Annual Report & Accounts 2025 – interactive

‌Derwent London plc Report and Accounts 2025

‌Governance Financial statements‌

We are London's largest office-focused Real Estate Investment Trust (REIT). We create stakeholder value through property regeneration and asset management, taking a returns-focused approach to capital allocation.

We completed work at 25 Baker Street W1 in August 2025 and practical completion at Network W1 is imminent. The offices at 25 Baker Street were fully pre-let with the scheme delivering strong returns, and all of the office space at Network is under offer.

We also had a record year for asset management transactions in 2025 with leasing momentum gradually building through the year.

Disposals in 2025 totalled £216m. Since the start of 2026, we have exchanged contracts on £33m with a further c.£240m under offer.

Our rental values have grown by around 8% over the last two years and we are upgrading our 2026 guidance to 4-7%.

Other information

01

Strategic report

05 Derwent London at a glance 06 Our portfolio

08 Our year in review

10 Chairman's statement

12 Chief Executive's statement

16 Investment case

19 Regeneration projects

22 Strategic framework & business model

26 Strategic objectives

30 Key performance indicators

35 Property review

52 Finance review

62 Going concern & viability

66 Responsibility

86 Task Force on Climate-related Financial Disclosures

100 Managing risks

Governance

Financial statements

218 Independent auditors' report

226 Consolidated income statement

227 Consolidated statement of comprehensive income

228 Consolidated balance sheet

229 Consolidated statement of changes in equity

230 Consolidated cash flow statement

231 Notes to the consolidated financial statements

276 Company balance sheet

277 Company statement of changes in equity

278 Notes to the Company financial statements

Other information

284 Ten-year summary

285 EPRA summary

288 Principal properties 290 List of definitions

294 Shareholder information

295 Awards and recognition

See our full reporting suite including our

sustainability report on the Investors page of our website.

derwentlondon.comderwentlondon.com/responsibility

Network W1

‌02 Derwent London plc Report and Accounts 2025‌

Strategic report

Governance

Financial statements

Other information 03

Our core business strategy is to balance investment in future growth with actions that enhance returns and shareholder value over the near-term.

We are accelerating disposals, with a target of £1bn over the next three years. Proceeds will be redeployed into selective developments including Holden House W1 and 50 Baker Street W1 where rents are growing strongly, as well as considering alternative capital allocation options.

Strategic report

05 Derwent London at a glance 06 Our portfolio

08 Our year in review

10 Chairman's statement

12 Chief Executive's statement

16 Investment case

19 Regeneration projects

22 Strategic framework & business model

26 Strategic objectives

30 Measuring our performance

35 Property review

52 Finance review

62 Going concern & viability

66 Responsibility

86 Task Force on Climate-related Financial Disclosures

100 Managing risks

25 Baker St W1

‌Governance Financial statements Other information 05‌

Derwent London at a glance

How we add value

Our portfolio is substantially income producing, with asset management and regeneration potential. We create long-term value through delivery of

distinctive, design-led, amenity-rich offices predominantly in the West End. We are accelerating the pace of disposals to provide capital for redeployment into accretive opportunities to deliver sustainable growth in earnings and long-term returns.

See page 22

Returns-focused business model Portfolio metrics

Core income

58%

Balanced portfolio

Future opportunity 42%

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Offices Retail Residential

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'Topped-up' rent (by floor area)

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<£60 psf £60-80 psf £80-100 psf > £100 psf

Responsible approach

We conduct business with integrity and work with

a supply chain who share our values and high ethical

standards. Through responsible stewardship of our portfolio and active engagement with our communities, we aim to deliver positive outcomes and long-term value.

See page 66

Governance framework

Risk management

Our overall risk appetite is low. Inherent and residual 'risk ratings' are used to identify risks and ensure they are aligned with the Board's tolerance.

See page 102

Performance and remuneration

Success against our objectives is measured using our KPIs and rewarded through our incentive schemes.

See page 30

04 Derwent London plc Report and Accounts 2025

White Collar Factory EC1

‌06 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 07

Our portfolio

A unique 5.3m sq ft central London portfolio

Location (by value)

2%

West End City Borders Provincial

HQ vs Flex (by floor area)

King's Cross St. Pancras

Islington

Angel

HQ Flex (inc. third party operations)

Capital value (by value)

<£1,000psf £1,000psf-1,499psf > £1,500psf

Occupiers (by rent)

Paddington

Euston

Fitzrovia

Clerkenwell

Old Street

Barbican

Shoreditch

Business services Financial Media Retail HQ1 Public sector Retail Other

1 Retail HQs and online leisure.

Key portfolio statistics

Paddington

Marylebone

Marylebone

Mayfair

Bond Street

Tottenham Court Road

Soho /

Farringdon

Holborn

Blackfriars

Liverpool Street

The City

River Thames

Fenchurch Street Cannon Street

Whitechapel

Whitechapel

Tower Gateway

Valuation

£5.1bn

2024: £5.0bn

Tenants

379

2024: 402

Buildings

61

2024: 62

EPRA vacancy rate

4.1%

2024: 3.1%

Covent Garden

Waterloo

Southbank

London Bridge

DLR

Annualised rent1

£210.4m

2024: £210.7m

EPRA 'topped-up' initial yield

5.1%

2024: 5.2%

1 Net effective rent - see page 292 for definition.

'Topped-up' WAULT - to break

7.0 years

2024: 6.8 years

True equivalent yield

5.71%

2024: 5.73%

Victoria Victoria

Pimlico

Vauxhall

River Thames

Elephant and Castle

Key

West End City Borders

Conditional acquisition

‌08 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 09

Our year in review

Momentum built through 2025, with a record £58.9m of asset management activity driven by rent reviews, leasing 10% above ERV and disposals totalling £216.1m.

Our total accounting return improved, helped by ERV growth of 4.0%, stable yields and development surpluses. As expected, mid-year refinancing lifted our average interest rate to c.4.1%, impacting EPRA earnings in the second half.

Good progress was made on developments with a new headlease agreed at 50 Baker Street W1 and commencement of Holden House W1, which is opposite an Elizabeth line station.

Operational highlights

£11.3m

Lettings 9.9% above

December 2024 ERV

£58.9m

Asset management transactions 6.4% rental uplift

4.1%

EPRA vacancy rate (2024: 3.1%)

£216.1m

Disposals completed in 2025 (including trading sales)

Net rental income (2024: £189.6m)

Net debt/EBITDA ratio3 (2024: 9.3x)

9.0x

EPRA loan-to-value ratio1,3 (2024: 29.9%)

29.4%

Dividend per share (2024: 80.5p)

81.5p

EPRA earnings per share1,2 (2024: 106.5p)

98.4p

£190.0m

Gross property & other income (2024: £276.9m)

£406.3m

3,225p

EPRA NTA per share1,2 (2024: 3,149p)

5.0%

Total accounting returnR (2024: 3.2%)

Financial highlights

1. EPRA performance measure - see page 290 for definitions.

2. See note 37 on page 264 in the financial statements for reconciliation to IFRS figures.

3. See note 39 on page 270 in the financial statements for calculation. R Links to remuneration - see pages 30 to 34.

Portfolio highlights

1.7%

Underlying capital growth (2024: 0.2%)

5.5%

Total property returnR (2024: 4.1%)

5.71%

True equivalent yield (2024: 5.73%)

4.0%

ERV growth (2024: 4.3%)

Other highlights

125kWh/sqm

Energy intensityR (2024: 137 kWh/sqm)

10,434tCO2e

Operational carbon footprint (2024: 12,357 tCO2e)

86.5%

Overall employee satisfaction

£504k

Charlotte Building W1

Community fund & sponsorship donations committed

‌10 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 11

Chairman's statement

Delivering value

and future growth

We are targeting an acceleration in disposals now the investment market is improving to ensure the alignment of our portfolio to evolving market trends and to provide capital for accretive reinvestment.

