

landsec.com/aboutcorporate-governance/board-

committees.

Set out on page 63 are those Committee

members who regularly attend Audit

Committee meetings. Their attendance

atthemeetings ensures that effective

communication between all relevant parties is

maintained regularly and that the Committee

is fully supported by relevant experts.

The Committee members are all independent

Non-executive Directors and collectively have

a broad range of financial, commercial and

property sector expertise that enables them

to provide oversight of both financial and risk

matters, and to advise the Board accordingly.

The Board determined that James Bowling,

asChair of the Committee, has recent and

relevant financial experience for the purpose

of satisfying the Code. Details of the

experience of all members of the Committee

can be found on pages 51-53.

The Committee works to a structured

programme of activities and meetings to

coincide with key events around our financial

calendar and, on behalf of the Board, provides

oversight of the Group’s risk management

process. Following each meeting, the

Committee Chair reports on the main

discussion points and findings to the Board.

RISK MANAGEMENT

Whilst the Board holds overall responsibility

for overseeing risk and ensuring the effective

operation of a robust risk management and

internal control system, the Audit Committee

is responsible for reviewing the effectiveness

of the risk management and systems of

internal control.

Details on Landsec’s risk management

framework, governance, risk appetite, risk

identification, management and assurance

of risks, along with the principal risks and

uncertainties, can be found on pages 38-45.

These pages outline the roles of the Board,

the Committee, the ELT, business unit

Executive Committees, risk owners and

champions in managing risks.

A risk waterfall on page 41 highlights

whetherrisks are within appetite, enabling

the Committee to monitor changes to

principal risks and assess the appropriateness

of the risk appetite.

The day-to-day operation of the Company’s

internal control and risk management

systems, encompassing financial, operational

and compliance controls has been delegated

to management and risk owners. These

systems align with the FRC’s 2014 ‘Guidance

on Risk Management, Internal Control and

Related Financial and Business Reporting’.

Risk owners are responsible for managing

their respective risks and the associated

control mechanisms within risk appetite.

RISK ASSURANCE AND INTERNAL CONTROL

As part of the Three Lines of Defence Risk

Model (as outlined on pages 39-40), the

Committee monitors the results of the key

controls process, evaluates the control

environment and considers the adequacy of

assurance activities. Independent assurance,

including internal audits conducted by KPMG,

provides insight into the adequacy of controls

and processes. Throughout the year, the

Committee reviewed KPMG’s findings on

keycontrols, programme assurance and

improvements in key financial processes as

part of the agreed annual assurance plan.

Key elements of the Group’s risk management

and internal control systems include a

decentralised risk management framework,

clear organisational responsibilities, robust

governance structures and comprehensive

financial and compliance processes.

Regular activities, such as risk reviews,

internal audit assessments and quarterly

self-certification by management, ensure

these systems remain effective.

The Committee regularly discusses significant

and emerging risks, internal audit findings

and progress on recommended actions.

Inaddition, a whistleblowing process enables

concerns to be brought to the Committee

inaconfidential and anonymous manner

andinvestigated.

The Committee was satisfied that the system

of risk management and internal controls has

been effective throughout the year.

EXTERNAL AUDITOR

EY is Landsec’s external auditor and is

engaged to conduct a statutory audit and

express an opinion on the Company’s and the

Group’s financial statements. A competitive

tender to select the auditor was last carried

out in 2022. Shareholders confirmed the

reappointment of EY at our 2024 Annual

General Meeting.

EY’s audit scope includes a review of the

property valuation process and methodology

using its own chartered surveyors (more

details on pages 66-67), to the extent

necessary to express an audit opinion.

When carrying out its statutory audit work,

EY also has access to a broader range of

employees and different parts of the

business. If it picks up any information as

part of this process, it would report to the

Audit Committee anything that it believes

the Committee should know in order to fulfil

its duties and responsibilities. As audit

partner, Julie Carlyle is authorised to contact

the Committee Chair directly at any time to

raise any matter of concern.

The Audit Committee continued to focus

thisyear on the financial reporting processes,

as well as financial systems transformation,

and the monitoring of risk assessment and

the management and internal controls.

LANDSEC ANNUAL REPORT 2025 65

The Committee monitors the performance

and effectiveness of the external audit and in

addition EY, the CFO and senior finance team

members continue to have regular meetings

to review the audit process.

AUDIT PLAN

EY presented its proposed audit plan as

reviewed by senior management to the

Committee for discussion. The audit scope and

approach was appropriate with consideration

as to the Group’s structure and strategy.

The Committee is keen to ensure that its

auditor feels able to challenge management,

to provide observations or recommendations to

management and the Audit Committee. These

matters may be financial or non-financial and

may be based on fact or opinion (including any

concern over culture or behaviour).

EY attends each Committee meeting,

supported by other meetings held during the

year with the Committee or the Committee

Chair without management being present.

EYcan raise any matter of concern to the

Committee Chair at any time without going

through management. These regular

discussions were useful to the Committee

butno matters of concern emerged.

The Committee was informed that the FRC

had undertaken an Audit Quality Review

ofEY’s audit for our financial statements for

the year ended 31 March 2024, and the FRC

assessed the audit as ‘Good’ indicating that

no key or other findings were identified

INDEPENDENCE AND OBJECTIVITY

The Committee is responsible for monitoring

and reviewing the objectivity and

independence of the external auditor.

In undertaking its annual assessment, the

Committee took into account the UK Ethical

Independence Standards.

The Committee reviewed:

•

the confirmation from EY that it maintains

appropriate internal safeguards in line

withapplicable professional standards,

together with an explanation of the due

diligence process followed to provide such

aconfirmation

•

the mitigation actions taken in seeking

tosafeguard EY’s independent status,

including the operation of policies designed

to regulate the amount of non-audit

services provided by EY and the

employment of former EY employees

•

the tenure of the audit engagement

partner (not being greater than five years);

Julie Carlyle was appointed as EY audit

partner to the Group in July 2022

No Committee member has any connection

with the current auditor.

Taking the above review into account, the

Committee concluded that EY remained

objective and independent in its role as

external auditor.

EY will be appointed for the 31 March 2026

financial year at this year’s Annual General

Meeting, subject to shareholder approval.

The Company has complied with the

Statutory Audit Services Order 2014 for the

year under review.

AUDIT FEE

The audit fees payable to EY for 2024/25

(including the audit of the statutory accounts

and the Group’s joint ventures) are £2.2m

(2023/24: £2.1m excluding fees paid for

prioryears).

NON-AUDIT SERVICES

To help safeguard EY’s objectivity and

independence, we operate a non-audit

services policy that sets out the

circumstances and financial limits within

which EY may be permitted to provide

certainnon-audit services.

The Committee monitors compliance with

the policy, including the prior approvals

required for non-audit services, and approval

levels are as follows:

TABLE 22

Per

assignment

(£)

Aggregate

during the year

(£)

Chief

Financial

Officer

0–25,000 <100,000

Audit

Committee

Chair

25,000–

100,000

100,000–

1,050,000*

Committee >100,000

*50% of the prior year audit fee.

All approvals are noted at the Audit

Committee meetings.

EY was engaged during the year to provide

non-audit services to the Group relating to

the Company’s half-yearly review, the

sustainability reporting review, the non-

statutory audit of the Security Group and

work in relation to the update of the bond

programme documentation. The Committee

decided that it would be in the interest of

theCompany to use EY for these services,

recognising that the use of audit firms for

non-audit work should generally be kept to

aminimum and the services were not

considered to impact EY’s independence and

objectivity. Total fees for non-audit services

amounted to £298,000. Details of the fees

charged by EY during the year can be found

innote 8 to the financial statements.

No non-audit fees were approved or paid on

acontingent basis.

1. Limitation of FRC Review: the FRC, its members,

officers, staff and agents accept no liability for

reliance on their review. The review is not intended

to constitute legal or professional advice and should

not be relied upon.

AUDIT VS. NON-AUDIT FEES 2024/25

(INCLUDING THE AUDIT OF THE GROUP’S JOINT VENTURES)

11.5% non-audit fees as a ratio to Group audit fee (excluding the audit of the Group’s joint ventures).

CHART 23

Non-audit

9.8%

Audit

90.2%

LANDSEC ANNUAL REPORT 202566

GOVERNANCE

REPORT OF THE AUDIT COMMITTEE

CONTINUED

EXTERNAL VALUATIONS AND VALUERS

The valuation of the Group’s property

portfolio, including properties held

withinthedevelopment programme and

injoint arrangements, is undertaken by

external valuers. The Group provides input,

such as source data, and support to the

valuation process.

CBRE, appointed in 2015, currently values

theoffice portfolio and some of the

retailportfolio. JLL, appointed in 2022,

undertakes the valuation of a large part

ofthe retail portfolio.

The valuation helps to determine a significant

part of the Group’s total property return and

net asset value, which have consequential

implications for the Group’s reported

performance and the level of variable

remuneration received by senior

management. Accordingly, the scrutiny of

each valuation and the valuer’s objectivity

and effectiveness represent an important

part of the Committee’s work.

Valuations for the half-year results and

full-year results were presented to the

Committee by CBRE and JLL. These were

reviewed and challenged by the Committee,

with reference to each valuer’s approach,

methodology, valuation basis and underlying

property and market assumptions. Other

Non-executive Directors attended the full

and half-year presentations. The Committee

Chair and other members of the Committee

also had separate meetings with each of

thevaluers as part of this process to provide

an opportunity to test and challenge the

valuation outcomes and the principles and

evidence used in the determination.

Additionally, CBRE and JLL met with EY and

exchanged information independently of

management as part of EY’s review of the

valuations. EY has experienced chartered

surveyors on its team who consider the

valuer’s qualifications and assess and

challenge the valuation approach,

assumptions and judgements made by them.

Their audit procedures are targeted at

addressing the risks in respect of the

valuations and the potential for any undue

management influence in arriving at them.

This year 40 properties (83% of the portfolio

by value) were identified for substantive

review based on a range of factors including

a comparison to market movements, in

progress developments, properties with

planned capital expenditure, significant

receivables, voids, exposure to climate risk

and size, amongst others. The Committee

reviewed the auditor’s findings.

The Committee monitored the performance

and effectiveness of the valuers during the

year and also reviewed a proposal in

connection with the Royal Institute of

Chartered Surveyors Red Book UK

Supplement which implements a mandatory

rotation policy for valuers. This proposal will

be implemented during 2026.

The Committee has considered the

independence of CBRE and JLL. Both valuers

have appropriate systems in place to check

for conflicts of interest and must seek

approval for non-valuation activities. Their

valuation departments operate separately

from other advisory activity, and their

valuation remuneration is not linked to other

non-valuation work that they undertake.

A fixed-fee arrangement (subject to

adjustment for acquisitions and disposals)

isin place with the valuers for the valuation

of the Group’s properties and, given the

importance of their work, we have disclosed

the fees paid to them in note 9 to the

financial statements. These fees reflect the

valuers’ work on the year-end and half-yearly

valuations as well as other work on agency

services including investment activity. The

total valuation fees paid by the Company

toCBRE and JLL during the year represented

less than 5% of their total fee income from

allclients for the year.

SIGNIFICANT FINANCIAL MATTERS

The Committee reviewed two significant

financial matters in connection with the

financial statements, namely the valuation

ofthe Group’s property portfolio and

revenuerecognition.

Further details are set out in the table on page 67.

These items were considered to be significant,

taking into account the level of materiality

and the degree of judgement exercised by

management and, in respect of the

valuation, the external valuers.

In addition, the Committee considered, and

made onward recommendations to the Board

as appropriate, other key matters including

acquisitions and disposals, provisions,

pensions, tax-related matters, financial

systems transformation, going concern,

receivables, joint ventures, provisions for

health & safety remediation and other specific

areas of individual property and audit focus.

In respect of the financial systems

transformation, the Committee monitored

the ERP system implementation and was kept

up to date on progress; processes; system

upgrades and improvements; governance;

and risks in the programme. Team members

leading the implementation presented and

responded to the Committee’s challenges

and questions. KPMG provided independent

programme assurance and EY reviewed

programme governance, data migration,

IT general control design and post

implementation hypercare.

The Committee was satisfied that all issues

had been fully and adequately addressed and

that the judgements made were reasonable

and appropriate and had been reviewed

and debated with the external auditor

who concurred with the approach taken

by management.

NON-FINANCIAL MATTERS

The Committee understands the level of

reliance that is placed by shareholders on

the statutory audit and the report of the

external auditor.

We report on alternative performance

measures on page 163. The Committee

debated and discussed these measures

and agreed that they were appropriate for

the business.

FAIR, BALANCED AND UNDERSTANDABLE

The Committee applied the same due

diligence approach adopted in previous years

in order to assess whether the Annual Report

is fair, balanced and understandable, one of

the key Code requirements. The Committee

received assurance from the verification

process carried out on the content of the

Annual Report to ensure consistent reporting

and the existence of appropriate links

between key messages and relevant sections

of the Annual Report.

Taking the above into account, together with

the views expressed by EY, the Committee

recommended, and in turn the Board

confirmed, that the 2025 Annual Report,

taken as a whole, is fair, balanced and

understandable and provides the necessary

information for shareholders to assess the

Company’s position, performance, business

model and strategy.

LANDSEC ANNUAL REPORT 2025 67

WHISTLEBLOWING POLICY

The Audit Committee provides a regular

whistleblowing update to the Board, which

has overall responsibility for whistleblowing.

The Audit Committee reviews the Group’s

Speak Up policy which allows employees and

third parties to report concerns about

suspected impropriety or wrongdoing

(whether financial or otherwise) on a

confidential basis, and anonymously if

preferred. This includes an independent

third-party reporting facility comprising a

telephone hotline and an alternative online

process. Any matters reported are initially

investigated by the Head of Governance and

Company Secretary, reported to the Audit

Committee Chair and the Non-executive

Director responsible for whistleblowing and

escalated to the Committee and Board.

During the year four whistleblowing incidents

were reported. All matters were investigated

and appropriate actions or changes were

implemented where this was deemed

necessary, and the Audit Committee was

kept appraised of the details.

We monitor whistleblowing awareness and

remind employees that a dedicated hotline

exists should they ever need to ‘blow the

whistle’. The arrangements also form part of

the induction programme for new employees.

Details of the whistleblowing hotline are

included in our Supply Chain Commitment,

Sustainable Development Toolkit, procurement

tender documentation, on our website, and

atour assets and development sites.

SIGNIFICANT FINANCIAL MATTERS

SIGNIFICANT FINANCIAL MATTERS – WHAT IS THE RISK? HOW THE COMMITTEE ADDRESSED THE MATTERS

Valuation of the Group’s property portfolio

(includinginvestment properties, investment

properties held in joint ventures)

The valuation of the Group’s property portfolio is a

majordeterminant of the Group’s performance and

drives an element of the variable remuneration for

seniormanagement. Although the portfolio valuation

isconducted by an external valuer, valuation estimates

are inherently subjective and require significant

judgements to be made by management and valuers.

Significant assumptions and judgements made by the

valuer in determining valuations may include the

appropriate yield (based on recent market evidence),

changes to market rents (ERVs), what will occur at the

end of each lease, the level of non-recoverable costs

andalternative uses. Development valuations also

include assumptions around costs to complete the

development, the level of letting at completion,

incentives, lease terms and the length of time the

spaceremains void.

The Audit Committee adopts a formal approach by which the valuation process,

methodology, assumptions and outcomes are reviewed and robustly challenged.

This includes separate review and scrutiny by management, the Committee Chair

and the Committee itself. The Group uses CBRE and JLL, both leading firms in the

UK property market, as its principal valuers. It also involves EY as the external

auditor which is assisted by its own specialist team of chartered surveyors who

are familiar with the valuation approach andthe UK property market.

EY met with the valuers separately from management and has noted, as part

ofits procedures, no undue influence being exerted by management in relation

tothe valuers arriving at their valuations.

CBRE and JLL submit their valuation reports to the Committee as part of the

half-yearly and full-year results process. Both valuers were asked to attend and

present their reports to the Board and to highlight any significant judgements

made or disagreements which existed between them and management.

Therewere no disagreements identified and the valuations were accepted

forreporting purposes.

Based on the degree of oversight and challenge applied to the valuation

process,the Committee concluded that the valuations had each been

conductedappropriately, objectively and in accordance with the valuer’s

professional standards.

Revenue recognition (including the timing of revenue

recognition and the treatment of lease incentives)

Certain transactions require management to make

judgements asto whether and to what extent

theyshould be recognised as revenue in the year.

Marketexpectations and EPRA earnings targets may

place pressure on management to distort revenue

recognition. This may result in overstatement or

deferralof revenues to assist in meeting current or

future targets or expectations, including through

incorrect treatment oflease incentives.

The Committee and EY considered the main areas of judgement exercised by

management in accounting for matters related to revenue recognition, including

timing and treatment of rents, incentives, surrender premiums and other

property-related revenue.

In its assessment, the Committee considered all relevant facts, challenged the

recoverability of occupier incentives, the options that management had in terms

of accounting treatment and the appropriateness of the judgements made by

management. These matters had themselves been the subject of prior discussion

between EY and management.

The Committee, having considered the views of EY, concurred with the

judgements made by management and was satisfied that the revenue reported

for the year had been appropriately recognised.

The above description of the significant financial matters should be read in conjunction with the Independent Auditor’s Report on pages 84-91

and the significant accounting policies disclosed in the notes to the financial statements.

LANDSEC ANNUAL REPORT 202568

GOVERNANCE

DIRECTORS’ REMUNERATION REPORT –

CHAIR’S ANNUAL STATEMENT

COMMITTEE MEMBERS

‡ Christophe Evain

(CommitteeChair)

‡ Edward Bonham Carter

(until11 July 2024)

‡ Sir Ian Cheshire

‡ Moni Mannings

‡ Manjiry Tamhane

KEY RESPONSIBILITIES

•

Reviewing the link between

reward and the Group’s purpose

and strategy

•

Oversight of the Directors’

Remuneration Policy and reward

matters across the Group

•

Maintaining a strong connection

between returns to shareholders

and reward for executives

MEETINGS AND ADVISERS

•

Three scheduled meetings with

full attendance from members at

all meetings

•

Meetings are normally also

attended by the Chief Executive,

Chief People Officer and Group

Reward Manager

•

No individual is involved in

discussions on their own

remuneration

•

FIT Remuneration Consultants

LLP provide independent advice

to the Committee

DEAR SHAREHOLDER

I am pleased to present

theDirectors’ Remuneration

Report for the year ended

31 March 2025.

This report is split into two sections being:

(i)this Annual Statement; and (ii) the Annual

Report on Remuneration. The Directors’

Remuneration Policy, which was approved

byshareholders in 2024, is available on our

website: landsec.com/aboutcorporate-

governance/board-committees.

KEY ACTIVITIES DURING 2024/25:

•

reviewing salaries for Executive Directors

and the ELT taking into account wider

workforce salary rises

•

setting, reviewing and finalising targets

and outcomes of incentive plans, and

reviewing variable pay arrangements

atand below Executive Director level

•

consideration of the cascade of incentive

schemes across senior management levels

and agreeing incentive plan award levels

•

monitoring compliance with Executive

Director shareholding requirements, market

developments and shareholder sentiment

on remuneration and oversight of share

plan activity

•

approval of gender and ethnicity pay

gapreporting

•

reviewing proposed share awards for senior

business unit employees (below Board)

which incentivise performance against

newfive-year strategic plan targets

PERFORMANCE FOR FY25

Landsec has delivered strong performance

during the year with EPRA earnings up £3m to

£374m, as strong 5.0% LFL net rental income

growth and lower overhead costs more than

offset the impact from significant disposals

early in year and a rise in finance costs.

EPRAEPS was up 0.4% to 50.3p, in line

withexpectations and well ahead of initial

guidance. Strong 4.2% ERV growth supported

a £119m or 1.1% uplift in portfolio value,

resulting in a 6.4% return on equity and

a1.7% increase in EPRA NTA per share.

These results are considered by the

Committee to be reflected in the variable

payawarded to the Executive Directors

asoutlined in this report.

INCENTIVE PLANS

Annual bonus for 2024/25 was awarded

at83.0% of the maximum for the Chief

Executive (CEO) (124.5% of salary) and 88.8%

of the maximum for the Chief Financial

Officer (CFO) (133.2% of salary). Both the

EPRA earnings and net rental income targets

were between target and maximum and

good progress was made against the

strategic measures.

Vesting of the 2022 Long Term Incentive Plan

(LTIP) Award in 2025 was based on relative

TSR versus FTSE 350 Real Estate peers, TRE

and environmental targets. On the basis of

performance over the three years to 31 March

2025, these awards will vest at 60%.

More detail on bonus awards and LTIP

vestingcan be found in the Annual Report

onRemuneration.

DISCRETION

No discretion was exercised in the year

ended31 March 2025 in respect of the

Executive Directors.

EXECUTIVE REMUNERATION 2025/26

A summary of the proposed implementation

of Remuneration Policy in 2025/26 is included

on pages 74-75.

WIDER WORKFORCE AND EMPLOYEE VOICE

The Committee oversees all remuneration

policies and practices across the Group

andisregularly briefed by the Chief People

Officer. The Committee takes account of

theinterests of all internal and external

stakeholders when making any decisions

onremuneration matters.

In March 2025, I again took the opportunity

tomeet with members of our Employee

Forum(representing the wider Landsec

workforce). Iwas pleased to answer a

numberof questionson the impact of our

strategy on remuneration, sustainability,

theCEO’s salary and remuneration for

Non-executive Directors.

CONCLUSION

I am grateful for the engagement and

support provided by our shareholders

andwelcome your feedback.

Unless otherwise stated in this report,

narrative and tables are unaudited.

CHRISTOPHE EVAIN,

CHAIR,REMUNERATION COMMITTEE

LANDSEC ANNUAL REPORT 2025 69

ANNUAL REPORT ON REMUNERATION

The Annual Report on Remuneration describes how the Directors’ Remuneration Policy has been applied in the financial year ended 31 March 2025

and how the Policy will operate in the financial year ending 31 March 2026. The Directors’ Remuneration Policy is available on our website:

landsec.com/aboutcorporate-governance/board-committees. During the year, the Remuneration Policy operated as intended in terms of

Company performance and quantum, and as a result no changes are proposed to the Policy.

1. REMUNERATION OUTCOMES FOR DIRECTORS DURING THE YEAR

1.1 DIRECTORS’ EMOLUMENTS (AUDITED)

SINGLE FIGURE OF REMUNERATION FOR EACH EXECUTIVE DIRECTOR (£K)

TABLE 24

Base

salary

Benefits

Pension

allowance

Annual

bonus paid

in cash

Annual

bonus

deferred

into

LTIPs

Total

fixed

pay

Total

variable

pay

Executive Directors

Mark Allan 2024/25 878 15 92 439 654 1,209 3,287 985 2,302

2023/24 851 15 89 426 174 1,541 3,096 955 2,141

Vanessa Simms

2024/25 538 82 56 269 448 741 2,134 676 1,458

2023/24 522 82 55 261 122 944 1,986 659 1,327

1. Base salary earned during the year ended 31 March 2025 (with prior year comparatives).

2. The benefits consisted of a car/travel allowance and private medical insurance.

3. The pension contribution was a cash allowance of 10.5% of base salary.

4. Further details of the bonus awards are set out in section 1.3 below.

5. Further details of the estimated LTIP vesting values in respect of the 2022 LTIP Awards are set out in section 1.4 below. LTIP values in respect of the prior year have been updated

to reflect actual values at vesting, rather than the estimates presented last year (calculation based on a closing share price of 625.50 pence on the 25 June 2024 vesting date)

and the estimated value of dividend equivalents up to vesting.

6. In addition to the above, Vanessa Simms participated in the Sharesave at the maximum monthly savings limit (£500) and participated in the Share Incentive Plan from

February 2024.

SINGLE FIGURE OF REMUNERATION FOR EACH NON-EXECUTIVE DIRECTOR (£K)

TABLE 25

Fees

Benefits Total

Non-executive Directors

Ian Cheshire 2024/25 384 – 384

2023/24 375 – 375

Moni Mannings

2024/25 89 – 89

2023/24 22 – 22

James Bowling

2024/25 94 – 94

2023/24 52 – 52

Louise Casey

2024/25 19 – 19

Madeleine Cosgrave 2024/25 74 – 74

2023/24 72 – 72

Christophe Evain 2024/25 94 – 94

2023/24 92 – 92

Miles Roberts 2024/25 74 – 74

2023/24 72 – 72

Manjiry Tamhane 2024/25 74 – 74

2023/24 72 – 72

Former Non-executive Directors

Nicholas Cadbury

2023/24 63 – 63

Edward Bonham Carter

2024/25 21 – 21

2023/24 87 – 87

Cressida Hogg

2023/24 49 – 49

1. Fees paid to Directors during the year ended 31 March 2025 (with prior year comparatives).

2. James Bowling joined the Board in September 2023, Moni Mannings in December 2023 and LouiseCasey in January 2025.

3. Cressida Hogg left the Board in May 2023, Nicholas Cadbury in December 2023 and Edward Bonham Carter in July 2024.

1.2 PAYMENTS TO FORMER DIRECTORS

As disclosed last year, 139,008 LTIP awards held by Colette O’Shea vested in July 2024 with a pre-tax value at vesting of £621K (including dividend

equivalents). No other payments have been made in respect of the year ended 31 March 2025.

LANDSEC ANNUAL REPORT 202570

GOVERNANCE

1.3 ANNUAL BONUS OUTTURN

In the year under review, Executive Directors had the potential to receive a maximum annual bonus of up to 150% of base salary. Of this, 105%

ofsalary was dependent on meeting Group financial targets and 45% of salary was dependent on meeting strategic objectives including ESG

objectives. Alltargets were set at the beginning of the year. The following table confirms the targets and their respective outcomes.

ANNUAL BONUS PERFORMANCE SUMMARY FOR 2024/25

TABLE 26

Measure Weighting Description Threshold Target Maximum Actual

EPRA 35% EPRA Earnings £335m £350m £380m £374m (90% of max)

LFL NRI 35% Like for like net rental income growth

+1% +2.4% +5.1% +4.3% (85.2% of max)

Strategic 30% Strategic objectives including ESG Between target and stretch (see below)

Total 100% 25% 50% 100% 83% to 89% of max

1. Based on the pool of assets considered like-for-like at the time of setting targets at the start of the financial year.

STRATEGIC OBJECTIVES

TABLE 27

Target Weighting Description Assessment

ESG – Energy

intensity

(CEO & CFO)

5% Delivery of significant energy intensity reductions across the operational

portfolio with demonstrable progress on our net zero transition investment

plan, specifically commencing Air Source Heat Pump (ASHP) installations.

Targets set were as follows: threshold: a 4% energy intensity reduction and

ASHPs in 3 out of 5 properties, target: a 4.5% energy intensity reduction

and ASHPs in 4 out of 5 properties. Max: a 5% energy intensity reduction

and ASHPs in 5 out of 5 properties.

Target met in full.

A6.6% energy intensity

reduction was delivered

with ASHPs on site at

5properties.

ESG – Embodied

Carbon

(CEO & CFO)

5% Delivery of significant reductions in embodied carbon for new

developments and trialling relevant innovations across the pipeline.

Targets set were as follows: Threshold: 39% average portfolio embodied

carbon intensity reduction and 1 out of 3 stage 4+ developments, target:

40% average portfolio embodied carbon intensity reduction and 2 out of

3 stage 4+ developments, max: 43% average portfolio embodied carbon

intensity reduction and 3 out of 3 stage 4+ developments. In addition,

at least one small scale innovation was to be trialled.

On Target performance

delivered. 41% average

portfolio embodied

carbon intensity

reduction and 3 out of 3

stage 4+ developments.

ESG – D&I

(CEO & CFO)

5% Four measures (one for each pillar of Landsec’s D&I strategy) based on:

(i)diversity of talent shortlists; (ii) diversity of talent development

programmes; (iii) delivering at least a 79%+ inclusion index

(engagementsurvey score); and (iv) adopting inclusive design principles

on all development schemes, with threshold set at two out of four

outcomes achieved, target set at three out of four outcomes achieved

andstretch set at four out of four outcomes achieved.

Target met in full.

Fourout of four

outcomes were

achieved.

Portfolio priorities

(CEO)

10% Three key platform priorities, which were aligned to the Board approved

business plan, as follows: (i) to execute the next phase of the South Bank

net zero strategy; (ii) to mobilise the next phases of Landsec’s urban

mixed-use strategy; and (iii) to invest c.£500m into earnings accretive

major retail investments.

On Target performance

delivered.

Platform priorities

(CEO)

5% Three key platform priorities, which were aligned to the Board approved

business plan, as follows: (i) core platform modernisation project to be

successfully launched and embedded; (ii) each function to develop a cost

reduction plan; and (iii) to fully embed the talent management framework

with identified short- to medium-term successors for 80% of senior

leaders and 50% of leaders which align with Landsec’s D&I objectives.

Between on target and

maximum performance

delivered.

Platform

modernisation

(CFO)

5% To successfully deliver and embed replacements for the core business

systems in year with business case benefits on track to be delivered.

Target met in full.

Refinancing

(CFO)

5% To refinance the £2.5bn revolving credit facility, to be in place by year-end,

on terms in line with Board approved treasury strategy.

Target met in full.

Operational

efficiency

(CFO)

5% To oversee the formulation and delivery of cost reduction plans aligned

toLandsec’s strategy plan objectives, including financing costs. Full plans

developed by December 2024.

Target met in full.

Total 30% of

bonus

potential

CEO: 72% of max

CFO: 91% of max

ANNUAL REPORT ON REMUNERATION

CONTINUED

LANDSEC ANNUAL REPORT 2025 71

TOTAL ANNUAL BONUS ACHIEVEMENT

TABLE 28

Director

EPRA

(% of max)

NRI

(% of max)

Strategic

(% of max)

Total

(% of max)

Total

(% of salary)

Total

£k

Mark Allan

90.0% 85.2%

72% 83% 124% 1,093

Vanessa Simms 91% 89% 133% 717

In line with our Policy, bonus awards between 50% and 100% of salary will be deferred into shares for one year and bonus awards in excess of

100% of salary will be deferred into shares for two years.

1.4 LONG-TERM INCENTIVE PLAN OUTTURNS

The table below summarises how we have assessed performance in respect of the 2022 LTIP awards granted on 24 June 2022 to Executive

Directors over the three years to 31 March 2025.

TABLE 29

Measure Weighting Description Performance outcome

Outturn

(%of max)

Total Shareholder

Return (TSR)

40% TSR relative to FTSE 350 Real Estate peers, measured

over a three-year period, from 1 April 2022

Threshold

(8%)

Median

Maximum

(40%)

Upper

quartile

Actual

Ranked 1st

out of 19

companies

100%

Total Return on

Equity (TRE)

40% Growth in EPRA NTA per share over the performance

period as adjusted for dividends

Threshold

(8%)

6% p.a.

Maximum

(40%)

11% p.a.

Actual

Below

threshold

(-2%)

ESG

20% Reduction of carbon emissions Threshold

(4%)

27%

Maximum

(20%)

33%

Actual

Above

maximum

(41%)

100%

Total 100% 20% 100% 60%

1. TSR calculated from 1 April 2022 to 31 March 2025 based on the constituents of the FTSE 350 Real Estate (excluding agencies).

2. Average TRE over the three years to 31 March 2025.

3. Carbon emissions, as neutralised for the decarbonisation of the UK electricity grid over the three years to 31 March 2025, reduced by 41% calculated from a 2019/20

baseline (46,297tCO

e).

The value of these awards shown in the single figure table for Mark Allan and Vanessa Simms are as follows:

TABLE 30

Shares granted

Number of shares

thatwillvest

Number of shares

thatwill lapse

Estimated value of

shares vesting

2,5

(£k)

Face value of shares

expected to vest

(£k)

Impact of share

price atvesting

(£k)

Mark Allan 356,042 213,625 142,417 1,209 1,483 -274

Vanessa Simms 218,075 130,845 87,2 3 0 741 908 -167

1. 2022 LTIP award granted on 24 June 2022.

2. Based on the average three-month share price to 31 March 2025 (566 pence).

3. Based on the prevailing share price at the relevant grant date (694.3 pence).

4. The difference between the value of the shares under awards vesting and the value of the shares at grant.

5. Dividend equivalents accrue on 2022 LTIP awards during the vesting and holding period (or to the date of exercise if sooner). An estimated value of the dividend equivalents

will be included in the actual value of the LTIPs at the vesting date which will be presented in the next year’s Annual Report on Remuneration. The actual dividend equivalents

will be credited at the point of exercise.

2. DIRECTORS’ INTERESTS

2.1 TOTAL SHAREHOLDING (AUDITED)

Details of the Directors’ interests, including those of their immediate families and connected persons, in the issued share capital of the

Companyat the beginning and end of the year, together with confirmation of whether the required shareholding has been met are set out

inthetable below.

Executive Directors are expected to meet the minimum shareholding requirements within five years of appointment to the Board. Where the

minimum level is not met, the Executive Director is expected to retain 100% of the shares acquired, net of tax, under any share plan awarded

bythe Company. Non-executive Directors are expected to purchase shares within one year of appointment, as agreed with the Chair.

LANDSEC ANNUAL REPORT 202572

GOVERNANCE

DIRECTORS’ SHARES AS AT 31 MARCH 2025

TABLE 31

Name

Salary/

base fee at

31 March 2025

(£)

Minimum

shareholding

requirements

(% of salary/

base fee)

Required

holding

value

(£)

Holding

(ordinary

shares)

1 Apr 2024

Holding

(ordinary

shares)

31 Mar 2025

Deferred

bonus shares

under holding

period

Value of

holding

(£)

Met

requirement

or building

Mark Allan 882,669 300% 2,648,007 348,528 5 37,9 51

28,596 3,042,088 Met

Vanessa Simms 540,635 200% 1,081,270 108,150 222,541

20,082 1,282,515 Met

Ian Cheshire 386,250 – – 14,840 14,840 – 81,620 –

Moni Mannings 74,300 – – – 4,643 – 25,537 –

James Bowling 94,300 – – 4,557 9,199 – 50,595 –

Louise Casey

74,300 – – – – – – –

Madeleine Cosgrave 74,300 – – 10,535 10,535 – 57,943 –

Christophe Evain 94,300 – – 8,000 8,000 – 44,000 –

Miles Roberts 74,300 – – 3,645 3,645 – 20,048 –

Manjiry Tamhane 74,300 – – 4,473 4,473 – 24,602 –

1. Once the minimum shareholding requirement has been met, the number of shares is frozen with subsequent share price movements disregarded.

2. Figure includes partnership and matching shares held in the Land Securities 2023 Share Incentive Plan (SIP). Since the year-end and up to the date of this report, the

following transactions have taken place under the SIP: (1) Mark Allan was awarded a dividend payment of one share; (2) Vanessa Simms purchased 27 shares and received

27 matching shares.

3. Based on a share price of 550 pence on 31 March 2025 and including the value of any deferred bonus shares, net of notional tax and employee NIC.

4. Louise Casey joined the Board in January 2025.

2.2 OUTSTANDING SHARE AWARDS HELD BY EXECUTIVE DIRECTORS (AUDITED)

The table below shows share awards granted and vested during the year, together with the outstanding and unvested awards at the year-end.

LTIP awards are granted in the form of nil cost options, which may be exercised from the third anniversary of the date of grant, until their expiry

on the tenth anniversary of the date of grant.

OUTSTANDING SHARE AWARDS AND THOSE WHICH VESTED DURING THE YEAR

TABLE 32

Award date

Market price

at award date

(p)

Options

awarded

Options

vested

Market price at

date of vesting

(p) Vesting date

Mark Allan LTIP 25/06/2021 695.4 345,125 207,075 625.50 25/06/2024

24/06/2022

694.3 356,042 24/06/2025

08/06/2023 625.2 411,209 08/06/2026

20/06/2024 609.5 434,455 20/06/2027

Deferred bonus 25/06/2021 695.4 26,959 26,959 625.50 25/06/2024

24/06/2022 694.3 41,008 41,008 629.50 24/06/2024

08/06/2023 625.2 32,859 32,859 645.00 08/06/2024

20/06/2024 609.5 28,596 20/06/2025

Vanessa Simms LTIP 25/06/2021 695.4 211,389 126,833 625.50 25/06/2024

24/06/2022

694.3 218,075 24/06/2025

08/06/2023 625.2 251,865 08/06/2026

20/06/2024 609.5 266,104 20/06/2027

Deferred bonus 25/05/2021 713.4 10,122 10,122 625.50 25/05/2024

24/06/2022 694.3 22,895 22,895 629.50 24/06/2024

08/06/2023 625.2 20,126 20,126 645.00 08/06/2024

20/06/2024 609.5 20,082 20/06/2025

1. See section 1.4 in respect of the vesting of the 2022 LTIP awards over three-year performance to 31 March 2025.

ANNUAL REPORT ON REMUNERATION

CONTINUED

LANDSEC ANNUAL REPORT 2025 73

2.3 SHARE AWARDS GRANTED IN THE YEAR ENDED 31 MARCH 2025

Awards were granted under the LTIP in June 2024, subject to performance conditions measured over a three-year performance period.

Awardsmaynormally be exercised between 20 June 2027 and 20 June 2034 and a two-year post-vesting holding period applies.

TABLE 33

Number of awards Basis of grant Share price (p)

Face value (£)

Mark Allan 434,455 300% 609.5 2,648,003

Vanessa Simms 266,104 300% 609.5 1,621,904

1. Face value of awards has been determined based on the closing share price on the trading day immediately prior to the date of grant.

The performance targets attached to the June 2024 LTIP awards were as follows:

LTIP 2024-2027: 300% OF SALARY

TABLE 34

Measure Weighting Description Performance range

TSR 40% TSR relative to the constituents of the FTSE 350 Real Estate

Index (excluding agencies), measured over a three-year period,

from 1 April 2024.

Threshold (8%)

Median

Maximum (40%)

Upper quartile

TRE 35% Growth in EPRA NTA per share over the three-year

performanceperiod as adjusted for dividends.

Threshold (7%)

4% p.a.

Maximum (35%)

11% p.a.

ESG 15% Reduction of carbon emissions over the three-year

performanceperiod.

Threshold (3%)

18.6%

Maximum (15%)

25.0%

D&I 5% Delivery of D&I strategy based on Board approved 2030 gender

targets – female representation at Leader level in 2027.

Threshold (1%)

38%

Maximum (5%)

43%

5% Delivery of D&I strategy based on our Board approved 2030

ethnicity targets – ethnic minority representation at Leader

level in 2027.

Threshold (1%)

Maximum (5%)

16%

1. Vesting takes place on a straight-line basis between threshold and maximum values.

Awards were granted under the Deferred Share Bonus Plan in June 2024. Awards may normally be exercised between 20 June 2025 and 20 June 2029.

TABLE 35

Number of awards Vesting date Share price (p)

Face value (£)

Mark Allan 28,596 20/06/2025 609.5 174,293

Vanessa Simms 20,082 20/06/2025 609.5 122,400

1. Face value of awards has been determined based on the closing share price on the trading day immediately prior to the date of grant.

2.4 DIRECTORS’ OPTIONS OVER ORDINARY SHARES (AUDITED)

The options over shares set out below relate to the Land Securities Group PLC Sharesave scheme (Sharesave).

OUTSTANDING GRANTS AND THOSE WHICH WERE EXERCISED DURING THE YEAR

TABLE 36

Number of

options at

1 April 2024

Option price

per share

(p)

Number of

options granted

in year to

31 March 2025

Number

options

exercised/

lapsed

Market price

at exercise

(p)

Number of

options at

31 March 2025 Exercisable dates

Vanessa Simms 3,082 584 – 3,082 618.0 – 08/2024-02/2025

– 529.8 3,501 – – 3,501 08/2027-02/2028

1. The exercise price for the Sharesave awards was determined based on a three-day average mid-market share price prior to the invitation date of the scheme, discounted by20%.

LANDSEC ANNUAL REPORT 202574

GOVERNANCE

2.5 DIRECTORS’ SERVICE CONTRACTS AND LETTERS OF APPOINTMENT

DATES OF APPOINTMENT FOR DIRECTORS

TABLE 37

Name Date of appointment

Date of contract/

Letter of Appointment

Executive Directors

Mark Allan 14 April 2020 21 November 2019

Vanessa Simms 4 May 2021 27 October 2020

Non-executive Directors

Ian Cheshire 23 March 2023 19 January 2023

Moni Mannings 11 December 2023 8 December 2023

James Bowling 7 September 2023 26 July 2023

Michael Campbell 1 May 2025 19 March 2025

Louise Casey 1 January 2025 27 September 2024

Madeleine Cosgrave 1 January 2019 22 November 2018

Christophe Evain 1 April 2019 14 March 2019

Miles Roberts 19 September 2022 1 August 2022

Manjiry Tamhane 1 March 2021 29 January 2021

1. Anne Richards will join the Board on 1 September 2025 (her Letter of Appointment is dated 19 March 2025).

3. REMUNERATION ADVICE

The Committee received advice on remuneration and ancillary share plan matters from FIT. FIT is a member of the Remuneration Consultants

Group and is a signatory to its Code of Conduct, which requires its advice to be impartial. The Committee is satisfied that its advice is

independent and objective. Aside from some support on senior leader remuneration matters, FIT has no other connection with the Group.

Forthefinancial year under review, FIT received fees of £69,534 for advisory services to the Committee (2023/24: £126,028).

4. APPLICATION OF POLICY FOR 2025/26

The Directors’ Remuneration Policy is available on our website: landsec.com/aboutcorporate-governance/board-committees.

4.1 EXECUTIVE DIRECTORS’ BASE SALARIES

From 1 June 2025, Executive Director salaries will increase by 2.5%. Pay rises across the wider workforce will generally be in the range of 2.5% and3.5%.

