Landsec dividend: cash cover and yield
MyStockButler's November 2026 analysis: Landsec’s dividend was 41.20p per share in 2026. It was covered by recurring earnings, but operating cash after interest was £214m against £290m of dividends paid, before £445m of investment-property development expenditure.
How much does Landsec pay in dividends?
For the year to March 2026, net rental income rose to £562 million and EPRA EPS reached 51.10p. Like-for-like net rental income grew 4.6%, while the dividend rose to 41.20p. Landsec is pivoting toward major retail destinations and residential development while reducing office capital. It completed the £516 million Metrocentre purchase on 29 October 2026 and raised about £500 million through an October share issue.
Landsec declared a dividend of 41.20p per share against diluted EPRA earnings of 51.10p per share. The calculated payout ratio was 80.6%, suggesting some earnings cover. But earnings record income when it is earned, while cash records when tenants pay and bills are settled.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| EPRA earnings per share | 51.10 | 50.10 | 50.10 | 53.10 | 47.80 |
| Dividend per share | 41.20 | 40.40 | 39.60 | 38.60 | 37.00 |
| Dividend payout ratio | 80.6% | 80.6% | 79.0% | 72.7% | 77.4% |
What this means. The vacancy rate measures lost rental value from empty space, not the percentage of buildings that are completely empty.
Is Landsec’s dividend covered by its cash?
Operating cash after interest was £214m in 2026, against £290m of dividends paid. That left a cash shortfall before investment-property development expenditure of £445m. Development can create future rent, so it is not automatically a maintenance burden; nevertheless, it requires money before the new leases begin paying.
Property disposals brought in £734m during the year. Landsec therefore relied on sales and other financing sources to fund the dividend and property spending alongside operating cash. The important question is whether future lease income can replace that support as development and disposals slow.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Cash from operations | 214 | 256 | 338 | 342 | 381 |
| − Dividends paid | 290 | 305 | 291 | 289 | 190 |
| = Operating cash after dividends | 47 | 53 | 191 | ||
| + Properties sold | 734 | 404 | 176 | 1,269 | 265 |
| − Development and capital spending | 445 | 456 | 328 | 355 | 344 |
What this means. In 2026 and 2025, the company paid more in dividends than its daily business generated, so it needed money from selling properties and borrowing.
What could change Landsec’s dividend?
Management guides to 3%–5% like-for-like rental growth and 51.40p EPRA EPS for the year to March 2027. It expects high-single-digit EPS growth in FY28, net debt/EBITDA below 7 times by May 2028 and potential EPRA EPS of 62p by March 2030. Its record is 4/5: one forecast was above guidance, three were within it and none was below.
| November 2027 | November 2028 | November 2029 | |
|---|---|---|---|
| EPRA earnings | 458 (424 / 473) | 490 (407 / 515) | 506 (415 / 540) |
| Shares (millions) | 828 (829 / 828) | 829 (830 / 828) | 829 (831 / 828) |
| Dividends per share | 0.41 (0.41 / 0.41) | 0.41 (0.41 / 0.41) | 0.41 (0.41 / 0.41) |
| Price to EPRA earnings | 12.00 (10.00 / 13.00) | 12.50 (9.50 / 14.00) | 13.00 (9.00 / 15.00) |