LANDSEC

ANNUAL

REPORT

2026

STRATEGIC REPORT

01 Our portfolio

02 Chief Executive’s statement

06 Market context

07 Our business model

08 Our strategy

10 Key performance indicators

11 Operating and portfolio review

16 Financial review

23 Our stakeholders

26 Our people and culture

29 Our approach to sustainability

35 TCFD statement

40 Managing risk

43 Principal risks and uncertainties

47 Going concern and viability

49 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

148 Business analysis – EPRA disclosures

154 Business analysis – Group

156 Sustainability performance

159 Alternative performance measures

160 Combined Portfolio analysis

162 Ten-year summary

164 Subsidiaries, joint ventures

andassociates

168 Shareholder information

169 Key contacts and advisers

170 Glossary

172 Cautionary statement

The past year has seen Landsec continue its strong

momentum across our places and in ourbusiness.

Alongside our strong operational performance, over

the last few years we have actively positioned our

business for a higher inflation and higher interest

rateenvironment.

With geopolitical tensions remaining elevated, these

were the right actions at the right time.

Our decisiveness in the last few years means that

wecan now make prudent, proactive decisions rather

than wait to be shaped byevents.

To always find a way is a critical part of Landsec’s DNA.

With motivated teams, underpinned with the clarity

ofour strategy, and with the right real estate in the

right places, we are confident inour ability to deliver

results in the most challenging circumstances.

We’ve honed this ability for over 80 years – continually

adapting to shape the places that meet the needs

ofachanging world.

WE EXIST BECAUSE OF

OURPLACES. OUR PLACES

ARE WHAT THEY ARE

BECAUSE OFLANDSEC.

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AT A GLANCE

STRATEGIC REPORT

OUR PORTFOLIO

Rental growth is at its fastest pace in nearly two decades.

WHO WE ARE

We are one of the leading real estate

companies in theUK. We create places

that make a lasting positive contribution

to our communities and our planet. We bring

people together, forming connections with

each other and the spaces we create.

OUR PURPOSE

Landsec is built on places that stand the test

of time. We identify and shape places that

create opportunity, enhance quality of life

and bring joy to the people connected to them:

places where life happens; where businesses

grow; and where cities are defined.

OUR PERFORMANCE

FY26 FY25

LIKE-FOR-LIKE NET RENTAL INCOME (£M)

483

462

EPRA EARNINGS (£M)

382

374

41.2

40.4

DIVIDEND PER SHARE (PENCE)

£3BN+

RESIDENTIAL-LED

PIPELINE

50% of income

LFL NRI growth 6.0%

Lettings +14% vs previous rent

41% of income

LFL NRI growth 5.5%

Lettings +15% vs previous rent

Attractive structural growth prospects

Long-term LFL NRI growth > inflation

Policy becoming more supportive

BEST-IN-CLASS

OFFICE

PORTFOLIO

LEADING UK

RETAIL

PLATFORM

NEAR TERM LONGER TERM

READ HOW WE CREATE VALUE FOR PEOPLE

THROUGH PLACES ONPAGES 7-9

A PORTFOLIO AND STRATEGY WELL-PLACED TO DELIVER SUSTAINABLE EPS GROWTH

01LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

CHIEF EXECUTIVE’S STATEMENT

WELL PLACED TO DELIVER ACCELERATION

IN EPS GROWTH IN NEAR AND MEDIUM TERM

Over the last few years, we have actively

repositioned Landsec for a higher inflation,

higher interest rate environment. Our

best-in-class portfolio, market-leading

operating platforms, and strategic discipline

means our performance has been strong,

despite the persistently elevated levels of

uncertainty and volatility in the external

environment. Although the current global

macro outlook is once again uncertain, we

are not seeing any signs of this impacting

customer demand, so the unique

combination of these three factors means

the outlook for Landsec remains positive.

The high quality of our portfolio and

operating platforms has again been evident

over the past year:

•

Our EPRA occupancy is up to 98.0%,

whichis the highest level in two decades;

•

Our like-for-like net rental income is up

4.6%, comfortably ahead of our c. 3-4%

initial guidance, which means we have

now delivered 4.0% CAGR in like-for-like

net income over the last four years;

•

Our uplifts on relettings/renewals have

almost doubled to 15%, up from 8% a year

ago, underlining the growing reversion and

hence future income growth potential

within our portfolio.

At the same time, our strategic discipline is

evident in how Landsec is positioned today:

•

Our speculative London office development

pipeline is completing over the next few

months, allowing us to capitalise on very

strong leasing demand, which will drive

significant income growth. This means our

development exposure will be less than 2%

of our portfolio in a few months’ time, with

no plans to add much to this in the next

c. 18 months, as risks around returns on

future projects are elevated;

•

Our overhead costs are down to £62m,

marking a reduction of 26% over the last

three years. This represents the lowest level

in more than 20 years and ensures our

income growth flows through to earnings

and dividends for shareholders effectively;

•

Our 8.6-year average debt maturity is

twice as long as the average for the UK

REIT sector and 89% of our debt cost is

fixed or hedged. Coupled with our low

committed development capex of £185m,

new financing requirements are modest,

which protects our earnings from

fluctuations in interest rates.

As a result of our actions, Landsec is now

positioned with a lower risk profile and

aclearer, stronger growth outlook, as

continued top line income growth will

increasingly flow through to an acceleration

in EPS growth, both in the near and

medium term:

•

For FY26, our EPRA earnings were up £8m

to £382m despite the -£7m impact from the

sale of QAM, which turned future finance

lease income into a capital receipt on sale.

This earlier than expected sale was not part

of our initial forecast, so adjusted for the

1.8% EPS impact of this, our 2.2% reported

EPS growth for the year was at the very top

end of our initial c. 2-4% guidance;

•

For FY27, we expect EPRA EPS to be stable

vs FY26, in line with our previous guidance,

as c. 4% underlying growth is offset by the

full-year impact of the sale of QAM;

•

For FY28, based on current momentum,

we expect EPRA EPS to grow by a high

single digit percentage, driven principally

by leasing up our current London office

pipeline and continuing to capture the

growing reversion in our existing portfolio;

•

For FY30, as we set out in November, we

see the potential for EPRA EPS to grow to

c. 62 pence, implying c. 5% CAGR from here.

Around 80% of this growth is derived

from our existing portfolio and platform,

as the impact of the recent rise in swap

rates is largely mitigated by our long debt

maturity. Naturally, we continue to explore

opportunities to further improve on this

growth outlook.

MARK ALLAN

CHIEF EXECUTIVE

02 LANDSEC ANNUAL REPORT 2026

FINANCIAL RESULTS

We delivered a positive set of financial results

for the year to March 2026. Our 4.6% growth

in like-for-like income and 15% reduction in

overhead costs meant our EPRA EPS was up

2.2% to 51.4 pence, despite the 1.8% impact

of the sale of QAM. This supported 2.0%

growth in dividend. Our strong leasing

activity drove an acceleration in ERV growth

to 6.4%, yet this was partly offset by some

minor yield softening and a few asset

specific movements, so overall values were

up 1.2% for the year. IFRS profit before tax

of£346m was impacted by a £74m net

losson the sale of £705m of assets which

generated little or no return, yet NTA per

share was up 0.9% for the year and 2.2%

inthe second half. As a result, our balance

sheet remains robust and with only £185m

ofcommitted development capex

remaining,no plans to add any meaningful

new development commitments in the

nextc. 18 months, and income set to grow

materially, we expect our net debt/EBITDA to

reduce to below 7x within the next two years.

OCCUPATIONAL MARKETS

Occupational markets for both office

and retail continue to be characterised by

two well established trends: a significant

concentration of demand on the very best

space coupled with heavy constraints on

newsupply. Unsurprisingly, therefore,

upward momentum in rents persists for

ourbest-in-class portfolios.

In retail, c. 85% of our assets sit in the top 1%

of retail destinations in the UK which provide

brands with access to c. 31% of national

in-store retail spend. Sales growth in our

locations has outperformed the UK national

average by 19ppt over the past four years, so

these are the destinations brands continue to

focus on in terms of investing in new stores.

Margin pressure for brands elsewhere is only

accelerating this trend. Meanwhile, new

supply is zero, as replacement costs are

roughly double existing values.

In office, our portfolio is similarly concentrated

on the very best space. We own c. 0.5% of the

c. 900m sq ft of total office space in the UK –

virtually all of which is located in the two

most highly valued locations in the country,

the West End and the City, including

Bankside. These locations tend to be highly

prized by international businesses because of

the depth of access they provide to the very

best global talent. And even within these

best locations we are outperforming, with

occupancy of 98.6% versus 93.3% for the

central London market as a whole. Again,

new supply is constrained with build cost

inflation and higher interest rates limiting

development viability, so project starts are

being deferred and rents are rising.

HIGHLIGHTS

TABLE 1

Mar 2026 Mar 2025 Change %

Net rental income (£m)

562 552 1.8

EPRA earnings (£m)

382 374 2.1

IFRS profit before tax (£m) 346 393 (12.0)

Total accounting return (%) 5.6 6.4 (0.8)

EPRA earnings per share (pence)

51.4 50.3 2.2

Dividend per share (pence) 41.2 40.4 2.0

Combined portfolio (£m)

1,2

10,836 10,880 (0.4)

EPRA Net Tangible Assets per share (pence)

882 874 0.9

Adjusted net debt (£m)

4,215 4,304 (2.1)

ND/EBITDA (period end) (x)

8.4 8.9 (5.6)

Group LTV ratio (%)

38.7 39.3 (0.6)

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.

CARDINAL PLACE, LONDON

03LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

CHIEF EXECUTIVE’S STATEMENT CONTINUED

The ongoing adoption of emerging

technologies such as AI seems increasingly

likely to act as a further accelerant of

occupiers’ focus on the very best space.

Whilst back office and processing roles are

likely to reduce, any impact of this in high

value locations in London is more than offset

by the creation of new roles (or indeed new

businesses) enabled by technology, and

newdemand from international businesses.

At our recently opened MYO King’s Cross,

forexample, nearly 80% of all lettings have

been to AI or AI adjacent businesses and the

building is on track to be virtually full only

c. 9 months after opening. In retail, brands

expect the rise of AI and agentic commerce

to put even more focus on the value of the

physical experience and consumer connection

as part of a unified commerce ecosystem,

which adds further weight to the ‘fewer,

bigger, better stores’ trend that has been

so evident over the past few years.

In an environment which is changing rapidly,

our unique and irreplaceable edge remains

clear: we have two market-leading platforms,

and our portfolio is focused firmly at the

topend of the market where the demand

from customers is strongest. Our portfolio

iseffectively full, rents are rising and our

reversionary potential is growing, so the

outlook for continued healthy like-for-like

income growth is clear.

INVESTMENT MARKETS

Supported by the strong occupational

outlook for best-in-class assets and

astabilisation in interest rate outlook,

investment activity recovered from a low

base during 2025 and accelerated towards

the end of the year and into the first few

months of 2026. In office, this was principally

focused on core-plus or value-add assets

which offer the opportunity to capture rental

growth, with increasingly larger lot sizes.

Inmajor retail, investment activity started

topick up as well, but there are still over

£3bnof assets in the hands of parties who

are not natural long-term owners, which will

likely come to market in the next year or two.

It is too early to assess what the longer-term

impact of the Middle East conflict will be

onthis growing momentum in investment

markets, yet we are mindful that the

renewed uncertainty around the outlook

forglobal interest rates could impact

investor decision-making in the near term.

That said, interest rates are just one factor

influencing capital allocation decisions,

asother factors, such as the relative return

outlook vs alternative sectors such as private

credit, the outlook for supply/demand, and

hence the conviction in future rental growth,

arguably all look more favourable than they

did c. 6-12 months ago.

WESTGATE, OXFORD

TIMBER SQUARE, LONDON

04 LANDSEC ANNUAL REPORT 2026

While portfolio rotation is an important

partof our strategy, we remain disciplined

onprice and are not reliant on investment

activity to drive growth, as we have

significant embedded growth within our

existing business. Equally, with committed

capex now down to £185m, we are not reliant

on disposals to fund any future commitments.

Indeed, even without meaningful disposals

oracquisitions, we could still deliver c. 80%

ofthe potential c. 5% CAGR in EPS by FY30

and see net debt/EBITDA fall below 7x.

CLEAR PRIORITIES IN TERMS

OFCAPITALALLOCATION

As we execute our strategy, we maintain

our clear framework for capital allocation

decisions. Alongside our view on risk, this

is based on two factors. Firstly, how our

investments contribute to income and EPS

growth in the near term, and secondly,

how they impact our portfolio mix such that

this growth can be sustained in the medium

to longer term. We prioritise investments

that deliver on both factors but beyond that,

our decisions will always seek to enhance

at least one of these, without distracting

from the other.

Based on these considerations, we sold

£705m of assets over the year. This included

£261m of retail parks where the 6.4% income

return was reasonable but income growth

was limited; a £245m 1970s office block

(QAM) which will be vacated in 2028 and

requires wholesale redevelopment; £101m of

London offices where the 4.9% income return

was modest; and £72m of pre-development

assets which had a negative in-place income

return and would have required over £400m

of capex to develop.

The clarity and focus this framework provides

continues to guide our priorities for the near

future. Growing our investment in major

retail destinations remains our highest

conviction call, given its high income yield

and the attractive income growth on offer

for the right assets. We looked at a few

acquisition opportunities over the past

12months and have decent visibility about

future opportunities, but we remain

disciplined about quality, future capex risks

and price. As such, we chose not to progress

any acquisitions during the year but remain

active in assessing future opportunities.

With £346m of disposals to date, we are

ahead of plan in terms of releasing capital

from offices. We will continue to look at

further opportunities to recycle capital

outofoffices as our assets generally score

well relative to current investor criteria

andthe upside to EPS from reinvesting

thiscapital into retail at a c. 200bps pick-up

in net effective income return and higher

like-for-like income growth is meaningful.

Based on our framework, we believe that

investment in major retail remains more

attractive than office or residential

development at this stage. Our London

officedevelopment programme will complete

in the next few months, with our recently

completed schemes now 54% let and strong

interest in the remaining space. We have

noplans to commit further capital to

speculative office development as things

stand, so our committed development

exposure will be down to £0.2bn by the end

ofthe summer, and we continue to make

progress in releasing further capital from

low/non-yielding pre-development assets.

On residential, engagement with our public

sector partners to secure policy support for our

build-to-rent projects has been encouraging

with steps such as the Government’s and GLA’s

package of acceleration measures for London

now offering potential routes to improve

development viability. As such, we will

continue to invest time in seeking to unlock

these opportunities, although capex

investments will remain very limited for now

and holding costs are low. If we are able to

secure viable returns on these projects, lead

times are such that start dates will be no

earlier than late 2027 in any event. We have

not assumed any upside from residential in

ourFY30 EPS potential, as this largely benefits

growth beyond that.

Having less capital tied up in low or non-

yielding assets not only benefits sustainable

EPS growth, but also reduces our risk profile.

As a result of this step, and based on current

leasing momentum, we now expect our

netdebt/EBITDA to reduce to below 7x over

the next two years. Maintaining our strong

capital base will always remain our first

priority, but as part of our capital allocation

framework, we also continue to monitor the

option of deploying capital in our own shares.

At present, we view investment in major

retail as more attractive from both a

near-term and longer-term perspective,

butthis will remain a consideration in our

capital allocation decisions going forward.

OUTLOOK

It has never been more important to own

the right real estate. Driven by the focus

and dedication of our highly capable teams

across our best-in-class platforms, the

operational performance across our office

and retail portfolios, which combined make

up 91% of our overall income, remains

market-leading.

This has resulted in CAGR in like-for-like net

income of 4.0% over the last four years and

as reversion is growing, this should continue

to deliver attractive income growth in the

future. With overhead cost now at a 20-year

low, a material reduction in capital employed

in low/non-yielding development, and an

average debt maturity which is the longest

in the sector, this top line growth will

increasingly flow through to an acceleration

in EPS growth over the coming years,

principally driven by our existing portfolio

and platform, which will support continued

growth in dividends.

We are mindful that global macro risks have

increased and that it is still difficult to assess

the longer-term effects of the Middle East

conflict. However, the trends which have

supported our strong operational

performance remain very much intact.

Moreover, as we are about to complete our

c. £1bn London development programme and

are making strong progress on leasing, our

business now has a lower risk profile and a

clearer, stronger growth outlook. All in all,

we see the potential to deliver c. 5% CAGR in

EPRA EPS over the next four years, including

high single digit growth in FY28. Coming on

top of our existing 5.8% income return at

NTA, this will result in an attractive total

return for shareholders.

MARK ALLAN

CHIEF EXECUTIVE

05LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

MARKET CONTEXT

The Landsec property portfolio is invested in 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.

Investment markets rebounded strongly

inthe second half of 2025. Q4 saw £2.8bn

oftransactions – the best quarterly

performance in over three years – indicating

renewed investor conviction in London’s

resilience and safe-haven qualities.

Overall, for 2026, despite the current disruption

from the Iran war, the outlook is one of

continued polarisation: prime, well-located,

sustainable assets are expected to

outperform. Landsec’s £7.0bn of prime assets

is well-placed to benefit from this trend.

RETAIL-LED REAL ESTATE

Demand for high-quality retail space is being

driven by experience-led retail investment,

with brands upgrading stores and formats

toenhance customer engagement with a

focus on ‘fewer, bigger, better’ stores. At the

same time, non-prime, secondary centres

continue to face structural challenges from

weaker footfall and underutilised space.

Thepolarisation of centres is clear: the top

1% of all UK shopping destinations provide

access to c. 30% of the country’s in-store,

non-food retail spend, offering brands

highersales densities and productivity

thanother formats.

Around 85% of our retail assets sit in this

top1, which underpins their continued

outperformance.

Occupancy levels demonstrate the wide gap

between the best shopping centres and the

rest. Overall, UK shopping centre occupancy

remains relatively low at 87%. In contrast,

occupancy in our portfolio of dominant

high-quality centres is now 98% – a 20-year

high. Retailer performance shows a similar

trend: since 2022, retail sales growth in our

centres has outperformed the UK national

average by 19ppt.

Investment momentum in shopping centres

started to pick up over the last year, but it is

too early to assess the Middle East conflict’s

impact on this. However, there is still a

significant number of major retail assets

inthehands of parties who are not natural

long-term owners which will likely come

tomarket in the next year or two.

RESIDENTIAL-LED REAL ESTATE

The UK has a structural need for new homes,

as the UK population is expected to grow

to71 million people by 2034 and there is

aclear demand-supply imbalance in the

housing market.

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. With mortgage rates

remaining at elevated levels compared with

earlier in the decade, it remains, on average,

cheaper to rent than buy a house in terms

ofoverall cost.

At present, the returns from residential

development are not sufficient to meet our

requirements but, encouragingly, public

sector policy is shifting in a positive direction

which should enhance returns. For example,

in October 2025, a reduction in affordable

housing requirements from 35% to 20%

inLondon and a 50% reduction in the

Community Infrastructure Levy were

announced. These measures could add

c. 50-75bps to current net yields on cost

ofc. 5.0%.

We will continue to invest time in seeking

tounlock our residential-led development

opportunities, although capex investments

will remain very limited for now and holding

costs are low.

OFFICE-LED REAL ESTATE

The Central London office market is

characterised by tightening prime supply,

aflight to quality, and sustained demand

forGrade A space. Take-up in 2025 reached

11.5 million sq ft, 11% ahead of the five-year

average, with Grade A space accounting

for74% of activity – a figure rising to 82% in

Q4, reflecting occupiers’ strong preference

for high-quality, sustainable buildings.

Demand is being driven not only by

traditional financial and professional services

but also by rapidly expanding AI and tech

operators, with active AI requirements

growing 136% year-on-year by early 2026.

The high demand for Grade A space is

reflected in rental levels, which grew by 10%

in 2025, driven by structural shortages in

high-quality stock and limited development

starts due to high financing and construction

costs – the latter point being the reason why

Landsec will not be committing to new office

developments in London offices as things

stand. High-quality assets, such as Landsec’s

portfolio, have seen increased occupancy

over the last few years compared with the

overall market where occupancy has been

broadly stable.

OFFICE OCCUPANCY

CHART 2

RETAIL OCCUPANCY

CHART 3

Landsec occupancy vs rest of London Landsec occupancy vs rest of UK retail

100%

95%

90%

85%

80%

Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26

100%

95%

90%

85%

80%

Mar-21 Mar-22 Mar-23 Mar-24 Mar-25 Mar-26

Central London Landsec UK retail Landsec

LANDSEC ANNUAL REPORT 2026

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

OUR BUSINESS MODEL

OUR PURPOSE | SHAPING PLACES THAT STAND THE TEST OF TIME

Our role 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.

TWO PRINCIPLES OF SUSTAINABLE VALUE CREATION

MAINTAIN A STRONG

FINANCIAL POSITION

FOCUS RESOURCES

WHERE WE HAVE A SUSTAINABLE OR

ATTAINABLE COMPETITIVE ADVANTAGE

Strong

customer

relationships

Leveraging

ourskills and

knowledge

Efficient

costbase

Appropriate

leverage

Healthy

liquidity

Managing

development risk

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

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

URBAN PLACES WITH STRONG GROWTH PROSPECTS

DELIVERING FOR OUR

CUSTOMERS & PARTNERS

FOCUSED ASSET

RECYCLING

07LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

OUR STRATEGY

The strategy we set out in February 2025 aims to

deliver sustainable income and earnings per share

(EPS) growth over both the near term and the

medium to long term. It rests on the recognition that

income growth is the principal long run driver of value

creation across both real estate and equity markets.

To achieve this, we have defined nine

strategic objectives, divided between five

near-term priorities (1–3 years) and four

medium to long-term priorities (2–5 years).

Dividing our activity across two time periods

reflects the need to balance immediate

EPSdelivery with longer-term decisions

around portfolio composition and capital

deployment, which are essential to shaping

future income growth.

Our near-term priorities are focused on

driving EPS growth from today’s portfolio.

Taken together, these near-term objectives

strengthen EPS resilience, improve cost

efficiency, and free up capital to support

thecompany’s medium- to long-term

repositioning. The priorities set out in 2025

were to:

•

Capture the growing reversion in our retail

and office portfolios

•

Reduce overhead costs to <£65m by FY27

•

Release £0.3bn from pre-development

assets

•

Exit the residual £0.8bn of retail/

leisure parks

•

Invest £1bn in retail acquisitions and

accretive capex

Our existing portfolio and platform are well

placed to drive EPS growth in the near term.

We want to be as confident about the

income growth prospects of our portfolio in

3-5 years’ time – that’s what our

development and capital recycling decisions

are built on and we have identified four

longer-term objectives to achieve this:

•

Release £2bn of capital from offices

•

Deliver low/mid-single digit LFL net rental

income growth (NRI) per annum

•

Establish a £2bn+ residential platform

•

Scale back office-led development by

atleast half

A year into execution, the business

hasachieved strong momentum across

allnineobjectives and is confident of

furtherprogress.

FOCUS ON SUSTAINABLE INCOME/EPS GROWTH

TO DRIVE LONG-TERM VALUE

GROWING LIKE-FOR-LIKE INCOME

— LFL net rental income up 4.6%

— 15% uplifts on relettings/renewals

— EPRA occupancy up to a two-decade

high at 98.0%

SHIFTING PORTFOLIO MIX

— Active year of capital recycling

— Sold £705m of low-returning assets

— No meaningful new development

commitments planned in next 18months

MAINTAINING SOLID CAPITAL BASE

— ERVs up 6.4%, the highest level

innearly 20 years

— LTV 38.7% and 8.4x ND/EBITDA

— Target <7x ND/EBITDA within

thenext two years

LIVERPOOL

ONE

ONE NEW

CHANGE

PICCADILLY

LIGHTS

08 LANDSEC ANNUAL REPORT 2026

KEY BUILDING BLOCKS IN PLACE TO

DELIVER SUSTAINABLE EPS GROWTH

For a company to deliver sustainable EPS

growth it needs to be able to generate rental

growth, and have a business and financing

model that allows that rental growth to

flowthrough effectively to sustainable EPS

growth – we are well-placed on both.

Our high-quality portfolio and market-

leading platforms mean we are well-

positioned to deliver rental growth. We

expect to deliver NRI growth from our retail

portfolio of 4.5-7.0% p.a. over the medium

term. Over the same period, our office

portfolio is expected to deliver 3.0-4.0% LFL

NRI growth. Our efficient business model

allows that rental growth to flow through to

EPS: we have reduced overhead costs by 15%

to £62m compared with FY23, achieving our

target one year early; and our balance sheet

is well-placed with long-duration debt, no

refinancing needs until 2028 and the highest

credit rating in the sector.

CLEAR CAPITAL ALLOCATION PRIORITIES

The company’s capital allocation framework

is designed to align investments with

twooverarching goals: near-term EPS

accretion; and long-term portfolio

transformation toward higher income

growth and lower cyclicality.

GOOD PROGRESS ON EXECUTING OUR STRATEGY

Near-term EPS growth mostly driven by assets/platform we have today

FIVE NEAR-TERM OBJECTIVES (1-3 YEARS) WHAT WE HAVE DONE SO FAR

— Capture growing reversion in retail/office portfolio

— Reduce overhead costs to <£65m by FY27

— Release £0.3bn from pre-development assets

— Exit residual £0.8bn retail/leisure parks

— Invest £1bn in retail acquisitions + accretive capex

— LFL NRI +4.6%. Uplifts on relettings and renewals up to 15%

— 15% reduction in overhead to £62m in FY26

— Released £72m and expect to make further progress in FY27

— Sold £261m of out-of-town parks with limited NRI growth

— Invested £50m in high-yielding projects. Good visibility on new

acquisition opportunities

Strategy to ensure income growth prospects in 3-5 years are as good as they are today

FOUR LONGER-TERM OBJECTIVES (2-5 YEARS)

WHAT WE HAVE DONE SO FAR

— Release £2bn of capital from offices

— Deliver low/mid single digit LFL NRI growth p.a.

— Establish £2bn+ residential platform

— Scale back office-led development by at least half

— Ahead of schedule having sold £346m of offices during FY26

— Set target retail income growth of 4.5-7.0% CAGR

— Progressing schemes. Positive engagement from public sector

— Completed Timber Square. Committed development exposure will be

down to £0.2bn by the end of the summer

Major retail remains our highest priority

investment area as it offers attractive

returns and both short- and long-term EPS

benefits. We aim to invest up to £1bn, funded

through recycling further capital out of

offices accompanied by disciplined flexibility

on book values. Investment activity has

beenrecovering in the London office market

and we remain confident we can achieve a

c. 200bps pick-up in income return and higher

like-for-like income growth from this

recycling activity.

For office development, we believe returns

donot offer sufficient upside relative to

thereturns we expect from our high-quality

existing office assets. Taking into account

the different levels of risk, this means we

seelittle upside in selling our high-quality

existing offices to fund the development

ofnew ones using our own balance sheet,

although we do see the potential to leverage

our platform and expertise in this space by

working with third-party capital.

Living sectors, we believe, have strong

structural support for long-term growth.

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.

Wehave a sizeable, deliverable development

pipeline of 9,000 homes across four projects

in areas with a clear need for more housing.

Returns are currently insufficient, but

policy announcements last year could

add 50-75bps to current net yields on

costof c. 5.0%. We will continue to work

on securing these policy benefits but

capex will be limited in the meantime.

FOCUS ON INCOME AND

EARNINGSGROWTH

Our plans to rebalance the portfolio

should not only enhance our longer-term

growth prospects, but also reduce the

cyclicality in our returns. 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 of c. 5% p.a.

over FY27 to FY30, supporting continued

growth in dividends.

In addition, the reduction in development

activity means our balance sheet will

have a greater proportion of income-

generating investments in the future.

Thissupports our objective to grow EPS

ina sustainable way but also means that

our net debt/EBITDA measure of leverage

will improve, as we have less capital tied

up in low or non-yielding assets. As a

result, we target net debt/EBITDA of

below 7x within the next two years and

expect our LTV to reduce to below 35%

over time.

09LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

KEY PERFORMANCE INDICATORS

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.

EPRA EARNINGS

HOW WE MEASURED IT

The target is set in line with our

five-year plan and annual budget

LFL NET RENTAL INCOME

HOW WE MEASURED IT

The target is set in line with our

five-year plan and annual budget

GROUP LTV

HOW WE MEASURED IT

Adjusted net debt divided by the value

of our total property portfolio

LINK TO REMUNERATION

(% of annual bonus)

LINK TO REMUNERATION

(% of annual bonus)

LINK TO REMUNERATION

(% of annual bonus)

20% 30% 20%

PERFORMANCE IN FY26

(EPRA earnings)

PERFORMANCE IN FY26

(LFL net rental income growth)

PERFORMANCE IN FY26

(Group LTV)

£382.0m

Target

2026

£380.0m

4.6%

Target

2026

4.0%

38.7%

Target

2026

36.5%

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

STRATEGIC OBJECTIVES

HOW WE MEASURED IT

Includes personal strategic and

ESGmeasures

LINK TO REMUNERATION

(% of LTIP award FY26)

LINK TO REMUNERATION

(% of LTIP award FY26)

LINK TO REMUNERATION

(% of annual bonus)

35% 40% 30%

PERFORMANCE 1 APRIL 2023 – 31 MARCH 2026

2.67%

Threshold

2026

2.00%

PERFORMANCE 1 APRIL 2023 – 31 MARCH 2026

Landsec ranked 9th

out of 19companies

(% of LTIP award FY26)

25%

PERFORMANCE IN FY26

All objectives met target level orabove

PROGRESS KEY

Achieved Not Achieved

1. See Directors’ Remuneration Report page 70

forfurther details on EPRA performance.

2. For FY27, Group LTV will be replaced by net debt

toEBITDA.

LANDSEC ANNUAL REPORT 2026

OPERATING AND PORTFOLIO REVIEW

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

which produces £624m of annualised rental income and

offers potential for material income growth. This combined

portfolio was valued at £10.8bn as of March and comprises

the following segments:

OFFICE-LED

PLACES

50%

RETAIL-LED

DESTINATIONS

41%

RESIDENTIAL-LED

PLACES

OTHER

ASSETS

Our well-connected, high-quality

office-led portfolio, which

includes ancillary retail and other

commercial space, principally

focused on multi-let assets in

a small number of key areas in

the West End (61% of value), City

& Southwark (33%) and Greater

Manchester (6%).

Our investments in a select

number of shopping centres

and retail outlets, around 85%

of which sit in the top 1%

highest selling retail destinations

in the UK.

Our investments in four future

development projects in London

and Greater Manchester, two

of which still have a meanwhile

use as retail, with planning

consent or allocation for c. 9,000

new homes.

Assets in sectors where we have

limited scale or competitive

advantage and which we

therefore plan to divest over

time, principally comprising

retail and leisure parks.

KEY OBJECTIVES UNDERPINNING

OURSTRATEGY

Over time, income growth is the main driver

of value growth in both real estate and

equity markets, so the overarching objective

of the strategy we announced just over

a year ago is to deliver sustainable growth

in income and EPS, both in the near and

long term.

Supporting this are nine key objectives we set

out a year ago – five for the short to medium

term (i.e. 1-3 years) and four for the medium

to long term (i.e. 2-5 years). The distinction

between these timeframes is deliberate,

asthis distinguishes between what will drive

EPS growth in the near term vs our objectives

in terms of capital allocation which are

expected to underpin growth in income

andEPS in the long term. One year into this

five-year plan, the momentum on delivering

on our objectives is positive.

In the near term, most of our EPS growth will

be driven by our existing platform and the

assets we own today. This is what our first

five objectives are built on and where we are

well on track:

•

We continue to capture the growing

reversion in our office/retail portfolio,

withuplifts on relettings and renewals up

to 15% vs 8% in the prior year and growth

inlike-for-like net rental income of 4.6%;

•

We reduced overhead costs by 15% to

£62m, one year ahead of our initial target

to reduce costs to less than £65m by FY27,

marking a 26% reduction since FY23;

•

We have released £72m of capital from

pre-development assets and expect to

make further progress towards our

three-year target to release £0.3bn of

capital from this in the current year;

•

We have exited 33% of our retail and leisure

parks, which released £261m of capital

from assets which generated no real

like-for-like income growth, whilst the

income yield we sold at was c. 100-150bps

lower than income returns for major retail

destinations;

•

We aim to grow our major retail platform

by a further c. £1bn through c. £0.2bn of

investments in our existing assets and

c. £0.8bn acquisitions and, having invested

£50m in high-yielding projects and

consolidating ownerships over the past

year, we have good visibility on new

acquisition opportunities.

This means our existing portfolio and

platform are well placed to drive EPS growth

in the near term. As such, our decisions on

development and capital recycling are about

making sure that in a few years’ time, our

asset mix is such that we are as confident

about the income growth prospects of our

portfolio then, as we are about our current

portfolio today. This is what our four longer-

term objectives are built on:

•

Our aim to deliver low to mid-single

digitlike-for-like income growth p.a.

issupported by an acceleration in ERV

growth, as supply of high-quality retail

and office space remains constrained;

•

We plan to release £2bn of capital

employed from offices, which we initially

envisaged for FY27-FY30, yet ahead of

schedule, we have already sold £346m

during FY26;

•

We have already reduced office-led

development by c. 50%, in line with our

objective, as development commitments

are down from £1.1bn to £0.6bn and will

come down further to c. £0.2bn by mid-

2026. We do not expect to commit any

meaningful further capital to development

in the next c. 18 months and intend to

maintain structurally lower on-balance

sheet development exposure thereafter;

•

We continue to make early-stage progress

towards our medium-term objective of

establishing a £2bn+ residential platform

and we are seeing positive engagement

from public sector partners on substantive

plans to improve viability of the four

sizeable, well-located schemes in our

pipeline.

11LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

OPERATING AND PORTFOLIO REVIEW CONTINUED

CAPTURING REVERSION AND DRIVING

LIKE-FOR-LIKE INCOME GROWTH

We have delivered another year of strong

performance against this key objective.

Like-for-like net rental income was up 4.6%,

with high growth in both offices and retail.

Occupancy increased 80bps on a like-for-like

basis to a two-decade high of 98.0% and

rental uplifts on relettings/renewals across

the two main parts of our portfolio virtually

doubled to 15%, up from 8% in the prior year.

On a like-for-like basis, our gross to net

margin was up 1.6ppt due to a continued

focus on cost efficiencies. As overall ERV

growth accelerated to 6.4%, up from 4.2%

in the prior year, this means the potential

for continued income growth in the future

is clear. Given our strong leasing pipeline,

we therefore expect the positive momentum

across these metrics to be sustained in the

year ahead.

LIKE-FOR-LIKE INCOME GROWTH

TABLE 4

Net rental

income

£m

LFL net rental

income growth

LFL occupancy

change

ppt

Gross to net

margin

LFL change in

GtN margin

ppt

Office-led 295 6.0 0.3 91.0 1.7

Retail-led 210 5.5 1.0 82.7 2.8

Residential-led 7 nm 3.0 nm nm

Other assets 50 (4.4) (1.5) 90.6 0.7

Total Combined Portfolio 562 4.6 0.8 87.1 1.6

OFFICE-LED PLACES (50% OF INCOME)

Demand for high-quality office space in

locations that offer the right amenities and

transport connectivity remains robust, which

is driving meaningful rental growth across

ourassets. For example, across our entire

2.3m sq ft Victoria estate we only have one

20k sq ft floor available, with rents onrecent

lettings now over £100psf and negotiations

onthe latest space we are delivering here

significantly ahead of this. The upward

pressure on rents is further exacerbated by

meaningful amounts of office space being

taken out of the market, for example for

residential or hotel conversion.

Driven by the strong performance of our

operations and leasing teams, our occupancy

remains market-leading, up 30bps to 98.6%

– the highest level in over a decade and

materially outperforming the overall London

office market at 93.3%. We completed 53

lettings and renewals during the year

totalling £20m of rent, on average 7% ahead

of ERV. As our portfolio is effectively full, we

have little space to lease, yet we have a

further £1m of lettings in solicitors’ hands,

7% above ERV. Uplifts on relettings and

renewals during the year were 14%, so

alongside operating cost savings and growth

in MYO income, this drove 6.0% LFL rental

income growth. ERV growth increased to

7.1%, which represents the highest level in

ten years, so our reversionary potential now

stands at 17%.

This will support continued growth in LFL

rental income in the next few years, although

we expect this to be at more normalised level

than over the past year, as our virtually full

occupancy means capturing reversion is now

chiefly reliant on lease events.

In October, we opened our seventh MYO flex

office, located next to King’s Cross station.

This is already 75% let, with leasing principally

driven by a combination of international

AIand technology-led businesses, and we

expect this to be substantially full by the

summer. Occupancy across our stabilised

MYO portfolio is 84% and rents achieved

were in line with budget. In total, MYO

nowmakes up 5% of our income in our

office-led business.

RETAIL-LED PLACES (41% OF INCOME)

The top 1% of all UK shopping destinations

provide access to c. 31% of the country’s

in-store, non-food retail spend, offering

brands higher sales densities and productivity

than other formats. Around 85% of our retail

assets sit in this top 1%, which underpins

their continued outperformance. Total sales

across our portfolio of £2.8bn were up 6.3%

vs the prior year, with footfall up 2.7% – both

materially ahead of the BRC benchmarks of

1.1% and 0.1% respectively, as our locations

continue to gain market share.

Since FY22, sales growth across our portfolio

has outperformed the UK national average

by a cumulative 19ppt and this gap continues

to widen. With annual footfall of 170 million

and a consumer reach of one in four people

in the UK, we provide brands with access

tomore footfall and a larger consumer

reachthan any other retail platform in

theUK. Supported by the unique data and

insights this offers us, we continue to invest

in creating the best experience, creating

avirtuous circle of growing footfall driving

higher sales, which in turn attract the best

brands, which then attract more footfall,

and so on.

The success of this translates into strong

growth in income. Occupancy is up 100bps

to 97.7%, which is the highest level in more

than 20 years and resulting in growing rental

tension. We signed 250 leases totalling £36m

of rent on average 10% above ERV, which

resulted in 5.8% ERV growth over the year –

the highest growth in two decades. Rental

uplifts vs previous passing rent on relettings

and renewals more than doubled to 15%,

compared to 7% for FY25 and 1% in FY24,

underlining the rapidly growing reversionary

potential in our portfolio. As a result, like-for-

like net rental income increased by 5.5%.

We have a record leasing pipeline, with £13m

of lettings in solicitors’ hands on average 14%

ahead of ERV and, in the case of relettings

and renewals, 13% above previous passings

rent. Our portfolio is nearly full and with new

supply effectively non-existent, during the

year we set out a target to deliver 4.5-7%

CAGR in income across our existing retail

platform over the coming years. This reflects

a combination of capturing the growing

reversion across our portfolio and growth

in turnover income (3-4%), growth in

commercialisation income such as digital

media, events and EV charging (0.5-1%) and

the investment of up to c. £200m in smaller

accretive capex projects (1-2%).

RESIDENTIAL-LED PLACES (2% OF INCOME)

The income in this part of our portfolio

currently solely reflects the income on our

existing retail assets at Finchley Road and

Lewisham, which are managed with a view

on maintaining development optionality

for future residential development. Overall,

net income on a like-for-like basis was flat

year-on-year.

12 LANDSEC ANNUAL REPORT 2026

OTHER ASSETS (7% OF INCOME)

Having sold the majority of our retail parks

during the year, LFL occupancy across our

residual retail and leisure parks was down

150bps to 97.0% and, reflecting this, like-for-

like income for the period was down4.4%.

Thisalso reflects the impact ofareduction

inrent on five cinema leases during the prior

year, but this performance has stabilised since.