TABLE 38

Name

Current salary

(£k)

From 1 June 2025

(£k)

Percentage

increase

Mark Allan 883 905 2.5%

Vanessa Simms 541 554 2.5%

ANNUAL REPORT ON REMUNERATION

CONTINUED

LANDSEC ANNUAL REPORT 2025 75

4.2 NON-EXECUTIVE DIRECTORS’ FEES

The fees for the Chair and the Non-executive Directors for 2025/26 are presented below. Base fees for the Chair and the Non-executive Directors

will increase from 1 June 2025 by 2.5% (aligned to the level of increase for Executive Directors and below the level of the wider workforce). In line

with the Committee’s terms of reference, no individual was involved in the decisions relating to their own remuneration.

TABLE 39

Current base fee

(£k)

From 1 June 2025

(£k)

Percentage

increase

Chair 386 396 2.5%

Non-executive Director 74 76 2.5%

Additional fees

Audit/Remuneration Committee Chair 20 20 0%

Senior Independent Director 15 15 0%

4.3 PERFORMANCE TARGETS FOR THE COMING YEAR

The weighting on financial performance is 70% of bonus potential to ensure focus on our key financial performance metrics. For FY26, LFL Net

Rental Income Growth (30% weighting) and EPRA Earnings (20% weighting) will be retained as financial measures, and loan to value has been

added as a third financial metric with a 20% weighting, recognising the importance of balance sheet management in the year ahead.

The remaining 30% will continue to be based on strategic targets. The number of strategic objectives will normally be limited to no more than

seven objectives, with at least three relating to Landsec’s ESG agenda (delivering on our environmental and D&I strategies) with the remaining

objectives relating to other aspects of Landsec’s balanced scorecard.

Challenging sliding scale targets will operate and the Remuneration Committee will retain discretion to ensure any payouts against the targets

reflect the underlying performance of the Company. Performance targets are considered to be commercially sensitive although will be disclosed

in full, together with the performance and the resulting bonus awards, in next year’s Directors’ Remuneration Report.

ANNUAL BONUS 2025/26 PERFORMANCE CRITERIA: AWARDS CAPPED AT 150% OF SALARY

TABLE 40

Measure Weighting Description

EPRA earnings 20% EPRA earnings performance versus budgeted performance

LFL NRI 30% LFL net rental income percentage growth targets

LTV 20% Loan to value targets

Strategic objectives 30% Six individual objectives including two covering environmental targets and one on diversity and inclusion

In respect of the 2025 LTIP awards, reflecting Landsec’s:

•

continued focus on delivering returns to shareholders through the cycle, we will continue to operate: (i) relative Total Shareholder Return targets

against FTSE 350 sector peers excluding agencies (weighting at 40%), and (ii) Total Return on Equity, being the percentage change in EPRA Net

Tangible Assets per share plus dividends (weighting at 35%)

•

industry-leading approach to ESG, we will continue to operate carbon reduction targets based on our ambitious, science-based plans to

transition to net zero across the value chain by 2040 (weighting at 15%); and D&I targets will again be operated (weighting 10%)

LTIP 2025-2028 PERFORMANCE CRITERIA: 300% OF SALARY

TABLE 41

Measure Weighting Description Performance range

TSR 40% TSR relative to the selected constituents of the FTSE 350 Real

Estate Index (excluding agencies), measured over a three-year

period from 1 April 2025.

Threshold (8%)

Median

Maximum (40%)

Upper quartile

TRE 35% Growth in EPRA NTA per share over the three-year performance

period as adjusted for dividends.

Threshold (7%)

4% p.a.

Maximum (35%)

11% p.a.

ESG – carbon

emissions

15% Reduction of carbon emissions over the three-year performance

period aligned to achieve our updated science-based target

by2030.

Threshold (3%)

12%

Threshold (15%)

18%

ESG – D&I 5% Delivery of our refreshed D&I strategy based on our Board

approved 2030 gender targets – female representation at

Leader level in 2028.

Threshold (1%)

39%

Threshold (5%)

44%

5% Delivery of our refreshed D&I strategy based on our Board

approved 2030 ethnicity targets – ethnic minority

representation at Leader level in 2028.

Threshold (1%)

10%

Maximum (5%)

16%

Total LTIP 100%

1. Vesting takes place on a straight-line basis between threshold and maximum values.

LANDSEC ANNUAL REPORT 202576

GOVERNANCE

5. TOTAL SHAREHOLDER RETURN AND CHIEF EXECUTIVE PAY

The following graph illustrates the performance of the Company measured by TSR (share price growth plus dividends paid) against a ‘broad

equity market index’. As the Company is a constituent of the FTSE 350 Real Estate Index, this is considered to be the most appropriate benchmark

for the purposes of the graph. An additional line to illustrate the Company’s performance compared with the FTSE 100 Index over the previous ten

years is also included.

This graph shows the value, by 31 March 2025, of £100 invested in Landsec on 31 March 2015, compared with the value of £100 invested in the

FTSE100 and FTSE 350 Real Estate Indices on the same date.

TOTAL SHAREHOLDER RETURN

CHART 42

Land Securities Group PLC FTSE 100 FTSE 350 Real Estate

100

150

200

Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-22 Mar-24Mar-23Mar-21 Mar-25

Value (£) (rebased)

117117

126

103

125

146

153

166

186

101

100

102

123

The following table shows remuneration for the Chief Executive over a period of ten years.

CHIEF EXECUTIVE REMUNERATION OVER TEN YEARS

TABLE 43

Year Chief Executive

Single figure of

total remuneration

(£k)

Annual bonus

payment

(% of maximum)

Long-term

incentive vesting

(% of maximum)

2025 Mark Allan 3,287 83.0 60.0

2024 Mark Allan 3,096

47. 0 60.0

2023 Mark Allan 2,628 50.0 3 7.7

2022 Mark Allan 2,000 90.4 0.0

2021 Mark Allan 2,920

16.2 n/a

2020 Robert Noel 1,569 43.8 0.0

2019 Robert Noel 1,624 50.5 0.0

2018 Robert Noel 1,693 58.8 0.0

2017 Robert Noel 2,692 58.8 50.0

2016 Robert Noel 2,011 67. 5 13.1

1. LTIP values in respect of the prior year have been updated to reflect actual values at vesting (rather than the estimates presented last year) and estimated dividend

equivalents over the vesting period. Calculation based on a closing share price of 625.50 pence on the 25 June 2024 vesting date. See section 1.1.

2. Includes £1,692,042 in relation to buyout awards made on appointment.

ANNUAL REPORT ON REMUNERATION

CONTINUED

LANDSEC ANNUAL REPORT 2025 77

6. THE CONTEXT OF PAY AT LANDSEC

6.1 PAY ACROSS THE GROUP

A. SENIOR MANAGEMENT

For the year under review, bonus payments to our 38 most senior employees (excluding the Executive Directors) ranged from 42% to 100% of salary

(2023/24: 22% to 69%), equating to 134% to 195% of target. The average bonus was 54% of salary (2023/24: 38%), equating to 155% of target.

B. ALL OTHER EMPLOYEES

From 1 June 2025, Executive Director salaries will increase by 2.5%. The pay rise across the wider workforce will increase by 3% and will generally

be in the range of 2.5% and 3.5%.

As at 31 March 2025, the ratio of the base salary of the Chief Executive to the average base salary across the Group (excluding Executive

Directors) was 13:1 (£882,669:£65,997).

C. PERCENTAGE CHANGE IN REMUNERATION BETWEEN DIRECTORS AND EMPLOYEES

The table below shows the year-on-year percentage change in salary, benefits and annual bonus earned for all current Directors compared to

allemployees.

TABLE 44

2020/21 2021/22 2022/23 2023/24 2024/25

Salary/

fee

change

(%)

Benefits

change

(%)

Bonus

change

(%)

Salary/

fee

change

(%)

Benefits

change

(%)

Bonus

change

(%)

Salary/

fee

change

(%)

Benefits

change

(%)

Bonus

change

(%)

Salary/

fee

change

(%)

Benefits

change

(%)

Bonus

change

(%)

Salary/

fee

change

(%)

Benefits

change

(%)

Bonus

change

(%)

Executive Directors

Mark Allan – – – 9 (75) 479 3 (3) (43) 4 (50) (3) 3 (1) 82

Vanessa Simms – – – – – – 13 24 (38) 4 161 2 3 – 87

Colette O’Shea

3 (3) (65) 5 – 389 (49) (50) (71) – – – – – –

Non-executive Directors

Ian Cheshire – – – – – – – – – – – – 3 – –

Cressida Hogg

(5) – – 5 – – – – – – – – – – –

Moni Mannings – – – – – – – – – – – – – – –

Edward Bonham Carter

(15) – – 3 – – – – – 2 – – – – –

James Bowling – – – – – – – – – – – – – – –

Nicholas Cadbury

(5) – – 5 – – – – – – – – – – –

Louise Casey

– – – – – – – – – – – – – – –

Madeleine Cosgrave (5) – – 5 – – – – – 3 – – 3 – –

Christophe Evain 16 – – 7 – – – – – 2 – – 3 – –

Miles Roberts – – – – – – – – – – – – 3 – –

Manjiry Tamhane – – – – – – – – – 3 – – 3 – –

Average employee 7 6 (49) (1) 2 219 15 25 (12) 6 (5) 2 3 (1) 39

1. Colette O’Shea left the Board in September 2022. Cressida Hogg left the Board in May 2023. Nicholas Cadbury left the Board in December 2023. Edward Bonham Carter left

the Board in July 2024.

2. Louise Casey joined the Board in January 2025.

3. Reflects the increase to base fees for Non-executive Directors awarded in 2024 for those serving in the full year 2023/24 and 2024/25.

LANDSEC ANNUAL REPORT 202578

GOVERNANCE

D. CEO PAY RATIO

The tables below show how pay for the CEO compares to employees at the lower, median and upper quartiles (calculated on a full-time

equivalent basis). The ratios have been calculated in accordance with Option A of The Companies (Miscellaneous Reporting) Regulations 2018,

which uses the total pay and benefits for all employees, and is the same methodology that is used to calculate the CEO’s single figure of

remuneration table on page 69. Figures are calculated by reference to 31 March 2025 using actual pay data from April 2024 to March 2025.

Excluded from our analysis are joiners, leavers and long-term absentees from the Company during the year. As the CEO has a larger proportion

ofhis total remuneration linked to business performance than other employees in the UK workforce, the ratio has increased versus last year

primarily as a result of the increase in the bonus award (83% of maximum compared to 47% of maximum for the prior year). Given the alignment

of incentive arrangements which are cascaded below Board level, the Remuneration Committee believes the pay ratios are consistent with the

pay, reward and progression policies for the Group’s UK employees taken as a whole.

TABLE 45

Year Method 25th percentile pay ratio Median pay ratio 75th percentile pay ratio

2024/25 Option A 55:1 35:1 24:1

2023/24

Option A 48:1 31:1 20:1

2022/23 Option A 47:1 29:1 18:1

2021/22 Option A 40:1 25:1 16:1

2020/21 Option A 22:1 14:1 10:1

2019/20 Option A 36:1 23:1 15:1

CEO pay P25 pay P50 pay P75 pay

Salary £878,384 £48,235 £66,135 £94,099

Total pay

2,3

£3,287,959 £59,798 £93,604 £139,246

1. The CEO pay ratios for 2023/24 have been updated to reflect the actual value at vesting for the CEO as detailed in section 1.1.

2. Employees may now participate in our Share Incentive Plan, however this has not been included in the calculations above.

3. Calculations exclude estimated dividend equivalents.

E. TOTAL PAY AND BENEFITS

TABLE 46

Lower quartile (25th percentile) Median Upper quartile (75th percentile)

Year Method

Total Pay

andBenefits

Total

Salary

Total Pay

andBenefits

Total

Salary

Total Pay

andBenefits

Total

Salary

2024/25 A £59,798 £48,235 £93,604 £66,135 £139,246 £94,099

2023/24 A £59,126 £46,421 £93,298 £69,126 £142,521 £102,767

2022/23 A £55,502 £43,811 £89,395 £64,851 £1 47,119 £104,813

2021/22 A £50,620 £38,038 £79,746 £58,083 £122,832 £7 7,6 0 0

2020/21 A £45,752 £39,000 £73,212 £55,776 £105,848 £77,000

2019/20 A £44,140 £29,785 £69,393 £58,565 £104,438 £79,203

ANNUAL REPORT ON REMUNERATION

CONTINUED

LANDSEC ANNUAL REPORT 2025 79

6.2 THE RELATIVE IMPORTANCE OF SPEND ON PAY

The table below shows the total spend on pay for all Landsec employees, compared with our returns to shareholders in the form of dividends.

TABLE 47

March 2025

(£m)

March 2024

(£m)

change

Spend on pay

77 71 8

Dividend paid

297 291 2

1. Including base salaries for all employees, bonuses and share-based payments.

2. Dividend paid represents dividends declared for the year. See note 11 to the financial statements.

7. DILUTION

Awards granted under the Company’s long-term incentive arrangements (The Land Securities Group Omnibus Share Plan 2024, Land Securities

2015 Long-Term Incentive Plan, Deferred Share Bonus Plan, Restricted Share Plan and the Land Securities 2015 Executive Share Option Plan) are

satisfied through the funding of an Employee Benefit Trust (EBT) (administered by an external trustee) which acquires existing Land Securities

Group PLC shares in the market. The EBT held 2,061,915 ordinary shares at 31 March 2025 (2023/24: 3,119,107). The exercise of share options under

theLand Securities Group PLC Sharesave, which is open to all employees who have completed more than one month’s servicewith the Group,

canbe satisfied by the allotment of newly issued shares. At 31 March 2025, the total number of shares which could be allotted under this Scheme

was 539,248 shares (2023/24: 538,608), which represents less than 0.07% (2023/24: 0.07%) of the issued share capital of the Company.

8. SHAREHOLDER ENGAGEMENT AND 2024 AGM VOTING

At our AGM on 11 July 2024, the Directors’ Remuneration Policy secured 97.63% votes for and 2.37% votes against (with 37,565 votes withheld).

TheDirectors’ Remuneration Policy is available on our website: landsec.com/aboutcorporate-governance/board-committees. TheAnnual

Report on Remuneration secured 96.71% votes for and 3.29% votes against (with 26,388 votes withheld). A vote withheld is not a votein law.

There have been no requests for engagement with shareholders on matters relating to remuneration during the year although remuneration

hasbeen covered in wider governance meetings with shareholders and the Chair of the Board.

9. CODE PROVISION 40

The Committee has considered the factors set out in provision 40 of the Code. In the Committee’s view, the current Policy addresses those factors

as set out in the Remuneration Policy available on our website: landsec.com/aboutcorporate-governance/board-committees.

10.

COMMITTEE EFFECTIVENESS

At the end of the year, as part of the Board evaluation process which was externally facilitated, the Committee reviewed its effectiveness.

Therewere a few recommendations, however overall the outcome was positive and the Committee was considered to be operating effectively.

The Committee also reviewed its adviser, FIT, and confirmed itcontinued to be satisfied with its performance.

The Directors’ Remuneration Report was approved by the Board on 15 May 2025 and signed on its behalf by:

CHRISTOPHE EVAIN,

CHAIR,REMUNERATION COMMITTEE

LANDSEC ANNUAL REPORT 202580

GOVERNANCE

The Directors present their report for the year

ended 31 March 2025.

ADDITIONAL DISCLOSURES

Other information that is relevant to this

report, and which is also incorporated by

reference, including information required

inaccordance with the Companies Act 2006

and UK Listing Rule 6.6.1, can be located

asfollows:

TABLE 48

Pages

Likely future developments in

thebusiness

02-05

Employee engagement 25-27

Events after the reporting period 151

Going concern and viability

statement

46-47

Governance

(includingremuneration)

50-82

Capitalised interest 17-19

Financial instruments 134

Credit, market and liquidity risks 134-138

Related party transactions 149

Energy and carbon reporting 160-162

Workforce engagement 25

Stakeholders 22-24

Section 172 Statement 22-24

UK CORPORATE GOVERNANCE CODE

The Company has complied throughout the

year with all relevant provisions of the Code.

The Code can be found on the FRC’s website:

frc.org.uk

COMPANY STATUS

Land Securities Group PLC is a public limited

liability company incorporated under UK law.

It has a premium listing on the London Stock

Exchange main market for listed securities

(LSE:LAND) and is a constituent member of

the FTSE 100 Index.

Landsec is a Real Estate Investment Trust

(REIT). It is expected that the Company,

which has no branches, will continue to

operate as the holding company of the

Group. A Dividend Reinvestment Plan (DRIP)

election is currently available in respect of

alldividends paid by Landsec.

DIRECTORS’ REPORT

DIVIDENDS

The results for the year are set out in the financial statements on pages 92-151.

The Company has paid three interim dividends to shareholders for the year under review.

Thefirst interim dividend of 9.2 pence was paid to shareholders in October 2024, a second

interim dividend of 9.4 pence was paid to shareholders in January 2025; and a third interim

dividend of 9.5 pence per share was paid to shareholders in April 2025. A final dividend of

12.3pence per share is being put to shareholders for approval at the AGM in July 2025.

TABLE 49

1st Interim

2024/25

2nd Interim

2024/25

3rd Interim

2024/25

Final 2024/25

(proposed)

Amount 9.2 pence

9.4 pence

9.5 pence

12.3 pence

Record date 23 August 2024 29 November 2024 21 February 2025 13 June 2025

Payment date 4 October 2024 8 January 2025 11 April 2025 25 July 2025

1. Property income distribution (PID).

2. Non-property income distribution (non-PID), ordinary dividend.

Whilst Landsec’s dividend policy in recent

years has been to distribute three quarterly

dividends, followed by a final dividend, the

Board has approved the move to half-yearly

payments with effect from financial year

2025/26. This move will align Landsec to peers

and our financial reporting timeline in

addition to simplifying the administration.

DIRECTORS

The names and biographical details of the

current Directors and the Board Committees

of which they are members are set out on

pages 51-54.

All the Directors proposed for election and

re-election held office during the financial

year except Madeleine Cosgrave, who will

retire from the Board on the date of the AGM

and therefore will not stand for re-election.

Michael Campbell joined the Board on 1 May

2025, after the year-end but before the

approval of this Report, and will first stand

forelection at the July 2025 AGM.

The Service Agreements for our Executive

Directors and the Letters of Appointment

forour Non-executive Directors are available

for inspection at Landsec’s registered office.

A summary of these documents is also included in

theDirectors’ Remuneration Policy on our website

APPOINTMENT AND REMOVAL

OFDIRECTORS

The appointment and replacement of

Directors is governed by Landsec’s Articles

ofAssociation (‘Articles’), the Code, the

Companies Act 2006 (the ‘Act’) and

relatedlegislation.

The Board may appoint a Director either to fill

a vacancy or as an addition to the Board so

long as the total number of Directors does

notexceed the limit prescribed in the Articles.

An appointed Director must retire and seek

election to office at the next Landsec AGM.

Inaddition to any power of removal conferred

by the Act, Landsec may by ordinary resolution

remove any Director before the expiry of their

period of office and may, subject to the

Articles, by ordinary resolution appoint

another person who is willing to act as a

Director in their place. In line with the Code

itis the Board’s policy that all Directors are

required to stand for re-election at each AGM.

LANDSEC ANNUAL REPORT 2025 81

DIRECTORS’ POWERS

The Board manages the business of Landsec

under the powers set out in the Articles.

Thesepowers include the Directors’ ability

toissue or buy back shares.

Shareholders’ authority to empower the

Directors to make market purchases of up

to10% of the Company’s own ordinary shares

is sought at the AGM each year.

The Articles can only be amended, or new

Articles adopted, by a resolution passed by

shareholders in general meeting and being

approved by at least three quarters of the

votes cast.

DIRECTORS’ INTERESTS

Save as disclosed in the Directors’

Remuneration Report, none of the Directors,

nor any person connected with them, has

any interest in the share or loan capital of

Landsec or any of its subsidiaries. At no time

during the year ended 31 March 2025 did any

Director hold a material interest, directly or

indirectly, in any contract of significance

with Landsec or any subsidiary other than

the Executive Directors in relation to their

Service Agreements.

DIRECTORS’ INDEMNITIES AND INSURANCE

Landsec has agreed to indemnify each

Director against any liability incurred in

relation to acts or omissions arising in the

ordinary course of their duties. The indemnity

applies only to the extent permitted by law.

Acopy of the deed of indemnity is available

for inspection at Landsec’s registered office.

Landsec has appropriate Directors’ & Officers’

Liability insurance cover in respect of

potential legal action against its Directors.

Landsec has a single class of share capital

which is divided into ordinary shares of

nominal value 10

pence each ranking pari

passu. No other securities have been issued

by the Company. At 31 March 2025, there were

751,732,064 ordinary shares in issue and fully

paid. As at 31 March 2025 the number of

shares held by the Company in Treasury is

6,789,236. The voting rights and dividend

entitlements have been waived for the

shares held by Treasury and the EBT.

SHARE CAPITAL

No shares were bought back during the year.

Further details relating to share capital,

including movements during the year, are set

out in note 38 to the financial statements.

At the Company’s AGM held on 11 July 2024,

shareholders authorised the Company to make

market purchases of ordinary shares

representing up to 10% of its issued share

capital at that time and to allot shares within

certain limits approved by shareholders. These

authorities will expire at the 2025 AGM and a

renewal of that authority will be sought.

The Company has received DTR notifications

during the period from 1 April to 15 May 2025,

being the period from the year-end through

to the date on which this report has been

signed and these are indicated as footnotes

to Table 50. DTR notifications are displayed as

RNS announcements on the Investor section

of our website.

EMPLOYEE BENEFIT TRUST

Equiniti Trust (Jersey) Limited continues as

trustee (Trustee) of Landsec’s EBT. The EBT is

used to purchase Land Securities Group PLC

ordinary shares in the market from time to

time for the benefit of employees, including

to satisfy outstanding awards under

Landsec’s various employee share plans.

At 31 March 2025 the EBT held 2,061,915

ordinary shares.

A dividend waiver is in place from the Trustee

in respect of all dividends payable by Landsec

on shares which the EBT holds. Further details

regarding the EBT, and of shares issued

pursuant to Landsec’s various employee share

plans during the year, are set out in notes 37-39

to the financial statements.

SUBSTANTIAL SHAREHOLDERS

As at 31 March 2025, the Company had been notified under the Disclosure and Transparency

Rules (DTR 5) of the following holdings of voting rights in its issued share capital:

TABLE 50

Shareholder name

Number of

ordinary shares

Percentage of total voting rights

attaching to issued share capital

1,2

BlackRock, Inc.

77,264,244 10.36

Schroders Plc 36,781,617 4.96

Legal & General Group Plc 30,213,841 3.99

1. Total number of voting rights attaching to the issued share capital of the Company on 31 March 2025 was

744,942,828.

2. The percentage of voting rights detailed above was calculated at the time of the relevant disclosures made in

accordance with DTR 5.

3. BlackRock, Inc. notified on 14 May 2025 a total voting rights holding of 76,984,137 representing 10.32% of total

voting rights attaching to issued share capital.

LANDSEC ANNUAL REPORT 202582

GOVERNANCE

SHAREHOLDER VOTING RIGHTS AND

RESTRICTIONS ON TRANSFER OF SHARES

All the issued and outstanding ordinary

shares of Landsec have equal voting rights

with one vote per share. There are no special

control rights attached to them save that

thecontrol rights of ordinary shares held in

the EBT can be directed by the Company to

satisfy the vesting of outstanding awards

under its various employee share plans.

In relation to the EBT, the Trustee has agreed

not to vote any shares held in the EBT at any

general meeting. If any offer is made to all

shareholders to acquire their shares in

Landsec, the Trustee will not be obliged to

accept or reject the offer in respect of any

shares which are at the time subject to

subsisting awards and the Trustee may take

such action with respect to an offer as it

thinks fit.

Landsec is not aware of any agreements or

control rights between existing shareholders

that may result in restrictions on the transfer

of securities or on voting rights. The rights,

including full details relating to voting of

shareholders and any restrictions on transfer

relating to Landsec’s ordinary shares, are set

out in the Articles and in the explanatory

notes that accompany the Notice of the 2025

AGM. These documents are available on

Landsec’s website at: landsec.com/agm.

CHANGE OF CONTROL

There are a number of agreements that take

effect, alter or terminate upon a change of

control of the Company following a takeover.

None of these are considered significant.

The Company’s share plans contain provisions

that take effect in such an event but do not

entitle participants to a greater interest in

the shares of the Company than created by

the initial grant or award under the relevant

plan. There are no agreements between the

Company and its Directors or employees

providing for compensation for loss of office

or employment or otherwise that occurs

specifically because of a takeover.

HUMAN RIGHTS AND

EQUALOPPORTUNITIES

Landsec operates a Human Rights Policy

which aims to recognise and safeguard the

human rights of all citizens in the business

areas under our control. We support the

principles set out within both the UN

Universal Declaration of Human Rights

and the International Labour Organization’s

Declaration on Fundamental Principles and

Rights at Work. Our Policy is built on these

foundations including, without limitation,

theprinciples of equal opportunities,

collective bargaining, freedom of association

and protection from forced or child labour.

The Policy takes account of the Modern

Slavery Act that came into force in October

2015 and requires Landsec to report annually

on its workforce and supply chain, specifically

to confirm that workers are not enslaved or

trafficked. Landsec’s Modern Slavery

Statement was last approved by the Board

inJuly 2024 and is available on our website.

Landsec is an equal opportunities employer

and our range of employment policies and

guidelines reflects legal and employment

requirements in the UK and safeguards the

interests of employees, potential employees

and other workers. We do not condone

unfairtreatment of any kind and offer equal

opportunities in all aspects of employment

and advancement regardless of race,

nationality, gender, age, marital status,

sexual orientation, disability, religious or

political beliefs.

Landsec recognises that it has clear

obligations towards all its employees and the

community at large to ensure that disabled

people are afforded equal opportunities to

enter employment and progress. Landsec has

therefore established procedures designed

to provide fair consideration and selection

of disabled applicants and to satisfy their

training and career development needs.

If an employee becomes disabled, wherever

possible Landsec takes steps to provide

reasonable adjustments to their existing

employment arrangements, or by

redeployment and providing appropriate

retraining to enable continued employment

in the Group. Further information can be

found on pages 25-27.

POLITICAL DONATIONS

The Company did not make any political

donations or expenditure in the year that

require disclosure (2024: nil).

AUDITOR AND DISCLOSURE OF

INFORMATION TO THE AUDITOR

So far as the Directors are aware, there is no

relevant audit information that has not been

brought to the attention of the Company’s

auditor. Each Director has taken all

reasonable steps to make himself or herself

aware of any relevant audit information and

to establish that such information was

provided to the auditor.

A resolution to confirm the reappointment

ofErnst & Young LLP (EY) as auditor of the

Company will be proposed at the 2025 AGM.

The reappointment has been recommended to

the Board by the Audit Committee and EY has

indicated its willingness to remain in office.

2025 ANNUAL GENERAL MEETING

This year’s AGM is scheduled to be held

at10.00am on Thursday, 10 July 2025 at

80Victoria Street, London SW1E 5JL.

A separate circular, comprising a letter

fromthe Chair, Notice of Meeting and

explanatory notes in respect of the

resolutions proposed, can be found on

ourwebsite: landsec.com/agm.

DISCLAIMER

The purpose of this Annual Report is to

provide information to the members of the

Company and it has been prepared for, and

only for, the members of the Company as

abody, and no other persons. The Company,

its Directors and employees, agents and

advisers do not accept or assume

responsibility to any other person to whom

this document is shown or into whose hands

it may come and any such responsibility or

liability is expressly disclaimed.

A cautionary statement in respect of

forward-looking statements contained in

thisAnnual Report appears on the inside

backcover of this document.

The Directors’ Report was approved by the

Board on 15 May 2025.

By Order of the Board.

MARINA THOMAS,

COMPANY SECRETARY

Land Securities Group PLC

Company number 4369054

DIRECTORS’ REPORT CONTINUED

LANDSEC ANNUAL REPORT 2025 83

The Directors are responsible for preparing

the Annual Report and the financial

statements in accordance with applicable

law and regulations.

Company law requires the Directors to

prepare financial statements for each

financial year. Under that law the Directors

have prepared the Group and the Company

financial statements in accordance with the

requirements of the Companies Act 2006.

Under the Financial Conduct Authority’s

Disclosure Guidance and Transparency

Rulesand company law, group financial

statements are required to be prepared in

accordance with UK adopted international

accounting standards (IFRSs and IFRICs).

Directors must not approve the financial

statements unless they are satisfied that

theygive a true and fair view of the state

ofaffairs of the Group and the Company

andof the profit and loss of the Group

andthe Company for that period.

In preparing these financial statements,

theDirectors are required to:

•

select suitable accounting policies in

accordance with IAS 8 Accounting Policies,

Changes in Accounting Estimates and

Errors and then apply them consistently

•

make judgements and accounting

estimates that are reasonable and prudent

•

present information, including accounting

policies, in a manner that provides relevant,

reliable, comparable and understandable

information

•

in respect of the Group financial

statements, state whether international

accounting standards in conformity with

the requirements of the Companies Act

2006 (and UK adopted international

accounting standards) have been followed,

subject to any material departures

disclosed and explained in the financial

statements

•

in respect of the Company financial

statements, state whether international

accounting standards in conformity with

the requirements of the Companies Act

2006 have been followed, subject to any

material departures disclosed and

explained in the financial statements

•

provide additional disclosures when

compliance with the specific requirements

of UK adopted international accounting

standards is insufficient to enable users

tounderstand the impact of particular

transactions, other events and conditions

on the Group’s and Company’s financial

position and performance; and

•

prepare the Group’s and Company’s

financial statements on a going concern

basis, unless it is inappropriate to do so

The Directors are responsible for keeping

adequate accounting records that are

sufficient to show and explain the Group’s

and Company’s transactions and disclose

with reasonable accuracy at any time the

financial position of the Group and the

Company, and to enable them to ensure

thatthe Annual Report complies with the

Companies Act 2006 and as regards the

Group financial statements, Article 4 of the

IAS regulation. They are also responsible for

safeguarding the assets of the Group and the

Company and hence for taking reasonable

steps for the prevention and detection of

fraud and other irregularities.

DIRECTORS’ RESPONSIBILITY STATEMENT

UNDER THE DISCLOSURE AND

TRANSPARENCY RULES

Each of the Directors, whose names and

functions appear below, confirm to the best

of their knowledge:

•

the Group financial statements, which have

been prepared in accordance with

international accounting standards in

conformity with the requirements of the

Companies Act 2006 (and UK adopted

international accounting standards)

•

give a true and fair view of the assets,

liabilities, financial position, performance

and cash flows of the Company and Group

as a whole

•

the Strategic Report contained in the

Annual Report includes a fair review of the

development and performance of the

business and the position of the Group and

the Company, together with a description

of the principal risks and uncertainties

faced by the Group and Company

DIRECTORS’ STATEMENT UNDER THE

UKCORPORATE GOVERNANCE CODE 2018

Each of the Directors confirm that to the

bestof their knowledge the Annual Report

taken as a whole is fair, balanced and

understandable and provides the information

necessary for shareholders to assess the

Group’s and Company’s position, performance,

business model and strategy.

A copy of the financial statements of the

Group is placed on the Company’s website.

The Directors are responsible for the

maintenance and integrity of statutory

andaudited information on the Company’s

website at landsec.com. Information

published on the internet is accessible

inmany countries with different legal

requirements. Legislation in the United

Kingdom governing the preparation and

dissemination of financial statements may

differ from legislation in other jurisdictions.

The Directors of Land Securities Group PLC as

at the date of this report are as set out below:

•

Sir Ian Cheshire, Chair*

•

Mark Allan, Chief Executive

•

Vanessa Simms, Chief Financial Officer

•

Moni Mannings, Senior Independent Director*

•

James Bowling*

•

Michael Campbell*

•

Baroness Louise Casey*

•

Madeleine Cosgrave*

•

Christophe Evain*

•

Miles Roberts*

•

Manjiry Tamhane*

*Non-executive Directors

The Statement of Directors’ Responsibilities

was approved by the Board of Directors on

15 May 2025 and is signed on its behalf by:

MARK ALLAN, VANESSA SIMMS,

CHIEF EXECUTIVE CHIEF FINANCIAL

OFFICER

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

FINANCIAL STATEMENTS

LANDSEC ANNUAL REPORT 202584

FINANCIAL STATEMENTS

OPINION

In our opinion:

•

Land Securities Group PLC’s Group financial statements and Parent company financial statements (the “financial statements”) give a true and

fair view of the state of the Group’s and of the Parent company’s affairs as at 31 March 2025 and of the Group’s profit for the year then ended;

•

the Group financial statements have been properly prepared in accordance with UK adopted international accounting standards;

•

the parent company financial statements have been properly prepared in accordance with UK adopted international accounting standards

as applied in accordance with section 408 of the Companies Act 2006; and

•

the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Land Securities Group PLC (the ‘Parent company’) and its subsidiaries (the ‘Group’) for the year

ended 31 March 2025 which comprise:

Group Parent company

Consolidated balance sheet as at 31 March 2025 Balance sheet as at 31 March 2025

Consolidated income statement for the year then ended Statement of changes in equity for the year then ended

Consolidated statement of comprehensive income for the year then ended Statement of cash flows for the year then ended

Consolidated statement of changes in equity for the year then ended Related notes 1 to 45 to the financial statements, including

material accounting policy information

Consolidated statement of cash flows for the year then ended

Related notes 1 to 45 to the financial statements, includingmaterial

accounting policy information

The financial reporting framework that has been applied in their preparation is applicable law and UK adopted international accounting

standards and as regards the parent company financial statements, as applied in accordance with section 408 of the Companies Act 2006.

BASIS FOR OPINION

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under

those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We believe

that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

INDEPENDENCE

We are independent of the Group and Parent in accordance with the ethical requirements that are relevant to our audit of the financial

statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled our other ethical

responsibilities in accordance with these requirements.

The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Parent company and we remain

independent of the Group and the Parent company in conducting the audit.

CONCLUSIONS RELATING TO GOING CONCERN

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the preparation

of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group and Parent company’s ability to continue

to adopt the going concern basis of accounting included:

•

assessing the risk around going concern in planning our audit, at the interim and again at the year-end phase.

•

confirming our understanding of the Group’s going concern assessment process and reviewing management’s related Board papers.

•

assessing and challenging the appropriateness of the duration of the going concern review period to the end of September 2026 and

considering whether there are any known events or conditions that will occur in the short-term following the going concern period which

would impact our considerations.

•

challenging the key assumptions and inputs used by management within the base case and downside scenarios modelled by management

by comparing to corroborative evidence and searching out independent contradictory evidence.

•

challenging whether sustainability costs identified by management associated with the Net Zero Transition Investment Plan have been

appropriately considered within the base case and downside scenarios modelled by management.

•

assessing and challenging management’s consideration of downside sensitivities taking into account current events and market conditions.

We have applied further sensitivities on income and capital expenditure where appropriate to stress test the impact on both liquidity

and covenants. As part of our sensitivity testing, we considered the perspective of our real estate specialists team on forecast valuation

movements.

•

checking the integrity of the models developed by management for the base case cash flow, liquidity forecasts and covenant calculations

covering the going concern review period to September 2026 and the additional downside scenarios. This has included re-performing

calculations and testing the formulas being applied throughout.

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF LAND SECURITIES GROUP PLC

LANDSEC ANNUAL REPORT 2025 85

•

checking that the terms and conditions of the debt agreements with lenders had been appropriately incorporated into the going concern

scenarios and modelling, including the maturity profile of the Group’s borrowings, the impact of the Security Group structure (as defined

in the Glossary on page 176) and the tiered operating covenant regime.

•

performing testing to evaluate whether the covenant requirements of the debt facilities would be breached under either the base case or the

downside scenarios through the going concern period.

•

challenging the conclusions that both the levels of decline required to breach the covenants and the reverse stress test prepared can be

considered as remote by obtaining external market outlooks in relation to future valuations and reviewing previous declines observed in results.

•

testing on key assumptions and considered the likelihood of outcomes including controllable mitigating actions, which include uncommitted

capital expenditure, acquisitions, disposals and developments, over and above the scenarios modelled.

•

further challenging the cash flow forecasts with reference to historical trends and assessing the outcome of management’s previous forecasts.

•

reviewing the disclosures in the financial statements relating to going concern with a view to confirming that they appropriately disclose the

risk, the impact on the Group’s operations and results and potential mitigating actions.

The results of the mitigated downside scenarios modelled by management indicate that the Group would maintain available facility and

covenant headroom to be able to withstand the impact of plausible downside sensitivities throughout the period of the going concern

assessment to 30 September 2026.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or

collectively, may cast significant doubt on the Group and Parent company’s ability to continue as a going concern for a period to 30 September 2026.

In relation to the Group and Parent company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material

to add or draw attention to in relation to the directors’ statement in the financial statements about whether the directors considered it

appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group’s ability to continue

as a going concern.

OVERVIEW OF OUR AUDIT APPROACH

Audit scope

• The Group operates in the United Kingdom through four segments: Central London, Major retail, Mixed-use urban and

Subscale sectors

• We have identified the Group as one component and performed full scope procedures across the entire Group. The Group audit

team also performed audit procedures on joint venture balances included within the Group financial statements.

Key audit

matters

• The valuation of property, including investment properties and investment properties held in joint ventures.

• Revenue recognition, including service charge income and the treatment of lease incentives.

Materiality • Overall Group materiality of £105m which represents 0.9% of total assets in the Group balance sheet at 31 March 2025. Overall

materiality is applied to account balances related to investment properties and trading properties (either wholly owned or within

the Joint Venture) and loans and borrowings (excluding the related finance expense).

• Specific materiality of £19m, which represents 5% of EPRA Earnings before tax. Specific materiality is applied to account balances

which are not account balances related to investment properties, trading properties (either wholly owned or within the Joint

Venture) and loans and borrowings.

• Parent Company materiality of £48m, which represents 0.9% of total assets in the Parent Company balance sheet. Parent

Company materiality is applied to all balances within the Parent Company.

LANDSEC ANNUAL REPORT 202586

FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT

CONTINUED

AN OVERVIEW OF THE SCOPE OF THE PARENT COMPANY AND GROUP AUDITS

TAILORING THE SCOPE

In the current year our audit scoping has been updated to reflect the new requirements of ISA (UK) 600 (Revised). We have followed a risk-based

approach when developing our audit approach to obtain sufficient appropriate audit evidence on which to base our audit opinion. We performed

risk assessment procedures to identify and assess risks of material misstatement of the Group financial statements and identified significant

accounts and disclosures.

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial statements as a whole,

taking into account the geographic structure of the Group, the accounting processes and controls, and the industry in which the group operates.

We have identified the Group as one component and performed full scope procedures across the entire Group. All work was carried out by the

group audit team.

Our scoping to address the risk of material misstatement for each key audit matter is set out in the Key audit matters section of our report.

CLIMATE CHANGE

Stakeholders are increasingly interested in how climate change will impact Land Securities Group PLC. The Group has determined that the most

significant future impacts from climate change on their operations will be from failure to meet their 2040 science-based net zero target leading

to regulatory, reputational and commercial impact and failure to mitigate physical impact on the Group’s assets. These are explained in the

required Task Force On Climate Related Financial Disclosures and on pages 41-45 in the principal risks and uncertainties. They have also explained

their climate commitments on pages 28-32. All of these disclosures form part of the “Other information,” rather than the audited financial

statements. Our procedures on these unaudited disclosures therefore consisted solely of considering whether they are materially inconsistent

with the financial statements or our knowledge obtained in the course of the audit or otherwise appear to be materially misstated, in line with

our responsibilities on “Other information”.

In planning and performing our audit we assessed the potential impacts of climate change on the Group’s business and any consequential

material impact on its financial statements.

The Group has explained in the basis of preparation note within the financial statements how they have reflected the impact of climate change

in their financial statements including how this aligns with their commitment to achieve net zero emissions by 2040. The impact of climate

change on significant judgements and estimates are included in note 2.

Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating management’s assessment

of the impact of climate risk, physical and transition, their climate commitments, the effects of material climate risks disclosed on pages 41-45

and the significant judgements and estimates disclosed in note 2 and whether these have been appropriately reflected in the valuation of the

investment properties, investment properties held in joint ventures and trading properties or have any other material impact on the financial

statements. As part of this evaluation, we performed our own risk assessment, supported by our climate change internal specialists, to

determine the risks of material misstatement in the financial statements from climate change which needed to be considered in our audit.

We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability and associated

disclosures. Where considerations of climate change were relevant to our assessment of going concern, these are described above.

Based on our work, whilst we have not identified the impact of climate change on the financial statements to be a standalone key audit matter,

we have considered the impact on the valuation of property, including investment properties and investment properties held in joint ventures

key audit matter. Details of the impact, our procedures and findings are included in our explanation of key audit matter below.

KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the

current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified. These

matters included those which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit; and directing the

efforts of the engagement team. These matters were addressed in the context of our audit of the financial statements as a whole, and in our

opinion thereon, and we do not provide a separate opinion on these matters.

LANDSEC ANNUAL REPORT 2025 87

Risk Our response to the risk

Key observations

communicated to

the Audit

Committee

The valuation of property,

including investment

properties and investment

properties held in joint

ventures

2025: £10,034m in investment

properties and £608m (the

Group’s share) in investment

properties held in joint ventures

(2024: £9,330m in investment

properties and £585m (the

Group’s share) in investment

properties held in joint

ventures)

Refer to the Report of the Audit

Committee (pages 64-67);

Accounting policies

(pages 113-114); Note 14 &

16 of theFinancial statements

(pages 115-124).

The valuation of property,

including investment

properties, development

properties and investment

properties held in joint

ventures, requires significant

judgement and estimation

by Management and their

external valuers. Inaccuracies

in inputs or unreasonable bases

used in these judgements

(including the estimated rental

value, yield profile applied

and development costs to

complete) could result in a

material misstatement of

the income statement and

balance sheet. There is also

a risk that management could

inappropriately influence

the input data and/or the

significant judgements and

estimates in respect of

property valuations in order

to meet market expectations

or bonus targets.

