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Registered number: 00961477
LAND SECURITIES PROPERTIES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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LAND SECURITIES PROPERTIES LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors of Land Securities Properties Limited (the 'Company') present their Strategic Report and the audited financial statements for the year ended 31 March 2025.
The results are set out in the Statement of Comprehensive Income on page 8.
The Company has continued to provide management services for its ultimate parent company and other Group undertakings. No changes in the Company's principal activity are anticipated in the foreseeable future.
Key performance indicators
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The directors of the Group manage the Group’s operations on a group basis. For this reason, the Company’s directors believe that an analysis using KPIs for the Company is not necessary or appropriate for an understanding of the development, performance or position of the business of the Company. The development, performance and position of the Group is discussed in the consolidated financial statements of Land Securities Group PLC, in which the entity is consolidated, and which does not form part of this report.
Principal risks and uncertainties
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The principal risk facing the Company is that poor performance of Land Securities Group PLC's investment properties might have a material impact on the management service income in the financial statements. The Company's performance during the year indicates a satisfactory performance of the investment properties held, considering the impact of the wider macro-economic environment. Looking forward, the directors will continue to closely monitor the impact of the wider macro-economic environment and other changes in the operating environment on the performance of the investment properties.
Financial risk management
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The Company is exposed to liquidity risk, credit risk and interest rate risk. Given the absence of external borrowings in the Company, liquidity risk and interest rate risk are not considered material. While the Company has minimal short-term liquidity requirements, any funding requirements could be covered by committed facilities held by other Group companies.
The Company’s principal financial assets are trade and other receivables and amounts due from Group undertakings and therefore the credit risk it faces is primarily attributable to its trade receivables and amounts due from Group undertakings. The Company assesses on a forward-looking basis, the expected credit-losses associated with its trade receivables and amounts due from Group undertakings. A provision for impairment is made for the lifetime expected credit-losses on initial recognition of the receivable and amounts due from Group undertakings. In determining the credit-loss of amounts due from Group undertakings, the Company takes into account any future expectations of likely default events based on the level of capitalisation of the counterparty, which is a fellow subsidiary undertaking of Land Securities Group PLC.
There is no material difference between the book value and the fair value of the financial instruments.
Further discussion of these risks and uncertainties, in the context of the Group as a whole, is provided in the Group’s Annual Report, which does not form part of this report.
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LAND SECURITIES PROPERTIES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The Company’s ultimate parent company is Land Securities Group PLC which indirectly holds 100% of the ordinary share capital of the Company (refer note 20). The Company’s framework in respect of requirements under section 172(1) of the Companies Act is applied through the Land Securities Group’s processes and policies, which place stakeholders at the forefront of the directors’ decision making. Details of the Group’s framework with respect to interests of customers, communities, employees, partners, suppliers and investors can be found in the consolidated financial statements of Land Securities Group PLC for the year ended 31 March 2025, available on the Group’s website, www.landsec.com.
At a Company level, the directors take the interests of stakeholders, namely the Group as the Company’s investor, the Company's employees and the community in which the Company operates, into account when making relevant decisions, ensuring regular and clear lines of communication between the Company and the stakeholders. The relevance of each stakeholder group may increase or decrease by reference to the issue in question, so the directors seek to understand the needs and priorities of each group during its discussions. This, together with the combination of the consideration of long-term consequences of decisions and the maintenance of the Group’s reputation for high standards of business conduct, is integral to the way the directors operate. The Company Secretary plays a key role in ensuring that stakeholders’ interests are fully considered and addressed during the course of the directors’ discussions.
This report was approved by the Board and signed on its behalf.
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LAND SECURITIES PROPERTIES LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the audited financial statements for the year ended 31 March 2025.
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic Report, the Directors' Report and the audited financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare audited financial statements for each financial year. Under that law, the directors have elected to prepare the audited financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. Under company law, the directors must not approve the audited financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.
In preparing these audited financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgments and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the audited financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the audited financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Directors’ engagement statement
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Details of how directors have engaged with key stakeholders of the Company, including its employees, have been disclosed in the Section 172(1) statement in the Strategic Report.
