Derwent London PLC REIT

DLN

Equity

ISIN GB0002652740 / Valor 381696

LSE London Stock Exchange, SETS (2024-12-23)

GBP 19.70-0.10%

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

Strong Operational Performance

In 2023, Derwent London PLC REIT reported a robust year in leasing activities, securing £28.4 million in new rents, which was on average 8.0% above the estimated rental value (ERV) as of December 2022. Notable transactions included significant pre-lets at 25 Baker Street W1, contributing to a promising outlook for their development pipeline.

Financial Stability

Despite a challenging economic environment, Derwent London PLC REIT maintained financial stability with a low loan-to-value (LTV) ratio, which stood at 27.9%. The company's interest cover ratio was also strong at 4.1 times, demonstrating a robust capacity to meet financial obligations and continue strategic investments.

Dividend Growth

Derwent London PLC REIT announced a 1.3% increase in its full-year dividend for 2023, raising it to 79.5p per share. This increment underscores the company's commitment to delivering shareholder value and confidence in its financial health, with dividends well-covered by EPRA earnings.

Market Outlook and Guidance

For 2024, Derwent London PLC REIT anticipates an increase in ERVs by 2% to 5%. The company expects inflation to decrease further, which should positively influence yield responses. This outlook is supported by a strong leasing pipeline and strategic focus on high-quality, sustainable properties in desirable locations.

Property Valuations and Market Position

Despite a 10.6% decline in capital values in 2023, Derwent London PLC REIT's focus on high-quality assets allowed it to outperform broader market indices. The company's strategic adjustments made in 2021 to retain better-performing buildings longer have begun to show resilience in property valuations amidst market volatility.

Summarized from source with an LLMView Source

Key figures

-17.4%1Y

-41.3%3Y

-49.3%5Y

Performance

28.3%1Y

28.5%3Y

30.6%5Y

Volatility