Derwent London PLC
F:DVK
Decide at what price you'd be comfortable buying and we'll help you stay ready.
|
D
|
Derwent London PLC
F:DVK
|
UK |
|
RMB Holdings Ltd
OTC:RMBHF
|
ZA |
|
R
|
Runway Growth Finance Corp
NASDAQ:RWAY
|
US |
Derwent London PLC
Derwent London PLC is a London property company that owns, develops, and manages office buildings, mainly in central London. It buys older buildings, refurbishes them, and creates modern workspaces that it can lease to businesses. Its portfolio also includes some retail and mixed-use space, but offices are the core of the business. The company makes money mainly from rent paid by office tenants and from profits when it develops or redevelops buildings. Its customers are businesses that want well-located London offices, especially companies that value good design, flexible space, and strong transport links. Derwent also earns value by improving properties over time and recycling capital into new projects. What makes Derwent London different is that it is not just a landlord collecting rent. It is especially active in shaping buildings and neighbourhoods through redevelopment, so it sits between property ownership and real estate development. That gives it a business model tied to both the steady income of leased office space and the added value created when it transforms older properties into higher-quality assets.
Derwent London PLC is a London property company that owns, develops, and manages office buildings, mainly in central London. It buys older buildings, refurbishes them, and creates modern workspaces that it can lease to businesses. Its portfolio also includes some retail and mixed-use space, but offices are the core of the business.
The company makes money mainly from rent paid by office tenants and from profits when it develops or redevelops buildings. Its customers are businesses that want well-located London offices, especially companies that value good design, flexible space, and strong transport links. Derwent also earns value by improving properties over time and recycling capital into new projects.
What makes Derwent London different is that it is not just a landlord collecting rent. It is especially active in shaping buildings and neighbourhoods through redevelopment, so it sits between property ownership and real estate development. That gives it a business model tied to both the steady income of leased office space and the added value created when it transforms older properties into higher-quality assets.
Operational strength: Derwent said leasing and asset management were strong, with over GBP 30 million of transactions since the start of the year and new leases signed more than 5% above ERV.
Guidance raised: First-half EPRA earnings came in slightly ahead of guidance, and management upgraded full-year 2026 earnings guidance while reiterating the longer-term outlook through 2030.
Rental backdrop: London office demand remained very strong, vacancy stayed low, and management said rental growth is now expected across all London submarkets.
Development wins: Network completed in Q2 with offices fully pre-let and an ungeared IRR of around 11%, while 50 Baker Street was committed in Q2 and is expected to deliver an ungeared IRR in excess of 12%.
Capital allocation: The company completed or contracted about GBP 280 million of disposals, launched a GBP 50 million buyback, and said further buybacks will only be considered if surplus capital remains after other opportunities.
Old Street: A GBP 45.8 million provision was booked against Old Street Quarter, and management said the final outcome will depend on planning and whether they choose to develop, derisk, or sell options.
Balance sheet: Debt metrics improved, cash and undrawn facilities rose to GBP 581 million on a pro forma basis after a new revolving credit facility, and the average interest rate in H1 fell to 3.9%.