Principal activity, review of the business and future developments
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The Company has continued to provide management services for its ultimate parent company and other Group undertakings. No changes in the Company's principal activity are anticipated in the foreseeable future.
Review of the business and future developments are disclosed in the Strategic Report.
Streamlined Energy and Carbon Reporting (SECR)
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The Company’s ultimate parent company is Land Securities Group PLC which indirectly holds 100% of the ordinary share capital of the Company (refer note 20). The equivalent disclosure with respect to streamlined energy and carbon reporting can be found in the consolidated financial statements of Land Securities Group PLC for the year ended 31 March 2025, available on the Group’s website, www.landsec.com.
The directors have determined that preparing the financial statements on the going concern basis is appropriate due to the continued financial support of the ultimate parent company, Land Securities Group PLC (together with its subsidiaries referred to as the 'Group'). The directors' going concern assessment covers the period to 30 June 2027 and confirmation has been received that Land Securities PLC will support the Company until this date, so long as the Company remains a subsidiary of Land Securities PLC. If the company is sold within the period to 30 June 2027, confirmation has been received that Land Securities Group PLC would ensure the Company remains in a position to continue as a going concern at the point of sale. The Company's ability to meet its future liabilities is therefore dependent on the financial performance, position and liquidity of the Group as a whole. At the Group level, considerations included potential risks and uncertainties in the business, credit, market, property valuation and liquidity risks, including the availability and repayment profile of bank facilities, as well as forecast covenant compliance. Stress testing has been carried out to ensure the Group has sufficient cash resources to continue in operation for the period to 30 June 2027. This stress testing modelled a scenario with materially reduced levels of cash receipts over the next 12 months. based on these considerations, together with available market information and the directors' knowledge and experience of the Company, the directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2025.
Results for the year and dividend
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Results for the year are disclosed in the Strategic Report.
The directors do not recommend the payment of a dividend for the year ended 31 March 2025 (2024: £Nil).
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LAND SECURITIES PROPERTIES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
The directors who served during the year and up to the date of this report were:
M Allan
A Peeke
V Simms
M Thomas
K Seller
L McCaveny
T J Cooper (appointed 23 August 2024) (Alternate)
The Company has made qualifying third-party indemnity provisions for the benefit of the respective directors which were in place
throughout the year and which remain in place at the date of this report.
Financial risk management
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The financial risk management objectives and policies are disclosed in the Strategic Report.
Statement of disclosure of information to auditor
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Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
This report was approved by the Board and signed on its behalf.
Registered and domiciled in England and Wales
Registered number: 00961477
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAND SECURITIES PROPERTIES LIMITED
Opinion
We have audited the financial statements of Land Securities Properties Limited (the 'Company') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity and the related notes 1 to 22, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 101 "Reduced Disclosure Framework" (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
∙give a true and fair view of the Company's affairs as at 31 March 2025 and of its loss for the year then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements 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 are independent of the 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, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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.
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 Company’s ability to continue as a going concern for a period to 30 June 2027.
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 Company’s ability to continue as a going concern.
Other information
The other information comprises the information included in the annual report, 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, 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
∙the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAND SECURITIES PROPERTIES LIMITED (CONTINUED)
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or directors' report.
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 or returns adequate for our audit have not been received from branches not visited by us; or
∙the financial statements 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.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 3, 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 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 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. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management.
Our approach was as follows:
∙We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined that the most significant are those that relate to the reporting framework (FRS 101 and the Companies Act 2006), the relevant tax regulations in the United Kingdom, the UK General Data Protection Regulation (GDPR) and the Bribery Act.
∙We understood how the Company is complying with those frameworks through enquiry with the management and by identifying the Company’s policies and procedures regarding compliance with laws and regulations. We also identified those members of the Company 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 assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might occur by reviewing the Land Securities Group risk register and through enquiry with the Company’s Management during the planning and execution phases of the audit. Where the risk was considered to be higher we performed audit procedures to address each identified fraud risk, specifically the risk over impairment of amounts due from related parties.
