Derwent London Plc · LSE:DLN
Derwent London — H1 2026 Earnings Presentation
68 slides from Derwent London's earnings presentation, Aug 6, 2026
Slide 1: Interim Results
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Slide 2: Contents
Contents Presenters Contents Paul Williams Introduction & overview 01 Damian Wisniewski Financial review 04 Emily Prideaux Market update 19 Development 30 Outlook 39 Appendices 41 Executive Committee & senior management 65 Disclaimer 66 Derwent London – Interim Results 2026
Slide 3: Introduction & overview
Introduction & overview Paul Williams 1
Slide 4: Key business highlights
Key business highlights Ongoing strong leasing performance • £30.4m of leasing and asset management across all villages • New lettings ahead of ERV • Renewals/regears extending income • Further £5.3m of rent currently under offer; EPRA vacancy 4.4% Delivering value through West End development • Com
Slide 5: Executing against capital allocation plan
Executing against capital allocation plan Disposals £279m completed/ • £1bn over next three years exchanged YTD • Mature/lower returning assets >£100m under offer/ • Consider creation of co-investment vehicles on market Disciplined redeployment Balance sheet Development Acquisitions Shareholder 56.0
Slide 6: Financial review
Financial review Damian Wisniewski 4
Slide 7: Key financial messages
Key financial messages Delivering against the strategic targets set out in February • Disposals of £279m completed or exchanged • £50m share buyback programme commenced in May • LTV and net debt/EBITDA ratios reduced over six months • H1 EPRA earnings slightly ahead of guidance • Upgrading 2026 earn
Slide 8: Financial highlights
Financial highlights EPRA NTA per share1 EPRA earnings per share2 Cash and undrawn facilities3 3,157p 48.7p £481m4 Jun 2025: 3,187p H1 2025: 52.2p Jun 2025: £636m Dec 2025: 3,225p -6.7% Dec 2025: £652m Gross rental income Net rental income Net debt/EBITDA £106.9m £92.9m 8.6x H1 2025: £109.1m 2025: £
Slide 9: EPRA NTA movement
EPRA NTA movement Pence per share 3,500 Slide 13 49 Slide 10 (56) Slide 11 Slide 15 3,250 3,225 (6) (3) 7 -2.1% (18) (41) 3,157 Developments1 £44.0m 39p 3,000 Investment properties (£63.0m) (56p) 25 Savile Row W1 (HQ) (£1.6m) (1p) Total (£20.6m) (18p) 2,750 31 Dec EPRA Dividends Loss Other Revaluati
Slide 10: Total accounting return
Total accounting return • Reported TAR of -0.4% impacted by: • Share buyback • Yield shift • Old Street Quarter provision • Before these three items, TAR would have been +3.7% % 5 0.2 4 1.2 3 1.0 2 +3.7% 1.5 (3.0) 1 (1.3) (0.4)% 0 (1) EPRA Capital Development Share Yield Old Street earnings growth r
Slide 11: Valuation drivers
Valuation drivers ERV growth offset by yield shift Rental value growth % 6 Investment portfolio £5.0bn 4 • Underlying ERV growth 2.6% • Strongest six-monthly growth since 2016 2 • Positive new lettings, renewals and rent reviews • West End 3.2%, City Borders 1.4% 0 • Equivalent yield up 6bp overall
Slide 12: Portfolio valuation themes
Portfolio valuation themes Valuation performance by category • Development valuations outperforming Valuation movement (%) • Network W1 increase on pre-let/completion 15 • Balance of portfolio decreased 1.3% 10 10.3 • West End (-0.9%) outperformed City Borders (-2.6%) • <£1,000 psf – shortening leas
Slide 13: Old Street Quarter
Old Street Quarter May 2022 agreed to acquire site for £239m • Completion expected late-2027 • Subject to externally appraised valuations from acquisition • Market values have fallen since May 2022 £45.8m provision1 recognised at 30 Jun 2026 • Equivalent to 1.3% reduction in TAR • To be reassessed e
