Business
Results for the Year Ended 31 December 2025
Derwent London plc reported a Total Accounting Return (TAR) of 5.0% for the year ended 31 December 2025, an increase from 3.2% in 2024, with EPRA earnings per share decreasing by 7.6% to 98.4p due to higher refinancing costs, though the company forecasts 25% to 30% growth in EPRA earnings per share by 2030. The Group's property portfolio was valued at £5.1 billion, with a 1.7% increase in valuation, and the company is targeting £1 billion in disposals over the next three years to redeploy capital into accretive opportunities, while maintaining a positive outlook for sustained rental growth with a 2026 portfolio ERV guidance increase to 4% to 7%. The company also announced a 1.2% increase in its full-year dividend to 81.5p, marking the 18th consecutive year of growth. Disclaimer*
About this update from Derwent London Plc
[{"type":"text","content":"\n\n\n\n\n\nDerwent London plc (\"Derwent London\" / \"the Group\")\nRESULTS FOR THE YEAR ENDED 31 DECEMBER 2025\nImproving business momentum and positive outlook\n\n\n\n\nPaul Williams, Chief Executive of Derwent London, said:\n\"We had an active 2025, with new lettings of £11.3m signed at 10% ahead of ERV and a record year of asset management activity. 2026 has started with strong momentum. We have completed £1.5m of new leases and are under offer on £14.4m of rent, including all of the offices at Network W1, with negotiations ongoing on an additional £4.4m across the portfolio. We have also exchanged contracts on disposals totalling £33m, with a further c.£240m under offer.\nThe investment market recovery has continued into 2026, with liquidity improving, particularly for larger lot sizes, and occupational dynamics remain strong. London is the HQ capital of Europe, attracting significantly more investment than any other European city and driving demand for offices against the current shortage of new space. This supports expectations for sustained rental growth, and our portfolio ERV guidance has been increased to 4% to 7% for 2026.\nIn 2025, our Total Accounting Return (TAR) increased to 5.0%. Looking ahead, we are targeting £1bn of disposals over the next three years and expect our TAR to reach 7% to 10% per annum as we redeploy proceeds into a range of accretive opportunities. We are forecasting 25% to 30% growth in EPRA earnings per share by 2030, driven mainly by the capture of growing reversion and the leasing of our developments.\"\nKey financial highlights\n\n\n\n\n\n\n\n2025\n\n\n2024\n\n\nChange\n\n\n\n\n\n \n\n\n2025\n\n\n2024\n\n\n\n\nIncome statement\n\n\n\n\n\n\n\n\n\n\n\n\n\n\nLeverage\n\n\n\n\n\n\n\n\n\n\nGross rental income\n\n\n£218.3m\n\n\n£214.8m\n\n\n1.6%\n\n\n\n\n\nEPRA LTV\n\n\n29.4%\n\n\n29.9%\n\n\n\n\nEPRA EPS1\n\n\n98.4p\n\n\n106.5p\n\n\n(7.6)%\n\n\n\n\n\nNet debt/EBITDA\n\n\n9.0x\n\n\n9.3x\n\n\n\n\nDividend\n\n\n81.5p\n\n\n80.5p\n\n\n1.2%\n\n\n\n\n\nInterest cover\n\n\n3.1x\n\n\n3.9x\n\n\n\n\nIFRS result before tax\n\n\n£161.5m\n\n\n£116.0m\n\n\n39.2%\n\n\n\n\n\nCash and undrawn debt\n\n\n£627m\n\n\n£487m\n\n\n\n\nBalance sheet\n\n\nDec-25\n\n\nDec-24\n\n\n\n\n\n\n\n\nValuation\n\n\n\n\n\n\n\n\n\n\nEPRA NTA per share1\n\n\n3,225p\n\n\n3,149p\n\n\n2.4%\n\n\n\n\n\nValuation movement\n\n\n1.7%\n\n\...