OPERATIONAL PERFORMANCE

TABLE 5

Annualised

rental income

£m

Net estimated

rental value

£m

EPRA

occupancy

LFL occupancy

change

ppt

WAULT

Years

West End offices 136 192 98.7 (0.3) 6.1

City/Southwark offices 90 113 98.9 1.9 7.9

Manchester offices 28 30 96.3 2.9 4.0

Retail and other 57 58 99.3 1.1 5.9

Developments – 91 nm nm nm

Total Office-led 311 484 98.6 0.3 6.4

Shopping centres 206 214 97.6 1.1 4.6

Outlets 49 54 98.2 0.7 2.9

Total Retail-led 255 268 97.7 1.0 4.3

Developments 11 27 91.1 3.0 7.9

Total Residential-led 11 27 91.1 3.0 7.9

Retail and leisure parks 47 49 97.0 (1.5) 8.3

Total Other assets 47 49 97.0 (1.5) 8.3

Total Combined Portfolio 624 828 98.0 0.8 5.7

1. Excluding developments.

RELEASING CAPITAL FROM

LOWER-RETURNING ASSETS

With £705m of disposals, we have made

strong progress on our objective to release

c. £3bn of capital over a five-year period from

lower-returning offices, retail/leisure parks

and pre-development assets.

Our largest disposal was the sale of Queen

Anne’s Mansions (QAM) for £245m. This

Victoria office block has been fully let to

theGovernment since the 1970s, but the

Government intend to vacate the property

once their lease expires in December 2028.

Given its age, the majority of the valuation

was linked to the asset’s redevelopment

potential, with the balance of value stepping

down in line with the receipt of rental

incomeover the remainder of the current

lease. As such, this asset generated a c. 0%

total return. We also sold two smaller London

assets for £101m, reflecting a net effective

income yield of 4.9%, and continue to explore

opportunities to recycle further capital from

assets where upside is modest.

Across retail and leisure parks, we sold four

assets for a combined £261m, making up

one-third of this portfolio. The 6.4% net

rental income yield on these was reasonable,

albeit c. 100-150bps below major retail

destinations and LFL income growth is far

lower. We expect fewer disposals from this

segment in the next 12 months, as the

income profile of most remaining parks

ismore attractive.

As part of our objective to reduce the c. £700m

of capital employed in pre-development assets

we had at the start of the year by around

halfover a three-year period, we sold two

sitesin Southwark, releasing £72m of capital

which generated a net income yield of -0.4%.

We expect to make further progress on

releasing capital from this part of our portfolio

over the next 12 months.

Overall, our disposals over the past year

released £705m of capital from assets which

generated limited or no return at a cost to

overall NTA of 1.1%. The residual finance

lease income on QAM which would have

been received as income over FY25 and FY26

has now been received as a cash capital

receipt on sale, but aside from this, the

overall EPS impact of these disposals was

a minimal -0.4%.

ACQUISITIONS

Having made £720m of acquisitions in

the prior year, we invested just £80m in

acquisitions over the past year. In November,

we spent £48m on a newly developed office

in Oval we agreed to forward-purchase in

the summer of 2021, with a further £10m

consideration deferred for up to 24 months.

Earlier in the year, we also increased our

stake in Liverpool ONE from 93.7% to 96.5%

at a cost of £15m.

DEVELOPMENT AND INVESTMENTS

INOUREXISTING ASSETS

During the year we invested £445m in

capex,including £217m for our on-site office

developments in Victoria, Southwark and

Manchester, £21m for repositioning traditional

office space to MYO flex space and £48m

inpre-development assets, but spend across

all this will come down materially from here.

We also invested £147m across the rest of our

portfolio, including £64m for smaller projects,

leasing and maintenance across in retail, and

£74m in office, including £24m for our net zero

investment programme.

CURRENT PROJECTS

We are now close to completing our

speculative London office development

programme, which is seeing strong customer

interest. Our Timber Square development

(£33m ERV) completed recently and is 54%

letto BP as their new global HQ, with active

customer interest covering double the

remaining space. Our new MYO in King’s Cross

(£8m ERV) completed in October and is

already 75% let, driven principally by various AI

and technology businesses. We expect this to

be substantially let by the summer. The small,

newly completed office in Oval we acquired

inNovember as part of a forward purchase

agreed in 2021 (£4m ERV) is 10% let, with

afurther 45% in advanced negotiations.

Following the completion of Timber Square,

our second major project, Thirty High, is

ontrack for sectional completion during

thesummer. Given its smaller floor plates

and premium tower space offer, we always

envisaged that this would predominantly

lease up post completion. With that date

nearing, we have active customer interest

covering almost 100% of the space and

expect this to translate into strong leasing

activity in the next couple of months.

Reflecting the strength of this interest, the

ERV on the project increased by 17% to £35m.

Once fully let, these four projects are

expected to produce c. £63m of annualised

rental income on a net effective basis.

However, there is an incremental £43m

ofinterest associated with the investment

inthese projects which will no longer be

capitalised post completion, so we assume

this to result in a c. £6-8m drag on earnings

in our FY27 guidance. This impact is

temporary, as this incremental interest

expense will be more than offset by rental

income once these projects are let. Given the

strong interest and leasing progress to date,

we remain confident our projects will lease up

within c. 12 months post completion, which

should drive strong growth in earnings in FY28.

Following the completion of Timber Square,

our committed development exposure is

down from £1.1bn to £0.6bn, in line with

our strategic objective to reduce office

development exposure by c. 50%. This will

come down further over the next few months

as after the completion of Thirty High, our

only committed office project is our £154m

development at Mayfield, Manchester.

13LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

OPERATING AND PORTFOLIO REVIEW CONTINUED

We are also on site with £43m of smaller,

high-yielding retail projects, including

therepositioning of the former House of

Fraser department store at Bluewater for

anew 133,000 sq ft Next store; the extension

of Primark’s store at White Rose, Leeds

to double its footprint; and the creation

ofa new social eating destination at

Trinity,Leeds. As a result, our total

committed development capex is down

to£185m.

COMMITTED PIPELINE

TABLE 6

Project Sector

Size

sq ft

’000

Estimated

completion

date

ERV

£m

Market

value

£m

Costs to

complete

£m

TDC

£m

Gross yield

onTDC

Thirty High, SW1 Office 299 Q2 FY27 35 436 57 446 7.8

Republic, Manchester Office 246 Q4 FY28 13 38 107 154 8.3

Various projects Retail 292 Various 4 N/A 21 43 9.8

Total 837 52 185 643 8.1

POTENTIAL FUTURE PIPELINE

Based on our capital allocation framework,

investment in major retail destinations

remains most attractive in our view, both

from a near as well as medium-term impact

on income and EPS. As such, we do not plan to

commit any meaningful balance sheet capital

to new development for the next c. 18 months.

For office development, we believe returns

do not offer sufficient upside relative to the

returns we expect on our high-quality existing

office assets. Whilst higher rental growth

could improve development returns, we would

also benefit from this market growth via our

existing £7.0bn office portfolio. Taking into

account the higher level of risk in

development, this means we see little upside

in selling our high-quality existing offices to

redeploy the same balance sheet capital into

funding the development of new ones.

In residential the argument for development

is more nuanced, as this would shift our

portfolio mix towards the higher income

growth and lower cyclicality we are aiming

for in the long run. Currently, development

returns are not sufficient yet given the

attractive long-term characteristics and

political support towards improving viability,

this remains an option we think is worth

pursuing, especially as capital employed is low

and capex remains limited for the time being.

During the year, we secured a resolution to

grant detailed planning consent for the first

phase of 879 homes at Mayfield, adjacent

toManchester’s main train station, and a

resolution to grant a part outline and part

detailed planning consent for our 2,800 homes

scheme in Lewisham, south-east London.

Combined with the existing outline and part

detailed consent for 1,800 homes at Finchley

Road, north London and our site at MediaCity,

Greater Manchester which has an allocation

for 2,700 homes, we therefore now have four

projects which could deliver c. 9,000 homes

over the next decade.

Each of our projects benefits from strong

transport connections, scale, and a

demonstrable need for more housing.

Encouragingly, public sector policy is becoming

more supportive in terms of improving viability,

e.g. with the announcement in London of a

reduction in affordable housing requirements

from 35% to 20%, a 50% reduction in the

Community Infrastructure Levy, and less

onerous design requirements. Our focus is on

securing these and other policy benefits, which

could lead to an improved outlook returns in

the future, as this could add c. 50-75bps to

current net yields on cost of c. 5.0%. Still, for

now, capex spend on these projects will be very

limited, as taking into account detailed design

works, Building Safety Act approvals, and site

preparation, the earliest starts on site would

not be before late 2027.

PRE-DEVELOPMENT ASSETS

TABLE 7

Project

Current capital

employed

£m

Proposed

sq ft

’000

Proposed

new

homes

Indicative

TDC

£bn

Potential

start

date

Planning

status

Office-led

Old Broad Street, EC2 n/m Consented

Liberty of Southwark, SE1 n/m Consented

Hill House, EC4 n/m Consented

Nova Place, SW1 n/m Consented

Timber Square Phase 2, SE1 n/m Consented

Total c. 250 1,350 1.9

Residential-led

Mayfield, Manchester 1,700 0.9 2027 Consented

Finchley Road, NW3 1,800 1.2 2027 Consented

Lewisham, SE13 2,800 1.5 2028 Consented

MediaCity Phase 2, Salford 2,700 n/m n/m Design

Total c. 270 9,000 3.6

Other opportunities c. 90 n/m n/m Various

Total c. 610 Various

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

LANDSEC ANNUAL REPORT 2026

Irrespective of sectors, we are mindful of the

negative impact on our risk-profile and EPS

growth of having large amounts of capital

tied up in development for prolonged periods.

Looking forward, we therefore plan to keep

our exposure to committed development

closer to about half of the c. £1bn it has been

over the last five years via a mix of lower

activity levels and working with capital

partners on certain projects.

EXTERNAL PORTFOLIO VALUATION

Successfully delivering sustainable income

growth over time underpins longer-term

growth in property values, even though in the

short term values will be affected by changes

in valuation yields. Yields were virtually stable

over the year and our strong leasing activity

saw ERV growth accelerate to 6.4%, so

taking into account two specific movements

in our office-led portfolio, overall values were

up 1.2% for the year, weighted entirely to the

second half.

The valuation of our office portfolio was

virtually stable, as the upside from strong

7.1% ERV growth was offset by a 14bps rise

invaluation yields plus two specific factors.

This includes the impact of the increase

inbusiness rates at Piccadilly Lights we

highlighted at the half year, plus the impact

of a rise in build cost, mostly on development

assets. Combined, these two factors resulted

in a 1.6% reduction in overall office-led

valuations. The valuation of our retail-led

portfolio was up 4.6%, with 5.8% ERV

growthand valuation yields down marginally.

The valuation of our future residential

developments and our residual retail and

leisure parks was broadly stable, at 0.1%

and1.0% respectively.

During the year, we saw a steady pick-up

ininvestment activity in London and major

retail, with growing investor interest in both.

The strength in occupational demand for

best-in-class assets and hence positive

outlook for capturing rental growth means

yields for such assets continue to look

attractive relative to real interest rates, yet

we are mindful that the renewed volatility

ininterest rates globally over the last few

months could slow down investor decision-

making. As customer demand remains

robust, we expect that ERV growth for offices

and retail will be around the mid-single digits

this year.

VALUATION OVERVIEW

TABLE 8

Market

value

£m

Surplus/

(Deficit)

£m

Valuation

change

LFL rental

value change

Net initial

yield

Topped up net

initial yield

Equivalent

yield

LFL equivalent

yield change

bps

West End offices

2,930 29 1.1 7.3 3.9 5.0 5.6 15

City offices and Southwark offices 1,481 27 1.9 7.2 5.0 5.6 6.2 6

Manchester offices 303 6 2.0 3.3 6.9 6.9 8.2 21

Retail and other

1,2

1,032 (12) (1.2) 7.6 4.7 4.7 4.8 (14)

Developments 1,273 (57) (4.3) n/a 0.0 0.0 5.7 n/a

Total Office-led 7,019 (7) (0.1) 7.1 4.5 5.3 5.9 14

Shopping centres 2,293 103 4.8 6.5 7.1 7.9 7.7 (7)

Outlets 662 23 3.7 3.7 6.1 6.7 6.7 (19)

Total Retail-led 2,955 126 4.6 5.8 6.6 7.2 7.1 (10)

Developments 318 0 0.1 1.7 4.1 4.5 6.5 n/a

Total Residential-led 318 0 0.1 1.7 4.1 4.5 6.5 n/a

Retail and leisure parks 544 5 1.0 6.1 7.1 7.7 8.2 7

Total Other assets 544 5 1.0 6.1 7.1 7.7 8.2 7

Total Combined Portfolio 10,836 124 1.2 6.4 5.4 6.1 6.3 3

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

2. Includes owner-occupied property.

GROWING IN A SUSTAINABLE WAY

As we grow income and EPS, it is important

our growth is sustainable in all aspects.

We target to reduce direct and indirect

greenhouse gas emissions by 47% by 2030 vs

2019/20, including all of our Scope 1, 2 and 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 with a 7% reduction over the past 12

months, we have again made significant

progress on this. As such, we remain on track

vs our 2030 target, with a 27% reduction vs

this baseline so far.

As part of this, we are in the process of

introducing AI smart building technology

across 20 of our assets to transform how

they are managed and experienced. The

automation and intelligent diagnostics this

provides enables smarter decision-making on

energy management, which has led to c. 10%

reduction in energy consumption and

energy costs for the eight properties where

this technology is already live.

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 having

finished the first retro-fit of air source heat

pumps during the prior year, we completed

the retro-fit of further air source heat pumps

at Palace Street and One New Change last

year. As such, 68% of our overall portfolio is

now rated EPC ‘B’ or higher, up from 56% in

March. In office, 73% of our portfolio is rated

EPC ‘B’ or higher.

Our pipeline of future developments is

tracking a 39% reduction in embodied

carbon vs a typical development, but

thereisa limit to how much of a further

reduction is economically achievable,

ascustomers andinvestors are more

focusedon energy efficiency in buildings

than 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 22 interns and supported 14 real

estate bursaries. From our 2019/20 baseline,

we have so far created £147m of social value

and empowered 19,049 people towards the

world of work.

15LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

FINANCIAL REVIEW

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 £10.8bn, 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 73 in the

Businessanalysis section.

HIGHLIGHTS

£382m

EPRA

EARNINGS

(2025: £374m)

£346m

IFRS PROFIT

BEFORE TAX

(2025: £393m)

51.4p

EPRA EARNINGS

PER SHARE

(2025: 50.3p)

46.2p

BASIC EARNINGS

PER SHARE

(2025: 53.3p)

£10,836m

COMBINED

PORTFOLIO

1, 2

(2025: £10,880m)

£6,537m

IFRS NET

ASSETS

(2025: £6,532m)

5.6%

TOTAL ACCOUNTING

RETURN

(2025: 6.4%)

41.2p

DIVIDEND

PER SHARE

(2025: 40.4p)

38.7%

GROUP

LTV RATIO

(2025: 39.3%)

£4,215m

ADJUSTED

NET DEBT

(2025: £4,304m)

882p

EPRA NET TANGIBLE

ASSETSPER SHARE

(2025: 874p)

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.

VANESSA SIMMS

CHIEF FINANCIAL OFFICER

16 LANDSEC ANNUAL REPORT 2026

OVERVIEW

Our performance against our primary

objective to deliver sustainable income and

EPS growth has been positive. EPRA earnings

are up £8m to £382m despite the -£7m

impact from the sale of QAM, which turned

future finance lease income into a capital

receipt on sale. This earlier than expected

sale was not part of our initial plan, so

adjusted for the 1.8% EPS impact of this,

our2.2% reported EPRA EPS growth for

theyear was at the very top end of our

c. 2-4% guidance.

This positive result was driven by another

year of strong operational performance, with

occupancy up 80bps to a two-decade high

of98.0% and rental uplifts on relettings and

renewals rising to 15%, up from 8% over the

prior year. As such, we delivered 4.6% growth

in like-for-like net rental income, well ahead

of our initial c. 3-4% guidance and resulting

in a £21m increase in like-for-like income.

Meanwhile, our consistent focus on driving

further efficiencies meant overhead costs

were down £11m, or 15%, so our overhead

costs are now at the lowest level in more

than 20 years. As a result, our dividend is

up2.0% to 41.2 pence, comfortably in line

with our policy of a 1.2-1.3x dividend cover

onan annual basis.

Our successful leasing drove 6.4% ERV

growth, so our reversionary potential

continues to grow, and the external valuation

of our portfolio was up 1.2%. The shortfall

vsbook value on the sale of £705m of

low-returning assets meant IFRS profit before

tax was £346m yet NTA per share was up

0.9% for the year and 2.2% in the second

half, which means our total accounting

return for the year was 5.6%.

Customer demand for our best-in-class

space remains strong, which is set to drive

further income growth. Supported by our

lower cost base and a reduction in capital

employed in development, this consistent

topline growth will increasingly flow through

to an acceleration in EPS growth in the near

and medium term.

For FY27, we expect EPRA EPS to be stable

vsthe 51.4 pence in FY26, in line with our

previous guidance, as underlying growth

isoffset by the 4% impact of the full-year

effect of the sale of QAM. For FY28, based

oncurrent momentum, we expect EPS to

grow by a high single digit percentage,

drivenby the lease-up of our current

Londonoffice pipeline and continuing

tocapture the growing reversion in our

portfolio. Beyond that, we continue to see

the potential for EPS to grow to c. 62 pence

byFY30, implying c. 5% CAGR over the next

four years, c. 80% of which is driven by our

current portfolio and platform.

All this remains underpinned by our clear

commitment to retain a strong balance

sheet. We reduced our adjusted net debt by

£89m to £4.2bn over the year, so our LTV is

down 60bps to 38.7% and our current net

debt/EBITDA is 8.4x. We also decided to move

to a structurally lower level of development

activity in the future and are not planning

to start any meaningful new developments

for the next c. 18 months. As such, our

committed development exposure is set to

reduce to less than 2% of our portfolio value

in a few months’ time, down from 8% a year

ago. Moreover, as our recent projects start to

produce income, we expect net debt/EBITDA

to reduce to below 7x within the next two

years and we expect our LTV to reduce to

below 35% over time. With an average debt

maturity of 8.6 years, modest £185m

committed development capex, and no need

to refinance any debt until 2028, this means

our capital base remains strong.

INCOME STATEMENT

We delivered good progress on our objective

to deliver sustainable income and EPS

growth. Net rental income was up £10m,

as strong like-for-like growth across our

best-in-class portfolio more than offset the

fact that the recovery of bad/doubtful debt

provisions was £9m lower than in the prior

period. Net finance expenses increased in

line with the increase in average borrowings,

but this was offset by a reduction in

administrative expenses so EPRA earnings

of£382m were £8m ahead of the prior period,

despite the £7m impact from the sale of QAM.

INCOME STATEMENT

TABLE 9

Year ended 31 March 2026 Year ended 31 March 2025

Office-

led

£m

Retail-

led

£m

Residential-

led

£m

Other

assets

£m

Total

£m

Office-

led

£m

Retail-

led

£m

Residential-

led

£m

Other

assets

£m

Total

£m

Change

£m

Gross rental income

324 255 12 53 644 323 215 12 74 624 20

Net service charge expense – (4) (1) (1) (6) (4) (5) – (2) (11) 5

Net direct property expenditure (29) (40) (4) (4) (77) (26) (37) (2) (8) (73) (4)

Net other operating income (1) – – – (1) 1 – – – 1 (2)

Movement in bad/doubtful debts provisions 1 (1) – 2 2 1 7 1 2 11 (9)

Segment net rental income 295 210 7 50 562 295 180 11 66 552 10

Net administrative expenses (62) (73) 11

EPRA earnings before interest 500 479 21

Net finance expense (118) (105) (13)

EPRA earnings 382 374 8

Capital/other items

Valuation surplus

122 107 15

Loss on disposals (105) (18) (87)

Impairment charges (3) (26) 23

Fair value movement on derivatives (9) (38) 29

Other (42) (6) (36)

Profit before tax attributable to shareholders

of the parent

345 393 (48)

Non-controlling interests 1 – 1

Profit before tax 346 393 (47)

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. Excludes valuation surplus on owner-occupied property which is recognised within Other comprehensive income.

LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

FINANCIAL REVIEW CONTINUED

NET RENTAL INCOME

Our gross rental income was up £20m to

£644m, principally driven by like-for-like

growth. This was partly offset by the sale

ofQAM in December, which reduced income

for the year by £10m and will impact FY27

income by a further £22m. The principal

reason for this is that we received the

residual finance lease income that runs until

December 2026 as a capital receipt on sale,

rather than as income across the rest of 2025

and 2026. Still, overall cash proceeds are

effectively the same and the sale released

£245m of capital which effectively generated

zero total return, as the value of the building

reduced in line with the receipt of every

remaining rental payment until it is vacated

in late 2028.

Gross rental income included £4m of

surrender receipts, which was slightly below

the £6m in the prior year. In line with the

expectation we set out at the start of the

year, the release of bad and doubtful debt

provisions was down to £2m, as the prior year

saw a £5m increase in this figure, principally

related to the recovery of outstanding debts

on assets that had previously been managed

externally and we had started to manage

in house.

Reflecting the above, our overall net rental

income was up £10m to £562m, yet on a

like-for-like basis net rent was up £21m,

or4.6%. This was well ahead of our initial

c. 3-4% guidance for the year and in line with

our increased guidance of c. 4-5% growth at

the half year, reflecting our strong leasing,

with increased occupancy, positive uplifts

onrelettings and renewals, and growth in

turnover income. Our focus on costs meant

net service charge expenses and direct

property expenditure were down £1m,

even though top-line income was up £20m.

Adjusted for movements in the recovery of

bad and doubtful debt provisions, this meant

our gross to net margin improved by 0.6ppt

to 87.1%.

As the outlook for customer demand remains

positive, reflected in our growing reversionary

potential, we expect like-for-like net rental

income to grow by a further c. 3-5% this

financial year. As our office portfolio is 99%

full, like-for-like growth in this part of our

portfolio is expected to moderate vs last

year’s 6.0%, as capturing reversion is now

effectively reliant on lease events, yet we

expect like-for-like growth in retail to remain

in the mid-single digits.

NET RENTAL INCOME

(£M)

CHART 10

Net rental income for the

year ended 31 March 2026

Net rental income for the

year ended 31 March 2025

Increase in variable and

turnover-based rents

Acquisitions since

1 April 2024

Movement in

bad/doubtful debts

Disposals since

1 April 2024

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

600

552

(2)

(30)

(9)

562

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.

LANDSEC ANNUAL REPORT 2026

NET ADMINISTRATIVE EXPENSES

We reduced net administrative expenses by

a further £11m to £62m. This was well ahead

of our guided cost reduction for the year of

costs below £70m and, in fact, already below

the target we set a year ago for overhead

costs to reduce to less than £65m by FY27.

As a result, our overhead costs are now at

the lowest level in 20 years and down 26%

since FY23.

The material reduction in costs principally

reflects the benefits of the new data and

tech systems we implemented towards the

end of FY25. Over the past year, we have

started to see significant efficiencies across

several core business processes as a result,

e.g. by automating the legal lease contract

to billing process, and automating and

enhancing internal reporting. The latter

provides us with more detailed insights and

financial planning opportunities, which we

expect to drive further value in the future.

Linked to this, we also made several

organisational changes. We expect further

efficiencies to offset inflation, hence we

expect overhead to remain in the low £60m’s,

which equates to c. 55bps of our portfolio

value and benchmarks well versus the wider

UK REIT sector.

The reduction in net administrative expenses

and improvement in gross to net margin

during the year resulted in a 0.9ppt

improvement in our EPRA cost ratio to 20.8%,

although we remain of the view that 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, for

example, residential or shopping centres, yet

that does not mean they deliver better income

returns or higher income growth. For us, the

only thing which matters is the overall net

income return, as that is what drives value

forshareholders.

NET FINANCE EXPENSES

Net interest costs increased by £13m to

£118m, which principally reflects the higher

average level of net debt following the

acquisitions of the final stake of MediaCity

and Liverpool ONE in the second half of the

prior year. We expect net debt to reduce over

the next 12-18 months due to our planned

capital recycling, but the benefit of this in

terms of net finance expense to be offset by

a reduction in capitalised interest following

the completion of our London office

developments.

Finance expense movements in Capital/other

items include the fair value movements on

derivatives, caps and hedging and which is

not included in EPRA earnings, decreased

from a net expense of £39m in the prior

period to a net expense of £9m over the last

12 months. 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 was up 1.2%, resulting in

a £124m increase in value. Our strong leasing

activity across our high-quality assets

resulted in 6.4% ERV growth, but the upside

from this was partly offset by some yield

softening in offices and two specific factors

related to business rates and build costs in

our office-led portfolio, which reduced the

valuation growth across our overall portfolio

by 1.1%.

As we highlighted in November, the shortfall

vs book value on disposals which we agreed

in the first half and which completed in the

second half has moved from being recorded

as a valuation deficit in our half-year

accounts to a loss on disposal in our full-year

accounts. This now also reflects £22m for the

ongoing unwind of the value of QAM, which

at the half year was still reflected as a

valuation deficit. These movements are the

principal reason losses on disposals are up

£50m since the first half, but are fully offset

by the commensurate increase in valuation

surplus, so had no impact on IFRS profit or

net assets.

IFRS PROFIT AFTER TAX

Substantially all our activity during the

periodwas covered by UK REIT legislation,

which means our tax charge for the period

remained minimal. The IFRS profit after tax

of £344m reflects our growing EPRA earnings

and £122m valuation surplus (excluding

surplus on owner-occupied property), partly

offset by one-off other costs described in the

section below and the shortfall vs book value

on a number of low-returning assets we sold

during the year. This shortfall is also the

principal reason IFRS profit after tax was

below the £396m for the prior year.

NET ASSETS AND TOTAL

ACCOUNTINGRETURN

Including dividends paid, our total

accounting return for the year was 5.6%,

compared with 6.4% for the prior year. The

main difference was due to the shortfall vs

book value on the sale of a select number

of assets which generated little or no return.

The income return on NTA we generated

was 5.8%.

After the £303m of dividends paid, EPRA

NetTangible Assets, which reflects the value

of our Combined Portfolio less adjusted net

debt, increased to £6,574m, or 882 pence per

share. This was up 0.9% over the year and

2.2% since September, as growth was partly

offset by the sale of £705m of low-returning

assets which came at a cost to NTA of 1.1%,

excluding the regular QAM value unwind.

Inaddition, we recognised £12m of

restructuring and integration costs; wrote

off£12m of WIP on a potential future

development opportunity; and made a

number of other small adjustments impacting

NTA in respect of certain property provisions

totalling £3m.

19LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

FINANCIAL REVIEW CONTINUED

BALANCE SHEET

TABLE 11

31 March 2026

£m

31 March 2025

£m

Combined Portfolio

10,836 10,880

Adjusted net debt (4,215) (4,304)

Other net liabilities (47) (46)

EPRA Net Tangible Assets 6,574 6,530

Shortfall of fair value over net investment in finance leases book value 6 8

Other intangible assets 1 2

Excess of fair value over trading properties book value (48) (27)

Fair value of interest-rate swaps 4 1

Net assets, excluding amounts due to non-controlling interests 6,537 6,514

Net assets per share 882p 877p

EPRA Net Tangible Assets per share (diluted) 882p 874p

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 12

Valuation surplus

EPRA Net Tangible Assets

at 31 March 2026

EPRA Net Tangible Assets

at 31 March 2025

EPRA earnings

Dividends

Loss on disposals

Movement in own shares

Other

6,530

382

124

(303)

(105)

(27)

6,574

(27)

7,000

6,000

5,000

4,000

874 51 17 (41) (13) (3)(3) 882

Diluted per share (pence)

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

2. Including valuation surplus on owner-occupied property.

LANDSEC ANNUAL REPORT 2026

NET DEBT AND LEVERAGE

Adjusted net debt, which includes our

shareof JV borrowings, reduced by £89m

to£4,215m during the year. We spent £80m

on acquisitions and invested £486m in

capex,including £247m for our on-site

development schemes, with the remainder

principally comprising pre-development

capex; a number of accretive smaller projects

and leasing capex in retail; and investments

in our office portfolio, including the creation

of new MYO flex office space and our net-zero

investment programme. This was partly

offset by £684m of disposal receipts during

the year.

We have £185m of committed capex left

onour committed developments, of which

£135m is expected to be spent this financial

year. As we prioritise investment in major

retail and retaining our balance sheet

strength, we do not intend to commit to any

meaningful capital to new developments for

the next c. 18 months. Meanwhile, future

capex on pre-development assets will be

minimal pending visibility on the potential

for public sector support to improve the

return prospects for our residential schemes.

The other key elements behind the reduction

in net debt are set out in our statement

of cash flows and note 12 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 20

ofthe financial statements.

MOVEMENT IN ADJUSTED NET DEBT

(£M)

CHART 13

Adjusted

net debt at

31 March 2026

Adjusted

net debt at

31 March 2025

Adjusted net

cash inflow

from operating

activities

2,3

Dividends paid

Capital

expenditure

Acquisitions

Other

Disposals

4,304

290

(303)

486

(684)

42 4,215

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.

2. Adjusted for interest capitalised in relation to properties under development.

3. Adjusted for movements in deferred consideration amounts during the year.

Our longstanding operating guidelines are

tohave an LTV within a 25-40% range, a net

debt/EBITDA of less than 8x, and an ICR of at

least 3x. Maintaining our strong capital base

remains a key priority for us and we would

expect these levels to be commensurate with

AA credit ratings.

In line with our guidance, average net debt/

EBITDA increased due to the fact that our

two major on-site developments in London

are now at or near the point of full capital

deployment but did not produce any income

during the year. As such, net debt/EBITDA

came out at 8.6x for the year, or 8.4x based

on the current position, yet this will reduce

meaningfully as these projects now start to

produce income.

As we move to a structurally lower level

ofdevelopment activity in the future, this

means we now expect net debt/EBITDA to

reduce below 7x. We expect to achieve this

within the next two years without having

torely on material disposals given the

strongmomentum in development leasing

and continued like-for-like income growth.

Our LTV reduced 60bps during the year to

38.7% and we expect this to reduce further

to below 35% over time.

NET DEBT AND LEVERAGE

TABLE 14

31 March

2026

31 March

2025

Net debt £4,234m £4,341m

Adjusted net debt

£4,215m £4,304m

Interest cover ratio 3.1x 3.6x

Net debt/EBITDA

(period-end)

8.4x 8.9x

Net debt/EBITDA

(weighted average)

8.6x 7.9x

Group LTV

38.7% 39.3%

1. Including our proportionate share of subsidiaries

and joint ventures, as explained in the Presentation

of financial information above.

LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

FINANCIAL REVIEW CONTINUED

FINANCING

Our financial position remains strong.

InOctober, we agreed the first one-year

extension option of the full £2,250m of

revolving credit facilities we signed the prior

year. As a result, our overall debt maturity

remains long, at 8.6 years, which is twice as

long as the average for the UK REIT sector.

This provides us with clear visibility and

underpins the resilience of our attractive

earnings profile. We had £1.3bn of cash

andundrawn facilities at the end of March,

providing substantial flexibility, and no need

to undertake any refinancing activity until

2028. Our debt is 89% fixed or hedged and in

line with the guidance for a slight increase

we provided at the start of the year, our

average cost of debt was up slightly to 3.6%.

Our gross borrowings of £4,360m are

diversified across various sources, including

£2,870m of Medium Term Notes (MTNs),

£746m of syndicated and bilateral bank loans

and £744m 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

£10.4bn. This structure provides flexibility to

include or exclude assets, and an attractive

cost of funding. Our MTNs are currently rated

AA and A+ 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. 54% before we reach the 1.45x ICR

threshold and c. 68% before reaching

1.0x ICR.

AVAILABLE FACILITIES

TABLE 15

31 March 2026

£m

31 March 2025

£m

Medium Term Notes 2,870 2,868

Drawn bank debt 746 778

Outstanding commercial paper 744 750

Cash and available undrawn facilities 1,266 1,101

Total committed credit facilities 2,650 2,590

Weighted average maturity of debt

8.6 years 9.6 years

Percentage of borrowings fixed or hedged

89% 91%

Weighted average cost of debt

3.6% 3.4%

1. Assuming all extensions on the bank facilities are executed; 8.3 years excl. the remaining extension on the RCFs.

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

3. Including upfront fees amortisation and commitment fees; excluding this the weighted average cost of debt is 3.4% at 31 March 2026.

FINANCIAL SUMMARY

Reflecting the actions we have taken in

recent years, the outlook for Landsec remains

positive. Customer demand for our best-in-

class office and retail space, which make up

91% of our overall income, remains strong.

This persistent trend supported CAGR in

like-for-like net income of 4.0% over the last

four years and as reversion is growing, should

continue to support attractive income growth

in the future.

As our overhead costs are down to a 20-year

low and capital employed in low/non-yielding

development is down materially, this

continued top line growth will increasingly

start to flow through to an acceleration in

EPS growth. We therefore continue to see

the potential to deliver c. 5% CAGR in EPRA

EPS over the next four years, including high

single digit growth in FY28, which remains

underpinned by our robust capital base, with

net debt/EBITDA expected to reduce to below

7x within the next two years.

VANESSA SIMMS

CHIEF FINANCIAL OFFICER

22 LANDSEC ANNUAL REPORT 2026

OUR STAKEHOLDERS

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.

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

interests 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

underpins 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 FIVE KEY STAKEHOLDERS

23LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

OUR STAKEHOLDERS CONTINUED

OUR CUSTOMERS

WHY THEY ARE IMPORTANT?

Office – We build lasting partnerships by

understanding our customers’ needs and

supporting their goals. From their first

interaction with us to the everyday

experience in our spaces, we want to

ensureour customers and their teams

getthe most out of every working day.

Retail – We offer different retail spaces for

our customers’ needs. Whether our retail

customers are looking for a long-term brand

statement or a short-term testbed, we offer

arange of spaces and lease lengths – all

designed to maximise our customers’ brand

relationship with their customers.

Residential – Continued population growth

will mean the existing shortage of urban

housing is set to grow and in the medium to

long term we aim to play a part of meeting

customers’ needs for choice within the

residential market.

PRIORITIES AND ENGAGEMENT

Landsec maintains a strong customer

focused approach, because their success is

our success. From the first point of enquiry

through to the ongoing management of our

places, we work hard to engage our brand

partners and office customers at all times.

Increasingly, we have begun to build a more

meaningful relationship with those people

who visit our places, whether through formal

programmes like PLUS+ in our Retail business,

or through the Landsec Experience App for

our Office customers.

We continue to see clear positive momentum

in operational performance across every

partof our business, notwithstanding the

challenging wider economic environment.

Owning the right real estate has never been

more important, so we continue to benefit

from our proactive portfolio repositioning

which has taken place over the last few

years. This is key to meeting the needs of

ourcustomers.

BOARD OVERSIGHT

During the year, the Board received regular

updates on customer insights for each of our

business units as well as having updates on

broader strategy and regularly visiting our

sites. Please see page 59 for more details

ofBoard activities during the year.

OUR COMMUNITIES

WHY THEY ARE IMPORTANT?

Our 2024 impact report highlights how our

places and activities are positively affecting

communities across the UK. Whether through

our economic contributions, or the social and

sustainable value we deliver, we recognise

that our decisions resonate in the long term,

and make a significant difference to many.

PRIORITIES AND ENGAGEMENT

Our impact on the local communities within

which we operate is as important as our

economic input. We create direct jobs, install

environmentally friendly features, anddrive

community relations through programmes

and initiatives and we unlock potential

through internships to employment.

Our teams engage extensively with local

communities as described in more detail

onpage 33 within our approach to

sustainability section.

BOARD OVERSIGHT

The Board gains a better view of our local

communities from visiting our sites, andfrom

updates by the Chief Corporate Affairs Officer

on political and community engagement.

Members of the Board also attended the

Empowering People of Colour (EPOC) event

in November on Diversity in Real Estate

Leadership which was hosted by Landsec.

This event connected board members and

executives across the industry with the next

generation of potential board talent from

ethnic minority backgrounds in the real

estate industry.

OUR PARTNERS

WHY THEY ARE IMPORTANT?

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.

PRIORITIES AND ENGAGEMENT

Our priorities during the year in respect ofour

suppliers are described in detail on page 34.

In our Workplace and Retail business areas

we have a particularly strong and cohesive

team of service partners with the same

goals, ideals and values. We work together

toprovide customers with the best possible

service within our properties. Highlights this

year included our Aspire annual awards

ceremony, which allowed us to reward our

Workplace service partner employees for

their amazing achievements.

More information on our relationships with our

suppliers and associated processes is available on

ourwebsite.

Engagement with suppliers is described in

more detail on page 34 within our approach

to sustainability section.

BOARD OVERSIGHT

The Board receives regular updates from

ourbusiness units and functions including

our relationships with any key suppliers.

OUR EMPLOYEES

WHY THEY ARE IMPORTANT?

At Landsec, we know great things happen

when we work together. We’re committed

tohigh standards and creating outcomes

where everyone wins. Nothing in our history

has happened by chance. Every place we

identify is for its potential to create lasting

value. Every partnership we form with our

communities and our customers is to create

shared success. And every person that works

at Landsec brings their skills and talent to

shape the next chapters of our story.

PRIORITIES AND ENGAGEMENT

Our People priorities and highlights during the

year are described in detail on pages 26-28.

24 LANDSEC ANNUAL REPORT 2026

BOARD OVERSIGHT

Manjiry Tamhane was the Non-executive

Director responsible for employee

engagement and whistleblowing during

theyear. She provided half-yearly updates

onemployee engagement activities, as well

as contributing to discussions as and when

relevant matters arose. There have also been

a number of employee engagement events

with the Board during the year:

•

Meet the Board events, where members

ofthe Board met with employees for

opendiscussions

•

Annual Spotlight awards, our annual

employee recognition awards attended

bymembers of the Board

•

Attendance by our Chair at the High

Performance Masterclass graduations

(oneof our key talent programmes this year)

•

Participants from Landsec Builds (a

development programme), attended the

Board Strategy Day to present research

onour competitors, including lunch with

the Board

•

The Board received briefings on the

employee engagement survey undertaken

in October 2025 which provided them with

good insights into employee sentiment

Overall, employee sentiment has been very

positive across Landsec with high levels of

engagement. Manjiry stepped down from the

Board on 31 March 2026 and Louise Casey has

assumed the role of Non-executive Director

for employee engagement with effect from

April 2026.

OUR INVESTORS

WHY THEY ARE IMPORTANT?

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.

PRIORITIES AND ENGAGEMENT

INSTITUTIONAL INVESTORS AND

DEBTSTAKEHOLDERS

We manage and maintain a comprehensive

investor relations programme which

includespost-results roadshows to meet

withinstitutional investors, bondholders,

lenders and rating agencies; attending

industry conferences; arranging capital

markets days as and when required, asset

tours across our portfolio and a programme

of meetings with Private Client Fund

Managers who manage funds on behalf of

private investors. We also issue semi-annual

reports to our debt stakeholders.

In FY26 we attended ten investor conferences

located in the UK, the Netherlands and the

US, together with two overseas roadshows.

We are increasing the number of generalist

events we attend, reflecting the way our

share register has changed over the last

decade with fewer specialist real estate

funds owning our shares. We held an annual

update for bond investors following the

FY25results, which was well attended.

InSeptember 2025, we held a retail-focused

capital markets day at Liverpool ONE; this

included an update from management

onour retail business, a panel session of

ourretail customers who discussed the

importance of physical retail within their

strategies, and a tour of Liverpool ONE.

PRIVATE INVESTORS

Our private investors are encouraged to

givefeedback and communicate with

theDirectors via the Company Secretary

throughout the year. 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.