Our audit procedures over the valuation of property included:

We obtained an understanding of the Group’s processes and controls around the

valuation of properties.

We evaluated the competence of the Group’s external valuers, CBRE and JLL which

included consideration of their qualifications and expertise.

We attended meetings between management and CBRE and management and JLL to

assess for evidence of undue management influence and we obtained confirmation from

CBRE and JLL that they had not been subject to undue influence from management.

We met with CBRE and JLL to challenge their valuation approach and the judgements

they made in their property valuation. Such judgements included the estimated rental

value, yield profile and other significant assumptions that impact the value.

We selected properties based on a risk assessment of a number of factors including

comparison with market movements, significant debtors, voids, considerations to ESG

and size across asset classes and segments, to identify high risk properties. Our high risk

properties includes properties not tested in prior years. These properties comprised 83%

of the market value of combined portfolio (including investment properties held in joint

ventures). For these higher risk properties, we tested source documentation provided by

the Group to CBRE and JLL. This included agreeing a sample back to underlying lease

data and vouching costs items and assumptions in respect of development properties.

We assessed and challenged the judgements made by CBRE and JLL, including through

inspection of comparable market evidence, where available.

We included chartered surveyors on our audit team who reviewed and challenged the

valuation approach and assumptions for the higher risk properties. Our chartered

surveyors compared the yields applied to each property to an expected range of yields

taking into account available market data and asset specific considerations. They

challenged whether the other assumptions applied by the external valuers, such as the

estimated rental values, voids, tenant incentives and development costs to complete

were supported by available data. They also challenged whether other market

transactions contradict the assumptions used in the valuation.

Together with our real estate specialists team, we met with the external valuers to

further discuss the findings from our audit work described above and to seek further

explanations as required.

We challenged whether sustainability costs identified by management as part of the

Net Zero Investment Plan have been appropriately considered within the valuation.

As part of this, we assessed and challenged judgements made by CBRE and JLL for

costs associated with ESG and refurbishment capital expenditure costs.

We performed analytical procedures on the properties not included in the higher risk

properties reviewed in detail by our real estate specialists team by comparing assumptions

and the value of those properties by reference to our understanding of the UK real

estate market, external market data and asset specific considerations to evaluate the

appropriateness of the valuations adopted by the Group. Where values or assumptions

were not in line with our expectations, we challenged these further by discussing with

management, CBRE, JLL and our real estate specialists team and, where appropriate,

obtaining further evidence to support the movement in values.

We performed 8 site visits. Where properties are under development, this enabled us

to test existence of the property and challenge whether the status of the development

was consistent with what we were told by management. We challenged development

directors and project managers for major properties in the development programme

on the project costs, progress of development and leasing status. We challenged

the reasonableness of forecast costs to complete included in the valuations as well

as the identified contingencies and the exposure to remaining risks, by comparing the

total forecast costs to contractual arrangements and other supporting evidence. We

challenged forecast costs to complete for evidence of overruns through risks identified

during our development meetings, review of meeting minutes and other supporting

information. We challenged the information provided by the development directors and

the project managers through our review of cost analysis as well as the valuation outcome.

We assessed the adequacy of the disclosures of estimates and valuation assumptions

in note 14 including those required by IFRS 13 – Fair Value Measurement.

Scope of our procedures

We performed full scope audit procedures over the valuation of properties, including

investment properties and investment properties held in joint ventures.

We have tested

the inputs,

assumptions and

methodology

used by CBRE

and JLL. We have

concluded that

the methodology

applied is

reasonable and

that the external

valuations are

areasonable

assessment of

the market value

of investment

properties at

31 March 2025.

We concluded

that the

properties

reviewed by

ourchartered

surveyors were

within the

reasonable range

of values as

assessed by

them.

We concluded

that committed

capital

expenditure

andESG

considerations

has been

appropriately

considered

withinthe

valuations where

appropriate.

We consider that

management

provided an

appropriate level

of review and

challenge over

the valuations,

and we did not

identify evidence

of undue

management

influence.

We have reviewed

the disclosures

inthe financial

statements

including the

disclosure of

methodology,

keyunobservable

inputs and

sensitivity

thereof and

consider them to

be appropriate.

LANDSEC ANNUAL REPORT 202588

FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT

CONTINUED

Risk Our response to the risk

Key observations

communicated to

the Audit

Committee

Revenue recognition, including

service charge income and the

treatment of lease incentives.

2025: £600m rental income

(2024: £622m rental income)

2025: £155m service charge

income (2024: £117m service

charge income)

Refer to the Report of the Audit

Committee (pages 64-67);

Accounting policies

(pages 103-104); Note 6 of

theFinancial statements

(pages 104-105).

Market expectations and

EPRA earnings-based targets

(which include management

compensation) may place

pressure on management to

distort revenue recognition.

This may result in

overstatement or

understatement of rental

income and service charge

income to assist in meeting

current or future targets or

expectations, including

through the manipulation of

timing of revenue recognition

of lease incentives (straight

line rent), inappropriate

income recovered through

the service charge and

fictitious revenues being

recorded via topside journals.

Our audit procedures over revenue recognition included:

We selected a sample of new, existing and amended lease agreements in the year and

agreed the key lease terms to the Group’s property information management systems

in use (both pre and post the system migration) throughout the year, including lease

incentive clauses.

We performed data analytics procedures to set an expectation of rental income across

the whole population of leases in the Group’s portfolio for the year; this also covers the

straight-lining rent adjustment for lease incentives. This was performed for both of the

financial reporting systems in use both pre and post the system migration.

We obtained the schedules used to calculate straight-lining of revenue in accordance

with IFRS 16 Leases. We tested the arithmetical accuracy of these schedules and that

the straight lining was calculated in accordance with the guidance. For a sample of

leases we agreed the lease information per the schedules back to lease agreements.

We performed additional substantive testing procedures over a sample of variable

turnover rents by recalculating the expected turnover revenue based on evidence

received from tenants and the Group’s property information management systems in

use throughout the year. We further agreed invoices issued to cash collections received

for each of these samples.

We have performed testing in relation to service charge income. This has included

vouching a sample of income recognised to both invoice and cash collection, and

performing an analytical review to challenge unexpected or unusual variances. We have

also performed testing on the service charge expense in the year, including the accrual

at year end to test cut-off.

We performed audit procedures specifically designed to address the risk of management

override of controls including topside consolidation adjustments and journal entries

which impact revenue.

Scope of our procedures

The Group was subject to full scope audit procedures over revenue.

Based upon the

audit procedures

performed, we

concluded that

revenue has been

recognised on an

appropriate basis

in the year.

OUR APPLICATION OF MATERIALITY

We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the audit and

in forming our audit opinion.

MATERIALITY

The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the economic

decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of our audit procedures.

The table below sets out the materiality, performance materiality and threshold for reporting audit differences applied on our audit:

Basis Materiality Performance materiality Audit differences

Overall – all account balances related to

investment properties and trading properties

(either wholly owned or within the Joint

Venture) and loans and borrowings

(excludingthe related finance expense)

0.9% of total assets

(2024:0.9% of total assets)

£105m

(2024: £96m)

£79m

(2024: £72m)

£5m

(2024: £5m)

Specific – all account balances which are

not account balances related to investment

properties, trading properties (either wholly

owned or within the Joint Venture) and

loansand borrowings

5% of EPRA Earnings before

tax (2024: 5% EPRA Earnings

before tax)

£19m

(2024: £19m)

£14m

(2024: £14m)

£1m

(2024: £1m)

Parent Company 0.9% of total assets

(2024:0.9% of total assets)

£48m

(2024: £51m)

£36m

(2024: £38m)

£2m

(2024: £3m)

LANDSEC ANNUAL REPORT 2025 89

When establishing our overall audit strategy, we determined a magnitude of uncorrected misstatements that we judged would be material for

the financial statements as a whole. We determined that an asset-based measure would be the most appropriate basis for determining overall

materiality given that key users of the Group’s financial statements are primarily focused on the valuation of the Group’s assets. Based on this,

we determined that it is appropriate to set the overall materiality at 0.9% of total assets (2024: 0.9% of total assets). We applied overall materiality

to the investment properties and trading properties balances (either wholly owned or within the Joint Venture) and loans and borrowings

(excluding the related finance expense) as the value of loans and borrowings which are secured against the Group’s investment properties.

This provided a basis for determining the nature, timing and extent of risk assessment procedures, identifying and assessing the risk of material

misstatement and determining the nature, timing and extent of further audit procedures.

We determined that for other account balances not related to investment properties, trading properties (either wholly owned or held within

jointventures) or loans and borrowings, a misstatement of less than overall materiality for the financial statements as a whole could influence

the economic decisions of users. We believe that it is most appropriate to use a profit-based measure as profit is also a focus of users of the

financial statements.

We determined that materiality for these areas should be based upon 5% of EPRA earnings before tax. EPRA earnings is considered an important

performance metric and aligned with industry earnings measures.

During the course of our audit, we reassessed initial materiality which resulted in a reduction to our overall materiality as a result of total assets

having decreased from our initial materiality assessment.

PERFORMANCE MATERIALITY

The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the

probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.

On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was that

performance materiality was 75% (2024: 75%) of our planning materiality. We have set performance materiality at this percentage due to our

past experience of the audit that indicates a lower risk of misstatements, both corrected and uncorrected.

REPORTING THRESHOLD

An amount below which identified misstatements are considered as being clearly trivial.

We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £5m (2024: £5m), which is set

at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds.

We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant

qualitative considerations in forming our opinion.

OTHER INFORMATION

The other information comprises the information included in the annual report, including the Strategic Report and Governance section set out

on pages 1-82, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information

contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in this report,

we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the

financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such

material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement

in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of the other

information, we are required to report that fact.

We have nothing to report in this regard.

OPINIONS ON OTHER MATTERS PRESCRIBED BY THE COMPANIES ACT 2006

In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

•

the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared

is consistent with the financial statements;

•

the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements;

•

the information about internal control and risk management systems in relation to financial reporting processes and about share capital

structures, given in compliance with rules 7.2.5 and 7.2.6 in the Disclosure Rules and Transparency Rules sourcebook made by the Financial Conduct

Authority (the FCA Rules), is consistent with the financial statements and has been prepared in accordance with applicable legal requirements; and

•

information about the Company’s corporate governance statement and practices and about its administrative, management and supervisory

bodies and their committees complies with rules 7.2.2, 7.2.3 and 7.2.7 of the FCA Rules.

LANDSEC ANNUAL REPORT 202590

FINANCIAL STATEMENTS

INDEPENDENT AUDITOR’S REPORT

CONTINUED

MATTERS ON WHICH WE ARE REQUIRED TO REPORT BY EXCEPTION

In the light of the knowledge and understanding of the Group and the Parent company and its environment obtained in the course of the audit,

we have not identified material misstatements in

•

the strategic report or the directors’ report; or

•

the information about internal control and risk management systems in relation to financial reporting processes and about share capital

structures, given in compliance with rules 7.2.5 and 7.2.6 of the FCA Rules

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

•

adequate accounting records have not been kept by the Parent company, or returns adequate for our audit have not been received from

branches not visited by us; or

•

the Parent company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the

accounting records and returns; or

•

certain disclosures of directors’ remuneration specified by law are not made; or

•

we have not received all the information and explanations we require for our audit; or

•

a Corporate Governance Statement has not been prepared by the Company.

CORPORATE GOVERNANCE STATEMENT

We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate Governance

Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance Code specified for our review

bythe UK Listing Rules.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate Governance

Statement is materially consistent with the financial statements or our knowledge obtained during the audit:

•

Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material uncertainties

identified set out on pages 46-47 and 83;

•

Directors’ explanation as to its assessment of the company’s prospects, the period this assessment covers and why the period is appropriate

set out on pages 46-47;

•

Directors’ statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets its liabilities

set out on page 83;

•

Directors’ statement on fair, balanced and understandable set out on page 83;

•

Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on pages 41-45;

•

The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out on

pages 38-45; and

•

The section describing the work of the Audit Committee set out on pages 62-67.

RESPONSIBILITIES OF DIRECTORS

As explained more fully in the directors’ responsibilities statement set out on page 83, the directors are responsible for the preparation of the

financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is

necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group and Parent company’s ability to continue as a going

concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either

intend to liquidate the Group or the Parent company or to cease operations, or have no realistic alternative but to do so.

AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement,

whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is

not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements

can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the

economic decisions of users taken on the basis of these financial statements.

EXPLANATION AS TO WHAT EXTENT THE AUDIT WAS CONSIDERED CAPABLE OF DETECTING IRREGULARITIES, INCLUDING FRAUD

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities,

outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to fraud is higher than the risk

ofnot detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations,

or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed on page 91.

LANDSEC ANNUAL REPORT 2025 91

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the company

andmanagement.

•

We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group and determined that the most

significant are those that relate to the reporting framework (UK adopted international accounting standards, the Companies Act 2006 and

UKCorporate Governance Code), Listing Rules, the relevant tax regulations in the United Kingdom, including the UK REIT regulations, the

UKGeneral Data Protection Regulation (GDPR), Health & Safety Regulations, Building Safety Act and the Bribery Act. There are no significant

industry specific laws or regulations that we considered in determining our approach.

•

We understood how Land Securities Group PLC is complying with those frameworks through enquiry with management, and by identifying the

Group’s policies and procedures regarding compliance with laws and regulations. We also identified those members of management who have

the primary responsibility for ensuring compliance with laws and regulations, and for reporting any known instances of non-compliance to those

charged with governance. We corroborated our enquiries through our review of board minutes and papers provided to the board and the Audit

Committee, as well as consideration of the results of our audit procedures across the Group to either corroborate or provide contrary evidence

which was then followed up. Our assessment included the tone from the top and the emphasis on a culture of honest and ethical behaviour.

•

We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur by reviewing

theCompany’s risk register and enquiry with management and the Audit Committee during the planning and execution phases of our audit.

We considered the programmes and controls that the Group has established to address risks identified, or that otherwise prevent, deter and

detect fraud; and how management monitors those programmes and controls.

•

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Our procedures involved:

– Enquiry of management, and when appropriate, those charged with governance regarding their knowledge of any non-compliance or

potential non-compliance with laws and regulations that could affect the financial statements;

– Understanding of management’s internal controls designed to prevent and detect irregularities;

– Designing audit procedures to incorporate unpredictability around the nature, timing and extent of our testing;

– Performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement

due to fraud;

– Reading minutes of meetings of those charged with governance, including those of the Risk Committee and the Audit Committee;

– Reading of internal audit reports;

– Obtaining electronic confirmations from the Group’s banking providers to vouch the existence of cash balances and completeness of loans,

borrowings and other treasury positions such as derivatives;

– Obtaining and reading correspondence from legal and regulatory bodies, including the FRC and HMRC;

– Challenging assumptions and judgements made by management in their significant accounting estimates, in particular in relation to the

valuation of investment property and the fair value of the acquired assets and liabilities of Land Securities Group PLC (see key audit matters

set out earlier in this report); and

– Journal entry testing, with a focus on manual journals and journals indicating large or unusual transactions based on our understanding

thebusiness.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

OTHER MATTERS WE ARE REQUIRED TO ADDRESS

Following the recommendation from the Audit Committee, we were appointed by the company on 18 July 2013 to audit the financial statements

for the year ending 31 March 2014 and subsequent financial periods. Following the conclusion of a formal tender process led by the Audit

Committee, we were appointed to continue as auditor for the financial year ending 31 March 2024 and subsequent financial periods.

The period of total uninterrupted engagement including previous renewals and reappointments is 12 years, covering the years ending 31 March

2014 to 31 March 2025. The audit opinion is consistent with the additional report to the Audit Committee.

USE OF OUR REPORT

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit

work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s

report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the

company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

JULIE CARLYLE (SENIOR STATUTORY AUDITOR)

for and on behalf of Ernst & Young LLP, Statutory Auditor

London

15 May 2025

LANDSEC ANNUAL REPORT 202592

FINANCIAL STATEMENTS

				2025			2024
			Capital			Capital
		EPRA	and other		EPRA	and other
		earnings	items	Total	earnings	items	Total
	Notes	£m	£m	£m	£m	£m	£m
Revenue	6	797	45	8 42	76 6	58	8 24
Costs	7	(352)	(77)	(4 2 9)	(325)	(8 4)	(4 0 9)
		4 45	(32)	413	4 41	(2 6)	415
Share of post-tax profit/(loss) from joint ventures	16	23	14	37	21	(19)	2
Loss on disposal of investment properties		–	(1 5)	(1 5)	–	(1 6)	(1 6)
Net surplus/(deficit) on revaluation of investment	14	–	91	91	–	(628)	(628)
properties
Operating profit/(loss)		468	58	526	4 62	(6 8 9)	(227)
Finance income	10	15	–	15	11	1	12
Finance expense	10	(10 9)	(39)	(1 4 8)	(1 0 2)	(24)	(1 26)
Profit/(loss) before tax		3 74	19	393	3 71	(71 2)	(3 4 1)
Taxation	12			3			–
Profit/(loss) for the year				396			(3 4 1)
Attributable to:
Shareholders of the parent				396			(319)
Non-controlling interests				–			(22)
				396			(3 4 1)
Profit/(loss) per share attributable to shareholders of the parent:
Basic earnings/(loss) per share	5			5 3. 3p			(4 3. 0)p
Diluted earnings/(loss) per share	5			5 3.0p			(4 3.0)p

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2025

		2025	2024
		Total	Total
	Notes	£m	£m
Profit/(loss) for the year		396	(3 4 1)
Items that may be subsequently reclassified to the income statement:
Movement in cash flow hedges		–	(1)
Net surplus on revaluation of owner-occupied property	20	12	–
Deferred tax charge on owner-occupied property revaluation surplus	12	(3)	–
Items that will not be subsequently reclassified to the income statement:
Net remeasurement loss on defined benefit pension scheme	36	–	(5)
Deferred tax credit on remeasurement above	12	–	4
Other comprehensive income/(loss) for the year		9	(2)
Total comprehensive income/(loss) for the year		40 5	(343)
Attributable to:
Shareholders of the parent		40 5	(3 21)
Non-controlling interests		–	(22)
		40 5	(343)

INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2025

LANDSEC ANNUAL REPORT 2025 93

			Group		Company
		2025	2024	2025	2024
Non-current assets	Notes	£m	£m	£m	£m
Investment properties	14	1 0,0 3 4	9, 3 3 0	–	–
Property, plant and equipment	20	42	7	–	–
Intangible assets	21	3	3	–	–
Net investment in fi nance leases	19	19	21	–	–
Investments in joint ventures	16	551	529	–	–
Investments in associates	17	–	–	–	–
Investments in subsidiary undertakings	30	–	–	5,363	5,659
Trade and other receivables	28	229	1 59	–	–
Other non-current assets	31	22	41	–	–
Total non-current assets		1 0,9 0 0	10,0 9 0	5,363	5,659
Current assets
Trading properties	15	81	10 0	–	–
Trade and other receivables	28	4 67	37 9	–	–
Monies held in restricted accounts and deposits	24	20	6	–	–
Cash and cash equivalents	25	39	78	1	2
Other current assets	32	4	11	–	–
Non-current asset held-for-sale	44	110	–	–	–
Total current assets		721	5 74	1	2
Total assets		1 1 ,621	10,6 6 4	5,364	5,661
Current liabilities
Borrowings	23	(75 2)	(975)	–	–
Trade and other payables	29	(4 0 6)	(3 4 8)	(1,750)	(2,251)
Provisions	35	(4 4)	(30)	–	–
Other current liabilities	33	(6)	–	–	–
Total current liabilities		(1 ,2 0 8)	(1, 3 5 3)	(1,750)	(2,251)
Non-current liabilities
Borrowings	23	(3,8 0 2)	(2,8 05)	–	–
Trade and other payables	29	(4 4)	(4)	–	–
Provisions	35	(30)	(42)	–	–
Other non-current liabilities	34	(5)	(1 3)	–	–
Total non-current liabilities		(3,8 8 1)	(2,8 6 4)	–	–
Total liabilities		(5 ,0 89)	(4 , 21 7)	(1,750)	(2,251)
Net assets		6,5 32	6, 4 47	3,614	3,410
Equity
Capital and reserves attributable to shareholders
Ordinary shares	38	80	80	80	80
Share premium		3 19	3 19	319	319
Other reserves		30	23	30	23
Merger reserve		–	–	374	374
Retained earnings		6,0 8 5	5 ,9 8 0	2,811	2,614
Equity attributable to shareholders of the parent		6,5 1 4	6,4 02	3,614	3,410
Equity attributable to non-controlling interests		18	45
Total equity		6,5 32	6, 4 47

The profi t for the year of the Company was £497m (2024: £280m).

The fi nancial statements on pages 92-151 were approved by the Board of Directors on 15 May 2025 and were signed on its behalf by:

MARK ALLAN

DIRECTORS

VANESSA SIMMS

BALANCE SHEETS

AT 31 MARCH 2025

LANDSEC ANNUAL REPORT 202594

FINANCIAL STATEMENTS

						Attributable to shareholders of the parent		Group
							Non-
		Ordinary	Share	Other	Retained		controlling	Total
		shares	premium	reserves	earnings	Total	interests	equity
	Notes	£m	£m	£m	£m	£m	£m	£m
At 1 April 2023		80	318	13	6,594	7, 0 0 5	67	7,072
Total comprehensive loss for the financial year		–	–	–	(3 21)	(3 2 1)	(22)	(343)
Transactions with shareholders of the parent:
Share-based payments	37	–	1	10	(2)	9	–	9
Dividends paid to shareholders of the parent	11	–	–	–	(291)	(291)	–	(291)
Total transactions with shareholders oftheparent		–	1	10	(293)	(28 2)	–	(28 2)
At 31 March 2024		80	3 19	23	5 ,9 8 0	6,4 02	45	6,4 47
Total comprehensive income for the financial year		–	–	–	4 05	405	–	405
Transactions with shareholders of the parent:
Share-based payments	37	–	–	7	(3)	4	–	4
Dividends paid to shareholders of the parent	11	–	–	–	(297)	(297)	–	(297)
Acquisition of non-controlling interests	43	–	–	–	–	–	(5 6)	(5 6)
Total transactions with shareholders oftheparent		–	–	7	(30 0)	(293)	(5 6)	(34 9)
Dividends paid to non-controlling interests		–	–	–	–	–	(1)	(1)
Issued share capital		–	–	–	–	–	12	12
Acquisition of subsidiaries		–	–	–	–	–	18	18
Total transactions with shareholders		–	–	7	(30 0)	(293)	(27)	(3 20)
At 31 March 2025		80	3 19	30	6 ,0 8 5	6 ,51 4	18	6,5 3 2

Attributable to shareholders Company

Notes

Ordinary

£m

premium

£m

Other

reserves

£m

Merger

reserve

£m

Retained

earnings

£m

Total

equity

£m

At 1 April 2023 80 318 13 374 2,625 3,410

Total comprehensive income for the financial year – – – – 280 280

Transactions with shareholders:

Share-based payments 37 – 1 10 – – 11

Dividends paid to shareholders 11 – – – – (291) (291)

Total transactions with shareholders – 1 10 – (291) (280)

At 31 March 2024 80 319 23 374 2,614 3,410

Total comprehensive income for the financial year – – – – 497 497

Transactions with shareholders:

Share-based payments 37 – – 7 – (3) 4

Dividends paid to shareholders 11 – – – – (297) (297)

Total transactions with shareholders – – 7 – (300) (293)

At 31 March 2025 80 319 30 374 2,811 3,614

1. Available for distribution.

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2025

LANDSEC ANNUAL REPORT 2025 95

STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2025

			Group		Company
		2025	2024	2025	2024
	Notes	£m	£m	£m	£m
Cash flows from operating activities
Net cash generated from operations	13	381	42 9	–	–
Interest received		23	24	–	–
Interest paid		(1 4 4)	(1 0 1)	–	–
Rents paid		(1 2)	(1 4)	–	–
Capital expenditure on trading properties		(8)	(19)	–	–
Disposal of trading properties		13	18	–	–
Other operating cash flows		3	1	(1)	–
Net cash inflow/(outflow) from operating activities	13	256	338	(1)	–
Cash flows from investing activities
Investment property development expenditure		(293)	(20 2)	–	–
Other investment property related expenditure		(1 6 3)	(1 26)	–	–
Acquisition of investment properties, net of cash acquired		(325)	(1 3 7)	–	–
Acquisition of subsidiaries, net of cash acquired	43	(1 8)	–	–	–
Disposal of investment properties		404	1 76	–	–
Cash distributions from joint ventures	16	12	17	–	–
Net cash outflow from investing activities		(3 83)	(27 2)	–	–
Cash flows from financing activities
Net proceeds from new borrowings (net of finance fees)	23	96 3	70 8	–	–
Net repayment of borrowings	23	(56 2)	(4 2 7)	–	–
Net cash outflow from derivative financial instruments	23	(6)	(1 8)	–	–
Proceeds from non-controlling interest share capital issuance		12	–	–	–
Dividends paid to shareholders of the parent	11	(305)	(291)	–	–
Dividends paid to non-controlling interests		(1)	–	–	–
Increase in monies held in restricted accounts and deposits		(1 4)	(2)	–	–
Other financing cash flows		1	1	–	–
Net cash inflow/(outflow) from financing activities		88	(29)	–	–
(Decrease)/increase in cash and cash equivalents for the year		(39)	37	(1)	–
Cash and cash equivalents at the beginning of the year		78	41	2	2
Cash and cash equivalents at the end of the year	25	39	78	1	2

LANDSEC ANNUAL REPORT 202596

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

SECTION 1 – GENERAL

This section contains a description of the Group’s significant accounting policies that relate to the financial statements as a whole. A description

of accounting policies specific to individual areas (e.g. investment properties) is included within the relevant note to the financial statements.

This section also includes a summary of new accounting standards, amendments and interpretations that have been applied in the year and

those not yet adopted, and their actual or expected impact on the reported results of the Group.

1 › BASIS OF PREPARATION AND CONSOLIDATION

BASIS OF PREPARATION

These financial statements have been prepared on a going concern basis and in accordance with UK adopted international accounting standards

(IFRSs and IFRICs), and as regards the parent company financial statements, as applied in accordance with the provisions of the Companies Act

2006. The financial statements have been prepared in Pounds Sterling (rounded to the nearest one million), which is the presentation currency of

the Group (Land Securities Group PLC and all its subsidiary undertakings), and under the historical cost convention as modified by the revaluation

of investment property, financial assets at fair value through profit or loss, derivative financial instruments and pension assets. As applied by the

Group and the Company, there are no material differences between UK adopted international accounting standards and EU IFRS.

The preparation of financial statements in conformity with generally accepted accounting principles (GAAP) requires the use of estimates and

assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of

revenues and expenses during the reporting period. Although these estimates are based on management’s best knowledge of the amount,

event or actions, actual results ultimately may differ from those estimates.

Land Securities Group PLC (the Company) has not presented its own statement of comprehensive income (and separate income statement),

as permitted by Section 408 of Companies Act 2006. The Merger reserve arose on 6 September 2002 when the Company acquired 100% of the

issued share capital of Land Securities PLC. The Merger reserve represents the excess of the cost of acquisition over the nominal value of the

shares issued by the Company to acquire Land Securities PLC. The Merger reserve does not represent a realised or distributable profit. Other

reserves includes the Capital redemption reserve, which represents the nominal value of cancelled shares, the Share-based payment reserve

and Own shares held by the Group.

GOING CONCERN

Given the impact of international and domestic political and economic events over the course of the year, the Directors have continued to place

additional focus on the appropriateness of adopting the going concern assumption in preparing the financial statements for the year ended

31 March 2025. The Group’s going concern assessment considers changes in the Group’s principal risks (see pages 41-45) and is dependent on

a number of factors, including our financial performance and continued access to borrowing facilities. Access to our borrowing facilities is

dependent on our ability to continue to operate the Group’s secured debt structure within its financial covenants, which are described in note 23.

In order to satisfy themselves that the Group has adequate resources to continue as a going concern for the foreseeable future, the Directors

have reviewed the base case, downside and reverse stress test models, as well as a cash flow model which considers the impact of pessimistic

assumptions on the Group’s operating environment (the ‘mitigated downside scenario’). This mitigated downside scenario reflects unfavourable

macroeconomic conditions, a deterioration in our ability to collect rent and service charge from our customers and removes uncommitted

acquisitions, disposals and developments.

The Group’s key metrics from the mitigated downside scenario as at the end of the going concern assessment period, which covers the 16 months

to 30 September 2026, are shown below alongside the actual position at 31 March 2025.

		Mitigated downside
		scenario
Key metrics	31 March 2025	30 September 2026
Security Group LTV	41.9%	45.8%
Adjusted net debt	£4,304m	£4,769m
EPRA net tangible assets	£6,530m	£5,940m
Available financial headroom	£1.1bn	£0.7bn

LANDSEC ANNUAL REPORT 2025 97

In our mitigated downside scenario, the Group has sufficient cash reserves, with our Security Group LTV ratio remaining less than 65% and

interest cover above 1.45x, for a period of 16 months from the date of authorisation of these financial statements. Under this scenario, the

Security Group’s asset values would need to fall by a further 29% from the sensitised values forecasted at 30 September 2026 to be non-

compliant with the LTV covenant. This equates to a 36% fall in the value of the Security Group’s assets from the 31 March 2025 values for

the LTV to reach 65%. The Directors consider the likelihood of this occurring over the going concern assessment period to be remote.

The Security Group also requires earnings before interest of at least £259m in the full year ending 31 March 2026 and at least £146m in the

six-month period ending 30 September 2026 for interest cover to remain above 1.45x in the mitigated downside scenario, which would ensure

compliance with the Group’s covenant through to the end of the going concern assessment period. Security Group earnings post year-end

31 March 2025 are well above the level required to meet the interest cover covenant for the year ended 31 March 2026. The Directors do not

anticipate a reduction in Security Group earnings over the period ending 30 September 2026 to a level that would result in a breach of the

interest cover covenant.

The Directors have also considered a reverse stress-test scenario which assumes no further rent will be received, to determine when our available

cash resources would be exhausted. Even under this extreme scenario, although breaching the interest cover covenant, the Group continues

to have sufficient cash reserves to continue in operation throughout the going concern assessment period.

Based on these considerations, together with available market information and the Directors’ knowledge and experience of the Group’s

property portfolio and markets, the Directors have adopted the going concern basis in preparing these financial statements for the year

ended 31 March 2025.

BASIS OF CONSOLIDATION

The consolidated financial statements for the year ended 31 March 2025 incorporate the financial statements of the Company and all its

subsidiary undertakings. Subsidiary undertakings are those entities controlled by the Company. Control exists where an entity is exposed

to variable returns and has the ability to affect those returns through its power over the investee.

The results of subsidiaries and joint ventures acquired or disposed of during the year are included from the effective date of acquisition or to

the effective date of disposal. Accounting policies of subsidiaries and joint ventures which differ from Group accounting policies are adjusted

on consolidation.

Where instruments in a subsidiary held by third parties are redeemable at the option of the holder, these interests are classified as a financial

liability, called the redemption liability. The liability is carried at fair value; the value is reassessed at the balance sheet date and movements

are recognised in the income statement.

Where equity in a subsidiary is not attributable, directly or indirectly, to the shareholders of the parent, this is classified as a non-controlling

interest. Total comprehensive income or loss and the total equity of the Group are attributed to the shareholders of the parent and to the

non-controlling interests according to their respective ownership percentages. When the proportion of equity held by the non-controlling interest

changes, the Group will adjust the carrying amounts of equity attributable to the shareholders of the parent and non-controlling interest to

reflect the changes in their relative interests in the subsidiary. The Group shall recognise directly in equity any difference between the amount

by which the non-controlling interest is adjusted and the fair value of the consideration paid or received, and attribute it to the shareholders

of the parent.

Joint arrangements are those entities over whose activities the Group has joint control, established by contractual agreement. Interests in joint

arrangements are accounted for as either a joint venture or a joint operation. A joint arrangement is accounted for as a joint venture when

the Group, along with the other parties that have joint control of the arrangement, have rights to the net assets of the arrangement. Interests

in joint ventures are equity accounted. The equity method requires the Group’s share of the joint venture’s post-tax profit or loss for the year

to be presented separately in the income statement and the Group’s share of the joint venture’s net assets to be presented separately in the

balance sheet. A joint arrangement is accounted for as a joint operation when the Group, along with the parties that have joint control of the

arrangement, have rights to the assets and obligations for the liabilities relating to the arrangement. Joint operations are accounted for by

including the Group’s share of the assets, liabilities, income and expenses on a line-by-line basis.

Intra-group balances and any unrealised gains and losses arising from intra-group transactions are eliminated in preparing the consolidated

financial statements. Unrealised gains arising from transactions with joint ventures are eliminated to the extent of the Group’s interest in the

joint venture concerned. Unrealised losses are eliminated in the same way, but only to the extent that there is no evidence of impairment.

LANDSEC ANNUAL REPORT 202598

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

2 › SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

The preparation of financial statements in conformity with IFRS requires management to exercise judgement in applying the Group’s accounting

policies. The areas where the Group considers the judgements to be most significant involve assumptions or key estimates in respect of future

events, where actual results may differ from these estimates. These key estimates are deemed to have a significant risk of causing a material

adjustment to the carrying amounts of assets and liabilities within the next financial year. Other sources of estimation uncertainties identified

below are estimates deemed to have a lower risk of causing a material adjustment to the carrying amounts of assets and liabilities within the

next financial year.

JUDGEMENTS

•

Recognising revenue where property management activities are performed by a third party (note 6)

•

Compliance with the Real Estate Investment Trust (REIT) taxation regime and the recognition of deferred tax assets and liabilities (note 12)

•

Accounting for certain property acquisitions and disposals (note 14)

•

Accounting for acquisitions of non-controlling interests (note 43)

KEY ESTIMATES

•

Valuation of investment properties (note 14)

OTHER SOURCES OF ESTIMATION UNCERTAINTIES

•

Valuation of trading properties and owner-occupied property (note 15 and note 20)

•

Impairment of trade receivables (note 28)

•

Estimation of provisions (note 35)

In preparing the financial statements, the Group has considered the impact of climate change, taking into account the relevant disclosures in

the Strategic Report, including those made in accordance with the recommendations of the Taskforce on Climate-related Financial Disclosure

(TCFD). These considerations included the limited exposure in terms of our investment properties, as we fully costed and committed to invest

£135m to achieve our science-based target by 2030 (note this cost will fluctuate year-on-year as we account for changes in inflation and portfolio

composition). Related capital expenditure and the expected impact on ERVs associated with this commitment have been factored within

property valuations. On this basis, the Group has concluded that climate change did not have a material impact on the financial reporting

judgements and estimates, consistent with the assessment that this is not expected to have a significant impact on the Group’s going concern

or viability assessment.

3 › CHANGES IN ACCOUNTING POLICIES AND STANDARDS

The accounting policies used in these financial statements are consistent with those applied in the last annual financial statements, as amended

where relevant to reflect the adoption of new standards, amendments and interpretations which became effective in the year as listed below:

•

Amendments to IAS 1 – Classification of liabilities as current or non current and Non-current Liabilities with Covenants

•

Amendments to IFRS 16 – Lease liability in a sale and leaseback

•

Amendments to IAS 7 and IFRS 7 – Disclosures: Supplier finance arrangements

There has been no material impact on the financial statements of adopting any new standards, amendments and interpretations.

AMENDMENTS TO IFRS

A number of new standards, amendments to standards and interpretations have been issued but are not yet effective for the Group as listed below:

•

Amendments to IFRS 10 and IAS 28 – Sale or contribution of assets between an investor and its associate or joint venture

•

Amendments to IAS 21 – Lack of exchangeability

•

IFRS 18 – Presentation and Disclosure in Financial Statements

•

Amendments to IFRS 7 and IFRS 9 – Classification and measurement of financial instruments and for Power Purchase Agreements

The Group has yet to assess the full outcome of these new standards, amendments and interpretations, however with the exception of IFRS 18

these other new standards, amendments and interpretations are not expected to have a significant impact on the Group’s financial statements.

The Group intends to adopt these new standards, amendments and interpretations, if applicable, when they become effective.

LANDSEC ANNUAL REPORT 2025 99

SECTION 2 – PERFORMANCE

This section focuses on the performance of the Group for the year, including segmental information, earnings per share and net assets per share,

together with further details on specific components of the income statement and dividends paid.

Our property portfolio is a combination of properties that are wholly owned by the Group, part owned through joint arrangements and properties

owned by the Group but where a third party holds a non-controlling interest. Internally, management review the results of the Group on a basis

that adjusts for these different forms of ownership to present a proportionate share. The Combined Portfolio, with assets totalling £10.9bn,

is an example of this approach, reflecting the economic interest we have in our properties regardless of our ownership structure. The Combined

Portfolio comprises the investment properties, owner-occupied property and non-current assets held-for-sale of the Group’s subsidiaries,

on a proportionately consolidated basis when not wholly owned, together with our share of investment properties held in our joint ventures.

We consider this presentation provides further understanding to stakeholders of the activities and performance of the Group, as it aggregates

the results of all of the Group’s property interests which under IFRS are required to be presented across a number of line items in the statutory

financial statements.

The same principle is applied to many of the other measures we discuss and, accordingly, a number of our financial measures include the results

of our joint ventures and subsidiaries on a proportionate basis. Measures that are described as being presented on a proportionate basis include

the Group’s share of joint ventures on a line-by-line basis and are adjusted to exclude the non-owned elements of our subsidiaries. This is in

contrast to the Group’s statutory financial statements, where the Group’s interest in joint ventures is presented as one line on the income

statement and balance sheet, and all subsidiaries are consolidated at 100% with any non-owned element being adjusted as a non-controlling

interest or redemption liability, as appropriate. Our joint operations are presented on a proportionate basis in all financial measures.

EPRA earnings is an alternative performance measure and is the Group’s alternative measure of the underlying pre-tax profit of the property

rental business. EPRA earnings excludes all items of a capital nature, such as valuation movements and profits and losses on the disposal

of investment properties, as well as exceptional items. The Group believes that EPRA earnings provides additional understanding of the

Group’s operational performance to shareholders and other stakeholder groups. A full definition of EPRA earnings is given in the Glossary.

The components of EPRA earnings are presented on a proportionate basis in note 4.

Our income statement has two key components: the income we generate from leasing our investment properties net of associated costs

(including interest expense), which we refer to as EPRA earnings, and items not directly related to the underlying rental business, principally

valuation changes, profits or losses on the disposal of properties, refinancing activity and exceptional items, which we refer to as Capital and

other items. Our income statement is presented in a columnar format, split into those items that relate to EPRA earnings and Capital and other

items. The total column represents the Group’s results presented in accordance with IFRS; the other columns provide additional information.

We believe EPRA earnings provides further understanding of the results of the Group’s operational performance to stakeholders as it focuses

on the rental income performance of the business and excludes Capital and other items which can vary significantly from year to year.

4 › SEGMENTAL INFORMATION

The Group’s operations are all in the UK and are managed across four operating segments, being Central London, Major retail destinations

(Major retail), Mixed-use urban neighbourhoods (Mixed-use urban) and Subscale sectors.

The Central London segment includes all assets geographically located within Central London. Major retail destinations includes all regional

shopping centres and shops outside London and our outlets. The Mixed-use urban segment includes those assets where we see the most

potential for capital investment. Subscale sectors mainly includes assets that will not be a focus for capital investment and consists of leisure

assets, retail parks and previously hotel assets which were disposed during the current financial year.

Management has determined the Group’s operating segments based on the information reviewed by Senior Management to make strategic

decisions. The chief operating decision maker is the Executive Leadership Team (ELT), comprising the Executive Directors and the Managing

Directors. The information presented to ELT includes reports from all functions of the business as well as strategy, financial planning, succession

planning, organisational development and Group-wide policies.

The Group’s primary measure of underlying profit before tax is EPRA earnings. However, Segment net rental income is the lowest level to which

the profit arising from the ongoing operations of the Group is analysed between the four segments. The administrative costs, which are

predominantly staff costs for centralised functions, are all treated as administrative expenses and are not allocated to individual segments.

The Group manages its financing structure, with the exception of joint ventures and non-wholly owned subsidiaries, on a pooled basis. Individual

joint ventures and non-wholly owned subsidiaries may have specific financing arrangements in place. Debt facilities and finance expenses,

including those of joint ventures, are managed centrally and are therefore not attributed to a particular segment. Unallocated income and

expenses are items incurred centrally which are not directly attributable to one of the segments.

All items in the segmental information note are presented on a proportionate basis.

LANDSEC ANNUAL REPORT 2025100

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

SEGMENTAL RESULTS

EPRA EARNINGS

					2025					2024 2
	Central	Major	Mixed-use	Subscale		Central	Major	Mixed-use	Subscale
	London	retail	urban	sectors	Total	London	retail	urban	sectors	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Rental income	302	207	54	72	635	294	188	58	112	652
Finance lease interest	–	–	–	1	1	–	–	–	1	1
Gross rental income (before rents	302	207	54	73	636	294	188	58	113	653
payable)
Rents payable 1	(3)	(8)	–	(1)	(12)	(3)	(7)	(1)	(1)	(12)
Gross rental income (after rents payable)	299	199	54	72	624	291	181	57	112	641
Service charge income 3	67	70	18	10	165	59	53	11	–	123
Service charge expense	(69)	(74)	(22)	(11)	(176)	(63)	(60)	(14)	(2)	(139)
Net service charge expense	(2)	(4)	(4)	(1)	(11)	(4)	(7)	(3)	(2)	(16)
Other property related income 3	23	8	4	1	36	20	11	4	3	38
Direct property expenditure	(46)	(41)	(16)	(6)	(109)	(43)	(42)	(16)	(18)	(119)
Other operating income	–	–	10	–	10	–	–	–	–	–
Other operating expense	–	–	(9)	–	(9)	–	–	–	–	–
Movement in bad and doubtful	1	4	4	2	11	(1)	8	–	(1)	6
debts provision
Segment net rental income	275	166	43	68	552	263	151	42	94	550
Other income					1					1
Administrative expense					(71)					(74)
Depreciation					(3)					(4)
EPRA earnings before interest					479					473
Finance income					15					11
Finance expense					(109)					(102)
Joint venture net finance expense					(11)					(11)
EPRA earnings attributable to shareholders of the parent					374					371

1. Included within rents payable is lease interest payable of £8m (2024: £4m) across the four segments.

2. A reconciliation from the Group income statement to the information presented in the segmental results table for the year ended 31 March 2024 is included in table 73.