Slide 14: Gross rental income
Gross rental income Like-for-like vs H1 2025 £m 140 Francis House SW1 (£1.2m) Other £0.1m Gross rental Total (£1.1m) income 120 2.1 10.4 109.1 (13.6) (1.1) 106.9 1.0% 100 25 Baker Street W1 £8.6m Other £1.8m Total £10.4m Net rental 80 Network W1 £1.3m Development and refurbishment properties (£8.4m)
Slide 15: EPRA earnings
EPRA earnings • Actions taken to reduce staff costs by £1.4m on an annualised basis • Net finance costs impacted by: • Weighted average interest rate up c.30bp to 3.9% in H1 2026 • Convertible bonds at 2.3% IFRS rate repaid in June 2025 • Capitalised interest of £6.1m, £2.3m lower than H1 2025 £m 70
Slide 16: Earnings outlook for 2026 upgraded
Earnings outlook for 2026 upgraded Current year EPS guidance upgraded to ‘0% to -3%’ from ‘-3% to -5%’ • Lower admin costs expected • Capitalised interest c.£2m below 2025 • H2 total earnings broadly in line with H1 • Share buyback helps H2 EPS Growth compared to 2025 25% to 30% 5% to 10% 0% to -3%
Slide 17: Capital allocation
Capital allocation Project expenditure £m • H1 2026 spend of £60m 200 Share buyback • Accelerating from H2 as projects progress Capitalised interest/overhead • Full year projection of £145m for 2026 in line with 180 Other¹ 50 Old Street Quarter EC1 previous forecast 160 50 Baker Street W1 156 • Inve
Slide 18: Build-up of portfolio ERV (net effective basis)
Build-up of portfolio ERV (net effective basis) Annualised accounting rent (£m) 300 16.3 292.1 Potential portfolio 10.8 reversion 11.3 250 44.9 £83.3m 40% uplift 208.8 200 Capex required for Reversion: £83.3m major projects1 150 £417m 100 Jun 2026 Major Vacant Vacant Reviews ERV rent projects¹ (refu
Slide 19: Refinancing activity
Refinancing activity Highlights • Repaid £230m of fixed rate debt in H1, with weighted average interest rate of 5.6% • Replaced with bank debt at c.4.9% • No debt maturities until November 2027 2026 activity • Jan 2026 – £82.5m term loan maturity extended by one year to 2028 • Feb 2026 – £55m privat
Slide 20: Debt summary
Debt summary Proforma maturity profile of debt facilities3 Cash and undrawn EPRA loan-to-value £m facilities1 (LTV) ratio 600 Fixed rate bonds & USPPs Drawn bank loans 100 £481m2 28.8% 500 Headroom 475 345 Jun 2025: £636m Jun 2025: 30.5% 400 Dec 2025: £652m Dec 2025: 29.4% 300 Weighted average Inter
Slide 21: Market update
Market update Emily Prideaux 19
Slide 22: Occupational market: Strong fundamentals
Occupational market Strong fundamentals Central London office key market metrics • Constrained supply Quarter Demand Supply • Lowest level since 2020 Take-up Under offer Demand Availability Vacancy (sq ft) (sq ft) (sq ft) (sq ft) rate (%) • Increased demand Q2 2025 3.1m 3.3m 11.7m 24.2m 7.8% • Secon
Slide 23: Demand – second highest level on record
Demand – second highest level on record Central London office active demand Floorspace (million sq ft) 14 12 10 10-year average 8 6 4 2 0 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Source: CBRE • Q2 2026 demand • 11.9m sq ft • 45% above 10-year average Derwent London – Interim Results 2026 21
Slide 24: Supply – constrained supply driving rental growth
Supply – constrained supply driving rental growth Central London development pipeline Central London availability by quality • 54% of space due for completion in H2 2026 is pre-let or • Availability below 10-year average for first time since under offer Q2 2020 • 13.2 million sq ft of space under co