Mark Breuer Chairman

The Board is pleased to confirm a 0.5p per share increase in the final dividend to 56.0p.

The Group's focus is on delivering sustainable long-term returns for shareholders through active portfolio management and development of high quality, design-led offices in the most connected and vibrant parts of London.

Development is a core part of our business model which has contributed to consistent outperformance of our benchmark, the MSCI Central London Office Index. At a time when the sector's cost of capital is elevated, however, we recognise the importance of balancing investment in future growth with actions that enhance returns and shareholder value over the near-term. While maintaining an appropriate level of leverage, disposal proceeds will be selectively reinvested into a combination of development projects, acquisitions where the strategic and financial rationale is clear, and share buybacks.

25 Savile Row W1

Succession planning has been, and remains, an important focus throughout the year. Shortly after year-end, Chief Executive Paul Williams announced his decision to retire. He will remain in his role until his successor is in place. Paul has made a substantial contribution to the business over the last 38 years, and there will be time to celebrate his many successes. A comprehensive recruitment process is underway.

Executive Director Nigel George had previously announced his decision to retire. Nigel steps down from the Board on 31 March 2026 and will continue as an employee for between 12 and 24 months, supporting a number of key projects. On behalf of the Board, I would like to thank Nigel for his dedication and contribution to Derwent London over many years.

Together with Damian Wisniewski, Chief Financial Officer, Emily Prideaux, Executive Director, and the senior management team, the Board is confident in the depth of experience and is fully focused on delivering the Group's strategy.

The Board is pleased to confirm a 0.5p per share increase in the final dividend to 56.0p, taking the full year dividend to 81.5p, a 1.2% uplift. This is consistent with our dividend policy and represents the 18th consecutive year of growth. Dividend cover remains healthy at c.1.2 times based on EPRA earnings. The final dividend will be paid on 29 May 2026 to shareholders on the register at 24 April 2026.

The London office market continued to strengthen in 2025, and momentum has accelerated into 2026. The business is well-positioned to benefit from this improvement. We have strong conviction in the medium-term outlook for earnings growth and total accounting return.

Mark Breuer

Chairman

‌12 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 13

Chief Executive's statement

Paul Williams Chief Executive

Improving business momentum and positive outlook

The London office sector faces a significant shortage of supply, particularly for well-located, good quality buildings and demand

remains strong.

Rents for these buildings have continued to grow and yields have stabilised. In addition, investment liquidity has been improving, particularly for larger lot sizes, supported by increasingly favourable credit conditions.

Portfolio activity - positive momentum

Our capital values increased by 1.7% overall in 2025, led by the West End, and developments again made a significant contribution. We also continued to capture the growing reversion with new leases signed nearly 10% ahead of ERV.

New leases of £11.3m completed in 2025, with open-market lettings agreed 9.9% ahead of December 2024 ERV. This includes £2.7m of Flex lettings, where demand remains strong. Operational momentum has stepped up into 2026. We have completed £1.5m of new leases and are under offer on £14.4m of rent, which includes all of the offices at Network W1. In addition, we are in negotiations on a further £4.4m across the portfolio.

Asset management activity on £58.9m of income is almost 30% higher than the previous peak in 2019. This included accretive major rent reviews at Brunel

Building W2 and 80 Charlotte Street W1, reflecting strong rental growth, which we expect to continue, since the buildings completed. We also completed several successful lease regears with longstanding occupiers such as Adobe at White Collar Factory EC1 and Burberry at Horseferry House SW1. These transactions are evidence of the continued strong demand for our buildings and the quality of our occupier relationships.

We secured vacant possession at several properties ahead of project commencement, including Holden House W1, Middlesex House W1 and Greencoat & Gordon House SW1. Excluding these, our EPRA vacancy rate increased to 4.1% but remains low.

90 Whitfield Street W1

Overall disposal proceeds increased in 2025 to £216.1m. This included the sales of 4 & 10 Pentonville Road N1 and Francis House SW1 for a combined £80.1m, as well as £135.9m from trading disposals at 25 Baker Street W1.

With liquidity in the investment market improving, we are increasing the pace of disposals with a target of £1bn over the next three years. In 2026, we have exchanged contracts for the sale of 80-85 Tottenham Court Road W1 for £32.6m and are under offer on a further c.£240m.

Property valuations and financial performance - ERV upgrade

Development valuations were up 7.6% at 25 Baker Street W1, Network W1 and Holden House W1, while the standing portfolio delivered an uplift of 0.8%. ERV growth in the year of 4.0% was in line with our guidance. Our 2026 outlook is increased to 4% to 7%, from 3% to 6% in

2025.

The portfolio equivalent yield was stable at 5.71% (2024: 5.73%) but, excluding 25 Baker Street, it increased by 5bp. After allowing for additional future capex into the portfolio, underlying capital values rose by an overall 1.7% in 2025.

Our total property return of 5.5% outperformed the MSCI Central London Office Quarterly Index by 69bp. EPRA NTA was up 2.4% to 3,225p per share resulting in a total accounting return (TAR) of 5.0%. This is an increase from 3.2% in 2024, following the inflection in values in mid-year.

Earnings form a key component of our TAR. Positive rental performance and cost efficiencies were offset by increased interest costs, following the refinancing at higher rates in the middle of the year and slightly higher average net debt levels. As a result, and in line with guidance, EPRA earnings reduced to 98.4p per share from 106.5p in 2024. Adjusted earnings, which include trading profits of £4.2m associated with 25 Baker Street, were 102.1p per share.

‌14 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 15

Chief Executive's statement continued

Our approach to capital allocation

Our business model is underpinned by capital recycling. Property disposals are currently our primary source of incremental funding and with liquidity improving, we are targeting an acceleration in sales over the next three years. Properties will be considered for sale where we believe the capital can be deployed more accretively, or where our asset management plans are largely complete. In addition, we will also look to crystallise development profits.

As the cost of capital increased across the sector during 2025, we have reviewed our approach to capital allocation. Out of the

£1bn of target disposals, we have earmarked c.£500m for future development capex and, after taking account of the acquisition of Old Street Quarter EC1 for £239m in late-2027, this leaves a surplus of c.£250m for redeployment into other opportunities. These include acquisitions where the rationale is compelling and potential share buybacks which are an important tool to enhance both NAV and earnings per share over the short-term.

Development has been and remains an important driver of value creation and earnings accretion, having made a positive contribution to total accounting return every year since 2010. By investing in locations with strong fundamentals, we are significantly outperforming our appraisals, and our recent projects are good examples of this. However, we have always taken a disciplined approach and there have been several examples of projects we have chosen to sell rather than deliver ourselves.

Project pipeline

In 2025, property yields were stable and ERV growth outperformed build cost inflation. We started demolition works at Holden House W1 (133,500 sq ft redevelopment) last year where future capex is £135m. Greencoat & Gordon House SW1 (107,800 sq ft comprehensive refurbishment) and 50 Baker Street W1 (236,000 sq ft redevelopment) are proposed to commence later this year. Our appraisals show attractive yields on completion and minimum 10% ungeared IRRs, with rental growth expected to increase these further given the strength of the respective sub-markets.

Old Street Quarter EC1 represents a significant long-term regeneration opportunity. During the year we formed a strategic partnership with Related Argent to progress a best-in-class mixed-use, living-led project. The masterplan will be structured to provide flexibility through to delivery, including potential joint ventures, forward funding and plot sales. We are working towards a planning application later this year.

Strong London market

London maintains its status as Europe's business capital, and we are optimistic about the office market outlook, which is underpinned by strong fundamentals. We are entering a period of very low new supply while demand remains robust, sector diverse and increasingly focused on best-in-class space. This imbalance supports rental growth and continued improvement in investment activity.