3. Current year balances reflect a reclassification of joint venture service charge management fee income from other property related income to service charge income of

£3m. While the comparatives have not been restated, the equivalent reclassification would have been £3m.

4 › SEGMENTAL INFORMATION CONTINUED

LANDSEC ANNUAL REPORT 2025 101

The following table reconciles the Group’s income statement to the segmental results.

RECONCILIATION OF SEGMENTAL INFORMATION NOTE TO STATUTORY REPORTING

						Year ended 31 March 2025
			Adjustment
			for
	Group		non-wholly			Capital
	income	Joint	owned		EPRA	and other
	statement	Ventures 1	subsidiaries 2	Total	earnings	items
	£m	£m	£m	£m	£m	£m
Rental income	600	39	(4)	635	635	–
Finance lease interest	1	–	–	1	1	–
Gross rental income (before rents payable)	601	39	(4)	636	636	–
Rents payable	(11)	(1)	–	(12)	(12)	–
Gross rental income (after rents payable)	590	38	(4)	624	624	–
Service charge income 4	155	11	(1)	165	165	–
Service charge expense	(165)	(12)	1	(176)	(176)	–
Net service charge expense	(10)	(1)	–	(11)	(11)	–
Other property related income 4	35	2	(1)	36	36	–
Direct property expenditure	(104)	(6)	1	(109)	(109)	–
Other operating income	10	–	–	10	10	–
Other operating expense	(9)	–	–	(9)	(9)	–
Movement in bad and doubtful debts provision	9	2	–	11	11	–
Segment net rental income	521	35	(4)	552	552	–
Other income	1	–	–	1	1	–
Administrative expense	(71)	–	–	(71)	(71)	–
Depreciation , including amortisation of software	(3)	–	–	(3)	(3)	–
EPRA earnings before interest	448	35	(4)	477	479	–
Share of post-tax profit/(loss) from joint ventures	37	(37)	–	–	–	–
(Loss)/profit on disposal of investment properties 3	(15)	3	–	(12)	–	(12)
Loss on disposal of trading properties	(6)	–	–	(6)	–	(6)
Net surplus on revaluation of investment properties	91	13	3	107	–	107
Net development contract and transaction income/(expenditure)	3	(2)	–	1	–	1
Reversal of impairment of amounts due from joint ventures	1	–	–	1	–	1
Impairment of goodwill	(22)	–	–	(22)	–	(22)
Impairment of trading properties	(4)	–	–	(4)	–	(4)
Depreciation	(1)	–	–	(1)	–	(1)
Other costs	(6)	(1)	–	(7)	–	(7)
Operating profit/(loss)	526	11	(1)	536	479	57
Finance income	15	–	–	15	15	–
Finance expense	(148)	(11)	1	(158)	(120)	(38)
Profit before tax	393	–	–	393	374	19
Taxation	3	–	–	3
Profit for the year	396	–	–	396

1. Reallocation of the share of post-tax profit from joint ventures reported in the Group income statement to the individual line items reported in the segmental results table.

2. Removal of the non-wholly owned share of results of the Group’s subsidiaries. The non-wholly owned subsidiaries are consolidated at 100% in the Group’s income

statement, but only the Group’s share is included in EPRA earnings reported in the segmental results table. The non-owned element of the Group’s subsidiaries are included

in the ‘Capital and other items’ column presented in the Group’s income statement, together with items not directly related to the underlying rental business such as

investment properties valuation changes, profits or losses on the disposal of investment properties, the proceeds from, and costs of, the sale of trading properties, income

from and costs associated with development contracts, amortisation and impairment of intangibles, and other attributable costs, arising on business combinations.

3. Included in the loss on disposal of investment properties is a £1m charge (2024: £2m charge) related to the provision for fire safety remediation works on properties no

longer owned by the Group but for which the Group is responsible for remediating under the Building Safety Act 2022.

4. Current year balances reflect a reclassification of joint venture service charge management fee income from other property related income to service charge income of

£3m. While the comparatives have not been restated in table 73, the equivalent reclassification would have been £3m.

LANDSEC ANNUAL REPORT 2025102

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

5 › PERFORMANCE MEASURES

In the tables below, we present earnings per share attributable to shareholders of the parent, calculated in accordance with IFRS, and net assets

per share attributable to shareholders of the parent together with certain measures defined by the European Public Real Estate Association

(EPRA), which have been included to assist comparison between European property companies. Three of the Group’s key financial performance

measures are EPRA earnings per share, EPRA Net Tangible Assets per share and Total return on equity. Refer to table 53 in the Business analysis

section for further details on these alternative performance measures.

EPRA earnings, which is a tax adjusted measure of underlying earnings, is the basis for the calculation of EPRA earnings per share. We believe

EPRA earnings and EPRA earnings per share provide further insight into the results of the Group’s operational performance to stakeholders as

they focus on the rental income performance of the business and exclude Capital and other items which can vary significantly from year to year.

EARNINGS PER SHARE

	Year ended 31 March 2025			Year ended 31 March 2024
	Profit for	EPRA	Loss for	EPRA
	the year	earnings	the year	earnings
	£m	£m	£m	£m
Profit/(loss) attributable to shareholders of the parent	396	396	(319)	(319)
Valuation and loss on disposals	–	(84)	–	650
Net finance expense (excluded from EPRA earnings)	–	39	–	20
Impairment of goodwill	–	22	–	1
Taxation	–	(3)	–	–
Other	–	4	–	19
Profit/(loss) used in per share calculation	396	374	(319)	371
	IFRS	EPRA	IFRS	EPRA
Basic earnings/(loss) per share	53.3p	50.3p	(43.0)p	50.1p
Diluted earnings/(loss) per share 1	53.0p	50.1p	(43.0)p	50.1p

1. In the year ended 31 March 2024, share options are excluded from the weighted average diluted number of shares when calculating IFRS and EPRA diluted (loss)/earnings

per share because they are not dilutive.

NET ASSETS PER SHARE

			31 March 2025			31 March 2024
	Net assets	EPRA NDV	EPRA NTA	Net assets	EPRA NDV	EPRA NTA
	£m	£m	£m	£m	£m	£m
Net assets attributable to shareholders of the parent	6,514	6,514	6,514	6,402	6,402	6,402
Shortfall of fair value over net investment in finance leases	–	(8)	(8)	–	(5)	(5)
book value
Other intangible asset	–	–	(2)	–	–	(2)
Fair value of interest-rate swaps	–	–	(1)	–	–	(22)
Excess of fair value of trading properties over book value	–	27	27	–	25	25
Shortfall of fair value of debt over book value (note 23)	–	334	–	–	313	–
Net assets used in per share calculation	6,514	6,867	6,530	6,402	6,735	6,398
	IFRS	EPRA NDV	EPRA NTA	IFRS	EPRA NDV	EPRA NTA
Net assets per share	877p	n/a	n/a	863p	n/a	n/a
Diluted net assets per share	872p	919p	874p	859p	904p	859p

LANDSEC ANNUAL REPORT 2025 103

NUMBER OF SHARES

		2025		2024
	Weighted		Weighted
	average	31 March	average	31 March
	million	million	million	million
Ordinary shares	752	752	751	752
Treasury shares	(7)	(7)	(7)	(7)
Own shares	(2)	(2)	(3)	(3)
Number of shares – basic	743	743	741	742
Dilutive effect of share options	4	4	3	3
Number of shares – diluted	747	747	744	745

Total return on equity is calculated as the cash dividends per share paid in the year plus the change in EPRA NTA per share, divided by the opening

EPRA NTA per share. We consider this to be a useful measure for shareholders as it gives an indication of the total return on equity over the year.

TOTAL RETURN ON EQUITY BASED ON EPRA NTA

	Year ended	Year ended
	31 March 2025	31 March 2024
	pence	pence
Increase/(decrease) in EPRA NTA per share	15	(77)
Dividend paid per share in the year (note 11)	40	39
Total return (a)	55	(38)
EPRA NTA per share at the beginning of the year (b)	859	936
Total return on equity (a/b)	6.4%	(4.0)%

6 › REVENUE

ACCOUNTING POLICY

Rental income, including fixed rental uplifts, is recognised in the income statement on a straight-line basis over the term of the lease. Lease

incentives being offered to occupiers to enter into a lease, such as an initial rent-free period or a cash contribution to fit-out or similar costs, are

an integral part of the net consideration for the use of the property and are therefore recognised on the same straight-line basis. Where the total

consideration due under a lease is modified, for example, where a concession is granted to a tenant prior to the date the conceded rent falls due,

the revised total amount due under the lease is recognised on a straight-line basis over the remaining term of the lease.

Contingent rents, being lease payments that are not fixed at the inception of a lease, for example turnover rents as well as surrender premiums

net of dilapidations, are considered as variable consideration and are recorded as income in the year in which they are earned. Where a single

payment is received from a tenant to cover both rent and service charge, the service charge component is separated and reported as service

charge income.

The Group’s revenue from contracts with customers, as defined in IFRS 15, includes service charge income, other property related income, trading

property sales proceeds, development contract income and other income.

Service charge income and management fees are recorded as income over time in the year in which the services are rendered. Revenue is

recognised over time because the tenants benefit from the services as soon as they are rendered by the Group. The actual service provided during

each reporting period is determined using cost incurred as the input method.

Other property related income includes development and asset management fees. These fees are recognised over time, using time elapsed as

the input method which measures the benefit simultaneously received and consumed by the customer, over the period the development or asset

management services are provided.

Proceeds received on the sale of trading properties are recognised when control of the property transfers to the buyer, i.e. the buyer has the

ability to direct the use of the property and the right to the cash inflows and outflows generated by it. This generally occurs on unconditional

exchange or on completion. If completion is expected to occur significantly after exchange or if the Group has significant outstanding

obligations between exchange and completion, the Group assesses whether there are multiple performance obligations in the contract

and recognises revenue as each performance obligation is satisfied.

When property is let under a finance lease, the Group recognises a receivable equal to the net investment in the lease at inception of the lease.

Rentals received are accounted for as repayments of principal and finance income as appropriate. Finance income is allocated to each period

during the lease term so as to produce a constant periodic rate of interest on the remaining net investment in the finance lease and is recognised

within revenue.

LANDSEC ANNUAL REPORT 2025104

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

Revenue on development contracts is recognised over time over the period of the contract as the Group creates or enhances an asset that the

customer controls. Progress towards completion of the development, by reference to the value of work completed using the costs incurred to

date as a proportion of total costs expected to be incurred over the term of the contract is used as the input method.

Other income includes turnover generated from the provision of equipment, facilities and services to customers through the Group’s studio

and hotel operations. Revenue is recognised over time as customers obtain control of the promised goods or services, typically upon delivery

or as services are rendered.

SIGNIFICANT ACCOUNTING JUDGEMENT

For those properties where the property management activities are performed by a third party, the Group considers the third party to be the

principal delivering the service. The key factors considered by the Group when making this judgement include the following responsibilities of

the third party:

•

selecting suppliers and ensuring all services are delivered

•

establishing prices and seeking efficiencies

•

risk management and compliance

In addition, the residual rights residing with the Group are generally protective in nature.

All revenue is classified within the ‘EPRA earnings’ column of the income statement, with the exception of proceeds from the sale of trading

properties, income from development contracts or transactions and the non-owned element of the Group’s subsidiaries which are presented

in the ‘Capital and other items’ column.

			2025			2024
		Capital			Capital
	EPRA	and other		EPRA	and other
	earnings	items	Total	earnings	items	Total
	£m	£m	£m	£m	£m	£m
Rental income (excluding adjustment for lease incentives)	563	4	567	598	8	606
Adjustment for lease incentives	33	–	33	16	–	16
Rental income	596	4	600	614	8	622
Service charge income 1	154	1	155	115	2	117
Trading property sales proceeds	–	22	22	–	26	26
Other property related income 1	34	1	35	35	–	35
Finance lease interest	1	–	1	1	–	1
Development contract and transaction income	–	17	17	–	22	22
Other operating income	10	–	10	–	–	–
Other income	2	–	2	1	–	1
Revenue per the income statement	797	45	842	766	58	824

1. Current year balances reflect a reclassification of joint venture service charge management fee income from other property related income to service charge income of £3m.

While the comparatives have not been restated, the equivalent reclassification would have been £3m.

6 › REVENUE CONTINUED

LANDSEC ANNUAL REPORT 2025 105

The following table reconciles revenue per the income statement to the individual components of revenue presented in note 4.

				2025				2024
			Adjustment				Adjustment
			for non-				for non-
		Joint	wholly owned			Joint	wholly owned
	Group	ventures	subsidiaries		Group	ventures	subsidiaries
	£m	£m	£m	Total	£m	£m	£m	Total
Rental income	600	39	(4)	635	622	38	(8)	652
Service charge income 1	155	11	(1)	165	117	8	(2)	123
Other property related income 1	35	2	(1)	36	35	3	–	38
Finance lease interest	1	–	–	1	1	–	–	1
Other operating income	10	–	–	10	–	–	–	–
Other income	2	–	(1)	1	1	–	–	1
Revenue in the segmental	803	52	(7)	848	776	49	(10)	815
information note
Development contract and transaction income	17	–	–	17	22	–	–	22
Trading property sales proceeds	22	–	–	22	26	–	–	26
Revenue including Capital and other items	842	52	(7)	887	824	49	(10)	863

1. Current year balances reflect a reclassification of joint venture service charge management fee income from other property related income to service charge income of £3m.

While the comparatives have not been restated, the equivalent reclassification would have been £3m.

7 › COSTS

ACCOUNTING POLICY

The carrying amounts of the Group’s non-financial assets, other than investment properties, are reviewed at each reporting date to determine

whether there is any indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is

recognised in the income statement whenever the carrying amount of an asset exceeds its recoverable amount. The recoverable amount of an

asset is the greater of its fair value less costs to sell and its value in use. The value in use is determined as the net present value of the future cash

flows expected to be derived from the asset, discounted using a pre-tax discount rate that reflects current market assessments of the time value

of money and the risks specific to the asset. An impairment loss is reversed if there has been a change in the estimates used to determine the

recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount after the reversal does not exceed the

amount that would have been determined, net of applicable depreciation, if no impairment loss had been recognised.

Rents payable reflect amounts due under head leases. Where rents payable are variable, and do not depend on an index or rate, the payments

are recognised in the income statement as incurred. Where these rents are fixed, or in-substance fixed, at the inception of the agreement,

or become fixed or in-substance fixed at some point over the life of the agreement, an asset representing the right to use the underlying land

and a corresponding liability for the present value of the minimum future lease payments are recognised on the Group’s balance sheet within

Investment properties and borrowings respectively.

All costs are classified within the ‘EPRA earnings’ column of the income statement, with the exception of the cost of sale of trading properties,

costs arising on development contracts or transactions, amortisation and impairments of intangible assets, and other attributable costs, arising

on business combinations and the non-owned element of the Group’s subsidiaries which are presented in the ‘Capital and other items’ column.

LANDSEC ANNUAL REPORT 2025106

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

			2025			2024
		Capital			Capital
	EPRA	and other		EPRA	and other
	earnings	items	Total	earnings	items	Total
	£m	£m	£m	£m	£m	£m
Rents payable	11	–	11	11	–	11
Service charge expense	164	1	165	130	3	133
Direct property expenditure	103	1	104	113	1	114
Movement in bad and doubtful debts provision	(9)	–	(9)	(6)	–	(6)
Administrative expenses	71	–	71	73	–	73
Impairment of trading properties	–	4	4	–	11	11
Cost of trading property disposals	–	28	28	–	26	26
Development contract and transaction expenditure	–	14	14	–	40	40
Depreciation, including amortisation of software	3	1	4	4	2	6
(Reversal)/impairment of amounts due from joint ventures	–	(1)	(1)	–	2	2
Impairment of goodwill	–	22	22	–	1	1
Fair value gain on remeasurement of investment	–	–	–	–	(3)	(3)
Other operating expense	9	–	9	–	–	–
Other costs	–	7	7	–	1	1
Total costs per the income statement	352	77	429	325	84	409

The following table reconciles costs per the income statement to the individual components of costs presented in note 4.

				2025				2024
			Adjustment				Adjustment
			for non-				for non-
		Joint	wholly owned			Joint	wholly owned
	Group	ventures	subsidiaries	Total	Group	ventures	subsidiaries	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Rents payable	11	1	–	12	11	1	–	12
Service charge expense	165	12	(1)	176	133	9	(3)	139
Direct property expenditure	104	6	(1)	109	114	6	(1)	119
Administrative expenses	71	–	–	71	73	1	–	74
Depreciation, including amortisation	3	–	–	3	4	–	–	4
of software
Movement in bad and doubtful	(9)	(2)	–	(11)	(6)	–	–	(6)
debts provision
Costs in the segmental information note	345	17	(2)	360	329	17	(4)	342
Impairment of trading properties	4	–	–	4	11	–	–	11
Cost of trading property disposals	28	–	–	28	26	–	–	26
Development contract and transaction expenditure	14	2	–	16	40	–	–	40
Depreciation	1	–	–	1	2	–	–	2
(Reversal)/impairment of amounts	(1)	–	–	(1)	2	–	–	2
due from joint ventures
Impairment of goodwill	22	–	–	22	1	–	–	1
Fair value gain on remeasurement	–	–	–	–	(3)	–	–	(3)
of investment
Other operating expense	9	–	–	9	–	–	–	–
Other costs	7	–	–	7	1	–	–	1
Costs including Capital and other items	429	19	(2)	446	409	17	(4)	422

7 › COSTS CONTINUED

LANDSEC ANNUAL REPORT 2025 107

The Group’s costs include employee costs for the year of £92m (2024: £83m), of which £9m (2024: £7m) is within service charge expense,

£67m (2024: £62m) is within administrative expenses and £16m (2024: £14m) is within direct property expenditure.

EMPLOYEE COSTS

	2025	2024
	£m	£m
Salaries and wages	71	63
Employer payroll taxes	10	8
Other employee costs	5	4
Share-based payments (note 37)	6	8
	92	83

	2025	2024
	Number	Number
The average monthly number of employees during the year was:
Indirect property or contract and administration	394	382
Direct property or contract services:
Full-time	291	204
Part-time	19	12
	704	598

With the exception of the Executive Directors who are employed by Land Securities Group PLC, all employees are employed by subsidiaries of the

Group. The employee costs for Land Securities Group PLC are borne by another Group company.

During the year, none (2024: none) of the Executive Directors had retirement benefits accruing under the defined benefit scheme. Information

on Directors’ emoluments share options and interests in the Company’s shares is given in the Directors’ Remuneration Report on pages 69-79.

Details of the employee costs associated with the Group’s key management personnel are included in note 41.

8 › AUDITOR REMUNERATION

	2025	2024
	£m	£m
Services provided by the Group’s auditor
Audit fees:
Audit of parent company and consolidated financial statements	1.3	1.3
Audit of subsidiary undertakings	0.8	1.2
Audit of joint ventures	0.1	0.1
	2.2	2.6
Non-audit fees:
Other assurance services	0.3	0.4
	2.5	3.0

It is the Group’s policy to employ the Group’s auditor on assignments additional to their statutory duties where their expertise and experience

with the Group are important. Where appropriate the Group seeks tenders for services. If fees for an assignment are expected to be greater than

£25,000, they are pre-approved by the Audit Committee.

LANDSEC ANNUAL REPORT 2025108

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

9 › EXTERNAL VALUERS’ REMUNERATION

	2025	2024
	£m	£m
Services provided by the Group’s external valuers
Year-end and half-yearly valuations – Group	1.3	1.2
– Joint ventures	0.1	0.1
Other consultancy and agency services – CBRE	3.6	2.6
– JLL	0.5	0.8
	5.5	4.7

CBRE Limited (CBRE) and Jones Lang LaSalle Limited (JLL) are the Group’s principal valuers. The fee arrangements with CBRE and JLL for the

valuation of the Group’s properties is fixed, subject to an adjustment for acquisitions and disposals. The fees of both CBRE and JLL have been

included in the table above. CBRE and JLL undertake other consultancy and agency work on behalf of the Group. CBRE and JLL have confirmed

to us that the total fees paid by the Group represented less than 5% of their total revenues from all clients in both the current and prior year.

10 › NET FINANCE EXPENSE

			2025			2024
		Capital			Capital
	EPRA	and other		EPRA	and other
	earnings	items	Total	earnings	items	Total
	£m	£m	£m	£m	£m	£m
Finance income
Interest receivable from joint ventures	11	–	11	11	–	11
Other interest receivable	4	–	4	–	1	1
	15	–	15	11	1	12
Finance expense
Bond and debenture debt	(101)	–	(101)	(85)	–	(85)
Bank and other short-term borrowings	(36)	(5)	(41)	(35)	(2)	(37)
Fair value movement on derivatives	–	(34)	(34)	–	(22)	(22)
Other interest payable	–	–	–	(1)	–	(1)
	(137)	(39)	(176)	(121)	(24)	(145)
Interest capitalised in relation to properties under development	28	–	28	19	–	19
	(109)	(39)	(148)	(102)	(24)	(126)
Net finance expense	(94)	(39)	(133)	(91)	(23)	(114)
Joint venture net finance expense	(11)			(11)
Net finance expense included in EPRA earnings	(105)			(102)

Lease interest payable of £8m (2024: £4m) is included within rents payable as detailed in note 4.

LANDSEC ANNUAL REPORT 2025 109

11 › DIVIDENDS

ACCOUNTING POLICY

Interim dividend distributions to shareholders are recognised in the financial statements when paid. Final dividend distributions are recognised

as a liability in the period in which they are approved by shareholders.

All significant cash payments for the parent company, including dividend payments, are made by the Group’s treasury function in accordance

with the Group’s financial risk management policy.

				Pence per share	Year ended 31 March
					2025	2024
	Payment date	PID	Non-PID	Total	£m	£m
For the year ended 31 March 2023:
Third interim	6 April 2023	9.0 0	–	9.00		67
Final	21 July 2023	12.00	–	12.00		89
For the year ended 31 March 2024:
First interim	6 October 2023	9.00	–	9.00		67
Second interim	2 January 2024	9.20	–	9.20		68
Third interim	12 April 2024	9.30	–	9.30	69
Final	26 July 2024	12.10	–	12.10	90
For the year ended 31 March 2025:
First interim	4 October 2024	9.20	–	9.20	68
Second interim	8 January 2025	–	9.4 0	9.40	70
Gross dividends					297	291
Dividends in the statement of changes in equity					297	291
Timing difference on payment of withholding tax					8	–
Dividends in the statement of cash flows					305	291

The third quarterly interim dividend of 9.5 pence per ordinary share, or £71m in total (2024: 9.3 pence or £69m in total), was paid on 11 April 2025

as a Property Income Distribution (PID). The Board has recommended a final dividend for the year ended 31 March 2025 of 12.3 pence per ordinary

share (2024: 12.1 pence) to be paid as a PID. This final dividend will result in a further estimated distribution of £92m (2024: £90m). Subject to

shareholders’ approval at the Annual General Meeting, the final dividend will be paid on 25 July 2025 to shareholders registered at the close of

business on 13 June 2025.

The total dividend paid and recommended in respect of the year ended 31 March 2025 is 40.4 pence per ordinary share (2024: 3 9 .6 pence)

resulting in a total estimated distribution of £301m (2024: £294m).

For the year ending 31 March 2026, the Group will pay two half-yearly dividends, likely to be in January 2026 and July 2026.

A Dividend Reinvestment Plan (DRIP) has been available in respect of all dividends paid during the year. The last day for DRIP elections for the

final dividend is close of business on 27 June 2025.

LANDSEC ANNUAL REPORT 2025110

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

12 › INCOME TAX

ACCOUNTING POLICY

Income tax on the profit or loss for the year comprises current and deferred tax. Current tax is the tax payable on the taxable income for the

year and any adjustment in respect of previous years. Deferred tax is provided in full using the balance sheet liability method on temporary

differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.

Deferred tax is determined using tax rates that have been enacted or substantively enacted by the reporting date and are expected to apply

when the asset is realised, or the liability is settled.

No provision is made for temporary differences (i) arising on the initial recognition of assets or liabilities, other than on a business combination,

that affect neither accounting nor taxable profit and (ii) relating to investments in subsidiaries to the extent that they will not reverse in the

foreseeable future.

SIGNIFICANT ACCOUNTING JUDGEMENT

The Group is a REIT. As a result, the Group does not pay UK corporation tax on its profits and gains from the qualifying rental business in the UK.

Non-qualifying profits and gains of the Group continue to be subject to corporation tax as normal. In order to maintain Group REIT status,

certain ongoing criteria must be met. The main criteria are as follows:

•

at the start of each accounting period, the assets of the tax exempt business must be at least 75% of the total value of the Group’s assets

•

at least 75% of the Group’s total profits must arise from the tax exempt business

•

at least 90% of the notional taxable profit of the property rental business must be distributed

The Directors intend that the Group should continue as a REIT for the foreseeable future, with the result that deferred tax is no longer recognised

on temporary differences relating to the property rental business.

Deferred tax assets and liabilities require management judgement in determining the amounts, if any, to be recognised. In particular, judgement

is required when assessing the extent to which deferred tax assets should be recognised, taking into account the expected timing and level

of future taxable income. Deferred tax assets are only recognised when management believes it is probable that future taxable profits will be

available against which the deductible temporary differences can be utilised.

The major components of income tax for the years ended 31 March 2025 and 2024 are:

	2025	2024
	£m	£m
Income statement:
Current income tax charge	–	–
Deferred income tax credit	(3)	–
Statement of other comprehensive income:
Deferred income tax charge/(credit)	3	(4)
Total income tax charge/(credit) in the consolidated statement of comprehensive income	–	(4)

LANDSEC ANNUAL REPORT 2025 111

The tax for the year is lower than the standard rate of corporation tax in the UK of 25% (2024: 25%). The differences are explained as below.

	2025	2024
	£m	£m
Profit/(loss) before tax	393	(341)
Profit/(loss) before tax multiplied by the rate of corporation tax in the UK of 25% (2024: 25%)	98	(85)
Adjustment for exempt property rental (profits)/losses and revaluations in the year	(110)	91
	(12)	6
Effects of:
Timing difference on repurchase of medium-term notes	(11)	(14)
Interest rate fair value movements and other temporary differences	6	4
Impairment of goodwill	5	–
Revaluation of owner-occupied property	(3)	–
Non-allowable expenses and non-taxable items	12	–
Movement in unrecognised tax losses	3	–
Total income tax charge/(credit) in the consolidated statement of comprehensive income	–	(4)

Deferred tax is calculated at the rate substantively enacted at the balance sheet date of 25% (2024: 25%). There are unrecognised deferred

tax assets on the following items due to the high degree of uncertainty as to their future utilisation by non-REIT qualifying activities.

A £3m deferred tax liability has been recognised in the statement of comprehensive income for the revaluation movement of owner-occupied

property utilised against £3m of deferred tax assets arising from brought forward capital losses.

	2025	2024
	£m	£m
Revenue losses	247	264
Capital losses	263	267
Other unrecognised temporary differences	2	7
Total unrecognised items	512	538

The other unrecognised temporary differences relate primarily to capital allowances and the fair value movement in the owner-occupied property

at 31 March 2025. In the prior year, these temporary differences relate primarily to the premium paid on the redemption of the Group’s medium-

term notes. The premium paid was expensed in full in prior years, whereas a tax deduction is taken over the remaining term.

LANDSEC ANNUAL REPORT 2025112

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

13 › NET CASH GENERATED FROM OPERATIONS

RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH GENERATED FROM OPERATIONS

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Operating profit/(loss)	526	(227)	(329)	(605)
Adjustments for:
Net (surplus)/deficit on revaluation of investment properties	(91)	628	–	–
Loss on disposal of trading properties	6	–	–	–
Loss on disposal of investment properties	15	16	–	–
Share of profit from joint ventures	(37)	(2)	–	–
Share-based payment charge	6	8	–	–
Impairment of goodwill	22	1	–	–
(Reversal)/impairment of amounts due from joint ventures	(1)	2	–	–
Fair value gain on remeasurement of investment	–	(3)	–	–
Non-cash development contract and transaction expenditure	1	26	–	–
Impairment of investment in subsidiary	–	–	302	578
Rents payable	11	11	–	–
Depreciation and amortisation	4	4	–	–
Impairment of trading properties	4	11	–	–
	466	475	(27)	(27)
Changes in working capital:
Increase in receivables	(128)	(32)	–	–
Increase/(decrease) in payables and provisions	43	(14)	27	27
Net cash generated from operations	381	429	–	–

RECONCILIATION TO ADJUSTED NET CASH INFLOW FROM OPERATING ACTIVITIES

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Net cash inflow from operating activities	256	338	–	–
Joint ventures net cash inflow from operating activities	4	15	–	–
Adjusted net cash inflow from operating activities 1	260	353	–	–

1. Includes cash flows relating to the interest in Liverpool ONE (2024: MediaCity) which is not owned by the Group but is consolidated in the Group numbers.

LANDSEC ANNUAL REPORT 2025 113

SECTION 3 – PROPERTIES

This section focuses on the property assets which form the core of the Group’s business. It includes details of investment properties, investments

in joint ventures and trading properties.

Our property portfolio is a combination of properties that are wholly owned by the Group, part owned through joint arrangements and properties

owned by the Group but where a third party holds a non-controlling interest. In the Group’s IFRS balance sheet, wholly owned properties and

properties owed by the Group but where a third party holds a non-controlling interest are presented as either ‘Investment properties’ or ‘Trading

properties’. The Group applies equity accounting to its investments in joint ventures, which requires the Group’s share of properties held by joint

ventures to be presented within ‘Investments in joint ventures’.

Internally, management review the results of the Group on a basis that adjusts for these forms of ownership to present a proportionate share.

The Combined Portfolio, with assets totalling £10.9bn, is an example of this proportionate share, reflecting the economic interest we have in our

properties regardless of our ownership structure. We consider this presentation provides further insight to stakeholders about the activities and

performance of the Group, as it aggregates the results of all of the Group’s property interests which under IFRS are required to be presented

across a number of line items in the statutory financial statements.

The Group’s investment properties are carried at fair value and trading properties are carried at the lower of cost and net realisable value.

Both of these values are determined by the Group’s external valuers. The combined value of the Group’s total investment property portfolio

(including the Group’s share of investment properties held through joint ventures) is shown as a reconciliation in note 14.

ACCOUNTING POLICY

INVESTMENT PROPERTIES

Investment properties are properties, either owned or leased by the Group, that are held either to earn rental income or for capital appreciation,

or both. Investment properties are measured initially at cost including related transaction costs, and subsequently at fair value. Fair value is

based on market value, as determined by a professional external valuer at each reporting date. The difference between the fair value of an

investment property at the reporting date and its carrying amount prior to remeasurement is included in the income statement as a valuation

surplus or deficit. Investment properties are presented on the balance sheet within non-current assets.

Some of the Group’s investment properties are owned through long-leasehold arrangements, as opposed to the Group owning the freehold.

Where the Group is a lessee, a right-of-use asset is recognised at the commencement date of the lease and accounted for as investment

property. Initially, the cost of investment properties held under leases includes the amount of lease liabilities recognised, initial direct costs

incurred, and lease payments made at or before the commencement date less any lease incentives received. The investment properties held

under leases are subsequently carried at their fair value. A corresponding liability is recorded within borrowings. Each lease payment is allocated

between repayment of the liability and a finance charge to achieve a constant interest rate on the outstanding liability.

TRADING PROPERTIES

Trading properties are those properties held-for-sale, or those being developed with a view to sell. Trading properties are recorded at the lower

of cost and net realisable value. The net realisable value of a trading property is determined by a professional external valuer at each reporting

date. If the net realisable value of a trading property is lower than its carrying value, an impairment loss is recorded in the income statement.

If, in subsequent periods, the net realisable value of a trading property that was previously impaired increases above its carrying value, the

impairment is reversed to align the carrying value of the property with the net realisable value. Trading properties are presented on the balance

sheet within current assets.

ACQUISITION OF PROPERTIES

Properties are treated as acquired when the Group assumes control of the property.

CAPITAL EXPENDITURE AND CAPITALISATION OF BORROWING COSTS

Capital expenditure on properties consists of costs of a capital nature, including costs associated with developments and refurbishments.

Where a property is being developed or undergoing major refurbishment, interest costs associated with direct expenditure on the property are

capitalised. Where borrowings are specifically used to finance any capital expenditure on the properties, the actual borrowing costs incurred

are capitalised. However, where borrowings are used generally to finance the operations of the Group, the interest capitalised is calculated using

the Group’s weighted average cost of borrowings. Interest is capitalised from the commencement of the development work until the date of

practical completion. Certain internal staff and associated costs directly attributable to the management of major schemes are also capitalised.

The total staff and associated costs are capitalised based on the proportion of time spent on the relevant scheme. Internal staff costs are

capitalised from the date the Group determines it is probable that the development will progress until the date of practical completion.

LANDSEC ANNUAL REPORT 2025114

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

TRANSFERS BETWEEN INVESTMENT PROPERTIES AND TRADING PROPERTIES

When the Group begins to redevelop an existing investment property for continued future use as an investment property, the property continues

to be held as an investment property. When the Group begins to redevelop an existing investment property with a view to sell, the property

is transferred to trading properties and held as a current asset. The property is remeasured to fair value as at the date of the transfer with any

gain or loss being taken to the income statement. The remeasured amount becomes the deemed cost at which the property is then carried in

trading properties.

DISPOSAL OF PROPERTIES

Properties are treated as disposed when control of the property is transferred to the buyer. Typically, this will either occur on unconditional

exchange or on completion. Where completion is expected to occur significantly after exchange, or where the Group continues to have

significant outstanding obligations after exchange, the control will not usually transfer to the buyer until completion.

The profit on disposal is determined as the difference between the sales proceeds and the carrying amount of the asset at the beginning of the

accounting period plus capital expenditure to the date of disposal. The profit on disposal of investment properties is presented separately on

the face of the income statement. Proceeds received on the sale of trading properties are recognised within Revenue, and the carrying value

at the date of disposal is recognised within Costs.

SIGNIFICANT ACCOUNTING JUDGEMENT

ACQUISITION AND DISPOSAL OF PROPERTIES

Property transactions can be complex in nature and material to the financial statements. To determine when an acquisition or disposal should

be recognised, management consider whether the Group assumes or relinquishes control of the property, and the point at which this is obtained

or relinquished. Consideration is given to the terms of the acquisition or disposal contracts and any conditions that must be satisfied before the

contract is fulfilled. In the case of an acquisition, management must also consider whether the transaction represents an asset acquisition or

business combination.

KEY ACCOUNTING ESTIMATES AND OTHER SOURCES OF ESTIMATION UNCERTAINTY

VALUATION OF THE GROUP’S PROPERTIES

The valuation of the Group’s property portfolio has been undertaken by independent valuers in accordance with the Royal Institution of

Chartered Surveyors (RICS) Valuation – Global Standards and UK Supplement (together the ‘Red Book’). Real estate by its nature is a complex

asset class with value determined by a range of factors overlaid by interpretation and judgemental assessment of market data; as such it is

classified as ‘Level 3 asset’ within IFRS. Factors affecting valuation are on an individual property level and include the property type, location,

tenure and tenancy characteristics, quality of the asset and prospects for future rental revenue.

The Group’s investment property valuation has been undertaken by valuers interpreting market evidence as available in reaching their conclusions

on Fair Value, reflecting asset specific data provided by Management, making assumptions that tenure, tenancies, town planning and condition

of buildings are as provided. As a result, the valuations the Group places on its property portfolio are subject to a degree of uncertainty and are

made on the basis of assumptions which may not prove to be accurate, particularly in periods of volatility or low transaction volume in the

property market.

The estimation of the net realisable value of the Group’s trading properties, in particular the development land and infrastructure programmes,

is inherently subjective due to a number of factors, including their complexity, unusually large size, the substantial expenditure required and

long timescales to completion. In addition, as a result of these timescales to completion, the plans associated with these programmes could be

subject to significant market variation over the course of development. As a result, and similar to the valuation of investment properties, the net

realisable values of the Group’s trading properties are subject to a degree of uncertainty and are determined on the basis of assumptions which

may not prove to be accurate.

If the assumptions upon which the external valuer has based its valuations prove to be inaccurate, this may have an impact on the value of the

Group’s investment and trading properties, which could in turn have an effect on the Group’s financial position and results.

LANDSEC ANNUAL REPORT 2025 115

14 › INVESTMENT PROPERTIES

	2025	2024
	£m	£m
Net book value at the beginning of the year	9,330	9,658
Acquisitions of investment properties	642	144
Capital expenditure	473	374
Capitalised interest	27	19
Net movement in head leases capitalised 1	86	(30)
Disposals 2	(479)	(207)
Net surplus/(deficit) on revaluation of investment properties	91	(628)
Transfer to property, plant and equipment (note 20)	(26)	–
Transfer to assets held-for-sale (note 44)	(110)	–
Net book value at the end of the year	10,034	9,330

1. See note 23 for details of the amounts payable under head leases and note 4 for details of the rents payable in the income statement.

2. Includes impact of disposals of finance leases.

The market value of the Group’s investment properties, as determined by the Group’s external valuers, differs from the net book value presented

in the balance sheet due to the Group presenting tenant finance leases, head leases and lease incentives separately. The following table reconciles

the net book value of the investment properties to the market value.

				2025				2024
			Adjustment				Adjustment
			for non-				for non-
		Joint	wholly owned	Combined		Joint	wholly owned	Combined
	Group	ventures 1	subsidiaries	Portfolio	Group	ventures 1	subsidiaries	Portfolio
	£m	£m	£m	£m	£m	£m	£m	£m
Market value	10,125	636	(33)	10,728	9,4 65	616	(118)	9,963
Less: properties treated as finance leases	(12)	–	–	(12)	(18)	–	–	(18)
Plus: head leases capitalised	158	1	–	159	77	1	–	78
Less: tenant lease incentives	(237)	(29)	–	(266)	(194)	(32)	–	(226)
Net book value	10,034	608	(33)	10,609	9,330	585	(118)	9,797
Net surplus/(deficit) on revaluation	91	13	3	107	(628)	(19)	22	(625)
of investment properties

1. Refer to note 16 for a breakdown of this amount by entity.

The net book value of leasehold properties where head leases have been capitalised is £1,761m (2024: £1,604m).

Investment properties include capitalised interest of £317m (2024: £290m). The average rate of interest capitalisation for the year is 4.8% (2024:

4.8%). The gross historical cost of investment properties is £9,136m (2024: £8,502m).

VALUATION PROCESS

The fair value of investment properties at 31 March 2025 was determined by the Group’s external valuers, CBRE and JLL. The valuations are

in accordance with RICS standards and were arrived at by reference to market evidence of transactions for similar properties. The valuations

performed by the valuers are reviewed internally by Senior Management and other relevant people within the business. This process includes

discussions of the assumptions used by the valuers, as well as a review of the resulting valuations. Discussions of the valuation process and

results are held between Senior Management, the Audit Committee and the valuers on a half-yearly basis.

The valuers’ opinion of fair value was primarily derived using comparable recent market transactions on arm’s-length terms and using

appropriate valuation techniques. The fair value of investment properties is determined using the income capitalisation approach. Under this

approach, forecast net cash flows, based upon existing leases and current market derived estimated rental values (market rents) together with

estimated costs, are discounted at market derived capitalisation rates to produce the valuers’ opinion of fair value. The average discount rate,

which, if applied to all cash flows would produce the fair value, is described as the equivalent yield.

LANDSEC ANNUAL REPORT 2025116

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

Properties in the development programme are typically valued using a residual valuation method. Under this methodology, the valuer assesses

the completed development value using income and yield assumptions. Deductions are then made for estimated costs to complete, including

finance and developer’s profit, to arrive at the valuation. Costs include future estimated costs associated with refurbishment or development

(excluding finance costs), together with an estimate of cash incentives to be paid to tenants. As the development approaches completion,

the valuer may consider the income capitalisation approach to be more appropriate.

The Group considers all of its investment properties to fall within ‘Level 3’, as defined by IFRS 13 and as explained in note 27(iii). Accordingly, there

have been no transfers of properties within the fair value hierarchy in the financial year.

The table below summarises the key unobservable inputs used in the valuation of the Group’s wholly owned investment properties, and properties

owned by the Group but where a third party holds a non-controlling interest, at 31 March 2025:

										2025
	Market			Estimated rental value			Equivalent yield			Costs
	value			£ per sq ft			%			£ per sq ft
	£m	Low	Average	High	Low	Average	High	Low	Average 1	High
Central London
West End offices	2,760	21	91	140	4.4%	5.4%	6.1%	–	49	134
City offices	1,445	57	87	107	5.9%	6.2%	7.5 %	–	88	226
Retail and other	986	15	66	102	3.5%	5.0%	6.8%	–	33	237
Total Central London	5,191	15	85	140	3.5%	5.6%	7.5 %	–	57	237
Major retail
Shopping centres	1,836	8	12	39	6.8%	4.8%	8.7%	2	6	36
Outlets	626	49	53	56	6.5%	6.9%	8.1%	12	20	24
Total Major retail	2,462	8	23	56	6.5%	5.3%	8.7%	2	10	36
Mixed-use urban
London	190	8	22	27	5.6%	6.6%	10.0%	–	22	34
Major regional cities	530	17	28	73	5.8%	7.7%	10.1%	–	3	17
Total Mixed-use urban	720	8	26	73	5.6%	7.4 %	10.1%	–	8	34
Subscale sectors
Leisure	392	6	13	19	6.0%	8.8%	12.2%	–	3	26
Retails parks	252	14	17	24	6.1%	6.9%	7.7%	4	4	4
Total Subscale sectors	644	6	15	24	6.0%	8.0%	12.2%	–	3	26
Developments:	137	60	128	155	5.8%	5.9%	6.0%	–	–	–
income capitalisation method
Developments: residual method	971	80	95	164	5.2%	5.2%	5.4%	–	–	–
Development programme	1,108	60	99	164	5.2%	5.3%	6.0%	–	–	–
Market value at 31 March 2025 – Group	10,125

1. The calculation for average costs excludes those properties which are assumed by the Group’s external valuer to be substantially refurbished or redeveloped, but which do

not yet form part of the development programme.

