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Prices & Quotes - UK Markets - Derwent London (DLN)

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Share Price:
Down 3,360.00p
Change Today:
-15.00p
Market Cap:
3,768.59m
Sector:
Real Estate Investment Trusts

Derwent London earnings fall in 'unprecedented' year

By Josh White

Date: Thursday 11 Mar 2021

LONDON (ShareCast) - (Sharecast News) - Derwent London reported a negative total return of -1.8% in its full-year results on Thursday, swinging from a positive 6.6% in 2019, as its EPRA net tangible assets fell 3.7% to 3,812p per share.
The FTSE 250 property investment and development company said its gross rental income grew 5.8% year-on-year in 2020 to 202.9m, while its net rental income slipped 2.1% to 174.3m after 14.2m in impairment and write-offs.

Rent collection for the year ended 31 December now stood at 92%, with a further 5% under agreed payment plans and 3% granted rent-free periods.

EPRA earnings for the year totalled 111.0m, or 99.2p per share, falling 3.8% from 103.1p in 2019, as the board proposed a 1.9% hike in the final dividend to 52.45p per share.

That would result in a 2.8% improvement in the total full-year dividend, to 74.45p per share.

During the year, Derwent arranged or extended two debt facilities totalling 550m, with the company reporting interest cover of 446% and a loan-to-value ratio of 18.4% at year-end.

Undrawn facilities and cash stood at 476m, falling from 511m at the end of 2019.

Looking at its portfolio, Derwent reported a total property return of 0.3% for 2020, compared to its benchmark index of -2.4%, as its EPRA vacancy rate rose to 1.8% at year-end from 0.8% a year earlier.

It said 2021 lease expiries reduced from 26% of passing rent to 17% at year-end, and was now at 13%, of which 5% related to future projects.

The company completed 80 Charlotte Street, W1 in June, its first net zero carbon development, and currently had 410,000 square feet under construction, with 61% of that pre-let.

It had also committed to the 297,000 square foot redevelopment at 19-35 Baker Street, W1, planning to be on site in the second half of 2021.

A total of 153m of property disposals was completed in 2020, with the portfolio value at year end falling by an underlying 3% year-on-year to 5.4bn, while its underlying valuation uplift on developments came in at 5.3%.

Derwent said its true equivalent yield tightened by three basis points over the year to 4.74%, while its estimated recovery value decreased by 2.8% over the year.

Looking ahead, Derwent said its "differentiated product" was "well-placed" to outperform as lockdowns eased, with its guidance for 2021 to see average estimated recovery values on its portfolio to move 0% to -5%.

IAverage investment yields on its portfolio, meanwhile, were expected to remain firm.

"It has been an unprecedented year for London and its communities, with many businesses recognising the importance of a return to the office for combined learning, creativity and productivity," said chief executive officer Paul Williams.

"Recent events have accelerated changes required by our occupiers with a growing emphasis on wellbeing and environmental performance.

"With our innovative brand of well-designed, adaptable offices and our continued focus on responding to climate change, I believe Derwent London is well positioned to meet the changes in the modern workplace."

At 0845 GMT, shares in Derwent London were down 0.91% at 3,280p.

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

 

Derwent London Market Data

Currency UK Pounds
Price 3,360.00p
Change Today -15.00p
52 Week High 3,518.00p
52 Week Low 2,360.00p
Volume 199,626
Shares Issued 112.16m
Market Cap 3,768.59m
Beta 0.03

Performance Indicators

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What The Brokers Say

Strong Buy 8
Buy 1
Neutral 7
Sell 0
Strong Sell 2
Total 18
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Derwent London Dividends

  Latest Previous
  Final Interim
Ex-Div 29-Apr-21 10-Sep-20
Paid 04-Jun-21 16-Oct-20
Amount 52.45p 22.00p

Trades for 13-May-2021

Time Volume / Share Price
16:35 95,491 @ 3,360.00p
16:29 130 @ 3,353.00p
16:29 24 @ 3,353.00p
16:29 19 @ 3,353.00p
16:29 215 @ 3,355.00p

Derwent London Key Personnel

Chair John David Burns
CEO Paul M. Williams
CFO Damian Wisniewski