Securities Group (LSE: Land) is an income arrow with a good record to develop its profits. For the year ending March 31, 2025 (fiscal year 25), compensation of 40.4PA has announced 49.6 % higher than FY21.

But during this period, the price of its share decreased by 21 %. This helped to raise his return to 7.4 %, which puts it in the first six places FTSE 100 Profit motivation (on September 17).

However, the share price of the decrease can be a sign that investors feel an exaggerated stock price. Others may question the sustainability of its profits.

Let's take a closer look to see if none of these fears are justified.

Special status

The first thing to notice is that the stocks are a real estate investment fund. To take advantage of some tax advantages, Reit must pay at least 90 % of tax -exempt rental revenue for shareholders by profits every year.

But this does not give any insightful look its potential profit. After all, 90 % of Nil is not worth anything. However, in my opinion, I think the group will be able to develop its profits (and its distributions) in the coming years.

Please note that the tax transaction depends on the individual conditions of each customer and may be subject to change in the future. The content in this article is provided for information purposes only. It is not intended to be, nor form any form of tax advice.

Various wallet

Many of my optimism comes from the fact that it has many prominent properties including a new change and Liverpool. Its three main sections are offices and shops in central London, shopping centers outside the capital and multi -use residential developments. The value of this portfolio is 6.7 billion pounds, 2.6 billion pounds and 0.8 billion pounds, respectively.

As an additional evidence of the quality of its wallet, when the group reunifice or renewed the rent, it is able to obtain an average rental of 8 %. Also, its contracts state the index -related increases. During the fiscal year 25, the net lease revenue was similar to 5 % of the fiscal year 24.

Despite this, the group looks less than its value.

On March 31, 2025, it had a value of 6.53 billion pounds. Currently, the market market cost is 4.13 billion pounds. This means 36.8 % discount.

Analysts seem to agree that the company's shares seem cheap. They have the average target price for 12 months of 702.5 pixels. This is approximately 29 % higher than today's share price.

Final ideas

However, the group remains vulnerable to the highest interest rate environment in which we find ourselves. The cost of higher capital makes it the most expensive price borrowing the money needed to buy more real estate and growth. It presses the income of the tenants, which may mean that they are looking for cheaper places, or in extreme cases, starting.

In addition, the commercial real estate sector can be sensitive to economic shrinkage.

Although the British economy seems fragile, the quality of real estate owned by Securities Land Securities will give it some protection in the event of a deterioration of the situation. To maintain some of the main space, it seeks to maintain the loan ratio to the value in “”Mid -thirties“.

Although the profit distributions are not guaranteed, I see sufficient evidence – at least in the short term – indicates that this is in a good financial state and is able to support growth in its payment. I think that the decrease in the price of the group's share may reflect fears about the British economy – and the commercial real estate market in general – rather than anything specific to securities. On this basis, I think the arrow is worth looking.