Derwent London Plc · LSE:DLN
Derwent London — FY2025 Earnings Presentation
63 slides from Derwent London's earnings presentation, Feb 26, 2026
Slide 1: Annual Results 2025
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Slide 2: Contents
Contents Presenters Contents Paul Williams Introduction & overview 01 Emily Prideaux Strategic update & financial outlook 05 Damian Wisniewski Financial review 11 London market update 21 Operational performance 26 Outlook 34 Appendices 36 Executive Committee & senior management 60 Disclaimer 61 Derw
Slide 3: Introduction & overview
Introduction & overview Paul Williams 1
Slide 4: Strong foundation with compelling growth drivers
Strong foundation with compelling growth drivers Portfolio Pipeline Growth drivers Well-connected, high quality central Delivering design-led workspace to Reversion and strong foundations London office portfolio meet London’s diverse demand for earnings growth • Design and brand • West End locations
Slide 5: Solid results and strong start to 2026
Solid results and strong start to 2026 2025: Robust performance Asset management: a record year Disposals: ahead of book • £58.9m of rental income: • £216.1m, includes trading 6.4% uplift sales Leasing: further ERV beats Refinancing in 2025 • £11.3m new leases: 9.9% above ERV • £815m of new debt fac
Slide 6: Confident outlook
Springboard for growth Immediate returns-focused action plan • Active portfolio management • Disciplined financial planning and capital allocation • Drive strong total returns Market inflection • London – Europe’s undisputed business capital with proven resilience • Strong occupational market • Inve
Slide 7: Strategic update & financial outlook
Strategic update & financial outlook Emily Prideaux & Damian Wisniewski 5
Slide 8: Returns focused immediate action plan: capital allocation framework
Returns focused immediate action plan Clear capital allocation framework Disposals • £1bn over next three years • Mature/lower returning assets • Consider creation of co-investment vehicles Disciplined redeployment Balance sheet Development Acquisitions Shareholder distributions • Maintain strong •
Slide 9: Returns focused immediate action plan: active portfolio management
Returns focused immediate action plan Active portfolio management Development & Leverage HQ & Flex Risk & return value optimisation our platform Complementary in the Balancing income with Responding to evolving Distinctive London office right proportions value creation market specialist HQ offices C
Slide 10: Driving sustained value creation for our shareholders
Driving sustained value creation for our shareholders Earnings • £18m1 annualised rent from 25 Baker Street W1 • £11m1 annualised ERV at Network W1 • Upside from assumed further lettings • Cost of debt largely stable until 2031 • Targeting further cost savings Total accounting return (TAR) Confident
Slide 11: Earnings expected to grow 25% to 30% by 2030
Earnings expected to grow 25% to 30% by 2030 Temporary reduction followed by longer-term upside 2026 – momentum building for a stronger H2 • 25 Baker Street W1 & Network W1 increase income by c.£18m (IFRS basis) • Disposals of c.£400m assumed • Income reduced by projects commencing and voids • Admin
Slide 12: Positive medium-term TAR outlook
Positive medium-term TAR outlook Earnings Capital growth Development returns Capital allocation • 3% yield on NTA • 4% to 7% ERV growth • Selective and disciplined • A ccelerated disposal • Capture growing • Y ields substantially • Capex c.£140m to £200m pa programme reversion adjusted since 2022 •
Slide 13: Financial review
Financial review Damian Wisniewski 11
Slide 14: Financial highlights 2025
Financial highlights 2025 EPRA NTA per share1,2 Total accounting return Cash and undrawn facilities3 3,225p 5.0% £627m Jun 2025: 3,187p Jun 2025: 3.0% (6m) Jun 2025: £604m Dec 2024: 3,149p Dec 2024: 3.2% Dec 2024: £487m Gross rental income Net rental income Interest cover ratio (ICR)4 £218.3m £190.0
Slide 15: EPRA NTA movement
EPRA NTA movement Developments & ERV growth driving total accounting return, with more to come Total accounting return (TAR) Pence 3,500 Trading properties £4.2m 4p Investment properties (£2.2m) (2p) 2025 Total £2.0m 2p Increase in NTA 76p Dividends paid 81p +2.4% 157p 3,250 98 (81) 2 6 51 3,225 TAR
Slide 16: Valuation: rents growing and yields stable
Valuation Rents growing and yields stable Rental value growth % 6 Investment portfolio £5.1bn 4 • Underlying ERV growth 4.0% • Positive rent reviews, renewals and new lettings 2 • West End 4.8%, City Borders 1.7% 0 • Yields stable (2) • ‘Topped-up’ net initial yield 5.1% (Dec 2024: 5.2%) H1 growth H
Slide 17: EPRA earnings
EPRA earnings Lower admin costs but impacted by mid-year refinancing Property Finance • Gross rents up, but lease surrenders down • Higher average borrowings and WAIR1 in 2025 • Letting and marketing fees increased • Higher capitalised interest £m 140 Property Admin Finance 106.5p per share 3.5 102.