∙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 impact the financial statements;
°Reading minutes of the meetings of those charged with governance;
°Obtaining electronic confirmations from the Company’s banking providers to vouch the existence of cash balances;
°Obtaining and reading correspondence from legal and regulatory bodies, including HMRC; 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.
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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF LAND SECURITIES PROPERTIES LIMITED (CONTINUED)
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.
Becky Turner (Senior statutory auditor)
For and on behalf of
Ernst & Young LLP, Statutory Auditor
London
05 June 2026
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LAND SECURITIES PROPERTIES LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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Property management and administrative expenses
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Reversal of impairment of amounts due from Group undertakings
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(Loss)/Profit on disposal of Group undertakings
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(Loss)/profit for the financial year
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Other comprehensive income/(expense):
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Net remeasurement loss on defined benefit pension scheme
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Deferred tax credit on remeasurement above
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The notes on pages 11 to 27 form part of these financial statements.
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All amounts are derived from continuing activities.
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LAND SECURITIES PROPERTIES LIMITED
REGISTERED NUMBER: 00961477
BALANCE SHEET
AS AT 31 MARCH 2025
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Investments in subsidiary undertakings
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Trade and other receivables
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Amounts due from Group undertakings
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Amounts owed to Group undertakings
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The results for the year ended 31 March 2024 have been restated. Refer to note 22.
The financial statements were approved and authorised for issue by the Board and were signed on its behalf by:
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LAND SECURITIES PROPERTIES LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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Comprehensive profit for the year
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Loss on defined benefit pension scheme
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Comprehensive income for the year
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Profit on defined benefit pension scheme
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Contributions from ultimate parent in relation to share based payments
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The notes on pages 11 to 27 form part of these financial statements.
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The results for the year ended 31 March 2024 have been restated. Refer to note 22.
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies
The financial statements have been prepared on a going concern basis and in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' ('FRS 101') and the Companies Act 2006. The financial statements are prepared under the historical cost convention.
Land Securities Properties Limited (the 'Company') is a private company limited by shares and is incorporated, domiciled and registered in England and Wales (Registered number: 00961477). The nature of the Company's operations is set out in the Strategic Report on page 1. The results of the Company are included in the consolidated financial statements of Land Securities Group PLC which are available from the Company's registered office at 100 Victoria Street, London, SW1E 5JL.
The accounting policies which follow set out those policies which apply in preparing the financial statements for the year ended 31 March 2025. The financial statements are prepared in Pounds Sterling (£) and are rounded to the nearest thousand pounds (£000), unless otherwise indicated.
The financial statements present information about the Company as an individual undertaking and not about its group. The Company has not prepared group accounts as it is exempt from the requirement to do so by section 400 of the Companies Act 2006 as it is a subsidiary of Land Securities Group PLC, a Company incorporated in England and Wales whose consolidated financial statements are publicly available.
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Financial Reporting Standard 101 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions under FRS 101:
∙the requirements of IFRS 7 Financial Instruments: Disclosures
∙the requirements of paragraphs 91-99 of IFRS 13 Fair Value Measurement
∙the requirement in paragraph 38 of IAS 1 'Presentation of Financial Statements' to present comparative information in respect of:
- paragraph 79(a)(iv) of IAS 1;
- paragraph 73(e) of IAS 16 Property, Plant and Equipment;
- paragraph 118(e) of IAS 38 Intangible Assets; and
- paragraphs 76 and 79(d) of IAS 40 Investment Property.
∙the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134-136 of IAS 1 Presentation of Financial Statements
∙the requirements of IAS 7 Statement of Cash Flows
∙the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
∙the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member
∙the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d)-134(f) and 135(c)-135(e) of IAS 36 Impairment of Assets.
The equivalent disclosures relating to IFRS 7, IFRS 13 and IAS 36 are included in the consolidated financial statements of Land Securities Group PLC, in which the entity is consolidated.
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Other property, plant and equipment
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This category comprises computers, furniture, fixtures and fittings and improvements to Company offices. These 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.