Wework closely with our registrar Equiniti to

address all queries that we receive from our

private shareholders throughout the year.

We held our AGM as a physical meeting

in2025. 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/en/investors/

regulatory-news.

BOARD OVERSIGHT

INSTITUTIONAL INVESTORS

We offer our largest investors regular

meetings with the Chair, SID and any

members of the Board requested by

theinstitution. These meetings provide

valuable two-way communication enabling

investors to question Board members on

topics of their choice, and for the Board

togather feedback directly from the owners

ofour company. Thenext round of meetings

is due to be scheduled for May/June following

the publication of our full-year results.

PRIVATE INVESTORS

Our AGM has been held as a physical meeting

and therefore investors have the opportunity

to meet the Board before and after the AGM.

NO. OF EQUITY INVESTORS

7,539

INSTITUTIONAL INVESTORS

1,241

99.13%

OF SHARES

PRIVATE INVESTORS

6,298

0.87%

OF SHARES

NO. OF LISTED BONDS

16 PALACE STREET, LONDON

25LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

OUR PEOPLE AND CULTURE

This year, we focused on embedding our revised strategy

and purpose into every part of our people and culture

agenda, ensuring that our purpose is always reflected

inhow we lead, support, and develop our people.

Building on the launch of our cultural DNA

last year, we have continued to shape an

environment where high performance,

inclusion and future-focused capability

reinforce one another and directly support

our long-term ambition.

We are evolving our culture through clearer

expectations, stronger leadership, and better

tools, ensuring that how we hire, develop,

engage and support colleagues is fully

aligned to our strategic direction. This

includes strengthening the way we listen

tocolleagues, acting on insights, and

embedding the behaviours and standards

that define the Landsec DNA.

OUR CULTURE: THE POWER BEHIND

OURPERFORMANCE

Our culture is the engine that drives our

ambition. If we want to grow, move faster,

and raise our performance, we need an

environment where people are inspired and

empowered to do their best work every day.

Our cultural DNA is embedded across every

stage of the people experience. We have

strengthened our hiring approach by refining

our interview questions to reflect ourDNA,

and we continue to align our training and

development opportunities to build future

capability in line with our DNA. It is now

acentral component of our Annual

Performance Planning process, supporting

colleagues to reflect on how they bring it

tolife in their day-to-day work. It underpins

our recognition framework, shaping how

wecelebrate values across the organisation.

Our People Surveys ensure we remain

connected to how our people feel and where

our culture is enabling high performance.

Together, these elements form an integrated

system that reinforces ourculture at all key

touch points.

At the centre of it all is our diversity and

inclusion (D&I) ambition. When people

feelvalued and included, they’re able to

perform at their best and that’s what will

drive our success.

TALENT ACQUISITION

As part of our cultural shift, we have

refreshed our talent acquisition approach

toensure we attract and select people who

can perform attheir best today, and grow

with us in the future. Our approach places

emphasis on quality, potential and cultural

alignment, ensuring every hiring decision

supports both capability and culture.

To enable this, we have embedded Predictive

Index (PI) a talent optimisation tool, across

all hiring activities, providing hiring

managers with clear, science-based insight

into behavioural and cognitive alignment.

This ensures moreconsistent and

evidence-based hiringdecisions.

For senior roles, PI is complemented by the

Capability Development Assessment (CDA),

which offers a deeper understanding of an

individual’s capacity to manage complexity

and evolve with the organisation. Together,

PIand CDA form a structured, fair and

future-focused assessment framework that:

•

Prioritises potential over past experience

•

Embeds our cultural DNA into every

hiringdecision

•

Enables balanced, data-driven hiring

outcomes

This integrated approach ensures we are

building a workforce that not only meets

today’s needs but is equipped to deliver our

future ambition.

EMPLOYEE ENGAGEMENT

Understanding our people’s perspectives is

key to driving our success. We directly engage

employees regularly – a comprehensive survey

each spring and a pulse survey in the autumn.

This enables us to understand our colleagues’

views and experiences and where we need

tofocus on delivering the high-performance

culture we are working towards. This enables

us to benchmark against similar-sized

organisations, the real estate industry,

andother top-quartile organisations.

26 LANDSEC ANNUAL REPORT 2026

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 following on from

thesurvey outcomes have focused on

keypriorities, including cross-team

communication, career progression,

managing performance and workload.

Insights from the survey have as a result

shaped how we embed our high-performance

culture and cultural DNA, including:

•

Communicating what we’re working

towards and providing greater clarity on

performance – quarterly business updates

provided company-wide transparency on

our performance.

•

More accessible talent development

opportunities – Talent & Development

intranet pages and expanded on-demand

learning pathways, offering tailored

development opportunities for all.

TALENT MANAGEMENT

Our talent strategy is to elevate performance

and potential by embedding strong talent

principles, expanding capability, prioritising

experiential learning, strengthening

evidence-based decisions, and evolving

ourprogrammes to accelerate diverse,

high-potential talent. At Landsec, we

support the 70/20/10 approach to

development, based on the premise that

learning comes from three main sources:

•

70% from on-the-job experiences and

challenging assignments

•

20% from developmental relationships,

such as mentoring and coaching

•

10% from formal learning and training

82% of our line managers have engaged

withour bespoke Empowering Great Leaders

learning content. We remain committed to

supporting professional development, with 15

employees pursuing recognised qualifications

this year including eight apprenticeship levy

funded qualifications.

Through our bi-annual Group Talent Review,

we bring clarity to success and tailored

programmes. Key outcomes of this

approachinclude:

•

Succession planning: Comprehensive

succession plans for all Executive

Leadership Team and Senior Leadership

Team roles.

•

Landsec Builds: A next level leadership

development programme for emerging

leaders supporting them to truly live

theDNA of great Landsec leaders and

strengthen our future leadership bench.

26participants have joined this programme

which includes a Board level project.

•

Diversity and inclusion focused

programme: Enrich is a targeted

programme aimed at enhancing the

ethnicdiversity of our future talent

pipeline. 16 colleagues have participated

inthe first two cohorts with significant

shifts seen in their confidence,

intentionality, and career aspirations

following participation in the programme.

— Both Landsec Builds and Enrich will

benefit from enhancements including

the addition of senior programme

sponsorship, digitalisation content,

highperformance context and the

application of PI to maximise impact.

•

Development of our most senior leaders:

Via high-performance masterclasses.

To date, 78 of our colleagues have joined

thelong form, truncated or mini

masterclasses. The measures of success

areto retain and promote talent up and

through the organisation.

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, cultural

DNA, insights from senior leaders and a

Q&Awith our CEO, this provides our new

colleagues with a deeper connection to

ourbusiness and culture.

DIVERSE TALENT

We continued to embed our D&I strategy

‘Diverse Talent, Inclusive Culture,

InclusivePlaces’.

To support the recruitment and development

of Diverse Talent this year, we have:

•

Extended the scope of our diverse

candidate shortlist targets to include

management vacancies as well as

leadership vacancies. 90% of manager

andabove hires have been recruited from

gender and ethnically diverse shortlists.

•

Evolved our Landsec Futures internships

into a broader early careers programme,

now including a new insights week

designed to give candidates referred

through our charity partners greater

exposure to our business. Our first insights

week participants have progressed into

six-month internships in our Data & Tech

team, with our second cohort hosted in

ourConsumer Experience and Workplace

Operations teams.

•

Partnered with British Land, Grosvenor,

Hammerson, SEGRO and GPE to deliver

anindustry insights programme for 26

interns across the real estate sector. Now

approaching its third year, the programme

has already resulted in the successful

recruitment of a former Hammerson intern

into a permanent role at Landsec.

•

Made exit interviews opt-out, with new

questions on culture. This helps us learn why

people leave and what we can do better.

•

Launched an Apprenticeships Hub, making

it easier for colleagues to find levy-funded

training that supports their continued

professional development.

•

Piloted a cross business-unit promotion

panel to ensure promotion decisions are

fair and evidence-based.

•

Launched ‘Lean-in’ circles, led by Landsec

Women and bringing together over 60

women across the business to learn and

develop together through peer-led

mentoring circles.

27LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

INCLUSIVE CULTURE

Creating an inclusive culture is key to our

wider culture work. Alongside the ongoing

work of our affinity networks, our

‘Empowering Great Leaders’ course for

linemanagers brought in practical case

studies on neurodiversity and mental health

inclusion in a team context. This supported

our leaders in understanding how to create

the right environment to enable the

performance of diverse teams, a key aspect

of the DNA of great Landsec leaders.

INCLUSIVE PLACES

Following on from the launch of our inclusive

design principles last year, we partnered with

inclusive design experts Motionspot to review

our operational portfolio of offices and retail

spaces. Each report provides practical

insights into inclusive design strengths and

provides recommendations for improvement

which will be embedded into operational

plans in the coming year.

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.

“ I STARTED AT LANDSEC AS AN

INTERN WITH NO CORPORATE

EXPERIENCE, JUST CURIOSITY,

GRIT AND A WILLINGNESS

TOLEARN. WHAT KEPT ME

HERE WAS THE SUPPORT,

TRUST ANDRESPONSIBILITY

IWAS GIVEN SO EARLY ON.

NOW, ILEAD LANDSEC’S AI

&INNOVATION WORKSTREAM,

WORKING ACROSS SOME OF

THE MOST EXCITING TECH

OPPORTUNITIES IN THE BUILT

ENVIRONMENT. LANDSEC GAVE

ME ROOM TO GROW AND

EMPOWERED ME TO SHAPE

THAT GROWTH MYSELF.”

DECLAN ROYE

AI & INNOVATION LEAD

PAY GAP

We reported on our 2025 ethnicity and

gender pay gaps for the Landsec Group

withfull details available on our website.

•

Our mean gender pay gap increased

from28.2% in 2024 to 30.4% in 2025

•

Our median gender pay gap increased

from29.2% to 30.3% over the same period

This year we’ve seen a slight increase in our

mean and median gender pay gaps. This was

driven by small shifts in the distribution of

women across our pay quartiles, with

increased female representation in roles

within the two lowest pay quartiles and

upper middle pay quartile, and a 1.1%

decrease in the upper pay quartile.

As a business that’s relatively small by

headcount, even a small number of changes

in representation at our most senior levels

will impact our pay gap.

•

Our mean ethnicity pay gap reduced from

39.6% in 2024 to 32.3% in 2025

•

Our median ethnicity pay gap reduced

39.5% to 32.3% in the same period

Both our mean and median ethnicity pay gaps

have improved since 2024 by c. 7%.

This is also due to shifts in the distribution

ofethnic minority representation across the

business. Representation dipped slightly in the

lower and lower middle quartile and increased

in the upper middle and upper quartiles.

GENDER BY MANAGEMENT LEVEL

CHART 16

EXECUTIVE

SENIOR LEADER

LEADER

MANAGER

PROFESSIONAL

SUPPORT

WHOLE ORGANISATION

Male Female

Details of the gender diversity of the Board can be found on page 58.

ETHNICITY GROUP BY MANAGEMENT LEVEL

CHART 17

EXECUTIVE

4 2 2

7 4 3 2 2

10 4 1211

11 24 2

8 8 212

SENIOR LEADER

LEADER

MANAGER

PROFESSIONAL

SUPPORT

WHOLE ORGANISATION

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. We have

seen little change over the past year with representation increasing by around 2% at all levels except leader

level where representation decreased slightly by 1.5% and at senior leader level where it increased by 3%.

Totals may not add up to 100% due to rounding.

OUR PEOPLE AND CULTURE CONTINUED

28 LANDSEC ANNUAL REPORT 2026

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.

For full performance updates please see our

Sustainability Additional Disclosures 2026

andSustainability Data Tables 2026 at

landsec.com/en/sustainability/key-information/

reports-benchmarking.

PERFORMANCE AT A GLANCE

We have continued to make good progress against our ambitious commitments and targets set across our three pillars:

PILLAR TARGET HIGHLIGHTS

BUILD WELL

Our commitment to

enhance the health

of the environment

See more on pages 30-32

47% reduction in absolute GHG emissions

by 2030 from a FY20 baseline

33%

reduction in absolute carbon emissions

50% reduction in average upfront

embodied carbon compared with

a typical building by2030

39%

reduction in embodied carbon across

development pipeline

Reduce energy intensity by 52%

by 2030 from a FY20 baseline

27%

reduction in energy intensity

Deliver our nature strategy across our

operationalassets and development schemes

800 m

wildflower planting across our portfolio

LIVE WELL

Our commitment

to support our

communities to thrive

See more on page 33

£200m of social value by 2030

from a FY20 baseline

£147m

social value created

30,000 people empowered to enter

the world of work from a FY20 baseline

19,049

people empowered

ACT WELL

Our commitment

to being a fair,

responsible business

See more on page 34

Build relationships with our strategic

suppliers enhancing sustainable practices

throughout our supply chain

98%

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

SUSTAINABILITY GOVERNANCE

During the year, we evolved our sustainability governance model to further embed sustainability into the way we operate across the business.

While Board oversight and Executive Leadership Team (ELT) accountability remain unchanged, we moved from a dedicated central sustainability

team to embedding sustainability expertise within business units and enabling functions. This model is supported by a cross-business

Sustainability Hub, which brings together specialist expertise to help shape our approach to sustainability, share best practice and coordinate

activity. This change strengthens ownership, integration and delivery of sustainability objectives, ensuring sustainability considerations are

embedded in decision-making and day-to-day operations across Landsec. Further details can be found on page 35.

29LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

OUR APPROACH TO SUSTAINABILITY CONTINUED

DECARBONISING OUR PORTFOLIO

Addressing climate change remains a central

focus of our sustainability strategy. We

continue to progress towards our commitment

to achieve net zero carbon by 2040, supported

by our science-based target (SBT) to reduce

our scope 1, 2 and 3 emissions by 47% by 2030

and by 90% by 2040 from a FY20 baseline.

During the year, we reduced emissions

through a combination of improved energy

performance, targeted capital investment

and low-carbon design decisions. Our total

emissions have reduced by 33% compared

toour FY20 baseline. Scope 1 and 2 emissions

have reduced by 39% primarily driven by

energy efficiency across our portfolio and

grid decarbonisation. Scope 3 emissions

reduced by 32% due to a combination of

embodied carbon reduction and enhanced

suppliers emissions data.

We have initiated a review of our SBTs to

align with the latest Science Based Targets

initiative (SBTi) Building Sector Criteria.

Thisprocess will ensure our targets reflect

updated guidance, portfolio changes and

thelatest climate science, and continue to

support our climate transition. We expect

tosubmit revised targets to the SBTi for

validation once this work is complete in FY27.

REDUCING OPERATIONAL CARBON

We continue to make progress in

decarbonising our portfolio and improving

energy efficiency. In FY26, we achieved an

energy intensity reduction of 27%, keeping

uson track to deliver our target of a 52%

reduction by 2030 from a FY20 baseline.

Our £135m Net Zero Transition Investment

Plan (NZTIP) remains central to delivering

ourSBT, with further investment and

implementation during the year.

To date, wehave invested £88m, including

advancing the transition of our office

buildings to low-carbon heating and cooling

through theair source heat pumps (ASHPs)

retrofits and increasing on-site renewable

energy generation across our retail assets

through solar PV installations.

During the year, ASHP retrofit activity

progressed across four buildings, with

approximately 30 units installed or

underway, supporting our ambition to

remove fossil fuel-based systems from our

portfolio. We are already seeing the benefits

of this transition, including reduced energy

use, as demonstrated at Dashwood House.

We also continued to expand on-site

renewable energy generation across our

retail assets. In March 2026, we completed

the solar PV installation at Braintree Village,

which is expected to generate 8% of total

electricity demand. This builds on the success

of Gunwharf Quays installation, where the

solar PV system has generated £300,000

inadditional revenue since installation.

Through our NZTIP, further installations are

planned, including a 1,270 kWp system at

Bluewater which is expected to deliver over

£200,000 in annual revenue.

During the year, we strengthened our energy

management capabilities through the

mobilisation of integrated energy

ASHP AT DASHWOOD HOUSE ONE YEAR ON

In March 2025, Dashwood House

became our first occupied building to

complete the transition to ASHPs,

eliminating onsite gas-fired systems.

Following a year of seasonal

commissioning and optimisation in

partnership with engineering

consultants, the system has delivered

strong performance. Over the first 12

months, the building achieved a 33%

reduction in total energy use, resulting

in annual cost savings of more than

£150,000, while improving system

reliability and operational resilience

aligned with actual building demand.

EPC RATINGS

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

Inaddition, 68% of our portfolio – 73% of offices and 65% of retail – is already EPC B

orabove. The improvement from last year is primarily driven by the completion of

ASHPretrofits and new developments.

FY26 EPC RATING (BY ERV)

CHART 19

LANDSEC

13 17 2

9 18

17 15 3

OFFICE

RETAIL

A-B C D E

NET ZERO TARGET PROGRESS

CHART 18

350,000

300,000

250,000

200,000

150,000

100,000

50,000

tCO

FY30

Near-term target

-47%

160,964

FY25 FY26

-33%

200,647

-33%

200,978

FY24

-24%

228,185

FY20 Baseline

300,338

FY40

Long-term target

-90%

29,776

Scope 1 Scope 2 Scope 3 Target

BUILD WELL

30 LANDSEC ANNUAL REPORT 2026

management platforms, including Kiveev

and Trace, which now provide a centralised

source of utility data across our portfolio.

These platforms enhance our ability to

monitor performance, identify anomalies

and target energy reduction opportunities,

supporting more proactive and effective

energy management and reporting.

We have also enhanced our smart building

capabilities through the deployment of

theKode Labs platform, which is now

operational across 12 buildings, with further

eight sites planned for mobilisation during

FY27. By integrating building management

and operational systems into asingle

interface, the platform provides enhanced

visibility and control, enabling usand our

service partners to optimise building

performance and support ongoing

reductions in energy consumption.

REDUCING CARBON IN CONSTRUCTION

We design and develop sustainable, low-

carbon buildings, with all our commercial

developments targeting BREEAM Excellent

orabove. This supports our ambition to

achieve an average upfront embodied carbon

reduction of 50% compared with a typical

development by 2030. Timber Square, recently

completed, and Thirty High exemplify this

approach through extensive retention of

existing structures, helping to significantly

reduce embodied carbon. These projects

aretargeting upfront embodied carbon

intensities of approximately 522 kgCO

₂

e/sqm

and 347 kgCO

₂

e/sqm respectively.

During the year, our portfolio projects,

including MYO King’s Cross and 5 New Street

Square, demonstrated our continued focus on

delivering retrofit projects, achieving upfront

embodied carbon intensities of 313kgCO

e/sqm

and 131 kgCO

e/sqm respectively, significantly

lower than the embodied carbonof a typical

new development.

While this is one of the most challenging

aspects of sustainability within real estate,

our development team continues to prioritise

innovation, identifying and scaling low-

carbon solutions across our projects, with

delivery embedded in our annual bonus plan

for Executive Directors and all employees.

We are driving the future of low-embodied

carbon construction by scaling innovation

inthe sourcing and use of construction

materials. As signatories to Climate Group’s

SteelZero and ConcreteZero campaigns, we

have committed to procuring 100% net zero

steel and concrete by 2050, with an interim

target of 50% lower-emission materials by

2030. We are already meeting the 2030

interim targets, with over half of the concrete

used being classified as low-carbon and over

75% of steel meeting SteelZero criteria.

Through the Accelerating Concrete

Decarbonisation Group (AC-DG), we have

partnered with 30+ other companies

including peers, contractors and consultants

to co-fund three prototype test structures

using novel, low-carbon concrete mixes to

demonstrate their technical and commercial

viability. In addition, we engage our supply

chain to encourage responsible sourcing of

bio-based materials, including the use of

fully PEFC- or FSC-certified timber at Timber

Square, which provides full chain of custody

from forest to construction site.

We continue to support ‘beyond value

chainmitigation’ (BVCM) to address the

unavoidable residual emissions from our

newdevelopments. This includes investing

inactivities that avoid, reduce, or remove

and store carbon emissions, also known

ascarbon offsets. We have secured

high-quality, nature-based carbon credits,

comprising both removals and avoidance

carbon credits from the Kuamut Rainforest

Conservation Project in Malaysia and

jurisdictional reduction credits through the

Lowering of Emissions by Accelerating Forest

Finance (LEAF) coalition. These credits will

beretired at practical completion of the

relevant developments.

ENHANCING NATURE AND GREEN SPACES

We continue to progress 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. Asset specific

Nature Action Plans are being implemented

across Workplace and Retail, and our

‘naturehandbook’ continues to guide

planting palettes and landscape decisions

across our portfolio. During the year,

highlights included over 800 m

of wildflower

planting, the installation of bespoke solitary

bee hotels and three Workplace assets

receiving Gold awards in London in Bloom.

POLLINATOR FRIENDLY GREEN ROOF AT N2

At n2, we have enhanced the green roof

to strengthen biodiversity and climate

resilience in the built environment,

ensuring our existing spaces work even

harder to support nature. Drought-

tolerant wildflowers and perennials

have been introduced alongside new

habitat features, including deadwood

piles, sand mounds, pebble banks and

gabion planters, creating a more

diverse and resilient ecosystem that

supports pollinators, invertebrates and

bird species.

A dedicated bee-nesting planter has

also been installed, and planned

acoustic insect monitoring will provide

long-term data to better understand

ecological performance over time.

Theroofscape has been designed to

offer a calm and restorative outlook

for future customers at Thirty High,

reflecting our commitment to

promoting health, wellbeing and

community engagement through

access to nature.

RETROFIT AT MYO KING’S CROSS

MYO King’s Cross demonstrates

howrefurbishment-led development

can reduce embodied carbon, while

delivering high-quality workspace and

measurable social value. By retaining

and upgrading the existing structure,

supported by sustainable low-carbon

CAT B fit-out, the project achieved

anupfront embodied carbon intensity

of 313 kgCO

₂

e/m², materially below

typical new-build benchmarks, while

securing a 5-star NABERS UK Design

Target rating and EPC A. Fit-out

materials were also redistributed

forreuse, avoiding approximately

95tonnes of CO₂ and delivering

estimated £610,000 of social value.

31LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

OUR APPROACH TO SUSTAINABILITY CONTINUED

USING RESOURCES EFFICIENTLY

MATERIALS

Launched in 2024, our Materials Brief is

nowembedded across our development

portfolio and is playing a central role in

reducing embodied and whole-life carbon.

Itguides our design teams to identify

opportunities for material reuse, alternative

specifications and lower-carbon innovations,

in collaboration with our supply chain

partners. The Brief also ensures alignment

with green building certification

requirements and promotes responsible,

ethical sourcing, strengthening governance

while reducing lifecycle impact.

During the year, this approach delivered

substantial reuse across the portfolio.

AtTrinity Leeds, 25,000 m² of raised

accessflooring was carefully extracted

andstored for future reuse within our

portfolio, retaining material value and

avoiding unnecessary embodied carbon.

AtMYO King’s Cross, the Brief continued

toinform practical interventions including

the reuse of existing ceiling tiles and

externalpaving tiles.

ACCELERATING MATERIAL REUSE

This year, we joined ROMULUS,

anindustry-wide material reuse

platform,backed by local councils,

designed to facilitate the redistribution

of surplus construction materials

across projects and organisations.

Theplatform creates visibility of

surplus materials across organisations,

supporting circular economy principles

and reducing embodied carbon

andwaste.

Through our participation, we have

increased collaboration across the

supply chain and identified practical

reuse opportunities during strip-out

and refurbishment phases. During

theyear, 67 timber doors from

theplatform were reused at 55 Old

Broad Street, alongside 40sanitary

fittings redistributed forexternal

reuse. At Hill House, 24material

opportunities, including glass,

liftsand raised access flooring,

wereshared via the platform,

expanding reuse potential across

themarket.

Through our Materials Dashboarding tool,

carbon-intensive ‘hotspot’ materials are

identified early in the design process. Multiple

procurement routes are then assessed to

determine the lowest-carbon and most

responsible options before specification.

During the year, both Hill House and Buchanan

Galleries undertook the dashboarding process,

identifying 39 clear procurement pathways

forkey building materials.

WASTE

This year we continued to divert 100% of

waste from landfill, and increased our

operational waste recycling rate to 68%

(FY25: 65%). This improvement reflects

onsiteprocesses and targeted occupier

engagement, particularly within Workplace

where our Aspire partners have actively

engaged with 88 customers to support better

waste segregation and recycling practices.

The introduction of ‘Simpler Recycling’

legislation for businesses in England and

Wales has had minimal impact on our

operations, reflecting our long-standing

focus on recycling and waste segregation

over the past decade.

WATER

Water and climate change are inextricably

linked; extreme weather events exacerbate

water stress, making resources more scarce,

volatile, and prone to pollution, while

increasing operational and supply chain risks,

including growing pressures on water costs in

some regions. To build portfolio resilience, we

have evolved our strategy into a formalised

framework centred on three guiding

principles and corresponding metrics.

Our headline target is to increase harvested

water by 10% by 2030 against a FY26

baseline, reducing our reliance on freshwater

across the Landsec portfolio.

In a collaborative effort to embed these

principles, all our service partners have

designed bespoke water management

training tailored to their specific roles. Todate,

over 100 service partner colleagues have

already attended this training, strengthening

water stewardship and awareness throughout

our operations. Moving forward, we are

implementing targeted pollution training

forsites with sensitive receptors to further

mitigate environmental risk.

Conservation: Eliminate unnecessary use

by changing behaviour and processes

We will optimise rainwater and greywater

harvesting across the Landsec portfolio,

targeting a 10% increasing in the amount

of harvested water

by 2030 compared

with a FY26 baseline

Efficiency: Reduce water use by adopting

efficient design and technology to do

‘more with less’

We will uphold high water efficiency

standards in our developments by

leveraging our Sustainable Development

Toolkit and creating a comprehensive

sustainable fit-out guide

Protection: Continue to protect the local

water catchment area prioritising assets

located in sensitive areas

All relevant Landsec colleagues and service

partners will conduct annual water

management training and specialist water

pollution training for sites with sensitive

water receptors

1. 10% increase in the total amount of consumed harvested rainwater and greywater across the Landsec portfolio.

See further information on our TNFD disclosure within our Sustainability Additional Disclosures 2026.

For more information on our Build well commitments, visit landsec.com/en/sustainability/sustainability-

strategy/build-well.

PRINCIPLE METRIC OR TARGET

32 LANDSEC ANNUAL REPORT 2026

CREATING OPPORTUNITIES

ANDTACKLINGLOCAL ISSUES

ENHANCING SOCIAL MOBILITY

Working with our local communities and

ensuring we are addressing local need in the

areas we serve is part of our focus of creating

sustainable places. Through Landsec Futures,

we aim to enhance social mobility in our

business and the wider property industry,

supporting people with opportunities and

introducing fresh perspectives into our

business. Our aim is to empower 30,000

people from underrepresented socioeconomic

backgrounds towards the world of work,

creating £200m of social value by 2030,

froma FY20 baseline.

Since we launched Landsec Futures in 2023, we

have continued to make considerable progress

towards this target, supporting 19,049 people

towards employment and generating £147m

social value. Our programmes operate across

the UK, with the partnerships reflecting local

needs in each area, and are supported by our

colleagues on site.

We have continued to develop partnerships

with employability and social mobility

charities, including Spear, who support

young people aged 16-24 who are not in

employment, education or training (NEET)

and face multiple barriers to employment.

Across Spear centres in London and Leeds,

we support through financial investment,

employee engagement and employment

opportunities. In June 2025, we set a

partnership goal to support 10 Spear trainees

into employment through our supply chain

and brand partners. We exceeded this target

supporting 13 trainees, demonstrating how

partnerships can unlock real career

opportunities for young people facing

significant barriers.

This year, we have also evolved our Landsec

Futures Internships into a broader early

careers programme. To find out more, see

page 27 in Our People and Culture section.

ENGAGING OUR LOCAL COMMUNITIES

Our places are shaped by the people who

live,work, and spend time in them, and we

know that these communities are essential

to helping our destinations thrive. That’s

whywe prioritise listening – taking time to

understand what matters to local people

andwhat they want from the spaces we

create and manage. By working closely with

communities, we build a clearer picture of

local needs and aspirations, ensuring our

places respond to and reflect them.

GREENER FUTURES YOUTH FESTIVAL

In May 2025, we launched a first-of-its-

kind sustainability festival at Mayfield

Park, Manchester alongside social value

specialist, Ahead Partnership. The

day-long event, aimed to get students

involved and inspired with green skills

and the green economy, engaged over

100 local students. Through a series

ofworkshops, delivered by us and our

supply chain partners, students learnt

about green skills and related career

pathways, and attended a showcase

featuring sustainable technology and

ideas. Theday culminated in a creative

design sprint, where students

reimagined different low-carbon

communities of the future, putting

theday’s learnings into action.

“ OUR PARTNERSHIP WITH LANDSEC

HAS DONE MORE THAN ACHIEVE OUR

GOAL; IT IS TRANSFORMING LIVES.

BYCONNECTING SPEAR TRAINEES

TOEMPLOYMENT OPPORTUNITIES

ACROSS LANDSEC’S NETWORK,

YOUNG PEOPLE ARE ACCESSING

THEPURPOSEFUL, SUSTAINABLE

WORK THEY NEED TOTHRIVE.”

LYDIA CAVENEY

EMPLOYER PARTNERSHIPSMANAGER, SPEAR

INCLUSIVE PLACES

We are committed to designing, building

andoperating places which are inclusive

andmeet the needs of the individuals and

communities they serve. As part of this,

ouraim is that all of our destinations are

accessible, welcoming and responsive to

adiverse range of individual needs.

MOTIONSPOT

To support us in creating truly inclusive

places, we partnered with inclusive

design experts Motionspot to review

our operational portfolio. During the

year, Motionspot assessed 44 assets,

providing insights into accessibility

and inclusion across key themes

fromour Inclusive Design Principles

including sense of belonging,

accessibility and amenities and

activities. Going beyond compliance,

this project is all about sharing best

practices across both our retail and

workplace portfolios, and identifying

opportunities to enhance accessibility

and create a welcoming experience

for everyone across our places.

ENHANCING WELLBEING

In line with our commitment to supporting

customers’ physical and mental wellbeing,

wehave transitioned from portfolio-wide

WELL certification to embedding health

andwellbeing principles into our design,

development and operational processes.

Wecontinue to work with specialist

consultants to ensure these considerations

remain integral to our assets, supporting

occupiers who wish to achieve WELL

certification for their own spaces. In practice,

we continue todeliver healthy workplaces

forour customers and occupiers, through

services such as air quality monitoring and

wellbeing-focused amenities.

For more information on our Live well commitments,

visit landsec.com/en/sustainability/sustainability-

strategy/live-well.

LIVE WELL

33LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

EMBEDDING SUSTAINABILITY

ENGAGING OUR EMPLOYEES

To ensure that every colleague contributes

todelivering our sustainability strategy, we

continue to include sustainability metrics

inthe Long-Term Incentive Plan (LTIP) and

Annual Bonus Plan for Executive Directors

and employees.

WORKING WITH SERVICE PARTNERS

ANDCUSTOMERS TO IMPROVE

ENERGYPERFORMANCE

We continue to work closely with

service partners and customers to

identify practical opportunities to

improve energy performance across

our buildings. Lighting control training

for our service partners, combined with

real-time data analysis from the Kode

Labs smart building platform, has

enabled a more proactive and targeted

approach to energy management.

Todate, this has enabled 75 efficiency

initiatives across 65 customers,

including lighting optimisation through

scheduled perimeter shut-offs and

refined sensor logic, as well as

refinements to building controls such

as widening temperature deadbands

to eliminate simultaneous heating

andcooling. We have also worked

withcustomers to better align plant

operation with public holidays and

special events, helping to reduce

avoidable energy use.

ENGAGING OUR CUSTOMERS

Following deep-dive energy audits for

38office customers, delivered between

2021and2024, we identified key efficiency

themesthat offer scalable benefits across

our workplace portfolio. Over the past year,

our workplace teams have continued to

actively engage with customers to advise

onand support the implementation of

low-to-no-cost initiatives, including lighting

and BMS optimisation.

DOING THE BASICS BRILLIANTLY

SUSTAINABLE PROCUREMENT

We continue to work with our suppliers to

achieve our sustainability commitments

andsupport positive change beyond our

ownbusiness. Since publishing Our Supply

Chain Commitment in 2022, over 1,000

suppliers, including 98% of our strategic

suppliers, have signed up.

During the year, we further strengthened

engagement with our strategic suppliers

toenhance transparency and performance

inline with Our Supply Chain Commitment.

We introduced a focused KPI reporting

process covering climate change, health,

safety and security, human rights and

business ethics, supported by supplier

briefings and clear guidance on data

submission. The information collected

supports our Scope 3 carbon reporting,

annual disclosures and broader governance

oversight, while enabling more effective

collaboration with suppliers on shared

sustainability priorities.

TACKLING MODERN SLAVERY

We require all employees to complete

mandatory modern slavery training and

continue to strengthen awareness across

oursupply chain. During the year, we have

embedded our refreshed modern slavery

riskframework, with risk assessments at

project and supplier level, supported by

targeted independent supply chain audits

with Achilles.

We continue to engage contractors and

facilities management partners to ensure

appropriate safeguards and whistleblowing

measures are in place, and delivered modern

slavery workshops for supply chain partners

through the Supply Chain Sustainability

School to build capability and oversight.

CREATING HEALTHY, SAFE AND SECURE SPACES

This year we maintained our ISO 45001

certification and BS 9997 fire-safety

management-system certification, both

subject to independent auditing. We

continue to focus our safety improvements

on areas where we can have the biggest

impact, with the intention of delivering an

effective and consistent standard of health,

safety and wellbeing across all of our assets

to the benefit of our people, partners and

guests. Building safety remains one of our

priority areas, and we are committed as a

responsible building owner and developer to

meeting, and where possible exceeding, our

obligations under the Building Safety Act.

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 implemented our revised

procedures for conflicts of interest and gifts

and hospitality, and launched training on

thefailure to prevent fraud for all colleagues.

We also updated our Code of Conduct to

incorporate the Financial Crime Policy

released in the previous year.

For more information on our Act well commitments,

visit landsec.com/en/sustainability/sustainability-

strategy/act-well.

OUR APPROACH TO SUSTAINABILITY CONTINUED

34 LANDSEC ANNUAL REPORT 2026

ACT WELL

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 address climate risks.

Duringthe year, we have strengthened

oursustainability governance, embedding

sustainability expertise across business

unitsand enabling functions, supported

byacross-business Sustainability Hub.

We are making steady progress on our

NZTIPand remain on track to meet our

science-based target. The NZTIP has been

incorporated into our financial statements,

as described within the Notes to the

financialstatements on page 98.

We are also monitoring development of

theUK Sustainability Reporting Standards

(UK SRS), and are assessing the implications

for our disclosures to ensure continued

alignment with market requirements and

best practices.

This statement is consistent with the

requirements of the London Stock Exchange

(LSE) UK 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 2026 in relation

to governance, strategy, risk management,

and metrics and targets.

GOVERNANCE

KEY ACTIVITIES IN THE YEAR

Decision-making: The Remuneration

Committee reviewed ESG targets and

respective outcomes included in the

AnnualBonus Plan and LTIP in line with the

Remuneration Policy approved at 2024 AGM.

Reporting: Board and ELT receive quarterly

sustainability reports tracking progress

against sustainability targets.

TASK FORCE ON CLIMATE-RELATED FINANCIAL

DISCLOSURES(TCFD) STATEMENT

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 OVERSIGHT

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 and updates as

required. This year, the Board received a detailed

update on our sustainability strategy and

performance, progress of our NZTIP and

sustainability governance. These updates 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 strategy and long-term

success, including significant investment

decisions. This includes discussing the climate

risk exposure of potential new acquisitions and

their impact on our portfolio.

AUDIT COMMITTEE

Supports the Board in managing risk, and

isresponsible for reviewing our principal risk

management and internal-control processes.

Reviews and recommends to the Board 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 science-

based target.

Annual Bonus Plan for Executive Directors and

all employees includes energy efficiency and

embodied carbon targets.

For details on Annual Bonus Plan and LTIP,

seepages70-75.

MANAGEMENT ROLES, RESPONSIBILITIES AND ACCOUNTABILITY

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 sustainability risks and opportunities, including those pertaining to climate change.

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

SUSTAINABILITY HUB

A cross-business forum, chaired by the Chief Corporate Affairs Officer, comprising

colleagueswithsustainability expertise from across Landsec to support the ELT

indeliveringoursustainabilitystrategy and managing climate-related risks.

Recommends the approach to sustainability and climate-related risks and helps

tocoordinateactivityto ensure consistent delivery of the sustainability strategy

andclimate-relatedriskmitigation plans across our business.

EMBEDDED SUSTAINABILITY EXPERTISE

Sustainability capability is embedded across the business, within business units and enabling functions.

Integrates sustainability and climate considerations into decision-making and day-to-day operations,

monitors progress, and ensures appropriate mitigation and adaptation plans are in place.

Landsec governance structure is further discussed on pages 50-59 and on our website

landsec.com/en/about/our-commitments/corporate-governance

35LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

TASK FORCE ON CLIMATE-RELATED FINANCIAL

DISCLOSURES(TCFD) STATEMENT CONTINUED

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:

1. Transition risks: associated with the

shiftto a low-carbon economy, including

regulatory changes, market shifts, and

evolving consumer preferences

2. 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) – under 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 work with Munich Re to assess physical

risks based on the location of assets and

their exposure to individual hazards as a

consequence of climate change across the

time horizons and the scenarios described

above. 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.

We have identified and assessed risks

acrossall areas of our business, including

investments, developments and operations.

Mitigation of these risks is discussed in the

section below.

Based on the risks identified in our scenario

analysis, and following our Group risk

management framework and methodology,

we have assessed these 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

Our assessment concluded that our current

portfolio is not highly exposed to physical

risks due to 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 SBTi

and includes a near-term target to reduce

our absolute Scope 1, 2 and 3 emissions by

47% by 2030 from a FY20 baseline, and

along-term target to reduce our emissions

by 90% by 2040 from the same baseline.

Through our £135m NZTIP, launched in 2021,

we are ensuring we meet our near-term

science-based target and our portfolio

achieves a minimum EPC B. To date, we have

invested £88m, completing ASHP retrofits

across three assets. We recover a portion

ofthis investment through the service charge

as part of lifecycle replacements. We also

derive energy efficiency and related cost

savings as a result. For details on the NZTIP

and SBT progress, see pages 30-31.

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, 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 targets, enhances

our understanding of their operations and

informs 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 and improve 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 enhance asset

values and resilience to yield pressures.

This has been exemplified by the valuation

increase following the installation of solar PV,

due to additional revenue and reduction in

operational costs from on-site electricity

generation. This is also supported by the CBRE

Sustainability Index, which shows a more

resilient total property return for energy

efficient assets.

The NZTIP is factored into our asset valuations,

alongside expected uplift in ERVs. The cost

ofthe NZTIP is expected to fluctuate due to

inflation and portfolio composition changes.

DEVELOPING LOW-CARBON BUILDINGS

We are committed to design and build

low-carbon buildings, ensuring low upfront

embodied carbon emissions, low operational

36 LANDSEC ANNUAL REPORT 2026

<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).

3.3% 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 E. Risk is considered low, as 100%

of our assets are 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 are highly dependent on design and nature

ofdevelopments.

Opportunity associated with:

•

Increasing occupier interest in assets with high sustainability

credentials, including BREEAM and EPC, presents a medium

opportunity as our portfolio transitions to net zero, with 70% BREEAM

certified and 68% 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). 3.3% 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, as these risks remain broadly

consistent with those discussed under the <2°C scenario.