Slide 18: Gross rental income growth of £3.5m
Gross rental income growth of £3.5m • 25 Baker Street W1 contributing post-PC • EPRA vacancy rate 4.1% • Space taken back for schemes (2024: 3.1%) 50 Baker Street W1 £3.1m Turnmill EC1 (£1.6m) Like-for-like £m 4 & 10 Pentonville Road N1 (£1.1m) vs 2024 Other (£0.6m) 250 Total (£0.2m) 6.3 4.6 3.0 Gro
Slide 19: Investing in regeneration projects
Investing in regeneration projects • £182m of project expenditure incurred during the year • £83m/46% incurred on recently completed developments • Lower spend of £142m expected in 2026 as current projects progress through early stages £m Capitalised interest/overhead 200 182 Other¹ 180 16 Old Stree
Slide 20: Build-up of portfolio ERV (net effective basis)
Build-up of portfolio ERV (net effective basis) Annualised accounting rent (£m) 300 Potential portfolio 8.9 15.9 281.3 reversion 250 32.2 13.9 £70.9m 34% uplift 210.4 200 Capex required for Reversion: £70.9m major projects1 150 £216m 100 Dec 25 Major Vacant Vacant Reviews ERV rent projects¹ (refurb)
Slide 21: Substantial refinancing delivered
Substantial refinancing delivered 2025 activity • Feb – £115m unsecured term loan/revolving credit facility signed • Jun – £250m 5.25% unsecured bond issued with a 7-year term • Jun – £175m 1.5% convertible bond repaid on maturity • Jul – £450m unsecured revolving credit facility renewed for 4-year
Slide 22: Debt summary
Debt summary Robust metrics with funding options for the future EPRA loan-to-value Proforma maturity profile of debt facilities5 Total facilities £m (LTV) ratio 600 £2,045m Fixed rate bonds & USPPs 29.4% 1 450 Drawn bank loans Headroom 500 475 Jun 2025: £2,130m Jun 2025: 30.5% Dec 2024: £1,940m 400
Slide 23: London market update
London market update Emily Prideaux 21
Slide 24: London: Europe's business capital built for global business
London: Europe’s business capital built for global business Highly skilled and diverse talent base Central London prime office rents • 1/3 workforce increase 2008-2025 Prime office rent (£ psf) 280 Forecasts West End City Global safe haven and Europe’s 230 leading financial centre 180 • 40% of globa
Slide 25: The London occupational office market
The London occupational office market Strong fundamentals 2025 robust activity Space under construction reducing Floorspace (million sq ft) Vacancy rate (%) Take-up 12 12 Central London Under construction available • 11.4m sq ft Under construction let/under offer Completed • 3.5m sq ft under offer 1
Slide 26: Occupier drivers
Occupier drivers Real Estate London • Scale and depth of industry and skill Motives and location determinants for companies investing in London, Jan 2003 – Aug 2025 Proximity to markets or customers Domestic market growth Arrival Amenity Industry cluster Skilled workforce availability Regulatory env
Slide 27: Investment liquidity recovering across London
Investment liquidity recovering across London 2025 Outlook Total investment turnover Investor confidence improving £7.1bn • Greater price transparency • Strong occupier fundamentals +46% y-o-y • Supply/demand imbalance Average lot size Increasing depth of buyer pool £52m • £23.5bn of equity targetin
Slide 28: Operational performance
Operational performance Emily Prideaux 26
Slide 29: Capital recycling
Capital recycling Accelerating disposals as market liquidity 2025 disposals improves Consideration Initial yield Building £m % • Disposal target of £1bn over 3 years 4 & 10 Pentonville Road N1 26.0 - • Sale of assets where business plans largely complete/ 25 Baker Street W1 – residential value maxim