The residual values and useful lives of all property, plant and equipment are reviewed, and adjusted if appropriate, at least at each financial year end.
Intangible assets comprise software used internally within the business. 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.
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Investment in subsidiary undertakings
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Investments in subsidiary undertakings are stated at cost, less any repayment of capital and provision for impairment in value (see 1.14).
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies (continued)
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Trade and other receivables
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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 Company 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 Company 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 macro-economic environment in which our customers operate.
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.
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Cash and cash equivalents
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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 fewer.
A provision is recognised in the Balance Sheet when the Company has a constructive or legal obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle the obligation. Where relevant, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Ordinary shares are classified as equity.
The directors have determined that preparing the financial statements on the going concern basis is appropriate due to the continued financial support of the ultimate parent company, Land Securities Group PLC (together with its subsidiaries referred to as the 'Group'). The directors' going concern assessment covers the period to 30 June 2027 and confirmation has been received that Land Securities PLC will support the Company until this date, so long as the Company remains a subsidiary of Land Securities PLC. If the company is sold within the period to 30 June 2027, confirmation has been received that Land Securities Group PLC would ensure the Company remains in a position to continue as a going concern at the point of sale. The Company's ability to meet its future liabilities is therefore dependent on the financial performance, position and liquidity of the Group as a whole. At the Group level, considerations included potential risks and uncertainties in the business, credit, market, property valuation and liquidity risks, including the availability and repayment profile of bank facilities, as well as forecast covenant compliance. Stress testing has been carried out to ensure the Group has sufficient cash resources to continue in operation for the period to 30 June 2027. This stress testing modelled a scenario with materially reduced levels of cash receipts over the next 12 months. based on these considerations, together with available market information and the directors' knowledge and experience of the Company, the directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2025.
Management fees are recorded as income over time in the year in which the services are rendered. Revenue is recognised over time because the benefit from the services as soon as they are rendered by the Company.
Property and contract expenditure is expensed as incurred.
The carrying amounts of the Company’s non-financial assets 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 (see below). An impairment loss is recognised in the Statement of Comprehensive Income 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.
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies (continued)
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.
Amounts owed to Group undertakings
Amounts owed to Group undertakings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, amounts owed to Group undertakings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the Statement of Comprehensive Income over the period of the loan, using the effective interest method.
Amounts due from Group undertakings
Amounts due from Group undertakings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, amounts due from Group undertakings are stated at amortised cost and, where relevant, adjusted for the time value of money. The Company assesses on a forward-looking basis, the expected credit losses associated with its amounts due from Group undertakings. A provision for impairment is made for the lifetime expected credit losses on initial recognition of the amounts due. If collection is expected in more than one year, the balance is presented within non-current assets.
In determining the expected credit losses, the Company takes into account any future expectations of likely default events based on the level of capitalisation of the counterparty, which is a fellow subsidiary undertaking of Land Securities Group PLC.
Trade and other payables with no stated interest rate and payable within one year are recorded at transaction price. Trade and other payables after one year are discounted based on the amortised cost method using the effective interest rate.
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. Re-measurement gains and losses arising from either experience differing from previous actuarial assumptions, or changes to those assumptions, are recognised immediately in other comprehensive income.
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.
Final dividend distributions to the Company’s shareholders are recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders. Interim dividends are recognised when paid.
Dividend income is recognised when the Company’s right to receive payment is established.
Page 13
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|
LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Changes in accounting policies and standards
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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. There have been no new accounting standards, amendments or interpretations during the year that have a material impact on the financial statements of the Company.
Amendments to accounting standards
A number of new standards, amendments to standards and interpretations have been issued but are not yet effective for the Company, none of which are expected to have a material impact on the financial statements of the Company.
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Significant accounting judgements and estimates
|
The Company’s material accounting policies are stated in note 1 above. Not all of these significant accounting policies require management to make difficult, subjective or complex judgements or estimates. The following is intended to provide an understanding of the policies that management consider critical because of the level of complexity, judgement or estimation involved in their application and their impact on the financial statements. These estimates involve assumptions or judgements in respect of future events. Actual results may differ from these estimates.