One of London's key economic strengths is its diverse office demand and ability to attract both blue-chip corporates and high growth innovators, supported by leading levels of venture capital investment, including a top three global position for AI venture capital and Europe's largest concentration of generative AI businesses. While we recognise the ongoing debate around AI, we believe London's depth of talent, culture of innovation and global connectivity will allow the city to harness AI as a net positive for long term occupational demand and economic growth.

Confident outlook and guidance

Our underlying valuation ERV has grown by around 8% over the last two years and our guidance for 2026 is up from 2025 to 4% to 7%.

Rental growth is expected to continue to exceed cost inflation, supported by income from recently completed projects. We anticipate a near-term reduction in EPRA earnings, followed by growth in H2 2026 and into 2027.

Looking ahead, we forecast 25% to 30% growth in EPRA earnings by 2030 from 2025 levels. This will be driven by project completions, capture of rental reversion and cost efficiencies as well as disciplined capital allocation.

Assuming investment yields remain stable, we anticipate delivering a total accounting return of 7% to 10% per annum over the coming years.

Paul Williams

Chief Executive

50 Baker Street W1

‌16 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 17

Investment case

Our approach to capital allocation

We take a disciplined, returns-focused approach to capital allocation, and are accelerating disposals. Proceeds will be redeployed into the most accretive opportunities to maximise total accounting

01 02 03 04 05

return (TAR) over both the near and long-term. In addition, it will enhance

financial flexibility and reduce leverage. This is supported by an increasingly positive market backdrop, as the London office market continues to strengthen, with rental growth benefitting from tightening supply across our sub-markets.

The recently completed major project at 25 Baker Street W1, where the offices were fully pre-let, generated a strong return for our shareholders, achieving an ungeared IRR of 11.3% at practical completion. Work at our other major scheme, Network W1, completes imminently and all of the office space is under offer. We expect rental values to continue to grow for these well-located, high quality buildings, enabling us to capture further upside. See page 19 for further information on these projects.

Future projects will be delivered into a stronger London office market as the supply shortage of new space becomes more entrenched, driving expectations of sustained rental growth. Investor confidence is further supported by favourable credit market conditions.

Returns-

focused capital allocation

• Accelerating pace of disposals, targeting £1bn over three years

• Actively reshaping the portfolio to drive future returns

• Capital to be redeployed into accretive opportunities

• Selective regeneration and future potential value-enhancing share buybacks

  See page 18

  25-30%

  earnings growth by 2030

• Near-term reduction in earnings until Network income commences, with growth anticipated in 2027

• 25-30% earnings growth expected by 2030

• Operational performance enhanced by completion of pre-let developments

• Cost of debt largely stable until 2031 with overhead efficiency programme underway

  See page 53

  Positive

  medium-term TAR outlook

  • Earnings yield of c.3%

  • ERV-led capital growth of 3-5% pa

  • Development surpluses of 1-2% pa

  • Consider NTA and EPS accretion via share buybacks

    See page 14

    Strong

    London office market

  • Impending supply crunch

  • Low availability of right space and constrained development pipeline

  • Investment market liquidity improving due to stronger rental outlook

  • Leverage increasingly accretive as rates move lower

    See pages 41 to 46

    Opportunity-rich,

    well-located portfolio

• 75% in West End; 88% within 10 minutes of Elizabeth line or mainline station

• Flex space to increase further from 8% of portfolio

• Mid-market rental tone offering substantial upside potential

• West End pipeline in sub-markets with strong rental growth

  See page 06

  Oliver's Yard EC1

  
  
  

  ‌18 Derwent London plc Report and Accounts 2025‌

  Governance Financial statements Other information 19

  
  
  

  Strategic report

Investment case continued

25 Baker Street W1

• 298,000 sq ft development

• 108% area uplift

• Total capex: £298m plus estimated overage of £30m

• Completed: August 2025

• Rent: £21.7m pa (headline) - Offices 100% pre-let

• Residential 73% sold for £118m (including affordable)

Returns:

Yield on completion

7.5%

IRR (ungeared)

11.3%

• Well-located: This mixed-use scheme, comprising 204,000 sq ft of Grade A offices, 41 private residential apartments and 17 retail units, is situated in the heart of Marylebone and conveniently located within a 10-minute walk of Bond Street station (tube and Elizabeth line).

• Generous amenity: The office building features a voluminous reception, best-in-class end of journey facilities and an in-house café and lounge offering informal collaborative space.

• High sustainability credentials: The office uses all-electric heating and cooling with Intelligent Building technology, and is rated BREEAM Outstanding with a 4.5 Star NABERS target.

• Value for other stakeholders: The development also delivered 7,000 sq ft of affordable housing and the creation of a new landscaped, pedestrianised public courtyard.

• Further value expected: The offices were pre-let 16.5% above our appraisal ERV. Recent local lettings have shown rents continuing to grow at >5% pa, further increasing reversion still to come.

Network W1

• 141,200 sq ft development

• 101% area uplift

• Total capex: £125m

• Completion: Imminent

• Dec 2025 ERV: £13.7m pa (headline) - Offices under offer

Expected returns:

Yield on completion

IRR (ungeared)

6.5-7.0% 8-9%

• Excellent connections: Located in the vibrant community of Fitzrovia, this building benefits from a wide range of local amenities and excellent access to transport links.

• Building features: The building features a double-height reception, generous amenity provision, flexible floor plates, and both communal and private terraces.

• Reduced environmental impact: Designed as our lowest ever carbon building, it incorporates various circular economy measures, including the reuse of raised access flooring. Following its completion, the building aims to achieve BREEAM Outstanding, LEED Gold, EPC A, and NABERS 4.5 Star ratings.

• Community benefits: As part of this development, 23 affordable homes were built at nearby Tottenham Mews W1, contributing positively to the wider community.

• Offices under offer: Broad range of occupier interest, both for single occupancy and multi-let.

Accelerating disposals and use of proceeds Regeneration projects

We completed 25 Baker Street W1 in August 2025. The offices were fully pre-let substantially ahead of ERV and the project delivered strong returns. Practical completion at Network W1 is imminent

Capital recycling is the Group's preferred source of funding We will dispose of properties where we believe the capital can be deployed more accretively, our asset management plans are largely complete, or to crystallise development returns. We have set a target to sell £1bn of property over the next three years.

Since the start of 2026, we have exchanged contracts for the sale of £33m of property and are under offer on a further c.£240m.

We ensure alignment with emerging occupier trends when making our investment decisions.

We recognise the importance of balancing investment in future growth with actions that enhance earnings and shareholder value over the near-term, while maintaining an appropriate level of leverage and risk. Proceeds will be reinvested into a combination of selective regeneration projects, acquisitions and potential share buybacks.

Investment in projects

At 31 December 2025, expected future capex at the Group's recently completed and on-site projects was c.£155m. This includes Holden House W1 which is forecast to deliver an attractive return, with upside potential from rental outperformance. At Greencoat & Gordon House SW1 (capex c.£57m) and 50 Baker Street W1 (capex c.£260m), preparatory works are underway as the schemes advance towards proposed commencement in mid-2026. At the year end, total committed capex was £93m.

See target return expectations on page 47

Acquisition of Old Street Quarter

In 2021, we agreed to acquire Old Street Quarter EC1 for £239m (plus transaction costs), with completion expected in late-2027. We are looking to structure the site in a way that allows flexibility of delivery which may include joint ventures, forward funding and/or plot sales.

See page 21

Other accretive investment opportunities

After allowing for other commitments, £1bn of property disposals could provide surplus capital of up to £250m. In an environment where the cost of capital across the sector has increased, we will consider investing in share buybacks where they are more accretive to earnings and total return. Acquisitions will remain under consideration where the strategic and financial rationale is compelling.

and all of the offices are under offer, supporting our attractive return forecast.