Slide 25: London – a beneficiary of AI growth
London – a beneficiary of AI growth Europe’s centre for AI Key AI leasing deals in 2026 • Talent and innovation • 26 of the global top 200 universities • Access to capital • Third largest global hub across all VC investment • London leads European VC into AI which has exceeded $25bn in last 2 years
Slide 26: Investment market
Investment market Key themes • S trong demand for well-located Core Plus and Value-Add • Domestic capital dominated in H1: 51% by value opportunities • Investors attracted by robust occupational market and • c.£25bn of equity targeting London positive rental growth forecasts • Highest level since mi
Slide 27: Derwent London activity: Capital recycling
Derwent London activity Capital recycling Focus on disposals H1 2026 disposals • £1bn target over three years • £ 279m completed/exchanged YTD Consideration Initial yield £m % • On track for £400m in 2026 Completed • Decisive plan to further optimise portfolio Horseferry House SW1¹ 129.3 6.0 80-85 T
Slide 28: Derwent London activity: Leasing
Derwent London activity Leasing Letting activity Rental income (£m pa) 45 H1 H2 Under offer 40 35 30 25 20 15 10 5 0 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 YTD • Lettings YTD: £22.1m • 5.1% ahead of Dec 2025 ERV • H1: £21.4m new lettings • Includes: • £14.1m office pre-let at Network W1 •
Slide 29: Derwent London activity: Asset management
Derwent London activity Asset management Asset management activity Rental income (£m pa) • Total asset management activity of £7.4m in H1 with a 35 Regears further £1.4m in H2 to date Lease renewals 30 • High levels of renewals and regears in H1 25 • £7.1m in 38 deals delivering a 5.8% rental uplift
Slide 30: Best-in-class product & service
Best-in-class product & service 4.25m sq ft office portfolio to meet London’s demand HQ offices Furnished + Flexible • 88% of London office portfolio • 8.4% of London office portfolio or 12% including third parties DL/Members • DL/Lounges • DL/App • DL/Service Derwent London – Interim Results 2026 2
Slide 31: Our Flex portfolio
Our Flex portfolio • Further growth of Flex portfolio (F+F) • Returns focused approach • Cost conscious (operational and capex) • Likely growth from 8.4% to c.15% (excluding third party providers) Floorspace (’000 sq ft) 600 F+F On-site F+F Third party serviced offices 500 400 300 200 100 80 Goswell
Slide 32: Development
Development Emily Prideaux 30
Slide 33: Proving rental growth
Proving rental growth Strong performance in spite of outward yield shift Landscape for London development Pro-growth Constrained supply Draft London plan Proven rental growth local authorities environment 25 Baker Street W1 Network W1 • 16% overall ERV beat vs appraisal ERV • Databricks rent of £103
Slide 34: On site at four major West End projects
On site at four major West End projects Completion H2 2029 H2 2028 H2 2027 H1 2027 Office area (sq ft) 474,800 204,000 113,000 107,800 50,000 Total project area (sq ft) 527,300 236,000 133,500 107,800 50,000 Total cost1 (£m) 872 412 251 135 74 Appraised ERV (£ psf) - 130 120 90 95 Appraised ERV (£m pa
Slide 35: 50 Baker Street W1
50 Baker Street W1 Best-in-class redevelopment in prime sub-market Redevelopment 236,000 sq ft • Landmark building at the centre of Baker Street • Confident architecture articulated by sophisticated and sustainable materials • Large flexible floorplates • Stunning rooftop amenities Derwent London –
