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Interim Results

Derwent London hikes divi after strong H1

10 August 2017 08:12

Derwent London's EPRA net asset value per share increased 0.9% to 3,582p at the end of June - up from 3,551p at 31 December.

The group said the total return was 3.4% including the 2016 final and special dividends totalling 90.5p per share.

Net rental income increased 9.2% to £79.3m from £72.6m in H1 2016.

EPRA earnings rose 22.5% to £50.6m from £41.3m and EPRA earnings per share increased 22.3% to 45.42p per share from 37.13p.

The group declared an interim dividend per share of 17.33p - up 25%.

Chairman Robbie Rayne said: "Derwent London's strong recurring earnings growth underpins today's 25% increase in the interim dividend. In addition, with almost £500m of disposals or forward sales above book values already this year, the Group has further strengthened its financial position."

Chief executive John Burns added: "We have achieved a record £23.4m of new lettings in the first half. Following this success, we have marginally raised market guidance for both rents and yields in 2017.

"Despite continuing political uncertainty, we have made strong progress in capturing reversion and de-risking the pipeline which highlights the appeal of our product.

"This has given us the confidence to advance with our next major development at Soho Place W1, above Tottenham Court Road Elizabeth Line station."

Separately, Derwent London announced that it had pre-let the lower ground floors and a new office pavilion at The White Chapel Building, 10 Whitechapel High Street E1, to Fotografiska.

Fotografiska runs the world renowned photography museum in Stockholm and will use the space for Fotografiska - The London Museum of Photography.

This is its first gallery outside Stockholm and will add another important cultural and leisure hub to the fast improving Whitechapel area. Derwent London said the initial rent was £2.4m per annum or £27 per sq ft.

It said Fotografiska would occupy the whole of Phase 2 comprising 89,000 sq ft on a 15-year lease with five-year rent reviews based on annual RPI increases with a cap and floor, and with a break in year 12.

The rent free period was equivalent to 30 months on a 12-year lease, rising to 36 months on a 15-year term.

Completion of Phase 2 was expected in H2 2018.

At 8:12am: (LON:DLN) Derwent London share price was -15.5p at 2786.5p

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