14 › INVESTMENT PROPERTIES CONTINUED

LANDSEC ANNUAL REPORT 2025 117

The sensitivities below illustrate the impact of changes in key unobservable inputs (in isolation) on the fair value of the Group’s properties:

SENSITIVITIES

							2025
			Impact on valuations
			of 5% change		Impact on valuations		Impact on valuations
			in estimated		of 25 bps change		of 5% change
	Market		rental value		in equivalent yield		in costs
	value	Increase	Decrease	Decrease	Increase	Decrease	Increase
	£m	£m	£m	£m	£m	£m	£m
Total Central London (excluding developments)	5,191	197	(197)	271	(254)	7	(9)
Total Major retail (excluding developments)	2,462	102	(102)	87	(82)	4	(4)
Total Mixed-use urban (excluding developments)	720	23	(21)	19	(16)	1	(1)
Total Subscale sectors (excluding developments)	644	23	(21)	23	(22)	–	–
Developments: income capitalisation method	137	11	(13)	8	(10)	3	(3)
Developments: residual method	971	109	(109)	120	(109)	81	(76)
Market value at 31 March 2025 – Group	10,125	465	(463)	528	(493)	96	(93)

The table below summarises the key unobservable inputs used in the valuation of the Group’s wholly owned investment properties, and properties

owned by the Group but where a third party holds a non-controlling interest, at 31 March 2024:

										2024
	Market			Estimated rental value			Equivalent yield			Costs
	value			£ per sq ft			%			£ per sq ft
	£m	Low	Average	High	Low	Average	High	Low	Average 1	High
Central London
West End offices	2,754	20	85	132	4.3%	5.3%	5.8%	–	51	151
City offices	1,192	56	80	96	5.8%	6.0%	7. 5 %	–	124	226
Retail and other	956	15	57	121	4.5%	5.0%	6.5%	–	28	113
Total Central London	4,902	15	78	132	4.3%	5.4%	7. 5 %	–	64	226
Major retail
Shopping centres	1,059	10	17	39	7. 0 %	7.9 %	9.5%	–	5	12
Outlets	605	48	51	53	6.5%	7. 0 %	8.0%	14	16	17
Total Major retail	1,664	10	29	53	6.5%	7.6%	9.5%	–	9	17
Mixed-use urban
London	191	10	21	27	5.7%	6.6%	10.0%	–	2	2
Major regional cities	600	16	24	47	5.7%	7. 7 %	9.7%	–	3	13
Total Mixed-use urban	791	10	23	47	5.7%	7. 5 %	10.0%	–	3	13
Subscale sectors
Leisure	392	9	13	17	6.3%	8.9%	12.1%	–	3	29
Hotels	400	8	19	40	6.3%	7.2 %	8.8%	–	–	–
Retails parks	390	13	18	26	6.0%	6.8%	8.5%	–	1	5
Total Subscale sectors	1,182	8	17	40	6.0%	7. 6%	12.1%	–	1	29
Developments:	167	60	68	76	5.3%	5.7%	6.3%	–	–	–
income capitalisation method
Developments: residual method	759	73	89	103	5.0%	5.4%	6.2%	–	–	–
Development programme	926	60	85	103	5.0%	5.4%	6.3%	–	–	–
Market value at 31 March 2024 – Group	9,4 65

1. The calculation for average costs excludes those properties which are assumed by the Group’s external valuer to be substantially refurbished or redeveloped, but which do

not yet form part of the development programme.

LANDSEC ANNUAL REPORT 2025118

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

The sensitivities illustrate the impact of changes in key unobservable inputs (in isolation) on the fair value of the Group’s properties:

SENSITIVITIES

							2024
			Impact on valuations
			of 5% change		Impact on valuations		Impact on valuations
			in estimated		of 25 bps change		of 5% change
	Market		rental value		in equivalent yield		in costs
	value	Increase	Decrease	Decrease	Increase	Decrease	Increase
	£m	£m	£m	£m	£m	£m	£m
Total Central London (excluding developments)	4,902	188	(188)	260	(238)	9	(23)
Total Major retail (excluding developments)	1,664	68	(68)	58	(55)	4	(4)
Total Mixed-use urban (excluding developments)	791	24	(22)	22	(20)	4	(3)
Total Subscale sectors (excluding developments)	1,182	47	(45)	82	(41)	–	–
Developments: income capitalisation method	167	13	(13)	15	(14)	4	(4)
Developments: residual method	759	94	(94)	106	(90)	54	(54)
Market value at 31 March 2024 – Group	9,465	434	(430)	543	(458)	75	(88)

15 › TRADING PROPERTIES

	Development
	land and
	infrastructure	Residential	Total
	£m	£m	£m
At 1 April 2023	98	20	118
Capital expenditure	6	7	13
Capitalised interest	–	1	1
Disposals	(21)	–	(21)
Impairment provision	(11)	–	(11)
At 31 March 2024	72	28	100
Acquisitions	10	–	10
Capital expenditure	5	6	11
Capitalised interest	–	1	1
Disposals	(19)	(7)	(26)
Impairment provision	(4)	–	(4)
Transfer to development contract and transaction expenditure	(11)	–	(11)
At 31 March 2025	53	28	81

The cumulative impairment provision at 31 March 2025 in respect of Development land and infrastructure was £31m (2024: £36m); and in respect

of Residential was £nil (2024: £nil).

14 › INVESTMENT PROPERTIES CONTINUED

LANDSEC ANNUAL REPORT 2025 119

16 › JOINT ARRANGEMENTS

ACCOUNTING POLICY

Joint arrangements are those entities over whose activities the Group has joint control, established by contractual agreement. Interests in joint

arrangements are accounted for as either a joint venture or a joint operation. The treatment as either a joint venture or a joint operation will

depend on whether the Group has rights to the net assets, or a direct interest in the assets and liabilities of the arrangement.

A joint arrangement is accounted for as a joint venture when the Group, along with the other parties that have joint control of the arrangement,

has rights to the net assets of the arrangement. Interests in joint ventures are accounted for using the equity method of accounting. The equity

method requires the Group’s share of the joint venture’s post-tax profit or loss for the year to be presented separately in the income statement

and the Group’s share of the joint venture’s net assets to be presented separately in the balance sheet.

A joint arrangement is accounted for as a joint operation when the Group, along with the parties that have joint control of the arrangement, has

rights to the assets and obligations for the liabilities relating to the arrangement. The Group’s share of jointly controlled assets, related liabilities,

income and expenses are combined with the equivalent items in the financial statements on a line-by-line basis.

The Group’s principal joint arrangements are described below:

Joint ventures 1	Percentage owned &	Business segment	Year-end date 3	Joint venture partner
	voting rights 2
Held at 31 March 2025
Nova, Victoria 4	50%	Central London	31 March	Suntec Real Estate Investment Trust
Southside Limited Partnership	50%	Major retail	31 March	Invesco Real Estate European Fund
Westgate Oxford Alliance Limited Partnership	50%	Major retail,	31 March	The Crown Estate Commissioners
		Subscale sectors
Harvest 5	50%	Subscale sectors	31 March	J Sainsbury plc
The Ebbsfleet Limited Partnership 7	50%	Subscale sectors	31 March	Ebbsfleet Property Limited
West India Quay Unit Trust 7	50%	Subscale sectors	31 March	Schroder UK Real Estate Fund
Mayfield 6, 7	50%	Mixed-use urban	31 March	LCR Limited, Manchester City Council,
				Transport for Greater Manchester
Curzon Park Limited 7	50%	Subscale sectors	31 March	Derwent Developments (Curzon)
				Limited
Landmark Court Partnership Limited 7	51%	Central London	31 March	TTL Landmark Court Properties
				Limited
Opportunities for Sittingbourne Limited 7	50%	Mixed-use urban	31 March	Swale Borough Council
Cathedral (Movement, Greenwich) LLP 7	52%	Mixed-use urban	31 March	Mr Richard Upton
Circus Street Developments Limited 7	50%	Mixed-use urban	31 March	High Wire Brighton Limited

Joint operation	Ownership interest	Business	Year-end date 3	Joint operation partners
		segment
Held at 31 March 2025
Bluewater, Kent	66.25%	Major retail	31 March	M&G Real Estate,
				Royal London Asset Management,
				Aberdeen Standard Investments

1. Refer to Additional information pages 169-172 for the full list of the Group’s related undertakings.

2. Investments under joint arrangements are not always represented by an equal percentage holding by each partner. In a number of joint ventures that are not considered

principal joint ventures and therefore not included in the table above, the Group holds a majority shareholding but has joint control and therefore the arrangement

is accounted for as a joint venture.

3. The year-end date shown is the accounting reference date of the joint arrangement. In all cases, the Group’s accounting is performed using financial information for

the Group’s own reporting year and reporting date.

4. Nova, Victoria includes the Nova Limited Partnership, Nova Residential Limited Partnership, Nova GP Limited, Nova Business Manager Limited, Nova Residential (GP)

Limited, Nova Residential Intermediate Limited, Nova Estate Management Company Limited, Nova Nominee 1 Limited and Nova Nominee 2 Limited.

5. Harvest includes Harvest 2 Limited Partnership, Harvest Development Management Limited, Harvest 2 Selly Oak Limited, Harvest 2 GP Limited and Harvest GP Limited.

6. Mayfield includes Mayfield Development Partnership LP and Mayfield Development (General Partner) Limited.

7. Included within Other in subsequent tables.

LANDSEC ANNUAL REPORT 2025120

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

All of the Group’s joint arrangements listed above have their principal place of business in the United Kingdom. All of the Group’s principal joint

arrangements own and operate investment property, with the exception of:

•

the Ebbsfleet Limited Partnership, which is a holding company

•

Harvest, which is engaged in long-term development contracts

•

Curzon Park Limited, Landmark Court Partnership Limited, Opportunities for Sittingbourne Limited and Circus Street Developments Limited,

which are companies continuing their business of property development

The activities of all the Group’s principal joint arrangements are therefore strategically important to the business activities of the Group.

All joint ventures listed above are registered in England and Wales with the exception of Southside Limited Partnership and West India Quay Unit

Trust which are registered in Jersey.

JOINT VENTURES

						Year ended 31 March 2025
			Westgate
		Southside	Oxford
	Nova,	Limited	Alliance			Total
	Victoria	Partnership	Partnership	Other	Total	Group
	100%	100%	100%	100%	100%	share
Comprehensive income statement	£m	£m	£m	£m	£m	£m
Revenue 1	49	17	35	3	104	52
Gross rental income (after rents payable)	35	13	26	3	77	38
Net rental income	35	11	21	3	70	35
EPRA earnings before interest	33	11	21	3	68	34
Finance expense	(15)	(6)	–	–	(21)	(11)
Net finance expense	(15)	(6)	–	–	(21)	(11)
EPRA earnings	18	5	21	3	47	23
Capital and other items
Net surplus on revaluation of investment properties	22	2	3	–	27	13
Profit on disposal of investment properties	–	–	–	5	5	3
Other costs	–	–	–	(4)	(4)	(2)
Profit before tax	40	7	24	4	75	37
Post-tax profit	40	7	24	4	75	37
Total comprehensive income	40	7	24	4	75	37
Group share of profit before tax	20	3	12	2	37
Group share of post-tax profit	20	3	12	2	37
Group share of total comprehensive income	20	3	12	2	37

1. Revenue includes gross rental income (before rents payable), service charge income, other property related income, trading properties disposal proceeds and income

from long-term development contracts.

16 › JOINT ARRANGEMENTS CONTINUED

LANDSEC ANNUAL REPORT 2025 121

JOINT VENTURES

						Year ended 31 March 2024
			Westgate
		Southside	Oxford
	Nova,	Limited	Alliance			Total
	Victoria	Partnership	Partnership	Other	Total	Group
	100%	100%	100%	100%	100%	share
Comprehensive income statement	£m	£m	£m	£m	£m	£m
Revenue 1	49	11	35	5	100	49
Gross rental income (after rents payable)	34	11	26	5	76	37
Net rental income	34	10	22	1	67	33
EPRA earnings before interest	32	9	21	1	63	32
Finance expense	(16)	(6)	–	–	(22)	(11)
Net finance expense	(16)	(6)	–	–	(22)	(11)
EPRA earnings	16	3	21	1	41	21
Capital and other items
Net deficit on revaluation of investment properties	(24)	(3)	(1)	(9)	(37)	(19)
(Loss)/profit before tax	(8)	–	20	(8)	4	2
Post-tax (loss)/profit	(8)	–	20	(8)	4	2
Total comprehensive (loss)/income	(8)	–	20	(8)	4	2
Group share of (loss)/profit before tax	(4)	–	10	(4)	2
Group share of post-tax (loss)/profit	(4)	–	10	(4)	2
Group share of total comprehensive (loss)/income	(4)	–	10	(4)	2

1. Revenue includes gross rental income (before rents payable), service charge income, other property related income, trading properties disposal proceeds and income

from long-term development contracts.

LANDSEC ANNUAL REPORT 2025122

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

JOINT VENTURES

						31 March 2025
			Westgate
		Southside	Oxford
	Nova,	Limited	Alliance			Total
	Victoria	Partnership	Partnership	Other	Total	Group
	100%	100%	100%	100%	100%	share
Balance sheet	£m	£m	£m	£m	£m	£m
Investment properties 1	753	138	229	96	1,216	608
Non-current assets	753	138	229	96	1,216	608
Cash and cash equivalents	28	5	11	5	49	24
Other current assets	59	5	14	90	168	84
Current assets	87	10	25	95	217	108
Total assets	840	148	254	191	1,433	716
Trade and other payables and provisions	(33)	(6)	(14)	(58)	(111)	(55)
Current liabilities	(33)	(6)	(14)	(58)	(111)	(55)
Non-current liabilities	(78)	(148)	–	–	(226)	(113)
Non-current liabilities	(78)	(148)	–	–	(226)	(113)
Total liabilities	(111)	(154)	(14)	(58)	(337)	(168)
Net assets/(liabilities)	729	(6)	240	133	1,096	548
Comprised of:
Net assets	729	–	240	133	1,102	551
Accumulated losses recognised as net liabilities 2	–	(6)	–	–	(6)	(3)
Market value of investment properties 1	802	139	235	96	1,272	636
Net cash 3	28	5	11	5	49	24

1. The difference between the book value and the market value of investment properties is the amount recognised in respect of lease incentives, head leases capitalised

and properties treated as finance leases, where applicable.

2. The Group’s share of accumulated losses of a joint venture interest are recognised as net liabilities (see note 34) where there is an obligation to provide for these losses.

3. Excludes funding provided by the Group and its joint venture partners.

16 › JOINT ARRANGEMENTS CONTINUED

LANDSEC ANNUAL REPORT 2025 123

JOINT VENTURES

						31 March 2024
			Westgate
		Southside	Oxford
	Nova,	Limited	Alliance			Total
	Victoria	Partnership	Partnership	Other	Total	Group
	100%	100%	100%	100%	100%	share
Balance sheet	£m	£m	£m	£m	£m	£m
Investment properties 1	727	130	223	91	1,171	585
Non-current assets	727	130	223	91	1,171	585
Cash and cash equivalents	32	4	21	4	61	31
Other current assets	58	7	11	85	161	80
Current assets	90	11	32	89	222	111
Total assets	817	141	255	180	1,393	696
Trade and other payables and provisions	(23)	(6)	(16)	(35)	(80)	(40)
Current liabilities	(23)	(6)	(16)	(35)	(80)	(40)
Non-current liabilities	(104)	(147)	–	(19)	(270)	(135)
Non-current liabilities	(104)	(147)	–	(19)	(270)	(135)
Total liabilities	(127)	(153)	(16)	(54)	(350)	(175)
Net assets/(liabilities)	690	(12)	239	126	1,043	521
Comprised of:
Net assets	690	–	239	130	1,059	529
Accumulated losses recognised as net liabilities 2	–	(12)	–	(4)	(16)	(8)
Market value of investment properties 1	780	131	230	91	1,232	616
Net cash 3	32	4	21	4	61	31

1. The difference between the book value and the market value of investment properties is the amount recognised in respect of lease incentives, head leases capitalised

and properties treated as finance leases, where applicable.

2. The Group’s share of accumulated losses of a joint venture interest are recognised as net liabilities (see note 34) where there is an obligation to provide for these losses.

3. Excludes funding provided by the Group and its joint venture partners.

LANDSEC ANNUAL REPORT 2025124

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

JOINT VENTURES

			Westgate
		Southside	Oxford
	Nova,	Limited	Alliance
	Victoria	Partnership	Partnership	Other	Total
	Group	Group	Group	Group	Group
	share	share	share	share	share
Net investment	£m	£m	£m	£m	£m
At 1 April 2023	348	(5)	124	61	528
Total comprehensive (loss)/income	(4)	–	10	(3)	3
Cash and other distributions	–	–	(12)	(5)	(17)
Other non-cash movements	–	–	(1)	8	7
At 31 March 2024	344	(5)	121	61	521
Total comprehensive (loss)/income	20	3	12	2	37
Cash and other distributions	–	–	(11)	(1)	(12)
Other non-cash movements	1	(1)	(2)	4	2
At 31 March 2025	365	(3)	120	66	548
Comprised of:
At 31 March 2024
Non-current assets	344	–	121	64	529
Non-current liabilities 1	–	(5)	–	(3)	(8)
At 31 March 2025
Non-current assets	365	–	120	66	551
Non-current liabilities 1	–	(3)	–	–	(3)

1. The Group’s share of accumulated losses of a joint venture interest are recognised as net liabilities (see note 34) where there is an obligation to provide for these losses.

16 › JOINT ARRANGEMENTS CONTINUED

LANDSEC ANNUAL REPORT 2025 125

17 › INVESTMENTS IN ASSOCIATES

ACCOUNTING POLICY

Associates are those entities over whose financial and operating policy decisions the Group has significant influence, established by contractual

agreement, but over which the Group does not have control or joint control over those policies. Interests in associates are accounted for using the

equity method of accounting. The equity method requires the Group’s share of the associate’s post-tax profit or loss for the year to be presented

separately in the income statement and the Group’s share of the associate’s net assets to be presented separately in the balance sheet.

The Group’s principal interests in associates are described below:

Associates 1	Percentage owned and voting rights	Year-end date	Business segment
CDSR Burlington House Developments Limited	20%	31 December	Subscale sectors

1. Refer to Additional information pages 169-172 for the full list of the Group’s related undertakings.

During the year the Group’s investment in Northpoint Developments Limited increased from 42% to 71%. The investment in associate was

reclassified to investment in subsidiaries as we consider the Group to now hold significant control over the operations of the investment.

The value at the time of reclassification was £nil due to the investment being fully impaired on acquisition of U and I Group PLC.

CDSR Burlington House Developments Limited operates in Ireland and they are registered in Ireland. The Group’s associates are engaged

in property development.

The investment in CDSR Burlington House Developments Limited was fully impaired on acquisition of U+I Group PLC.

The Group’s share of profit or loss from its investments in associates was £nil (2024: £nil).

18 › CAPITAL COMMITMENTS

	2025	2024
	£m	£m
Contracted capital commitments at the end of the year in respect of:
Investment properties	276	353
Trading properties	6	10
Joint ventures (our share)	1	4
Total capital commitments	283	367

Capital commitments include contractually committed obligations to purchase goods or services used in the construction, development, repair,

maintenance or other enhancement of the Group’s properties.

LANDSEC ANNUAL REPORT 2025126

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

19 › NET INVESTMENT IN FINANCE LEASES

ACCOUNTING POLICY

Where the Group’s leases transfer the significant risks and rewards incidental to ownership of the underlying asset to the tenant, the lease is

accounted for as a finance lease. At the outset of the lease the fair value of the asset is derecognised from investment property and recognised

as a finance lease receivable. The finance lease receivable is derecognised in the event that the lease is terminated. Lease income is recognised

over the period of the lease, reflecting a constant rate of return. The difference between the gross receivable and the present value of the

receivable is recognised as finance income within Revenue over the lease term.

	2025	2024
	£m	£m
Non-current
Finance leases – gross receivables	35	37
Unguaranteed residual value	2	3
Unearned finance income	(18)	(19)
	19	21
Current 1
Finance leases – gross receivables	2	2
Unearned finance income	(1)	(1)
	1	1
Net investment in finance leases	20	22
Gross receivables from finance leases due:
No later than one year	1	2
One to two years	1	2
Two to three years	2	2
Three to four years	2	2
Four to five years	2	1
More than five years	29	30
	37	39
Unguaranteed residual value	2	3
Unearned finance income	(19)	(20)
Net investment in finance leases	20	22

1. Included in Other Receivables in note 28.

The Group has leased out several investment properties under finance leases, which range from 25 to 125 years in duration from the inception

of the lease.

LANDSEC ANNUAL REPORT 2025 127

20 › PROPERTY, PLANT AND EQUIPMENT

ACCOUNTING POLICY

Property, plant and equipment comprise owner-occupied property, improvements, furniture, fixtures and fittings in the Group’s offices.

Owner-occupied property arises from the Group’s acquisition of MediaCity, namely the studio operations that are conducted from premises

previously held as investment property. This property is carried at fair value and is valued in the same manner as the Group’s investment

properties. Refer to note 14 for more information. Any revaluation surplus arising on revaluing the owner-occupied property is recognised

in other comprehensive income and accumulated in equity. Any residual revaluation deficits after reversing previous revaluation gains

recognised in equity are recorded as a Capital and other item on the income statement.

The remaining property, plant and equipment assets are stated at cost less accumulated depreciation and are depreciated to their residual

value on a straight-line basis over their estimated useful lives of between two and five years.

	O wner-	Furniture
	occupied	and
	property	fittings	Total
	£m	£m	£m
At 1 April 2023	–	9	9
Depreciation	–	(2)	(2)
At 31 March 2024	–	7	7
Transfer from investment property (note 14)	26	–	26
Revaluation	12	–	12
Depreciation	–	(3)	(3)
At 31 March 2025	38	4	42

LANDSEC ANNUAL REPORT 2025128

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

21 › INTANGIBLE ASSETS

ACCOUNTING POLICY

Intangible assets comprise goodwill and other intangible assets arising on business combinations and software used internally within the

business. Intangible assets arising on business combinations are initially recognised at fair value. Goodwill is not amortised but is tested at least

annually for impairment. Other intangible assets arising on business combinations are amortised to the income statement over their expected

useful lives. Software assets are stated at cost less accumulated amortisation and are amortised on a straight-line basis over their estimated

useful economic lives, normally three to five years.

			Other
			intangible
	Goodwill	Software	asset	Total
	£m	£m	£m	£m
At 1 April 2023	1	3	2	6
Amortisation	–	(2)	–	(2)
Impairment	(1)	–	–	(1)
At 31 March 2024	–	1	2	3
Additions	22	1	–	23
Amortisation	–	(1)	–	(1)
Impairment	(22)	–	–	(22)
At 31 March 2025	–	1	2	3

Additions to goodwill in the current year ended 31 March 2025 relate primarily to the acquisition of MediaCity of £21m, which has been discussed

further in note 43.

The other intangible asset relates to the Group’s acquisition of its interest in Bluewater, Kent in 2014 and represents the estimated fair value of

the management rights for the centre. The fair value at the date of acquisition was £30m and the asset is being amortised over a period of

20 years. On recognition of the other intangible asset, the Group recognised a deferred tax liability of £6m, and corresponding goodwill of the

same amount. The deferred tax liability is being released to the income statement as the other intangible asset is amortised or impaired, and the

corresponding element of the goodwill is tested for impairment.

In the year ended 31 March 2025, the other intangible asset has been impaired by £nil (2024: £nil). The recoverable amount of the other intangible

asset has been based on its fair value less costs of disposal applying discounted cash flow projections, using a discount rate of 8.0% with cash

flows projected over a period of ten years and a growth rate applied of 3.1%.

LANDSEC ANNUAL REPORT 2025 129

SECTION 4 – CAPITAL STRUCTURE AND FINANCING

This section focuses on the Group’s financing structure, including borrowings and financial risk management. The total capital of the Group

consists of shareholders’ equity and net debt. The Group’s strategy is to maintain an appropriate net debt to total equity ratio (gearing) and

loan-to-value ratio (LTV) to ensure that asset level performance is translated into enhanced returns for shareholders while maintaining an

appropriate risk reward balance to accommodate changing financial and operating market cycles. The table in note 22 details a number of the

Group’s key metrics in relation to managing its capital structure.

A key element of the Group’s capital structure is that the majority of our borrowings are secured against a large pool of our assets (the Security

Group). This enables us to raise long-term debt in the bond market, as well as shorter-term flexible bank facilities, both at competitive rates.

In general, we follow a secured debt strategy as we believe this gives the Group better access to borrowings at a lower cost.

In addition, the Group holds a number of assets outside the Security Group structure (in the Non-restricted Group). By having both the Security

Group and the Non-restricted Group, and considerable flexibility to move assets between the two, we are able to raise the most appropriate

finance for each specific asset or joint venture.

22 › CAPITAL STRUCTURE

				2025				2024
			Adjustment				Adjustment
			for non-				for non-
		Joint	wholly owned			Joint	wholly owned
	Group	ventures	subsidiaries	Combined	Group	ventures	subsidiaries	Combined
	£m	£m	£m	£m	£m	£m	£m	£m
Property portfolio
Market value of non-current	10,277	636	(33)	10,880	9,465	616	(118)	9,963
property assets 1
Trading properties and long-term contracts	81	–	–	81	100	–	–	100
Total property portfolio (a)	10,358	636	(33)	10,961	9,565	616	(118)	10,063
Net debt
Borrowings	4,396	–	(15)	4,381	3,703	–	(73)	3,630
Monies held in restricted accounts and deposits	(20)	–	1	(19)	(6)	–	–	(6)
Cash and cash equivalents	(39)	(24)	–	(63)	(78)	(31)	4	(105)
Fair value of interest-rate swaps	(1)	–	–	(1)	(23)	–	2	(21)
Fair value of foreign exchange swaps	5	–	–	5	(2)	–	–	(2)
and forwards
Net debt (b)	4,341	(24)	(14)	4,303	3,594	(31)	(67)	3,496
Add/(less): Fair value of interest-rate swaps	1	–	–	1	23	–	(2)	21
Adjusted net debt (c)	4,342	(24)	(14)	4,304	3,617	(31)	(69)	3,517
Adjusted total equity
Total equity (d)	6,532	–	(18)	6,514	6,447	–	(45)	6,402
Fair value of interest-rate swaps	(1)	–	–	(1)	(23)	–	2	(21)
Adjusted total equity (e)	6,531	–	18	6,513	6,424	–	(43)	6,381
Gearing (b/d)	66.5%			66.1%	55.7%			54.6%
Adjusted gearing (c/e)	66.5%			66.1%	56.3%			55.1%
Group LTV (c/a)	41.9%			39.3%	37. 8 %			35.0%
EPRA LTV 2				41.0%				36.3%
Security Group LTV	41.9%				37. 0 %
Weighted average cost of debt	3.4%			3.4%	3.3%			3.3%

1. Includes owner-occupied property and non-current assets held-for-sale.

2. EPRA LTV differs from Group LTV as it includes net payables and receivables, and includes trading properties at fair value and debt instruments at nominal value rather than

book value. Group LTV remains our core performance measure used by external investors and lenders.

LANDSEC ANNUAL REPORT 2025130

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

23 › BORROWINGS

ACCOUNTING POLICY

Borrowings, other than bank overdrafts, are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition,

borrowings are stated at amortised cost with any difference between the amount initially recognised and the redemption value being recognised

in the income statement over the period of the borrowings, using the effective interest method.

When debt refinancing exercises are carried out, existing liabilities will be treated as being extinguished when the new liability is substantially

different from the existing liability. In making this assessment, the Group will consider the transaction as a whole, taking into account both

qualitative and quantitative characteristics.

							2025			2024
					Nominal/			Nominal/
				Effective	notional	Fair	Book	notional	Fair	Book
		Secured/	Fixed/	interest rate	value	value	value	value	value	value
		unsecured	floating	%	£m	£m	£m	£m	£m	£m
Current borrowings
Commercial paper
Sterling		Unsecured	Floating	Various 1	270	270	270	15	15	15
Euro		Unsecured	Floating	Various 1	310	310	310	518	518	518
US Dollar		Unsecured	Floating	Various 1	170	170	170	148	148	148
Syndicated and bilateral bank debt		Secured	Floating	SONIA + margin	–	–	–	292	292	292
Total current borrowings					750	750	750	973	973	973
Amounts payable under head leases					2	2	2	2	2	2
Total current borrowings including
amounts payable under head leases					752	752	752	975	975	975
Non-current borrowings
Medium-term notes (MTN)
A5	5.391% MTN due 2027	Secured	Fixed	5.4	–	–	–	87	86	87
A16	2.375% MTN due 2029	Secured	Fixed	2.5	350	333	349	350	325	349
A6	5.376% MTN due 2029	Secured	Fixed	5.4	65	65	65	65	66	65
A13	2.399% MTN due 2031	Secured	Fixed	2.4	300	274	300	300	270	299
A7	5.396% MTN due 2032	Secured	Fixed	5.4	77	78	77	77	78	77
A18	4.750% MTN due 2033	Secured	Fixed	4.9	300	294	295	300	299	297
A17	4.875% MTN due 2034	Secured	Fixed	5.0	400	393	396	400	403	393
A11	5.125% MTN due 2036	Secured	Fixed	5.1	50	47	50	50	48	50
A19	4.625% MTN due 2036	Secured	Fixed	4.9	350	330	346	–	–	–
A14	2.625% MTN due 2039	Secured	Fixed	2.6	500	371	495	500	387	495
A15	2.750% MTN due 2059	Secured	Fixed	2.7	500	275	495	500	309	495
					2,892	2,460	2,868	2,629	2,271	2,607
Syndicated and bilateral bank debt		Secured	Floating	SONIA + margin	778	778	778	123	123	123
Total non-current borrowings					3,670	3,238	3,646	2,752	2,394	2,730
Amounts payable under head leases		Unsecured	Fixed	4.0	156	230	156	75	98	75
Total non-current borrowings					3,826	3,468	3,802	2,827	2,492	2,805
including amounts payable under head leases
Total borrowing including amounts					4,578	4,220	4,554	3,802	3,467	3,780
payable under head leases
Total borrowings excluding amounts					4,420	3,988	4,396	3,725	3,367	3,703
payable under head leases

1. Non-Sterling commercial paper is immediately swapped into Sterling. The interest rate is fixed at the time of the issuance for the duration (1 to 3 months) and tracks SONIA

swap rates.

LANDSEC ANNUAL REPORT 2025 131

RECONCILIATION OF THE MOVEMENT IN BORROWINGS

	2025	2024
	£m	£m
At the beginning of the year	3,780	3,538
Net proceeds from ECP issuance	69	378
Net proceeds from bank debt	538	33
Repayment of bank debt	(475)	–
Net facilities acquired	300	–
Repayment of MTNs	(87)	(427)
Issue of MTNs (net of finance fees)	346	297
Foreign exchange movement on non-Sterling borrowings	2	(9)
Movement in amounts payable under head leases	81	(30)
At 31 March	4,554	3,780

RECONCILIATION OF MOVEMENTS IN LIABILITIES ARISING FROM FINANCING ACTIVITIES

						2025
	At the				Non-cash changes
	beginning		Foreign	Other		At the end
	of the		exchange	changes in	Other	of the
	year	Cash flows	movements	fair values	changes	year
	£m	£m	£m	£m	£m	£m
Borrowings	3,780	401	2	(10)	381	4,554
Derivative financial instruments	(25)	(6)	11	23	1	4
	3,755	395	13	13	382	4,558
						2024
Borrowings	3,538	281	(9)	–	(30)	3,780
Derivative financial instruments	(38)	(18)	10	21	–	(25)
	3,500	263	1	21	(30)	3,755

The MTNs are secured on the fixed and floating pool of assets of the Security Group. The Security Group includes wholly owned investment

properties, development properties and a number of the Group’s investment in other assets, in total valued at £10bn at 31 March 2025 (2024:

£9.2bn). The secured debt structure has a tiered operating covenant regime which gives the Group substantial flexibility when the LTV and

interest cover in the Security Group are less than 65% and more than 1.45x respectively. If these limits are exceeded, the operating environment

becomes more restrictive with provisions to encourage a reduction in gearing. The interest rate of each MTN is fixed until the expected maturity,

being two years before the legal maturity date of the MTN. The interest rate for the last two years may either become floating on a SONIA basis

plus an increased margin (relative to that at the time of issue), or subject to a fixed coupon uplift, depending on the terms and conditions of the

specific notes.

The effective interest rate is based on the coupon paid and includes the amortisation of issue costs and discount to redemption value. The MTNs

are listed on the Irish Stock Exchange and their fair values are based on their respective market prices.

At 31 March 2025, the Group’s committed facilities totalled £2,590m (2024: £2,907m).

LANDSEC ANNUAL REPORT 2025132

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

SYNDICATED AND BILATERAL BANK DEBT

			Authorised		Drawn		Undrawn
	Maturity as at	2025	2024	2025	2024	2025	2024
	31 March 2025	£m	£m	£m	£m	£m	£m
Syndicated debt	2026-29	2,490	2,682	778	415	1,712	2,267
Bilateral debt	2026	100	225	–	–	100	225
		2,590	2,907	778	415	1,812	2,492

The majority of the Group’s syndicated and bilateral facilities are secured on the assets of the Security Group, with the exception of facilities

secured on the assets at Liverpool ONE of which £240m was drawn at 31 March 2025, and MediaCity of which £nil was drawn at 31 March 2025

(2024: £292m).

During the year ended 31 March 2025, the amounts drawn under the Group’s facilities increased by £363m. The MediaCity bank facility was

successfully refinanced on 13 June 2024 to £195m and subsequently fully repaid and closed on 6 November 2024 (2024: £292m drawn). Also during

the year, the Liverpool ONE shopping centre was acquired with a fully drawn £300m secured bank facility. On 27 January 2025, £60m of this

facility was repaid.

The terms of the Security Group funding arrangements require undrawn facilities to be reserved where syndicated and bilateral facilities mature

within one year, or when commercial paper is issued. Commercial paper in issuance at 31 March 2025 was £750m (2024: £681m). The total amount

of cash and available undrawn facilities, net of commercial paper, at 31 March 2025 was £1,101m (2024: £1,889m).

24 › MONIES HELD IN RESTRICTED ACCOUNTS AND DEPOSITS

ACCOUNTING POLICY

Monies held in restricted accounts and deposits represent cash held by the Group in accounts with conditions that restrict the access of these

monies by the Group and, as such, does not meet the definition of cash and cash equivalents.

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Short-term deposits	15	6	–	–
Cash at bank and in hand	5	–	–	–
	20	6	–	–

The credit quality of monies held in restricted accounts and deposits can be assessed by reference to external credit ratings of the counterparty

where the account or deposit is placed.

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Counterparties with external credit ratings
AAA	8	–	–	–
A+	12	6	–	–
	20	6	–	–

23 › BORROWINGS CONTINUED

LANDSEC ANNUAL REPORT 2025 133

25 › CASH AND CASH EQUIVALENTS

ACCOUNTING POLICY

Cash and cash equivalents comprise cash balances, deposits held at call with banks and other short-term highly liquid investments with

original maturities of three months or less. Monies that are restricted by use only, and not restricted by access, are classified as cash and cash

equivalents. Bank overdrafts that are repayable on demand and form an integral part of the Group’s cash management are deducted from

cash and cash equivalents for the purpose of the statement of cash flows.

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Cash at bank and in hand	30	78	1	2
Short-term deposits	9	–	–	–
	39	78	1	2

The credit quality of cash and cash equivalents can be assessed by reference to external credit ratings of the counterparty where the account

or deposit is placed.

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Counterparties with external credit ratings
AAA	4	–	–	–
A+	30	78	–	–
A	3	–	1	2
A-	1	–	–	–
BBB+	1	–	–	–
	39	78	1	2

The Group’s cash and cash equivalents and bank overdrafts are subject to cash pooling arrangements. The following table provides details of

cash balances and bank overdrafts which are subject to offsetting agreements.

			2025			2024
	Gross	Gross	Net amounts	Gross	Gross	Net amounts
	amounts of	amounts of	recognised in	amounts of	amounts of	recognised in
	financial	financial	the balance	financial	financial	the balance
	assets	liabilities	sheet	assets	liabilities	sheet
	£m	£m	£m	£m	£m	£m
Assets
Cash and cash equivalents	140	(101)	39	230	(152)	78
	140	(101)	39	230	(152)	78

LANDSEC ANNUAL REPORT 2025134

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

26 › DERIVATIVE FINANCIAL INSTRUMENTS

ACCOUNTING POLICY

The Group uses interest-rate and foreign exchange swaps and forwards to manage its market risk. In accordance with its treasury policy, the Group

does not hold or issue derivatives for trading purposes.

All derivatives are recognised on the balance sheet at fair value. The fair value of interest-rate and foreign exchange swaps is based on

counterparty or market quotes. Those quotes are tested for reasonableness by discounting estimated future cash flows based on the terms

and maturity of each contract and using market rates for similar instruments at the measurement date. The gain or loss on derivatives are

recognised immediately in the income statement, within net finance expense.

CARRYING VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS

	2025	2024
	£m	£m
Current assets	2	8
Non-current assets	2	22
Current liabilities	(6)	–
Non-current liabilities	(2)	(5)
	(4)	25

NOTIONAL AMOUNT AT THE EFFECTIVE DATE

	2025	2024
	£m	£m
Interest-rate swaps 1	1,645	1,484
Foreign exchange swaps	486	664
	2,131	2,148

1. At 31 March 2025, the Group held forward starting pay-fixed and receive-floating rate interest-rate swaps with the notional of £500m (2024: accretive notional of up to

£1,170m) which are included in the notional amounts above.

27 › FINANCIAL RISK MANAGEMENT

INTRODUCTION

A review of the Group’s objectives, policies and processes for managing and monitoring risk is set out in ’Managing risk’ and ’Our principal risks

and uncertainties’ (pages 38-45). This note provides further detail on financial risk management and includes quantitative information on

specific financial risks.

The Group is exposed to a variety of financial risks: market risks (principally interest rate risk), credit risk and liquidity risk. The Group’s overall

risk management strategy seeks to minimise the potential adverse effects of these on the Group’s financial performance and includes the use

of derivative financial instruments to hedge certain risk exposures.

Financial risk management is carried out by the Group’s treasury function under policies approved by the Board of Directors, except where the

relevant arrangements have been put in place by an individual subsidiary or at a joint venture level prior to acquisition.

The Group assesses whether it intends to hold its financial assets to collect the contractual cash flows, or whether it intends to sell them before

maturity and classifies its financial instruments into the appropriate categories. The following table summarises the Group’s financial assets and

liabilities into the categories required by IFRS 7 Financial Instruments: Disclosures:

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Financial assets at amortised cost	551	455	–	–
Cash and cash equivalents	39	78	1	2
Financial liabilities at amortised cost	(5,004)	(4,003)	(1,750)	(2,820)
Financial instruments at fair value through profit or loss	4	32	–	–
	(4,410)	(3,438)	(1,749)	(2,818)

LANDSEC ANNUAL REPORT 2025 135

FINANCIAL RISK FACTORS

(I) CREDIT RISK

The Group’s principal financial assets are cash and cash equivalents, trade and other receivables, net investment in finance leases and

amounts due from joint ventures. Further details concerning the credit risk of counterparties are provided in the note that specifically relates

to each type of asset.

BANK AND FINANCIAL INSTITUTIONS

The principal credit risks of the Group arise from financial derivative instruments and deposits with banks and financial institutions. In line with

the policy approved by the Board of Directors, financial instruments, including derivatives and cash deposits, are only placed with banks and

financial institutions with a minimum credit rating of BBB+ or equivalent. The Group aims to place financial instrument transactions with banks

and financial institutions with which it has a committed lending relationship. The Group’s treasury function performs regular reviews of the

credit ratings of all financial counterparties and monitors the existing derivatives and cash investment exposures to ensure that they remain

within the Group’s policy limits.

TRADE RECEIVABLES

Trade receivables are presented in the balance sheet net of allowances for doubtful receivables. The Group assesses on a forward-looking basis

the expected credit losses associated with its trade receivables. A provision for impairment is made for the lifetime expected credit losses on

initial recognition of the receivable. In determining the expected credit losses the Group takes into account any recent payment behaviours

and future expectations of likely default events (i.e. not making payment on the due date) based on individual customer credit ratings, actual

or expected insolvency filings or company voluntary arrangements, likely deferrals of payments due, agreed rent concessions and market

expectations and trends in the wider macroeconomic environment in which our customers operate. These assessments are made on a customer

by customer basis.

To limit the Group’s exposure to credit risk on trade receivables, a credit report is usually obtained from an independent rating agency prior to the

inception of a lease with a new counterparty. This report, alongside the Group’s internal assessment of credit risk, is used to determine the size of

the deposit that is required, if any, from the tenant at inception. In general, these deposits represent between three and six months’ rent.

NET INVESTMENT IN FINANCE LEASES

This balance relates to amounts receivable from tenants in respect of tenant finance leases. This is not considered a significant credit risk as the

tenants are generally of good financial standing.

(II) LIQUIDITY RISK

The Group has a well spread maturity profile with expected maturities on its MTNs between 2027 and 2057 and diversified shorter-term maturities

in commercial paper and committed bank facilities which are designed to ensure that the Group has sufficient available funds for its operations,

committed capital expenditure programme and refinancing of upcoming MTNs.