Slide 36: Holden House W1
Holden House W1 New development behind retained façade Redevelopment 133,500 sq ft • Mixing of retained elegant façade and striking new architecture • Innovative servicing strategy • Carbon conscious construction and operation Derwent London – Interim Results 2026 34
Slide 37: Greencoat & Gordon SW1
Greencoat & Gordon SW1 Heritage refurbishment delivering flexible occupier solutions Refurbishment 107,800 sq ft • Re-imagining of characterful warehouse building • Celebration of Victorian industrial aesthetic • Flexible interconnecting floorplates Derwent London – Interim Results 2026 35
Slide 38: Middlesex House W1
Middlesex House W1 50,000 sq ft of flexible workspace Refurbishment 50,000 sq ft • Refurbished 1930s building with new reception and enhanced experience • F lexible floor plates flooded with light • C ommunal rooftop terrace and amenity • Furnished + Flexible/ managed Derwent London – Interim Result
Slide 39: Building the right product in the right location
Building the right product in the right location PC: H2 2029 PC: H2 2028 PC: H2 2027 PC: H1 2027 236,000 sq ft 133,500 sq ft 107,800 sq ft 50,000 sq ft Derwent London – Interim Results 2026 37
Slide 40: Maximising value and future pipeline
Maximising value and future pipeline Alternative uses and strategic partnerships 20 Farringdon Road EC1 Old Street Quarter EC1 230 Blackfriars Road SE1 • 2.5-acre mixed-use, living-led • 0.9-acre mixed-use redevelopment • Vacant possession H1 2027 campus redevelopment • Target: 200,000+ sq ft (+200%
Slide 41: Outlook
Outlook Paul Williams 39
Slide 42: A positive outlook
A positive outlook Returns-focused capital allocation Guidance Leasing and asset management Total accounting return • Strong momentum to grow and capture rental growth • 7-10%1 pa TAR anticipated over medium-term Disposals ERV guidance • Decisive plan to further optimise portfolio • Reiterated at 4-
Slide 43: Appendices
Appendices 41
Slide 44: Appendix – Headline numbers
Appendix 1 – Headline numbers Jun 2026 % change Dec 2025 Jun 2025 Net asset value (NAV) £3,515.3m (2.8)1 £3,615.3m £3,575.8m EPRA net tangible assets per share 2 3,157p (2.1) 1 3,225p 3,187p EPRA net disposal value per share 2 3,246p (1.7) 1 3,302p 3,276p Total accounting return (0.4%) n/a 5.0% 3.0%
Slide 45: Appendix – EPRA earnings adjustments
Appendix 2 – EPRA earnings adjustments Adjustments H1 2026 H1 2025 H1 2026 A B C EPRA EPRA IFRS basis basis £m £m £m £m £m £m Net property and other income 95.2 0.2 0.4 - 95.8 97.0 Onerous contract provision (45.8) - - 45.8 - - Administrative expenses (17.8) - - 0.9 (16.9) (17.4) Revaluation deficit
Slide 46: Appendix – Like-for-like income reconciliation
Appendix 3 – Like-for-like income reconciliation Like-for-like Like-for-like movement portfolio Other Total H1 2026 £m £m £m H1 2026 Gross rental income 89.5 17.4 106.9 Other property expenditure (10.0) (3.5) (13.5) Write-off/impairment of receivables (0.4) (0.1) (0.5) Net rental income 79.1 13.8 92
Slide 47: Appendix – Debt facilities
Appendix 4 – Debt facilities Drawn Undrawn Total £m £m £m Maturity 1.875% green bonds 350.0 - 350.0 November 2031 5.25% bonds 250.0 - 250.0 May 2032 3.46% private placement notes 30.0 - 30.0 May 2028 4.41% private placement notes 25.0 - 25.0 January 2029 2.87% private placement notes 93.0 - 93.0 Jan
Slide 48: Appendix – Property return