Estimates
(a) Amounts due from Group undertakings
The Company is required to judge when there is sufficient objective evidence to require the impairment of amounts due from Group undertakings. It does this by assessing on a forward-looking basis, the expected credit losses associated with its amounts due from Group undertakings. A provision for impairment is made for the lifetime expected credit losses on initial recognition of the amounts due. In determining the expected credit losses, the Company takes into account any future expectations of likely default events based on the level of capitalisation of the counterparty, which is a fellow subsidiary undertaking of Land Securities Group PLC.
Judgements
(a) Defined Benefit Plans
The cost of the defined benefit pension plan and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. Further detail about pension obligations are given in Note 6.
Page 14
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Management and administrative expenses
|
(a) Directors’ remuneration
The Group's directors' emoluments are borne by this Company. The directors of the Company, who are key management personnel of the Company, received no emoluments from Land Securities Properties Limited for their services to the Company (2024: £Nil).
(b) Auditor remuneration
The Group auditor’s remuneration is borne by this Company. The proportion of the remuneration which relates to the Company amounts to £113,791 (2024: £3,017). No non-audit services were provided to the Company during the year (2024: £Nil).
(c) Provision for impairment in value
An impairment reversal of £1,036,000 (2024: £1,939,000 impairment reversal) in respect of amounts due from Group undertakings has been recognised in the Statement of Comprehensive Income for the year.
(d) Loss/profit on disposal of Group undertakings
A net loss on disposal of group undertakings of £11,769,000 has been recognised (2024: net profit of £15,177,000) in respect of disposals of investments in subsidiary undertakings along with their related intercompany balances.
(e) Employee costs and average number of employees
The employee costs for the year are broken down as follows: salaries and wages are £63,576,092 (2024: £52,190,921), employer payroll costs are £9,524,662 (2024: £7,090,205) and other pension costs are £3,983,023 (2024: £3,706,874).
The average number of employees during the year were 704 (2024: 598).
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Management and administrative expenses include the following:
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Depreciation and amortisation of property, plant and equipment and intangible assets
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Other management and administrative expenses
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Page 15
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Defined contribution schemes
The charge to operating profit for the year in respect of pension costs for defined contribution schemes was £4m (2024: £4m).
Defined benefit scheme
The Pension & Assurance Scheme of the Land Securities Group of Companies (the Scheme) is a registered defined benefit final salary scheme subject to the UK regulatory framework for pensions, including the Scheme Specific Funding requirements. The Scheme is operated under trust and as such, the Trustees of the Scheme are responsible for operating the Scheme and they have a statutory responsibility to act in accordance with the Scheme’s Trust Deed and Rules, in the best interest of the beneficiaries of the Scheme and UK legislation (including trust law). The Trustees and the Group have the joint power to set the contributions that are paid to the Scheme.
In setting contributions to the Scheme, the Trustees and the Group are guided by the advice of a qualified independent actuary on the basis of triennial valuations using the projected unit credit method. The Scheme is closed to new members (and was closed to future accrual on 31 October 2019). A full actuarial valuation of the Scheme was undertaken on 30 June 2021 by the independent actuaries, Hymans Robertson LLP. This valuation was updated to 31 March 2025 using, where required, assumptions prescribed by IAS 19 Employee Benefits. The latest full actuarial valuation was performed as at 30 June 2024.
There have been no employer or employee contributions following the closure of the Scheme to future accrual on 31 October 2019. Prior to this, the employer contribution rate was 43.1% of pensionable salary to cover the costs of accruing benefits and the employee contributions were at 8% of monthly pensionable salary. It was also agreed that no further deficit contributions were required from the Group. Employee contributions were paid by salary sacrifice, and therefore appeared as Group contributions. The Group does not expect to make any employee or employer contributions to the Scheme in the year to 31 March 2026 (2025: £nil).
All death-in-service and incapacity benefits arising during employment are wholly insured. No post-retirement benefits other than pensions are made available to employees of the Group.