MEDIUM TERM

(UNTIL 2030)

We are taking

actionnow until 2030

tomeet our near-term

science-based 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 32% of our current portfolio that has

EPCbelow B.

•

Stringent planning requirements, including 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, as it

impacts our developments.

•

Build cost inflation, supply chain constraints and policy uncertainty

related to the low-carbon transition may increase the cost and reduce

the availability of low-carbon materials and technologies, putting

pressure on development returns and potentially affecting progress

towards our science-based target (SBT). Risk is considered high, as it

could impact our ability to meet our SBT and respond to increasing

occupier expectations for low-carbon buildings.

Opportunity associated with:

•

Continued increase in occupier demand for sustainable assets, 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 develop

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, 10%

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

legislative changes are expected to continue driving reductions in

carbon emissions, including:

•

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

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

degree of uncertainty at this stage. We keep monitoring emerging

discussions, 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

target will be required, demanding capital expenditure, investment in

new technologies and innovative low-carbon materials and processes.

Progress will also depend on effective engagement with our supply

chain and customers to accelerate decarbonisation across the

valuechain.

Significant increase in physical risks from hotter, drier

summers; warmer, wetter winters and more frequent

severe weather events. By 2100, 10% 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 4.5% 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 respond to increase in

physical risks.

37LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

TASK FORCE ON CLIMATE-RELATED FINANCIAL

DISCLOSURES(TCFD) STATEMENT CONTINUED

emissions and fossil-fuel free assets powered

by renewable electricity. This commitment

isembedded within 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 is a key consideration in our

gateway approval process.

For each development, we aim to reduce

construction-related emissions by prioritising

structural retention and material reuse,

adopting efficient design and modern

methods of construction, and specifying

low-carbon materials. We balance upfront

and whole-life carbon to ensure our design

decisions do not negatively impact long-term

operational and maintenance carbon

emissions of our assets. We also explore

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 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. Landsec is playing an active role

in shaping the emerging UK Net Zero Carbon

Building Standard (NZCBS), contributing

tomultiple working groups and submitting

two pilot projects: Timber Square (office)

andMayfield (residential). Reflecting our

long-standing commitment to low-carbon

buildings, our two projects reaching practical

completion in 2026, Timber Square and Thirty

High, are closely aligned with the Standard’s

requirements, despite having been designed

over five years ago.

For further information on our approach to develop

low-carbon buildings and on industry engagement,

see pages 31-32.

Following the issuance of our second Green

Bond (£350m) in September 2024, supporting

our transition to net zero, we published our

Green Bond Report 2025, which includes the

allocation and impact report. Net proceeds

from this bond have been fully allocated

tofour eligible green projects within the

categories Green Buildings – Construction

ofnew developments (Timber Square and

Thirty High) and Green Buildings – Major

refurbishments (5 New Street Square

andMYO King’s Cross). Our Green Bond

Framework and Green Bond reports are

available on our website: landsec.com/en/

investors/debt-investors/green-bonds.

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.

Increased demand for low-carbon materials

could impact material availability, leading

todelay in completion dates and increasing

construction costs in our development

pipeline.

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%.

Proceeds from Green Bonds are allocated

tolow-carbon, eligible new developments

and major refurbishments.

BUILDING RESILIENCE TO A CHANGING CLIMATE

Although 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, such as sustainable

urban drainage systems (SUDS). 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 (3.6% 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, we

anticipate that changes to our strategy and

financial planning may be required, including

38 LANDSEC ANNUAL REPORT 2026

divestment of less resilient assets, 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 nine principal risks, and is

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, enabling us to consider

interdependencies and mitigation plans.

The primary responsibility for management

of each risk is assigned to a specific ELT

member, who is responsible for ensuring

theoperating effectiveness of the internal

control systems and for implementing key

risk mitigation plans.

In line with the sustainability governance

andthe establishment of the Sustainability

Hub during the year, the primary responsibility

for climate risk sits with the Chief Corporate

Affairs Officer. This is supported by embedded

sustainability expertise across the business

and coordinated through the Sustainability

Hub, which brings together colleagues from

across business units and enabling functions

to support the identification, assessment

andmanagement of climate-related risks

and opportunities.

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 40-46.

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FY20 base year

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

aFY20 baseline

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

aFY20 baseline

Reduce energy intensity by 52% by 2030 compared with a FY20 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 SBTi guidance.

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

e/m

GIA and typical

residential: 850 kgCO

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 FY26 FY25

Reduction in energy intensity from FY20 baseline 27% 23%

Total energy from renewable sources 74% 68%

Percentage of portfolio which is BREEAM-certified (by value) 70% 63%

Percentage of portfolio which is EPC B or above (by ERV) 68% 56%

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

Investment in energy-efficiency measures implemented in the year £31.4m £24.6m

Estimated annual savings from energy-efficiency measures

implemented in the year

£0.9m £1.3m

Percentage of portfolio exposed to climate physical risks

6% 6%

3. Portfolio exposure is based on Munich Re’s overall risk score that combines earthquake, storm, flood and

wildfire risks.

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

Additional Disclosures 2026 and Sustainability Data Tables 2026 available at landsec.com/en/

sustainability/key-information/reports-benchmarking. Additionally, our Streamlined Energy

and Carbon Reporting (SECR) on pages 156-158 provides details of our energy consumption and

carbon emissions.

39LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

MANAGING RISK

Our risk management framework is central

to how we oversee our business and our

assets, supporting sustainable growth while

advancing our strategic goals.

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. Key

priorities during FY26 have been leveraging

our risk management and control practices

to support compliance with the Code and

working to enhance our resilience against

asignificant technical outage.

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 effective

•

The Audit Committee: responsible for

reviewing the effectiveness of the risk

management and internal control system

during the year

•

The Executive Leadership Team (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

OUR KEY SUCCESSES IN FY26

•

Work performed to ensure our

preparedness for the requirements

of Provision 29 of the UK

CorporateGovernance Code 2024

(theCode)

•

Continued to support our

decentralised risk management

framework, strengthening the

interactions between the ‘top-down’

and ‘bottom-up’ risk management

processes with the introduction

ofabi-annual risk deep-dive at

AuditCommittee

•

Increased the scope of our internal

risk and control forum to enhance

oversight of our control mechanisms

and work on areas of remediation

•

Enhanced our business continuity

structure, with a specific focus

onresilience and our ability to

respond in the event of a significant

technical outage

•

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 and support risk management

across 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 PRIORITIES

IN FY27

•

Streamlining and

optimising controls to

support our compliance

with Provision 29 of

theCode

•

Enhance our business

continuity framework

40 LANDSEC ANNUAL REPORT 2026

RISK MANAGEMENT FRAMEWORK

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, GOVERNANCE AND

COMPLIANCE TEAMS

•

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

TOP-DOWN

Oversight,

identification,

assessment and

mitigation of risk

ata Group level

41LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

MANAGING RISK CONTINUED

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

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 twice

ayear, 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 43 outlines

theprincipal risks faced by Landsec, the

appetite for these risks and the gross and

netrisk ratings.

assurance and coverage of critical risk areas.

The Risk and 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. The

Audit Committee also receives deep dives

into topical risks, providing additional insight

into key areas of focus.

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 62-67.

42 LANDSEC ANNUAL REPORT 2026

Our principal risks consist of the nine most

significant Group risks and are categorised

inaccordance with their strategic and

operational focus. We have five strategic

andfour operational risks. The strategic risks

relate to the macroeconomic environment;

our key markets – office and retail; capital

allocation; and development. The operational

risks are cyber threat; health and safety;

people and skills; and climate change.

Our principal risks are reflected 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 reflects 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.

PRINCIPAL RISKS AND UNCERTAINTIES

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

Strategic risk Operational risk Future principal risk

Gross risk

Net risk Gross to net range per 2025 Annual Report Appetite range

OPENFLEXIBLECAUTIOUSMINIMALISTAVERSE

MINOR

MODERATE

SIGNIFICANT

CRITICAL

Macroeconomic

outlook

2025

Office occupier

market

2025

Retail and

hospitality

occupier market

2025

Development

2025

People and skills

2025

Information

security and

cyber threat

2025

Climate change

transition

2025

Health and

safety

2025

Capital

allocation

2025

Residential

N N

2025

43LANDSEC ANNUAL REPORT 2026

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

•

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

Uncertainty around the UK fiscal outlook

andthe continued elevation of geopolitical

tensions persist and are under continuous

review, however they are not currently

considered significant enough factors to

increase the risk score.

Long-term interest rates and higher finance

costs will remain a risk area for our business

going forward.

The risk score 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

•

Market and portfolio take-up

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 | NO CHANGE

The office occupancy market outlook remains

positive, supported by robust demand in a

constrained market focusing on high quality

assets in the best-connected locations.

This is demonstrated through active interest

across our two new developments, and as

aresult, the net risk is considered to be stable

at year-end and 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/asset visitor numbers

•

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, with

low growth in consumer spending 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.

44 LANDSEC ANNUAL REPORT 2026

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 | DECREASED

We continue to review the momentum of

capital markets and their impact on our ability

to maintain an appropriate pace of capital

recycling to support delivery of our plan.

Whilegeopolitical uncertainty is currently

considered to be having a downward impact

oninvestment markets and moderating the

pace of execution, the overall risk has reduced

in the period, reflecting a lower requirement

torecycle capital to fund our committed capex.

The residual risk remains within the defined

riskappetite.

5 DEVELOPMENT EXECUTIVE RESPONSIBLE | MIKE HOOD APPETITE: CAUTIOUS/MINIMALIST

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 | DECREASED

This risk is considered to have decreased in

consideration of the progress during the year

tocomplete two of our major projects.

As the majority of the development costs of our

committed schemes is already fixed, and no

new development commitments are planned

inthe near future, we have the flexibility to

manage the scale and timing of our activity

and risk exposure. As such, it was determined

at our interim review to reduce our appetite for

risk in development to cautious/minimalist.

The risk is considered to be within risk appetite.

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 | INCREASED

The cyber threat landscape is always evolving,

with a significant increase in cyber incidents in

the UK over the past year as the sophistication

and nature of ransomware attacks, data

breaches and AI-driven scams continue to

evolve. 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.

45LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

PRINCIPAL RISKS AND UNCERTAINTIES CONTINUED

7 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

•

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, with

aparticular focus on delivering our Building

Safety Cases.

The likelihood of a major health, safety or

security incident has remained constant

throughout the year and within appetite.

8 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 | NO CHANGE

It is considered that this risk has remained

stable as we continue to monitor engagement

and retention risks following the evolution of

our strategy and the impact of the restructure.

The risk remains within our risk appetite.

9 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 sustainability 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 low-carbon, 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 | INCREASED

Operational and supply chain challenges

affecting the costs of sustainable resources,

and a restructure of our internal team have led

to an increase in the net risk, which is within

our Cautious risk appetite target.

10 RESIDENTIAL

As our Strategic Plan continues 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.

46 LANDSEC ANNUAL REPORT 2026

GOING CONCERN AND VIABILITY

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.

KEY METRICS

TABLE 20

31 March 2026

Mitigated

downside scenario

30 September 2027

Security Group LTV 41.6% 46.6%

Adjusted net debt £4,215m £4,608m

EPRA net tangible assets £6,574m £5,768m

Available financial headroom £1.3bn £0.4bn

In our mitigated downside scenario, the

Group has sufficient financial headroom,

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

28% from the sensitised values forecasted at

30 September 2027 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 2026 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 £277m in the full

year ending 31 March 2027 and at least £156m

in the six months ending 30 September 2027

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 2026 are tracking

well above thelevel required to meet the

interest cover covenant for the year ended

31 March 2027. The Directors do not anticipate

a reduction in Security Group earnings over

the period ending 30 September 2027 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 2026.

VIABILITY STATEMENT

THE VIABILITY ASSESSMENT PERIOD

The Directors have assessed the viability of

the Group over a five-year period to March

2031, taking account of the Group’s current

financial position and the potential impact

of our principal risks.

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 2026. The Group’s going concern

assessment considers changes in the Group’s

principal risks (see pages 43-46) 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 21.

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 2027, are shown

below alongside the actual position at

31 March 2026.

47LANDSEC ANNUAL REPORT 2026

STRATEGIC REPORT

GOING CONCERN AND VIABILITY CONTINUED

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’.

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 43-46

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. Further, the risk encompasses

theinability to identify or adapt to changing

markets in a timely manner.

•

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

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 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 49.2% in March 2031,

its highest point in the assessment period.

The Group maintains positive financial

headroom from March 2026 through to

September 2027 and the Group will only be

required to secure new funding from October

2028. 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. This is

evidenced by the bond issuances in March

2023, March 2024 and September 2024

thatwere well supported by investors, the

extension of the Group’s existing revolving

credit facilities in October 2024 on

substantially the same terms as well as

thebank facility agreed in May 2025.

KEY METRICS

TABLE 21

Actuals

31 March

2026

Mitigated

downside

scenario

31 March

2031

Security Group LTV 41.6% 49.2%

Adjusted net debt £4,215m £4,521m

EPRA net tangible

assets per share

882p 690p

Available financial

headroom

£1.3bn (£2.5bn)

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 2031.

48 LANDSEC ANNUAL REPORT 2026

NON-FINANCIAL AND SUSTAINABILITY

INFORMATIONSTATEMENT

This section of our Strategic Report constitutes Landsec’s

Non-financial Information and Sustainability 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.

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

•

Environment and Energy Policy

•

Materials Brief

•

Responsible Property

InvestmentPolicy

•

Sustainable Development Toolkit

•

Nature Strategy

•

Build well, Live well, Act well

siteaction plans

— BUILD WELL ON PAGES 30-32

— TCFD STATEMENT ON PAGES 35-39

— SECR REPORTING

ONPAGES156-158

EMPLOYEES

•

Employee Code of Conduct

•

Equal Opportunities Policy

•

Harassment and Bullying Policy

and Procedure

•

Health and Safety Policy

•

Health and Wellbeing Policy

•

Mental Health First Aider Policy

— OUR PEOPLE AND CULTURE

ONPAGES 26-28

— ACT WELL ON PAGE 34

RESPECT FOR

HUMAN RIGHTS

•

Human Rights and Modern

Slavery Policy

•

Modern Slavery Statement

•

Our Supply Chain Commitment

•

Right To Work Policy

— DIRECTORS’ REPORT

ONPAGES80-82

— ACT WELL ON PAGE 34

SOCIAL MATTERS

•

Diversity and inclusion

•

Board Diversity Policy

•

Community Charter

•

Stakeholder Engagement Policy

•

Inclusive Design Principles

— OUR PEOPLE AND CULTURE

ON PAGES 26-28

— GOVERNANCE REPORT –

BOARDDIVERSITY ON PAGE 58

— OUR STAKEHOLDERS

ON PAGES 23-25

— LIVE WELL ON PAGE 33

ANTI-BRIBERY

ANDCORRUPTION

•

Anti-Bribery and Corruption and

Ethical Business Policy

•

Conflicts of interest and

anti-competitive behaviours

•

Speak Up Policy

•

Sustainable Procurement

Guidance

•

Tax strategy

•

Financial Crime Policy

— ACT WELL ON PAGE 34

— REPORT OF THE AUDIT COMMITTEE

ON PAGES 64-67

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 40-42

— PRINCIPAL RISKS AND

UNCERTAINTIES ON PAGES 43-46

— REPORT OF THE AUDIT COMMITTEE

ON PAGES 64-67

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 13 May 2026 and signed on its behalf by:

MARK ALLAN

CHIEF EXECUTIVE

YOU CAN FIND OUR POLICIES

ONOURWEBSITE

landsec.com/en/sustainability/

key-information/policies-guidance,

landsec.com/en/about/our-

commitments/corporate-governance/

group-policies-and-governance

LANDSEC ANNUAL REPORT 2026

GOVERNANCE

INTRODUCTION TO THE CORPORATE

GOVERNANCE REPORT FROM THE CHAIR

DEAR SHAREHOLDER

I am pleased to introduce

thegovernance section for

the year ended 31 March 2026.

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.

FY26 PERFORMANCE AND STRATEGY

Our high-quality portfolio, leading operating

platforms, and disciplined strategy overseen

by the Board have continued to deliver

strongperformance despite ongoing market

uncertainty. Whilst the macroeconomic

outlook remains uncertain, the Board are

positive about Landsec’s prospects for

futuregrowth and satisfied that we are

appropriately positioned for a higher

inflation and interest rate environment.

During the year, the Board has overseen

performance and the implementation of

actions needed to drive future growth set

outin our refreshed strategy. Performance

iscovered inmore detailed elsewhere in this

report and our areas of Board focus 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 Board composition and

succession planning.

During the year, as well as the retirements of

Madeleine Cosgrave in July 2025 and Manjiry

Tamhane in March 2026, we welcomed

Michael Campbell and Anne Richards to the

Board. As the Board composition has been

refreshed over the last few years, it was a

good opportunity in October 2025 to have an

externally facilitated session focused on skills

and strengths, to solidify relationships across

the Board. We continue to review and evolve

our skills matrix to ensure we have the skills

needed on our Board with the most recent

update undertaken in early 2026.

Further details of our Board changes can be found

inour Nomination Committee Report on page 60.

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) 40% 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 two 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 27-28.

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.

We regularly 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 23-25.

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 discussed

culture regularly, and also had updates

fromthe Chief People Officer on our people,

our culture, talent and succession planning,

diversity andinclusion activities, work to

embed our cultural DNA and the results

ofour employee engagement survey.

Therehave also been direct engagement

activities with the workforce, overseen

byourNon-executive Director for

employeeengagement.

Our employee engagement activity is described

inmore detail on pages 26-27.

BOARD EVALUATION

This year we undertook an internal Board

Evaluation which involved the Board

completing a questionnaire online, followed

by a Board discussion. Overall, the Board

Evaluation process has concluded that the

Board and Committees are operating well.

Our Board evaluation is described in more detail

inour Nomination Committee Report on page 61.

UK CORPORATE GOVERNANCE CODE

In respect of FY26 Landsec was subject to

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 the Provision 29 changes under

the Code which come into effect for FY27,

asdescribed in more detail 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 thank members ofthe Board for

their continued support and commitment

over the past year, and specifically to Manjiry

who left at the end of the financial year, for

her commitment to Landsec throughout her

time on the Board.

SIR IAN CHESHIRE

CHAIR

50 LANDSEC ANNUAL REPORT 2026

BOARD OF DIRECTORS

N N AR R N

SIR IAN CHESHIRE, CHAIR

MONI MANNINGS OBE, SENIOR

INDEPENDENT NON-EXECUTIVE DIRECTOR

JAMES BOWLING,

NON-EXECUTIVE DIRECTOR

APPOINTED: MARCH 2023 & CHAIR FROM

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 brings extensive

general management and board experience

across a range of sectors including Real Estate.

His executive roles include senior leadership

andcommercial roles in customer-focused

businesses.

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

from June 2005. He previously held FTSE 100

Non-executive Director roles at Barclays Plc (and

as Chairman of Barclays Bank UK), Whitbread

Plc, where he was Senior Independent Director

and BT Group Plc where he was Chair of the

Remuneration Committee, Channel 4 and

Menhaden Resource Efficiency Plc. He was the

lead non-executive director at the UK Cabinet

Office and Department for Work and Pensions.

Sir Ian was also Chairman of the British Retail

Consortium, Chairman 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 k

nighted 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: Sir Ian is Chair of

Spire Healthcare Group Plc, the King CharlesIII

Charitable Fund and the corporate climate

change coalition We Mean Business, and the

Institute for Government, and has been

appointed as a commissioner on the Pensions

Commission in 2025.

APPOINTED: DECEMBER 2023

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. She founded

EPOC, a not-for-profit network that seeks to

increase the number of people of colour on

boards and is also a trustee on the Board of

theSt Marks Hospital Foundation charity.

APPPOINTED: SEPTEMBER 2023

COMMITTEES: Audit Committee (Chair),

Nomination Committee

SKILLS AND EXPERIENCE: James was Chief

Financial Officer of Severn Trent Plc from 2015

until his retirement in 2023. 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-executive

Director of Water Plus Group Ltd, Porterbrook

Leasing Company Limited and Premier Marinas

Holdings Limited (where he is also Chair of the

Audit Committee). Director of Barleymow

Investments Limited.

COMMITTEES

Audit Committee

Nomination Committee

Remuneration Committee

Independent as per the Code

51LANDSEC ANNUAL REPORT 2026

GOVERNANCE

BOARD OF DIRECTORS CONTINUED

A R A

MICHAEL CAMPBELL,

NON-EXECUTIVEDIRECTOR

BARONESS LOUISE CASEY,

NON-EXECUTIVEDIRECTOR

ANNE RICHARDS DBE,

NON-EXECUTIVEDIRECTOR

CHRISTOPHE EVAIN,

NON-EXECUTIVEDIRECTOR

MILES ROBERTS,

NON-EXECUTIVE DIRECTOR

APPOINTED: MAY2025

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: 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.

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.

OTHER CURRENT APPOINTMENTS: Senior Managing

Director and Head of International Real Estate

at Pretium Partners.

APPOINTED: JANUARY 2025

COMMITTEES: Remuneration Committee

ROLE: Non-executive Director responsible for

employee engagement from April2026.

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.

Baroness Casey brings a unique perspective

onpublic policy, providing invaluable insight

tosupport engagement with our public sector

partners across the country. Her experience

reviewing some of the largest public sector

organisations also means that she has a

particular expertise in understanding how

cultureimpacts organisations.

OTHER CURRENT APPOINTMENTS: Independent

adviser for social issues, Chair of the Institute

forGlobal Homelessness, and Visiting Professor

at King’s College London.

In February 2025, she became the UK

Government Lead Non-executive Director

andinMay 2025 she became the Chair of the

Independent Commission to find long-term

andsustainable solutions for adult social care

inEngland.

APPOINTED: SEPTEMBER 2025

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Prior to her current

appointments, Anne served as Chief Executive

Officer of Fidelity from 2018 to 2024, and before

that she was Chief Executive Officer at M&G

Investments and also served for 13 years as

ChiefInvestment Officer of Aberdeen Asset

Management. Anne was previously Chair of

CityUK, and held the position of director at

Prudential Plc, eSure plc, Edinburgh Fund

Managers and Aberdeen Asset Management PLC.

Anne has extensive investment experience and

brings significant experience of leadership roles

across a range of listed and private companies

in both executive and non-executive positions.

Anne graduated from the University of

Edinburgh in Electronics and Electrical

Engineering and has an MBA from INSEAD.

Anne will become an Independent Director and

member of the Risk Committee of global asset

manager and operator Keppel Ltd (Singapore

listed) from 1 July 2026.

OTHER CURRENT APPOINTMENTS: Chair of Coutts

Bank and Senior Adviser to Fidelity International.

APPOINTED: APRIL 2019

COMMITTEES: Remuneration Committee (Chair),

Nomination Committee

SKILLS AND EXPERIENCE: 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.

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.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of Bridges Fund Management. Chair

ofQuilvest Capital Partners.

APPOINTED: SEPTEMBER 2022

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Miles was Group Chief

Executive of DS Smith Plc, the international

packaging group, from 2010 until January 2025.

Miles is currently acting as an adviser to

DSSmith Limited and International Paper

andjoined the board of RS Group PLC as

aNon-executive Director on 1 March 2025.

Priortohisrole at DS Smith Plc, he was Chief

Executive at McBride plc from 2005 to 2010.

In addition to his significant Board

experience,Miles brings 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 andanadviser to

DSSmith Limited and International Paper.

COMMITTEES

Audit Committee

Nomination Committee

Remuneration Committee

Independent as per the Code

52 LANDSEC ANNUAL REPORT 2026

N AR

NON-EXECUTIVE DIRECTOR –

MANJIRYTAMHANE

Manjiry Tamhane stepped down as

Non-executive Director and a member of

the Remuneration Committee on 31 March

2026 having joined the Board in 2021.

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, public policy and

broader leadership and culture experience.

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.

MICHAEL CAMPBELL,

NON-EXECUTIVEDIRECTOR

BARONESS LOUISE CASEY,

NON-EXECUTIVEDIRECTOR

ANNE RICHARDS DBE,

NON-EXECUTIVEDIRECTOR

CHRISTOPHE EVAIN,

NON-EXECUTIVEDIRECTOR

MILES ROBERTS,

NON-EXECUTIVE DIRECTOR

APPOINTED: MAY2025

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: 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.

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.

OTHER CURRENT APPOINTMENTS: Senior Managing

Director and Head of International Real Estate

at Pretium Partners.

APPOINTED: JANUARY 2025

COMMITTEES: Remuneration Committee

ROLE: Non-executive Director responsible for

employee engagement from April2026.

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.

Baroness Casey brings a unique perspective

onpublic policy, providing invaluable insight

tosupport engagement with our public sector

partners across the country. Her experience

reviewing some of the largest public sector

organisations also means that she has a

particular expertise in understanding how

cultureimpacts organisations.

OTHER CURRENT APPOINTMENTS: Independent

adviser for social issues, Chair of the Institute

forGlobal Homelessness, and Visiting Professor

at King’s College London.

In February 2025, she became the UK

Government Lead Non-executive Director

andinMay 2025 she became the Chair of the

Independent Commission to find long-term

andsustainable solutions for adult social care

inEngland.

APPOINTED: SEPTEMBER 2025

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Prior to her current

appointments, Anne served as Chief Executive

Officer of Fidelity from 2018 to 2024, and before

that she was Chief Executive Officer at M&G

Investments and also served for 13 years as

ChiefInvestment Officer of Aberdeen Asset

Management. Anne was previously Chair of

CityUK, and held the position of director at

Prudential Plc, eSure plc, Edinburgh Fund

Managers and Aberdeen Asset Management PLC.

Anne has extensive investment experience and

brings significant experience of leadership roles

across a range of listed and private companies

in both executive and non-executive positions.

Anne graduated from the University of

Edinburgh in Electronics and Electrical

Engineering and has an MBA from INSEAD.

Anne will become an Independent Director and

member of the Risk Committee of global asset

manager and operator Keppel Ltd (Singapore

listed) from 1 July 2026.

OTHER CURRENT APPOINTMENTS: Chair of Coutts

Bank and Senior Adviser to Fidelity International.

APPOINTED: APRIL 2019

COMMITTEES: Remuneration Committee (Chair),

Nomination Committee

SKILLS AND EXPERIENCE: 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.

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.

OTHER CURRENT APPOINTMENTS: Non-executive

Director of Bridges Fund Management. Chair

ofQuilvest Capital Partners.

APPOINTED: SEPTEMBER 2022

COMMITTEES: Audit Committee

SKILLS AND EXPERIENCE: Miles was Group Chief

Executive of DS Smith Plc, the international

packaging group, from 2010 until January 2025.

Miles is currently acting as an adviser to

DSSmith Limited and International Paper

andjoined the board of RS Group PLC as

aNon-executive Director on 1 March 2025.

Priortohisrole at DS Smith Plc, he was Chief

Executive at McBride plc from 2005 to 2010.

In addition to his significant Board

experience,Miles brings 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 andanadviser to

DSSmith Limited and International Paper.

53LANDSEC ANNUAL REPORT 2026

GOVERNANCE

BOARD OF DIRECTORS CONTINUED

MARK ALLAN, CHIEF EXECUTIVE,

EXECUTIVEDIRECTOR

VANESSA SIMMS, CHIEF FINANCIAL

OFFICER, EXECUTIVE DIRECTOR

APPOINTED: APRIL 2020

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.

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 joined Landsec as

Chief Executive Officer in April 2020. He brings

extensive knowledge and experience of the

property sector combined with strong

operational leadership and financial and

strategic management skills to the Board.

Before 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 an

Independent Trustee at the University of Bristol.

APPOINTED: MAY 2021

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.

ROLE: Works closely with the Chief Executive

indeveloping and implementing vision and

strategy. Responsible for Group financial

performance, financial planning, management

of risks and assurance, Group legal and

Groupprocurement.

SKILLS AND EXPERIENCE: Vanessa brings extensive

financial experience to Landsec from the

property sector, and has particular expertise

inleading and implementing strategic change

inbusinesses and substantial experience of

leadership roles in a listed environment.

Previously, Vanessa was Chief Financial Officer

at Grainger plc, and prior to that held senior

financial positions at The Unite Group plc and

SEGRO plc. She was also a Non-executive

Director and Audit Chair of Drax Group Plc until

June 2024.

Vanessa is a Chartered Certified Accountant

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

Ashridge Business School.

OTHER CURRENT APPOINTMENTS: Vanessa is

aNon-executive Director of Rotork plc, a

globalprovider of mission-critical intelligent

flow control.

CHART 22

CURRENT GENDER

DIVERSITY OF BOARD

(ALL DIRECTORS)

Male 60%

Female 40%

CHART 23

CURRENT BOARD TENURE

(NON-EXECUTIVE DIRECTORS

INCLUDING CHAIR)

0 to 3 years 50%

3+ to 6 years 30%

6+ years 20%

*Correct as at 13 May 2026.

54 LANDSEC ANNUAL REPORT 2026

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

CHRIS HOGWOOD

CHIEFCORPORATE

AFFAIRS OFFICER

KATE SELLER

CHIEFPEOPLE OFFICER

MARCUS GEDDES

MANAGING DIRECTOR,

WORKPLACE

REMCO SIMON

CHIEF STRATEGY &

INVESTMENT OFFICER

NISHA MANAKTALA

CHIEF DATA &

TECHNOLOGYOFFICER

MIKE HOOD

CHIEF OPERATING

OFFICER

MARINA THOMAS

HEAD OF GOVERNANCE

AND COMPANY

SECRETARY

Biographies for the ELT can be found at landsec.com/en/about/about-landsec/our-leadership.

55LANDSEC ANNUAL REPORT 2026

GOVERNANCE

GOVERNANCE REPORT

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

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

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 the

Directors’ Remuneration

Policy to the Board

—

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

OUR GOVERNANCE STRUCTURE

Board committees*

EXECUTIVE LEADERSHIP

TEAM

Monitor

performance and

organisational

health

Develop and oversee

the Group’s people

and culture strategy

Oversight of

sustainability and

data strategies, risk

and compliance

INVESTMENT

COMMITTEE

Approve property

investment decisions

£10m to £150m

CAPITAL ALLOCATION AND

PERFORMANCE REVIEW

Business unit

performance

review

Prioritise

capital

allocation

BUSINESS UNIT

(WORKPLACE, RETAIL AND CAPITAL PROJECTS)

EXECUTIVE COMMITTEES

Develop

andexecute

business

plans

Assess and

manage

operational

risks

Deliver

financial

performance

Talent

development

Management committees

Management committee

56 LANDSEC ANNUAL REPORT 2026

OUR GOVERNANCE STRUCTURE

The Board and Committees continue to

oversee our strategy, governance and

assurance. They are supported by (i) our ELT,

which is responsible for implementing our

strategy, oversight of organisational health

and our people and other cross-functional

agendas; (ii) our Capital Allocation and

Performance Review which reviews

performance in detail and discusses capital

prioritisation; and (iii) the Investment

Committee which is the formal decision-

making body for business related

investments of between £10m and £150m.

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.

Decisions that can only be made by the Board,

together with the terms of reference for our

Board Committees, are on our website.

Our governance structure is effective,

helping us to run the business in the

mostagile manner, whilst maintaining

effective controls over significant

investmentdecisions.

ATTENDANCE

There were seven scheduled meetings this

year and two unscheduled meetings. All

Board members attended the scheduled

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 oversight of the implementation

ofthe revised strategy and business financial

and operational performance, the Board

hasconsidered topics including executive

succession, diversity and inclusion, data

andtechnology (including cyber and AI),

security, health and safety, compliance

topics and governance.

Board activities are covered in more detail

onpage 59.

STRATEGY DAY

The Board took the opportunity of the

strategy day to hear from the participants

ofLandsec Builds, the programme which

replaced our executive level Shadow Boards

last year. The participants of Landsec Builds

carried out and then presented a detailed

review of a select number of our real estate

peers (covering office, retail and mixed use),

within and outside of the UK. As well as

providing useful insights for consideration,

there were several follow up points for

further analysis.

TRAINING AND DEVELOPMENT

Directors received regular market and

broader business updates in their Board

papers, facilitating greater awareness and

understanding of the context of the Group’s

business and strategy. The strategy day

where real estate peers were reviewed in

more detail also provided useful insights

forthe Board.

INDUCTION

Our induction plan starts as soon as it is

confirmed that a new Board member is

joining, and through this programme we

aim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 FY26 induction plans were in

placeforthe following Non-executives

appointed in 2025: Louise Casey (January),

Michael Campbell (May) and Anne

Richards(September).

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 clear understanding of our Board

processes and dynamics

•

help them build relationships with the

Board, the ELT and other key individuals

atLandsec and key external advisers

•

help Directors learn about our business

firsthand through site visits across our

portfolio. All new Directors visited or are

due to visit sites including Victoria,

Bluewater, O2, Lewisham, Mayfield,

MediaCity and Liverpool ONE

57LANDSEC ANNUAL REPORT 2026

GOVERNANCE

GOVERNANCE REPORT CONTINUEDGOVERNANCE REPORT CONTINUED

CONFLICTS OF INTEREST AND

EXTERNALAPPOINTMENTS

The Board has a policy to (i) identify and

manage Directors’ conflicts or potential

conflicts; and (ii) determine any mitigating

actions deemed appropriate to ensure that

all Board meetings and decisions are taken

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. Vanessa Simms is currently on

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 page 28.

Landsec was ranked 17th in the FTSE 100 in

the FTSE Women Leaders Review, due to the

relatively high representation of women in

the combined ELT and direct reports group,

and second (out of 21) in the Real Estate

sector. Landsec was included in the 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). We are currently tracking behind

the 2027 target of 9%, as at 31 December

2025 (the Parker Review reporting date) with

5.3% ethnic minority representation within

ELT and direct reports. This was a fall from

8.6% in the prior year. Due to the small

sizeofour leadership population, a small

changein headcount can have a significant

impact on representation. As part of the

wider diversity and inclusion plans for FY27,

actions to get the target back on track

include ethnic diversity targets for

recruitment shortlists, hiring manager

training, increasing the transparency of

promotion assessments and the completion

of equality impact assessments for all

organisational restructures.

The Committee notes that since Manjiry

Tamhane stepped down on 31 March 2026,

there has beena reduction in both the

proportion ofwomen on the Board and the

proportion ofBoard members from an ethnic

minority. Notwithstanding this change,

theBoard continues to meet the target for

women onBoards and exceeds the applicable

ethnicity related Board diversity targets.

TheCommittee will continue to monitor

ongoing compliance with these targets.

BOARD AND EXECUTIVE LEADERSHIP DIVERSITY UNDER UKLR6.6R(9) AND UKLR6.6.6R(10)

1, 2

TABLE 24

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. The data in the table was collected via written submissions completed by each relevant individual within scope of the reporting requirements set out in UK Listing Rule

6.6.6R(10) and based on the categories outlined in UK Listing Rule 6 Annex 1.

2. The reference date for the purposes of UK Listing Rule 6.6.6R(9a) and 6.6.6R(9c) is 31 March 2026, which is consistent with our approach in the prior year. A description of

changes occurring subsequent to the reference date is set out in the narrative above.

LANDSEC ANNUAL REPORT 2026

BOARD DISCUSSIONS DURING THE YEAR

TOPICS/ACTIVITIES HIGHLIGHTS/OUTCOMES

STRATEGY

— Retail, Workplace, Capital Projects and Media City

business reviews

— Acquisitions and disposals

— Defence overview, valuations and market reviews

— Development deep dive review

— Overall strategy review

— Presentation from the participants of Landsec Builds

focused on our real estate peers

— Optimum capital recycling and capital allocation

— Approval of Group business plan

— Capital Markets Day to update investors on growth

across major retail

— Disposals of other non-core assets including Queen

Anne’s Mansions

— Engagement activity for Board and Landsec Builds

participants and deeper peer insights

FINANCIAL

— Capital allocation

— Budgets

— Key business targets

— Dividends, results and reports

— Going concern and viability statement

— Portfolio valuation

— Source of funding and gearing levels

— Tax strategy

— Finance systems transformation

— Macroeconomic environment

— 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

— Annual tax strategy approved and published

— Post investment appraisals for significant

investmentdecisions

OPERATIONAL

— Development pipeline and pre-let activity

— Market and sector trends

— Cyber security and ransomware

— AI and other data and technology updates

— Sustainability progress updates

— Updates on UK politics

— Health, safety and physical security, including fire safety

— Health, safety and security updates

— Media City tour and review, tour of Mayfield

— Introduction to Liverpool ONE and asset tour

— Tours of MYO King’s Cross, MYO Bankside, Timber Square

and Thirty High

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 update

— Board and Committee effectiveness

— Regulatory, 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 review

— Annual General Meeting

— Agreed risk appetite

— Agree externally facilitated Board and Committee

evaluation actions

— Approval of Modern Slavery Statement

— Remuneration Committee Chair meeting with employees

on executive remuneration

— Regular meetings between employees and Non-

executive Directors with summary feedback covered

atthe Board

— Controls reviewed, designed and embedded to reflect

new requirements under Provision 29 of the Code

59LANDSEC ANNUAL REPORT 2026

GOVERNANCE

INTRODUCTION FROM THE CHAIR

OF THE NOMINATION COMMITTEE

COMMITTEE MEMBERS

‡ Sir Ian Cheshire (Chair)

‡ James Bowling

‡ Christophe Evain

‡ Moni Mannings

KEY ACTIVITIES

—

Reviewing Board composition and

Board and executive succession

—

Refreshing our skills matrix

KEY RESPONSIBILITIES

—

Board skills matrix

—

Composition ofthe Board

andCommittees

—

Succession planning for the

Boardand ELT

—

Board appointment processes

MEETINGS

—

Three scheduled meetings

—

All members of the Committee

attended all scheduled meetings

during their membership

DEAR SHAREHOLDER

I am pleased to present the

report from the Nomination

Committee for the year.

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 helps ensure 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. At Landsec we support diversity

in the broadest sense, including gender and

ethnicity but also experience, skills,

professional background and tenure.

The process for Board appointments is led

bythe Nomination Committee which makes

recommendations to the Board for approval.

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.

Further information on diversity at Landsec

canbefound on pages 27-28.

INDEPENDENCE AND RE-ELECTION

TOTHEBOARD

The independence, effectiveness and time

commitment of each of the Non-executive

Directors has been reviewed by the

Committee. The Committee is satisfied with

the contributions and time commitment

demonstrated by all the Non-executive

Directors during the year.

The Committee will continue to review

anddiscuss the additional commitments

ofall Directors (including the Chair) before

recommending their approval to the Board.

The Committee also considers any potential

conflict issues as part of their assessment.

Anne Richards is standing for initial election

by shareholders at the AGM in July 2026, with

all other Directors standing for re-election

with the support of the Board.

BOARD COMPOSITION AND SUCCESSION

The Committee is responsible for keeping

Board composition under review. The

Committee has continued to review the

composition and has also reviewed Board,

Board Committee, other Board roles, and

executive succession in more detail during

the year.

During FY26, Michael Campbell joined the

Board in May 2025 to replace Madeleine

Cosgrave (who stepped down in July 2025)

asour Non-executive real estate expert,

andAnne Richards joined the Board in

September 2025 bringing significant

investment experience.

Manjiry Tamhane stepped down from the

Board and Remuneration Committee on

31 March 2026 after five years’ service.

Manjiryjoined the Board in March 2021 and

the Board has benefitted from her support

and guidance on data, technology and

consumer strategies, and has played an

important role in helping us shape our

futureapproach to these areas.

More comments on our activities during the

year are described in this report.

BOARD SKILLS

Towards the end of FY26, we refreshed the

Board’s skills matrix to reflect the latest

Board composition and this work is described

further in this report.