‌20 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 21

Regeneration projects continued

On site and proposed 2026 starts

On site

Holden House W1 Redevelopment behind façade Target completion: H2 2028

133,500 sq ft

Uplift: 47%

(from 90,600 sq ft)

c.£160m

Total capex

Proposed 2026 start

Greencoat & Gordon House SW1 Comprehensive refurbishment Target completion: H2 2027

107,800 sq ft

c.£57m

Total capex

50 Baker Street W1

Redevelopment

Target completion: H2 2029

c.236,000 sq ft

Uplift: 93%

(from 122,300 sq ft)

c.£260m

Total capex

Development and refurbishment activity is a key component of our total return model. We take a disciplined and selective approach, investing in projects where returns are supported by a positive rental outlook.

We typically invest £150m to £200m in capital expenditure each year in a combination of major value-add projects and smaller refurbishments. We take a rigorous approach before committing to a project, benchmarking returns against other investment opportunities. We have previously disposed of several potential schemes prior to commencement based on the relative return outlook.

Our current pipeline comprises:

The timing, pace and extent of rolling refurbishments depend on when we take space back from occupiers. We reposition properties with enhanced amenity and general upgrades to grow income and future-proof asset value. Refurbishment activity also includes EPC upgrade works.

Our potential future pipeline totals c.1.2m sq ft. For some properties, alternative uses may be the highest value opportunity and we are actively exploring several, mainly living-led, schemes. Where appropriate, we will consider working with specialist partners. At Old Street Quarter EC1, we are working with Related Argent to optimise the scheme and enhance flexibility of delivery. In addition, we worked with Astir at Blue Star House SW9 to secure a hotel-led planning consent in 2025.

All these projects are classified in the 'With Potential' or 'Under Development' sections of our balanced portfolio. On completion, properties move into the 'Core Income' category where we continue to capture rental growth and create value through asset management.

Longer term

See page 22

Future pipeline opportunities

20 Farringdon Road EC1 Comprehensive refurbishment Potential start: 2027

Blue Star House SW9 Hotel-led refurbishment Potential start: 2027

167,000 sq ft

£52 psf £90+psf

Passing rent Scheme ERV

86,100 sq ft

Consented Uplift: 60%

(from 53,400 sq ft)

Old Street Quarter EC1

Mixed-use campus redevelopment Potential start: 2028+

230 Blackfriars Road SE1

Redevelopment Potential start: 2030+

750,000+ sq ft

Target Uplift: 80%+

(from 400,000 sq ft)

200,000 sq ft

Target

Uplift: 300%+ (from 60,100 sq ft)

Rolling refurbishments

1-2 Stephen Street W1

£87+ psf

Estimated rental value

£73 psf

Previous/passing rent

Middlesex House W1

£85+ psf

Estimated rental value

£60 psf

Previous/passing rent

2026

Holden House

2027

2028

2029

2030+

Greencoat & Gordon House

50 Baker Street

20 Farringdon Road

Blue Star House

Old Street Quarter

230 Blackfriars Road

Rolling refurbishments

Next On-

phase

site

Project timeline for major projects

‌22 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 23

Strategic framework & business model

We apply our asset management and regeneration skills to the Group's 5.3m sq ft property portfolio using our people, relationships and financial resources to add value and grow income.

How we add value for shareholders

Core income

58%

Under development/potential

42%

Future opportunity 19%

Core income 58%

Under appraisal 11%

Major projects 9%

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Balanced portfolio

Core activities

Strategic objectives

Value created 2025

Investment: disposals

Provide capital for future investment opportunities

Investment: acquisition

Buy properties with modest capital values and potential to upgrade and/or add floor area; usually income producing

Asset management (pre-upgrade)

Explore the best strategy for a building whilst maintaining income; agree landlord breaks at future dates which provide flexibility over vacant possession for regeneration

Refurbishment and development

Secure planning consent; refurbish or redevelop, adding floor area where possible; seek to de-risk with pre-let(s) and fixed price construction contracts

Asset management (core income)

Continue to add value through satisfying occupier needs, minimising voids, growing income and further upgrades

Share buybacks

Used appropriately, share buybacks are an alternative source of earnings and value growth

1.

To optimise returns from a balanced portfolio

2.

To grow recurring cash flow

3.

To attract, retain and develop talented employees

4.

To design, deliver and operate our buildings responsibly

5.

To maintain strong and flexible financing

See page 26

Total accounting return

5.0%

NTA per share

3,225p

(+2.4%)

EPRA EPS

98.4p

(-7.6%)

Dividend

81.5p

(+1.2%)

Total property return

5.5%

Value created for other stakeholders / See page 24

‌24 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 25

Strategic framework & business model continued

Value created for other stakeholders

For further detail on our approach to stakeholder engagement, see pages 128 and 129

Occupiers

We provide high quality amenity, such as our lounges, and have a dedicated team who run a series of events which support wellbeing and encourage collaboration and community. Our Asset and Property Management teams maintain an ongoing dialogue with our occupiers and we take a collaborative approach to sustainability, supporting our tenants in meeting their environmental commitments.

>30k

number of occupiers in our buildings

Property Review/ See page 44

Debt providers

We communicate in an open and transparent manner with our debt providers, providing timely access to information and regular opportunities for dialogue, to build lasting relationships. Alongside regulatory disclosures, we host meetings, presentations and property tours, providing visibility over the Group's strategy and performance. In 2025, we completed

£700m of refinancing, including a bond issue and a new £450m unsecured revolving credit facility.

£250m

7-year bond issuance (June 2025) with a 5.25% coupon

Financing strategy / See page 27

Employees

Employees are supported through an inclusive working environment with opportunities to develop their skills and share feedback. Anonymous annual employee surveys capture workplace experiences and measure satisfaction levels, helping to guide enhancements. Our staff receive training on a variety of topics and are kept informed through CEO-led town hall meetings and our intranet, providing clarity on business strategy and decision making.

86.5%

overall employee satisfaction

See page 78

Suppliers

We build long-term, responsible relationships with suppliers founded on fair treatment and high ethical standards. Our Supply Chain Responsibility Standard promotes safe working practices, strict Modern Slavery standards and our approach towards net zero carbon, while prompt payment and regular engagement support transparency, stability and collaboration.

>£300m

paid to suppliers in 2025

Supply Chain Responsibility Standard / See page 168

Local communities

Our buildings are an integral part of the communities in which they sit and our engagement takes many forms. This can be both financial and non-financial. Employee volunteering, work experience opportunities and building open days support social value by developing skills and strengthening local connections.

£1.4m

donated through our Community Fund since inception

See page 76

Central and local government

We maintain proactive relationships with local and central government departments where we engage across a variety of levels including local planners, local action groups and HMRC. The Group seeks to positively impact policy through involvement in various bodies, such as Westminster Property Association (WPA) and New West End Company (NWEC).

Commitment to use

Low carbon concrete

See page 72

‌26 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 27

Strategic objectives

1

To optimise returns from a balanced portfolio

We seek to balance our portfolio between properties with regeneration potential, and assets already repositioned where our asset management skills can drive further income and value. We actively recycle capital by disposing of properties where most of the upside has been captured or which no longer meet our investment criteria.

The returns we generate from our current and future regeneration pipeline help us outperform our benchmark (the MSCI Central London Office Index). Value is created over several years through planning uplift, regearing of headleases and regeneration.

We typically commence development projects speculatively, but seek to de-risk by agreeing pre-lets during construction.

For our 'core income' properties we aim to maintain or grow income through active asset management with a focus on customer relationships.

Our disciplined, returns-focused approach to capital allocation enables us to achieve the right balance of risk and return for shareholders.

2

To grow recurring earnings and cash flow

Property valuations reflect both contracted and expected future cash flows with a market yield that considers risk, growth expectations, asset quality, environmental considerations and other factors.

Implementing the right strategy for a property can both add value and increase cash flow, though typically at different stages of the property cycle.

Value creation usually occurs first as expectations of rental growth emerge, with the uplift in cash flow captured later through rent reviews, lease regears and other forms of lease restructuring.

By creating the right space in well-connected locations and providing occupiers with flexibility, adaptability and amenity (including DL/Member benefits), we can generate stronger rental growth. In combination with effective cost control, this helps drive earnings growth.