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Analysis of the amounts charged to the income statement
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Charge to operating profit
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Page 16
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Net pension surplus (continued)
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Analysis of amount credited to net interest income
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Interest income on plan assets
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Interest expense on defined benefit scheme liabilities
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Net credit to interest income
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Analysis of gains and losses
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Net re-measurement gains on scheme assets
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Net re-measurement (losses)/gains on scheme liabilities
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Net re-measurement loss related to authorised payments charge due on net pension surplus
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Cumulative net re-measurement loss recognised in other comprehensive income
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The net surplus recognised in respect of the defined benefit scheme can be analysed as follows:
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Proceeds from corporate bond sale
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Cash and cash equivalents
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Fair value of scheme assets
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Fair value of scheme liabilities
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Expected authorised payments charge
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Net pension surplus as per IAS 19
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In the year ended 31 March 2025, £9m (2024: £11m) of benefits were paid to members.
Page 17
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
6. Net pension surplus (continued)
In December 2022, the Scheme transacted a buy-in policy for £79m covering all remaining uninsured members. This insurance contract is valued as an asset using the same IAS 19 assumptions. Insurance contracts are annuities which are unquoted assets. All other Scheme assets have quoted prices in active markets. The Scheme assets do not include any directly owned financial instruments issued by the Group. Indirectly owned financial instruments had a fair value of £nil (2024: £nil).
In the most recent triennial valuation the defined benefit scheme liabilities were split nil% (2024: nil%) in respect of active scheme participants, 31% (2024: 31%) in respect of deferred scheme participants, and 69% (2024: 69%) in respect of retirees. As the Scheme is now closed to future accrual, there are no longer any active scheme participants. The weighted average duration of the defined benefit scheme liabilities at 31 March 2025 is 10.7 years (2024: 11.5 years).
The assumptions agreed with the Trustees of the Scheme for the triennial valuation at 30 June 2021 have been restated to the assumptions described by IAS 19 Employee Benefits. The major assumptions used in the valuation were (in nominal terms):
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Rate of increase in pensionable salaries
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Rate of increase in pensions with no cap
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Rate of increase in pensions with 5% cap
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Inflation - Retail Price Index
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Inflation - Consumer Price Index
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The mortality assumptions used in this valuation were:
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Life expectancy at age 60 for current pensioners - Men
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Life expectancy at age 60 for current pensioners - Women
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Life expectancy at age 60 for future pensioners (current age 40) - Men
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Life expectancy at age 60 for future pensioners (current age 40) - Women
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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.
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Impact on Scheme liabilities
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The above sensitivities show the impact on liabilities only and do not reflect the hedging the Scheme has in place. In December 2022, the Scheme transacted a buy-in policy for £79m covering all remaining uninsured members. As a result the Group no longer bears any longevity, interest rate or inflation risk in respect of the pension scheme. The buy-in policy is an investment asset of the Scheme.
The Company did not operate any defined contribution schemes or defined benefit schemes during the financial years ended 31 March 2025 or 31 March 2024.
On 25 July 2024, the Court of Appeal upheld the High Court’s decision in the Virgin Media Limited v NTL Pension Trustees II Limited case, ruling that historical amendments for contracted-out defined benefit schemes were invalid without a section 37 actuarial confirmation. However, the appeal did not address the form of the section 37 confirmation or the necessary actuarial remedies if these were absent. Consequently, the Trustees have not initiated a formal due diligence exercise to investigate this matter following discussions with their legal advisers. The Trustees and the Group continue to monitor developments and will assess any implications for the Scheme.
Page 18
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Interest on amounts owed to Group undertakings
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Net pension interest (Note 6)
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Interest on amounts due from Group undertakings
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The total cost recognised in the income statement was £6,231,000 in the year ended 31 March 2025 (2024: £7,507,000). 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:
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Deferred Share Bonus Plan
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Executive Share Option Scheme
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Page 19
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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.