Appendix 5 – Property return • Total property return 1.6% • MSCI Central London offices1 3.2% Total property return Cumulative total property return % Index (31 Dec 2007=100) 9 350 Derwent London MSCI Central London Offices¹ 203% 6 6.0 MSCI UK All Property¹ 5.5 5.5 300 4.8 4.1 3.2 3 2.1 250 130% 1.6
Slide 49: Appendix – Portfolio valuation
Appendix 6 – Portfolio valuation True Valuation equivalent Net initial ‘Topped-up’ Valuation Capital movement ERV growth yield yield initial yield 3 Weighting Jun 2026 value1 H1 2026 2 H1 20263 Jun 20263 Jun 2026 Jun 20263 % £m £ psf % % % % % West End 75 3,701.4 1,205 0.9 3.2 5.45 3.5 5.0 City Bord
Slide 50: Appendix – Portfolio valuation
Appendix 7 – Portfolio valuation ERV and true equivalent yields1 ERV growth True equivalent yields H1 2025 H2 2025 H1 2026 Dec 2025 Yield shift Jun 2026 % % % % bp % West End 2.4 2.3 3.2 5.42 3 5.45 City Borders 0.4 1.3 1.4 6.34 17 6.51 Central London 1.8 2.0 2.6 5.69 6 5.75 Provincial 12.0 3.5 1.7
Slide 51: Appendix – Portfolio statistics
Appendix 8 – Portfolio statistics Net contracted Vacant (major Vacant Vacant Lease Estimated Average Floor area rental income1 projects)1 (refurbs)1 (available)1 reversion1,2 rental value1 rental value1 ‘000 sq ft £m pa £m pa £m pa £m pa £m pa £m pa £ psf West End 3,252 120.4 55.6 9.0 8.0 63.4 256.4
Slide 52: Appendix – Lease expiry profile and lease length
Appendix 9 – Lease expiry profile and lease length Expiries and breaks as a percentage of portfolio income1 West City End Borders Provincial H2 2026 2027 2028 2029 2030 Total Expiries 1 1 - 2 11 5 5 10 33 Holding over - - - - - - - - - Rolling breaks 1 - - 1 - - - - 1 Single breaks - - - - 5 5 4 1 1
Slide 53: Appendix – Timing of the reversion
2.0 Appendix 10 – Timing of the reversion 1.5 1.3 Reviews and expiries (headline) 1.0 0.9 0.7 0.7 0.5 0.1 0.0 H2 2026 2027 2028 2029 2030 >2030 Rent reviews: £6.9m Lease expiries: £11.6m1 £m £m 7 Projects 3.5 Underlying 3.2 3.0 6 2.5 5 2.0 4 4.3 1.5 3 1.3 1.0 2 0.9 2.5 0.7 0.7 0.5 1.5 0.5 1 1.3 0.1
Slide 54: Appendix – Portfolio summary
Appendix 11 – Portfolio summary Core Proforma income for Old Street Pipeline 53% Quarter EC1 47% acquisition⁵ Rental income: £31.2m Future WAULT: 5.4 yrs appraisal Office rent2: £48.02 18% Potential projects Rental income: £15.3m Rental income: £47.1m WAULT: 1.5 yrs WAULT: 4.1 yrs Office rent2: £44.
Slide 55: Appendix – Major tenants
Appendix 12 – Major tenants ‘Topped-up’ Passing rent % rent % 01 Expedia 6.3 8.3 02 Boston Consulting Group 6.0 7.7 03 Databricks 5.5 - 04 Public sector1 5.4 6.6 05 Arup 4.4 5.8 06 PIMCO 4.3 - 07 G Research 3.9 2.6 08 Fora 3.3 4.1 09 Apollo 3.1 2.1 10 Paymentsense 2.5 3.3 11 Sony Pictures 2.2 2.9 12
Slide 56: Appendix – Rent and tenant banding
Appendix 13 – Rent and tenant banding Central London ‘topped-up’ Profile of tenants’ office rent banding1 business sector2 £0-£30 psf Other 6% Retail head office 4% £30-£40 psf 3% 8% Flexible office providers 5% £80+ psf Business services 32% 26% Public sector £40-£50 psf 7% 7% Technology 7% £189.2m
Slide 57: Appendix – Project summary
Appendix 14 – Project summary Total Pre scheme Proposed H2 2026 2028+ capex to area area capex 2027 capex capex complete Delivery Property ‘000 sq ft ‘000 sq ft £m £m £m £m date Major projects 25 Baker Street W1 (completed) 143 298 5 3 - 81 H2 2025 Network W1 (completed) 70 141 3 4 - 7 H1 2026 Holde
Slide 58: Appendix – Energy use and intensity
Appendix 15 – Energy use and intensity Energy use Energy intensity kWh (millions) kWh/sqm 70 180 H2 64.6 H2 166 H1 H1 160 149 60 56.7 142 139 140 137 50.4 51.8 140 49.2 49.7 48.7 125 31.5 81 50 26.5 120 70 65 65 70 64 24.0 40 23.2 23.0 25.0 23.3 58 100 80 30 60 20 33.1 85 30.2 27.8 74 75 72 79 73 26
