Derwent London PLC REIT

DLN

Equity

ISIN GB0002652740 / Valor 381696

LSE London Stock Exchange, SETS (2026-10-02)

GBP 17.78+0.62%

Derwent London PLC REIT
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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 & NAV

EPRA earnings increased 6.5% to £59.2m (52.7p per share). EPRA NTA per share was 3,044p at 30 June 2024, down 2.7% on 31 Dec 2023. IFRS loss before tax narrowed to £27.2m (H1 2023: £143.1m) due to a much smaller revaluation deficit.

Rent and leasing

H1 lettings totalled £8.8m (average 7.8% above Dec‑2023 ERV; 10.3% excluding short‑term development lettings). YTD lettings were £10.8m with a further £3.4m under offer. Key transaction: 25 Baker Street offices now 84% pre‑let at headline c.£103 psf (c.14.6% above appraisal ERV).

Guidance & outlook

ERV guidance for 2024 upgraded to +3% to +6%. Management expects rental growth and stabilising yields to drive recovery in capital values and attractive total returns over coming years.

Valuation and yields

Portfolio valuation fell 1.7% in H1; equivalent yield moved out to 5.73% (18bp outward). Development values were up 4.3% and the Group outperformed the MSCI Central London Office index in H1.

Balance sheet & liquidity

Net debt ~£1.37bn; EPRA LTV 29.0% (31 Dec 2023: 27.9%). Cash and undrawn facilities £566m (up from £480m). Interest cover ~4.0x; weighted average cash interest ~3.15%; 98% of debt fixed or hedged.

Developments & pipeline

On‑site major projects total 437,000 sq ft (25 Baker Street & Network W1) and are 52% pre‑let/sold. Combined expected yield on cost ~6.0% and ~14% development profit; total on‑site/next‑phase pipeline ~0.9m sq ft, medium/longer term pipeline >1.3m sq ft.

Occupancy & portfolio metrics

EPRA vacancy rate reduced to 3.2% (Dec 2023: 4.0%); tenant retention/re‑letting rate 86%; contracted annualised cash rent £199.4m with £111.7m potential reversion vs ERV £311.1m.

Dividends

Interim dividend increased 2.0% to 25.0p per share (paid 11 Oct 2024; record 6 Sept 2024). Board says dividend remains well covered by EPRA earnings.

Sustainability & other items

70% of the portfolio rated EPC A/B. Energy intensity improved (73 kWh/sq m, down 8% y/y). Planning resolution received 6 Aug 2024 for c.240,000 sq ft 50 Baker Street; Scottish solar park site works underway.

Summarized from source with an LLMView Source

Key figures

2.18%1Y

-5.88%3Y

-48.3%5Y

Performance

25.0%1Y

26.2%3Y

26.9%5Y

Volatility