Landsec / British Land: Cash flow driving strong TSR: u/g BLND to OW; reiterate LAND OW

Research evidence excerpt

Landsec / British Land: Cash flow driving strong TSR: u/g BLND to OW; reiterate LAND OW

Equity Research

26 May 2026

Landsec / British Land

Cash flow driving strong TSR: u/g

BLND to OW; reiterate LAND OW

We upgrade BLND to OW and reiterate our OW on LAND. Both European Real Estate

now offer what investors increasingly want from listed real NEUTRAL Unchanged

estate: high recurring EPS, attractive EPS CAGRs, cash flow European Real Estate

Paul May, CFAand sensible ND/EBITDA, not an NAV-led story dependent on

appraisers’ cap-rate assumptions. +44paul.j.may@barclays.com(0)20 3134 1444

Barclays, UK

We upgrade British Land to Overweight from Equal Weight. Following three years of broadly Eleanor Frew, CFA

flat earnings, British Land is returning to earnings growth, and we think the valuation screens +44 (0)20 3555 0748

attractively given increased earnings growth visibility. BLND has spent much of the past decade eleanor.frew@barclays.com

being judged on NAV, ERV growth and valuation yields, but the market increasingly cares about Barclays, UK

recurring earnings, EPS CAGR and cash flow delivery. The company has shown a strong Kanad Mitra

operational performance, clear leasing momentum, in particular from AI and technology +91 (0)22 6175 1793

tenants, and we think it offers the right product in an increasingly bifurcated London office kanad.mitra@barclays.com

market. We model a 4.5% 5-year EPS CAGR, improved on our previous 3.7%. Following the Barclays, UK

shares underperformance YTD, we think the valuation is attractive both versus its own history Celine Soo-Huynh

and in isolation. BLND trades on c.12.5x FY27E PE, or an c.8.0% EPS yield, with FY27 guidance of +44 (0)20 3134 1159

at least 6% earnings growth and a medium-term EPS growth target of 3-6% p.a.