BOARD EVALUATION

This year we carried out an internal Board

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 both this Committee and

the Board had operated effectively during

theyear in carrying out their responsibilities.

SIR IAN CHESHIRE

CHAIR

60 LANDSEC ANNUAL REPORT 2026

REPORT OF THE

NOMINATION COMMITTEE

BOARD COMPOSITION AND SUCCESSION

The Committee reviewed overall composition

of the Board and Committees and other

specific roles and determined that Louise

Casey should join the Remuneration

Committee and be appointed as the

Non-executive Director responsible for

employee engagement from 1 April 2026.

TheCommittee also reviewed other key

Board and Committee roles and executive

succession planning.

SKILLS MATRIX

During the year the Nomination Committee

led an exercise to update our Board skills

matrix. Mirroring the process run in FY25,

weutilised the Board Outlook platform

tofacilitate this process. The Committee

reviewed the 2024 assessment of prioritised

skills and made a number of minor clarifying

amendments. Board members were then

asked to self-evaluate themselves against

those required skills and peer assess their

Board colleagues. The outcome of the skills

matrix review was discussed by the

Committee and it was agreed that there

wasan appropriate mix of skills on the Board.

BOARD EVALUATION FY26

Our Board evaluation provides the Board

andits Committees with an opportunity to

reflect on effectiveness and performance.

This year our review was conducted internally

using the Board Outlook system. The Board

were sent a questionnaire and an additional

Committee survey specifically on advisers and

external partners, covering the effectiveness

of advisers and their understanding of the

business and its risks and their working

relationships with management.

The questions in the survey focused on

theeffectiveness of the Board and its

Committees in supporting the delivery of

theGroup’s strategy and long-term value

creation, including the Board’s role in setting

and overseeing strategic priorities. It also

covered the quality of the Board’s partnership

with management, encompassing

constructive strategic challenge, effective

oversight and the flow of timely and relevant

information. The review also looked at the

robustness of succession planning, Board

composition and the alignment of skills and

experience with the Group’s evolving strategic

needs. Finally, the review included Board

culture, the quality of debate, openness of

discussion and the effectiveness of Board

dynamics, the leadership of the Chair and

theoverall effectiveness of Board meetings

and stakeholder oversight.

OUTCOMES

Overall, the Board was satisfied with its

performance during the year. The following

key themes were identified:

•

Overall, Landsec has an effective Board.

The relationship between the Board and

management is viewed as a particular area

of strength with strong confidence in the

CEO and meaningful exposure to the wider

management team

•

Non-executive Directors expressed strong

confidence in the Board’s oversight of

portfolio rotation and major projects.

Projects are seen as aligned with strategy

and with the Board both consulted on key

decisions and receive regular and effective

reporting on delivery progress

•

The Board’s diversity of background,

including global and domestic, alongside

diversity of gender and ethnicity, is

recognised by the Board as a strength.

TheBoard regards the Chair as providing

aneffective and well-respected leadership

•

Non-executive Directors report that

theculture isviewed as healthy by all

participants demonstrated by thorough

preparation, full engagement and a

genuine breadth ofperspectives which

hasbrought a strengthened feeling of

cohesiveness totheBoard

•

In response to the external evaluation

undertaken in FY25, it had been agreed

that an additional externally facilitated

Board session would take place in October

2025. The main purpose of this session was

to deepen and develop relationships in light

ofthe number of new directors who had

joined the Board since 2023. The Board

considered this session and other actions

undertaken as a result of the last external

evaluation to be successful and beneficial

for Board dynamics and relationships

The FY26 internal evaluation identified

somerecommendations including

improvements to Board papers and a desire

to ensure there was more unstructured time

for Board discussions.

The Nomination Committee was also

reviewed. There were a few minor

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.

61LANDSEC ANNUAL REPORT 2026

GOVERNANCE

INTRODUCTION FROM THE CHAIR

OF THE AUDIT COMMITTEE

COMMITTEE MEMBERS

‡ James Bowling (Chair)

‡ Miles Roberts

‡ Michael Campbell

(from1 May 2025)

‡ Madeleine Cosgrave

(until10 July 2025)

‡ Anne Richards

(from1 September 2025)

HIGHLIGHTS

—

Continued integrity of

reportingprocess

—

Effectiveness of the risk

management system and

enhancing internal controls process

in preparation for Provision 29

—

Deep dives into cyber security

andhealth and safety risks

—

Transition to business as usual

following financial systems

transformation

—

Accounting treatment of

variousfinancial matters

—

Corporate governance and

regulation changes

—

Oversight of internal audit

KEY RESPONSIBILITIES

—

Reliability of the financial

statements and internal controls

—

Effective risk identification

andmanagement

—

Overall transparency and

financialgovernance

MEETINGS

—

Four scheduled meetings with

fullattendance from all members

—

Meeting attendees are shown

onpage 63

DEAR SHAREHOLDER

I am pleased to provide the

report on the work of the

Audit Committee for the year

ended 31 March 2026.

The key responsibilities and highlights noted

to the left outline the focus of the Committee

during FY26. We continued to review, monitor

and provide assurance to the Board that the

financial statements were reliable, and that

the integrity of the Company’s processes

regarding reporting, internal controls, risk

identification and management, audit and

valuation, effective compliance with laws,

regulations and ethical codes of practice,

andoverall financial governance were in

place and operating effectively.

FINANCIAL STATEMENTS AND

REPORTINGPROCESS

The Committee recognises the importance

ofthe financial statements to investors and

wider stakeholders, and therefore monitors

the integrity of the Group’s reporting process

and financial management. It reviews the

full and half-yearly financial statements

before proposing them to the Board for

approval, along with examining in detail the

work of the external auditor, external valuers

and any significant financial judgements and

estimates made by management to ensure

that the outcome is appropriate.

The Committee also considered the Task

Force on Climate-related Financial Disclosures

(TCFD) and the associated assurance work.

Further information on this can be found on

pages 35 to 39.

RISK AND CONTROLS

Our decentralised and simplified risk

framework means that risk identification

andmanagement is embedded within the

day-to-day operations of the business.

The risk relating to the macroeconomic

outlook remains the most significant strategic

risk. The risk in relation to climate change

transition has increased in the year, whilst the

risk in relation to development hasdecreased

due to the reduction in development assets

asa share of the portfolio. In addition, the

riskthat change projects failed to deliver

hasbeen removed as a principal risk due to

the successful implementation of our core

systems and the target operating model.

The Committee is provided with detail to

ensure that actions to mitigate principal

risksare appropriate. No material emerging

risks have been identified through the risk

management process during the year, and

deep dives into cyber security and health

andsafety were undertaken.

Regular updates were also provided to

assurethe Committee of the preparedness

for the controls certification required by

Provision 29 of the Code. More detail is

provided on page 64.

ASSET VALUATION

The valuation of our assets is a significant

constituent of our financial results and

measurement of our performance. CBRE and

JLL continued to value our property portfolio.

These industry-leading agencies provided us

with expert external valuations of our assets

twice during the year, in accordance with the

relevant industry standards. The Committee

has been updated on proposed changes to

thevaluers’ appointments required as a result

of the Royal Institute of Chartered Surveyors’

mandatory rotation policy for valuers.

Furtherinformation on this can be found

onpage 66.

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

During the year there were a number of

transactions (for example the disposals of

Queen Anne’s Mansions, 140 Aldersgate and

Red Lion Court). Material transactions were

considered by the Committee following

discussions with the finance team and

external auditor. The Committee satisfied

itself that the accounting treatment and

associated disclosures were appropriate.

62 LANDSEC ANNUAL REPORT 2026

FAIR, BALANCED AND UNDERSTANDABLE

The Committee considered the Company’s

2026 Annual Report in the round and

concluded and recommended to the Board

that, taken as a whole, the 2026 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 47-48, along with the viability

statement and the rationale behind the

chosen five-year time horizon.

INTERNAL AUDIT

During FY26, the internal auditor, KPMG, has

undertaken audits on payroll, the Mayfield

development, leasing, material controls,

andIT vendor risk management. These audits

were in line with KPMG’s FY26 Internal Audit

Plan. The Audit Committee has agreed its

proposed Internal Audit Plan for FY27.

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.

There has been particular focus this year on

ensuring that we are prepared for Provision

29 of the Code (effective for our next

year-end), and there have been updates

onthe Economic Crime and Corporate

Transparency Act 2023 and IFRS 18.

COMMITTEE CHANGES AND EFFECTIVENESS

As noted in the FY25 report, Madeleine

Cosgrave stepped down from the Board

andthe Committee in July 2025 and Michael

Campbell joined the Board and Committee

inMay 2025. In addition, we were also

pleased to welcome Anne Richards to the

Board and Committee in September 2025.

This year the Board evaluation was

undertaken internally (further details are

included on page 61). Whilst there were some

minor recommendations for improvement,

the evaluation concluded that the

Committee continued to be effective.

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 present their property valuations

COMMITTEE PRIVATESESSIONS

—

CBRE valuation team

—

JLL valuation team

—

EY external audit team

—

KPMG internal audit team

NEW STREET SQUARE, LONDON

63LANDSEC ANNUAL REPORT 2026

GOVERNANCE

REPORT OF THE AUDIT COMMITTEE

In addition to ensuring the integrity of the financial

reporting process, the Audit Committee has focused

on risk management, particularly on certain risks,

and the internal controls framework.

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 March 2026 and the changes

made were mainly required to reflect

Provision 29 of the Code on internal controls

which will be effective for the next

accounting period.

The terms of reference are available on our website:

landsec.com/en/about/our-commitments/

corporate-governance/board-committees.

Set out on page 63 are those who regularly

attend Audit Committee meetings to

support the Committee, and provide relevant

information and expertise.

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’s meeting and activity

programme is scheduled to align with the

financial calendar. Following each meeting,

the Committee Chair reports on the main

discussion points and findings to the Board.

RISK MANAGEMENT, ASSURANCE

ANDINTERNAL CONTROL

Details on Landsec’s risk management

framework, risk appetite, risk identification,

and the governance, management and

assurance of risks, along with the principal

risks and uncertainties, can be found on

pages 40-46.

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, quarterly

self-certification by management and an

effective whistleblowing process, ensure

these systems remain effective.

Whilst the Board maintains overall

responsibility for overseeing risk and

ensuringthe effective operation of a robust

risk management and internal control

system, the Audit Committee supports

theBoard by reviewing the effectiveness

ofthe risk management and systems of

internal control.

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.

The progress of the internal audits and

theactions identified by the audits are

monitored by the Committee on a regular

basis. In addition, the Committee reviewed

the effectiveness of the internal auditor

aspart of the Board evaluation process.

Significant and emerging risks, internal audit

findings and progress on recommended

actions are discussed regularly at Committee

meetings. The Committee is also undertaking

deep dives into specific risk areas. This year,

ithad detailed presentations on, and

considered, information security and cyber

threat risk (including management of the risk,

assurance activities, resilience initiatives), and

health and safety risks (including fire safety

remediation in residential buildings).

The Committee was satisfied that the system

of risk management and internal controls

has been effective throughout the year.

In addition, a programme of work has been

ongoing to review the internal controls

framework in preparedness for Provision 29

of the Code. As part of this, the Committee

oversaw a full ‘dry run’ of the new

requirements. The Group’s material controls

were reviewed for effectiveness, supported

by a clear strategy, evidence testing,

certification by material control owners

ofthe effectiveness of their controls and

adraft statement for Committee review.

Thispreparatory exercise has positioned

theGroup well for full implementation in

thenext financial 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 external auditor was last

carried out in 2022. Shareholders confirmed

the reappointment of EY at our 2025 Annual

General Meeting.

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 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.

64 LANDSEC ANNUAL REPORT 2026

When carrying out its statutory audit work,

EYhas access to a broad range of employees

and different parts of the business. If it picks

up any material information as part of this

process, it would report to the Audit

Committee anything that it believed 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, without going

through management.

The Committee is keen to ensure that EY

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).

The effective operation of the external audit

is assisted by regular meetings to review the

audit process between EY, the CFO and

senior members of the finance team.

EY attends each Committee meeting,

supported by other meetings held during

theyear with the Committee, or the

Committee Chair, without management

being present. These regular discussions

wereuseful to the Committee but no matters

of concern emerged.

The Committee continually monitors the

performance and effectiveness of the external

audit, and in addition the effectiveness of

theexternal auditor was considered as part

ofthe internal Board evaluation process.

During FY26, the Committee complied with

the FRC’s Audit Committees and the External

Audit: Minimum Standard.

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 FRC

Ethical Standard.

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 FY27 at this year’s

Annual General Meeting, subject to

shareholder approval.

The Company has complied with the

Statutory Audit Services for Large Companies

Market Investigation (Mandatory use of

Competitive Tender Process and Audit

Committee Responsibilities) Order 2014.

AUDIT FEE

The audit fees payable for FY26 (including

the audit of the statutory accounts and

theGroup’s joint ventures) are£2.0m

(FY25:£2.2m).

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.

Compliance with the policy is monitored

bythe Committee, with approvals being

noted at the Audit committee meetings.

Approval levels under the policy for FY26 were

as follows:

TABLE 25

Per

assignment

(£)

Aggregate

during the year

(£)

Chief Financial

Officer

0–25,000 <100,000

Audit Committee

Chair

25,000–

100,000

100,000–

1,100,000*

Committee >100,000

*50% of the prior year audit fee.

EY was engaged during the year to provide

non-audit services to the Group relating

tothe Company’s half-yearly review,

sustainability reporting assurance, the

non-statutory audit of the Security Group,

work in relation to the update of the bond

programme documentation, and assurance

of the green bond reporting. 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 £0.4m. 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.

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.

AUDIT VS. NON-AUDIT FEES FY26

(including the audit of the Group’s joint ventures)

CHART 26

22.2% non-audit fees as a ratio to Group audit fee (excluding the audit of the Group’s joint ventures).

NON-AUDIT

16%

AUDIT

84%

65LANDSEC ANNUAL REPORT 2026

GOVERNANCE

REPORT OF THE AUDIT COMMITTEE CONTINUED

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 valuers’ objectivity

and effectiveness represent an important

part of the Committee’s work.

Details of the valuation process including

thescrutiny by EY and the Committee can

befound in the significant financial matters

table on page 67.

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. 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.

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.

The Committee monitored the performance

and effectiveness of the valuers during the

year, and were updated on the proposed new

valuers’ appointments required as a result

ofthe Royal Institute of Chartered Surveyors’

mandatory rotation policy for valuers.

TheCommittee was advised that a tender

processwas undertaken with valuation firms

providing a written submission, followed by

presentations to senior stakeholders within

theGroup. A scoring exercise was undertaken

to assess the valuers on market insights, depth

of sector expertise, valuation methodology

and approach, onboarding readiness, and

technical capability and reporting strength.

The resultant new appointments will take

effect following completion of FY26 year-end

valuation, and the first external reporting

period for the new appointments will be

theinterim results for the six months to

30 September 2026.

SIGNIFICANT FINANCIAL MATTERS

There were two significant financial matters

in connection with the financial statements,

namely the valuation of the Group’s property

portfolio and revenue recognition, that were

considered by the Committee.

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 where appropriate, on other key

matters including acquisitions and disposals,

provisions, pensions, tax-related matters,

transition to business as usual following

thefinancial systems transformation, going

concern, receivables, provisions for health

and safety remediation and other specific

areas of individual property and audit focus.

The Committee was satisfied that all issues

had been fully and adequately addressed,

were in line with accounting policies as set

out in the notes to the financial statements

on pages 96-147, 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 159. The Committee

considers these are 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 2026 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.

WHISTLEBLOWING POLICY

The Audit Committee is updated on any

cases which are reported under the

Group’sSpeak Up policy. The policy 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 and reported

totheAudit Committee Chair. TheAudit

Committee is updated on these matters,

how they are investigated and anyaction

taken. The Committee Chair provides

aregular whistleblowing update tothe

Board, which has overall responsibility

forwhistleblowing.

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.

66 LANDSEC ANNUAL REPORT 2026

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, market assumptions and

outcomes are reviewed and robustly challenged. These reviews

are undertaken first by management, by the Committee Chair,

and then scrutinised by the Committee following a presentation

by each of the valuers. The Group currently 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*.

CBRE and JLL submit their valuation reports to the Committee

as part of the half-yearly and full-year process and attend and

present their reports to the Committee. Other Non-executive

Directors are invited to join this presentation. The valuers provide

a market update and highlight any significant judgements or

disagreements which existed between them and management.

There were no disagreements identified and the valuations were

accepted for reporting purposes. The Committee considers the

valuers qualifications, and challenges their approach,

assumptions and judgements.

In addition, the Committee Chair and other Committee

members meet separately with the valuers for further

opportunity to test and challenge thevaluations.

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.

* This year 36 properties (81% 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 EY’s findings.

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.

SIGNIFICANT FINANCIAL MATTERS

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

67LANDSEC ANNUAL REPORT 2026

GOVERNANCE

DIRECTORS’ REMUNERATION REPORT –

CHAIR’S ANNUAL STATEMENT

DEAR SHAREHOLDER

I am pleased to present

theDirectors’ Remuneration

Report for FY26.

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.

KEY ACTIVITIES DURING FY26:

•

reviewing salaries for Executive Directors

and the ELT taking into account wider

workforce salary increases

•

setting, reviewing and finalising targets

and outcomes of incentive plans, and

reviewing variable pay arrangements

atand below Executive Director level

•

monitoring compliance with Executive

Director shareholding requirements,

market developments and shareholder

sentiment on remuneration and oversight

of share plan activity

•

approval of pay gapreporting

•

approving share awards for senior business

unit employees (below Board) which

incentivise performance against five-year

strategic plan targets

PERFORMANCE FOR FY26

Despite continued uncertainty in broader

markets, Landsec has delivered strong

performance during the year with EPRA

earnings up £8m to £382m despite the impact

of the sale of Queen Anne’s Mansions (QAM),

which turned future finance lease income

into a capital receipt on sale. EPRA EPS

endedthe year at the top end of guidance,

up2.2% to 51.4p, as 4.6% LFL income

growth(ahead of guidance) and a 15% fall

inoverhead costs more than offset a 1.8%

EPSimpact from the sale of QAM, driving

a2.0% growth in dividend.

These results are considered by the

Committee to be reflected in the variable

payawarded to the Executive Directors

asoutlined in this report.

DISCRETION

No discretion was exercised in respect of

theExecutive Directors for FY26.

INCENTIVE PLANS

Annual bonus for FY26 was awarded at51.2%

of the maximum for the Chief Executive

(CEO) (76.8% of salary) and 51.8% of the

maximum for the Chief Financial Officer

(CFO) (77.6% of salary).

Vesting of the 2023 Long Term Incentive Plan

(LTIP) Award in 2026 is 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

2026, these awards will vest at 38.1% of

maximum. More detail on bonus awards

andLTIP vestingcan be found in the Annual

Report onRemuneration.

EXECUTIVE REMUNERATION FY27

A summary of the proposed implementation

of Remuneration Policy in FY27 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 May 2026, I again took the opportunity

tomeet with members of our Landsec

Includes group (representing the wider

Landsec workforce). Iwas pleased to answer

a numberof questionson our progress on

diversity targets, target setting more

broadly, how we compare to other listed

companies, how performance impacts

outcomes and how employee engagement

can influence Board decision-making.

DIRECTORS’ REMUNERATION POLICY

Given the Policy will reach the end of its

three-year shareholder approved life next

year, a review of the policy will be carried

outin FY27.

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

COMMITTEE MEMBERS

‡ Christophe Evain (Chair)

‡ Louise Casey

(from1April2026)

‡ Ian Cheshire

‡ Moni Mannings

‡ Manjiry Tamhane

(until31 March 2026)

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 and one

unscheduled meeting with

full attendance from members

at all meetings

—

Meetings are normally also

attended by the Chief Executive,

Chief People Officer and Head

ofReward

—

No individual is involved in

discussions on their own

remuneration

—

FIT Remuneration Consultants LLP

provide independent advice to

theCommittee

68 LANDSEC ANNUAL REPORT 2026

ANNUAL REPORT ON REMUNERATION

The Annual Report on Remuneration describes how the Directors’ Remuneration Policy has been applied in FY26 and how the Policy will operate

inFY27. The shareholder-approved Directors’ Remuneration Policy is available on our website. 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 27

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 FY26 901 16 95 451 241 979 2,683 1,012 1,671

FY25 878 15 92 439 654 1,617 3,695 985 2,710

Vanessa Simms

FY26 552 82 58 276 152 600 1,720 692 1,028

FY25 538 82 56 269 448 990 2,383 676 1,707

1. Base salary earned during FY26 (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 2023 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 24 June 2025

vesting date rather than the 566 pence three-month average share price to 31 March 2025) and the estimated value of dividend equivalents up to vesting.

6. In addition to the above, Mark Allan participated in the Share Incentive Plan from April 2025 and Vanessa Simms participated in the Sharesave at the maximum monthly

savings limit (£500) and in the Share Incentive Plan from February 2024.

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

TABLE 28

FY26 FY25

Fees

Benefits Total Fees

Benefits Total

Non-executive Directors

Ian Cheshire 394 – 394 384 – 384

Moni Mannings 91 – 91 89 – 89

James Bowling 96 – 96 94 – 94

Michael Campbell

70 – 70 – – –

Louise Casey

76 – 76 19 – 19

Christophe Evain 96 – 96 94 – 94

Anne Richards

44 – 44 – – –

Miles Roberts 76 – 76 74 – 74

Manjiry Tamhane

76 – 76 74 – 74

Former Non-executive Directors

Madeleine Cosgrave

21 – 21 74 – 87

Edward Bonham Carter – – – 21 – 49

1. Fees paid to Directors during the year ended 31 March 2026 (with prior year comparatives).

2. Board joiners during FY26: Michael Campbell – May 2025, Anne Richards – September 2025.

3. Board leavers during FY26: Madeleine Cosgrave – July 2025, Manjiry Tamhane – March 2026.

LANDSEC ANNUAL REPORT 2026

GOVERNANCE

ANNUAL REPORT ON REMUNERATION CONTINUED

GOVERNANCE

1.2 PAYMENTS TO FORMER DIRECTORS

LTIP awards held by Colette O’Shea (reduced by time pro-rating to 84,065 shares under award) vested at 60% of maximum in June 2025, with a

pre-tax value at vesting of £382K (including dividend equivalents). No other payments have been made in respect of the year ended 31 March 2026.

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 four strategic objectives including

three ESG objectives (two energy related and one D&I related). Alltargets were set at the beginning of the financial year under review.

Thefollowing table confirms the targets and their respective outcomes.

ANNUAL BONUS PERFORMANCE SUMMARY FOR FY26

TABLE 29

Measure Weighting Description Threshold Target Maximum Actual

EPRA Earnings

(Actual)

20% Sliding scale absolute EPRA targets £374m £380m £390m £385.1m – Ahead of target

LFL Net Rental

Income Growth

30% Sliding scale LFL Net Rental Income

growth targets

2.5% 4.0% 5.5% 4.6% – Ahead of target

Group Loan to

Value(LTV)

20% Sliding scale Group LTV targets 3 7. 5 % 36.5% 35.0% 38.7% – Below threshold

Strategic 30% Strategic objectives including ESG CEO – Around target

CFO – Just ahead of target

Total 100% 25% 50% 100% 51.2% to 51.8% of max

1. The EPRA Earnings result of £385.1m has been neutralised by £3.5m which reflects the lost income from the accelerated disposal of QAM in the year ended 31 March 2026,

albeit the full impact was offset by the beneficial timing of a number of smaller sales and acquisitions versus the original budget.

STRATEGIC OBJECTIVES

TABLE 30

Target Applies Weighting Description Assessment

ESG – Energy

intensity

CEO/CFO 2.5% Energy intensity reduction – % reduction from

FY25 baseline from 6% threshold to 6.5% target

to 7% stretch

Achieved 6.96%, just below stretch

ESG – Embodied

Carbon

CEO/CFO 2.5% Embodied carbon emissions reduction measured

in kgCO

e/m

– from 620 threshold to 600 target

to 590 stretch

Between target and stretch

588 kgCO

e/m

ESG – D&I CEO/CFO 5% (1) 90% of vacancies at Manager level and

abovemeet Landsec diverse shortlist targets;

(2)90% of promotions from manager to

leaderlevel assessed through a new debiased

promotions process; (3) external accessibility

audits completed across at least 75% of our

managed retail and workplace portfolio.

Achieved target, 2/3 targets met

Strategic measure CEO 20% Aggregate value of capital transactions – from

£750m disposals (threshold) to £1bn including a

minimum of £750m disposals (target) to £1.5bn

including a minimum of £1.2bn disposals (target)

94.6% of target (46.3% of max)

Strategic measure CFO 20% Developing and embedding the five-year

earningsgrowth plan

100.0% of target (50.0% of max.

Full review of plans completed

andpresented to the Board during

FY26 and evidenced by increase

inFY30 EPRA EPS outlook to 62pps

(from 60pps)

Total 30% of bonus

potential

CEO: 50.3% of max

CFO: 52.1% of max

1. While stretch performance has delivered against the embodied carbon emissions targets, the Committee applied judgement to determine a between target and stretch

performance given that a number of associated projects were not delivered. This above target performance was considered appropriate given the embodied carbon

emissions performance and noting that the non-delivery of the projects was due to asset sales or decisions not to progress rather than management performance.

TOTAL ANNUAL BONUS ACHIEVEMENT

TABLE 31

Director

EPRA

(% of max)

NRI

(% of max)

Loan to Value

(% of max)

Strategic

(% of max)

Total

(% of max)

Total

(% of salary)

Total

£k

Mark Allan

75.5% 70.0% 0%

50.3% 51.2% 76.8% 692

Vanessa Simms 52.1% 51.8% 7 7. 6 % 428

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

70 LANDSEC ANNUAL REPORT 2026

1.4 LONG-TERM INCENTIVE PLAN OUTTURNS

The table below summarises how we have assessed performance in respect of the 2023 LTIP awards granted on 8 June 2023 to Executive

Directors over the three years to 31 March 2026.

TABLE 32

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 2023

Threshold

(8%)

Median

Maximum

(40%)

Upper

quartile

Actual

Ranked

9/19

companies

36.84%

Total Return

onEquity (TRE)

40% Growth in EPRA NTA per share over the performance

period as adjusted for dividends

Threshold

(8%)

2% p.a.

Maximum

(40%)

10% p.a.

Actual

Just above

threshold

(2.67%)

8.33%

ESG

20% Reduction of carbon emissions associated with

energy against 2019/20 baseline

Threshold

(4%)

28.6%

Maximum

(20%)

35%

Actual

Above

maximum

(51%)

100%

Total 100% 20% 100% 38.1%

1. TSR calculated from 1 April 2023 to 31 March 2026 based on the constituents of the FTSE 350 Real Estate (excluding agencies).

2. Average TRE over the three years to 31 March 2026.

3. Carbon emissions, as neutralised for the decarbonisation of the UK electricity grid over the three years to 31 March 2026, reduced by 51% 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 33

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 411,209 156,670 254,539 979 979 0

Vanessa Simms 251,865 95,960 155,905 600 600 0

1. 2023 LTIP award granted on 8 June 2023.

2. Based on the average three-month share price to 31 March 2026 (625.0 pence).

3. Based on the prevailing share price at the relevant grant date (625.2 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 2023 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.

1.5 MALUS AND CLAWBACK

Annual bonus and long-term incentive awards are subject to malus and clawback provisions typically measured over two years (bonus) and five

years (LTIPs) from the relevant date of award. The Committee believes these periods are appropriate as they should provide an adequate period

of time for any relevant events to be identified.

There was no exercise of malus or clawback provisions under the Policy in respect of FY26.

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.

71LANDSEC ANNUAL REPORT 2026

GOVERNANCE

ANNUAL REPORT ON REMUNERATION CONTINUED

GOVERNANCE

DIRECTORS’ SHARES AS AT 31 MARCH 2026

TABLE 34

Name

Salary/

base fee at

31 March 2026

(£)

Minimum

shareholding

requirements

(% of salary/

base fee)

Required

holding

value

(£)

Holding

(ordinary

shares)

1 Apr 2025

Holding

(ordinary

shares)

31 Mar 2026

Deferred

bonus shares

under holding

period

Value of

holding

(£)

Met

requirement

or building

Mark Allan 904,736 300% 2,714,208 537,951 678,232 105,058 4,058,537 Met

Vanessa Simms 554,151 200% 1,108,302 222,541 319,980 71,932 1,980,314 Met

Ian Cheshire 395,906 – – 14,840 14,840 – 82,065 Met

Moni Mannings 76,157 – – 4,643 4,643 – 25,675 Met

James Bowling 76,157 – – 9,199 9,199 – 50,870 Met

Michael Campbell

76,157 – – – 1,175 – 6,497 Met

Louise Casey 76,157 – – – 500 – 2,765 Met

Christophe Evain 76,157 – – 8,000 8,000 – 44,240 Met

Anne Richards

76,157 – – – 16,497 – 91,228 Met

Miles Roberts 76,157 – – 3,645 3,645 – 20,156 Met

Manjiry Tamhane 76,157 – – 4,473 4,473 – 24,735 Met

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 purchased 26 shares in April and 25 shares in May and received 26 matching shares in April and 25

matching shares in May; (2)Vanessa Simms purchased 26 shares in April and 26 shares in May and received 26 matching shares in April and 26 matching shares in May.

3. Based on a share price of 553 pence on 31 March 2026 and including the value of any deferred bonus shares, net of notional tax and employee NIC.

4. Board joiners: Michael Campbell in May 2025 and Anne Richards in September 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 35

Award date

Market price

at award date

(p)

Options

awarded

Options

vested

Market price at

date of vesting

(p) Vesting date

Mark Allan LTIP 24/06/2022 694.3 356,042 213,625 625.50 24/06/2025

08/06/2023

625.2 411,209 08/06/2026

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

26/06/2025 622.5 436,017 26/06/2028

Deferred bonus 20/06/2024 609.5 28,596 28,596 625.00 20/06/2025

26/06/2025 622.5 70,551 26/06/2026

26/06/2025 622.5 34,507 26/06/2027

Vanessa Simms LTIP 24/06/2022 694.3 218,075 130,845 625.50 24/06/2025

08/06/2023

625.2 251,865 08/06/2026

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

26/06/2025 622.5 267,060 26/06/2028

Deferred bonus 20/06/2024 609.5 20,082 20,082 625.00 20/06/2025

26/06/2025 622.5 43,213 26/06/2026

26/06/2025 622.5 28,719 26/06/2027

1. See section 1.4 in respect of the vesting of the 2023 LTIP awards over three-year performance period to 31 March 2026.

LANDSEC ANNUAL REPORT 2026

2.3 SHARE AWARDS GRANTED IN FY26

Awards were granted under the LTIP in June 2025, subject to performance conditions measured over a three-year performance period.

Awardsmaynormally be exercised between 26 June 2028 and 26 June 2035 and a two-year post-vesting holding period applies.

TABLE 36

Number of awards Basis of grant Share price (p)

Face value (£)

Mark Allan 436,017 300% 622.5 2,714,206

Vanessa Simms 267,060 300% 622.5 1,662,449

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 2025 LTIP awards were as follows:

LTIP 2025-2028: 300% OF SALARY

TABLE 37

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 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 15% Reduction of carbon emissions over the three-year

performanceperiod.

Threshold (3%)

12%

Maximum (15%)

18%

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

targets – female representation at Leader level in 2028.

Threshold (1%)

39%

Maximum (5%)

44%

D&I 5% Delivery of 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%

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

Awards were granted under the Deferred Share Bonus Plan in June 2025 as set out below.

TABLE 38

Deferral period (years) Number of awards Vesting date Share price (p)

Face value (£)

Mark Allan 1 70,551 26/06/2026 622.5 439,180

2 34,507 26/06/2027 622.5 214,806

Vanessa Simms 1 43,213 26/06/2026 622.5 269,001

2 28,719 26/06/2027 622.5 178,776

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 39

Number of

options at

1 April 2025

Option price

per share

(p)

Number of

options granted

in year to

31 March 2026

Number

options

exercised/

lapsed

Market price

at exercise

(p)

Number of

options at

31 March 2026 Exercisable dates

Vanessa Simms 3,501 529.8 – – – 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%.

73LANDSEC ANNUAL REPORT 2026

GOVERNANCE

ANNUAL REPORT ON REMUNERATION CONTINUED

GOVERNANCE

2.5 DIRECTORS’ SERVICE CONTRACTS AND LETTERS OF APPOINTMENT

DATES OF APPOINTMENT FOR DIRECTORS

TABLE 40

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

Anne Richards 1 September 2025 19 March 2025

Miles Roberts 19 September 2022 1 August 2022

Manjiry Tamhane 1 March 2021 29 January 2021

1. Board leavers: Madeleine Cosgrave in July 2025 and Manjiry Tamhane in March 2026.

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 and undertaking our bi-annual Equal Pay Audit,

FIThas no other connection with the Group. Forthefinancial year under review, FIT received fees of £69,377 for advisory services to the

Commit tee (FY25: £69,534).

4. APPLICATION OF POLICY FOR FY27

The Directors’ Remuneration Policy is available on our website.

4.1 EXECUTIVE DIRECTORS’ BASE SALARIES FY27

From 1 June 2026, Executive Director salaries will increase by 3%. The average salary increase across the wider workforce will be 3%.

TABLE 41

Name

Current salary

(£k)

From 1 June 2026

(£k)

Percentage

increase

Mark Allan 905 932 3%

Vanessa Simms 554 571 3%

74 LANDSEC ANNUAL REPORT 2026

4.2 NON-EXECUTIVE DIRECTORS’ FEES FY27

The fees for the Chair and the Non-executive Directors for FY27 are presented below. Base fees for the Chair and the Non-executive Directors

will increase from 1 June 2026 by 3% (aligned to the level of increase for Executive Directors and wider workforce). In line with the Committee’s

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

TABLE 42

Current base fee

(£k)

From 1 June 2026

(£k)

Percentage

increase

Chair 396 408 3%

Non-executive Director – base fee 76 78 3%

Additional fees

Audit/Remuneration Committee Chair 20 20 –

Senior Independent Director 15 15 –

Employee engagement lead

– 10 –

1. The Board approved the introduction of a new fee for the role of Non-executive Director responsible for employee engagement with effect from 1 June 2026.

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 FY27, LFL Net

Rental Income Growth (30% weighting) and EPRA Earnings (20% weighting) will be retained as financial measures. The Committee has however

decided to replace LTV targets with net debt to EBITDA targets for FY27. While the Group loan to value measure (weighting 20%) was appropriate

in FY26 as a clear and externally understood measure during a year when completing disposals and managing leverage were priorities, the Group

is increasingly focused on net debt to EBITDA as our primary measure given it is a cash-based measure directly derived from matters that the

team have more influence over (as opposed to external valuations that are inherently more subjective). Our net debt to EBITDA ratio and targets

are communicated externally.

The remaining 30% will continue to be based on strategic targets, with at least three relating to Landsec’s ESG agenda (delivering on our

environmental and D&I strategies) and the remainder 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 FY27 PERFORMANCE CRITERIA: AWARDS CAPPED AT 150% OF SALARY

TABLE 43

Measure Weighting Description

EPRA earnings 20% EPRA earnings performance versus budgeted performance

LFL NRI 30% LFL net rental income percentage growth targets

Net debt: EBITDA 20% Net debt to EBITDA target

Strategic objectives 30% Five objectives covering broader strategic targets, environmental targets and diversity and inclusion

In respect of the 2026 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 2026-2029 PERFORMANCE CRITERIA: 300% OF SALARY

TABLE 44

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 2026.

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%)

19%

Maximum (15%)

30%

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 2029.

Threshold (1%)

39%

Maximum (5%)

45%

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

approved 2030 ethnicity targets – ethnic minority

representation at Leader level in 2029.

Threshold (1%)

11%

Maximum (5%)

17%

Total LTIP 100%

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

LANDSEC ANNUAL REPORT 2026

GOVERNANCE

ANNUAL REPORT ON REMUNERATION CONTINUED

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 2026, of £100 invested in Landsec on 31 March 2016, 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 45

Land Securities Group PLC FTSE 100 FTSE 350 Real Estate

100

150

250

200

Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-22 Mar-24Mar-23Mar-21 Mar-25 Mar-26

Value (£) (rebased)

123

124

133

109

132

154

162

176

196

241

100

108

107

108

131

101

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

CHIEF EXECUTIVE REMUNERATION OVER TEN YEARS

TABLE 46

Year Chief Executive

Single figure of

total remuneration

(£k)

Annual bonus

award

(% of maximum)

LTIP vesting

(% of maximum)

2026 Mark Allan 2,683 51.2 38.1

2025 Mark Allan 3,695

83.0 60.0

2024 Mark Allan 3,096 47.0 60.0

2023 Mark Allan 2,628 50.0 37.7

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

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 24 June 2025 vesting date. See section 1.1.

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

LANDSEC ANNUAL REPORT 2026

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 37 most senior employees (excluding the Executive Directors) ranged from 20% to 71% of salary

(FY25: 42% to 100%), equating to 49% to 118% of target. The average bonus was 37% of salary (FY25: 54%), equating to 93% of target.

B. ALL OTHER EMPLOYEES

From 1 June 2026, Executive Director salaries will increase by 3%. The average salary increase across the wider workforce will be 3%.

As at 31 March 2026, the ratio of the base salary of the Chief Executive to the average base salary across the Group (excluding Executive

Directors) was 13:1 (£904,736:£67,500 (FY25: 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 47

2021/22 2022/23 2023/24 2024/25 2025/26

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 2.5 5 (37)

Vanessa Simms – – – 13 24 (38) 4 161 2 3 – 87 2.5 1 (40)

Non-executive Directors

Ian Cheshire – – – – – – – – – 3 – – 2.5 – –

Moni Mannings – – – – – – – – – – – – 2.5 – –

James Bowling – – – – – – – – – – – – 2.5 – –

Louise Casey – – – – – – – – – – – – – – –

Christophe Evain 7 – – – – – 2 – – 3 – – 2.5 – –

Miles Roberts – – – – – – – – – 3 – – 2.5 – –

Michael Campbell

– – – – – – – – – – – – – – –

Anne Richards

– – – – – – – – – – – – – – –

Former Directors

Cressida Hogg 5 – – – – – – – – – – – – – –

Colette O’Shea 5 – 389 (49) (50) (71) – – – – – – – – –

Edward Bonham Carter 3 – – – – – 2 – – – – – – – –

Manjiry Tamhane

– – – – – – 3 – – 3 – – – – –

Madeleine Cosgrave

5 – – – – – 3 – – 3 – – – – –

Nicholas Cadbury 5 – – – – – – – – – – – – – –

Average employee (1) 2 219 15 25 (12) 6 (5) 2 3 (1) 39 3 7 (24)

1. Reflects the increase to base fees for Non-executive Directors awarded in 2024 for those serving in the full year 2024/25 and 2025/26.

2. Board joiners in FY26: Michael Campbell – May 2025, Anne Richards – September 2025. Board leavers in FY26: Madeleine Cosgrave – July 2025, Manjiry Tamhane – March 2026.

77LANDSEC ANNUAL REPORT 2026

GOVERNANCE

ANNUAL REPORT ON REMUNERATION CONTINUED

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 2026 using actual pay data from April 2025 to March 2026.

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 decreased versus last year

primarily as a result of the decrease in the bonus award (51.2% of maximum compared to 83% of maximum for the prior year) and LTIP vesting

(38.1% of maximum compared with 60% 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 48

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

31 March 2026 Option A 46:1 30:1 20:1

31 March 2025

Option A 57:1 36:1 25:1

31 March 2024 Option A 48:1 31:1 20:1

31 March 2023 Option A 47:1 29:1 18:1

31 March 2022 Option A 40:1 25:1 16:1

31 March 2021 Option A 22:1 14:1 10:1

31 March 2020 Option A 36:1 23:1 15:1

CEO pay P25 pay P50 pay P75 pay

Salary £901,058 £47,895 £65,948 £102,500

Total pay

2,3

£2,682,485 £58,023 £90,201 £135,997

1. The CEO pay ratios for FY25 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. The CEO’s single figure for the year ended 31 March 2026 is based on the estimated LTIP value in respect of the 2023 awards due to vest in June 2026 and excludes

estimated dividend equivalents.