Slide 30: Strong leasing activity
Strong leasing activity Derwent London letting activity Resilient year for leasing Rental income (£m pa) 45 • £11.3m of new leases; includes £2.7m Pre-lets of Flex lettings Non pre-lets 40 Under offer • 9.9% ahead of Dec 2024 ERV 1 In negotiations • In line with long-term average2 35 Non pre-let ave
Slide 31: A record year for asset management
A record year for asset management Asset management activity Asset management activity across £58.9m of income Rental income (£m pa) Number of transactions 70 Regears Number of transactions 140 Lease renewals • Horseferry House SW1 (Burberry): lease extended to 2043 60 Rent reviews 120 with fixed up
Slide 32: Developments: successful delivery of two major projects
Developments Successful delivery of two major projects 25 Baker Street W1 Network W1 Completed August 2025 Completes imminently • Offices 100% pre-let 16.5% above appraisal ERV • Offices under offer 298,000 sq ft (+108% uplift) 141,200 sq ft (+101% uplift) • Offices 216,300 sq ft • Offices 136,300 s
Slide 33: Major projects
Major projects Focused development pipeline Holden House W1 Ungeared IRR >10% On site H2 2025; PC H2 2028 Redevelopment Sensitivity 133,500 sq ft (+47%) Rent +£10 psf +5% Total capex: £160m1 Yield -25bp +3% Middlesex House W1 On site H1 2026; PC H1 2027 Yield on completion >6.5% Rolling refurbishmen
Slide 34: 50 Baker Street W1
50 Baker Street W1 50 Baker Street W1 Proposed 2026 start Redevelopment 236,000 sq ft (+93%) Total capex: £260m Target returns Profit on cost >25% Ungeared IRR >12% Upside from rental growth and/or yield shift Derwent London – Annual Results 2025 32
Slide 35: Maximising value: alternative uses and strategic partnerships
Maximising value Alternative uses and strategic partnerships Blue Star House SW9 Old Street Quarter EC1 230 Blackfriars Road SE1 Aparthotel with operational partner 2.5-acre mixed-use, living-led campus 0.9-acre mixed-use redevelopment redevelopment Target: 86,100 sq ft (+60%) Target: 200,000+ sq ft
Slide 36: Outlook
Outlook Paul Williams 34
Slide 37: Outlook: momentum building into 2026
Outlook Momentum building into 2026 • Returns-focused action plan • Accelerating disposals • Disciplined redeployment of proceeds • Leasing and asset management momentum • Active portfolio management • Progressing accretive developments 2026 ERV growth Confident outlook forecast 4% to 7% • Market in
Slide 38: Appendices
Appendices 36
Slide 39: Appendix 1 – Headline numbers
Appendix 1 – Headline numbers Dec 2025 % change Dec 2024 Net asset value (NAV) £3,615.3m 2.1 £3,539.8m EPRA net tangible assets per share 1 3,225p 2.4 3,149p EPRA net disposal value per share 1 3,302p 1.3 3,261p Total accounting return 5.0% n/a 3.2% Gross rental income £218.3m 1.6 £214.8m Net rental
Slide 40: Appendix 2 – EPRA earnings adjustments
Appendix 2 – EPRA earnings adjustments Adjustments 2025 2024 2025 A B C D EPRA EPRA IFRS basis basis £m £m £m £m £m £m £m Net property and other income 199.6 (4.2) 1.4 - - 196.8 198.5 Administrative expenses (39.1) - - - 0.4 (38.7) (41.1) Revaluation surplus 52.2 - (52.2) - - - - Loss on disposal (2
Slide 41: Appendix 3 – Like-for-like income reconciliation