Executive plans:
Long-Term Incentive Plan (LTIP)
The LTIP is open to Executive Directors, ELT and senior management members with awards made at the discretion of the Remuneration Committee. In addition, other than for Executive Directors, an award of ‘matching shares’ could be made where the individual acquired shares in Land Securities Group PLC and pledged to hold them for a period of three years. The awards are issued at nil consideration, subject to performance and vesting conditions being met. Awards of LTIP shares and matching shares are subject to the same performance criteria and normally vest after three years. Awards are satisfied by the transfer of existing shares held by the Employee Benefit Trust (EBT). The weighted average share price at the date of vesting was 622p (2024: 635p). The estimated fair value of awards granted during the year under the scheme was £8m (2024: £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 635p (2024: 565p). The estimated fair value of awards granted during the year under the scheme was £1m (2024: £1m).
Other plans:
Executive Share Option Scheme (ESOS)
The 2005 ESOS was previously open to managers not eligible to participate in the LTIP, but has been replaced by the Restricted Share Plan in the year ended 31 March 2020. Awards were discretionary and are granted over ordinary shares of Land Securities Group PLC 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 of shares from the EBT and lapse ten years after the date of grant. There were no awards exercised during the year (2024: None). The estimated fair value of awards granted during the year under the scheme was £nil (2024: £nil).
Sharesave Plan
Under the Sharesave Plan, Executive Directors and other eligible employees are invited to make regular monthly contributions into a Sharesave plan operated by Equiniti. On completion of the three- or five-year contract period, ordinary shares in Land Securities Group PLC 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 620p (2024: 641p). The estimated fair value of awards granted during the year under the scheme was £1m (2024: £1m).
Restricted Share Plan (RSP)
The RSP started in the year ended 31 March 2020. It is open to qualifying management level employees with awards granted as nil cost options. Awards are discretionary and are granted over ordinary shares of Land Securities Group PLC 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 631p (2024: 648p). The estimated fair value of awards granted during the year under the scheme was £3m (2024: £2m).
Share incentive Plan (SIP)
The SIP started in the year ended 31 March 2024. All employees and Executive Directors are invited to make contributions up to the annual limit set by HMRC. The contributions are invested into a trust account managed by Equiniti who purchase partnership shares at the market price on behalf of participants. Landsec grants one matching share for each partnership share purchased. Free shares can also be granted up to an annual limit. The matching and free shares vest after three years and are not subject to performance conditions. The weighted average share price at the date of exercise for awards exercised during the year was 615p (2024: none). The estimated fair value of awards granted during the year under the scheme was £1m (2024: £nil).
Page 20
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Share based payments (continued)
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The aggregate number of awards outstanding, and the weighted average exercise price, are shown below:
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Weighted average exercise price
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At the beginning of the year
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Exercisable at the end of the year
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Weighted average remaining contractual life
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*Executive plans are granted at nil consideration
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The number of share awards outstanding for the Group by range of exercise prices is shown below:
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Weighted average exercise price
2025
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Weighted average remaining contractual life
2025
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Weighted average exercise price
2024
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Weighted average remaining contractual life
2024
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Exercise price
range (pence)
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*Executive plans are granted at nil consideration.
Fair value inputs for awards with non-market performance conditions
Fair values are calculated using the Monte Carlo simulation option pricing model for awards with market performance conditions. Awards made under the Omnibus Share Plan (2024: 2015 LTIP) include a TSR condition, which is a market-based condition. The weighted average inputs into this model for the scheme are as follows:
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Deferred Share Bonus Plan
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Share price at grant date
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Page 21
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
|
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Share based payments (continued)
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Share price at grant date
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Expected volatility is determined by calculating the historical volatility of the Group’s share price over the previous ten years. The expected life used in the model has been determined based upon management’s best estimate for the effects of non-transferability, vesting/exercise restrictions and behavioural considerations. The risk-free rate is the yield at the date of the grant of an award on a gilt-edged stock with a redemption date equal to the anticipated vesting of that award.