E. TOTAL PAY AND BENEFITS

TABLE 49

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

Year ended Method

Total Pay

andBenefits

Total

Salary

Total Pay

andBenefits

Total

Salary

Total Pay

andBenefits

Total

Salary

31 March 2026 A £58,023 £47,895 £90,201 £65,948 £135,997 £102,500

31 March 2025 A £59,798 £48,235 £93,604 £66,135 £139,334 £94,169

31 March 2024 A £59,126 £46,421 £93,298 £69,126 £142,521 £102,767

31 March 2023 A £55,502 £43,811 £89,395 £64,851 £147,119 £104,813

31 March 2022 A £50,620 £38,038 £79,746 £58,083 £122,832 £77,600

31 March 2021 A £45,752 £39,000 £73,212 £55,776 £105,848 £77,000

31 March 2020 A £44,140 £29,785 £69,393 £58,565 £104,438 £79,203

78 LANDSEC ANNUAL REPORT 2026

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 50

March 2026

(£m)

March 2025

(£m)

change

Spend on pay

77 77 0

Dividend paid

293 297 (1)

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 LTIP, 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

4,340,245 ordinary shares at 31 March 2026 (2024/25: 2,061,915). 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 2026, the total number of shares which could be allotted under this Scheme was 502,543 shares (2024/25: 539,248),

which represents less than 0.07% (2024/25: 0.07%) of the issued share capital of the Company.

8. SHAREHOLDER ENGAGEMENT AND 2025 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. TheAnnual Report on Remuneration at our AGM on 10 July 2025 secured 96.63%

votes for and 3.37% votes against (with 131,489 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. COMMITTEE EFFECTIVENESS

At the end of the year, the Committee reviewed its effectiveness and 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 13 May 2026 and signed on its behalf by:

CHRISTOPHE EVAIN

CHAIR,REMUNERATION COMMITTEE

79LANDSEC ANNUAL REPORT 2026

GOVERNANCE

DIRECTORS’ REPORT

The Directors present their report for the

yearended 31 March 2026.

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 51

Pages

Likely future developments in

thebusiness

2-5

Employee engagement 26-28

Events after the reporting period 147

Going concern and viability

statement

47-48

Principal risks and uncertainties 43-46

Governance

(includingremuneration)

50-82

Capitalised interest 17-19

Financial instruments 131

Credit, market and liquidity risks 131-135

Related party transactions 146

Energy and carbon reporting 156-158

Workforce engagement 26-28

Stakeholders 23-25

Section 172 Statement 23-25

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.

DIVIDENDS

The results for the year are set out in the financial statements on pages 92-147.

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 FY26. This move aligns Landsec to peers and our financial reporting

timeline in addition to simplifying administration. The Company has paid an interim dividend

of 19.0 pence per ordinary share in January 2026. A final dividend of 22.2 pence per share is

being put to shareholders for approval at the AGM in July 2026:

TABLE 52

Interim 2025/2026 Final 2025/2026 (proposed)

PID

Non-PID

Total PID

Non-PID

Total

Amount 13.6 pence 5.4 pence 19.0 pence 22.2 pence 0 pence 22.2 pence

Record date 28 November 2025 19 June 2026

Payment date 19 January 2026 24 July 2026

1. Property income distribution (PID).

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

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 Manjiry Tamhane, who stepped

down from the Board on 31 March 2026 and

therefore is not standing for re-election.

Anne Richards joined the Board on

1 September 2025 and will stand for her

firstelection at the 2026 AGM in July.

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 (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.

80 LANDSEC ANNUAL REPORT 2026

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

FY26 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.

The third-party indemnity arrangements

were in force throughout the year and at

thedate of this report and are qualifying

indemnity provisions under the Companies

Act 2006. 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.

SHARE CAPITAL

Landsec has a single class of share capital

which is divided into ordinary shares of

nominal value 10²/₃ pence each ranking pari

passu. No other securities have been issued

by the Company. At 31 March 2026, there

were 751,831,297 ordinary shares in issue and

fully paid. As at 31 March 2026 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.

No shares were bought back during the year.

Further details relating to share capital,

including movements during the year, are set

out in note 36 to the financial statements.

At the Company’s AGM held on 10 July 2025,

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 2026 AGM and a renewal of that

authority will be sought.

The Company has not received any DTR

notifications during the period from 1 April

to13 May 2026, being the period from the

year-end through to the date on which this

report hasbeen signed. 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 2026 the EBT held 4,340,245

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 35-37 to the financial statements.

SUBSTANTIAL SHAREHOLDERS

As at 31 March 2026, 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 53

Shareholder name

Number of

ordinary shares

Percentage of total voting rights

attaching to issued share capital

1,2

Blackrock Inc 83,787,961 11.23

Caxton Associates LLP 40,500,996 5.43

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 2026 was

745,042,061.

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

inaccordance with DTR 5.

LANDSEC ANNUAL REPORT 2026

GOVERNANCE

DIRECTORS’ REPORT CONTINUED

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

2026AGM. These documents are available

onLandsec’s website at: landsec.com/en/

investors/shareholders-equity-investors/

annual-general-meeting

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’s

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 2025 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 26-28.

POLITICAL DONATIONS

The Company did not make any political

donations or expenditure in the year that

require disclosure (2025: 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EY as auditor of the Company will be

proposed at the 2026 AGM. The reappointment

has been recommended to the Board by the

Audit Committee and EY has indicated its

willingness to remain in office.

2026 ANNUAL GENERAL MEETING

This year’s AGM is scheduled to be held

at10.30am on Thursday, 9 July 2026 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/en/investors/

shareholders-equity-investors/annual-

general-meeting

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 13 May 2026.

By Order of the Board.

MARINA THOMAS

COMPANY SECRETARY

Land Securities Group PLC

Company number 4369054

82 LANDSEC ANNUAL REPORT 2026

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 and Company

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

•

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

•

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 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, profit or loss

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

In addition, the Directors confirm that, to the

best of their knowledge:

•

the Group financial statements, prepared

in accordance with the applicable set of

accounting standards, give a true and fair

view of the assets, liabilities, financial

position and profit or loss of the Company

and the undertakings included in the

consolidation taken as a whole

•

the Strategic Report includes a fair review

of the development and performance of the

business and the position of the Company

and the undertakings included in the

consolidation taken as a whole, together

with a description of the principal risks and

uncertainties that they face

The Statement of Directors’ Responsibilities

was approved by the Board of Directors on

13 May 2026 and is signed on its behalf by:

MARK ALLAN VANESSA SIMMS

CHIEF EXECUTIVE CHIEF FINANCIAL

OFFICER

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

FINANCIAL STATEMENTS

83LANDSEC ANNUAL REPORT 2026

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 2026 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 2026 which comprise:

Group Parent Company

Balance sheet as at 31 March 2026 Balance sheet as at 31 March 2026

Income statement for the year then ended Statement of changes in equity for the year then ended

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

Statement of changes in equity for the year then ended Related notes 1 to 41 to the financial statements, including:

material accounting policy information

Statement of cash flows for the year then ended

Related notes 1 to 41 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 Company 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 2027 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 2027 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

84 LANDSEC ANNUAL REPORT 2026

•

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 171) 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 2027.

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 2027.

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: Office-led, Retail-led, Residential-led and Other assets.

• We have performed an audit of the complete financial information of the Group including the Parent Company component.

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 £114m which represents 1.0% of total assets in the Group balance sheet at 31 March 2026. 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), loans and borrowings or derivatives.

• Parent Company materiality of £54m, which represents 1.0% of total assets in the Parent Company balance sheet. Parent

Company materiality is applied to all balances within the Parent Company.

85LANDSEC ANNUAL REPORT 2026

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 43-46 in the principal risks and uncertainties. They have also

explained their climate commitments on pages 29-34. 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 43-46 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 judgement, 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.

86 LANDSEC ANNUAL REPORT 2026

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

2026: £10,018m in investment

properties and £636m (the

Group’s share) in 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)

Refer to the Report of the Audit

Committee (pages 64-67);

Accounting policies (pages 112-

113); Note 13 of the Financial

statements (pages 114-117).

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 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, ESG considerations and size

across asset classes and segments, to identify higher risk properties. Our higher risk

properties include properties not tested in prior years. These properties comprised 81%

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 9 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 13 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 2026.

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.

87LANDSEC ANNUAL REPORT 2026

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.

2026: £618m rental income

(2025: £600m rental income)

2026: £190m service charge

income (2025: £155m service

charge income)

Refer to the Report of the Audit

Committee (pages 64-67);

Accounting policies (pages 102-

103); note 6 of the Financial

statements (pages 103-104).

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 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.

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)

1.0% of total assets

(2025: 0.9% of total assets)

£114m

(2025: £105m)

£85m

(2025: £79m)

£6m

(2025: £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 (excluding the related

finance expenses)

5% of EPRA earnings

before tax

(2025: 5% EPRA earnings

before tax)

£19m

(2025: £19m)

£14m

(2025: £14m)

£1m

(2025: £1m)

Parent Company 1.0% of total assets

(2025: 0.9% of total assets)

£54m

(2025: £48m)

£40m

(2025: £36m)

£2.7m

(2025: £2m)

88 LANDSEC ANNUAL REPORT 2026

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 1.0% of total assets (2025: 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), loans and borrowings (excluding the related finance expense) or derivatives, 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% (2025: 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 £6m (2025: £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 and those reports 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.

89LANDSEC ANNUAL REPORT 2026

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.

•

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 47-48 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 47-48;

•

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 43-46;

•

The section of the annual report that describes the review of effectiveness of risk management and internal control systems set out

on pages 40-46; 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 below.

90 LANDSEC ANNUAL REPORT 2026

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 13 years, covering the years ending 31 March

2014 to 31 March 2026. 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

13 May 2026

91LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

				2026			2025
			Capital			Capital
		EPRA	and other		EPRA	and other
		earnings	items	Total	earnings	items	Total
	Notes	£m	£m	£m	£m	£m	£m
Revenue	6	860	32	892	797	45	842
Costs	7	(393)	(79)	(472)	(352)	(77)	(429)
		467	(47)	420	445	(32)	413
Share of post-tax profit from joint ventures	15	25	27	52	23	14	37
Loss on disposal of investment properties		–	(103)	(103)	–	(15)	(15)
Net surplus on revaluation of investment properties	13	–	96	96	–	91	91
Operating profit		492	(27)	465	468	58	526
Finance income	9	14	–	14	15	–	15
Finance expense	9	(124)	(9)	(133)	(109)	(39)	(148)
Profit before tax		382	(36)	346	374	19	393
Taxation	11			(2)			3
Profit for the year				344			396
Attributable to:
Shareholders of the parent				343			396
Non-controlling interests				1			–
				344			396
Profit per share attributable to shareholders of the parent:
Basic earnings per share	5			46.2p			53.3p
Diluted earnings per share	5			45.9p			53.0p

STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED 31 MARCH 2026

		2026	2025
		Total	Total
	Notes	£m	£m
Profit for the year		344	396
Items that may be subsequently reclassified to the income statement:
Net surplus on revaluation of owner-occupied property	18	2	12
Deferred tax charge on owner-occupied property revaluation surplus	11	–	(3)
Other comprehensive income for the year		2	9
Total comprehensive income for the year		346	405
Attributable to:
Shareholders of the parent		345	405
Non-controlling interests		1	–
		346	405

INCOME STATEMENT

FOR THE YEAR ENDED 31 MARCH 2026

92 LANDSEC ANNUAL REPORT 2026

			Group		Company
		2026	2025	2026	2025
	Notes	£m	£m	£m	£m
Non-current assets
Investment properties	13	10,018	10,034	–	–
Property, plant and equipment	18	42	42	–	–
Intangible assets	19	3	3	–	–
Net investment in finance leases	17	20	19	–	–
Investments in joint ventures	15	593	551	–	–
Investments in subsidiary undertakings	28	–	–	5,358	5,363
Trade and other receivables	26	148	229	–	–
Other non-current assets	29	45	22	–	–
Total non-current assets		10,869	10,900	5,358	5,363
Current assets
Trading properties	14	56	81	–	–
Trade and other receivables	26	491	467	–	–
Monies held in restricted accounts and deposits	22	11	20	–	–
Cash and cash equivalents	23	106	39	–	1
Other current assets	30	7	4	–	–
Non-current asset held for sale		–	110	–	–
Total current assets		671	721	–	1
Total assets		11,540	11,621	5,358	5,364
Current liabilities
Borrowings	21	(746)	(752)	–	–
Trade and other payables	27	(363)	(406)	(1,658)	(1,750)
Provisions	33	(41)	(44)	–	–
Other current liabilities	31	(18)	(6)	–	–
Total current liabilities		(1,168)	(1,208)	(1,658)	(1,750)
Non-current liabilities
Borrowings	21	(3,749)	(3,802)	–	–
Trade and other payables	27	(40)	(44)	–	–
Provisions	33	(23)	(30)	–	–
Other non-current liabilities	32	(22)	(5)	–	–
Total non-current liabilities		(3,834)	(3,881)	–	–
Total liabilities		(5,002)	(5,089)	(1,658)	(1,750)
Net assets		6,538	6,532	3,700	3,614
Equity
Capital and reserves attributable to shareholders
Ordinary shares	36	80	80	80	80
Share premium		320	319	320	319
Other reserves		29	30	15	30
Merger reserve		–	–	374	374
Retained earnings		6,108	6,085	2,911	2,811
Equity attributable to shareholders of the parent		6,537	6,514	3,700	3,614
Equity attributable to non-controlling interests		1	18
Total equity		6,538	6,532

The profit for the year of the Company was £406m (2025: £497m).

The financial statements on pages 92-147 were approved by the Board of Directors on 13 May 2026 and were signed on its behalf by:

MARK ALLAN

DIRECTOR

VANESSA SIMMS

DIRECTOR

BALANCE SHEETS

AT 31 MARCH 2026

93LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

							Attributable to shareholders of the parent	Group
							Non-
		Ordinary	Share	Other	Retained		controlling	Total
		shares	premium	reserves 1	earnings	Total	interests	equity
	Notes	£m	£m	£m	£m	£m	£m	£m
At 1 April 2024		80	319	23	5,980	6,402	45	6,447
Total comprehensive income for the financial year		–	–	–	405	405	–	405
Transactions with shareholders of the parent:
Share-based payments	35	–	–	7	(3)	4	–	4
Dividends paid to shareholders of the parent	10	–	–	–	(297)	(297)	–	(297)
Acquisition of non-controlling interests		–	–	–	–	–	(56)	(56)
Total transactions with shareholders of the parent		–	–	7	(300)	(293)	(56)	(349)
Dividends paid to non-controlling interests		–	–	–	–	–	(1)	(1)
Issued share capital		–	–	–	–	–	12	12
Acquisition of subsidiaries		–	–	–	–	–	18	18
Total transactions with shareholders		–	–	7	(300)	(293)	(27)	(320)
At 31 March 2025		80	319	30	6,085	6,514	18	6,532
Total comprehensive income for the financial year		–	–	2	343	345	1	346
Transfer to revaluation surplus reserve		–	–	12	(12)	–	–	–
Transactions with shareholders of the parent:
Share-based payments	35	–	1	(15)	(3)	(17)	–	(17)
Dividends paid to shareholders of the parent	10	–	–	–	(303)	(303)	–	(303)
Total transactions with shareholders of the parent
Dividends paid to non-controlling interests		–	–	–	–	–	(2)	(2)
Recognition of redemption liability	31	–	–	–	(2)	(2)	(16)	(18)
Total transactions with shareholders		–	1	(15)	(308)	(322)	(18)	(340)
At 31 March 2026		80	320	29	6,108	6,537	1	6,538

Attributable to shareholders Company

Notes

Ordinary

£m

premium

£m

Other

reserves

£m

Merger

reserve

£m

Retained

earnings

£m

Total

equity

£m

At 1 April 2024 80 319 23 374 2,614 3,410

Total comprehensive income for the financial year – – – – 497 497

Transactions with shareholders:

Share-based payments 35 – – 7 – (3) 4

Dividends paid to shareholders 10 – – – – (297) (297)

Total transactions with shareholders – – 7 – (300) (293)

At 31 March 2025 80 319 30 374 2,811 3,614

Total comprehensive income for the financial year – – – – 406 406

Transactions with shareholders:

Share-based payments 35 – 1 (15) – (3) (17)

Dividends paid to shareholders 10 – – – – (303) (303)

Total transactions with shareholders – 1 (15) – (306) (320)

At 31 March 2026 80 320 15 374 2,911 3,700

1. Included within other reserves is a revaluation surplus reserve of £14m pertaining to owner-occupied property.

2. Available for distribution.

STATEMENTS OF CHANGES IN EQUITY

FOR THE YEAR ENDED 31 MARCH 2026

94 LANDSEC ANNUAL REPORT 2026

STATEMENTS OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2026

			Group		Company
		2026	2025	2026	2025
	Notes	£m	£m	£m	£m
Cash flows from operating activities
Net cash generated from operations	12	353	381	–	–
Interest received		47	23	–	–
Interest paid		(180)	(144)	–	–
Rents paid		(13)	(12)	–	–
Capital expenditure on trading properties		(6)	(8)	–	–
Disposal of trading properties		13	13	–	–
Other operating cash flows		–	3	(1)	(1)
Net cash inflow/(outflow) from operating activities	12	214	256	(1)	(1)
Cash flows from investing activities
Investment property development expenditure		(298)	(293)	–	–
Other investment property related expenditure		(147)	(163)	–	–
Acquisition of investment properties, net of cash acquired		(84)	(325)	–	–
Acquisition of subsidiaries, net of cash acquired		–	(18)	–	–
Disposal of investment properties		734	404	–	–
Cash distributions from joint ventures	15	11	12	–	–
Net cash inflow/(outflow) from investing activities		216	(383)	–	–
Cash flows from financing activities
Net proceeds from new borrowings (net of finance fees)	21	300	963	–	–
Net repayment of borrowings	21	(338)	(562)	–	–
Net cash outflow from derivative financial instruments	21	(16)	(6)	–	–
Acquisition of own shares		(27)	–	–	–
Proceeds from non-controlling interest share capital issuance		–	12	–	–
Dividends paid to shareholders of the parent	10	(290)	(305)	–	–
Dividends paid to non-controlling interests		(2)	(1)	–	–
Decrease/(increase) in monies held in restricted accounts and deposits		9	(14)	–	–
Other financing cash flows		1	1	–	–
Net cash (outflow)/inflow from financing activities		(363)	88	–	–
Increase/(decrease) in cash and cash equivalents for the year		67	(39)	(1)	(1)
Cash and cash equivalents at the beginning of the year		39	78	1	2
Cash and cash equivalents at the end of the year	23	106	39	–	1

95LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

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 2026. The Group’s going concern assessment considers changes in the Group’s principal risks (see pages 43-46) 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 21.

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 2027, are shown below alongside the actual position at 31 March 2026.

		Mitigated downside
		scenario
Key metrics	31 March 2026	30 September 2027
Security Group LTV	41.6%	46.6%
Adjusted net debt	£4,215m	£4,608m
EPRA net tangible assets	£6,574m	£5,768m
Available financial headroom	£1.3bn	£0.4bn

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026

96 LANDSEC ANNUAL REPORT 2026

In our mitigated downside scenario, the Group has sufficient financial headroom, 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 28% from the sensitised values forecasted at 30 September 2027 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 2026 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 £277m in the full year ending 31 March 2027 and at least £156m in the

six-month period ending 30 September 2027 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 2026 are tracking well above the level required to meet the interest cover covenant for the year ended 31 March 2027. The Directors

do not anticipate a reduction in Security Group earnings over the period ending 30 September 2027 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 2026.

BASIS OF CONSOLIDATION

The consolidated financial statements for the year ended 31 March 2026 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 statement of changes in equity or the income statement. Movements are recognised in the statement of changes in equity

if the option holder holds a non-controlling interest.

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.

97LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 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 11)

•

Accounting for certain property acquisitions and disposals (note 13)

KEY ESTIMATES

•

Valuation of investment properties (note 13)

OTHER SOURCES OF ESTIMATION UNCERTAINTIES

•

Valuation of trading properties and owner-occupied property (note 14 and note 18)

•

Impairment of trade receivables (note 26)

•

Estimation of provisions (note 33)

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 Task Force on Climate-related Financial

Disclosures. These considerations included the limited exposure in terms of our investment properties to achieve our science-based target by

2030 (note costs 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 STANDARD

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 21 – Lack of exchangeability

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:

•

IFRS 18 Presentation and Disclosure in Financial Statements

•

IFRS 19 Subsidiaries without Public Accountability: Disclosures

•

Amendments to IFRS 7 and IFRS 9 Classification and measurement of financial instruments and for contracts referencing nature-dependent

electricity

•

Annual Improvements to IFRS Accounting Standards (Volume 11)

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.

98 LANDSEC ANNUAL REPORT 2026

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 £10.8bn, 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 Office-led, Retail-led, Residential-led and

Other assets.

The Office-led segment includes all operating or under development office assets in London and the regions as well as the associated retail

and other premises in proximity to these assets. The Retail-led segment includes all the shopping centres and outlets in our portfolio. The

Residential-led segment includes our residential developments and the Other assets segment mainly includes assets that will not be a focus

for capital investment and consists of our retail and leisure park assets.

In previous financial periods, our segmental reporting reflected that our operations were organised into Central London, Major retail

destinations (Major retail), Mixed-use urban neighbourhoods (Mixed-use urban) and Subscale sectors. As noted in the Group’s Annual Report

for the year ended 31 March 2025, the Group has aligned its financial reporting to reflect its updated strategy and operating model and

consequently, comparatives have been restated.

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.

99LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

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.

SEGMENTAL RESULTS

EPRA EARNINGS

					2026					2025 1
	Office-	Retail-	Residential-	Other		Office-	Retail-	Residential-	Other
	led	led	led	assets	Total	led	led	led	assets	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Rental income	327	264	12	52	655	327	222	12	74	635
Finance lease interest	–	–	–	1	1	–	–	–	1	1
Gross rental income (before rents payable)	327	264	12	53	656	327	222	12	75	636
Rents payable 2	(3)	(9)	–	–	(12)	(4)	(7)	–	(1)	(12)
Gross rental income (after rents payable)	324	255	12	53	644	323	215	12	74	624
Service charge income 3	85	99	5	11	200	77	75	5	8	165
Service charge expense 3	(85)	(103)	(6)	(12)	(206)	(81)	(80)	(5)	(10)	(176)
Net service charge expense	–	(4)	(1)	(1)	(6)	(4)	(5)	–	(2)	(11)
Other property related income	22	8	1	3	34	23	8	2	3	36
Direct property expenditure	(51)	(48)	(5)	(7)	(111)	(49)	(45)	(4)	(11)	(109)
Other operating income	22	–	–	–	22	10	–	–	–	10
Other operating expense	(23)	–	–	–	(23)	(9)	–	–	–	(9)
Movement in bad and doubtful debts	1	(1)	–	2	2	1	7	1	2	11
provision
Segment net rental income	295	210	7	50	562	295	180	11	66	552
Other income					1					1
Administrative expense					(61)					(71)
Depreciation					(2)					(3)
EPRA earnings before interest					500					479
Finance income					14					15
Finance expense					(124)					(109)
Joint venture net finance expense					(8)					(11)
EPRA earnings attributable to shareholders					382					374
of the parent
Capital/other items					(36)					19
Profit before tax					346					393
Taxation					(2)					3
Profit for the year					344					396

1. Restated for changes in the Group’s operating segments as outlined in the note narrative above.

2. Included within rents payable is lease interest payable of £7m (2025: £8m) across the four segments.

3. Current year balances reflect a reclassification of service charge management fees from service charge expense to service charge income of £11m. While the

comparatives have not been restated, the equivalent reclassification would have been £8m.

4 SEGMENTAL INFORMATION CONTINUED

100 LANDSEC ANNUAL REPORT 2026

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 accounting return. Refer to table 73 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 2026		Year ended 31 March 2025
	Profit for	EPRA	Profit for	EPRA
	the year	earnings	the year	earnings
	£m	£m	£m	£m
Profit attributable to shareholders of the parent	343	343	396	396
Valuation and loss on disposals 1	–	(17)	–	(84)
Net finance expense (excluded from EPRA earnings)	–	9	–	39
Impairment of goodwill	–	–	–	22
Taxation	–	2	–	(3)
Net development contract and transaction expenditure	–	30	–	(3)
Restructuring, integration and other costs	–	15	–	7
Profit used in per share calculation	343	382	396	374

	IFRS	EPRA	IFRS	EPRA
Basic earnings per share	46.2p	51.4p	53.3p	50.3p
Diluted earnings per share	45.9p	51.1p	53.0p	50.1p

1. Whilst the Group’s accounting policy is to recognise the profit/(loss) on disposal of investment properties with reference to the asset’s carrying amount at the beginning

of the accounting period, £22m of the balance pertains to revaluation movements arising from rental income received from 1 April 2025 to the date of disposal on the

Queen Anne’s Mansions office block.

NET ASSETS PER SHARE

			31 March 2026			31 March 2025
	Net assets	EPRA NDV	EPR A NTA	Net assets	EPRA NDV	EPRA NTA
	£m	£m	£m	£m	£m	£m
Net assets attributable to shareholders of the parent	6,537	6,537	6,537	6,514	6,514	6,514
Shortfall of fair value over net investment in finance leases book value	–	(6)	(6)	–	(8)	(8)
Other intangible asset	–	–	(1)	–	–	(2)
Fair value of interest-rate swaps	–	–	(4)	–	–	(1)
Excess of fair value of trading properties over book value	–	48	48	–	27	27
Shortfall of fair value of debt over book value (note 21)	–	359	–	–	334	–
Net assets used in per share calculation	6,537	6,938	6,574	6,514	6,867	6,530

	IFRS	EPRA NDV	EPRA NTA	IFRS	EPRA NDV	EPRA NTA
Net assets per share	882p	n/a	n/a	877p	n/a	n/a
Diluted net assets per share	877p	931p	882p	872p	919p	874p

101LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NUMBER OF SHARES

		2026		2025
	Weighted		Weighted
	average	31 March	average	31 March
	million	million	million	million
Ordinary shares	752	752	752	752
Treasury shares	(7)	(7)	(7)	(7)
Own shares	(2)	(4)	(2)	(2)
Number of shares – basic	743	741	743	743
Dilutive effect of share options	4	4	4	4
Number of shares – diluted	747	745	747	747

Total accounting return 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 accounting return

over the year.

TOTAL ACCOUNTING RETURN BASED ON EPRA NTA

	Year ended	Year ended
	31 March 2026	31 March 2025
	Pence	Pence
Increase in EPRA NTA per share	8	15
Dividend paid per share in the year (note 10)	41	40
Total return (a)	49	55
EPRA NTA per share at the beginning of the year (b)	874	859
Total accounting return (a/b)	5.6%	6.4%

6 REVENUE

A 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.

5 PERFORMANCE MEASURES CONTINUED

102 LANDSEC ANNUAL REPORT 2026

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.

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.

S 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.

			2026			2025
		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)	593	2	595	563	4	567
Adjustment for lease incentives	23	–	23	33	–	33
Rental income	616	2	618	596	4	600
Service charge income 1	190	–	190	154	1	155
Trading property sales proceeds	–	30	30	–	22	22
Other property related income	30	–	30	34	1	35
Finance lease interest	1	–	1	1	–	1
Development contract and transaction income	–	–	–	–	17	17
Other operating income	22	–	22	10	–	10
Other income	1	–	1	2	–	2
Revenue per the income statement	860	32	892	797	45	842

1. Current year balances reflect a reclassification of service charge management fees from service charge expense to service charge income of £11m. While the comparatives

have not been restated, the equivalent reclassification would have been £8m.

103

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

The following table reconciles revenue per the income statement to the individual components of revenue presented in note 4.

				2026				2025
			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
Rental income	618	39	(2)	655	600	39	(4)	635
Service charge income 1	190	10	–	200	155	11	(1)	165
Other property related income	30	4	–	34	35	2	(1)	36
Finance lease interest	1	–	–	1	1	–	–	1
Other operating income	22	–	–	22	10	–	–	10
Other income	1	–	–	1	2	–	(1)	1
Revenue in the segmental	862	53	(2)	913	803	52	(7)	848
information note
Development contract and transaction	–	–	–	–	17	–	–	17
income
Trading property sales proceeds	30	–	–	30	22	–	–	22
Revenue including Capital and other items	892	53	(2)	943	842	52	(7)	887

1. Current year balances reflect a reclassification of service charge management fees from service charge expense to service charge income of £11m. While the comparatives

have not been restated, the equivalent reclassification would have been £8m.

7 COSTS

A 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.

6 REVENUE CONTINUED

104 LANDSEC ANNUAL REPORT 2026

			2026			2025
		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 1	194	–	194	164	1	165
Direct property expenditure	104	–	104	103	1	104
Movement in bad and doubtful debts provision	(2)	–	(2)	(9)	–	(9)
Administrative expenses	61	2	63	71	–	71
Impairment of trading properties	–	3	3	–	4	4
Cost of trading property disposals	–	31	31	–	28	28
Development contract and transaction expenditure	–	30	30	–	14	14
Depreciation, including amortisation of software	2	1	3	3	1	4
Reversal of impairment of amounts due from joint ventures	–	–	–	–	(1)	(1)
Impairment of goodwill	–	–	–	–	22	22
Fair value gain on remeasurement of investment	–	(2)	(2)	–	–	–
Other operating expense	23	–	23	9	–	9
Restructuring, integration and other costs	–	14	14	–	7	7
Total costs per the income statement	393	79	472	352	77	429

The following table reconciles costs per the income statement to the individual components of costs presented in note 4.

			Adjustment	2026			Adjustment	2025
			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 1	194	13	(1)	206	165	12	(1)	176
Direct property expenditure	104	7	–	111	104	6	(1)	109
Administrative expenses	61	–	–	61	71	–	–	71
Depreciation, including amortisation	2	–	–	2	3	–	–	3
of software
Movement in bad and doubtful	(2)	–	–	(2)	(9)	(2)	–	(11)
debts provision
Other operating expense	23	–	–	23	9	–	–	9
Costs in the segmental information note	393	21	(1)	413	354	17	(2)	369
Impairment of trading properties	3	–	–	3	4	–	–	4
Cost of trading property disposals	31	–	–	31	28	–	–	28
Administrative expenses	2	–	–	2	–	–	–	–
Development contract and transaction	30	–	–	30	14	2	–	16
expenditure
Depreciation	1	–	–	1	1	–	–	1
Reversal of impairment of amounts	–	–	–	–	(1)	–	–	(1)
due from joint ventures
Fair value gain on remeasurement	(2)	–	–	(2)	–	–	–	–
of investment
Impairment of goodwill	–	–	–	–	22	–	–	22
Restructuring, integration and other costs	14	–	–	14	7	–	–	7
Costs including Capital and other items	472	21	(1)	492	429	19	(2)	446

1. Current year balances reflect a reclassification of service charge management fees from service charge expense to service charge income of £11m. While the comparatives

have not been restated, the equivalent reclassification would have been £8m.

105

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

EMPLOYEE COSTS

	2026	2025
	£m	£m
Salaries and wages	69	71
Employer payroll taxes	10	10
Other employee costs	5	5
Share-based payments (note 35)	9	6
	93	92

	2026	2025
	Number	Number
The average monthly number of employees during the year was:
Indirect property or contract and administration	367	394
Direct property or contract services:
Full-time 1	312	291
Part-time	21	19
	700	704

1. During the year 20 (2025: 37) employees were transferred in by TUPE as a result of acquisitions.

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 (2025: 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 68-79.

Details of the employee costs associated with the Group’s key management personnel are included in note 39.

8 AUDITOR REMUNERATION

	2026	2025
	£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	0.5	0.8
Audit of joint ventures	0.2	0.1
	2.0	2.2
Non-audit fees:
Other assurance services	0.4	0.3
	2.4	2.5

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.

7 COSTS CONTINUED

106 LANDSEC ANNUAL REPORT 2026

9 NET FINANCE EXPENSE

			2026			2025
		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	9	–	9	11	–	11
Other interest receivable	5	–	5	4	–	4
	14	–	14	15	–	15
Finance expense
Bond and debenture debt	(105)	–	(105)	(101)	–	(101)
Bank and other short-term borrowings	(59)	–	(59)	(36)	(5)	(41)
Fair value movement on derivatives	–	(9)	(9)	–	(34)	(34)
Other interest payable	(2)	–	(2)	–	–	–
	(166)	(9)	(175)	(137)	(39)	(176)
Interest capitalised in relation to properties under development	42	–	42	28	–	28
	(124)	(9)	(133)	(109)	(39)	(148)
Net finance expense	(110)	(9)	(119)	(94)	(39)	(133)
Joint venture net finance expense	(8)			(11)
Net finance expense included in EPRA earnings	(118)			(105)

Lease interest payable of £7m (2025: £8m) is included within rents payable as detailed in note 4.

107LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

10 DIVIDENDS

A 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.

DIVIDENDS PAID

			Pence per share			Year ended 31 March
					2026	2025
	Payment date	PID	Non-PID	Total	£m	£m
For the year ended 31 March 2024:
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	–	9.40	9.40		70
Third interim	11 April 2025	9.50	–	9.50	71
Final	25 July 2025	12.30	–	12.30	91
For the year ended 31 March 2026:
Interim	9 January 2026	13.60	5.40	19.00	141
Gross dividends					303	297
Dividends in the statement of changes in equity					303	297
Timing difference on payment of withholding tax					(13)	8
Dividends in the statement of cash flows					290	305

The Board has recommended a final dividend for the year ended 31 March 2026 of 22.2p per ordinary share (2025: 12.3p) to be paid as a PID.

This final dividend will result in a further estimated distribution of £164m (2025: £92m). Subject to shareholders’ approval at the Annual General

Meeting, the final dividend will be paid on 24 July 2026 to shareholders registered at the close of business on 19 June 2026.

The total dividend paid and recommended in respect of the year ended 31 March 2026 is 41. 2p per ordinary share (2025: 40.4p) resulting in

a total estimated distribution of £305m (2025: £301m).

For the year ending 31 March 2027, the Group will pay two half-yearly dividends, likely to be in January 2027 and July 2027.

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 3 July 2026.

108 LANDSEC ANNUAL REPORT 2026

11 INCOME TAX

A 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.

S SIGNIFICANT ACCOUNTING JUDGEMENT

The Group is a Real Estate Investment Trust (‘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; and

•

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 2026 and 2025 are:

	2026	2025
	£m	£m
Income statement:
Current income tax charge	2	–
Deferred income tax credit	–	(3)
Statement of other comprehensive income:
Deferred income tax charge	–	3
Total income tax charge in the consolidated statement of comprehensive income	2	–

109LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

The tax for the year is lower than the standard rate of corporation tax in the UK of 25% (2025: 25%). The differences are explained as below.

	2026	2025
	£m	£m
Profit before tax	346	393
Profit before tax multiplied by the rate of corporation tax in the UK of 25% (2025: 25%)	87	98
Adjustment for exempt property rental profits and revaluations in the year	(95)	(110)
	(8)	(12)
Effects of:
Timing difference on repurchase of medium term notes	(7)	(11)
Interest rate fair value movements and other temporary differences	3	6
Impairment of goodwill	–	5
Revaluation of owner-occupied property	–	(3)
Non-allowable expenses and non-taxable items	1	12
Movement in unrecognised tax losses	13	3
Total income tax charge in the consolidated statement of comprehensive income	2	–

Deferred tax is calculated at the rate substantively enacted at the balance sheet date of 25% (2025: 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.

	2026	2025
	£m	£m
Revenue losses	235	247
Capital losses	258	263
Other unrecognised temporary differences	7	2
Total unrecognised items	500	512

The movement in unrecognised tax losses reflects losses arising in the year and utilisation of losses brought forward.

11 INCOME TAX CONTINUED

110 LANDSEC ANNUAL REPORT 2026

12 NET CASH GENERATED FROM OPERATIONS

RECONCILIATION OF OPERATING PROFIT/(LOSS) TO NET CASH GENERATED FROM OPERATIONS

		Group		Company
	2026	2025	2026	2025
	£m	£m	£m	£m
Operating profit/(loss)	465	526	(41)	(329)
Adjustments for:
Net surplus on revaluation of investment properties	(96)	(91)	–	–
Loss on disposal of trading properties	1	6	–	–
Loss on disposal of investment properties	103	15	–	–
Share of profit from joint ventures	(52)	(37)	–	–
Share-based payment charge	9	6	–	–
Impairment of goodwill	–	22	–	–
Reversal of amounts due from joint ventures	–	(1)	–	–
Non-cash development contract and transaction expenditure	29	1	–	–
Impairment charge on investment in subsidiary	–	–	14	302
Rents payable	11	11	–	–
Depreciation and amortisation	2	4	–	–
Fair value gain on remeasurement of investment	(2)	–	–	–
Impairment of trading properties	3	4	–	–
Non-cash restructuring, integration and other costs	7	–	–	–
	480	466	(27)	(27)
Changes in working capital:
Increase in receivables	(56)	(128)	–	–
(Decrease)/increase in payables and provisions	(71)	43	27	27
Net cash generated from operations	353	381	–	–

RECONCILIATION TO ADJUSTED NET CASH INFLOW FROM OPERATING ACTIVITIES

		Group		Company
	2026	2025	2026	2025
	£m	£m	£m	£m
Net cash inflow from operating activities	214	256	–	–
Joint ventures net cash inflow from operating activities	6	4	–	–
Adjusted net cash inflow from operating activities 1	220	260	–	–

1. Includes cash flows relating to the interest in Liverpool ONE which is not owned by the Group but is consolidated in the Group numbers.

111

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

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 £10.8bn, 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 13.

A 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.

112 LANDSEC ANNUAL REPORT 2026

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.

S 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. Whilst the valuations

were appropriate as at 31 March 2026, changes to macroeconomic conditions could affect future valuations.

113LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

13 INVESTMENT PROPERTIES

	2026	2025
	£m	£m
Net book value at the beginning of the year	10,034	9,330
Acquisitions of investment properties 1	75	642
Capital expenditure	443	473
Capitalised interest	41	27
Net movement in head leases capitalised 2	(2)	86
Disposals 3,4	(669)	(479)
Net surplus on revaluation of investment properties 4	96	91
Transfer to property, plant and equipment (note 18)	–	(26)
Transfer to assets held for sale	–	(110)
Net book value at the end of the year	10,018	10,034

1. Adjusted downward by £17m of transaction and contract related provisions utilised in the year (see note 33).

2. See note 21 for details of the amounts payable under head leases and note 4 for details of the rents payable in the income statement.

3. Includes impact of disposals of finance leases.

4. Whilst the Group’s accounting policy is to recognise the profit/(loss) on disposal of investment properties with reference to the asset’s carrying amount at the beginning

of the accounting period, £22m of the balance pertains to revaluation movements arising from rental income received from 1 April 2025 to the date of disposal on the

Queen Anne’s Mansions office block.

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.