3

To attract, retain and develop talented employees

Our employees are instrumental to the successful delivery of our strategy and long-term business performance and we invest significant time and resources in their development and growth.

We are an inclusive and respectful employer that values diversity and champions equality. We are focused on embedding our diversity and inclusion ambitions throughout the business. This is supported by a progressive and collaborative culture built on teamwork, integrity and long-term relationships.

Our operational structure enables the effective management of complex transactions by bringing together cross-disciplinary project teams to encourage creativity and innovation.

We undertake an annual anonymous staff survey to identify where we are making a positive impact and where we can improve further.

4

To design, deliver and operate our buildings responsibly

Delivering well-designed, adaptable, occupier-focused buildings with carefully considered amenity is integral to our business model, providing better value for our customers and stronger returns for shareholders.

Setting high standards for design and environmental responsibility builds flexibility, longevity and climate resilience into our portfolio.

To meet our target of becoming a net zero business by 2030, we must deliver buildings that are increasingly energy efficient, powered by renewable energy and with very low embodied carbon. We must also reduce the reliance on natural gas across our managed properties.

We work with our stakeholders, including local communities around our buildings, to ensure we operate responsibly and meet their expectations and standards.

5

To maintain strong and flexible financing

We finance our business using equity and a moderate level of debt. We value

long-term relationships with our lenders, prioritising the stability and understanding this provides over pursuing the very lowest funding cost, whilst also striving to be progressive and innovative in our approach.

Our core principle is modest financial leverage with generous interest cover, balancing the higher risk associated with regeneration activity while supporting our credit rating.

We use a combination of unsecured, flexible bank facilities to meet day-to-day requirements and longer term fixed rate debt from a variety of sources. This provides flexibility to take capital allocation decisions which may affect the size of our balance sheet, such as a return of surplus capital.

We maintain considerable headroom under our facilities, enabling us to act quickly on acquisition opportunities and providing confidence to stakeholders that our development pipeline can be delivered without overstretching the balance sheet.

1 3 4 5 6 7

1 2 3 4 6 7 8 9 10 11

D

Key

Performance measures Principal risks Emerging risks

‌28 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 29

Strategic objectives continued

Progress against 2025 priorities

Objective 2025 priorities Progress

Objective 2025 priorities Progress

Achieved In progress Not achieved

Maintain positive progress towards energy intensity reduction targets

Ensure our development pipeline continues to meet our embodied carbon targets

Progress Lochfauld Solar Park including commencement of solar panel installation

Progress concrete decarbonisation and circular economy initiatives

Review and expand material Scope 3 inventory elements

Launch of three-year funding option under our Community Fund

Energy consumption reduced by 6% to 48.7m kWh (2024: 51.8m kWh), equivalent to a 9% reduction in energy intensity to 125 kWh/sqm (2024: 137 kWh/sqm)

2025 embodied carbon intensity target achieved at 25 Baker Street (594 kgCO2e/sqm) and on target at Network (c.530 kgCO2e/sqm)

Installation of solar panels complete with cabling and other infrastructure works progressing; on track for energisation mid-2026

Low carbon concrete mixes selected for prototyping by AC-DG (see page 72) facilitated by member funding. Good progress on circular economy with reuse and retention across both major and smaller projects

The decision was taken not to pursue further upstream supply chain carbon emissions mapping at this stage

£450,000 committed for community funds covering 2025-2027, with three-year funding model in place

Repay convertible bonds due June 2025 £175m convertible bonds repaid on maturity in June 2025

Refinance main £450m bank facility Signed new four-year £450m RCF to July 2029 plus two one-year

extension options

Consider refinancing options for LMS bonds 2026

Maintain substantial headroom on financial covenants

Continue to maintain close relations with existing lenders

See Our 2026 priorities on page 27

New £250m 5.25% bond due in 2032 issued in June 2025

Interest cover remains strong at 3.1 times; property income could fall by 53% before breaching the interest cover covenant. High level of cash and undrawn facilities maintained (£627m at December 2025) and EPRA LTV remains low at 29.4%

Maintained regular dialogue with all our lenders throughout the year and hosted a number of property tours

To maintain strong and flexible financing

5

To design, deliver and operate our buildings responsibly

4

To attract, retain and develop talented employees

3

To grow recurring earnings and cash flow

2

To optimise returns and create value from a balanced portfolio

1

Strategic objectives

‌30 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 31

Audited A Assured A

talented employees buildings responsibly

To maintain strong and flexible financing

5

and operate our

4

and develop

To design, deliver

To attract, retain

3

To grow recurring earnings and cash flow

Remuneration R

2

and create value from a balanced portfolio

1

Strategic objectives

To optimise returns

Key performance indicators

We use a balance of financial and non-financial key performance indicators (KPIs) to measure our performance and assess the effectiveness of our strategy. They are also used to monitor the impact of the principal risks that have been identified and a number are used to determine remuneration.

Financial

1. Total accounting return (TAR) 3. Total shareholder return (TSR)

   TAR is used to assess the value we have delivered for investors and our goal is to outperform the average of major UK real estate companies (our 'benchmark').

   Our performance

   The Group's TAR in 2025 was 5.0% compared to the benchmark of c.4.9% based on current estimates. Our average annual return over the past five years is

   -0.8%, a 3.6% pa underperformance against the benchmark of 2.8%, mainly due to the office sector performing less well than other property sectors.

   TSR is used to measure the Group's success in providing above average

   long-term returns to its shareholders. We compare our performance against the FTSE 350 Real Estate Supersector Index, measured in accordance with industry best practice.

   Our performance

   The fall in the share price during the year, in comparison to those of our peers mainly invested in other property sectors, meant that the Group underperformed its benchmark index in 2025.

   10.3

   27.2

   -31.1

   2022

   -28.2

   2021

   1.5

   8.4

   2023

   -8.9

   2024

   -13.4

   2025

   -5.4

   2.9

   Strategic objectives

   1

   2

   3

   4

   5

   A

   R

   5.8

   17.8

   2021

   -6.3

   2022

   -11.7

   -14.1

   2023

   -0.6

   3.2

   2024

   4.9

   5.0

   6.2

   2025

   Weighted average of major UK REIT companies Derwent London
   
   

   1 2 3 4 5 R

   Strategic objectives

   FTSE UK 350 Supersectors Real Estate Index Derwent London
   
   

2. Total property return (TPR)

TPR is used to assess progress against our property-focused strategic objectives.

Our aim is to exceed the MSCI Central London Office Index on an annual basis and the MSCI UK All Property Index on a three-year rolling basis.

Our performance

Good progress on delivery and de-risking of on-site projects resulted in a 0.7% outperformance of the MSCI Central London Office Index during 2025. The Group's three-year rolling average TPR is 0.8% pa, a 2.7% underperformance against the MSCI UK All Property Index. This was mainly due to the strength of other sectors in previous years.

Annual

1. EPRA earning per share (EPS)

   EPRA EPS is the principal measure used to assess the Group's operating performance and a key determinant of the annual dividend. A reconciliation to the IFRS profit can be found in note 37 on page 265.

   1 2 3 5 A

   Strategic objectives

   Our performance

   2025		98.4
   024			106.5
   023		102.0
   022			106.6
   021			108.5

   EPRA EPS decreased 7.6% to 98.4p per

   share in 2025. This was mainly due to 2

   higher finance costs incurred in the year.

