Business
Half-Year Results
Half-Year Results.
About this update from Derwent London Plc
[{"type":"text","content":"\n\n \n8 August 2024\nDerwent London plc (\"Derwent London\" / \"the Group\")\nUNAUDITED RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2024\nUPGRADING RENTAL GUIDANCE IN A STRENGTHENING MARKET\nPaul Williams, Chief Executive of Derwent London, said:\n\"The pace of rental growth accelerated in H1 for the best offices in the right locations whilst investment yields have recently stabilised, helping drive greater confidence across the sector.\nWe have delivered another strong leasing performance, agreeing £8.8m of new rent in H1 with open-market lettings more than 10% above the December 2023 ERV, including the third pre-let at 25 Baker Street W1. YTD lettings total £10.8m, with a further £3.4m under offer. This more positive backdrop fed through into the strongest ERV growth since 2016, giving us confidence to upgrade our 2024 rental guidance to '3% to 6%'.\nLondon is a world-class city with broad appeal to both international and domestic businesses. Our design-led and amenity-rich best in class offices are in demand, supported by London's high quality transport network. Supply of space that meets occupier needs is relatively low. Our predominantly West End portfolio is well-placed to benefit, in particular our on-site projects in Marylebone and Fitzrovia.\nIn February 2024, we said we were nearing this cycle's valuation low point. The outlook has continued to improve, supported by a strengthening of the UK economic environment and an initial interest rate cut, with yields on London offices looking increasingly attractive to a range of investors.\nWith our strong balance sheet and 40-year track record, we have the capacity and ambition to accelerate our growth plans and are exploring a number of opportunities while also continuing to build out our substantial pipeline. Combined with rising rents, we expect to deliver increasingly attractive total returns over the coming years.\"\n\n\n\n\nIncome statement\n\n\nH1 2024\n\n\nH1 2023\n\n\nChange\n\n\n\n\n\nLeverage\n\n\nJun-24\n\n\nDec-23\n\n\n\n\nGross rental income\n\n\n£107.5m\n\n\n£105.9m\n\n\n1.5%\n\n\n\n\n\nEPRA LTV\n\n\n29.0%\n\n\n27.9%\n\n\n\n\nEPRA EPS\n\n\n52.7p\n\n\n49.5p\n\n\n6.5%\n\n\n\n\n\nInterest cover\n\n\n4.0x\n\n\n4.1x\n\n\n\n\nDividend\n\n\n25.0p\n\n\n24.5p\n\n\n2.0%\n\n\n\n\n\nNet debt/EBITDA\n\n\n8.4x\n\n\n8.8x\n\n\n\n\nIFRS loss before tax\n\n\n£(27.2)m\n\n\n£(14...