Slide 59: Appendix – Responsible development
Appendix 16 – Responsible development Net Zero Carbon (NZC) business by 2030 2020 First in industry to commit to NZC strategy Our 2030 targets 2025 Pathway progress since 2025 Energy intensity • 20% energy consumption reduction since 2019 • 4% year-on-year reduction • 40% of managed portfolio buildi
Slide 60: Appendix – Responsible development (continued)
Appendix 17 – Responsible development (continued) Net Zero Carbon (NZC) business by 2030 Embodied carbon Reducing energy use across the portfolio Sub and super-structure account for Working with our occupiers to cut energy use around 55% of upfront embodied across the portfolio, as well as reducing
Slide 61: Appendix – EPC rating progression
Appendix 18 – EPC rating progression London commercial portfolio by ERV¹ (%) 100 99.9 100 100 100 100 100 Dec 21 Dec 22 Dec 23 Dec 24 Dec 25 Jun 26 90 85.5 80 70 72.0 68.4 69.2 65.3 60 61.0 50 40 30 20 10 0 2023 compliant (A to E) 2031 compliant (A to B) 1 London commercial portfolio and assumes pro
Slide 62: Appendix – Central London office take-up
Appendix 19 – Central London office take-up Take-up Take-up by business sector Floorspace (million sq ft) % 100 20 Central London 90 Tech, media & telecoms 18 80 Public sector 16 Professional 70 Manufacturing, 14 Annual industrial & energy average 60 Insurance 12 50 Consumer services & leisure 40 10
Slide 63: Appendix – Central London office demand and supply
Appendix 20 – Central London office demand and supply Under offer Vacancy rates Floorspace (million sq ft) Vacancy rate (%) 5.0 18 West End City Docklands Midtown Southbank West End City Docklands Central London 4.5 16 4.0 14 Average 3.5 12 3.0 10 2.5 8 2.0 6 1.5 4 1.0 2 0.5 0 2000 2002 2004 2006 20
Slide 64: Appendix – Central London office pipeline
Appendix 21 – Central London office pipeline Development pipeline New construction starts Floorspace (million sq ft) Floor area (million sq ft) Vacancy rate (%) 3.0 Construction starts 12 12 Under construction available 4-quarter rolling average Under construction let/under offer Central London Comp
Slide 65: Appendix – Central London office investment market
Appendix 22 – Central London office investment market Investment volumes Investment demand by source £bn 22 H1 H2 20 SE Asia 8% 18 Middle 16 East UK & 12% Europe 14 34% 12 10 £25.2bn East Asia 8 19% 6 4 North 2 America 0 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 27% Sourc
Slide 66: Appendix – Portfolio map
Caledonian Road Camden Road Appendix 23 – Portfolio map Essex Road London Fields Camden Town Primrose Hill Carnegie St Islington Wharfdale Rd Angel Kings Cross Albany Regent’s Park St Pancras Hoxton St International Th Maida Vale am es lin k Euston Old Street Up pe rW ob Old Street Clerkenwell urn S
Slide 67: Executive Committee and senior management
Executive Committee and senior management Executive Committee Senior management Paul Williams Chief Executive Nigel George Investment Advisor Damian Wisniewski Chief Financial Officer Lesley Bufton Head of Marketing Emily Prideaux Executive Director Tim Hyman Group Architect David Lawler Company Sec
Slide 68: Disclaimer
Disclaimer This presentation (including any information which has been or may be supplied in writing or orally in connection herewith or in connection with any further inquiries, this “presentation”) has been prepared by Derwent London plc (the “Company”). No representation or warranty (express or i