   2

   2

   2

   2021

   2022

   -7.9

   2023

   -7.3

   2024

   2025

   4.8

   5.5

   1.3

   4.1

   -8.0

   -3.4

   5.9

   6.3

   MSCI Central London Office Index Derwent London

   
   
   

2. Gearing and available resources

   Three-year rolling

   	2025				0.8			3.5
   	2024 -2.2	-1.5
   	2023	-1.5					2.1
   	2022				1.1	1.7
   Strategic objectives	2021							4.7

   1 2 3 4 R

   MSCI UK All Property Index

   Derwent London

   
   
   

   5.1

   The levels of cash and undrawn facilities,

   The Group uses EPRA LTV and NAV Our performance		2025	2024
   gearing to monitor its capital position. After net divestment in our portfolio of	EPRA LTV	29.4%	29.9%
   and uncharged properties remain under facilities at year end increased to £627m.	NAV gearing Cash and undrawn facilities	40.1% £627m	41.9% £487m
   and development opportunities. comfortable levels.	Uncharged properties	£4,754m	£4,665m

   regular review to ensure sufficient flexibility to take advantage of acquisition

   Strategic objectives

   5

   A

3. Interest cover ratio (ICR)

   We aim for interest payable to be covered by net rental income at least two times. The basis of calculation, which is detailed in note 39 on page 270, is in line with the covenant which forms part of our unsecured bank debt.

   Strategic objectives

   £37.2m in 2025, cash and undrawn

   EPRA LTV and gearing ratios have reduced in the year and remain at

   2025

   3.1x

   2024 3.9x

   2023 4.1x

   2022 4.2x

   2021 4.6x

   Our performance

   Net property income increased in the year but higher finance costs resulted in ICR decreasing in 2025. We retain substantial headroom to the main ICR covenant of 1.45 times; rental income would need to fall by 53% before it was breached.

   5 A

   ‌32 Derwent London plc Report and Accounts 2025

   Governance Financial statements Other information 33

   Audited A Assured A

   talented employees buildings responsibly

   To maintain strong and flexible financing

   5

   and operate our

   4

   and develop

   To design, deliver

   To attract, retain

   3

   To grow recurring earnings and cash flow

   Remuneration R

   2

   and create value from a balanced portfolio

   1

   Strategic objectives

   To optimise returns

   Strategic report

Key performance indicators continued

Non-financial

2024 57

2023 50

2022 49

2021 65

2025

72

1. Reversionary percentage (cash basis) 11. BREEAM rating

   This is the percentage by which cash flow from rental income would grow, assuming passing rent increases to the estimated rental value (ERV) and that on-site schemes are completed and fully let.

   This is used to monitor the Group's future income growth potential.

   Strategic objectives

   Our performance

   ERV increased by £14.8m to £335.3m in 2025. This was due to rental growth across the portfolio, partly offset by disposals in the year. The £141m potential reversion at December 2025 is 72% of passing rent (£195m), of which 38% is contracted.

   BREEAM is an environmental impact Our performance assessment for non-domestic buildings. 25 Baker Street W1 completed during the		Completion	Rating
   Performance ratings are: Pass, Good, year and received a final BREEAM rating	25 Baker Street W1	H2 2025	Outstanding
   Very Good, Excellent and Outstanding. of 'Outstanding'. Network W1 is expected	Network W1	H1 2026	Outstanding1
   'Excellent' for major developments and having received this at Design Stage.	1 Certified at Design Stage.

   We target minimum BREEAM ratings of 'Very Good' for major refurbishments.

   Strategic objectives

   to receive a final rating of 'Outstanding'

   1 2 5

   4

2. Development potential

   We monitor the proportion of our portfolio with refurbishment or

   Our performance

   At the end of 2025, major projects

   1. Energy Performance Certificate (EPC)

      redevelopment potential to ensure it contains sufficient opportunities for future value creation.

      egic objectives 2021					48
      nant retention
      ising tenant retention, in the Our performance	2025	2024	2023	2022		2021
      ce of regeneration plans, reduces Our retention and re-let rate was 71% in 1 eriods and vacancy levels, Exposure (£m pa)	21.1	17.9	21.5	13.2		19.7
      buting to net rental income. 2025. This was partly due to timing of Retention (%) breaks and expiries towards the end of	51	76	62	59		47
      the year. Re-let (%)	20	9	3	20		30
      Total (%)	71	85	65	79		77

      Strat

      represented 9% of the portfolio with a further 33% identified as potential schemes. Including the conditional acquisition of Old Street Quarter EC1, the development potential increases to 46%.

      efficient) to 'G' (inefficient). We target a

      EPCs indicate the energy efficiency of a Our performance		Completion	Rating
      building. The ratings range from 'A' (very Following completion, 25 Baker Street	25 Baker Street W1	H2 2025	A
      minimum EPC of 'A' for major	Network W1	H1 2026	A1

      developments and 'B' for major refurbishments.

      Strategic objectives

      received an EPC rating of 'A'.

      1. Targeted.

         1 R

         4

         2024 47

         2023 44

         2022 43

         42

         2025

3. Te

   Maxim absen void p contri

   Strategic objectives

   1 2 4 R

4. Void management

To optimise our rental income we plan to minimise the amount of space immediately available for letting. Our aim

Our performance

Our EPRA vacancy rate at year end was 4.1% and averaged 3.7% through 2025.

1 Rental income subject to tenant breaks or expiries.

Year end

2025

4.1

3.7

(%)

Average

(%)

1. Energy intensity

   Energy intensity is measured as energy consumption over the gross internal floor area (kWh/sqm) across our managed portfolio. In 2025, our energy intensity milestone was 131 kWh/sqm, aligned with achieving 90 kWh/sqm by 2030. Energy intensity will continue to be a nonfinancial KPI but will be removed as a remuneration KPI from 2026.

   Strategic objectives

   4 A R

2. Embodied carbon intensity

   Our performance

   Energy intensity across our managed portfolio decreased by 9% from 2024 to 125 kWh/sqm, a reduction of 25% compared to the 2019 baseline. The decrease relates to a series of proactive initiatives implemented by the Property Management team, including decarbonisation works, continued occupier engagement, MEP upgrades, streamlined plant run-times and enhanced out of hours usage monitoring.

   2025

   125(a)

   2024 137

   2023 149

   2022 142

   2021 139

   (a) Denotes metric has been subject to limited assurance by PricewaterhouseCoopers LLP in accordance with the ISAE 3000 (Revised) and ISAE 3410 Standards.

   is for this to remain below 10% of the

   portfolio's EPRA ERV.

   Strategic objectives

   1 2 R

   The increase compared to 2024 was mainly due to vacancies arising in Q4

   2024 3.1 3.2

   Embodied carbon intensity is measured as

   the carbon emissions generated in the construction of new developments (upfront carbon, modules A1-A5) divided by the new gross floor area, measured in kgCO2e/sqm. Our embodied carbon intensity targets are aligned with our net zero by 2030 pathway.

   Strategic objectives

   Our performance

   We worked closely with our designers and contractors to reduce the embodied carbon footprint at 25 Baker Street and Network. Both projects have an embodied carbon intensity of less than 600 kgCO2e/sqm, in line with our corporate targets.

   Completion kgCO2e/sqm

   25 Baker Street W1 H2 2025 594

   Network W1 H1 2026 c.530

   4 R

   ‌34 Derwent London plc Report and Accounts 2025‌

   Governance Financial statements Other information 35

   Strategic report

Key performance indicators continued

Property review

Non-financial continued

1. Accident Frequency Rate (AFR)

   This is calculated by multiplying the number of significant RIDDOR (Direct) injuries and incidents during the year by 1,000,000 and dividing by the total work exposure hours. This KPI, which was

   Our performance

   In 2025, the RIDDOR (Direct) AFR was

   0.44 with 1 RIDDOR (Direct) reported, down from an AFR of 1.35 and 4 RIDDORs in 2024.

   RIDDOR

   2025 0.44(a) 3.94

   (Direct) AFR

   Construction projects total RIDDOR AFR

   introduced in 2024, was previously based

   on total development RIDDOR injuries only.

   Strategic objectives

   4 A R

   2024 1.35 1.75

   2023 n/a 4.38

   2022 n/a 3.60

   2021 n/a 1.26

   (a) Denotes metric has been subject to limited assurance by PricewaterhouseCoopers LLP in accordance with the ISAE 3000 (Revised) Standard

2. Staff satisfaction

We assess employee satisfaction through an annual staff survey, and target a satisfaction rate above 80%.

