Business
Trading Statement
Derwent London plc reported strong first-quarter leasing activity, securing £25.3 million in leases with open-market lettings 5.2% above ERV, and pre-letting its Network W1 development at rents 22% above appraisal. The company has exchanged contracts on £278 million of property disposals, progressing towards its £1 billion three-year target, and has committed to the £50 million share buyback programme. Net debt remained stable at £1.46 billion with an EPRA LTV of 29.4%, and the company's near and medium-term earnings guidance is unchanged. Disclaimer*
About this update from Derwent London Plc
[{"type":"text","content":"\n\n\n\n\n\nDerwent London plc (\"Derwent London\" / \"the Group\")\nFIRST QUARTER BUSINESS UPDATE\nStrong leasing and capital recycling; launch of £50m share buyback\n\n\n\n\nPaul Williams, Chief Executive of Derwent London, said:\n\"We have seen strong activity across the business driven by significant leasing, including the pre-letting of Network at rents well ahead of appraisal. Good progress has been made on disposals, with contracts exchanged on £278m of properties in line with our three-year target of £1bn and we are actively engaged in further sales.\nThis has enabled us to commit to the redevelopment of 50 Baker Street as planned, where we are seeing very strong rental growth which will further enhance profitability and future earnings, as we continue to selectively invest where we see attractive risk-adjusted returns. Aligned with our disciplined approach to capital allocation, we are also announcing a £50m share buyback programme which we intend to commence on 18 May.\nOur near and medium-term earnings guidance is unchanged and we remain focused on driving income growth and returns.\"\nKey highlights\n· £25.3m of leasing YTD, with open-market lettings 5.2% above ERV; further £6.7m under offer\n· Network W1 offices pre-let 5% above December 2025 ERV and 22% above appraisal ERV\n· Network W1 achieved practical completion on 5 May 2026\n· £278m of disposals exchanged YTD; actively engaged in further potential sales\n· Commitment to redevelopment of 50 Baker Street W1 (236,000 sq ft); targeting >12% ungeared IRR\n· £50m share buyback programme announced\n· Nominations Committee is at an advanced stage of the CEO search process\n \nLeasing activity\nLeasing activity this year has been strong with £25.3m completed to date. This comprises £20.0m of new leases, with open market transactions 5.2% ahead of December 2025 ERV, and £5.3m of renewals/regears. A further £6.7m is under offer.\nAt Network W1, we have pre-let all of the office space to Databricks for £14.1m at an average rent of £103 psf (£125 psf on best), 5% above December 2025 ERV and 22% above our original underwriting, with the two retail units also ...