Appendix 3 – Like-for-like income reconciliation Like-for-like portfolio Other Total £m £m £m 2025 Gross rental income 188.4 31.2 219.6 Other property expenditure (19.5) (6.9) (26.4) Write-off/impairment of receivables - (1.9) (1.9) Net rental income 168.9 22.4 191.3 Other 5.2 4.4 9.6 Net property a
Slide 42: Appendix 4 – Debt facilities
Appendix 4 – Debt facilities At 31 December 2025 Drawn Undrawn Total £m £m £m Maturity 6.5% secured bonds 175.0 - 175.0 March 2026 1.875% green bonds 350.0 - 350.0 November 2031 5.25% bonds 250.0 - 250.0 May 2032 2.68% private placement notes 55.0 - 55.0 January 2026 3.46% private placement notes 30
Slide 43: Appendix 5 – Property return
Appendix 5 – Property return • Total property return 5.5% • MSCI Central London offices1 4.8% • Outperformance of 69bp Total property return Cumulative total property return % Index (31 Dec 2007=100) 18 350 Derwent London 16.5 MSCI Central London Offices¹ 15 199% MSCI UK All Property¹ 300 12 9 250 6
Slide 44: Appendix 6 – Portfolio valuation
Appendix 6 – Portfolio valuation True Valuation equivalent Net initial ‘Topped-up’ Valuation Capital movement ERV growth yield yield initial yield 3 Weighting Dec 2025 value1 FY 2025 2 FY 20253 Dec 20253 Dec 2025 Dec 20253 % £m £ psf % % % % % West End 75 3,801.0 1,089 2.2 4.8 5.42 3.7 4.9 City Bord
Slide 45: Appendix 7 – Portfolio valuation
Appendix 7 – Portfolio valuation ERV and yield shift1 True equivalent ERV growth Equivalent yield shift yield (%) (bp) (%) H1 2025 H2 2025 FY 2025 H1 2025 H2 2025 Dec 2025 West End 2.4 2.3 4.8 (5) - 5.42 City Borders 0.4 1.3 1.7 (4) 6 6.34 Central London 1.8 2.0 3.8 (4) 2 5.69 Provincial 12.0 3.5 15
Slide 46: Appendix 8 – Portfolio statistics
Appendix 8 – Portfolio statistics Net contracted Vacant (major Vacant Vacant Lease Estimated Average rental Floor area rental income projects) (refurbs) (available) reversion1 rental value value ‘000 sq ft £m pa £m pa £m pa £m pa £m pa £m pa £ psf West End 3,343 126.4 40.2 12.5 4.7 56.8 240.6 72.77
Slide 47: Appendix 9 – 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 2026 2027 2028 2029 2030 Total Expiries 3 3 - 6 9 6 5 9 35 Holding over - 1 - 1 - - - - 1 Rolling breaks 1 1 - 2 - - - - 2 Single breaks 1 1 - 2 4 4 4 1 15 Tot
Slide 48: Appendix 10 – Timing of the reversion
1.5 Appendix 10 – Timing of the reversion 2.3 Reviews and expiries (headline) 1.0 1.4 1.2 0.5 0.6 0.6 0.1 0.0 2026 2027 2028 2029 2030 >2030 Rent reviews: £6.2m Lease expiries: £12.0m1 £m £m 2.5 7 Projects 6 Underlying 2.0 5 1.5 4.7 4 2.3 1.0 3 1.4 1.2 2 3.2 0.5 1.6 0.6 0.6 1 1.8 0.1 0.5 (0.2) 0.4 0
Slide 49: Appendix 11 – Portfolio summary
Appendix 11 – Portfolio summary Core Proforma income for Old Street Pipeline Quarter EC1 46% 54% acquisition⁴ Future Rental income: £32.8m WAULT: 5.4 yrs appraisal Office rent2: £47.14 19% Rental income: £14.3m Potential projects WAULT: 1.6 yrs Rental income: £51.1m Office rent2: £51.44 WAULT: 3.9 y
Slide 50: Appendix 12 – Major tenants
Appendix 12 – Major tenants ‘Topped-up’ Passing rent % rent % 01 Expedia 6.4 8.0 02 Public sector 1 6.3 7.6 03 Boston Consulting Group 6.0 7.5 04 PIMCO 4.3 - 05 G-Research 3.9 5.0 06 Arup 3.9 2.8 07 Fora 3.4 4.0 08 Burberry 3.2 2.0 09 Apollo 3.2 2.0 10 Paymentsense 2.5 3.2 11 Sony Pictures 2.2 2.8 1
Slide 51: Appendix 13 – 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 5% Retail head office 4% £30-£40 psf 5% £80+ psf 9% Flexible office providers Business services 23% 6% 23% £40-£50 psf 9% Technology 7% Public sector £194.8m 7%
Slide 52: Appendix 14 – Major projects