Fair value inputs for awards with market performance conditions
Fair values are calculated using the Monte Carlo simulation option pricing model for awards with market performance conditions. Awards made under the Omnibus Share Plan (2024: 2015 LTIP) include a TSR condition, which is a market-based condition. The weighted average inputs into this model for the scheme are as follows:
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Share price at date of grant
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Expected volatility - Group
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Expected volatility - index of comparator companies
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Correlation -
Group vs. index
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Income tax on (loss)/profit for the year
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Adjustments payable in respect of prior year group relief
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Total income tax (credit)/charge in the Income Statement
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Page 22
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|
LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
9.Income tax (continued)
|
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Factors affecting tax charge for the year
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The tax for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%) as set out below:
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(Loss)/profit before tax multiplied by UK corporation tax rate
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Temporary differences (including capitalised interest)
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Adjustments in respect of prior years
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Total tax charge for the year
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Land Securities Group PLC is a Real Estate Investment Trust (REIT). As a result, Land Securities Group Companies do not pay
UK corporation tax on the profits and gains from qualifying rental business in the UK provided it meets certain conditions. Non
qualifying profits and gains of the Company continue to be subject to corporation tax as normal.
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Investment in subsidiary undertakings
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At the beginning of the financial year
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The directors believe that the carrying value of the investment is supported by the fair value of the subsidiaries.
|
The subsidiary undertakings of the Company are:
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Class of shares / units owned
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Principal country of incorporation
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Land Securities Pensions Trustee Limited
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All subsidiary undertakings are registered at 100 Victoria Street, London, SW1E 5JL.
Page 23
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|
LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Charge for the year on owned assets
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Trade and other receivables
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Total current trade receivables
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Prepayments and accrued income
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Total trade and other receivables
|
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Page 24
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Amounts due from Group undertakings
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Amounts due from Group undertakings - fellow subsidiaries
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Total amounts due from Group undertakings
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The unsecured amounts due from Group undertakings are repayable on demand with no fixed repayment date. Interest is charged at 4.95% per annum (2024: 4.9%).
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Social security and other taxes
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Amounts owed to joint ventures
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Total trade and other payables
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Amounts owed to Group undertakings
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Amounts owed to Group undertakings - fellow subsidiaries
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Total amounts owed to Group undertakings
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The unsecured amounts owed to Group undertakings are repayable on demand with no fixed repayment date. Interest is charged at 4.95% per annum (2024: 4.9%).
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Page 25
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Ordinary shares of £1.00 each
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Deferred tax on pension surplus movement
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Deferred tax is calculated at the rate substantively enacted at the balance sheet date of 25% (2024: 25%). The movement in the deferred tax liability arising on the re-measurement gain on the defined benefit pension scheme surplus is included within Other Comprehensive Income in the Statement of Comprehensive Income.
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The immediate parent company is Land Securities Property Holdings Limited.
The ultimate parent company and controlling party at 31 March 2025 was Land Securities Group PLC, which is registered in England and Wales. This is the largest parent company of the Group to consolidate these financial statements.
Consolidated financial statements for the year ended 31 March 2025 for Land Securities Group PLC can be obtained from the Company Secretary at the registered office of the ultimate parent company, 100 Victoria Street, London, SW1E 5JL and from the Group website at www.landsec.com. This is the largest and smallest Group to include these accounts in its consolidated financial statements.
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Events after the end of the reporting period
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On 26 January 2026, the Company acquired shares in U and I Director 1 Limited, U and I Director 2 Limited, U and I Company Secretaries Limited for £1 consideration.
Page 26
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LAND SECURITIES PROPERTIES LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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Impact of prior year restatement
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The results for the year ended 31 March 2024 have been restated. This arises from the incorrect allocation of intercompany loan balances between counterparties in prior periods, which resulted in the gross presentation of intercompany receivable and payable balances that did not reflect the underlying substance of the arrangements.
As a consequence, the Company’s intercompany loan balances were misstated, impacting the Balance Sheet as at 31 March 2024. There has been no impact on the profit recorded in prior years, or on the company’s net asset position in the prior years.
In accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, as adopted under FRS 101, the error has been corrected through prior period restatement.
The effect of the restatement is set out below:
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Amounts due to Group undertakings
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Balance as at 31 March as stated
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Restated balance at 31 March
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Amounts due from Group undertakings
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Balance as at 31 March as stated
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Restated balance at 31 March
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Page 27
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