				2026				2025
			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	10,154	661	(20)	10,795	10,125	636	(33)	10,728
Less: properties treated as finance leases	(13)	–	–	(13)	(12)	–	–	(12)
Plus: head leases capitalised	135	1	–	136	158	1	–	159
Less: tenant lease incentives	(258)	(26)	–	(284)	(237)	(29)	–	(266)
Net book value	10,018	636	(20)	10,634	10,034	608	(33)	10,609
Net surplus on revaluation of investment properties	96	27	(1)	122	91	13	3	107

1. Refer to note 15 for a breakdown of this amount by our principal joint arrangements.

The net book value of leasehold properties where head leases have been capitalised is £1,438m (2025: £1,761m).

Investment properties include capitalised interest of £358m (2025: £317m). The average rate of interest capitalisation for the year is 4.7%

(2025: 4.8%). The gross historical cost of investment properties is £8,941m (2025: £9,136m).

114 LANDSEC ANNUAL REPORT 2026

VALUATION PROCESS

The fair value of investment properties at 31 March 2026 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.

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 25(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 2026:

										2026
	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
Office-led
West End offices	2,552	22	101	162	4.5%	5.6%	6.6%	–	27	125
City and Southwark offices	1,481	83	93	111	6.0%	6.2%	8.0%	33	52	245
Manchester offices	264	23	33	39	8.0%	8.6%	10.1%	–	11	89
Retail and other	992	17	72	110	4.5%	5.8%	18.0%	–	6	99
Total Office-led	5,289	17	90	162	4.5%	5.8%	18.0%	–	29	245
Retail-led
Shopping centres	2,135	6	19	39	6.4%	7.7%	9.6%	–	4	35
Outlets	662	50	55	57	5.5%	6.8%	8.0%	–	15	17
Total Retail-led	2,797	6	27	57	5.5%	7.5%	9.6%	–	7	35
Residential-led
Developments	205	5	14	61	5.3%	8.3%	13.9%	–	4	74
Total Residential-led	205	5	14	61	5.3%	8.3%	13.9%	–	4	74
Other assets
Retail and leisure parks	511	10	14	20	6.0%	8.2%	9.6%	–	3	9
Total Other assets	511	10	14	20	6.0%	8.2%	9.6%	–	3	9
Developments: income capitalisation	1,023	52	105	155	5.7%	5.9%	7.4%	–	–	–
method
Developments: residual method	329	83	83	120	5.3%	4.0%	5.5%	–	–	–
Development programme	1,353	52	100	155	5.3%	5.4%	7.4%	–	–	–
Market value at 31 March 2026 – Group	10,154

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.

115

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

The sensitivities below illustrate the impact of changes in key unobservable inputs (in isolation) on the fair value of the Group’s properties:

SENSITIVITIES

							2026
			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 Office-led	5,289	222	(220)	268	(248)	16	(16)
Total Retail-led	2,797	114	(110)	100	(95)	3	(3)
Total Residential-led	205	7	(6)	7	(7)	–	–
Total Other assets	511	15	(14)	16	(15)	–	–
Developments: income capitalisation method	1,023	55	(46)	60	(48)	7	(3)
Developments: residual method	329	62	(62)	67	(61)	58	(48)
Market value at 31 March 2026 – Group	10,154	475	(458)	518	(474)	84	(70)

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 2	High
Office-led
West End offices	2,488	21	85	102	4.4%	5.6%	6.1%	–	50	134
City and Southwark offices	1,445	57	87	107	5.9%	6.2%	7.5%	–	88	226
Manchester offices	294	17	37	73	5.8%	8.0%	10.0%	1	9	60
Retail and other	1,299	15	73	140	3.5%	4.0%	17.5%	–	68	237
Total Office-led	5,526	15	83	164	3.5%	5.4%	17.5%	–	51	237
Retail-led
Shopping centres	1,993	8	16	39	6.8%	6.8%	9.8%	2	7	36
Outlets	626	49	53	56	6.5%	6.9%	8.1%	12	20	24
Total Retail-led	2,619	8	25	56	6.5%	6.8%	9.8%	2	10	36
Residential-led
Developments	203	5	25	61	5.3%	5.9%	13.9%	–	31	74
Total Residential-led	203	5	25	61	5.3%	5.9%	13.9%	–	31	74
Other assets
Retail and leisure parks	626	6	15	24	6.0%	7.9%	12.2%	–	2	26
Total Other assets	626	6	15	24	6.0%	7.9%	12.2%	–	2	26
Developments: income capitalisation	96	155	155	155	6.0%	6.0%	6.0%	444	444	444
method
Developments: residual method	1,055	60	78	164	5.2%	4.3%	6.0%	312	548	1,411
Development programme	1,151	60	84	164	5.2%	4.4%	6.0%	312	496	1,411
Market value at 31 March 2025 – Group	10,125

1. Restated for changes in the Group’s operating segments as outlined in note 4.

2. 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.

13 INVESTMENT PROPERTIES CONTINUED

116 LANDSEC ANNUAL REPORT 2026

The sensitivities 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 Office-led	5,526	329	(330)	408	(379)	90	(87)
Total Retail-led	2,619	109	(108)	92	(88)	5	(5)
Total Residential-led	203	7	(6)	8	(6)	–	–
Total Other assets	626	20	(19)	20	(20)	1	(1)
Developments: income capitalisation method	96	8	(10)	5	(7)	2	(2)
Developments: residual method	1,055	112	(112)	123	(112)	82	(77)
Market value at 31 March 2025 – Group	10,125	465	(463)	529	(493)	97	(95)

1. Restated for changes in the Group’s operating segments as outlined in note 4.

14 TRADING PROPERTIES

	Development
	land and
	infrastructure	Residential	Total
	£m	£m	£m
At 1 April 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
Capital expenditure	4	3	7
Capitalised interest	–	1	1
Disposals	–	(30)	(30)
Impairment provision	(3)	–	(3)
At 31 March 2026	54	2	56

The cumulative impairment provision at 31 March 2026 in respect of Development land and infrastructure was £34m (2025: £31m); and in respect

of Residential was £nil (2025: £nil).

117LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

15 JOINT ARRANGEMENTS

A 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 2026
Nova, Victoria 4	50%	Office-led	31 March	Suntec Real Estate Investment Trust
Southside Limited Partnership	50%	Retail-led	31 March	Invesco Real Estate European Fund
Westgate Oxford Alliance Limited Partnership	50%	Retail-led	31 March	The Crown Estate Commissioners
Harvest 5,7	50%	Other assets	31 March	J Sainsbury plc
The Ebbsfleet Limited Partnership 7	50%	Other assets	31 March	Ebbsfleet Property Limited
West India Quay Unit Trust 7	50%	Other assets	31 March	Schroder UK Real Estate Fund
Mayfield 6,7	50%	Residential-led	31 March	LCR Limited, Manchester City Council,
				Transport for Greater Manchester
Curzon Park Limited 7	50%	Other assets	31 March	Derwent Developments (Curzon)
				Limited
Landmark Court Partnership Limited 7	51%	Office-led	31 March	TTL Landmark Court Properties Limited
Opportunities for Sittingbourne Limited 7	50%	Other assets	31 March	Swale Borough Council
Cathedral (Movement, Greenwich) LLP 7	52%	Other assets	31 March	Mr Richard Upton
Circus Street Developments Limited 7	50%	Other assets	31 March	High Wire Brighton Limited

Joint operation	Ownership interest	Business segment	Year end date 3	Joint operation partners
Held at 31 March 2026
Bluewater, Kent	64%	Retail-led	31 March	M&G Real Estate,
				Royal London Asset Management,
				Schroders Capital Real Estate

1. Refer to Additional information pages 164-167 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.

118

LANDSEC ANNUAL REPORT 2026

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; and

•

Curzon Park Limited, Landmark Court Partnership Limited, Opportunities for Sittingbourne Limited and Circus Street Developments Limited,

which were previously or 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 2026
			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	15	39	3	106	53
Gross rental income (after rents payable)	34	12	28	2	76	38
Net rental income	31	9	23	2	65	33
EPRA earnings before interest	31	9	23	2	65	33
Finance (expense)/revenue	(13)	(6)	–	2	(17)	(8)
Net finance (expense)/revenue	(13)	(6)	–	2	(17)	(8)
EPRA earnings	18	3	23	4	48	25
Capital and other items
Net surplus on revaluation of investment properties	38	3	5	8	54	27
Loss on disposal of investment properties	–	–	–	(1)	(1)	(1)
Other income	–	–	–	2	2	1
Profit before tax	56	6	28	13	103	52
Post-tax profit	56	6	28	13	103	52
Total comprehensive income	56	6	28	13	103	52
Group share of profit before tax	28	3	14	7	52
Group share of post-tax profit	28	3	14	7	52
Group share of total comprehensive income	28	3	14	7	52

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.

119

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

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.

15 JOINT ARRANGEMENTS CONTINUED

120 LANDSEC ANNUAL REPORT 2026

JOINT VENTURES

						Year ended 31 March 2026
			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	790	141	236	106	1,273	636
Non-current assets	790	141	236	106	1,273	636
Cash and cash equivalents	20	5	12	14	51	25
Other current assets	49	5	13	42	109	55
Current assets	69	10	25	56	160	80
Total assets	859	151	261	162	1,433	716
Trade and other payables and provisions	(25)	(5)	(14)	(11)	(55)	(27)
Current liabilities	(25)	(5)	(14)	(11)	(55)	(27)
Non-current liabilities	(44)	(146)	–	(1)	(191)	(96)
Non-current liabilities	(44)	(146)	–	(1)	(191)	(96)
Total liabilities	(69)	(151)	(14)	(12)	(246)	(123)
Net assets	790	–	247	150	1,187	593
Comprised of:
Net assets	790	–	247	150	1,187	593
Accumulated losses recognised as net liabilities 2	–	–	–	–	–	–
Market value of investment properties 1	834	142	242	104	1,322	661
Net cash 3	20	5	12	14	51	25

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 32) where there is an obligation to provide for these losses.

3. Excludes funding provided by the Group and its joint venture partners.

121

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

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
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 32) where there is an obligation to provide for these losses.

3. Excludes funding provided by the Group and its joint venture partners.

15 JOINT ARRANGEMENTS CONTINUED

122 LANDSEC ANNUAL REPORT 2026

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 2024	344	(5)	121	61	521
Total comprehensive 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
Total comprehensive income	28	3	14	7	52
Cash and other distributions	–	–	(11)	–	(11)
Other non-cash movements	2	–	–	2	4
At 31 March 2026	395	–	123	75	593
Comprised of:
At 31 March 2025
Non-current assets	365	–	120	66	551
Non-current liabilities 1	–	(3)	–	–	(3)
At 31 March 2026
Non-current assets	395	–	123	75	593
Non-current liabilities 1	–	–	–	–	–

1. The Group’s share of accumulated losses of a joint venture interest are recognised as net liabilities (see note 32) where there is an obligation to provide for these losses.

16 CAPITAL COMMITMENTS

	2026	2025
	£m	£m
Contracted capital commitments at the end of the year in respect of:
Investment properties	178	276
Trading properties	–	6
Joint ventures (our share)	–	1
Total capital commitments	178	283

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.

123LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

17 NET INVESTMENT IN FINANCE LEASES

A 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.

	2026	2025
	£m	£m
Non-current
Finance leases – gross receivables	35	35
Unguaranteed residual value	2	2
Unearned finance income	(17)	(18)
	20	19
Current 1
Finance leases – gross receivables	2	2
Unearned finance income	(1)	(1)
	1	1
Net investment in finance leases	21	20
Gross receivables from finance leases due:
No later than one year	2	1
One to two years	1	1
Two to three years	2	2
Three to four years	2	2
Four to five years	2	2
More than five years	28	29
	37	37
Unguaranteed residual value	2	2
Unearned finance income	(18)	(19)
Net investment in finance leases	21	20

1. Included in Other Receivables in note 26.

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.

124 LANDSEC ANNUAL REPORT 2026

18 PROPERTY, PLANT AND EQUIPMENT

A 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 in the prior year, 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 13 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.

	Owner-	Furniture
	occupied	and
	property	fittings	Total
	£m	£m	£m
At 1 April 2024	–	7	7
Transfer from investment property (note 13)	26	–	26
Revaluation	12	–	12
Depreciation	–	(3)	(3)
At 31 March 2025	38	4	42
Revaluation	2	–	2
Depreciation	–	(2)	(2)
At 31 March 2026	40	2	42

125LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

19 INTANGIBLE ASSETS

A 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 2024	–	1	2	3
Additions	22	1	–	23
Amortisation	–	(1)	–	(1)
Impairment	(22)	–	–	(22)
At 31 March 2025	–	1	2	3
Additions	–	–	–	–
Amortisation	–	–	–	–
Impairment	–	–	–	–
At 31 March 2026	–	1	2	3

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 2026, the other intangible asset has been impaired by £nil (2025: £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 8.3%

with cash flows projected over a period of 8 years and a growth rate applied of 5.5%.

126 LANDSEC ANNUAL REPORT 2026

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 20 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.

20 CAPITAL STRUCTURE

			Adjustment	2026			Adjustment	2025
			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 property assets 1	10,195	661	(20)	10,836	10,277	636	(33)	10,880
Carrying value of trading properties	56	–	–	56	81	–	–	81
Total property portfolio (a)	10,251	661	(20)	10,892	10,358	636	(33)	10,961
Net debt
Borrowings	4,360	–	–	4,360	4,396	–	(15)	4,381
Monies held in restricted accounts and deposits	(11)	–	–	(11)	(20)	–	1	(19)
Cash and cash equivalents	(106)	(25)	1	(130)	(39)	(24)	–	(63)
Fair value of interest-rate swaps	(5)	–	–	(5)	(1)	–	–	(1)
Fair value of foreign exchange swaps and forwards	(4)	–	–	(4)	5	–	–	5
Net debt (b)	4,234	(25)	1	4,210	4,341	(24)	(14)	4,303
Add: Fair value of interest-rate swaps	5	–	–	5	1	–	–	1
Adjusted net debt (c)	4,239	(25)	1	4,215	4,342	(24)	(14)	4,304
Adjusted total equity
Total equity (d)	6,538	–	(1)	6,537	6,532	–	(18)	6,514
Fair value of interest-rate swaps	(5)	–	–	(5)	(1)	–	–	(1)
Adjusted total equity (e)	6,533	–	(1)	6,532	6,531	–	(18)	6,513
Gearing (b/d)	64.8%			64.4%	66.5%			66.1%
Adjusted gearing (c/e)	64.9%			64.5%	66.5%			66.1%
Group LTV (c/a)	41.4%			38.7%	41.9%			39.3%
EPRA LTV 2				40.4%				41.0%
Security Group LTV	41.6%				41.9%
Weighted average cost of debt	3.6%			3.6%	3.4%			3.4%

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.

127

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

21 BORROWINGS

A 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.

					Nominal/		2026	Nominal/		2025
				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	228	228	228	270	270	270
Euro		Unsecured	Floating	Various 1	270	270	270	310	310	310
US Dollar		Unsecured	Floating	Various 1	246	246	246	170	170	170
Total current borrowings					744	744	744	750	750	750
Amounts payable under head leases					2	2	2	2	2	2
Total current borrowings including					746	746	746	752	752	752
amounts payable under head leases
Non-current borrowings
Medium term notes (MTN)
A16 2.375% MTN due 2029		Secured	Fixed	2.5	350	340	350	350	333	349
A6	5.376% MTN due 2029	Secured	Fixed	5.4	65	65	65	65	65	65
A13 2.399% MTN due 2031		Secured	Fixed	2.4	300	278	300	300	274	300
A7	5.396% MTN due 2032	Secured	Fixed	5.4	77	77	77	77	78	77
A18 4.750% MTN due 2033		Secured	Fixed	4.9	300	293	297	300	294	295
A17 4.875% MTN due 2034		Secured	Fixed	5.0	400	391	395	400	393	396
A11 5.125% MTN due 2036		Secured	Fixed	5.1	50	48	50	50	47	50
A19 4.625% MTN due 2036		Secured	Fixed	4.9	350	328	346	350	330	346
A14 2.625% MTN due 2039		Secured	Fixed	2.6	500	367	495	500	371	495
A15 2.750% MTN due 2059		Secured	Fixed	2.7	500	255	495	500	275	495
					2,892	2,442	2,870	2,892	2,460	2,868
Syndicated and bilateral bank debt		Secured	Floating	SONIA + margin	746	746	746	778	778	778
Total non-current borrowings					3,638	3,188	3,616	3,670	3,238	3,646
Amounts payable under head leases		Unsecured	Fixed	5.2	133	202	133	156	230	156
Total non-current borrowings					3,771	3,390	3,749	3,826	3,468	3,802
including amounts payable under head leases
Total borrowing including amounts					4,517	4,136	4,495	4,578	4,220	4,554
payable under head leases
Total borrowings excluding amounts					4,382	3,932	4,360	4,420	3,988	4,396
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 and tracks SONIA swap rates.

128

LANDSEC ANNUAL REPORT 2026

RECONCILIATION OF MOVEMENTS IN LIABILITIES ARISING FROM FINANCING ACTIVITIES

						2026
				Non-cash changes
	At the		Foreign	Other		At the end
	beginning		exchange	changes in	Other	of the
	of the year	Cash flows	movements	fair values	changes	year
	£m	£m	£m	£m	£m	£m
Borrowings	4,554	(38)	2	–	(23)	4,495
Derivative financial instruments	4	(16)	(2)	11	(6)	(9)
Redemption liability	–	–	–	–	18	18
	4,558	(54)	–	11	(11)	4,504

						2025
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

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 £10.4bn at 31 March 2026

(2025: £10.0bn). The secured debt structure has a tiered operating covenant regime which gives the Group substantial flexibility when the

loan-to-value 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.

SYNDICATED AND BILATERAL BANK DEBT

			Authorised		Drawn		Undrawn
	Maturity as at	2026	2025	2026	2025	2026	2025
	31 March 2026	£m	£m	£m	£m	£m	£m
Syndicated debt	2027-30	2,550	2,490	746	778	1,804	1,712
Bilateral debt	2026	100	100	–	–	100	100
		2,650	2,590	746	778	1,904	1,812

On 2 May 2025, the Group put in place a new £300m bank facility with a final maturity of November 2027. On 13 October 2025, the Group

exercised extension options on the existing syndicated facilities extending maturity dates to 2028 and 2030 on the same terms. During the year

ended 31 March 2026, the amounts drawn under the Group’s facilities decreased by £32m. At 31 March 2026, the Group’s committed facilities

totalled £2,650m (2025: £2,590m). All the committed syndicated and bilateral facilities are secured on the assets of the Security Group.

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. The available financial headroom, being the total amount of cash and available undrawn

facilities, net of commercial paper, at 31 March 2026 was £1,266m (2025: £1,101m).

129LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

22 MONIES HELD IN RESTRICTED ACCOUNTS AND DEPOSITS

A 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
	2026	2025	2026	2025
	£m	£m	£m	£m
Short-term deposits	5	15	–	–
Cash at bank and in hand	6	5	–	–
	11	20	–	–

23 CASH AND CASH EQUIVALENTS

A 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
	2026	2025	2026	2025
	£m	£m	£m	£m
Cash at bank and in hand	68	30	–	1
Short-term deposits	38	9	–	–
	106	39	–	1

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.

			2026			2025
	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	170	(64)	106	140	(101)	39
	170	(64)	106	140	(101)	39

130 LANDSEC ANNUAL REPORT 2026

24 DERIVATIVE FINANCIAL INSTRUMENTS

A 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 derivative financial instruments for trading purposes.

All derivative financial instruments 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 derivative financial instruments are recognised immediately in the income statement, within net finance expense.

CARRYING VALUE OF DERIVATIVE FINANCIAL INSTRUMENTS

	2026	2025
	£m	£m
Current assets	6	2
Non-current assets	25	2
Current liabilities	–	(6)
Non-current liabilities	(22)	(2)
	9	(4)

25 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 40-46). 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 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
	2026	2025	2026	2025
	£m	£m	£m	£m
Financial assets at amortised cost	494	551	–	–
Cash and cash equivalents	106	39	–	1
Financial liabilities at amortised cost	(4,777)	(5,004)	(1,657)	(1,750)
Financial instruments at fair value through profit or loss	19	4	–	–
Redemption liability	(18)	–	–	–
	(4,176)	(4,410)	(1,657)	(1,749)

131LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

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 is 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 debt and facility maturity profile with expected maturities on its MTNs between 2027 and 2057 and diversified

shorter-term maturities in commercial paper and committed bank facilities, that are designed to ensure that the Group has sufficient available

funds for its operations, committed capital expenditure programme and refinancing of upcoming maturing debt.

Management monitors the Group’s available financial headroom as follows:

	2026	2025
	£m	£m
Cash and cash equivalents	106	39
Undrawn facilities	1,904	1,812
Commercial paper	(744)	(750)
Cash and available undrawn facilities	1,266	1,101
As a proportion of drawn debt 1	28.9%	24.9%

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.

25 FINANCIAL RISK MANAGEMENT CONTINUED

132 LANDSEC ANNUAL REPORT 2026

As at 31 March 2026, the LTV for the Security Group was 41.6% (2025: 41.9%), 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.

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).

					2026
	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)	1,229	485	1,406	2,342	5,462
Derivative financial instruments	–	–	22	–	22
Lease liabilities	8	8	24	957	997
Trade payables	37	–	–	–	37
Capital accruals	70	–	–	–	70
Accruals	91	–	–	–	91
Other payables	44	9	31	–	84
Redemption liability	18	–	–	–	18
	1,497	502	1,483	3,299	6,781

					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

(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 financial instruments 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 2026, the net notional position of the Group’s interest-rate swaps (including the Group’s share of joint ventures and non-wholly

owned subsidiaries) was £950m of pay-fixed and receive-floating interest-rate swaps (2025: £1,145m) and the Group had a net notional position

of £100m forward starting pay-fixed and receive-floating interest-rate swaps (2025: £500m). The Group’s gross debt position (including the

Group’s share of joint venture and non-wholly owned subsidiaries) at 31 March 2026 was 88.9% fixed (2025: 91.3%), a 1% increase/(decrease)

in interest rates would increase/(decrease) the annual net finance expense in the income statement and reduce/(increase) equity by £7m

(2025: £8m). 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.

133LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

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 2026, the Group had issued €311m (2025: €370m) and $324m (2025: $220m) of commercial paper, fully hedged through foreign

exchange swaps. A 10% weakening or strengthening of Sterling would therefore have £nil (2025: £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 derivative financial instruments to hedge some or all of the risk. At 31 March 2026, the Group had no

foreign currency exposures (other than those linked to borrowings) being managed using derivative financial instruments (2025: £nil exposure).

A 10% weakening or strengthening of Sterling would therefore have no impact on the loss before tax and or total equity (2025: £nil impact).

FINANCIAL MATURITY ANALYSIS

The interest rate profile of the Group’s borrowings is set out below (based on notional values):

			2026			2025
	Fixed	Floating		Fixed	Floating
	rate	rate	Total	rate	rate	Total
	£m	£m	£m	£m	£m	£m
Sterling	3,027	974	4,001	3,050	1,048	4,098
Euro	–	270	270	–	310	310
US Dollar	–	246	246	–	170	170
	3,027	1,490	4,517	3,050	1,528	4,578

The expected maturity profiles of the Group’s borrowings are as follows (based on net notional values):

			2026			2025
	Fixed	Floating		Fixed	Floating
	rate	rate	Total	rate	rate	Total
	£m	£m	£m	£m	£m	£m
One year or less, or on demand	351	744	1,095	–	750	750
More than one year but not more than two years	66	300	366	1	240	241
More than two years but not more than five years	679	446	1,125	718	538	1,256
More than five years	1,931	–	1,931	2,331	–	2,331
Borrowings	3,027	1,490	4,517	3,050	1,528	4,578
Effect of hedging	950	(950)	–	1,145	(1,145)	–
Borrowings net of interest-rate swaps	3,977	540	4,517	4,195	383	4,578

The expected maturity profiles of the Group’s derivative financial instruments are as follows (based on net notional values):

		2026		2025
	Foreign		Foreign
	exchange	Interest-	exchange	Interest-
	swaps	rate swaps	swaps	rate swaps
	£m	£m	£m	£m
One year or less, on demand	513	400	486	(45)
More than one year but not more than two years	–	100	–	740
More than two years but not more than five years	–	450	–	150
More than five years	–	–	–	300
	513	1,050	486	1,145

25 FINANCIAL RISK MANAGEMENT CONTINUED

134 LANDSEC ANNUAL REPORT 2026

VALUATION HIERARCHY

Derivative financial instruments, financial assets at fair value through profit and loss (other investments) and the redemption liability are the

only financial instruments which are carried at fair value. For financial instruments other than borrowings disclosed in note 21, 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:

				2026				2025
	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
	£m	£m	£m	£m	£m	£m	£m	£m
Assets	–	31	10	41	–	4	8	12
Liabilities	–	(22)	(18)	(40)	–	(8)	–	(8)

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 3.6% (2025: 3.4%), is £204m (2025: £232m).

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 8.0% (2025: 8.8%), is £13m (2025: £12m).

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 redemption liability is the present value of the amount the Group would be required to pay to settle the liability (an exit

price). Moreover, both the fair values of the other investments and the redemption liability are calculated by reference to the net assets of their

respective underlying entities. The valuations are not based on observable market data and therefore are considered to fall within Level 3.

SECTION 5 – WORKING CAPITAL

This section focuses on our working capital balances, including trade and other receivables and trade and other payables.

26 TRADE AND OTHER RECEIVABLES

A 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.

135LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

S 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 25 for further details of the Group’s assessment of the credit risk associated with

trade receivables.

	2026	2025
	£m	£m
Net trade receivables	74	70
Tenant lease incentives	258	242
Prepayments	66	69
Accrued income	18	21
Amounts due from joint ventures	13	12
Deferred consideration	10	2
Other receivables	52	51
Total current trade and other receivables	491	467
Non-current amounts due from joint ventures	98	116
Non-current prepayments	31	24
Non-current deferred consideration	19	78
Other non-current receivables	–	11
Total trade and other receivables	639	696

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% (2025: 4% to 5%).

AGEING OF TRADE RECEIVABLES

				Up to
		Up to	Up to	12	More than
	Not	30 days	6 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 2026
Not impaired	–	27	23	13	11	74
Impaired	–	–	2	3	23	28
Gross trade receivables	–	27	25	16	34	102
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

None of the Group’s other receivables are past due and therefore no ageing has been shown (2025: £nil).

26 TRADE AND OTHER RECEIVABLES CONTINUED

136 LANDSEC ANNUAL REPORT 2026

27 TRADE AND OTHER PAYABLES

		Group		Company
	2026	2025	2026	2025
	£m	£m	£m	£m
Trade payables	37	30	–	–
Capital accruals	70	70	–	–
Other payables	41	8	–	–
Accruals	91	155	–	–
Deferred income	121	129	–	–
Amounts owed to joint ventures	3	14	–	–
Loans from Group undertakings	–	–	1,658	1,750
Total current trade and other payables	363	406	1,658	1,750
Non-current other payables	40	44	–	–
Total trade and other payables	403	450	1,658	1,750

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 4.21% per annum (2025: 4.95%).

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.

28 INVESTMENTS IN SUBSIDIARY UNDERTAKINGS

A 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.

	2026	2025
	£m	£m
At the beginning of the year	5,363	5,659
Capital contributions relating to share-based payments (note 35)	9	6
Impairment charge	(14)	(302)
At 31 March	5,358	5,363

A full list of subsidiary undertakings at 31 March 2026 is included on pages 164-167. 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 2026, there has been an impairment charge on the Company’s investment in its subsidiaries of £14m (2025: charge

of £302m) as a result of a decrease in net assets held in those subsidiary companies. The recoverable amount of the investments has been

based on the fair value of each of the subsidiaries at 31 March 2026 as determined by their individual net asset values at that date, totalling

£5,358m (2025: £5,363m).

137LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

29 OTHER NON-CURRENT ASSETS

	2026	2025
	£m	£m
Net pension surplus (note 34)	10	11
Derivative financial instruments (note 24)	25	2
Other investments	10	9
Total other non-current assets	45	22

30 OTHER CURRENT ASSETS

	2026	2025
	£m	£m
Derivative financial instruments (note 24)	6	2
Current tax assets	1	2
Total other current assets	7	4

31 OTHER CURRENT LIABILITIES

	2026	2025
	£m	£m
Derivative financial instruments (note 24)	–	6
Redemption liability 1	18	–
Total other current liabilities	18	6

1. On 8 September 2025, the Group granted a put option to the non-controlling interest in Liverpool ONE that has been recognised as a redemption liability at 31 March 2026.

32 OTHER NON-CURRENT LIABILITIES

	2026	2025
	£m	£m
Net liabilities incurred on behalf of joint ventures 1 (note 15)	–	3
Derivative financial instruments (note 24)	22	2
Total other non-current liabilities	22	5

1. The Group’s share of accumulated losses of a joint venture interest are recognised as net liabilities (see note 15) where there is an obligation to provide for these losses.

138

LANDSEC ANNUAL REPORT 2026

33 PROVISIONS

A 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.

			2026
	Building and	Transaction
	fire safety	and contract
	remediation	related	Total
	£m	£m	£m
At 1 April 2025	23	51	74
Charge for the year	10	4	14
Utilised during the year	(1)	(20)	(21)
Reversed during the year	(3)	–	(3)
At 31 March 2026	29	35	64
Current	29	12	41
Non-current	–	23	23
At 31 March 2026	29	35	64

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. £12m of the provision recorded at 31 March 2026 relates to properties no longer owned by the Group. Moreover, a receivable of £11m

(2025: £5m) has been recorded in note 26 where the Group is virtually certain that the provision recorded will be reimbursed by the original

developer of the property or by other responsible parties 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.

139LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

34 NET PENSION SURPLUS

A 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 £2m (2025: £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 2024 by the independent actuaries, Hymans Robertson

LLP. This valuation was updated to 31 March 2026 using, where required, assumptions prescribed by IAS 19 Employee Benefits.

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 2027 (2026: £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

	2026	2025
	£m	£m
Analysis of the amount charged to operating profit
Current service costs	–	–
Past service costs	2	–
Charge to operating profit	2	–
Analysis of amount credited to net finance expense
Interest income on plan assets	(8)	(8)
Interest expense on defined benefit scheme liabilities	7	8
Impact on net finance expense	(1)	–

ANALYSIS OF THE AMOUNTS RECOGNISED IN OTHER COMPREHENSIVE INCOME

	2026	2025
	£m	£m
Analysis of gains and losses
Net remeasurement gains on scheme assets	1	18
Net remeasurement losses on scheme liabilities	(1)	(18)
Net remeasurement amount	–	–
Cumulative net remeasurement loss recognised in other comprehensive income	(41)	(41)

140 LANDSEC ANNUAL REPORT 2026

The net surplus recognised in respect of the defined benefit scheme can be analysed as follows:

		2026		2025
	%	£m	%	£m
Insurance contracts	90	129	90	132
Cash and cash equivalents	10	15	10	15
Fair value of scheme assets	100	144	100	147
Fair value of scheme liabilities		(131)		(132)
Net pension surplus as per IAS 19		13		15
Expected authorised payments charge		(3)		(4)
Net pension surplus		10		11

In the year ended 31 March 2026, £10m (2025: £9m) 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 (2025: £nil).

In the most recent triennial valuation, the defined benefit scheme liabilities were split nil% (2025: nil%) in respect of active scheme

participants, 26% (2025: 31%) in respect of deferred scheme participants, and 74% (2025: 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 2026 is 10.1 years (2025: 10.7 years).

The assumptions agreed with the Trustees of the Scheme for the triennial valuation at 30 June 2024 have been restated to the assumptions

described by IAS 19 Employee Benefits. The major assumptions used in the valuation were (in nominal terms):

	2026	2025
	%	%
Rate of increase in pensionable salaries	n/a	n/a
Rate of increase in pensions with no cap	3.60	3.40
Rate of increase in pensions with 5% cap	3.05	3.30
Discount rate	6.05	5.70
Inflation – Retail Price Index	3.60	3.40
– Consumer Price Index	3.05	2.75

The mortality assumptions used in this valuation were:

	2026	2025
	Years	Years
Life expectancy at age 60 for current pensioners – Men	26.2	25.9
– Women	28.5	28.5
Life expectancy at age 60 for future pensioners (current age 40) – Men	27.1	27.3
– Women	30.6	30.9

141LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

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 2026 or

31 March 2025.

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. Whilst there has been

proposed legislation put forward to address this, it was not substantively enacted at the reporting date. 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.

35 SHARE-BASED PAYMENTS

A 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.

	2026	2026	2025	2025
	Charge	Number	Charge	Number
	£m	(millions)	£m	(millions)
Long-Term Incentive Plan	4	6	1	4
Deferred Share Bonus Plan	1	–	1	–
Executive Share Option Scheme	–	1	–	1
Sharesave Plan	–	1	–	1
Restricted Share Plan	4	1	4	2
	9	9	6	8

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, Executive Leadership Team 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).

34 NET PENSION SURPLUS CONTINUED

142 LANDSEC ANNUAL REPORT 2026

The weighted average share price at the date of vesting was 598p (2025: 622p). The estimated fair value of awards granted during the year

under the scheme was £16m (2025: £8m).

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 602p (2025: 635p). The estimated fair value of awards granted during the year under the scheme was £1m (2025: £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 (2025: none). The estimated fair value of awards granted during the year under the scheme was £nil (2025: £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 603p (2025: 620p). The estimated fair value of awards

granted during the year under the scheme was £1m (2025: £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 629p (2025: 631p). The estimated fair value of awards granted during the year under the scheme was £3m (2025: £3m).

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 601p (2025: 615p). The estimated fair value of awards granted during the

year under the scheme was £1m (2025: £1m).

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
	2026	2025	2026	2025
	Number	Number	Number	Number	2026	2025
	(millions)	(millions)	(millions)	(millions)	Pence	Pence
At the beginning of the year	5	4	3	3	691	759
Granted	3	2	1	1	539	521
Exercised	(1)	–	(1)	–	659	522
Lapsed	(1)	(1)	–	(1)	810	922
At 31 March	6	5	3	3	682	706
Exercisable at the end of the year	–	–	1	1	747	794
	Years	Years	Years	Years
Weighted average remaining contractual life	2	1	1	1

1. Executive plans are granted at nil consideration.

143

LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

The number of share awards outstanding for the Group by range of exercise prices is shown below:

				Outstanding at 31 March 2026			Outstanding at 31 March 2025
				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		–	6	2	–	5	2
400 – 599		530	1	1	544	1	1
600 – 799		652	1	–	670	2	–
800 – 999		949	–	2	948	–	3
1,000 –	1,199	1,017	–	1	1,017	–	2
1,200 –	1,399	–	–	–	1,328	–	–

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	2026	2025	2026	2025	2026	2025	2026	2025
Share price at grant date	626p	625p	632p	637p	629p	630p	574p	628p
Exercise price	n/a	n/a	n/a	n/a	n/a	n/a	504p	530p
Expected volatility	23% to	27%	27%	29%	27%	27%	27%	29%
	27%
Expected life	3 to	3 years	1 to	1 year	3 years	3 years	3 to	3 to
	5 years		2 years				5 years	5 years
Risk-free rate	3.76% to	4.23%	3.72% to	4.63%	3.56%	4.00%	3.79% to	4.09% to
	3.95%		3.82%				3.94%	4.17%
Expected dividend yield	Nil	Nil	Nil	Nil	Nil	6.32%	7.04%	6.34%

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 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	2026	2025	2026	2025	2026	2025	2026	2025	2026	2025
Long-Term Incentive Plan	622p	625p	n/a	n/a	26%	29%	25%	27%	68%	66%

35 SHARE-BASED PAYMENTS CONTINUED

144 LANDSEC ANNUAL REPORT 2026

36 ORDINARY SHARE CAPITAL

A 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
	2026	2025
	£m	£m
Ordinary shares of 10 2 / 3 p each	80	80

		Number of shares
	2026	2025
At the beginning of the year	751,732,064	751,676,657
Issued on the exercise of options	99,233	55,407
At 31 March	751,831,297	751,732,064

The number of options over ordinary shares from Executive plans that were outstanding at 31 March 2026 was 7,509,019 (2025: 6,622,885). If all

the options were exercisable at that date then 7,509,019 (2025: 6,622,885) shares would be required to be transferred from the Employee Benefit

Trust (EBT). The number of options over ordinary shares from Other plans that were outstanding at 31 March 2026 was 937,854 (2025: 1,119,835).

If all the options were exercisable at that date then 502,543 new ordinary shares (2025: 539,248) would be issued and 435,311 shares would be

required to be transferred from the EBT (2025: 580,587).

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 2026 (2025:

none) to satisfy future awards under employee share plans. At 31 March 2026, the Group held 6,789,236 ordinary shares (2025: 6,789,236) with

a market value of £38m (2025: £37m) 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.

37 OWN SHARES

A 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
	2026	2025
	£m	£m
At the beginning of the year	14	23
Acquisition of ordinary shares	27	–
Transfer of shares to employees on exercise of share options	(15)	(9)
At 31 March	26	14

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 35).

The number of shares held by the EBT at 31 March 2026 was 4,340,245 (2025: 2,061,915). The market value of these shares at 31 March 2026 was

£24m (2025: £11m).

145LANDSEC ANNUAL REPORT 2026

FINANCIAL STATEMENTS

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2026 CONTINUED

38 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.

39 RELATED PARTY TRANSACTIONS

SUBSIDIARIES

During the year, the Company entered into transactions, in the normal course of business, with related parties as follows:

	2026	2025
	£m	£m
Transactions with subsidiary undertakings 1 :
Recharge of costs	(317)	(306)
Dividends received	500	900
Interest paid	(79)	(108)

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 15, 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 2026		Year ended and as at 31 March 2025
		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	9	–	27	–	10	1	45	–
Southside Limited Partnership	4	–	73	–	4	(1)	74	–
Westgate Oxford Alliance Limited Partnership	2	(11)	7	–	1	(13)	4	–
Other	–	2	3	(3)	1	4	5	(14)
	15	(9)	110	(3)	16	(9)	128	(14)

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 68-79.

	2026	2025
	£m	£m
Short-term employee benefits 1	5	5
Share-based payments	3	3
	8	8

1. Short-term employee benefits include pension allowances.

146

LANDSEC ANNUAL REPORT 2026

40 OPERATING LEASE ARRANGEMENTS

A 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:

	2026	2025
	£m	£m
Not later than one year	417	484
Later than one year, but not more than two years	369	449
Later than two years, but not more than three years	325	414
Later than three years, but not more than four years	285	364
Later than four years, but not more than five years	237	304
More than five years	1,307	1,763
	2,940	3,778

The total of contingent rents, primarily turnover based rents, recognised as income during the year was £43m (2025: £25m).

41 EVENTS AFTER THE REPORTING PERIOD

On 14 April 2026, the Group restructured its £300m syndicated term loan facility on substantially the same terms and extended the final

maturity to November 2028.

On 1 May 2026, the Group cancelled its undrawn £100m revolving bilateral debt facility that was due to mature in November 2026.

No other significant events occurred after the reporting period but before the financial statements were authorised for issue.

147LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

EPRA NET ASSET MEASURES

TABLE 54

31 March 2026

EPRA NRV

£m

EPRA NTA

£m

EPRA NDV

£m

Net assets attributable to shareholders 6,537 6,537 6,537

Shortfall of fair value over net investment in finance lease book value (6) (6) (6)

Other intangible asset – (1) –

Fair value of interest-rate swaps (4) (4) –

Shortfall of fair value of debt over book value (note 21) – – 359

Excess of fair value of trading properties over book value 48 48 48

Purchasers’ costs

640 – –

Net assets used in per share calculation 7,215 6,574 6,938

EPRA NRV EPRA NTA EPRA NDV

Diluted net assets per share 968p 882p 931p

EPRA NET ASSET MEASURES

TABLE 55

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 21) – – 334

Excess of fair value of trading properties over book value 27 27 27

Purchasers’ costs

668 – –

Net assets used in per share calculation 7,200 6,530 6,867

EPRA NRV EPRA NTA EPRA NDV

Diluted net assets per share 964p 874p 919p

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

148 LANDSEC ANNUAL REPORT 2026

EPRA PERFORMANCE MEASURES

TABLE 56

31 March 2026

Measure Definition for EPRA measure Notes

EPRA

measure

EPRA earnings Recurring earnings from core operational activity 5 £382m

EPRA earnings per share EPRA earnings per weighted number of ordinary shares 5 51.4p

EPRA diluted earnings per share EPRA diluted earnings per weighted number of ordinary shares 5 51.1p

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 £6,574m

EPRA Net Tangible Assets per share Diluted Net Tangible Assets per share 5 882p

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 £6,938m

EPRA net disposal value per share Diluted net disposal value per share 5 931p

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

20 40.4%

Table

EPRA

measure

Voids/vacancy rate ERV of vacant space as a % of ERV of Combined Portfolio excluding the

developmentprogramme

57 2.0%

Net initial yield (NIY) Annualised rental income less non-recoverable costs as a % of market value plus

assumed purchasers’ costs

59 5.4%

Topped-up NIY NIY adjusted for rent-free periods

59 6.1%

Cost ratio Total costs as a percentage of gross rental income (including direct vacancy costs)

60 20.8%

Total costs as a percentage of gross rental income (excluding direct vacancy costs)

60 16.0%

1. EPRA LTV differs from the Group LTV presented in note 20 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 £13m. 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 57

31 March

2026

£m

ERV of vacant properties 14

ERV of Combined Portfolio excluding properties under development 700

EPRA vacancy rate (%) 2.0

149LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

BUSINESS ANALYSIS – EPRA DISCLOSURES CONTINUED

CHANGE IN NET RENTAL INCOME FROM THE LIKE-FOR-LIKE PORTFOLIO

TABLE 58

Change

2026

£m

2025

£m £m %

Office-led 262 247 15 6%

Retail-led 171 162 9 6%

Residential-led 8 8 – –

Other assets 42 45 (3) (4%)

483 462 21 5%

1. Excludes movement in bad/doubtful debts and surrender premiums received during the year.

2. Restated for changes in the Group’s operating segments as outlined in note 4.

EPRA NET INITIAL YIELD (NIY) AND TOPPED-UP NIY

TABLE 59

31 March

2026

£m

Combined Portfolio

10,836

Trading properties 122

Less: Properties under development, trading properties under development and land (1,309)

Like-for-like investment property portfolio, proposed and completed developments, and completed trading properties 9,649

Plus: Allowance for estimated purchasers’ costs 573

Grossed-up completed property portfolio valuation (a) 10,222

EPRA annualised cash passing rental income

635

Net service charge expense

(6)

Void costs and other deductions (73)

EPRA Annualised net rent

(b) 556

Plus: Rent-free periods and other lease incentives (annualised) 60

Topped-up annualised net rents (c) 616

EPRA NIY (b/a) 5.4%

EPRA Topped-up NIY (c/a) 6.1%

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.

150

LANDSEC ANNUAL REPORT 2026

COST ANALYSIS

TABLE 60

2026 2025

Total

£m

Cost

ratio

Total

£m

Cost

ratio

Gross rental income

(beforerents payable)

656 636

Costs recovered through rents

but not separately invoiced

(13) (12)

Adjusted gross rental

income

643 624

Rents payable (12) (12)

EPRA gross rental income 631 612

£m

Gross rental income (before rents payable)

656

Rents payable (12)

Gross rental income (after rents payable) 644

Direct

property

costs

£82m

Managed operations 10 20

Net service charge expense (6)

Tenant default (2) (11)

Net direct property expenditure (77)

Void related costs 30 18

Net other operating income (1)

Other direct property costs 40

Movement in bad and doubtful debts

provision

Segment net rental income 562 Development expenditure 5 6

Net indirect expenses (6 2)

Net

indirect

expenses

£62m

Asset management,

administration and

compliance

61 70

Segment profit before finance expense 500

Net finance expense – Group (110)

Net finance expense – joint ventures (8)

EPRA earnings 382

Total (incl. direct

vacancycosts)

144 145

Costs recovered through rents

(13) (12)

EPRA costs (incl. direct

vacancy costs)

1 31 20.8 133 21.7

Less: Direct vacancy costs ( 30) (18)

EPRA (excl. direct

vacancycosts)

101 16.0 115 18.8

1. Percentages represent costs divided by EPRA gross rental income.

151LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

BUSINESS ANALYSIS – EPRA DISCLOSURES CONTINUED

ACQUISITIONS, DISPOSALS AND CAPITAL EXPENDITURE

TABLE 61

Year ended

31 March

2026

Year ended

31 March

2025

Investment properties

Group

£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 10,034 608 (33) 10,609 9,797

Acquisitions 75 – – 75 724

Capital expenditure 443 2 (1) 444 486

Capitalised interest 41 – – 41 27

Net movement in head leases capitalised (2) – – (2) 86

Disposals (669) – – (669) (482)

Net surplus on revaluation of investment properties

96 27 (1) 122 107

Transfer to non-current assets held for sale – – – – (110)

Transfer to property, plant and equipment

– – – – (26)

Net book value at the end of the year 10,018 637 (35) 10,620 10,609

(Loss)/profit on disposal of investment properties (103) (1) – (104) (12)

Trading properties £m £m £m £m £m

Net book value at the beginning of the year 81 – – 81 100

Transfer to trade and other receivables – – – – (11)

Acquisitions – – – – 10

Capital expenditure 7 – – 7 11

Capitalised interest 1 – – 1 1

Disposals (30) – – (30) (26)

Movement in impairment (3) – – (3) (4)

Net book value at the end of the year 56 – – 56 81

Loss on disposal of trading properties (1) – – (1) (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

75 – 75 734

Development capital expenditure

298 – 298 318

Other capital expenditure 145 7 151 179

Capitalised interest 41 1 42 28

Acquisitions, development and other capital expenditure 559 8 566 1,259

Disposals £m £m

Net book value – investment property disposals 669 482

Net book value – trading property disposals 30 26

Net book value – other net assets (21) (1)

Loss on disposal – investment properties (104) (15)

Loss on disposal – trading properties (2) (6)

Other – 61

Total disposal proceeds 572 547

1. This represents the interest in Liverpool ONE that is not owed by the Group but is consolidated in the Group financial statements.

2. Whilst the Group’s accounting policy is to recognise the profit/(loss) on disposal of investment properties with reference to the asset’s carrying amount at the beginning

of the accounting period, £22m of the balance pertains to revaluation movements arising from rental income received from 1 April 2025 to the date of disposal on the

Queen Anne’s Mansions office block.

3. Refer to note 18 for further information.

4. See EPRA analysis of capital expenditure table 62 for further details.

5. Properties acquired in the year includes £14m for the acquisition of an additional 2.78% stake in Liverpool ONE through accretive debt repayment.

6. Development capital expenditure for investment properties comprises expenditure on the development pipeline and completed developments.

152

LANDSEC ANNUAL REPORT 2026

EPRA ANALYSIS OF CAPITAL EXPENDITURE

TABLE 62

Year ended 31 March 2026

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

Office-led

West End offices – 5 – 31 1 32 1 38 (1) – 39

City and

Southwark

offices

– 4 – 29 – 29 2 35 – – 35

Manchester

offices

– – – 3 – 3 – 3 – – 3

Retail and other – – – 8 2 10 – 10 – – 10

Developments 63 245 – – – – 35 343 – – 343

Total Office-led 63 254 – 71 3 74 38 429 (1) – 430

Retail-led

Shopping centres – 3 7 33 12 52 1 56 2 (12) 66

Outlets – – – 11 1 12 – 12 – – 12

Total Retail-led – 3 7 44 13 64 1 68 2 (12) 78

Residential-led

Developments – 41 – – – – 2 43 1 – 42

Total

Residential-led

– 41 – – – – 2 43 1 – 42

Other assets

Retail and

leisureparks

28 – – 2 7 9 – 37 – – 37

Other – – – – – – – – – – –

Total

Otherassets

28 – – 2 7 9 – 37 – – 37

Total capital

expenditure

91 298 7 117 23 147 41 577 2 (12) 587

Timing difference between accrual and cash basis (42) 3 12 (57)

Total capital expenditure on a cash basis 535 5 – 530

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%.

153

LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

BUSINESS ANALYSIS – GR0UP

TOP 12 OCCUPIERS AT 31 MARCH 2026

TABLE 63

% of

Group rent

Deloitte 2.2%

BBC 2.0%

Taylor Wessing 1.7%

Qube Research & Technologies 1.6%

Inditex UK 1.6%

Verition Advisors UK 1.2%

Boots UK 1.1%

Q Park 1.1%

Cineworld 1.0%

Primark 0.9%

JD Sports Fashion 0.9%

Marks & Spencer 0.9%

16.2%

1. On a proportionate basis.

PROPERTY INCOME DISTRIBUTION (PID) CALCULATION

TABLE 64

Year ended

31 March 2026

£m

Year ended

31 March 2025

£m

Profit before tax per income statement 346 393

Accounting profit on residual operations 32 45

Profit attributable to tax-exempt operations 378 438

Adjustments

Capital allowances (84) (56)

Capitalised interest (42) (29)

Revaluation surplus (122) (117)

Tax exempt disposals 5 (18)

Capital expenditure 5 5

Other tax adjustments 113 6

REIT dividends received (10) (11)

Estimated tax-exempt income for the year 243 218

PID thereon (90%) 218 197

REIT dividends received (100%) 10 11

Minimum PID to be paid 228 208

As a 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 £2m current tax charge

(2025: £3m credit).

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.

154 LANDSEC ANNUAL REPORT 2026

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 2026 and 31 March 2025:

TABLE 65

PID allocation

Dividends in excess

of minimum PID

Total

dividend

Year ended

31 March 2026

£m

Year ended

31 March 2025

£m

Pre-

31 March 2025

£m £m £m

Dividends paid in year to 31 March 2025 – 208 – 89 297

Dividends paid in year to 31 March 2026 228 – – 35 263

Minimum PID to be paid by 31 March 2027 – – n/a n/a –

Total PID required 228 208

The Group has met all the REIT requirements, including the payment by 31 March 2026 of the minimum (PID) forthe year ended 31 March 2025.

The forecast minimum PID for the year ended 31 March 2026 is £228m, which must be paid by 31 March 2027. The Group has already made PID

dividends relating to 31 March 2026 of £228m.

Our latest tax strategy can be found on our corporate website. In the year, the total taxes we incurred and collected were £161m (2025: £135m),

of which £46m (2025: £36m) 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 66

For the year ended 31 March 2026 For the year ended 31 March 2025

Tax-exempt

business

Residual

business

Adjusted

results

Tax-exempt

business

Residual

business

Adjusted

results

Profit before tax (£m)

361 (60) 301 317 (54) 263

Balance of business – 75% profits test 100.0% 0.0% 100.0% 0.0%

Adjusted total assets (£m)

10,796 773 11,569 10,872 761 11,633

Balance of business – 75% assets test 93.3% 6.7% 93.5% 6.5%

1. Calculated according to REIT rules.

FLOOR SPACE (MILLION SQ FT

)

CHART 67

● OFFICE-LED

6.1

● RETAIL-LED 11.5

● RESIDENTIAL-LED

1.0

● OTHER ASSETS

3.5

TOTAL

22.1

1. Joint ventures are reflected at 100% values, not Group share.

FLOOR AREAS

TABLE 68

31 March 2026

Million sq ft

Office-led

West End offices 2.4

City and Southwark offices 1.5

Manchester offices 0.9

Retail and other 1.0

Developments 0.3

Total Office-led 6.1

Retail-led

Shopping centres 10.4

Outlets 1.1

Total Retail-led 11.5

Residential-led

Developments 1.0

Total Residential-led 1.0

Other assets

Retail and leisure parks 3.5

Total Other assets 3.5

Total 22.1

1. Joint ventures are reflected at 100% values, not Group share.

155

LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

SUSTAINABILITY PERFORMANCE

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 2026.

STREAMLINE 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 (i.e. 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 2025’. 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 currently deemed relevant for Landsec,

withadditional relevant categories to be incorporated in future reporting as our emissions inventory and methodologies continue to evolve.

Our emissions inventory can be seen in chart 70. Our energy and carbon reporting methodology is detailed in our Sustainability Additional

Disclosures 2026 at landsec.com/en/sustainability/key-information/reports-benchmarking.

GHG EMISSIONS

TABLE 69

Emissions Unit FY26 FY25 FY24

Scope 1 tCO

e 3,273 5,165 5,809

Scope 2 (location-based method) tCO

e 17,769 17,938 17,667

Scope 2 (market-based method) tCO

e 3,441 4,133 2,761

Total Scope 1 and 2 (location-based method) tCO

e 21,042 23,103 23,475

Total Scope 1 and 2 (market-based method) tCO

e 6,714 9,298 8,569

Scope 3 category

Category 1 purchased goods and services (PG&S) tCO

e 24,295 35,016 35,354

Category 2 capital goods tCO

e 75,915 62,279 73,355

Category 3 fuel- and energy-related activities tCO

e 6,775 6,406 6,575

Category 4 upstream transportation and distribution tCO

e Under PG&S Under PG&S Under PG&S

Category 5 waste generated in operations tCO

e 132 160 605

Category 6 business travel tCO

e 304 249 274

Category 7 employee commuting tCO

e 137 161 131

Category 13 downstream leased assets tCO

e 72,377 73,273 88,415

Total Scope 3 emissions tCO

e 179,936 177,544 204,710

Total Scope 1, 2, 3 emissions (location-based method) tCO

e 200,978 200,647 228,185

Intensity Unit FY26 FY25 FY24

Total Scope 1 and 2 (location-based method) kgCO

e/m

11.47 13.45 13.01

Total Scope 1 and 2 (market-based method) kgCO

e/m

3.66 5.41 4.75

The following Scope 3 emissions category 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.

156

LANDSEC ANNUAL REPORT 2026

EMISSIONS INVENTORY (% OF TOTAL EMISSIONS)

CHART 70

Capital goods

Downstream leased assets

Purchased goods and services (PG&S)

Other emissions

Fuel and energy-related activities

38%

36%

12%

0.3%

●

SCOPE 1

●

SCOPE 2

(LOCATION-BASED METHOD)

●

SCOPE 3

89%

SCOPE 1 AND 2 EMISSIONS –

YEAR-ON-YEAR DRIVING FACTORS

CHART 71

23,103

3,790

(88)

(549)

(1,912)

(3,302)

21,042

5,000

10,000

15,000

20,000

30,000

25,000

tCO

FY25

Portfolio

changes

External

temperature

Occupancy

changes

Energy

efficiencies

Emission

factor

FY26

Scope 1 and 2 emissions, calculated using location-based emission

factors, have decreased by 9% compared with the previous reporting

year. The reduction was primarily driven by grid decarbonisation,

reflected in a 14.5% decrease in location-based electricity emission

factors compared with the prior year, alongside continued energy

efficiency initiatives across our assets. These reductions were

partially offset by an increase in emissions associated with portfolio

acquisitions and the transition to full operational control of an asset

acquired in the prior year. The detailed breakdown of main factors

driving the change in our Scope 1 and Scope 2 emissions can be seen

in the waterfall chart 71.

In terms of market-based emissions, the 28% year-on-year

reduction primarily reflects the transition of assets acquired in the

prior year to our corporate contract supply from REGO-backed

renewable electricity.

The two largest Scope 3 categories are capital goods and downstream

leased assets, making up nearly 74% of our total emissions, as shown

in table 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 increased by 22% compared

withthe previous reporting year, primarily due to an increase in

refurbishment and tenant fit-out projects across our portfolio.

Incontrast, emissions from purchased goods and services decreased

by 31% year on year, driven by strengthened engagement with our

strategic suppliers and an enhanced approach to collecting carbon

and energy data from suppliers.

We continue making considerable progress in reducing upfront

embodied carbon across our developments, as discussed on

pages31-32. Upfront embodied carbon performance across

our development pipeline is disclosed in our Sustainability Data

Tables 2026.

For downstream leased assets, we continue engaging with our

tenants across our FRI assets and retail brand partners to increase

theproportion of primary tenant energy consumption data, which

now represents 71% of our total downstream leased assets data.

Thisrepresents a 5 percentage point decrease as compared with prior

year, reflecting an increased number of tenants following portfolio

acquisition. Looking ahead, we have established a partnership with

athird-party solution provider to access aggregated tenant energy

consumption data from the national energy database for a number

of our shopping centres. This enhanced data will be included into our

reporting figures from the next reporting year, and we anticipate this

will increase the proportion of primary tenant energy consumption

data reported. Despite an increase in the number of tenants following

portfolio acquisitions, emissions from downstream leased assets

remained broadly stable during the reporting period.

157LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

SUSTAINABILITY PERFORMANCE CONTINUED

ENERGY CONSUMPTION

TABLE 72

Unit FY26 FY25 FY24

Electricity consumption kWh for landlord shared services 88,116,417 80,345,185 81,052,747

(sub)metered to tenants 51,108,584 45,160,499 50,356,156

Total electricity consumption 139,225,001 125,505,684 131,408,903

District heating and

coolingconsumption

kWh for landlord shared services 13,385,240 7,216,433 5,022,349

(sub)metered to tenants 3,240,286 3,600,824 3,991,868

Total heating and cooling consumption 16,625,526 10,817,257 9,014,216

Fuel (natural gas) consumption kWh for landlord shared services 13,217,469 25,406,940 28,558,903

(sub)metered to tenants 15,739,193 15,925,043 16,912,876

Total fuel (natural gas) consumption 28,956,663 41,331,982 45,471,779

Total energy consumption kWh for landlord shared services 114,719,127 112,968,557 114,633,999

(sub)metered to tenants 70,088,063 64,686,366 71,260,900

Total energy consumption 184,807,189 177,654,923 185,894,898

Energy intensity m² floor area 1,834,450 1,717,547 1,804,436

kWh/m² Total building energy intensity 101 103 103

The table above presents the absolute energy consumption procured by Landsec, broken down by landlord and tenant usage. During the year,

total energy consumption increased by 4% year on year, primarily due to a 7% increase in absolute floor area following portfolio acquisition,

leading to a 3% reduction in energy intensity. The reduction was primarily driven by improvements across our Workplace portfolio, reflecting the

continuous optimisation of existing building systems and the ASHP retrofits across a number of London offices as part of our NZTIP. Inaddition,

energy performance improvements at our retail assets, including the installation of new solar PV system, also contributed to thereduction.

Fordetails on the progress of our NZTIP and energy performance, see pages 30-31.

ASSURANCE

Landsec’s auditor, EY, has once again conducted sustainability assurance as part of our ongoing commitment to embedding sustainability

across the business and enhancing the integrity, quality and usefulness of the information we disclose. 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 26-39; the sustainability content in the ‘Additional Information’ section of the Landsec Annual

Report 2026 pages 156-158; the Sustainability Additional Disclosures 2026 and the Sustainability Data Tables 2026 available on our website.

Thefull assurance statement is available at landsec.com/en/sustainability/key-information/reports-benchmarking.

158 LANDSEC ANNUAL REPORT 2026

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 73

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 accounting return n/a Note 5

Adjusted net cash inflow from operating activities Net cash inflow from operating activities Note 12

Combined Portfolio Investment properties Note 13

Adjusted net debt Borrowings Note 20

Group LTV n/a Note 20

EPRA LTV n/a Note 20

ALTERNATIVE PERFORMANCE MEASURES

159LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

COMBINED PORTFOLIO ANALYSIS

TOTAL PORTFOLIO ANALYSIS TOTAL PORTFOLIO ANALYSIS CONTINUED

TABLE 74

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. Restated for changes in the Group’s operating segments as

outlined in note 4.

5. Comprises the development pipeline – refer to Glossary for

definition.

6. Net initial yield – refer to Glossary for definition. This calculation

includes all properties including those sites with no income.

7. Equivalent yield – refer to Glossary for definition. Future

developments are excluded from the calculation of equivalent

yield on the Combined Portfolio.

8. The like-for-like portfolio – refer to Glossary for definition.

9. Includes owner-occupied property.

Market value

Valuation movement

Rental income

Annualised

rental income

Net estimated

rental value

Net initial yield

Equivalent yield

31 March

2026

£m

31 March

2025

£m

Surplus/

(deficit)

£m

Surplus/

(deficit)

31 March

2026

£m

31 March

2025

£m

31 March

2026

£m

31 March

2025

£m

31 March

2026

£m

31 March

2025

£m

31 March

2026

Movement

in like-

for-like

bps

31 March

2026

Movement

in like-

for-like

bps

Office-led Office-led

West End offices 2,930 3,124 29 1.1 152 162 136 164 192 202 West End offices 3.9 15 5.6 15

City and Southwark offices 1,481 1,445 27 1.9 89 80 90 85 113 111 City and Southwark offices 5.0 76 6.2 6

Manchester offices 303 258 6 2.0 25 24 28 22 30 28 Manchester offices 6.9 37 8.2 21

Retail and other

1,032 1,139 (12) (1.2) 60 59 57 60 58 60 Retail and other

4.7 31 4.8 (14)

Developments

1,273 1,108 (57) (4.3) 1 2 – – 91 85 Developments

0.0 n/a 5.7 n/a

Total Office-led 7,019 7,074 (7) (0.1) 327 327 311 331 484 486 Total Office-led 4.5 40 5.9 14

Retail-led Retail-led

Shopping centres 2,293 2,132 103 4.8 211 171 206 200 214 205 Shopping centres 7.1 (8) 7.7 (7)

Outlets 662 627 23 3.7 53 51 49 48 54 52 Outlets 6.1 (20) 6.7 (19)

Total Retail-led 2,955 2,759 126 4.6 264 222 255 248 268 257 Total Retail-led 6.6 (7) 7.1 (10)

Residential-led Residential-led

Developments

318 275 0.3 0.1 12 12 11 11 27 14 Developments

4.1 n/a 6.5 n/a

Total Residential-led 318 275 0.3 0.1 12 12 11 11 27 14 Total Residential-led 4.1 n/a 6.5 n/a

Other assets Other assets

Retail and leisure parks 544 772 5 1.0 53 73 47 67 49 66 Retail and leisure parks 7.1 (44) 8.2 7

Other – – – – – 2 – – – – Total Other assets 7.1 (44) 8.2 7

Total Other assets 544 772 5 1.0 53 75 47 67 49 66 Combined Portfolio 5.4 15 6.3 3

Combined Portfolio 10,836 10,880 124 1.2 656 636 624 657 828 823

Properties treated as finance leases – – – – (1) (1)

Represented by:

Combined Portfolio 10,836 10,880 124 1.2 655 635 Investment portfolio 5.3 n/a 6.5 n/a

Share of joint ventures 5.9 n/a 6.2 n/a

Represented by: Combined Portfolio 5.4 n/a 6.3 n/a

Investment portfolio 10,175 10,244 98 1.0 569 585 539 575 736 735

Share of joint ventures 661 636 26 4.3 86 50 85 82 92 88

Combined Portfolio 10,836 10,880 124 1.2 655 635 624 657 828 823

160 LANDSEC ANNUAL REPORT 2026

TOTAL PORTFOLIO ANALYSIS TOTAL PORTFOLIO ANALYSIS CONTINUED

TABLE 74

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. Restated for changes in the Group’s operating segments as

outlined in note 4.

5. Comprises the development pipeline – refer to Glossary for

definition.

6. Net initial yield – refer to Glossary for definition. This calculation

includes all properties including those sites with no income.

7. Equivalent yield – refer to Glossary for definition. Future

developments are excluded from the calculation of equivalent

yield on the Combined Portfolio.

8. The like-for-like portfolio – refer to Glossary for definition.

9. Includes owner-occupied property.

Market value

Valuation movement

Rental income

Annualised

rental income

Net estimated

rental value

Net initial yield

Equivalent yield

31 March

2026

£m

31 March

2025

£m

Surplus/

(deficit)

£m

Surplus/

(deficit)

31 March

2026

£m

31 March

2025

£m

31 March

2026

£m

31 March

2025

£m

31 March

2026

£m

31 March

2025

£m

31 March

2026

Movement

in like-

for-like

bps

31 March

2026

Movement

in like-

for-like

bps

Office-led Office-led

West End offices 2,930 3,124 29 1.1 152 162 136 164 192 202 West End offices 3.9 15 5.6 15

City and Southwark offices 1,481 1,445 27 1.9 89 80 90 85 113 111 City and Southwark offices 5.0 76 6.2 6

Manchester offices 303 258 6 2.0 25 24 28 22 30 28 Manchester offices 6.9 37 8.2 21

Retail and other

1,032 1,139 (12) (1.2) 60 59 57 60 58 60 Retail and other

4.7 31 4.8 (14)

Developments

1,273 1,108 (57) (4.3) 1 2 – – 91 85 Developments

0.0 n/a 5.7 n/a

Total Office-led 7,019 7,074 (7) (0.1) 327 327 311 331 484 486 Total Office-led 4.5 40 5.9 14

Retail-led Retail-led

Shopping centres 2,293 2,132 103 4.8 211 171 206 200 214 205 Shopping centres 7.1 (8) 7.7 (7)

Outlets 662 627 23 3.7 53 51 49 48 54 52 Outlets 6.1 (20) 6.7 (19)

Total Retail-led 2,955 2,759 126 4.6 264 222 255 248 268 257 Total Retail-led 6.6 (7) 7.1 (10)

Residential-led Residential-led

Developments

318 275 0.3 0.1 12 12 11 11 27 14 Developments

4.1 n/a 6.5 n/a

Total Residential-led 318 275 0.3 0.1 12 12 11 11 27 14 Total Residential-led 4.1 n/a 6.5 n/a

Other assets Other assets

Retail and leisure parks 544 772 5 1.0 53 73 47 67 49 66 Retail and leisure parks 7.1 (44) 8.2 7

Other – – – – – 2 – – – – Total Other assets 7.1 (44) 8.2 7

Total Other assets 544 772 5 1.0 53 75 47 67 49 66 Combined Portfolio 5.4 15 6.3 3

Combined Portfolio 10,836 10,880 124 1.2 656 636 624 657 828 823

Properties treated as finance leases – – – – (1) (1)

Represented by:

Combined Portfolio 10,836 10,880 124 1.2 655 635 Investment portfolio 5.3 n/a 6.5 n/a

Share of joint ventures 5.9 n/a 6.2 n/a

Represented by: Combined Portfolio 5.4 n/a 6.3 n/a

Investment portfolio 10,175 10,244 98 1.0 569 585 539 575 736 735

Share of joint ventures 661 636 26 4.3 86 50 85 82 92 88

Combined Portfolio 10,836 10,880 124 1.2 655 635 624 657 828 823

161LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

INCOME STATEMENT

TABLE 75

Year ended and as at 31 March

2026

£m

2025

£m

2024

£m

2023

£m

2022

£m

2021

£m

2020

£m

2019

£m

2018

£m

2017

£m

Revenue 892 842 824 791 679 635 741 757 830 781

Costs (472) (429) (409) (382) (308) (333) (274) (271) (321) (260)

420 413 415 409 371 302 467 486 509 521

Share of post-tax profit/(loss) from

joint ventures

52 37 2 (1) 33 (192) (151) (85) 27 69

(Loss)/profit on disposal of investment

properties

(103) (15) (16) (144) 107 8 (6) – 1 19

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

96 91 (628) (827) 416 (1,448) (1,000) (441) (98) (186)

(Loss)/gain on changes in finance leases – – – (6) 6 – – – – –

Operating profit/(loss) 465 526 (227) (569) 935 (1,330) (690) (40) 505 434

Net finance expense (119) (133) (114) (53) (60) (63) (147) (83) (548) (268)

Profit/(loss) before tax 346 393 (341) (622) 875 (1,393) (837) (123) (43) 166

Taxation (2) 3 – – – – 5 4 (1) 1

Profit/(loss) for the year 344 396 (341) (622) 875 (1,393) (832) (119) (44) 167

Net surplus/(deficit) on revaluation

ofinvestment properties

Investment portfolio 96 91 (628) (827) 416 (1,448) (998) (440) (98) (187)

Share of joint ventures 27 13 (19) (30) (3) (198) (181) (117) 7 40

Adjustment for non-wholly owned

subsidiaries

(1) 3 22 9 (4) – – – – –

Total 122 107 (625) (848) 409 (1,646) (1,179) (557) (91) (147)

EPRA earnings 382 374 371 393 355 251 414 442 406 382

Results per share

Total dividend payable in respect

ofthe financial year

41.2p 40.4p 39.6 p 38.6p 3 7. 0 p 27.0p 23.2p 45.55p 44.2p 38.55p

Basic earnings/(loss) per share 46.2p 53.3p (43.0)p (83.6)p 117.4p (188.2)p (112.4)p (16.1)p (5.8)p 21.1p

Diluted earnings/(loss) per share 45.9p 53.0p (43.0)p (83.6)p 117.1p (188.2)p (112.4)p (16.1)p (5.8)p 21.1p

EPRA earnings per share 51.4p 50.3p 50.1p 53.1p 48.0p 33.9p 55.9p 59.7p 53.1p 48.4p

EPRA diluted earnings per share 51.1p 50.1p 50.1p 53.1p 47.8p 33.9p 55.9p 59.7p 53.1p 48.3p

Net assets per share 882p 877p 863p 945p 1,070p 975p 1,182p 1,341p 1,404p 1,418p

Diluted net assets per share 877p 872p 859p 942p 1,067p 973p 1,181p 1,339p 1,404p 1,416p

EPRA Net Tangible Assets per share 882p 874p 859p 936p 1,063p 985p 1,192p 1,348p 1,410p 1,422p

1. Includes the Group’s non-wholly owned subsidiaries on a proportionate basis.

2. This represents the non-controlling interest share in Liverpool ONE and MediaCity during periods when they were not wholly owned but were consolidated in the Group

financial statements.

TEN-YEAR SUMMARY

162 LANDSEC ANNUAL REPORT 2026

BALANCE SHEET

TABLE 76

As at 31 March

2026

£m

2025

£m

2024

£m

2023

£m

2022

£m

2021

£m

2020

£m

2019

£m

2018

£m

2017

£m

Investment properties 10,018 10,034 9,330 9,658 11,207 9,607 11,297 12,094 12,336 12,144

Property, plant and equipment 42 42 7 – – – – – – –

Intangible assets 3 3 3 6 8 8 14 20 34 36

Net investment in finance leases 20 19 21 21 70 152 156 159 162 165

Investment in joint ventures 593 551 529 533 700 625 824 1,031 1,151 1,734

Investment in associates – – – 3 4 – – – – –

Trade and other receivables 148 229 159 146 177 170 178 176 165 123

Other non-current assets 45 22 41 67 61 22 32 30 49 51

Total non-current assets 10,869 10,900 10,090 10,434 12,227 10,584 12,501 13,510 13,897 14,253

Trading properties and long-term

development contracts

56 81 100 118 145 36 24 23 24 122

Trade and other receivables 491 467 379 365 368 354 433 437 471 418

Monies held in restricted accounts

and deposits

11 20 6 4 22 10 9 36 15 21

Cash and cash equivalents 106 39 78 41 128 – 1,345 14 62 30

Other current assets 7 4 11 4 5 6 48 14 – –

Non-current asset held for sale – 110 – – – – – – – –

Total current assets 671 721 574 532 668 406 1,859 524 572 591

Borrowings (746) (752) (975) (315) (541) (906) (977) (934) (872) (404)

Trade and other payables (363) (306) (348) (306) (320) (252) (270) (273) (294) (302)

Provisions (41) (44) (30) – – – – – – –

Other current liabilities (18) (6) – (24) (11) (7) (2) (18) (14) (7)

Total current liabilities (1,168) (1,208) (1,353) (645) (872) (1,165) (1,249) (1,225) (1,180) (713)

Borrowings (3,749) (3,802) (2,805) (3,223) (4,012) (2,610) (4,355) (2,847) (2,858) (2,859)

Trade and other payables (40) (44) (4) (17) (8) (1) (1) (1) – (25)

Provisions (23) (30) (42) – – – – – – –

Other non-current liabilities (22) (5) (13) (9) (12) (2) (5) (5) (8) (9)

Redemption liability – – – – – – – (36) (37) (36)

Total non-current liabilities (3,834) (3,881) (2,864) (3,249) (4,032) (2,613) (4,361) (2,889) (2,903) (2,929)

Net assets 6,538 6,532 6,447 7,072 7,991 7,212 8,750 9,920 10,386 11,202

Net debt

(4,210) (4,303) (3,496) (3,348) (4,254) (3,509) (3,942) (3,747) (3,654) (3,219)

Market value of the Combined

Portfolio

10,836 10,880 9,963 10,239 12,017 10,791 12,781 13,750 14,103 14,439

Adjusted net debt

(4,215) (4,304) (3,517) (3,287) (4,179) (3,489) (3,926) (3,737) (3,652) (3,261)

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) and £31m (2018 and 2017).

163

LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

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

Cathedral (Brighton) Limited

Cathedral (Bromley 2) Limited

Cathedral (Bromley Esco) Limited

Cathedral (Bromley) Limited

Cathedral (Greenwich Beach) Limited

Cathedral (Preston Barracks) Limited

Cathedral (Sittingbourne) Limited

Dashwood House Limited

Deadhare Limited

Development Securities (Curzon Park) Limited

Development Securities (Furlong) Limited

Development Securities (Greenwich) 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 (Sevenoaks) Limited

Development Securities (Slough) Limited

Dock 10 Limited

DS Renewables LLP

EPD Buckshaw Village Limited

Greenhithe Holdings Limited

Greenwitch Limited

Gunwharf Quays Limited

HDD Didcot Limited

HDD Lawley Village Limited

Kensington & Edinburgh Estates

(South Woodham Ferrers) 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 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 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

Landsec 22 Limited

Landsec 23 Limited

Landsec Investment Services Limited

Landsec Limited

Landsec U and I Developer Limited

Landsec Workplace Developer Limited

LC25 Limited

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

As at 31 March 2026, 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.

Company name Company name

164 LANDSEC ANNUAL REPORT 2026

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 Residential GP Limited

Lovibond Lane Management Company

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 Banbridge Phase Two Limited

LS Bluewater Investments Limited

LS Braintree Limited

LS Brighton Marina Limited

LS Buchanan Limited

LS Cambridge Limited

LS Canterbury 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 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 London REIT Limited

LS Lucent Limited

LS Mayfield 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 Red Lion Court Developer Limited

LS Regent Quarter Limited

LS Regent Quarter Residential Limited

LS Retail Warehouses Limited

LS Shepherds Bush Limited

LS Silverburn 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 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

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

Company name Company name Company name

165LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES CONTINUED

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

OSB (Holdco 1) Limited

OSB (Holdco 2) Limited

Oval Works Limited

Oxford Castle Apartments Limited

Prime London Net Zero Office GP Limited

Prime London Net Zero Office LP

Public Private Partnership (H) Limited

Purplexed LLP

Ravenseft Properties Limited

Rivella Properties Bicester 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

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 (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

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. 6th Floor, 2 Grand Canal Square, Dublin 2,

Dublin, Ireland.

3. C/O James Cowper Kreston, The White Building,

1-4 Cumberland Place, Southampton, SO15 2NP,

England.

4. C/O BDO LLP, 5 Temple Square, Temple Street,

Liverpool, L2 5RH, England.

5. 44 Esplanade, St Helier, JE4 9WG, Jersey.

6. IFC 5, St Helier, JE1 1ST, Jersey.

7. Basisweg 10, 1043 AP Amsterdam, The Netherlands.

8. PO BOX 33, Dorey Court, Admiral Park, St Peter Port,

GY1 4AT, Guernsey.

9. 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 Company name

166 LANDSEC ANNUAL REPORT 2026

As at 31 March 2026, 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

97%

The Liverpool One Residential Limited

Partnership

97%

TLD (Landmark Court) Limited 99%

TLD Kidbrooke LLP

Victoria Circle Developer Limited 50%

West India Quay Limited

50%

West India Quay Management

Company Limited

31%

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

13%

YC Shepherds Bush Limited

13%

Lightbox (MediaCityUK)

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

Unit Trusts Group share %

BWAT Retail Property Trust Fund

86%

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. 10 Fenchurch Avenue, London, EC3M 5AG, England.

2. IFC 5, St Helier, JE1 1ST, Jersey.

3. 26 New Street, St Helier, JE2 3RA, Jersey.

4. Ground Floor T3 Trinity Park, Bickenhall Lane,

Birmingham, B37 7ES, England.

5. Bruce Kenrick House, 2 Killick Street, London,

N1 9FL, England.

6. c/o Pavilion Trustees Limited, 47 Esplanade,

St Helier, JE2 3BX, Jersey.

7. IFC 1, St Helier, JE2 3BX, Jersey.

8. 50, La Colomberie, St Helier, JE24QB, Jersey.

9. 2 Bentinck Street, London, W1U 2FA, England.

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. 33 Margaret Street, London, W1G 0LD, England.

Bluewater REIT 75%

BWAT Retail Nominee (1) Limited

86%

BWAT Retail Nominee (2) Limited

86%

Cathedral (Movement, Greenwich) LLP 53%

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%

Landmark Court Partnership Limited 51%

Liverpool One GP Limited 97%

Liverpool One Management

Company Limited

50%

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%

Company name Group share % Company name Group share % Limited by guarantee Group share %

167LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

SHAREHOLDER INFORMATION

ANNUAL GENERAL MEETING AND ORDINARY SHARES

The Annual General Meeting is due to be held at 10.30am on Thursday

9 July 2026 at 80 Victoria Street, London SW1E 5JL. The Notice of

Meeting can be found on our website: landsec.com/en/investors/

shareholders-equity-investors/annual-general-meeting

The Company’s Annual Report, results announcements and

presentations and other shareholder information can be viewed

onthe website: landsec.com/en/investors/results-reports

DIVIDENDS

Our final dividend for FY26 will be paid on 24 July 2026 to shareholders

on the register on 19 June 2026.

As announced last year, the Board approved the move to half-

yearlypayments with effect from FY26. This move aligns Landsec

topeers and our financial reporting timeline in addition to

simplifying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/en/investors/shareholders-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/en/investors/

shareholders-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/en/investors/shareholders-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/en/

investors/shareholders-equity-investors/uk-reit-regime-and-dividends

ELECTRONIC COMMUNICATIONS

We encourage shareholders to consider receiving their communications

electronically, enabling them 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 2026

TABLE 77

Type of holder:

Number of

shareholders

% of total

shareholders

Number of

% of total

Private shareholders 6,298 83.54 6,561,097 0.87

Nominee and

institutional investors

1,241 16.46 745,270,200 99.13

Total 7,539 100 751,831,297 100

Size of holding

(number of ordinary shares)

1–1,000 4,994 66.24 1,699,116 0.23

1,001–5,000 1,446 19.18 2,979,684 0.40

5,001–10,000 235 3.12 1,677,201 0.22

10,001–50,000 336 4.46 8,433,041 1.12

50,001–100,000 123 1.63 8,862,600 1.18

100,001–500,000 210 2.78 49,956,106 6.64

500,001–highest

195 2.59 678,223,549 90.21

Total 7,539 100 751,831,297 100

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/en/privacy-policy/shareholders

168 LANDSEC ANNUAL REPORT 2026

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

Highdown House

Yeoman Way

Worthing

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

KEY CONTACTS AND ADVISERS

169LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

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 20.

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.

GLOSSARY

170 LANDSEC ANNUAL REPORT 2026

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.

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 accounting return (previously 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.

171LANDSEC ANNUAL REPORT 2026

ADDITIONAL INFORMATION

CAUTIONARY STATEMENT

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.

172 LANDSEC ANNUAL REPORT 2026

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.

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