Management monitors the Group’s available funds as follows:

	2025	2024
	£m	£m
Cash and cash equivalents	39	78
Commercial paper	(750)	(681)
Undrawn facilities	1,812	2,492
Cash and available undrawn facilities	1,101	1,889
As a proportion of drawn debt 1	24.9%	50.7%

1. Based on nominal values, including MTNs and commercial paper.

The Group’s core financing structure is in the Security Group, although the Non-restricted Group may also secure independent funding.

SECURITY GROUP

The Group’s principal financing arrangements utilise the credit support of a ring-fenced group of assets (the Security Group) that comprises

the majority of the Group’s investment properties, development properties and a number of investments in other assets. These arrangements

operate in ‘tiers’ determined by LTV and interest cover ratio (ICR). This structure is most flexible at lower tiers (with a lower LTV and a higher ICR)

and allows property acquisitions, disposals and developments to occur with relative freedom. In higher tiers, the requirements become more

restrictive. No financial covenant default is triggered until the applicable LTV exceeds 100% or the ICR is less than 1.0x.

As at 31 March 2025, the reported LTV for the Security Group was 41.9% (2024: 37.0%), meaning that the Group was operating in Tier 1 and

benefitted from maximum operational flexibility.

Management monitors the key Security Group covenants including LTV, ICR, sector and regional concentration, and disposals on a monthly basis

or semi-annual basis, depending on the covenant.

LANDSEC ANNUAL REPORT 2025136

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

NON-RESTRICTED GROUP

The Non-restricted Group obtains funding when required from a combination of inter-company loans from the Security Group, equity and

external bank debt. Bespoke credit facilities are established with banks when required for the Non-restricted Group and joint ventures, usually

on a limited-recourse basis.

The table below analyses the Group’s financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet

date to the expected maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows (inclusive of interest).

					2025
	Less than	Between 1	Between 2	Over
	1 year	and 2 years	and 5 years	5 years	Total
	£m	£m	£m	£m	£m
Borrowings (excluding lease liabilities)	880	130	1,548	2,799	5,357
Derivative financial instruments	6	2	–	–	8
Lease liabilities	9	8	25	1,043	1,085
Trade payables	30	–	–	–	30
Capital accruals	70	–	–	–	70
Accruals	155	–	–	–	155
Other payables	22	–	44	–	66
	1,172	140	1,617	3,842	6,771

					2024
	Less than	Between 1	Between 2	Over
	1 year	and 2 years	and 5 years	5 years	Total
	£m	£m	£m	£m	£m
Borrowings (excluding lease liabilities)	1,161	217	951	2,444	4,773
Derivative financial instruments	–	–	5	–	5
Lease liabilities	4	4	11	441	460
Trade payables	56	–	–	–	56
Capital accruals	48	–	–	–	48
Accruals	90	–	–	–	90
Other payables	25	–	–	–	25
	1,384	221	967	2,885	5,457

(III) MARKET RISK

The Group is exposed to market risk through interest rates, availability and price of credit and foreign exchange movements.

INTEREST RATES

The Group uses derivative products to manage its interest rate exposure and has a hedging policy that generally requires at least 70% of its

forecast debt from committed cash flows for the coming three years and at least 50% for years four and five. Due to a combination of factors,

including the degree of certainty required under IFRS 9 Financial instruments, the Group does not apply hedge accounting to hedging

instruments used in this context. Specific interest-rate hedges are also used from time to time to fix the interest rate exposure on our debt.

Where specific hedges are used to fix the interest exposure on floating rate debt, these may qualify for hedge accounting.

At 31 March 2025, the Group (including the Group’s share of joint ventures and non-wholly owned subsidiaries) had pay-fixed and receive-floating

interest-rate swaps in place with a nominal value of £1,145m (2024: £864m) and forward starting pay-fixed and receive-floating interest-rate

swaps with the notional of £500m (2024: accretive notional of up to £1,170m). The Group’s gross debt (including the Group’s share of joint ventures

and non-wholly owned subsidiaries) was 91.3% fixed (2024: 94.2%) and based on the Group’s debt balances at 31 March 2025, a 1% increase/

(decrease) in interest rates would increase/(decrease) the annual net finance expense in the income statement and reduce/(increase) equity

by £8m (2024: £2m). The sensitivity has been calculated by applying the interest rate change to the floating rate components of borrowings,

interest rate swaps as well as cash and cash equivalents.

27 › FINANCIAL RISK MANAGEMENT CONTINUED

LANDSEC ANNUAL REPORT 2025 137

FOREIGN EXCHANGE

Foreign exchange risk arises when future commercial transactions or recognised assets or liabilities are denominated in a currency that is not

the Group’s functional currency.

As the Group is UK based, foreign exchange exposure from operations is low. The majority of the Group’s foreign currency transactions relate to

foreign currency borrowing under the Group’s commercial paper programme. It is the Group’s policy to hedge 100% of this exposure. At 31 March

2025, the Group had issued €370m (2024: €607m) and $220m (2024: $185m) of commercial paper, fully hedged through foreign exchange swaps.

A 10% weakening or strengthening of Sterling would therefore have £nil (2024: £nil) impact in the income statement and equity arising from

foreign currency borrowings.

Where additional foreign exchange risk is identified (not linked to borrowings), it is the Group’s policy to assess the likelihood of the risk

crystallising and if deemed appropriate use derivatives to hedge some or all of the risk. At 31 March 2025, the Group had no foreign currency

exposures (other than those linked to borrowings) being managed using foreign currency derivative contracts (2024: £nil exposure). A 10%

weakening or strengthening of Sterling would therefore have no impact on the loss before tax and or total equity (2024: £nil impact).

FINANCIAL MATURITY ANALYSIS

The interest rate profile of the Group’s borrowings is set out below (based on notional values):

			2025			2024
	Fixed	Floating		Fixed	Floating
	rate	rate	Total	rate	rate	Total
	£m	£m	£m	£m	£m	£m
Sterling	3,050	1,048	4,098	2,706	431	3,137
Euro	–	310	310	–	519	519
US Dollar	–	170	170	–	147	147
	3,050	1,528	4,578	2,706	1,097	3,803

The expected maturity profiles of the Group’s borrowings are as follows (based on notional values):

			2025			2024
	Fixed	Floating		Fixed	Floating
	rate	rate	Total	rate	rate	Total
	£m	£m	£m	£m	£m	£m
One year or less, or on demand	–	750	750	86	973	1,059
More than one year but not more than two years	1	240	241	–	123	123
More than two years but not more than five years	718	538	1,256	715	–	715
More than five years	2,331	–	2,331	1,904	–	1,904
Borrowings	3,050	1,528	4,578	2,705	1,096	3,801
Effect of hedging	1,145	(1,145)	–	864	(864)	–
Borrowings net of interest-rate swaps	4,195	383	4,578	3,569	232	3,801

The expected maturity profiles of the Group’s derivative instruments are as follows (based on notional values):

		2025		2024 1
	Foreign		Foreign
	exchange	Interest-	exchange	Interest-
	swaps	rate swaps	swaps	rate swaps
	£m	£m	£m	£m
One year or less, on demand	486	455	664	669
More than one year but not more than two years	–	740	–	865
More than two years but not more than five years	–	150	–	500
More than five years	–	300	–	–
	486	1,645	664	2,034

1. At 31 March 2024, the maturity analysis table disclosed the incorrect maturity profile for the interest-rate swaps and did not include all their notional value accretions.

The prior period comparative has been updated to correct for this. No change to the prior year-end fair value disclosed for the interest-rate swaps or the notional amount

at the effective date disclosures are required within note 26.

LANDSEC ANNUAL REPORT 2025138

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

VALUATION HIERARCHY

Derivative financial instruments and financial assets at fair value through profit and loss (other investments) are the only financial instruments

which are carried at fair value. For financial instruments other than borrowings disclosed in note 22, the carrying value in the balance sheet

approximates their fair values. The table below shows the aggregate assets and liabilities carried at fair value by valuation method:

				2025				2024
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Assets	–	4	8	12	–	30	7	37
Liabilities	–	(8)	–	(8)	–	(5)	–	(5)

Note:

Level 1: valued using unadjusted quoted prices in active markets for identical financial instruments.

Level 2: valued using techniques based on information that can be obtained from observable market data.

Level 3: valued using techniques incorporating information other than observable market data.

The fair value of the amounts payable under the Group’s lease obligations, using a discount rate of 3.4% (2024: 3.3%), is £232m (2024: £100m).

The fair value of the Group’s net investment in tenant finance leases, calculated by the Group’s external valuer by applying a weighted average

equivalent yield of 8.8% (2024: 7.8%), is £12m (2024: £17m).

The fair values of any floating rate financial liabilities are assumed to be equal to their nominal value. The fair values of the MTNs fall within Level

1 of the fair value hierarchy, the syndicated and bilateral facilities, commercial paper, interest-rate swaps and foreign exchange swaps fall within

Level 2, and the amounts payable and receivable under leases fall within Level 3.

The fair values of the financial instruments have been determined by reference to relevant market prices, where available. The fair values of the

Group’s outstanding interest-rate swaps have been estimated by calculating the present value of future cash flows, using appropriate market

discount rates. These valuation techniques fall within Level 2.

The fair value of the other investments is calculated by reference to the net assets of the underlying entity. The valuation is not based on

observable market data and therefore the other investments are considered to fall within Level 3.

27 › FINANCIAL RISK MANAGEMENT CONTINUED

LANDSEC ANNUAL REPORT 2025 139

SECTION 5 – WORKING CAPITAL

This section focuses on our working capital balances, including trade and other receivables, and trade and other payables.

28 › TRADE AND OTHER RECEIVABLES

ACCOUNTING POLICY

Trade and other receivables are recognised initially at fair value, subsequently at amortised cost and, where relevant, adjusted for the time

value of money. The Group assesses on a forward-looking basis the expected credit losses associated with its trade receivables. A provision for

impairment is made for the lifetime expected credit losses on initial recognition of the receivable. If collection is expected in more than one year,

the balance is presented within non-current assets.

In determining the expected credit losses, the Group takes into account any recent payment behaviours and future expectations of likely default

events (i.e. not making payment on the due date) based on individual customer credit ratings, actual or expected insolvency filings or company

voluntary arrangements and market expectations and trends in the wider macroeconomic environment in which our customers operate. Where

a concession is agreed with a customer after the due date for the rent, this amount is recognised as an impairment of the related trade receivable.

Trade and other receivables are written off once all avenues to recover the balances are exhausted and the lease has ended. Receivables written

off are no longer subject to any enforcement activity.

SOURCE OF ESTIMATION UNCERTAINTY

IMPAIRMENT OF TRADE RECEIVABLES

The Group’s assessment of expected credit losses is inherently subjective due to the forward-looking nature of the assessments. As a result,

the value of the provisions for impairment of the Group’s trade receivables are subject to a degree of uncertainty and are made on the basis

of assumptions which may not prove to be accurate. See note 27 for further details of the Group’s assessment of the credit risk associated with

trade receivables.

	2025	2024
	£m	£m
Net trade receivables	70	46
Tenant lease incentives	242	195
Prepayments	69	58
Accrued income	21	22
Amounts due from joint ventures and associates	12	17
Deferred consideration	2	16
Other receivables	51	25
Total current trade and other receivables	467	379
Non-current amounts due from joint ventures and associates	116	129
Non-current prepayments	24	–
Non-current deferred consideration	78	30
Other non-current receivables	11	–
Total trade and other receivables	696	538

The accounting for lease incentives is set out in note 6. The value of the tenant lease incentive, included in current trade and other receivables,

is spread over the lease term.

The non-current amounts due from joint ventures have maturity dates ranging from April 2028 to the dissolution of the joint venture. Interest

is charged at rates ranging from 4% to 5% (2024: 4% to 5%).

LANDSEC ANNUAL REPORT 2025140

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

AGEING OF TRADE RECEIVABLES

		Up to	Up to 6	Up to 12	More than
	Not	30 days	months	months	12 months
	past due	past due	past due	past due	past due	Total
	£m	£m	£m	£m	£m	£m
As at 31 March 2025
Not impaired	–	28	25	10	7	70
Impaired	–	–	1	4	24	29
Gross trade receivables	–	28	26	14	31	99
As at 31 March 2024
Not impaired	–	20	16	5	5	46
Impaired	–	–	4	4	31	39
Gross trade receivables	–	20	20	9	36	85

None of the Group’s other receivables are past due and therefore no ageing has been shown (2024: £nil).

29 › TRADE AND OTHER PAYABLES

		Group		Company
	2025	2024	2025	2024
	£m	£m	£m	£m
Trade payables	30	56	–	–
Capital accruals	70	48	–	–
Other payables	8	20	–	8
Accruals	155	90	–	–
Deferred income	129	129	–	–
Contract liabilities	–	5	–	–
Amounts owed to joint ventures	14	–	–	–
Loans from Group undertakings	–	–	1,750	2,243
Total current trade and other payables	406	348	1,750	2,251
Non-current other payables	44	–	–	–
Deferred income	–	4	–	–
Total trade and other payables	450	352	1,750	2,251

Capital accruals represent amounts due for work completed on investment properties but not paid for at the year-end. Deferred income

principally relates to rents received in advance.

The Loans from Group undertakings are repayable on demand with no fixed repayment date. Interest is charged at 4.95% per annum (2024: 4.9%).

28 › TRADE AND OTHER RECEIVABLES CONTINUED

LANDSEC ANNUAL REPORT 2025 141

SECTION 6 – OTHER REQUIRED DISCLOSURES

This section gives further disclosure in respect of other areas of the financial statements, together with mandatory disclosures required

in accordance with IFRS.

30 › INVESTMENTS IN SUBSIDIARY UNDERTAKINGS

ACCOUNTING POLICY

Investments in subsidiary undertakings are stated at cost in the Company’s balance sheet, less any provision for impairment in value.

In accordance with IFRS 2 Share Based Payments the equity settled share-based payment charge for the employees of the Company’s

subsidiaries is treated as an increase in the cost of investment in the subsidiaries, with a corresponding increase in the Company’s equity.

	2025	2024
	£m	£m
At the beginning of the year	5,659	6,229
Capital contributions relating to share-based payments (note 37)	6	8
Impairment charge	(302)	(578)
At 31 March	5,363	5,659

A full list of subsidiary undertakings at 31 March 2025 is included on pages 169-172. This includes those which are exempt from the requirement

of the Companies Act 2006 (‘the Act’) relating to the audit of individual accounts by virtue of Section 479A of the Act.

In the year ended 31 March 2025, there has been an impairment charge on the Company’s investment in its subsidiaries of £302m (2024: charge

of £578m) due to corporate restructuring activities in the year. This has resulted in a change in the overall net asset values of the subsidiary

companies being assessed for impairment. The recoverable amount of the investments has been based on the fair value of each of the subsidiaries

at 31 March 2025 as determined by their individual net asset values at that date, totalling £5,363m (2024: £5,659m).

31 › OTHER NON-CURRENT ASSETS

	2025	2024
	£m	£m
Net pension surplus (note 36)	11	11
Derivative financial instruments (note 26)	2	22
Other investments	9	8
Total other non-current assets	22	41

32 › OTHER CURRENT ASSETS

	2025	2024
	£m	£m
Derivative financial instruments (note 26)	2	8
Current tax assets	2	3
Total other current assets	4	11

33 › OTHER CURRENT LIABILITIES

	2025	2024
	£m	£m
Derivative financial instruments (note 26)	6	–
Total other current liabilities	6	–

LANDSEC ANNUAL REPORT 2025142

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

34 › OTHER NON-CURRENT LIABILITIES

	2025	2024
	£m	£m
Net liabilities incurred on behalf of joint ventures 1 (note 16)	3	8
Derivative financial instruments (note 26)	2	5
Total other non-current liabilities	5	13

1. The Group’s share of accumulated losses of a joint venture interest are recognised as net liabilities (see note 16) where there is an obligation to provide for these losses.

35 › PROVISIONS

ACCOUNTING POLICY

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an

outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount

of the obligation. Provisions are estimated considering various possible outcomes and determining the most likely outcome. When the Group

expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement

is virtually certain. The expense relating to a provision is presented in the income statement net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the

risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

			2025
	Building and	Transaction
	fire safety	and contract
	remediation	related	Total
	£m	£m	£m
At 1 April 2024	23	49	72
Charge for the year	5	22	27
Utilised during the year	(2)	(5)	(7)
Reversed during the year	(3)	(15)	(18)
At 31 March 2025	23	51	74
Current	23	21	44
Non-current	–	30	30
At 31 March 2025	23	51	74

BUILDING AND FIRE SAFETY REMEDIATION PROVISIONS

Management have assessed their legal and constructive obligations arising from the Building Safety Act 2022 and other associated fire

regulations and remediation works for identified Reinforced Autoclaved Aerated Concrete. Where an obligation exists, including for properties

no longer owned by the Group but for which the Group is responsible for remediation works, a provision is recorded on the Group’s balance sheet.

£10m of the provision recorded at 31 March 2025 relates to properties no longer owned by the Group. Moreover, a receivable of £5m has been

recorded in note 28 where the Group is virtually certain that the provision recorded will be reimbursed by the original developer of the property

for such remediation works.

TRANSACTION AND CONTRACT RELATED PROVISIONS

Relate to historic or ongoing transactions and contracts that the Group is party to wherein an obligation arises as part of its developer

contractual arrangements, queries received from tax authorities, or contractor claims. These provisions are classed together as they pertain

to past transactions or contracts executed to acquire or dispose of assets or queries arising therefrom. The provisions reflect management’s

best estimate of the costs required to settle these obligations, however owing to the nature of these provisions there is uncertainty over

both the amount and the timing of the potential cash outflows.

LANDSEC ANNUAL REPORT 2025 143

36 › NET PENSION SURPLUS

ACCOUNTING POLICY

Contributions to defined contribution schemes are charged to the income statement as incurred.

The pension obligations arising under the Group’s defined benefit pension scheme are measured at discounted present value. The scheme assets

are measured at fair value, except annuities which are valued to match the liability or benefit value. The operating and financing costs of the

scheme are recognised separately in the income statement. Service costs are spread using the projected unit credit method. Past service costs

are recognised immediately in the income statement in the period in which they are identified. Net financing costs are recognised in the period

in which they arise, calculated with reference to the discount rate, and are included in finance income or expense on a net basis. Remeasurement

gains and losses arising from either experience differing from previous actuarial assumptions, or changes to those assumptions, are recognised

immediately in other comprehensive income.

DEFINED CONTRIBUTION SCHEMES

The charge to operating profit for the year in respect of defined contribution schemes was £4m (2024: £4m).

DEFINED BENEFIT SCHEME

The Pension & Assurance Scheme of the Land Securities Group of Companies (the Scheme) is a registered defined benefit final salary scheme

subject to the UK regulatory framework for pensions, including the Scheme Specific Funding requirements. The Scheme is operated under trust

and as such, the Trustees of the Scheme are responsible for operating the Scheme and they have a statutory responsibility to act in accordance

with the Scheme’s Trust Deed and Rules, in the best interest of the beneficiaries of the Scheme and UK legislation (including trust law). The

Trustees and the Group have the joint power to set the contributions that are paid to the Scheme.

In setting contributions to the Scheme, the Trustees and the Group are guided by the advice of a qualified independent actuary on the basis

of triennial valuations using the projected unit credit method. The Scheme is closed to new members (and was closed to future accrual on

31 October 2019). A full actuarial valuation of the Scheme was undertaken on 30 June 2021 by the independent actuaries, Hymans Robertson LLP.

This valuation was updated to 31 March 2025 using, where required, assumptions prescribed by IAS 19 Employee Benefits. The 30 June 2024

actuarial valuation has not yet been completed.

There have been no employer or employee contributions following the closure of the Scheme to future accrual on 31 October 2019. Prior to this,

the employer contribution rate was 43.1% of pensionable salary to cover the costs of accruing benefits and the employee contributions were at

8% of monthly pensionable salary. It was also agreed that no further deficit contributions were required from the Group. Employee contributions

were paid by salary sacrifice, and therefore appeared as Group contributions. The Group does not expect to make any employee or employer

contributions to the Scheme in the year to 31 March 2026 (2025: £nil).

All death-in-service and incapacity benefits arising during employment are wholly insured. No post-retirement benefits other than pensions are

made available to employees of the Group.

ANALYSIS OF THE AMOUNTS CHARGED TO THE INCOME STATEMENT

	2025	2024
	£m	£m
Analysis of the amount charged to operating profit
Current service costs	–	–
Past service costs	–	–
Charge to operating profit	–	–
Analysis of amount credited to net finance expense
Interest income on plan assets	(8)	(8)
Interest expense on defined benefit scheme liabilities	8	8
Impact on net finance expense	–	–

ANALYSIS OF THE AMOUNTS RECOGNISED IN OTHER COMPREHENSIVE INCOME

	2025	2024
	£m	£m
Analysis of gains and losses
Net remeasurement gains on scheme assets	18	–
Net remeasurement (losses)/gain on scheme liabilities	(18)	(1)
Net remeasurement loss related to authorised payments charge due on net pension surplus	–	(4)
Net remeasurement loss	–	(5)
Cumulative net remeasurement loss recognised in other comprehensive income	(41)	(41)

LANDSEC ANNUAL REPORT 2025144

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

The net surplus recognised in respect of the defined benefit scheme can be analysed as follows:

		2025		2024
	%	£m	%	£m
Bonds – Government	–	–	–	–
Proceeds from corporate bond sale	–	–	–	–
Insurance contracts	90	132	83	151
Cash and cash equivalents	10	15	17	15
Fair value of scheme assets	100	147	100	166
Fair value of scheme liabilities		(132)		(151)
Net pension surplus as per IAS 19		15		15
Expected authorised payments charge		(4)		(4)
Net pension surplus		11		11

In the year ended 31 March 2025, £9m (2024: £11m) of benefits were paid to members.

In December 2022, the Scheme transacted a buy-in policy for £79m covering all remaining uninsured members. This insurance contract is valued

as an asset using the same IAS 19 assumptions. Insurance contracts are annuities which are unquoted assets. All other Scheme assets have

quoted prices in active markets. The Scheme assets do not include any directly owned financial instruments issued by the Group. Indirectly

owned financial instruments had a fair value of £nil (2024: £nil).

In the most recent triennial valuation, the defined benefit scheme liabilities were split nil% (2024: nil%) in respect of active scheme participants,

31% (2024: 31%) in respect of deferred scheme participants, and 69% (2024: 69%) in respect of retirees. As the scheme is now closed to future

accrual, there are no longer any active scheme participants. The weighted average duration of the defined benefit scheme liabilities at 31 March

2025 is 10.7 years (2024: 11.5 years).

The assumptions agreed with the Trustees of the Scheme for the triennial valuation at 30 June 2021 have been restated to the assumptions

described by IAS 19 Employee Benefits. The major assumptions used in the valuation were (in nominal terms):

	2025	2024
	%	%
Rate of increase in pensionable salaries	n/a	n/a
Rate of increase in pensions with no cap	3.40	3.45
Rate of increase in pensions with 5% cap	3.30	3.30
Discount rate	5.70	4.80
Inflation – Retail Price Index	3.40	3.45
– Consumer Price Index	2.75	2.75

The mortality assumptions used in this valuation were:

	2025	2024
	Years	Years
Life expectancy at age 60 for current pensioners – Men	25.9	26.8
– Women	28.5	29.1
Life expectancy at age 60 for future pensioners (current age 40) – Men	27. 3	29.8
– Women	30.9	31.9

36 › NET PENSION SURPLUS CONTINUED

LANDSEC ANNUAL REPORT 2025 145

The sensitivities regarding the principal assumptions used to measure the Scheme liabilities are set out below. These were calculated using

approximate methods taking into account the duration of the Scheme liabilities.

Assumption	Change in assumption	Impact on Scheme liabilities
Discount rate	Decrease by 0.5%	Increase by £7m
Life expectancy	Increase by 1 year	Increase by £5m
Rate of inflation	Increase by 0.5%	Increase by £5m

The above sensitivities show the impact on liabilities only and do not reflect the hedging the scheme has in place. In December 2022, the Scheme

transacted a buy-in policy for £79m covering all remaining uninsured members. As a result, the Group no longer bears any longevity, interest rate

or inflation risk in respect of the pension scheme. The buy-in policy is an investment asset of the Scheme.

The Company did not operate any defined contribution schemes or defined benefit schemes during the financial years ended 31 March 2025 or

31 March 2024.

On 25 July 2024, the Court of Appeal upheld the High Court’s decision in the Virgin Media Limited v NTL Pension Trustees II Limited case, ruling

that historical amendments for contracted-out defined benefit schemes were invalid without a section 37 actuarial confirmation. However,

the appeal did not address the form of the section 37 confirmation or the necessary actuarial remedies if these were absent. Consequently, the

Trustees have not initiated a formal due diligence exercise to investigate this matter following discussions with their legal advisers. The Trustees

and the Group continue to monitor developments and will assess any implications for the Scheme.

37 › SHARE-BASED PAYMENTS

ACCOUNTING POLICY

The cost of granting shares, options over shares and other share-based remuneration to employees and Executive Directors is recognised through

the income statement. All awards are equity settled and therefore the fair value is measured at the grant date. Where the awards have non-

market related performance criteria, the Group uses the Black-Scholes option valuation model to establish the relevant fair values. Where the

awards have Total Shareholder Return (TSR) market related performance criteria, the Group has used the Monte Carlo simulation valuation

model to establish the relevant fair values. The resulting values are amortised through the income statement over the vesting period of the awards.

For awards with non-market related criteria, the charge is reversed if it appears probable that the performance or service criteria will not be met.

The following table analyses the total cost recognised in the income statement for the year between each plan, together with the number of

options outstanding.

	2025	2025	2024	2024
	Charge	Number	Charge	Number
	£m	(millions)	£m	(millions)
Long-Term Incentive Plan	1	4	3	3
Deferred Share Bonus Plan	1	–	2	–
Executive Share Option Scheme	–	1	–	1
Sharesave Plan	–	1	–	1
Restricted Share Plan	4	2	3	2
	6	8	8	7

A summary of the main features of each type of plan is given below. The plans have been split into two categories: Executive plans and Other

plans. For further details on the Executive plans, see the Directors’ Remuneration Report on pages 68-79.

EXECUTIVE PLANS:

LONG-TERM INCENTIVE PLAN (LTIP)

The LTIP is open to Executive Directors, ELT and senior management members with awards made at the discretion of the Remuneration

Committee. In addition, other than for Executive Directors, an award of ‘matching shares’ could be made where the individual acquired shares

in Land Securities Group PLC and pledged to hold them for a period of three years. The awards are issued at nil consideration, subject to

performance and vesting conditions being met. Awards of LTIP shares and matching shares are subject to the same performance criteria and

normally vest after three years. Awards are satisfied by the transfer of existing shares held by the Employee Benefit Trust (EBT). The weighted

average share price at the date of vesting was 622 pence (2024: 635 pence). The estimated fair value of awards granted during the year under

the scheme was £8m (2024: £8m).

LANDSEC ANNUAL REPORT 2025146

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

DEFERRED SHARE BONUS PLAN (DSBP)

The Executive Directors’ annual bonus is structured in two distinct parts made up of an initial payment and deferred shares. The shares are

usually deferred for one or two years. The shares are deferred for one year and are not subject to additional performance criteria. Awards are

satisfied by the transfer of existing shares held by the EBT at nil consideration. The weighted average share price at the date of vesting during

the year was 635 pence (2024: 565 pence). The estimated fair value of awards granted during the year under the scheme was £1m (2024: £1m).

OTHER PLANS:

EXECUTIVE SHARE OPTION SCHEME (ESOS)

The 2005 ESOS was previously open to managers not eligible to participate in the LTIP, but was largely replaced by the Restricted Share Option

Plan in the year ended 31 March 2020. Awards are discretionary and are granted over ordinary shares of the Company at the middle market price

on the three dealing days immediately preceding the date of grant. Awards normally vest after three years and are not subject to performance

conditions. Awards are satisfied by the transfer shares from the EBT and lapse ten years after the date of grant. There were no awards exercised

during the year (2024: none). The estimated fair value of awards granted during the year under the scheme was £nil (2024: £nil).

SHARESAVE PLAN

Under the Sharesave Plan, Executive Directors and other eligible employees are invited to make regular monthly contributions into a Sharesave

Plan operated by Equiniti. On completion of the three or five-year contract period, ordinary shares in the Company may be purchased at a price

based upon the middle market price on the three dealing days immediately preceding the date of invitation less 20% discount. The weighted

average share price at the date of exercise for awards exercised during the year was 620 pence (2024: 641 pence). The estimated fair value of

awards granted during the year under the scheme was £1m (2024: £1m).

RESTRICTED SHARE PLAN (RSP)

The RSP started in the year ended 31 March 2020. It is open to qualifying management level employees with awards granted as nil cost options.

Awards are discretionary and are granted over ordinary shares of the Company at the middle market price on the day immediately preceding

date of grant. Awards normally vest after three years and are not subject to performance conditions. Awards are satisfied by the transfer of shares

from the EBT and lapse ten years after the date of grant. The weighted average share price at the date of exercise for awards exercised during

the year was 631 pence (2024: 648 pence). The estimated fair value of awards granted during the year under the scheme was £3m (2024: £2m).

SHARE INCENTIVE PLAN (SIP)

The SIP started in the year ended 31 March 2024. All employees and Executive Directors are invited to make contributions up to the annual limit

set by HMRC. The contributions are invested into a trust account managed by Equiniti who purchase partnership shares at the market price

on behalf of participants. Landsec grants one matching share for each partnership share purchased. Free shares can also be granted up to an

annual limit. The matching and free shares vest after three years and are not subject to performance conditions. The weighted average share

price at the date of exercise for awards exercised during the year was 615 pence (2024: none). The estimated fair value of awards granted during

the year under the scheme was £1m (2024: £nil).

The aggregate number of awards outstanding, and the weighted average exercise price, are shown below:

		Executive plans 1				Other plans
						Weighted average
		Number of awards		Number of awards		exercise price
	2025	2024	2025	2024	2025	2024
	Number	Number	Number	Number
	(millions)	(millions)	(millions)	(millions)	Pence	Pence
At the beginning of the year	4	3	3	3	759	758
Granted	2	2	1	1	521	563
Exercised	–	–	–	(1)	522	540
Lapsed	(1)	(1)	(1)	–	922	755
At 31 March	5	4	3	3	706	755
Exercisable at the end of the year	–	–	1	1	794	978
	Years	Years	Years	Years
Weighted average remaining contractual life	1	1	1	2

1. Executive plans are granted at nil consideration.

37 › SHARE-BASED PAYMENTS CONTINUED

LANDSEC ANNUAL REPORT 2025 147

The number of share awards outstanding for the Group by range of exercise prices is shown below:

				Outstanding at 31 March 2025				Outstanding at 31 March 2024
				Weighted				Weighted
		Weighted		average		Weighted		average
		average		remaining		average		remaining
		exercise	Number of	contractual		exercise	Number of	contractual
Exercise price – range		price	awards	life		price	awards	life
			Number				Number
Pence		Pence	(millions)	Years		Pence	(millions)	Years
Nil 1		–	5	2		–	6	1
400 – 599		544	1	1		535	–	2
600 – 799		670	2	–		633	–	1
800 – 999		948	–	3		953	–	4
1,000	– 1,199	1,017		–	2	1,022	1	2
1,200 – 1	,399	1,328	–	–		1,328	–	1

1. Executive plans are granted at nil consideration.

FAIR VALUE INPUTS FOR AWARDS WITH NON-MARKET PERFORMANCE CONDITIONS

Fair values are calculated using the Black-Scholes option pricing model for awards with non-market performance conditions. The weighted

average inputs into this model for the grants under each plan in the financial year are as follows:

		Long-Term Incentive Plan		Deferred Share Bonus Plan		Restricted Share Plan		Sharesave Plan
Year ended 31 March	2025	2024	2025	2024	2025	2024	2025	2024
Share price at grant date	625p	625p	637p	621p	630p	619p	628p	574 p
Exercise price	n/a	n/a	n/a	n/a	n/a	n/a	530p	502p
Expected volatility	27%	33%	29%	35%	27%	35%	29%	35%
Expected life	3 years	3 years	1 year	1 year	3 years	3 years	3 to	3 to
							5 years	5 years
Risk-free rate	4.23%	4.36%	4.63%	4.75%	4.00%	4.45%	4.09% to	4.66% to
							4.17%	5.05%
Expected dividend yield	Nil	Nil	Nil	Nil	6.32%	6.23%	6.34%	6.72%

Expected volatility is determined by calculating the historical volatility of the Group’s share price over the previous ten years. The expected life

used in the model has been determined based upon management’s best estimate for the effects of non-transferability, vesting/exercise

restrictions and behavioural considerations. The risk-free rate is the yield at the date of the grant of an award on a gilt-edged stock with

a redemption date equal to the anticipated vesting of that award.

FAIR VALUE INPUTS FOR AWARDS WITH MARKET PERFORMANCE CONDITIONS

Fair values are calculated using the Monte Carlo simulation option pricing model for awards with market performance conditions. Awards made

under the Omnibus Share Plan (2024: 2015 LTIP) include a TSR condition, which is a market-based condition. The weighted average inputs into this

model for the scheme are as follows:

								Expected volatility
		Share price at				Expected volatility		– index of comparator		Correlation
		date of grant		Exercise price		– Group		companies		– Group vs. index
Year ended 31 March	2025	2024	2025	2024	2025	2024	2025	2024	2025	2024
Long-Term Incentive Plan	625p	625p	n/a	n/a	29%	33%	27%	34%	66%	55%

LANDSEC ANNUAL REPORT 2025148

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

38 › ORDINARY SHARE CAPITAL

ACCOUNTING POLICY

Ordinary shares are classified as equity. External costs directly attributable to the issue of new shares are shown in equity as a deduction from

the proceeds.

The consideration paid by any Group entity to acquire the Company’s equity share capital, including any directly attributable incremental costs,

is deducted from equity until the shares are cancelled, reissued or sold. Where own shares are sold or reissued, the net consideration received is

included in equity.

		Group and Company
		Allotted and fully paid
	2025	2024
	£m	£m
Ordinary shares of 10 2 / 3 p each	80	80

		Numbers of shares
	2025	2024
	£m	£m
At the beginning of the year	751,676,657	751,381,219
Issued on the exercise of options	55,407	295,438
At 31 March	751,732,064	751,676,657

The number of options over ordinary shares from Executive plans that were outstanding at 31 March 2025 was 6,622,885 (2024: 5,836,592). If all

the options were exercisable at that date then 6,622,885 (2024: 5,836,592) shares would be required to be transferred from the EBT. The number

of options over ordinary shares from Other plans that were outstanding at 31 March 2025 was 1,119,835 (2024: 1,498,647). If all the options were

exercisable at that date then 539,248 new ordinary shares (2024: 538,608) would be issued and 580,587 shares would be required to be

transferred from the EBT (2024: 960,039).

Shareholders at the Annual General Meeting have previously authorised the acquisition of shares by the Company representing up to 10% of

its share capital, to be held as treasury shares. There were no treasury shares transferred to the EBT during the year ended 31 March 2025 (2024:

none) to satisfy future awards under employee share plans. At 31 March 2025, the Group held 6,789,236 ordinary shares (2024: 6,789,236) with

a market value of £37m (2024: £45m) in treasury. The Company’s voting rights and dividends in respect of the treasury shares, including those

own shares which the EBT holds, continue to be waived.

39 › OWN SHARES

ACCOUNTING POLICY

Shares acquired by the EBT are presented on the Group and Company balance sheets within ‘Other reserves’. Purchases of treasury shares are

deducted from retained earnings.

	Group and Company
	2025	2024
	£m	£m
At the beginning of the year	23	29
Transfer of shares to employees on exercise of share options	(9)	(6)
At 31 March	14	23

Own shares consist of shares in Land Securities Group PLC held by the EBT in respect of the Group’s commitment to a number of its employee

share option schemes (note 37).

The number of shares held by the EBT at 31 March 2025 was 2,061,915 (2024: 3,119,107). The market value of these shares at 31 March 2025 was

£11m (2024: £21m).

LANDSEC ANNUAL REPORT 2025 149

40 › CONTINGENCIES

The Group has contingent liabilities in respect of legal claims, contractor claims, remediation for building defects, developer contractual

arrangements, guarantees and warranties arising in the ordinary course of business. A provision for such matters is only recognised to the extent

that the Group has a legal or constructive obligation as a result of a past event and it is probable that an outflow of economic benefit will be

required to settle the obligation.

41 › RELATED PARTY TRANSACTIONS

SUBSIDIARIES

During the year, the Company entered into transactions, in the normal course of business, with related parties as follows:

	2025	2024
	£m	£m
Transactions with subsidiary undertakings 1 :
Recharge of costs	(306)	(281)
Dividends received	900	1,000
Interest paid	(108)	(148)

1. All significant cash payments for the parent company, including dividend payments, are made by the Group’s treasury function in accordance with the Group’s financial

risk management policy.

JOINT ARRANGEMENTS

As disclosed in note 16, the Group has investments in a number of joint arrangements. Details of transactions and balances between the Group

and its joint arrangements are as follows:

				Year ended and as at 31 March 2025		Year ended and as at 31 March 2024
		Net	Amounts	Amounts		Net	Amounts	Amounts
		investments	owed by	owed to		investments	owed by	owed to
	Income/	into joint	joint	joint	Income/	into joint	joint	joint
	(expense)	ventures	ventures	ventures	(expense)	ventures	ventures	ventures
	£m	£m	£m	£m	£m	£m	£m	£m
Nova, Victoria	10	1	45	–	6	–	54	–
Southside Limited Partnership	4	(1)	74	–	3	–	74	–
Westgate Oxford Alliance Limited Partnership	1	(13)	4	–	(2)	(13)	6	–
Other	1	4	5	(14)	(1)	4	8	–
	16	(9)	128	(14)	6	(9)	142	–

ASSOCIATES

Details of transactions and balances between the Group and its associates are as follows:

				Year ended and as at 31 March 2025		Year ended and as at 31 March 2024
		Net				Net
		investments	Amounts	Amounts		investments	Amounts	Amounts
		into	owed by	owed to		into	owed by	owed to
	Income	associates	associates	associates	Income	associates	associates	associates
	£m	£m	£m	£m	£m	£m	£m	£m
Associates	–	–	–	–	–	–	4	–

REMUNERATION OF KEY MANAGEMENT PERSONNEL

The remuneration of the Directors, who are the key management personnel of the Group and Company, is set out below in aggregate for each

of the applicable categories specified in IAS 24 Related Party Disclosures. Further information about the remuneration of individual Directors is

provided in the audited part of the Directors’ Remuneration Report on pages 69-79.

	2025	2024
	£m	£m
Short-term employee benefits 1	5	5
Share-based payments	3	3
	8	8

1. Short-term employee benefits include pension allowances.

LANDSEC ANNUAL REPORT 2025150

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025 CONTINUED

42 › OPERATING LEASE ARRANGEMENTS

ACCOUNTING POLICY

The Group earns rental income by leasing its properties to tenants under non-cancellable operating leases. Leases in which substantially all

risks and rewards incidental to ownership of investment properties are retained by the Group as the lessor are classified as operating leases.

Payments, including prepayments, received under operating leases (net of any incentives paid) are charged to the income statement on

a straight-line basis over the period of the lease.

At the balance sheet date, the Group had contracted with tenants to receive the following undiscounted future minimum lease payments:

	2025	2024
	£m	£m
Not later than one year	484	416
Later than one year, but not more than two years	449	395
Later than two years, but not more than three years	414	356
Later than three years, but not more than four years	364	330
Later than four years, but not more than five years	304	286
More than five years	1,763	2,371
	3,778	4,154

The total of contingent rents, primarily turnover based rents, recognised as income during the year was £25m (2024: £61m).

43 › ACQUISITION OF NON-CONTROLLING INTERESTS

ACCOUNTING POLICY

Refer to note 1 for the Group’s policy on recognition of subsidiary undertakings.

SIGNIFICANT ACCOUNTING JUDGEMENT

Acquisitions of subsidiaries, and the method applied on the initial recognition of the subsidiary or group of subsidiaries, by nature can be complex

and material to the financial statements. When a subsidiary is acquired, management considers the substance of the assets and activities of

the acquired entity to determine whether the acquisition represents the acquisition of a business or an acquisition of an asset. An acquisition is

accounted for as a business combination where an integrated set of activities and assets, including property, is acquired. Business combinations

are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which

is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. The non-controlling interest in the

acquiree is initially measured at their proportion of the net fair value of the assets, liabilities and contingent liabilities recognised. When the

acquisition of a subsidiary does not represent a business combination, it is accounted for as an acquisition of a group of assests and liabilities.

The cost of the acquisition is allocated to the assets and liabilities acquired based upon their relative fair values, and no goodwill or deferred tax

is recognised.

ACQUISITION OF NON-CONTROLLING INTERESTS AND RELATED BUSINESS COMBINATION

On 30 October 2024, Landsec acquired the residual 25% interest in MediaCity, including the management rights, as well as a 100% interest

in entities previously wholly owned by The Peel Group (‘MediaCity acquirees’). The entities acquired operate a 218-bed hotel, are involved with

studio operations, perform facilities management services, own the residential freehold and perform related management services for the

MediaCityUK development.

The Group has accounted for this acquisition in accordance with IFRS 3 Business Combinations. The cash consideration was £23m and Landsec

assumed £61m of debt. The Group incurred £5m of business combination costs in connection with the transaction. The consideration paid by

the Group relating to the acquisition of the 25% non-controlling interest in MediaCity was equivalent to the non-controlling interest balance

as at the date of acquisition, which was also its fair value. These cash flows have been presented as cash flows from investing activities.

Goodwill of £21m arose on the transaction because of the difference between the fair value of the net assets acquired and the consideration

paid, relating to the additional skills and operations that the Group acquired related to the studios operations and from obtaining full control

of the MediaCity acquirees. The Group has considered whether the goodwill is recoverable, and has concluded that it is not. The Group’s longer-

term plans for the acquired entities and any potential synergies with the Group’s existing holdings are at an early stage, making the recoverable

amount uncertain at this time. £21m of goodwill has therefore been written off to the income statement in the year.

