- Derwent London
- 12 August 2025 08:00:12
Source: Sharecast
Derwent London said demand for its high-quality office spaces in central London had remained well above the long-term average, with supply constraints supporting pricing power.
Gross rental income ticked up 1.5% year-on-year to £109.1m, while net rental income dipped 1.1% to £94.0m. EPRA earnings per share slipped 0.9% to 52.2p, though IFRS pre-tax profits rebounded to £94.0m from a £27.2m loss a year earlier.
Net debt rose 4.7% to £1.55bn, with EPRA loan-to-value increasing to 30.5% from 29.9%, while interest cover fell to 3.2x from 3.9x, and net debt to EBITDA climbed to 9.7x.
However, the group reported £604m in cash and undrawn facilities, up from £487m at year-end, and lifted its interim dividend by 2.0% to 25.5p.
Open-market lettings were agreed 10.5% ahead of estimated rental values, with £13.8m of leasing, renewals, and regears completed year-to-date. Underlying capital growth turned positive at 1.2%, while total return improved to 3.0% from -1.0%.
Looking forward, Derwent London reiterated rental growth guidance of 3–6% for FY25 and confirmed over £200m of disposals had been completed or contracted, with proceeds earmarked for developments including Holden House and 50 Baker Street.
Reporting by Iain Gilbert at Sharecast.com