Derwent London PLC REIT

DLN

Equity

ISIN GB0002652740 / Valor 381696

LSE London Stock Exchange, SETS (2026-02-19)

GBP 17.74-1.17%

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

Financial snapshot

Gross rental income £109.1m (+1.5% vs H1 2024); net rental income £94.0m. EPRA EPS 52.2p (H1 2024: 52.7p); EPRA NTA 3,187p (Dec 2024: 3,149p). IFRS profit before tax £94.0m (H1 2024: loss £27.2m). Total accounting return 3.0% (TAR) and total property return c.3.1% in H1.

Leasing and occupancy

£13.8m of leasing, renewals and regears completed YTD; open‑market lettings averaged 10.5% ahead of December 2024 ERV. EPRA vacancy low at 3.7%; retention/re-let rate ~78%. Notable letting: Adobe expanded at White Collar Factory, extending to 2038 and adding space.

Valuation and reversion

Investment portfolio valued at £5.2bn (June 2025) — underlying valuation up 1.2% in H1. EPRA rental values +2.0%; true equivalent yield tightened 4bp to 5.69%. Portfolio ERV £323.2m vs passing rent £208.9m, implying £114.3m of potential reversion.

Balance sheet and liquidity

Net debt £1.55bn; EPRA LTV 30.5% (Dec 2024: 29.9%); cash and undrawn facilities £604m. Active refinancing: new £250m 7‑year unsecured bonds, new £115m unsecured facility with HSBC, extension of main £450m RCF to 2029; repayment of £175m convertible bonds in June. Weighted average cash interest ~4.08%; interest cover 3.2x.

Dividends and guidance

Interim dividend raised to 25.5p (up 2%) payable 10 Oct 2025 and covered by EPRA earnings. Management reiterates 2025 ERV guidance of +3% to +6% and describes the TAR outlook as the strongest in several years.

Development pipeline

On‑site projects nearing completion: 25 Baker Street and Network (practical completion / H2 2025 expected); Holden House W1 started on site (H2 2025 start) with later completion. Combined on‑site pipeline expected to deliver ~15% profit on cost and c.6.6% yield on completion. Further projects (50 Baker Street, Greencoat & Gordon House, others) slated to start 2026–2027.

Asset recycling and disposals

£35m of sales completed in H1 and c.£180m of disposals contracted to complete in H2 2025. Total disposals completed or contracted in 2025 expected to exceed £200m, with proceeds targeted to fund higher‑return developments.

Sustainability progress

Energy intensity down a further 8% in H1 to 67 kWh/sqm; total energy consumption down 9%. Scottish 18.4MW solar park construction underway with generation expected H1 2026. 70% of portfolio EPC A/B.

Risks and near‑term headwinds

Finance costs rose (finance costs £22.8m H1 2025 vs £19.8m H1 2024) due to higher average borrowings and rates; EPRA earnings slightly down. Management notes short‑term earnings impact from securing vacant possession ahead of developments, but expects stronger medium‑term returns as projects complete and rents continue to recover.

Summarized from source with an LLMView Source

Key figures

-7.51%1Y

-32.1%3Y

-43.9%5Y

Performance

23.9%1Y

26.8%3Y

26.0%5Y

Volatility