The fair value of the assets and liabilities recognised at the date of acquisition is set out in the table below. As at 31 March 2025, the Group

remains in the measurement period for the recognition of assets and liabilities on the acquisition of the MediaCity acquirees. The values provided

in the table below are therefore provisional and could be subject to adjustment until the measurement period ends in October 2025:

LANDSEC ANNUAL REPORT 2025 151

	MediaCity acquirees
	£m
Assets
Investment property	63
Trade receivables and other assets	12
Cash	10
Total assets	85
Liabilities
Borrowings	(61)
Trade payables and other liabilities	(22)
Total liabilities	(83)
Net assets	2
Fair value of consideration paid	23
Goodwill recognised	21
Goodwill impairment	(21)
Business combination costs	(5)

PRO-FORMA INFORMATION

Since the acquisition date, the MediaCity acquirees have contributed the following to the revenue and loss before tax of the Group for the year:

	MediaCity
	£m
Revenue	19
Loss before tax	(1)

If the acquisition had been made on 1 April 2024, the Group’s revenue would have been higher by £24m and profit before tax would have been

lower by £41m. The pro-forma information is provided for illustrative purposes only and is not necessarily indicative of the results of the combined

Group that would have occurred had the purchases actually been made at the beginning of the financial year, or indicative of future results of

the combined Group.

44 › ASSETS HELD-FOR-SALE

On 28 March 2025, the Group exchanged contracts for the sale of Land Securities Lakeside Limited, which owns the Lakeside Retail Park in West

Thurrock, for a headline property price of £114m. Since the risks and returns of ownership had not fully transferred to the buyer at 31 March 2025,

the property was classified as a Non-current asset held-for-sale with a carrying value of £110m. On 29 April 2025, the Group completed on the sale.

45 › EVENTS AFTER THE REPORTING PERIOD

On 29 April 2025, the Group completed on the sale of Land Securities Lakeside Limited.

On 2 May 2025, the Group put in place a new £300m bank facility with a November 2027 maturity.

On 14 May 2025, the Group increased its interest in Liverpool ONE to 96.5% following the full repayment of the £240m asset level bank facility.

Subsequent to the year-end, the Group also exchanged or completed on disposals of properties totalling £45m in value.

No other significant events occurred after the reporting period but before the financial statements were authorised for issue.

LANDSEC ANNUAL REPORT 2025152

ADDITIONAL INFORMATION

EPRA NET ASSET MEASURES

TABLE 51

31 March 2025

EPRA NRV

£m

EPRA NTA

£m

EPRA NDV

£m

Net assets attributable to shareholders 6,514 6,514 6,514

Shortfall of fair value over net investment in finance lease book value (8) (8) (8)

Other intangible asset – (2) –

Fair value of interest-rate swaps (1) (1) –

Shortfall of fair value of debt over book value (note 23) – – 334

Excess of fair value of trading properties over book value 27 27 27

Purchasers’ costs

668 – –

Net assets used in per share calculation 7,2 00 6,530 6,867

EPRA NRV EPRA NTA EPRA NDV

Diluted net assets per share 964p 874p 919p

EPRA NET ASSET MEASURES

TABLE 52

31 March 2024

EPRA NRV

£m

EPRA NTA

£m

EPRA NDV

£m

Net assets attributable to shareholders 6,402 6,402 6,402

Shortfall of fair value over net investment in finance lease book value (5) (5) (5)

Other intangible asset – (2) –

Fair value of interest-rate swaps (22) (22) –

Shortfall of fair value of debt over book value (note 23) – – 313

Excess of fair value of trading properties over book value 25 25 25

Purchasers’ costs

605 – –

Net assets used in per share calculation 7,0 05 6,398 6,735

EPRA NRV EPRA NTA EPRA NDV

Diluted net assets per share 940p 859p 904p

1. EPRA NTA and EPRA NDV reflect IFRS values which are net of purchasers’ costs. Purchasers’ costs are added back when calculating EPRA NRV.

BUSINESS ANALYSIS – EPRA DISCLOSURES

LANDSEC ANNUAL REPORT 2025 153

EPRA PERFORMANCE MEASURES

TABLE 53

31 March 2025

Measure Definition for EPRA measure Notes

EPRA

measure

EPRA earnings Recurring earnings from core operational activity 5 £374m

EPRA earnings per share EPRA earnings per weighted number of ordinary shares 5 50.3p

EPRA diluted earnings per share EPRA diluted earnings per weighted number of ordinary shares 5 50.1p

EPRA Net Tangible Assets (NTA) Net assets adjusted to exclude the fair value of interest-rate swaps, intangible

assets and excess of fair value over net investment in finance lease book value

5 £6,530m

EPRA Net Tangible Assets per share Diluted Net Tangible Assets per share 5 874p

EPRA net disposal value (NDV) Net assets adjusted to exclude the fair value of debt and goodwill on deferred tax

and to include excess of fair value over net investment in finance lease book value

5 £6,867m

EPRA net disposal value per share Diluted net disposal value per share 5 919p

EPRA loan-to-value (LTV)

Ratio of adjusted net debt, including net payables, to the sum of the net assets,

including net receivables, of the Group, its subsidiaries and joint ventures, all on

a proportionate basis, expressed as a percentage

22 41.0%

Table

EPRA

measure

Voids/vacancy rate ERV of vacant space as a % of ERV of Combined Portfolio excluding the

developmentprogramme

18 2.8%

Net initial yield (NIY) Annualised rental income less non-recoverable costs as a % of market value plus

assumed purchasers’ costs

20 5.4%

Topped-up NIY NIY adjusted for rent-free periods

20 6.0%

Cost ratio

Total costs as a percentage of gross rental income (including direct vacancy costs)

21 21.7%

Total costs as a percentage of gross rental income (excluding direct vacancy costs)

21 18.8%

1. EPRA LTV differs from the Group LTV presented in note 22 as it includes net payables and receivables and includes trading properties at fair value and debt instruments

at nominal value rather than book value.

2. This measure reflects voids in the Combined Portfolio excluding only properties under development.

3. This measure relates to the Combined Portfolio, excluding properties currently under development, and are calculated by our external valuer. Topped-up NIY reflects

adjustments of £60m.

4. This measure is calculated based on gross rental income after rents payable and excluding costs recovered through rents but not separately invoiced of £12m. Further

information on the Group’s accounting policies pertaining to capitalised costs can be found in section 3 of the financial statements.

EPRA VACANCY RATE

The EPRA vacancy rate is based on the ratio of the estimated market rent for vacant properties versus total estimated market rent, for the

Combined Portfolio excluding properties under development. There are no significant distorting factors influencing the EPRA vacancy rate.

TABLE 54

31 March

2025

£m

ERV of vacant properties 20

ERV of Combined Portfolio excluding properties under development 711

EPRA vacancy rate (%) 2.8

LANDSEC ANNUAL REPORT 2025154

ADDITIONAL INFORMATION

BUSINESS ANALYSIS – EPRA DISCLOSURES

CONTINUED

CHANGE IN NET RENTAL INCOME FROM THE LIKE-FOR-LIKE PORTFOLIO

TABLE 55

Change

2025

£m

2024

£m £m %

Central London 244 229 15 6.6%

Major retail 144 137 7 5.1%

Subscale sectors 60 60 – 0.0%

Mixed-use 37 36 1 2.8%

485 462 23 5.0%

1. Excludes movement in bad/doubtful debts and surrender premiums received during the period.

EPRA NET INITIAL YIELD (NIY) AND TOPPED-UP NIY

TABLE 56

31 March

2025

£m

Combined Portfolio

10,880

Trading properties 108

Less: Properties under development, trading properties under development and land (1,283)

Like-for-like investment property portfolio, proposed and completed developments, and completed trading properties 9,705

Plus: Allowance for estimated purchasers’ costs 575

Grossed-up completed property portfolio valuation (a) 10,280

EPRA annualised cash passing rental income

634

Net service charge expense

(11)

Void costs and other deductions (71)

EPRA Annualised net rent

(b) 552

Plus: Rent-free periods and other lease incentives (annualised) 60

Topped-up annualised net rents (c) 612

EPRA NIY (b/a) 5.4%

EPRA Topped-up NIY (c/a) 6.0%

1. Includes owner-occupied property and non-current assets held-for-sale.

2. EPRA annualised cash passing rental income and EPRA annualised net rent as calculated by the Group’s external valuer.

3. Including costs recovered through rents but not separately invoiced.

COST ANALYSIS

TABLE 57

2025 2024

Total

£m

Cost

ratio

Total

£m

Cost

ratio

Gross rental income

(beforerents payable)

636 653

Costs recovered through rents

but not separately invoiced

(12) (9)

Adjusted gross rental

income

624 644

Rents payable (12) (12)

EPRA gross rental income 612 632

£m

Gross rental income (before rents payable)

636

Rents payable (12)

Gross rental income (after rents payable) 624

Direct

property

costs

£72m

Managed operations 20 10

Net service charge expense (11)

Tenant default (11) (6)

Net direct property expenditure (73)

Void related costs 18 30

Net other operating income 1

Other direct property costs 42 54

Movement in bad and doubtful debts

provision

Segment net rental income 552 Development expenditure 6 9

Net indirect expenses (73)

Net

indirect

expenses

£73m

Asset management,

administration and

compliance

70 70

Segment profit before finance expense 479

Net finance expense – Group (94)

Net finance expense – joint ventures (11)

EPRA earnings 374

Total (incl. direct

vacancycosts)

145 167

Costs recovered through rents

(12) (9)

EPRA costs (incl. direct

vacancy costs)

133 21.7 158 25.0

Less: Direct vacancy costs (18) (30)

EPRA (excl. direct

vacancycosts)

115 18.8 128 20.3

1. Percentages represent costs divided by EPRA gross rental income.

LANDSEC ANNUAL REPORT 2025 155

LANDSEC ANNUAL REPORT 2025156

ADDITIONAL INFORMATION

ACQUISITIONS, DISPOSALS AND CAPITAL EXPENDITURE

TABLE 58

Year ended

31 March

2025

Year ended

31 March

2024

Investment properties

Group

(excl.joint

ventures)

£m

Joint

ventures

£m

Adjustment for

non-wholly

owned

subsidiaries

£m

Combined

Portfolio

£m

Combined

Portfolio

£m

Net book value at the beginning of the year 9,330 585 (118) 9,797 10,120

Acquisitions 642 – 82 724 144

Capital expenditure 473 13 – 486 376

Capitalised interest 27 – – 27 19

Net movement in head leases capitalised 86 – – 86 (30)

Disposals (479) (3) – (482) (207)

Net surplus/(deficit) on revaluation of investment properties 91 13 3 107 (625)

Transfer to non-current assets held-for-sale

(110) – – (110) –

Transfer to property, plant and equipment

(26) – – (26) –

Net book value at the end of the year 10,034 608 (33) 10,609 9,797

(Loss)/profit on disposal of investment properties (15) 3 – (12) (16)

Trading properties £m £m £m £m £m

Net book value at the beginning of the year 100 – – 100 118

Transfer to trade and other receivables (11) – – (11) –

Acquisitions 10 – – 10 –

Capital expenditure 11 – – 11 13

Capitalised interest 1 – – 1 1

Disposals (26) – – (26) (21)

Movement in impairment (4) – – (4) (11)

Net book value at the end of the year 81 – – 81 100

Loss on disposal of trading properties (6) – – (6) –

ACQUISITIONS, DEVELOPMENT AND OTHER CAPITAL EXPENDITURE

Acquisitions, development and other capital expenditure

Investment

properties

£m

Trading

properties

£m

Combined

Portfolio

£m

Combined

Portfolio

£m

Acquisitions

724 10 734 144

Development capital expenditure

312 6 318 226

Other capital expenditure 174 5 179 163

Capitalised interest 27 1 28 20

Acquisitions, development and other capital expenditure 1,237 22 1,259 553

Disposals £m £m

Net book value – investment property disposals 482 207

Net book value – trading property disposals 26 21

Net book value – other net assets (1) 3

Loss on disposal – investment properties (15) (16)

Profit on disposal – trading properties (6) –

Other 61 1

Total disposal proceeds 547 216

1. This represents the interest in Liverpool ONE which we do not own but consolidate in the Group numbers. The movement in acquisitions includes the acquisition of the

remaining non-controlling interest in MediaCity which was purchased during the financial year.

2. Refer to note 44 for further information.

3. Refer to note 20 for further information.

4. See EPRA analysis of capital expenditure table 59 for further details.

5. Properties acquired during the year.

6. Development capital expenditure for investment properties comprises expenditure on the development pipeline and completed developments.

BUSINESS ANALYSIS – EPRA DISCLOSURES

CONTINUED

LANDSEC ANNUAL REPORT 2025 157

EPRA ANALYSIS OF CAPITAL EXPENDITURE

TABLE 59

Year ended 31 March 2025

Other capital expenditure

Capitalised

interest

£m

Total capital

expenditure

– Combined

Portfolio

£m

Total capital

expenditure

– joint

ventures

(Group

share)

£m

Adjustment

for

non-wholly

owned

subsidiaries

£m

Total capital

expenditure

– Group

£m

Acquisitions

£m

Development

capital

expenditure

£m

Incremental

lettable

space

£m

incremental

lettable

space

£m

Tenant

improvements

£m

Total

£m

Central London

West End offices – 8 – 19 3 22 – 30 1 – 29

City offices – – – 70 – 70 2 72 – – 72

Retail and other – – – 16 – 16 – 16 1 – 15

Developments – 272 – – – – 25 297 – – 297

Total Central

London

– 280 – 105 3 108 27 415 2 – 413

Major retail

Shopping centres 630 – 5 21 6 32 – 662 5 (33) 690

Outlets – – – 15 2 17 – 17 – – 17

Total Major

retail

630 – 5 36 8 49 – 679 5 (33) 707

Mixed-use urban

London 2 17 – – – – – 19 – – 19

Other cities 92 15 – 8 – 8 – 115 6 115 (6)

Total Mixed-use

urban

94 32 – 8 – 8 – 134 6 115 13

Subscale sectors

Leisure – – – 1 6 7 – 7 – – 7

Hotels – – – – – – – – – – –

Retail parks – – 2 – – 2 – 2 – – 2

Total Subscale

sectors

– – 2 1 6 9 – 9 – – 9

Total capital

expenditure

724 312 7 150 17 174 27 1,237 13 82 1,142

Timing difference between accrual and cash basis (488) (2) (82) (404)

Total capital expenditure on a cash basis 749 11 – 738

1. Investment properties acquired in the year.

2. Expenditure on the future development pipeline and completed developments.

3. Capital expenditure where the lettable area increases by at least 10%.

LANDSEC ANNUAL REPORT 2025158

ADDITIONAL INFORMATION

TOP 12 OCCUPIERS AT 31 MARCH 2025

TABLE 60

% of Group

rent

Central Government 5.2%

Deloitte 2.1%

BBC 1.5%

ITX 1.5%

Taylor Wessing 1.5%

Cineworld 1.4%

Boots 1.3%

Qube RT 1.1%

M&S 1.0%

H&M 0.9%

Q Park Limited 0.9%

Sainsbury’s 0.9%

19.3%

1. On a proportionate basis.

PROPERTY INCOME DISTRIBUTION (PID) CALCULATION

TABLE 61

Year ended

31 March

2025

£m

Year ended

31 March

2024

£m

Profit/(loss) before tax per income statement

393

(341)

Accounting profit/(loss) on residual operations

(23)

Profit/(loss) attributable to tax-exempt operations 438

(364)

Adjustments

Capital allowances

(56)

(55)

Capitalised interest

(29)

(20)

Revaluation deficit/(surplus)

(117)

649

Tax exempt disposals

(18)

Capital expenditure

Other tax adjustments

(9)

REIT dividends received

(11)

(10)

Estimated tax-exempt income for the year 218

209

PID thereon (90%)

197

188

REIT dividends received (100%)

Minimum PID to be paid

208

198

As a Real Estate Investment Trust (REIT), our income and capital gains from qualifying activities are exempt from corporation tax. 90% of this

income must be distributed as aProperty Income Distribution (PID) and is taxed at the shareholder level to give a similar tax position to direct

property ownership. Non-qualifying activities, such as sales of trading properties, are subject to corporation tax. This year, there was a £3m

current tax credit (2024: £nil).

The table above provides a reconciliation of the Group’s profit/(loss) before tax to its estimated tax exempt income, 90% of which the Company

is required to distribute as a PID to comply with REIT regulations. The Company also needs to distribute 100% of REIT dividends received. The

comparatives have been updated to reflect the actual balances for the year ended 31 March 2024.

BUSINESS ANALYSIS – GROUP

LANDSEC ANNUAL REPORT 2025 159

The Company has 12 months after the year-end to make the minimum distribution. Accordingly, PID dividends paid in the year may relate to the

distribution requirements of previous periods. The table below sets out the dividend allocation for the years ended 31 March 2025 and 31 March 2024:

TABLE 62

PID allocation

Dividends in

excess of

minimum PID

Total

dividend

Year ended

31 March 2025

£m

Year ended

31 March 2024

£m

Pre-

31 March 2024

£m £m £m

Dividends paid in year to 31 March 2024 – 198 63 30 291

Dividends paid in year to 31 March 2025 208 – – 89 297

Minimum PID to be paid by 31 March 2026 – – n/a n/a –

Total PID required 208 198

The Group has met all the REIT requirements, including the payment by 31 March 2025 of the minimum PID for theyear ended 31 March 2024.

The forecast minimum PID for the year ended 31 March 2025 is £208m, which must be paid by 31 March 2026. TheGroup has already made PID

dividends relating to 31 March 2025 of £208m.

Our latest tax strategy can be found on our corporate website. In the year, the total taxes we incurred and collected were £135m (2024: £136m),

ofwhich £36m (2024: £37m) was directly borne by the Group including environmental taxes, business rates and stamp duty land tax.

REIT BALANCE OF BUSINESS

To retain the Group’s REIT status, it must meet conditions from the REIT legislation. At least 75% of the Group’s assets and 75% of the Group’s

income must relate to qualifying activities. The results of these tests at the balance sheet date are below:

TABLE 63

For the year ended 31 March 2025 For the year ended 31 March 2024

Tax-exempt

business

Residual

business

Adjusted

results

Tax-exempt

business

Residual

business

Adjusted

results

Profit before tax (£m)

317 (54) 263 271 (3) 268

Balance of business – 75% profits test 100.0% 0.0% 100.0% 0.0%

Adjusted total assets (£m)

10,872 761 11,633 10,063 606 10,669

Balance of business – 75% assets test 93.5% 6.5% 94.3% 5.7%

1. Calculated according to REIT rules.

FLOOR SPACE (MILLION SQ FT

)

CHART 64

●

Central London 5.3

●

Major retail 10.4

●

Mixed-use urban 2.9

●

Subscale sectors 4.9

Total

23.5

1. Joint ventures are reflected at 100% values, not Group share.

TABLE 65

31 March 2025

Million sq ft

Central London

West End offices 2.7

City offices 1.7

Retail and other 0.9

Total Central London 5.3

Major retail

Shopping centres 9.4

Outlets 1.0

Total Major retail 10.4

Mixed-use urban

London 0.8

Major regional cities 2.1

Total Mixed-use urban 2.9

Subscale sectors

Leisure 3.3

Retail parks 1.6

Total Subscale sectors 4.9

Total 23.5

LANDSEC ANNUAL REPORT 2025160

ADDITIONAL INFORMATION

GREENHOUSE GAS REPORTING

In line with requirements set out in the Companies Act 2006 (Strategic Report and Directors’ Reports) Regulations 2013 and the Companies

(Directors’ Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018, and in accordance with the Streamlined

Energy and Carbon Reporting (SECR), this statement reports our greenhouse gas (GHG) emissions for financial year ending 31 March 2025.

STREAMLINED ENERGY AND CARBON REPORTING (SECR)

Our streamlined energy and carbon reporting figures include energy consumption and carbon emissions associated with all properties under our

operational control (i.e. absolute portfolio). Energy consumption is reported as kWh and no normalisation technique is applied. Carbon emissions

are reported as tonnes of carbon dioxide equivalent (tCO

e). We report our full GHG emissions annually in accordance to the World Resources

Institute (WRI) GHG Protocol.

GHG emissions are broken down into three scopes: Scopes 1, 2 and 3.

Scope 1 emissions are direct emissions from activities controlled by us that release emissions into the atmosphere, while Scope 2 emissions are

indirect emissions associated with our consumption of purchased energy.

At Landsec, Scope 1 comprises emissions from natural gas purchased for common areas and shared services and refrigerant gas losses based

on top-ups recorded on our compliance reporting system – Riskwise. Scope 2 emissions are from electricity, heating and cooling purchased for

common areas and shared services. All material sources of Scope 1 and 2 emissions are reported. As the remaining sources (e.g. diesel used in

generator testing) represent such a small proportion of total emissions, we do not report them.

Scope 2 emissions are reported using both the ‘location-based’ and ‘market-based’ accounting methods. Location-based emissions are reported

using the UK Government’s ‘Greenhouse gas reporting: conversion factors 2024’. Scope 2 market-based emissions are reported using the conversion

factor associated with each individual electricity, heating and cooling supply, either obtained directly from the supplier or from their official

company website.

Scope 3 emissions are those that are a consequence of our business activities, but which occur at sources we do not own or control and which

are not classified as Scope 2 emissions. The GHG Protocol identifies 15 categories of which eight are directly relevant for Landsec. Our Scope 3

reporting methodology is detailed in our Sustainability Performance and Data Report 2025 at landsec.com/sustainability/reports-benchmarking.

SCOPE 1 AND 2 EMISSIONS

TABLE 66

Emissions Unit 2024/25 2023/24 2022/23

Scope 1 tCO

e 5,165 5,809 6,950

Scope 2 (location-based method) tCO

e 17,93 8 17,6 67 16,798

Scope 2 (market-based method) tCO

e 4,133 2,760 2,954

Scope 1 and 2 (location-based method) tCO

e 23,103 23,476 23,748

Scope 1 and 2 (market-based method) tCO

e 9,298 8,569 9,904

Intensity Unit 2024/25 2023/24 2022/23

Scope 1 and 2 (location-based method) kgCO

e/m

13.45 13.01 12.84

Scope 1 and 2 (market-based method) kgCO

e/m

5.41 4.75 5.36

SUSTAINABILITY PERFORMANCE

LANDSEC ANNUAL REPORT 2025 161

SCOPE 1 AND 2 EMISSIONS – YEAR-ON-YEAR DRIVING FACTORS

CHART 67

23,476

1,368

(422)

(214)

(1,894)

789

23,103

5,000

10,000

15,000

20,000

25,000

tCO

2023/24

Portfolio

changes

External

temperature

Occupancy

changes

Energy

efficiencies

Emission

factor

2024/25

Scope 1 and 2 emissions using location-based emission factors have

decreased by 2% compared with the previous reporting year. The key

reduction driver comes from our energy efficiency initiatives across

ourassets; however the impact has been partially offset by the change

of emissions factors, particularly district heating and cooling, and

portfolio acquisitions. Thedetailed breakdown of main factors driving

the change in our Scope 1and Scope 2 emissions can be seen in the

waterfall chart 67.

In terms of market-based emissions, the 9% year-on-year increase is

primarily attributable to the acquisition of assets that are not supplied

by REGO-backed renewable electricity.

SCOPE 3 EMISSIONS

TABLE 68

Scope 3 Category Unit 2024/25 2023/24 2022/23

Purchased goods and services (PG&S) tCO

e 35,016 35,354 27,51 6

Capital goods tCO

e 62,279 73,355 52,987

Fuel- and energy-related activities tCO

e 6,406 6,575 6,792

Upstream transportation and distribution tCO

e under PG&S under PG&S under PG&S

Waste generated in operations tCO

e 160 605 625

Business travel tCO

e 249 274 135

Employee commuting tCO

e 161 132 104

Downstream leased assets tCO

e 73,273 88,415 87,551

Scope 3 tCO

e 177,5 4 5 204,709 175,710

Scope 1, 2 and 3 (location-based method) tCO

e 200,648 228,185 199,458

Scope 1, 2 and 3 (market-based method) tCO

e 186,843 213,278 185,614

The following Scope 3 emissions are considered not applicable to us thus are excluded from the above table: 8. Upstream leased assets; 9. Downstream transportation and

distribution; 10. Processing of sold products; 11. Use of sold products; 12. End-of-life treatment of sold products; 14. Franchises; and 15. Investments. Our Scope 3 reporting

methodology is detailed in our Sustainability Performance and Data Report 2025 at landsec.com/sustainability/reports-benchmarking.

EMISSIONS INVENTORY (% OF TOTAL EMISSIONS)

CHART 69

Capital goods

Downstream leased assets

Purchased goods and services (PG&S)

Other emissions

Scope 1

Scope 3

88%

Scope 2

(location-based method)

Fuel and energy-related activities

31%

37%

17%

0.3%

LANDSEC ANNUAL REPORT 2025162

ADDITIONAL INFORMATION

Our emissions inventory can be seen in table 68. The two largest Scope 3 categories are capital goods and downstream leased assets, making

upover 68% of our total emissions, as shown in chart 69.

Capital goods include the emissions associated with the manufacture and transport of materials used within our development activities and

portfolio projects. Downstream leased assets are those emissions associated with energy consumed by our customers within our assets.

Emissions from capital goods have decreased by 15% compared with last year, primarily due to the completion of several development projects

in the previous reporting period, including Lucent, n2 and The Forge. In addition, our improved approach in capturing supplier-specific emission

factors for calculating supplier emissions has also contributed to the reduction in capital goods emissions this year. We continue making

considerable progress in reducing upfront embodied carbon at our developments, as discussed on pages 28-30. Our development pipeline

performance, which includes our targets and performance of upfront embodied carbon, is detailed in our Sustainability Performance and Data

Report 2025.

In relation to downstream leased assets, we continue engaging with our tenants of our FRI assets and retail brand partners to increase the share

of primary tenant energy usage data (76% of our total downstream leased assets data), thereby increasing actual performance data. The 17%

reduction in carbon emissions compared with last year for this category has been driven by a combination of energy efficiencies, changes in the

portfolio and updated benchmarks to estimate tenant energy consumption.

ENERGY CONSUMPTION

TABLE 70

Unit 2024/25 2023/24 2022/23

Natural Gas kWh for landlord shared services 25,406,940 28,558,903 31,202,547

(sub)metered to tenants 15,925,042 16,912,876 19,526,063

Total Natural Gas consumption 41,331,982 45,471,779 50,728,610

Electricity kWh for landlord shared services 80,345,185 81,052,747 82,227,618

(sub)metered to tenants 45,160,499 50,356,156 51,168,405

Total Electricity consumption 125,505,684 131,408,903 133,396,023

District Heating and Cooling kWh for landlord shared services 7,216,433 5,022,348 4,973,961

(sub)metered to tenants 3,600,824 3,991,868 4,263,285

Total Heating and Cooling consumption 10,817,257 9,014,216 9,237,246

Total Energy Consumption kWh for landlord shared services 112,968,557 114,633,998 118,404,126

(sub)metered to tenants 64,686,366 71,260,900 74 ,957,75 3

Total Energy consumption 177,65 4,9 2 3 185,894,898 193,361,879

Energy intensity kWh/m

103 103 105

The table above presents the absolute energy consumption, broken down by landlord and tenant usage. This year, energy intensity has remained

stable and total energy consumption has reduced by 4% compared with the previous year. The significant energy reductions achieved through

optimisation of HVAC systems across our Workplace assets, strategic investments in plant upgrades and the installation of Air Source Heat Pumps

(ASHPs) as part of our Net Zero Transition Investment Plan (NZTIP) programme have been partially offset by acquisition of some high-energy

intensive assets, resulting in stable energy intensity compared with last year. For details on the progress of our NZTIP and energy performance,

see page 29.

ASSURANCE

Landsec’s auditor, EY, has once again conducted sustainability assurance. This is part of our journey to embed sustainability across the business

and enhance the integrity, quality and usefulness of the information we provide. EY performed a limited assurance engagement on selected

performance data and qualitative statements in the ‘Our People and Culture’, ‘Our approach to sustainability’, and ‘TCFD’ sections of the

Strategic Report pages 25-37; the sustainability content in the ‘Additional Information’ section of the Landsec 2025 Annual Report pages 160-162;

and the online Sustainability Performance and Data Report 2025.

The Sustainability Performance and Data Report 2025 and the full assurance statement are available at landsec.com/sustainability/reports-

benchmarking.

SUSTAINABILITY PERFORMANCE

CONTINUED

LANDSEC ANNUAL REPORT 2025 163

The Group has applied the European Securities and Markets Authority (ESMA) ‘Guidelines on Alternative Performance Measures’ in these results.

In the context of these results, an alternative performance measure (APM) is a financial measure of historical or future financial performance,

position or cash flows of the Group which is not a measure defined or specified in IFRS.

The table below summarises the APMs included in these results and where the reconciliations of these measures can be found. The definitions

of APMs are included in the Glossary.

TABLE 71

Alternative performance measure Nearest IFRS measure Reconciliation

EPRA earnings Profit/loss before tax Note 4

EPRA earnings per share Basic earnings/loss per share Note 5

EPRA diluted earnings per share Diluted earnings/loss per share Note 5

EPRA Net Tangible Assets Net assets attributable to shareholders Note 5

EPRA Net Tangible Assets per share Net assets attributable to shareholders Note 5

Total return on equity n/a Note 5

Adjusted net cash inflow from operating activities Net cash inflow from operating activities Note 13

Combined Portfolio Investment properties Note 14

Adjusted net debt Borrowings Note 22

Group LTV n/a Note 22

EPRA LTV n/a Note 22

ALTERNATIVE PERFORMANCE MEASURES

LANDSEC ANNUAL REPORT 2025164

ADDITIONAL INFORMATION

TOTAL PORTFOLIO ANALYSIS TOTAL PORTFOLIO ANALYSIS CONTINUED

TABLE 72

Notes

1. Refer to Glossary for definition.

2. Annualised rental income is annual ‘rental income’ (as defined in

the Glossary) at the balance sheet date, except that car park and

commercialisation income are included on a net basis (after

deduction for operational outgoings). Annualised rental income

includes temporary lettings.

3. Net estimated rental value is gross estimated rental value, as

defined in the Glossary, after deducting expected rent payable.

4. Net initial yield – refer to Glossary for definition. This calculation

includes all properties including those sites with no income.

5. Equivalent yield – refer to Glossary for definition. Future

developments are excluded from the calculation of equivalent

yield on the Combined Portfolio.

6. Comprises the development pipeline – refer to Glossary for

definition.

7. The like-for-like portfolio – refer to Glossary for definition.

8. The prior year data has been represented to align with the

updated categories disclosed.

9. Includes owner-occupied property.

10. Includes non-current assets held-for-sale.

11. Short-term commercialisation income from Piccadilly Lights has

been included in the current year disclosure and to ensure year-

on-year alignment the comparatives have been updated by £15m.

Market value

Valuation movement

Rental income

Annualised

rental income

Net estimated

rental value

Net initial yield

Equivalent yield

31 March

2025

£m

31 March

2024

£m

Surplus/

(deficit)

£m

Surplus/

(deficit)

31 March

2025

£m

31 March

2024

£m

31 March

2025

£m

31 March

2024

£m

31 March

2025

£m

31 March

2024

£m

31 March

2025

Movement

in like-

for-like

bps

31 March

2025

Movement

in like-

for-like

bps

Central London

West End offices 3,124 3,109 17 0.6 162 148 164 160 202 186

West End offices

4.6 36 5.4 14

City offices 1,445 1,192 20 1.4 80 68 85 70 111 93

City offices

4.2 89 6.2 13

Retail and other

1,022 991 (2) (0.2) 58 58 58 58 54 55

Retail and other

4.3 (11) 4.9 (2)

Developments

1,108 926 27 2.5 2 20 – 8 85 93

Developments

0.0 n/a 5.3 n/a

Total Central London 6,699 6,218 62 1.0 302 294 307 296 452 427

Total Central London

4.4 40 5.5 12

Major retail

Shopping centres 1,977 1,226 81 4.3 156 131 186 121 188 122

Shopping centres

7.2 (51) 7.7 (31)

Outlets 626 605 4 0.5 51 57 48 48 52 49

Outlets

6.3 – 6.9 (7)

Total Major retail 2,603 1,831 85 3.4 207 188 234 169 240 171

Total Major retail

7.0 (33) 7. 5 (22)

Mixed-use urban

London 190 191 (18) (8.1) 11 17 10 11 14 16

London

4.3 18 6.6 8

Major regional cities

599 510 (24) (4.0) 43 41 37 37 49 38

Major regional cities

6.6 7 8.2 47

Total Mixed-use urban

789 701 (42) (5.0) 54 58 47 48 63 54

Total Mixed-use urban

5.9 8 7.7 36

Subscale sectors

Leisure 423 423 (5) (1.2) 44 48 44 46 41 42

Leisure

7.8 (94) 8.8 (8)

Hotels – 400 – – 2 35 – 35 – 29

Retail parks

6.1 9 6.7 (24)

Retail parks

366 390 19 5.4 27 30 25 27 27 29

Total Subscale sectors

7.0 (51) 7.7 (22)

Total Subscale sectors 789 1,213 14 1.8 73 113 69 108 68 100

Combined Portfolio

5.4 14 6.3 3

Combined Portfolio 10,880 9,963 119 1.1 636 653 657 621 823 752

Properties treated as finance leases – – – – (1) (1)

Represented by:

Combined Portfolio 10,880 9,963 119 1.1 635 652

Investment portfolio

5.4 n/a 6.3 n/a

Share of joint ventures

5.8 n/a 6.2 n/a

Represented by:

Combined Portfolio

5.4 n/a 6.3 n/a

Investment portfolio 10,244 9,347 106 1.1 585 613 575 584 735 712

Share of joint ventures 636 616 13 2.2 50 39 82 37 88 40

Combined Portfolio 10,880 9,963 119 1.1 635 652 657 621 823 752

COMBINED PORTFOLIO ANALYSIS

LANDSEC ANNUAL REPORT 2025 165

TOTAL PORTFOLIO ANALYSIS TOTAL PORTFOLIO ANALYSIS CONTINUED

TABLE 72

Notes

1. Refer to Glossary for definition.

2. Annualised rental income is annual ‘rental income’ (as defined in

the Glossary) at the balance sheet date, except that car park and

commercialisation income are included on a net basis (after

deduction for operational outgoings). Annualised rental income

includes temporary lettings.

3. Net estimated rental value is gross estimated rental value, as

defined in the Glossary, after deducting expected rent payable.

4. Net initial yield – refer to Glossary for definition. This calculation

includes all properties including those sites with no income.

5. Equivalent yield – refer to Glossary for definition. Future

developments are excluded from the calculation of equivalent

yield on the Combined Portfolio.

6. Comprises the development pipeline – refer to Glossary for

definition.

7. The like-for-like portfolio – refer to Glossary for definition.

8. The prior year data has been represented to align with the

updated categories disclosed.

9. Includes owner-occupied property.

10. Includes non-current assets held-for-sale.

11. Short-term commercialisation income from Piccadilly Lights has

been included in the current year disclosure and to ensure year-

on-year alignment the comparatives have been updated by £15m.

Market value

Valuation movement

Rental income

Annualised

rental income

Net estimated

rental value

Net initial yield

Equivalent yield

31 March

2025

£m

31 March

2024

£m

Surplus/

(deficit)

£m

Surplus/

(deficit)

31 March

2025

£m

31 March

2024

£m

31 March

2025

£m

31 March

2024

£m

31 March

2025

£m

31 March

2024

£m

31 March

2025

Movement

in like-

for-like

bps

31 March

2025

Movement

in like-

for-like

bps

Central London

West End offices 3,124 3,109 17 0.6 162 148 164 160 202 186

West End offices

4.6 36 5.4 14

City offices 1,445 1,192 20 1.4 80 68 85 70 111 93

City offices

4.2 89 6.2 13

Retail and other

1,022 991 (2) (0.2) 58 58 58 58 54 55

Retail and other

4.3 (11) 4.9 (2)

Developments

1,108 926 27 2.5 2 20 – 8 85 93

Developments

0.0 n/a 5.3 n/a

Total Central London 6,699 6,218 62 1.0 302 294 307 296 452 427

Total Central London

4.4 40 5.5 12

Major retail

Shopping centres 1,977 1,226 81 4.3 156 131 186 121 188 122

Shopping centres

7.2 (51) 7.7 (31)

Outlets 626 605 4 0.5 51 57 48 48 52 49

Outlets

6.3 – 6.9 (7)

Total Major retail 2,603 1,831 85 3.4 207 188 234 169 240 171

Total Major retail

7.0 (33) 7. 5 (22)

Mixed-use urban

London 190 191 (18) (8.1) 11 17 10 11 14 16

London

4.3 18 6.6 8

Major regional cities

599 510 (24) (4.0) 43 41 37 37 49 38

Major regional cities

6.6 7 8.2 47

Total Mixed-use urban

789 701 (42) (5.0) 54 58 47 48 63 54

Total Mixed-use urban

5.9 8 7.7 36

Subscale sectors

Leisure 423 423 (5) (1.2) 44 48 44 46 41 42

Leisure

7.8 (94) 8.8 (8)

Hotels – 400 – – 2 35 – 35 – 29

Retail parks

6.1 9 6.7 (24)

Retail parks

366 390 19 5.4 27 30 25 27 27 29

Total Subscale sectors

7.0 (51) 7.7 (22)

Total Subscale sectors 789 1,213 14 1.8 73 113 69 108 68 100

Combined Portfolio

5.4 14 6.3 3

Combined Portfolio 10,880 9,963 119 1.1 636 653 657 621 823 752

Properties treated as finance leases – – – – (1) (1)

Represented by:

Combined Portfolio 10,880 9,963 119 1.1 635 652

Investment portfolio

5.4 n/a 6.3 n/a

Share of joint ventures

5.8 n/a 6.2 n/a

Represented by:

Combined Portfolio

5.4 n/a 6.3 n/a

Investment portfolio 10,244 9,347 106 1.1 585 613 575 584 735 712

Share of joint ventures 636 616 13 2.2 50 39 82 37 88 40

Combined Portfolio 10,880 9,963 119 1.1 635 652 657 621 823 752

LANDSEC ANNUAL REPORT 2025166

ADDITIONAL INFORMATION

RECONCILIATION OF SEGMENTAL INFORMATION NOTE TO STATUTORY REPORTING FOR THE YEAR ENDED 31 MARCH 2024

TABLE 73

Year ended 31 March 2024

Group

income

statement

£m

Joint

ventures

£m

Adjustment for

non-wholly

owned

subsidiaries

£m

Total

£m

EPRA

earnings

£m

Capital

and other

items

£m

Rental income 622 38 (8) 652 652 –

Finance lease interest 1 – – 1 1 –

Gross rental income (before rents payable) 623 38 (8) 653 653 –

Rents payable (11) (1) – (12) (12) –

Gross rental income (after rents payable) 612 37 (8) 641 641 –

Service charge income 117 8 (2) 123 123 –

Service charge expense (133) (9) 3 (139) (139) –

Net service charge expense (16) (1) 1 (16) (16) –

Other property related income 35 3 – 38 38 –

Direct property expenditure (114) (6) 1 (119) (119) –

Movement in bad and doubtful debt provision 6 – – 6 6 –

Segment net rental income 523 33 (6) 550 550 –

Other income 1 – – 1 1 –

Administrative expenses (73) (1) – (74) (74) –

Depreciation, including amortisation of software (4) – – (4) (4) –

EPRA earnings before interest 447 32 (6) 473 473 –

Share of post-tax loss from joint ventures 2 (2) – – – –

Loss on disposal of investment properties

(16) – – (16) – (16)

Net deficit on revaluation of investment properties (628) (19) 22 (625) – (625)

Net development contract and transaction expenditure (18) – – (18) – (18)

Fair value gain on remeasurement of investment 3 – – 3 – 3

Impairment of amounts due from joint ventures (2) – – (2) – (2)

Impairment of goodwill (1) – – (1) – (1)

Impairment of trading properties (11) – – (11) – (11)

Depreciation (2) – – (2) – (2)

Other costs (1) – – (1) – (1)

Operating (loss)/profit (227) 11 16 (200) 473 (673)

Finance income 12 – – 12 11 1

Finance expense (126) (11) 6 (131) (113) (18)

(Loss)/profit before tax (341) – 22 (319) 371 (690)

Taxation – – – –

(Loss)/profit for the year (341) – 22 (319)

1. Reallocation of the share of post-tax profit from joint ventures reported in the Group income statement to the individual line items reported in the segmental results table.

2. Removal of the non-wholly owned share of results of the Group’s subsidiaries. The non-wholly owned subsidiaries are consolidated at 100% in the Group’s income

statement, but only the Group’s share is included in EPRA earnings reported in the segmental results table. The non-owned element of the Group’s subsidiaries is included

in the ‘Capital and other items’ column presented in the Group’s income statement, together with items not directly related to the underlying rental business such as

investment properties valuation changes, profits or losses on the disposal of investment properties, the proceeds from, and costs of, the sale of trading properties, income

from and costs associated with development contracts, amortisation and impairment of intangibles, and other attributable costs, arising on business combinations.

3. Included in the loss on disposal of investment properties is a £2m charge related to the provision for fire safety remediation works on properties no longer owned by the

Group but for which the Group is responsible for remediating under the Building Safety Act 2022.

