Derwent London PLC REIT

DLN

Equity

ISIN GB0002652740 / Valor 381696

LSE London Stock Exchange, SETS (2026-07-31)

GBP 21.04-0.57%

Derwent London PLC REIT
UMushroom community rating:

0.00 0 votes No rating yet

NegativeNeutralPositive

About company

Derwent London PLC REIT owns and manages a significant investment portfolio of 5.4 million sq ft, primarily located in central London with a focus on the West End and the Tech Belt areas bordering the City of London. The company, listed on the London Stock Exchange and a member of the FTSE 250, seeks out income-producing properties with potential for future improvement. With a strong balance sheet, Derwent London has the financial capacity to acquire and regenerate properties, as well as selectively recycle properties to fund future projects. The company has received various awards for its commercial workplaces and commitment to equality, diversity, and inclusion. Additionally, Derwent London is dedicated to mitigating climate change, aiming to become a net zero carbon business by 2030 and has taken significant steps towards this goal, including signing a Revolving Credit Facility with a 'green' tranche and joining the 'RE100' initiative for 100% renewable power.

Summarized from source with an LLMView SourceSector: Finance

Earnings

EPRA EPS 98.4p (2024: 106.5p) — reduced mainly by higher interest costs after mid‑year refinancing; adjusted EPRA EPS including £4.2m trading profit = 102.1p. IFRS profit before tax £161.5m (up 39%). Net finance cost increased to £48.4m; interest cover 3.1x (2024: 3.9x).

Balance sheet & liquidity

EPRA NTA 3,225p (up 2.4%); EPRA LTV 29.4% (29.9%). Net debt £1,450m; cash and undrawn facilities £627m. Net debt/EBITDA 9.0x (down from 9.3x).

Portfolio & valuation

Portfolio valuation up 1.7% in 2025 to c.£5.09bn; total property return 5.5% (outperforming MSCI Central London Offices). ERV growth 4.0% in 2025; guidance raised to 4%–7% for 2026. EPRA vacancy 4.1%.

Operational activity

£11.3m of new lettings in 2025 (c.10% ahead of ERV); record asset‑management activity £58.9m (6.4% average rent uplift). YTD 2026: £1.5m new leases completed, £14.4m under offer and a further £4.4m in negotiations.

Disposals & capital allocation

Disposals of £216.1m in 2025 (including trading sales); £33m exchanged YTD 2026 with c.£240m under offer. Targeting £1bn of disposals over the next three years to fund development capex (~£500m) and other redeployments (c.£250m) including possible buybacks.

Developments & pipeline

25 Baker Street W1 completed and offices fully pre‑let; Network W1 nearing completion with office space under offer. On‑site and planned projects include Holden House, Middlesex House, Greencoat & Gordon House and 50 Baker Street — management forecasts >10% ungeared IRRs on several schemes.

Dividend & outlook

Full‑year dividend 81.5p (up 1.2%); final dividend proposed 56.0p. Near‑term EPRA earnings expected to dip until Network income begins, with H2 2026 recovery and management forecasting 25%–30% EPRA EPS growth by 2030 and TAR 7%–10% p.a. over coming years.

Summarized from source with an LLMView Source

Key figures

9.02%1Y

-0.57%3Y

-42.1%5Y

Performance

25.3%1Y

27.2%3Y

26.8%5Y

Volatility