Strategic objectives

3 R

Our performance

The measure of staff satisfaction was 86.5%. This strong level is testament to 2

our collaborative and supportive culture

and the pride our staff feel in working at 2

Derwent London.

2

2

Network W1

‌36 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 37

Property review

Valuation yields Portfolio reversion

10

8

6

4

2

% 12

0 2001

2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Our contracted annualised cash rent roll as of 31 December 2025 was £194.8m, with £53.5m of contracted uplifts, primarily from rent-free expiries and fixed uplifts. Under IFRS, these contracted uplifts are straight-lined in the income statement. Our annualised accounting rent roll was £210.4m. With a headline ERV of £335.3m, the components of our £87.0m valuation reversionary potential are:

• Major projects: £40.2m of project ERV on a headline basis, or

  £32.2m on an accounting basis. This comprises the two on-site developments at Network W1 (100% of office space under offer) and Holden House W1 with an ERV of £28.9m. In addition to the developments, there are two large West End refurbishments at Greencoat & Gordon House SW1 and Middlesex House W1 with a combined ERV of £11.3m.

  Derwent London true equivalent yield
  
  UK 10-year Gilt
  
  

  True equivalent yield

  BBB yield
  
  

  • Refurbishment projects: £17.4m of potential headline income from smaller projects (£13.9m accounting basis). These include rolling refurbishments at 1-2 Stephen Street W1 and Tea Building E1, as well as 1 Page Street SW1 where we are exploring alternative uses.

    % 6.0

• EPRA vacancy: £11.2m of 'available to let' space (£8.9m accounting basis). This includes recently refurbished space at 1

  Nigel George Executive Director

  18 0

  Oliver's Yard EC1, 1-2 Stephen Street W1 and 90 Whitfield

  42

  (4)

  5.5

  25

  5.0

  25

  42

  0

  6

  (4)

  3

  1

  3

  (6) (3)

  (3)

  (9)

  4.5 (15)(4)

  2 Street W1. Overall, this equates to a vacancy rate of 4.1%.

  • Reviews and expiries: £18.2m (£15.9m accounting basis) is from future reviews (£6.2m) and expiries (£12.0m, of which

£6.3m relates to near-term project commencements, mainly at 50 Baker Street W1 and 20 Farringdon Road EC1), less future fixed uplifts above the current ERV.

Valuation

4.0

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

The Group's investment portfolio was valued at £5.1bn as at 31 December 2025, up from £5.0bn at the end of 2024.

Including development properties, the underlying portfolio valuation increased by 1.7% with a surplus for the year of £67.5m which, after accounting adjustments of

£10.8m, produced an overall increase of

£56.7m.

Portfolio ERV growth, on an EPRA basis, was 4.0% over the year, in line with guidance. Following a period where property yields increased significantly, the portfolio's true equivalent yield, on an EPRA basis, was stable in 2025 at 5.71% (31 December 2024: 5.73%). However, excluding the impact of 25 Baker Street

W1, which completed in H2, the equivalent

Our central London properties, representing 98% of the portfolio, were up 1.5%. Values in the West End increased 2.2%, outperforming the City Borders which declined slightly, at

-0.9%. While the West End remains our strongest market, occupational demand is broadening across sub-markets, as cost and value become more important. The balance of the portfolio, our Scottish holdings, was up 13.1% following project completions and leasing activity.

We were on-site at three West End developments during the year. At 25 Baker Street W1, the offices and three of the retail units were pre-let with a further

two retail units leased post-completion

in Q3. At Network W1, the offices are now

representing 14% of the portfolio's valuation (December 2024: 12%). Adjusting for capital expenditure during the year, their values increased by 7.6%. Excluding these projects, the underlying portfolio valuation increased 0.8%.

The portfolio valuation uplift of 1.7% outperformed both the MSCI Central London Office Quarterly Index, which was up 1.1%, and the UK All Property Quarterly Index, which increased by 1.0%.

The stabilisation in valuation yields across the London office market contributed to a 5.5% total property return for our portfolio over the year. This compares to 4.8% for the MSCI Central London Offices Quarterly Index and 6.0% for the UK All Property

Portfolio income potential

Rental income (£m) 400

Reversion (%)

100

yield increased marginally by 5bp. The

under offer ahead of project completion

Index.

0 2021 2022 2023 2024 2025 0

300

75

200

50

100

25

EPRA initial yield was 4.0% (December 2024: 4.3%) which, after allowing for

which is expected imminently. Remaining capital expenditure to complete these

Rent reviews and lease renewals Under refurbishment / development Available to occupy

Reversion %

the expiry of rent frees and contractual uplifts, rises to 5.1% on a 'topped-up' basis (December 2024: 5.2%).

two developments totals £19m. At Holden

House W1, demolition commenced in Q3. These three properties were valued at £709.1m as at 31 December 2025,

Contractual rental uplifts (including pre-lets) Contractual rent

Members of the Investment and Valuation teams

‌38 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 39

Property review continued

Portfolio statistics - valuation

Vacant

Vacant

Valuation1

Let available refurbishment

Vacant project

Total

1. Contracted uplifts, rent reviews/lease renewal reversion and pre-lets.

2. Lease length weighted by rental income at year end and assuming tenants break at first opportunity.

3. 7.0 years after adjusting for 'topped-up' rents and pre-lets.

Valuation continued

Holden House W1

Rental value growth

%

Total property return

%

6 18

4

2

0

(2)

15

12

9

6.3 5.9

16.5

5.5 5.5 6.0

6

3

0

(3)

(6)

(3.4)

(1.0)

4.1

1.3

4.8

(8.0)

(7.3)(7.9)

(4) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Derwent London H1 growth

Derwent London H2 growth

(9)

(12)

(9.1)

2021 2022 2023 2024 2025

Derwent London MSCI Central London Offices¹ MSCI UK All Property¹

1 Quarterly index.

‌40 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 41

Property review continued Leasing and asset management

Central London Office Market

1 Based upon contracted net rental income of £194.8m.

Occupational market

Occupational activity across London continues to strengthen, reflected in elevated levels of viewings and sustained demand from a broad range of business sectors. Looking ahead, sentiment remains positive, with 80% of take-up in 2025 reflecting growth/expansion moves and occupiers increasingly focused on securing space in well-connected, central locations.

With a supply crunch anticipated in coming years and a strong level of demand, competition for best-in-class, sustainable buildings with good amenity and close proximity to the Elizabeth line or other transport hubs will drive rental growth. We are already seeing this growth spreading more broadly in respect of price point and location, reflecting a deeper, more balanced market which we expect to continue.

Supply constraints remain a structural characteristic of the

Available space by sub-market

Vacancy rate (%) 18

16

14

12

10

8

6

4

2

0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

West End

market. With limited new stock under construction, pre-letting activity remains solid and grade A vacancy rates across central London are sub-2%. This imbalance between supply and demand is significant and scarcity of space of the quality the market is looking for is expected to become more pronounced over the coming years.

In this environment, we will see a continuation in the trend of occupiers renewing where the space works for their businesses. For occupiers, the 'stay put' option removes uncertainty and cost. For landlords, it supports income security and creates opportunities to extend lease lengths, enhance occupancy and capture rental growth.

City Docklands Central London

Central London office take-up

18

16

14

12

10

8

6

4

2

Take-up (million sq ft) 20

Source: CBRE

80%

0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

City

Docklands, Midtown & Southbank Source: CBRE

West End

of new leases are for expansion

Central London development pipeline

Floorspace (million sq ft) Vacancy rate (%)

12 12

10

10

8

8

6

6

4

4

2

2

2001 2003 2005 2007 20092011 2013 2015 2017 2019 2021 2023 2025 2027 2029

1 Stephen Street W1

Under construction available Under construction let/under offer Completed

Completed average

Vacancy rate Source: CBRE

‌42 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 43

Property review continued

Leasing activity in 2025 to date

Area

Let

Income

WAULT1

Performance vs Dec 2024 ERV (%)

Open

1. Weighted average unexpired lease term (to break).

2. Includes short-term lettings at properties earmarked for redevelopment.

3. 'Furnished + Flexible'.