RECONCILIATION OF SEGMENTAL INFORMATION NOTE TO STATUTORY REPORTING

LANDSEC ANNUAL REPORT 2025 167

INCOME STATEMENT

TABLE 74

Year ended and as at 31 March

2025

£m

2024

£m

2023

£m

2022

£m

2021

£m

2020

£m

2019

£m

2018

£m

2017

£m

2016

£m

Revenue 842 824 791 679 635 741 757 830 781 936

Costs (429) (409) (382) (308) (333) (274) (271) (321) (260) (404)

413 415 409 371 302 467 486 509 521 532

Share of post-tax profit/(loss) from

joint ventures

37 2 (1) 33 (192) (151) (85) 27 69 199

(Loss)/profit on disposal of investment

properties

(15) (16) (144) 107 8 (6) – 1 19 75

Profit/(loss) on disposal of investments

in joint ventures

– – – 2 – – – 66 (2) –

Profit on disposal of other investments – – – – – – – – 13 –

Net surplus/(deficit) on revaluation

ofinvestment properties

91 (628) (827) 416 (1,448) (1,000) (441) (98) (186) 739

(Loss)/gain on changes infinance leases

– – (6) 6 – – – – – –

Operating profit/(loss) 526 (227) (569) 935 (1,330) (690) (40) 505 434 1,545

Net finance expense (133) (114) (53) (60) (63) (147) (83) (548) (268) (185)

Profit/(loss) before tax 393 (341) (622) 875 (1,393) (837) (123) (43) 166 1,360

Taxation 3 – – – – 5 4 (1) 1 2

Profit/(loss) for the year 396 (341) (622) 875 (1,393) (832) (119) (44) 167 1,362

Net surplus/(deficit) on revaluation

ofinvestment properties

Investment portfolio 91 (628) (827) 416 (1,448) (998) (440) (98) (187) 736

Share of joint ventures 13 (19) (30) (3) (198) (181) (117) 7 40 171

Adjustment for non-wholly owned

subsidiaries

3 22 9 (4) – – – – – –

Total 107 (625) (848) 409 (1,646) (1,179) (557) (91) (147) 907

EPRA earnings 374 371 393 355 251 414 442 406 382 362

Results per share

Total dividend payable in respect

ofthefinancial year

40.4p 39.6 p 38.6p 3 7.0 p 2 7.0 p 23.2p 45.55p 44.2p 38.55p 35.0p

Basic earnings/(loss) per share 53.3p (43.0)p (83.6)p 1 1 7. 4 p (188.2)p (112.4)p (16.1)p (5.8)p 21.1p 172.4p

Diluted earnings/(loss) per share 53.0p (43.0)p (83.6)p 1 1 7. 1 p (188.2)p (112.4)p (16.1)p (5.8)p 21.1p 171.8p

EPRA earnings per share 50.3p 50.1p 53.1p 48.0p 33.9p 55.9p 59.7p 53.1p 48.4p 45.9p

EPRA diluted earnings per share 50.1p 50.1p 53.1p 4 7. 8 p 33.9p 55.9p 59.7p 53.1p 48.3p 45.7p

Net assets per share 877p 863p 945p 1,070p 975p 1,182p 1,341p 1,404p 1,418p 1,434p

Diluted net assets per share 872p 859p 942p 1,067p 973p 1,181p 1,339p 1,404p 1,416p 1,431p

EPRA Net Tangible Assets pershare 874p 859p 936p 1,063p 985p 1,192p 1,348p 1,410p 1,422p 1,433p

1. Includes our non-wholly owned subsidiaries on a proportionate basis.

2. This represents the non-controlling interest share in MediaCity during the periods we did not own this 100% but consolidated it in the Group numbers.

TEN-YEAR SUMMARY

LANDSEC ANNUAL REPORT 2025168

ADDITIONAL INFORMATION

TEN-YEAR SUMMARY

CONTINUED

BALANCE SHEET

TABLE 75

As at 31 March

2025

£m

2024

£m

2023

£m

2022

£m

2021

£m

2020

£m

2019

£m

2018

£m

2017

£m

2016

£m

Investment properties 10,034 9,330 9,658 11,207 9,607 11,297 12,094 12,336 12,144 12,358

Property, plant and equipment 42 7 – – – – – – – –

Intangible assets 3 3 6 8 8 14 20 34 36 38

Net investment in finance leases 19 21 21 70 152 156 159 162 165 183

Investment in joint ventures 551 529 533 700 625 824 1,031 1,151 1,734 1,668

Investment in associates – – 3 4 – – – – – –

Trade and other receivables 229 159 146 177 170 178 176 165 123 86

Other non-current assets 22 41 67 61 22 32 30 49 51 44

Total non-current assets 10,900 10,090 10,434 12,227 10,584 12,501 13,510 13,897 14,253 14,377

Trading properties and long-term

development contracts

81 100 118 145 36 24 23 24 122 124

Trade and other receivables 467 379 365 368 354 433 437 471 418 445

Monies held in restricted accounts

and deposits

20 6 4 22 10 9 36 15 21 19

Cash and cash equivalents 39 78 41 128 – 1,345 14 62 30 25

Other current assets 4 11 4 5 6 48 14 – – –

Non-current asset held-for-sale 110 – – – – – – – – –

Total current assets 721 574 532 668 406 1,859 524 572 591 613

Borrowings (752) (975) (315) (541) (906) (977) (934) (872) (404) (19)

Trade and other payables (406) (348) (306) (320) (252) (270) (273) (294) (302) (289)

Provisions (44) (30) – – – – – – – –

Other current liabilities (6) – (24) (11) (7) (2) (18) (14) (7) (19)

Total current liabilities (1,208) (1,353) (645) (872) (1,165) (1,249) (1,225) (1,180) (713) (327)

Borrowings (3,802) (2,805) (3,223) (4,012) (2,610) (4,355) (2,847) (2,858) (2,859) (3,222)

Trade and other payables (44) (4) (17) (8) (1) (1) (1) – (25) (28)

Provisions (30) (42) – – – – – – – –

Other non-current liabilities (5) (13) (9) (12) (2) (5) (5) (8) (9) (47)

Redemption liability – – – – – – (36) (37) (36) (35)

Total non-current liabilities (3,881) (2,864) (3,249) (4,032) (2,613) (4,361) (2,889) (2,903) (2,929) (3,332)

Net assets 6,532 6,447 7,07 2 7,9 91 7,2 12 8,750 9,920 10,386 11,202 11,331

Net debt

(4,303) (3,496) (3,348) (4,254) (3,509) (3,942) (3,747) (3,654) (3,219) (3,229)

Market value of the

CombinedPortfolio

10,880 9,963 10,239 12,017 10,791 12,781 13,750 14,103 14,439 14,471

Adjusted net debt

(4,304) (3,517) (3,287) (4,179) (3,489) (3,926) (3,737) (3,652) (3,261) (3,239)

1. Net debt and adjusted net debt exclude amounts payable under head leases for reporting periods from, and including, the year ended 31 March 2022. Net debt and

adjusted net debt for prior periods included in the table above have not been restated, but would have excluded amounts payable under head leases of £61m (2021),

£30m (2020 and 2019), £31m (2018 and 2017), £14m (2016) and £17m (2015).

LANDSEC ANNUAL REPORT 2025 169

As at 31 March 2025, the Company had

a 100% interest, direct or indirect, in the

ordinary share capital of the following

subsidiaries, all of which are registered in the

UK at 100 Victoria Street, London, SW1E 5JL,

except for entities with a footnote indicating

their country of registration and address.

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

B.M. COM. Lease Extension LLP

Barrack Close Limited

Beyond Green Developments (Broadland)

Limited

Blueco Limited

Bluewater Outer Area Limited

Bluewater Two Limited

Burlington House Developments Limited

Castleford (UK) Limited

Cathedral (Brighton) Limited

Cathedral (Bromley 2) Limited

Cathedral (Bromley Esco) Limited

Cathedral (Bromley) Limited

Cathedral (Greenwich Beach) Limited

Cathedral (Preston Barracks) Limited

Central Research Laboratory (Hayes) Limited

Cathedral (Sittingbourne) Limited

Dashwood House Limited

Deadhare Limited

Development Securities (Curzon Park) Limited

Development Securities (Edgware Road No.1)

Limited

Development Securities (Furlong) Limited

Development Securities (Greenwich) Limited

Development Securities (Hammersmith)

Limited

Development Securities (HDD) Limited

Development Securities (Ilford) Limited

Development Securities (Investment

Ventures) Limited

Development Securities (Investments)

Limited

Development Securities (Launceston) Limited

Development Securities (No.22) Limited

Development Securities (Romford) Limited

Development Securities (Sevenoaks) Limited

Development Securities (Slough) Limited

Development Securities Estates Limited

Dock 10 Limited

DS Investment Properties LLP

DS Jersey (Capital Partners) Limited

DS Jersey (Notting Hill) Limited

DS Renewables LLP

EPD Buckshaw Village Limited

Greenhithe Holdings Limited

Greenwitch Limited

Gunwharf Quays Limited

HDD Didcot Limited

HDD Lawley Village Limited

Kingsland Shopping Centre Limited

L.& P. Estates Limited

Land Securities (Finance) Limited

Land Securities Buchanan Street

Developments Limited

Land Securities Capital Markets PLC

Land Securities Development Limited

Land Securities Ebbsfleet Limited

Land Securities Insurance Limited

Land Securities Intermediate Limited

Land Securities Lakeside Limited

10,11

Land Securities Management Limited

Land Securities Management Services Limited

Land Securities Partnerships Limited

Land Securities Pensions Trustee Limited

Land Securities PLC

Land Securities Portfolio Management Limited

Land Securities Properties Limited

Land Securities Property Holdings Limited

Land Securities SPV’S Limited

Land Securities Trading Limited

Land Securities Trinity Limited

Landsec 1 Limited

Landsec 2 Limited

Landsec 5 Limited

Landsec 7 Limited

Landsec 8 Limited

Landsec 9 Limited

Landsec 10 Limited

Landsec 11 Limited

Landsec 12 Limited

Landsec 13 Limited

Landsec 14 Limited

Landsec 15 Limited

Landsec 16 Limited

Landsec 17 Limited

Landsec 18 Limited

Landsec 19 Limited

Landsec 20 Limited

Landsec 21 Limited

Company name Company name

LANDSEC ANNUAL REPORT 2025170

ADDITIONAL INFORMATION

Landsec 22 Limited

Landsec 23 Limited

Landsec Investment Services Limited

Landsec Limited

Landsec U and I Developer Limited

Landsec Workplace Developer Limited

LC25 Limited

Leisure II (West India Quay LP) Shareholder

Limited

Leisure II (West India Quay Two) Limited

Leisure II (West India Quay) Limited

Leisure Parks I Limited

Leisure Parks II Limited

Liverpool Property Investments Limited

Liverpool One GP Limited

Liverpool One Residential GP Limited

LS (Jaguar) GP Investments Limited

LS 1 New Street Square Developer Limited

LS 1 Sherwood Street Developer Limited

LS 1 Sherwood Street Limited

LS 123 Victoria Street Limited

LS 21 Moorfields Development Management

Limited

LS 60-78 Victoria Street Limited

LS 62 Buckingham Gate Limited

LS Aberdeen Limited

LS Aldersgate Limited

LS Banbridge Phase Two Limited

LS Bexhill Limited

LS Bluewater Investments Limited

LS Bracknell Limited

LS Braintree Limited

LS Brighton Marina Limited

LS Buchanan Limited

LS Canterbury Limited

LS Cambridge Limited

LS Cardiff (GP) Investments 2 Limited

LS Cardiff (GP) Investments Limited

LS Cardiff 2 Limited

LS Cardiff Holdings Limited

LS Cardiff Limited

LS Cardinal Limited

LS Chadwell Heath Limited

LS Chesterfield Limited

LS City Gate House Limited

LS Company 33 Limited

LS Company 34 Limited

LS Company 35 Limited

LS Company 36 Limited

LS Company 37 Limited

LS Company 38 Limited

LS Company 39 Limited

LS Company Secretaries Limited

LS Denman Street Residential Limited

LS Development Holdings Limited

LS Director Limited

LS Dundas Square Limited

LS Eastbourne Terrace Limited

LS Easton Park Development Limited

LS Easton Park Investments Limited

LS Entertainment Venues Limited

LS Ewer Street Limited

LS Finchley Road Limited

LS Forge Bankside Limited

LS Great North Finchley Limited

LS Gunwharf Limited

LS Harrogate Limited

LS Harvest 2 Limited

LS Harvest Limited

LS Hill House Developer Limited

LS Hill House Limited

LS Kings Gate Residential Limited

LS Kingsmead Limited

LS Leisure Parks Investments Limited

LS Lewisham Limited

LS Liberty of Southwark Limited

LS Liverpool Limited

LS London Holdings One Limited

LS London Holdings Three Limited

LS Media City Hotel Limited

LS Moorgate Limited

LS MYO 123 Victoria Street Limited

LS MYO Dashwood House Limited

LS Myo Limited

LS MYO New Street Square Limited

LS MYO St Pauls Limited

LS MYO The Forge Limited

LS n2 Limited

LS New Street Square Investments Limited

LS Nominees Holdings Limited

LS Nova Development Management Limited

LS Nova GP Investments Limited

LS Nova LP1 Limited

LS Nova LP2 Limited

LS Nova Place Limited

LS Occupier Limited

LS Old Broad Street Developer Limited

LS Old Broad Street Limited

LS One New Change Limited

LS Oval Limited

LS Poole Retail Limited

LS Portfolio Investments Limited

LS Portland House Developer Limited

LS Project 92 Limited

LS Property Finance Company Limited

LS QAM Limited

LS Red Lion Court Developer Limited

LS Red Lion Court Limited

LS Regent Quarter Limited

LS Regent Quarter Residential Limited

LS Retail Warehouses Limited

LS Rome Limited

LS Shepherds Bush Limited

LS Southside Limited

LS Street Limited

LS Studios Limited

LS Thanet Limited

LS Timber Square Developer Limited

LS Timber Square Limited

LS Tottenham Court Road Limited

LS Victoria Properties Limited

LS West India Quay Limited

LS Westminster Limited

LS White Rose Limited

LS Workplace Managed Services Limited

LS Xscape Castleford Limited

LS Xscape Milton Keynes Limited

LS Zig Zag Limited

Luneside East Limited

Mayfield Chapelfield Limited

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

CONTINUED

Company name Company name Company name

LANDSEC ANNUAL REPORT 2025 171

Mayfield Medlock Limited

Mayfield Poulton Limited

Mayfield Republic Limited

Media City UK Holdings Limited

Media City Development Holdings Limited

Media City Investment Holdings Limited

Media City Lightbox Limited

Media City Canalside Limited

Media City Developments Limited

Media City Residential 1 Limited

Media City Residential 2 Limited

Media City Salford Limited

Media City Residential Holdings Limited

Media City UK FM Limited

Media City Living 1 Limited

Media City Living 2 Limited

Media City UK Telecoms Limited

Njord Wind Developments Limited

Nova Developer Limited

Oriana GP Limited

OSB (Holdco 1) Limited

OSB (Holdco 2) Limited

Oxford Castle Apartments Limited

Plus X Brighton Limited

Plus X Holdings Limited

Plus X Shepherds Bush Limited

Plus X Slough Limited

Prime London Net Zero Office GP Limited

Prime London Net Zero Office LP

Prime London Net Zero Office REIT Limited

Public Private Partnership (H) Limited

Purplexed LLP

Ravenseft Properties Limited

Retail Property Holdings Trust Limited

Rivella Properties Bicester Limited

Rosefarm Leisure Limited

St David’s (Cardiff Residential) Limited

St David’s (General Partner) Limited

St. David’s (No.1) Limited

St. David’s (No.2) Limited

St. David’s Limited Partnership

The Bund Limited

The City of London Real Property Company

Limited

The Deptford Project 2 Limited

The Deptford Project Limited

The Imperial Hotel Hull Limited

The Telegraph Works Limited

The X-Leisure (General Partner) Limited

The X-Leisure Unit Trust

Tops Shop Estates Limited

Triangle Developments Limited

Triangle London Limited

U and I (8AE) Limited

U and I (Bromley Commercial) Limited

U and I (Cambridge) Limited

U and I (Development and Trading) Limited

U and I (Golf) Limited

U and I (Harwell) Limited

U and I (Innovation Hubs) Limited

U and I (PB) Commercial Limited

U and I (Pincents Lane) Limited

U and I (White Heather) Limited

U and I (WIE) Limited

U and I Company Secretaries Limited

U and I Director 1 Limited

U and I Director 2 Limited

U and I Exit Limited

U and I Finance Limited

U and I Group Limited

U and I Investment Portfolio Limited

U and I IPA Limited

U and I IPA SC Limited

U and I IPB Limited

U and I IPC Limited

U and I Netherlands B.V.

U and I Plus X TC Limited

U and I PPP Limited

Westminster Trust Limited (The)

Willett Developments Limited

X-Leisure Limited

X-Leisure Management Limited

Xscape Castleford Limited

Xscape Castleford No.2 Limited

Xscape Milton Keynes (Jersey) No.2 Limited

Xscape Milton Keynes Limited

1. Subsidiary directly held by the Company, Land

Securities Group PLC.

2. C/O William Fry, 2 Grand Canal Square, Dublin 2,

Ireland, D02 A342.

3. C/O James Cowper Kreston, The White Building,

1-4 Cumberland Place, Southampton, SO15 2NP.

4. Fifth Floor, 37 Esplanade, St. Helier, JE1 2TR, Jersey.

5. 44 Esplanade, St Helier, JE4 9WG, Jersey.

6. IFC 5, St Helier, JE1 1ST, Jersey.

7. Prins Bernhardplein 200, 1097 JB Amsterdam,

PO Box 990, 1000 AZ Amsterdam, Netherlands.

8. 85 Great Portland Street, First Floor, London,

England, W1W 7LT.

9. PO BOX 33, Dorey Court, Admiral Park, St Peter Port,

Guernsey, GY1 4AT.

10. Exempt from the requirement of the Companies Act

2006 (‘the Act’) relating to the audit of individual

accounts by virtue of Section 479A of the Act.

11. This entity was sold on 29 April 2024.

Company name Company name

LANDSEC ANNUAL REPORT 2025172

ADDITIONAL INFORMATION

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

CONTINUED

As at 31 March 2025, the Company had an interest (as shown), direct or indirect, in the ordinary share capital of the following subsidiaries,

joint ventures and associates. All entities included below are registered in the UK at 100 Victoria Street, London, SW1E 5JL, except for entities

with a footnote indicating their country of registration and address. Where the Group share of ordinary share capital is from 75% to 100%,

these entities are subsidiaries of the Company. Where the share of ordinary share capital is from 50% to 74%, these entities are joint venture

interests based on contractually agreed sharing of control with joint venturepartners. All other holdings are associate interests.

Nova Residential Intermediate

Limited

50%

Nova Residential Limited Partnership 50%

Opportunities For Sittingbourne

Limited

50%

Schofield Centre Limited

50%

Southside General Partner Limited

50%

Southside Limited Partnership

50%

Southside Nominees No.1 Limited 50%

Southside Nominees No.2 Limited 50%

Spirit of Sittingbourne LLP 65%

Tarmac Clayform Limited 50%

Tarmac Guildford Limited

50%

The Ebbsfleet Limited Partnership 50%

The Liverpool One Limited

Partnership

93.7%

The Liverpool One Residential

Limited Partnership

93.7%

TLD (Landmark Court) Limited 99%

TLD Kidbrooke LLP

50%

Triangle London Developments LLP 50%

Victoria Circle Developer Limited 50%

West India Quay Limited 50%

West India Quay Management

Company Limited

63%

Westgate Oxford Alliance GP Limited 50%

Westgate Oxford Alliance Limited

Partnership

50%

Westgate Oxford Alliance Nominee

No.1 Limited

50%

Westgate Oxford Alliance Nominee

No.2 Limited

50%

White Lion Walk Limited

50%

YC Shepherds Bush (Market) Limited 14%

YC Shepherds Bush Limited 14%

Bluewater REIT 75%

BWAT Retail Nominee (1) Limited 99%

BWAT Retail Nominee (2) Limited 99%

Cathedral (Movement, Greenwich) LLP 52%

Circus Street Developments Limited 50%

Curzon Park Limited 50%

Ebbsfleet Investment (GP) Limited

50%

Ebbsfleet Nominee No.1 Limited 50%

Harvest 2 GP Limited 50%

Harvest 2 Limited Partnership 50%

Harvest 2 Selly Oak Limited 50%

Harvest Development Management

Limited

50%

Harvest GP Limited 50%

Heart of Slough Management

Company Limited

67%

Kensington & Edinburgh Estates

(South Woodham Ferrers) Limited

50%

Landmark Court Partnership Limited 51%

Mayfield Development

(General Partner) Limited

50%

Mayfield Development Partnership LP 50%

Minevote Public Limited Company 50%

Northpoint (No.4) Limited 71%

Northpoint CH Limited 71%

Northpoint Developments Limited 71%

Northpoint KC Limited 71%

Nova Business Manager Limited 50%

Nova Estate Management Company

Limited

64%

Nova GP Limited 50%

Nova Limited Partnership 50%

Nova Nominee 1 Limited 50%

Nova Nominee 2 Limited 50%

Nova Residential (GP) Limited 50%

Lightbox (MediaCityUK)

Management Company Limited

n/a

Liverpool One Management Company

Limited

n/a

Lovibond Lane Management

Company Limited

n/a

Mayfield Estate Management

Company Limited

n/a

No.1 MediaCity UK Management

Company Limited

n/a

Preston Barracks Management

Company Limited

n/a

St David’s Dewi Sant Merchant's

Association Limited

n/a

The Heart (Mediacity) Management

Company Limited

n/a

The Old Vinyl Factory Management

Company Limited

n/a

BWAT Retail Property Trust Fund

99%

Urban Retail III (Liverpool) Unit Trust

100%

Green Leaf ZB 2018 Unit Trust

100%

Regent Quarter Unit Trust

100%

Trematon Property Unit Trust 100%

West India Quay Unit Trust

50%

Xscape Castleford Property

UnitTrust

100%

Xscape Milton Keynes Property

UnitTrust

100%

1. IFC 5, St Helier, JE1 1ST, Jersey.

2. 26 New Street, St Helier, JE2 3RA, Jersey.

3. Ground Floor T3 Trinity Park, Bickenhall Lane,

Birmingham.

4. Bruce Kenrick House, 2 Killick Street, London,

N1 9FL, England.

5. c/o Pavilion Trustees Limited, 47 Esplanade,

St Helier, Jersey, JE1 0BD, Jersey.

6. IFC 1,St. Helier, Jersey, JE2 3BX.

7. 50, La Colomberie, St Helier, JE24QB, Jersey.

8. Exempt from the requirement of the Companies Act

2006 (‘the Act’) relating to the audit of individual

accounts by virtue of Section 479A of the Act.

Company name Group share % Company name Group share % Limited by guarantee Group share %

Unit Trusts Group share %

LANDSEC ANNUAL REPORT 2025 173

ANNUAL GENERAL MEETING ANDORDINARYSHARES

The Annual General Meeting is due to be held at 10.00am on Thursday

10 July 2025 at 80 Victoria Street, London SW1E 5JL. The Notice of

Meeting can be found on our website: landsec.com/agm.

The Company’s Annual Report, results announcements and

presentations and other shareholder information can be viewed

on the website: landsec.com/investors.

DIVIDENDS

Our final dividend for FY2024/25 will be paid on 25 July 2025 to

shareholders on the register on 13 June 2025.

Whilst Landsec’s dividend policy in recent years has been to distribute

three quarterly dividends, followed by a final dividend, the Board has

approved the move to half yearly payments with effect from financial

year 2025/26. This move will align Landsec to peers and our financial

reporting timeline in addition to simplifying the administration.

All shareholders (including those from overseas) are required to have

their dividends paid directly into their personal bank or building society

account or alternatively sign up to our Dividend Reinvestment Plan

(see below). Shareholders who have not already done so should

contact Equiniti or complete a mandate instruction available on

our website landsec.com/investorsshareholders-equity-investors/

dividend-information and return it to Equiniti or send it directly to

Equiniti on Shareview: shareview.co.uk.

Further information on UK REITs and the forms required to be

completed to apply for PIDs to be paid gross are available from the

Registrar or the Landsec website: landsec.com/investorsshareholders-

equity-investors/uk-reit-regime-and-dividends.

Payments to overseas accounts are enabled via the Equiniti Overseas

Payment Service (OPS) provided by Citibank. Please contact Equiniti

on +44 (0)371 384 2030 for an OPS application form which can also be

downloaded from shareview.co.uk.

The DRIP provides shareholders with the opportunity to use cash

dividends to increase their shareholding in Landsec. It is a convenient

and cost-effective facility provided by Equiniti Financial Services

Limited. Under the DRIP, cash dividends are automatically used to

purchase shares in the market as soon as possible after the dividend

payment. Any residual cash will be carried forward to the next

dividend payment. Details of the DRIP, including terms and conditions

and participation election forms, are available on our website:

landsec.com/investorsshareholders-equity-investors/dividend-

reinvestment-plan-drip.

SHAREHOLDER DETAIL CHANGES AND SHARE DEALING FACILITY

Our Registrar, Equiniti, can assist with queries regarding

administration of shareholdings, such as bank account payment

details, dividends, lost share certificates, change of address or

personal details, and amalgamation of accounts. Equiniti also provide

existing and prospective UK shareholders with an easy to use online,

telephone and post share dealing facility. The online and telephone

dealing service allows shareholders to trade ‘real-time’ at a known

price that will be given to them at the time they give their instruction.

For full details of these services and how to contact Equiniti please see

landsec.com/investors.

ELECTRONIC COMMUNICATIONS

We encourage shareholders to consider receiving their

communications electronically enabling you to receive them more

quickly and securely, whilst supporting Landsec’s sustainability

commitment by communicating in a more environmentally

friendly and cost-effective manner. Registration for electronic

communications is available on shareview.co.uk.

SHAREGIFT

Shareholders with a small number of shares, the value of which would

make them uneconomic to sell, may wish to consider donating them

to a charity through ShareGift, a registered charity (No. 1052686)

which specialises in using such holdings for charitable benefit.

A ShareGift donation form can be obtained from Equiniti; for further

information see sharegift.org.uk or email: help@sharegift.org.

SHAREHOLDER SECURITY

Landsec is required by law to make its share register available on

request to other organisations. This may result in the receipt of

unsolicited mail. To limit this, shareholders may register with the

Mailing Preference Service. For more information, or to register, visit

mpsonline.org.uk. Shareholders are also advised to be vigilant in

regard to share fraud which includes telephone calls offering free

investment advice or offers to buy and sell shares at discounted

or highly inflated prices. Further information can be found on the

Financial Conduct Authority’s website: fca.org.uk/scams or by calling

the FCA Consumer Helpline on 0800 111 6768.

SHARE REGISTER ANALYSIS AS AT 31 MARCH 2025

TABLE 76

Type of holder:

Number of

shareholders

% of total

shareholders

Number of

% of total

Private shareholders 6,641 84.00 6,954,281 0.93

Nominee and

institutional investors

1,265 16.00 744,777,783 99.07

Total 7,906 100 751,732,064 100

Size of holding

(number of ordinary shares)

1–1,000 5,249 66.39 1,821,885 0.24

1,001–5,000 1,540 19.4 8 3,159,979 0.42

5,001–10,000 252 3.19 1,759,723 0.23

10,001–50,000 349 4.41 8,5 07,2 36 1.13

50,001–100,000 108 1.37 7,70 4 ,8 3 4 1.02

100,001–500,000 217 2.74 51,013,257 6.79

500,001–highest

191 2.42 677,765,150 90.17

Total 7,906 100 751,732,064 100

1. Including 6,789,236 shares held in treasury by the Company.

DATA PROTECTION

A copy of our Shareholder Privacy Notice can be found on our website:

landsec.com/policies/privacy-policy/shareholders.

SHAREHOLDER INFORMATION

LANDSEC ANNUAL REPORT 2025174

ADDITIONAL INFORMATION

KEY CONTACTS AND ADVISERS

REGISTERED OFFICE AND PRINCIPAL UK ADDRESS

Land Securities Group PLC

100 Victoria Street

London SW1E 5JL

Registered in England and Wales

Company No. 4369054

Telephone: +44 (0)20 7413 9000

landsec.com

COMPANY SECRETARY

Marina Thomas

Company Secretary

shareholderenquiries@landsec.com

INVESTOR RELATIONS

Edward Thacker

Head of Investor Relations

enquiries@landsec.com

REGISTRAR

Equiniti

Aspect House

Spencer Road

Lancing

West Sussex BN99 6DA

Telephone: +44 (0)371 384 2128

If calling from outside the UK, please ensure the country code is used.

For deaf and speech impaired customers, Equiniti welcome calls

via Relay UK. Please see relayuk.bt.com for more information.

shareview.co.uk

AUDITOR

Ernst & Young LLP

1 More London Place

London SE1 2AF

Telephone: +44 (0)20 7951 2000

ey.com

EXTERNAL ADVISERS

Principal valuers: CBRE and JLL

Financial advisers: UBS, Robey Warshaw

Solicitors: Slaughter and May

Brokers: UBS, Deutsche Numis, Barclays

LANDSEC ANNUAL REPORT 2025 175

Adjusted net cash inflow from

operatingactivities

Net cash inflow from operating activities including

the Group’s share of our joint ventures’ net cash

inflow from operating activities.

Adjusted net debt

Net debt excluding cumulative fair value

movements on interest-rate swaps and amounts

payable under head leases. It generally includes

the net debt of subsidiaries and joint ventures

on a proportionate basis.

Combined Portfolio

The Combined Portfolio comprises the investment

properties, owner-occupied property and

non-current assets held-for-sale of the Group’s

subsidiaries, on a proportionately consolidated

basis when not wholly owned, together with

our share of investment properties held in our

joint ventures.

Developments/development pipeline

Development pipeline consists of future

developments, committed developments,

projects under construction and developments

which have reached practical completion within

the last two years but are not yet 95% let.

Development gross yield on total

developmentcost

Gross ERV, before adjustment for lease incentives,

divided by total development cost. Gross ERV

reflects Landsec’s or the valuer’s view of expected

ERV at completion of the scheme.

EPRA earnings

Profit before tax, excluding profits on the sale of

non-current assets and trading properties, profits

on development contracts, valuation movements,

fair value movements on interest-rate swaps and

similar instruments used for hedging purposes,

debt restructuring charges, and any other items

of an exceptional nature.

EPRA loan-to-value (LTV)

Ratio of adjusted net debt, including net payables,

to the sum of the net assets, including net

receivables, of the Group, its subsidiaries and joint

ventures, all on a proportionate basis, expressed

as a percentage. The calculation includes trading

properties at fair value and debt at nominal value.

EPRA net disposal value (NDV) per share

Diluted net assets per share adjusted to remove

the impact of goodwill arising as a result of

deferred tax, and to include the difference

between the fair value and the book value of

the net investment in tenant finance leases

and fixed interest rate debt.

EPRA net initial yield

EPRA net initial yield is defined within EPRA’s

Best Practice Recommendations as the annualised

rental income based on the cash rents passing

at the balance sheet date, less non-recoverable

property operating expenses, divided by the gross

market value of the property. It is consistent with

the net initial yield calculated by the Group’s

external valuer.

EPRA Net Reinstatement Value (NRV) per share

Diluted net assets per share adjusted to remove

the cumulative fair value movements on interest-

rate swaps and similar instruments, the carrying

value of deferred tax on intangible assets and to

include the difference between the fair value and

the book value of the net investment in tenant

finance leases and add back purchasers’ costs.

EPRA Net Tangible Assets (NTA) per share

Diluted net assets per share adjusted to remove

the cumulative fair value movements on interest-

rate swaps and similar instruments, the carrying

value of goodwill arising as a result of deferred

tax and other intangible assets, deferred tax on

intangible assets and to include the difference

between the fair value and the book value of the

net investment in tenant finance leases.

Equivalent yield

Calculated by the Group’s external valuer,

equivalent yield is the internal rate of return from

an investment property, based on the gross outlays

for the purchase of a property (including purchase

costs), reflecting reversions to current market

rent and such items as voids and non-recoverable

expenditure but ignoring future changes in capital

value. The calculation assumes rent is received

annually in arrears.

ERV – Gross estimated rental value

The estimated market rental value of lettable

space as determined biannually by the Group’s

external valuer. For investment properties in the

development programme, which have not yet

reached practical completion, the ERV represents

management’s view of market rents.

Gearing

Total borrowings, including bank overdrafts, less

short-term deposits, corporate bonds and cash, at

book value, plus cumulative fair value movements

on financial derivatives as a percentage of total

equity. For adjusted gearing, see note 22.

Gross market value

Market value plus assumed usual purchaser’s costs

at the reporting date.

Interest Cover Ratio (ICR)

A calculation of a company’s ability to meet its

interest payments on outstanding debt. It is

calculated using EPRA earnings before interest,

divided by net interest (excluding the mark-to-

market movement on interest-rate swaps, foreign

exchange swaps, capitalised interest and interest

on the pension scheme assets and liabilities).

The calculation excludes joint ventures.

Investment portfolio

The investment portfolio comprises the investment

properties of the Group’s subsidiaries on a

proportionately consolidated basis where not

wholly owned.

Lease incentives

Any incentive offered to occupiers to enter into

a lease. Typically, the incentive will be an initial

rent-free period, or a cash contribution to fit-out

or similar costs. For accounting purposes, the value

of the incentive is spread over the non-cancellable

life of the lease.

Like-for-like portfolio

The like-for-like portfolio includes all properties

which have been in the portfolio since 1 April 2023

but excluding those which are acquired or sold

since that date. Properties in the development

pipeline and completed developments are also

excluded.

Loan-to-value (LTV)

Group LTV is the ratio of adjusted net debt,

including subsidiaries and joint ventures, to the

sum of the market value of investment properties

and the book value of trading properties of the

Group, its subsidiaries and joint ventures, all on

a proportionate basis, expressed as a percentage.

For the Security Group, LTV is the ratio of net debt

lent to the Security Group divided by the value of

secured assets.

Market value

Market value is determined by the Group’s external

valuer, in accordance with the RICS Valuation

Standards, as an opinion of the estimated amount

for which a property should exchange on the date

of valuation between a willing buyer and a willing

seller in an arm’s-length transaction after proper

marketing.

Net initial yield

Net initial yield is a calculation by the Group’s

external valuer of the yield that would be received

by a purchaser, based on the Estimated Net

Rental Income expressed as a percentage of the

acquisition cost, being the market value plus

assumed usual purchasers’ costs at the reporting

date. The calculation is in line with EPRA guidance.

Estimated Net Rental Income is determined by the

valuer and is based on the passing cash rent less

rent payable at the balance sheet date, estimated

non-recoverable outgoings and void costs including

service charges, insurance costs and void rates.

Net rental income

Net rental income is the net operational income

arising from properties, on an accruals basis,

including rental income, finance lease interest,

rents payable, service charge income and expense,

other property related income, direct property

expenditure and bad debts. Net rental income

is presented on a proportionate basis.

Net zero carbon building

A building for which an overall balance has been

achieved between carbon emissions produced and

those taken out of the atmosphere, including via

offset arrangements. This relates to operational

emissions for all buildings while, for a new building,

it also includes supply-chain emissions associated

with its construction.

Passing rent

The estimated annual rent receivable as at the

reporting date which includes estimates of

turnover rent and estimates of rent to be agreed

in respect of outstanding rent review or lease

renewal negotiations. Passing rent may be more

or less than the ERV (see over-rented, reversionary

and ERV). Passing rent excludes annual rent

receivable from units in administration save to

the extent that rents are expected to be received.

Void units at the reporting date are deemed to

have no passing rent. Although temporary lets of

less than 12 months are treated as void, income

from temporary lets is included in passing rents.

GLOSSARY

LANDSEC ANNUAL REPORT 2025176

ADDITIONAL INFORMATION

Property Income Distribution (PID)

A PID is a distribution by a REIT to its shareholders

paid out of qualifying profits. A REIT is required

to distribute at least 90% of its qualifying profits

as a PID to its shareholders.

Rental income

Rental income is as reported in the income

statement, on an accruals basis, and adjusted for

the spreading of lease incentives over the term

certain of the lease in accordance with IFRS 16.

It is stated gross, prior to the deduction of ground

rents and without deduction for operational

outgoings on car park and commercialisation

activities.

Reversionary or under-rented

Space where the passing rent is below the ERV.

Reversionary yield

The anticipated yield to which the initial yield will

rise (or fall) once the rent reaches the ERV.

Security Group

Security Group is the principal funding vehicle

for the Group and properties held in the Security

Group are mortgaged for the benefit of lenders.

It has the flexibility to raise a variety of different

forms of finance.

Topped-up net initial yield

Topped-up net initial yield is a calculation by the

Group’s external valuer. It is calculated by making

an adjustment to net initial yield in respect of the

annualised cash rent foregone through unexpired

rent-free periods and other lease incentives. The

calculation is consistent with EPRA guidance.

Total return on equity

Dividend paid per share in the year plus the

change in EPRA Net Tangible Assets per share,

divided by EPRA Net Tangible Assets per share

at the beginning of the year.

Total cost ratio

Total cost ratio represents all costs included within

EPRA earnings, other than rents payable, financing

costs and provisions for bad and doubtful debts,

expressed as a percentage of gross rental income

before rents payable adjusted for costs recovered

through rents but not separately invoiced.

Total development cost (TDC)

Total development cost refers to the book value of

the site at the commencement of the project, the

estimated capital expenditure required to develop

the scheme from the start of the financial year in

which the property is added to our development

programme, together with capitalised interest,

being the Group’s borrowing costs associated

with direct expenditure on the property under

development. Interest is also capitalised on

the purchase cost of land or property where it

is acquired specifically for redevelopment. The

TDC for trading property development schemes

excludes any estimated tax on disposal.

Trading properties

Properties held for trading purposes and shown

as current assets in the balance sheet.

Vacancy rates

Vacancy rates are expressed as a percentage

of ERV and represent all unlet space, including

vacant properties where refurbishment work

is being carried out and vacancy in respect of

pre-development properties, unless the scale

of refurbishment is such that the property is not

deemed lettable. The screen at Piccadilly Lights,

W1 is excluded from the vacancy rate calculation

as it will always carry advertising although the

number and duration of our agreements with

advertisers will vary.

Valuation surplus/deficit

The valuation surplus/deficit represents the increase

or decrease in the market value of the Combined

Portfolio, adjusted for net investment and the

effect of accounting for lease incentives under

IFRS 16. The market value of the Combined Portfolio

is determined by the Group’s external valuer.

Voids

Voids are expressed as a percentage of ERV and

represent all unlet space, including voids where

refurbishment work is being carried out and

voids in respect of pre-development properties.

Temporary lettings for a period of one year or less

are also treated as voids. The screen at Piccadilly

Lights, W1 is excluded from the void calculation

as it will always carry advertising although the

number and duration of our agreements with

advertisers will vary. Commercialisation lettings

are also excluded from the void calculation.

Weighted average unexpired lease term

The weighted average of the unexpired term of

all leases other than short-term lettings such as

car parks and advertising hoardings, temporary

lettings of less than one year, residential leases

and long ground leases.

GLOSSARY

CONTINUED

This Annual Report and Landsec’s website may contain certain

‘forward-looking statements’ with respect to Land Securities Group

PLC (the Company) and the Group’s financial condition, results of

itsoperations and business, and certain plans, strategy, objectives,

goals and expectations with respect to these items and the economies

and markets in which the Group operates. All statements other than

statements of historical fact are, or may be deemed to be, forward-

looking statements. Forward-looking statements are sometimes, but

not always, identified by their use of a date in the future or such words

as ‘anticipates’, ‘aims’, ‘ambition’, ‘milestones’, ‘objectives’, ‘outlook’,

‘plan’, ‘probably’, ‘project’, ‘risks’, ‘schedule’, ‘seek’, ‘due’, ‘could’,

‘may’,‘should’, ‘expects’, ‘believes’, ‘intends’, ‘plans’, ‘targets’, ‘goal’

or‘estimates’ or, in each case, their negative or other variations or

comparable terminology. Forward-looking statements are not

guarantees of future performance. By their very nature forward-

looking statements are inherently unpredictable, speculative and

involve risk and uncertainty because they relate to events and

depend on circumstances that will occur in the future. Many of these

assumptions, risks and uncertainties relate to factors that are beyond

the Group’s ability to control or estimate precisely. There are a number

of such factors that could cause actual results and developments to

differ materially from those expressed or implied by these forward-

looking statements. These factors include, but are not limited to,

changes in the political conditions, economies and markets in which

the Group operates; changes in the legal, regulatory and competition

frameworks in which the Group operates; changes in the markets

from which the Group raises finance; the impact of legal or other

proceedings against or which affect the Group; changes in accounting

practices and interpretation of accounting standards under IFRS;

changes in interest and exchange rates; and emerging and developing

ESG reporting standards.

Any forward-looking statements made in this Annual Report or

Landsec’s website, or made subsequently, which are attributable to

the Company or any other member of the Group, or persons acting

on their behalf, are expressly qualified in their entirety by the factors

referred to above. Each forward-looking statement speaks only as

of the date it is made. Except as required by its legal or statutory

obligations, the Company does not intend to update any forward-

looking statements.

Nothing contained in this Annual Report or Landsec’s website

should be construed as a profit forecast or an invitation to deal

in the securities of the Company.

LAND SECURITIES GROUP PLC

Allrightsreserved.

Landsec, Land Securities, the Cornerstone

logo and the ‘L’ logo are trade marks of the

Land Securities Group of companies.

Landsec is the trading name of Land

Securities Group PLC.

All other trade marks and registered

trade marks are the property of their

respective owners.

This report is printed on paper certified

in accordance with the FSC® (Forest

Stewardship Council®) and is recyclable

and acid-free.

Pureprint Ltd is FSC certified and ISO 14001

certified showing that it is committed

to all round excellence and improving

environmental performance is an important

part of this strategy.

Pureprint Ltd aims to reduce at source the

effect its operations have on the environment

and is committed to continual improvement,

prevention of pollution and compliance with

any legislation or industry standards.

Pureprint Ltd is a Carbon/Neutral

Printing Company.

Designed and produced by:

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CAUTIONARY STATEMENT

Landsec Annual Report 2025

HEAD OFFICE

100 Victoria Street

London

SW1E 5JL

landsec.com