Appendix 14 – Major projects Yield on completion >6.5% Project IRR >10% Completion H2 2028 H1 2027 H2 2027 Commercial area (sq ft) 291,300 133,500 50,000 107,800 Est. future capex (£m) 207 135 20 52 Total cost (£m) 1 523 290 82 151 ERV (£ psf) - 110 80 80 ERV (£m pa) 29.5 15.2 4.71 9.62 1 ERV of 65,
Slide 53: Appendix 15 – Project summary
Appendix 15 – Project summary Total Current Pre scheme Proposed 2026 2027 2028+ capex to office area area capex capex capex complete Delivery c.ERV Property ‘000 sq ft ‘000 sq ft £m £m £m £m date £ psf On-site major projects 25 Baker Street W1 (completed) 143 298 10 - - 10 H2 2025 103 Network W1 70
Slide 54: Appendix 16 – Energy and carbon performance
Appendix 16 – Energy and carbon performance Energy use Operational carbon footprint kWh (millions) tCO2e 70 Electricity 16,000 64.6 Scope 3 Gas 14,370 Scope 2 56.7 14,000 Scope 1 60 12,357 50.4 51.8 49.2 49.7 48.7 12,000 11,314 50 7,211 10,434 43.4 10,000 40 6,916 40.3 5,864 31.1 32.3 35.4 38.8 8,00
Slide 55: Appendix 17 – Embodied carbon
Appendix 17 – Embodied carbon Stage 4 Stage 4 estimate/ estimate/ Recognised in: as-built intensity as-built Prior years 2025 Remaining (kgCO2e/sqm) (tCO2e) (tCO2e) (tCO2e) (tCO2e) Major projects (on-site in 2025) 25 Baker Street W1 5941 25,495 13,319 12,176 - Network W1 c.530 9,371 4,686 4,685 - St
Slide 56: Appendix 18 – EPC rating progression
Appendix 18 – EPC rating progression1 London commercial portfolio by ERV (%) 100 99.9 100 100 100 100 Dec 2021 Dec 2022 Dec 2023 Dec 2024 Dec 2025 90 87.5 86.9 88.2 85.7 80 78.9 70 72.0 68.4 69.2 65.3 60 61.0 50 40 30 20 10 0 2023 compliant (A to E) 2027 compliant (A to C) 2030 compliant (A to B) 1
Slide 57: Appendix 19 – Central London office take-up
Appendix 19 – Central London office take-up Take-up Take-up by business sector % Floorspace (million sq ft) Tech, media 100 20 Central London & telecoms 90 Public sector 18 Professional 80 Manufacturing, 16 70 industrial & energy Insurance 14 Average 60 Consumer services & leisure 12 50 Business ser
Slide 58: Appendix 20 – 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 West End City Docklands Midtown Southbank 18 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 2 1.0 0 2001 2003 2005 2007 2009 2
Slide 59: Appendix 21 – Central London office pipeline
Appendix 21 – Central London office pipeline Development pipeline New construction starts Central London office starts (million sq ft) Floorspace (million sq ft) Vacancy rate (%) 3.0 12 Central London 12 Construction starts Under construction available 4-quarter rolling average Under construction le
Slide 60: Appendix 22 – Central London office investment market
Appendix 22 – Central London office investment market Investment volumes Investment demand by source £bn 22 H1 H2 20 Middle East 18 12% 16 SE Asia UK & 14 Europe 12% 12 37% Average 10 £23.5bn 8 North 6 America 4 19% 2 East Asia 0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 20% S
Slide 61: Appendix 23 – 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 62: Executive Committee and senior management
Executive Committee and senior management Executive Committee Senior management Paul Williams Chief Executive Lesley Bufton Head of Marketing Damian Wisniewski Chief Financial Officer Tim Hyman Group Architect Nigel George Executive Director Benjy Lesser Head of Design & Innovation Emily Prideaux Ex
Slide 63: 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