Principal lettings in 2025

Rent free Total annual Lease term Lease break equivalent

Leasing and asset management

Leasing

In 2025, we completed £11.3m of new lettings across 233,400 sq ft, comprising 54 transactions, with open-market rents agreed 9.9% ahead of December 2024 ERV. Demand was resilient across the portfolio, broadly split between the West End and City Borders, and across HQ and Flex. Excluding pre-lets, leasing volumes for the year were in line with the Group's long-term average, demonstrating the underlying consistency of demand for the portfolio through the cycle.

Rental income (£m pa) Rental income (£m pa) Number of transactions

45 70 140

40

35

30

25

20

15

10

5

60

120

50

100

40

80

30

60

20

40

10

20

0 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025YTD 0 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0

Pre-lets Non pre-lets

Non pre-let average

2026

Regears Number of transactions

Under offer In negotiations

Lease renewals

Rent reviews

‌44 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 45

Property review continued



Leasing and asset management continued

Key transactions include:

• Horseferry House SW1: a lease regear was completed with Burberry, extending the lease term from 2038 to 2043 (without breaks) and increasing the unexpired term to 17.6 years. The 2033 open market rent review and 2038 expiry were replaced with new five-yearly fixed uplifts, improving income visibility and providing greater certainty over future cash flows.

• White Collar Factory EC1: a major lease regear with Adobe, extending the lease term and increasing their total space by 25% to 67, 000 sq ft. The transaction aligned Adobe's leases to expire in 2038, with a tenant-only break in 2033, improving the

Ten-year vacancy trend

Vacancy rate (%) 10

8

7

6

5

4

3

2

1

9

The weighted average unexpired lease term (WAULT) to break across the portfolio is 6.0 years and the 'topped-up' WAULT (adjusted for pre-lets and rent-free periods) is 7.0 years.

Portfolio vacancy

The EPRA vacancy rate increased by 100bp through 2025 to 4.1% (December 2024: 3.1%), with an ERV of £11.2m. In addition, there is a further £57.6m of rent classified as project space, split

£40.2m at major projects and £17.4m at smaller refurbishments. In total, 71% of breaks/expiries were retained or re-let prior to the end of the year, excluding space taken back for projects and disposals. This is below the Group's 10-year average of 83% because units with a passing rent of £3.3m were vacated during Q4, leaving insufficient time to complete our asset improvement plans prior to year-end.

income profile of the building, increasing the WAULT to break

to 8.3 years. This was Adobe's fourth expansion since they first

0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Members of the Development, Leasing and Marketing teams

took occupation in 2017.

• 80 Charlotte Street W1: BCG's rent review across levels 4-8 (163,700 sq ft) secured an uplift of 8.4% against the previous rent and a 5.1% premium compared to the December 2024 ERV.

  CBRE central London offices (by floorspace)
  
  CBRE West End offices (floorspace)
  
  Derwent London (by rental value)
  
  

  Average unexpired lease length

  Source: CBRE

  Asset management activity

  We had a record year of asset management in 2025 with £58.9m of completed transactions, nearly 30% above the previous strongest year (2019). The Group's main focus has been to capture reversion, extend income and align lease profiles with asset strategies and future development plans. On average, the 74 transactions delivered a 6.4% uplift in rent.

  This exceptional level of activity was driven by early and proactive engagement with occupiers. Our relationship-led approach enables us to structure transactions that balance flexibility with longer-term income visibility, while mitigating void risk and capital expenditure.

  Rent reviews totalled £37.4m and we saw strong reversion captured with reviews settled on average 7.3% ahead of the previous rent.

• Brunel Building W2: 2025 saw the completion of the first round of rent reviews since the building completed. The average uplift across all occupiers was 5.1% compared to the headline rent.

  Years 12

  10

  8

  6

  4

  2

  0 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

  West End
  
  City Borders
  
  Central London
  
  

  Lease expiry and break analysis

  %

  100 11 8 10

  90

  Asset management

  Area Previous rent New rent1

  New rent vs Dec 2024

  Activity excluding short-term development facilitation transactions

  Lease renewals

  Lease regears

  1 Headline rent, shown prior to lease incentives.

  37

  11

  149.0

  297.1

  5.4

  14.8

  5.6

  15.7

  3.5

  5.9

  2.1

  0.1

  80 26 35 14

  70

  	Number	'000 sq ft	£m pa	£m pa	Uplift %	ERV %
  Overall
  Rent reviews	22	448.8	34.9	37.4	7.3	5.1
  Lease renewals	39	157.2	5.5	5.7	3.4	-0.4
  Lease regears	13	303.2	15.0	15.8	5.6	-0.6
  Total	74	909.2	55.3	58.9	6.4	3.0

  60

  50

  40 76

  57

  63

  30

  20

  10

  10 13

  7 23

  22

  30

  83

  65

  47

  21 15

  29

  35 9

  20

  3 20

  76

  59 62

  51

  0 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

  Retained Re-let
  
  Vacant Average retained/re-let (83%)
  
  

  Members of the Asset, Property and H&S teams

  ‌46 Derwent London plc Report and Accounts 2025‌

  Governance Financial statements Other information 47

  Strategic report

Investment and regeneration

Central London Office Market

Investment market

Transactional activity in central London strengthened markedly during 2025, with investment volumes rising to £7.1bn, a 46% increase year-on-year, with improved liquidity evident across core City and West End locations.

The average lot size also increased materially, with 20 transactions in excess of £100m, almost double the level seen in 2024. This re-emergence of demand for larger assets has improved pricing transparency, providing additional evidence across different sub-markets. Prime assets in the West End continue to command sharper pricing, while good quality, income-producing buildings outside the core are also attracting interest.

Investor sentiment was more cautious earlier in the year but improved towards the year end. The absence of material policy changes affecting commercial property in the Autumn Budget helped restore confidence, while ongoing geopolitical uncertainty has further reinforced London's position as one of the world's

Central London office investment transactions

Investment transactions (£bn) 22

20

18

16

14

12

10

8

6

4

2

Average

0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Source: CBRE

leading locations for long-term capital. Against this backdrop, a broader range of investors have been active in the market.

Looking ahead, more favourable credit market conditions and continued expectations of rental growth, combined with improving liquidity and clearer pricing, are expected to support investment activity through 2026. Demand remains focused on core-plus and value-add opportunities, where strong occupational fundamentals and supply-demand imbalances offer the potential for attractive returns.

While appetite for core income remains more selective, the gap in pricing between core and higher-returning strategies continues to narrow. Against this backdrop, conditions are increasingly supportive for disciplined capital recycling and selective value realisation.

Central London office yields

Prime office yield (%) 7.0

6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025

Paul Williams Chief Executive Nigel George Executive Director

West End

City

Source: CBRE

Developments and refurbishments

Central London office stock

We successfully completed our major development at 25 Baker Street W1 in H2 2025 and Network W1 is due to complete imminently, delivering high quality buildings into well-connected central London locations. At Holden House W1, which began in August 2025, good progress is being made with demolition, and strip-out works have just commenced at Greencoat & Gordon House SW1.

Source: CBRE

Preparatory work continues for 50 Baker Street W1 with a proposed start in 2026.

Looking forward, Holden House, Greencoat & Gordon House and Middlesex House are expected to deliver a combined ungeared IRR of >10% and a yield on completion of >6.5%. At 50 Baker Street, we forecast an ungeared IRR of >12%.

Located in strong occupier sub-markets, we are confident that we will outperform appraisal rents in the increasingly

supply-constrained market, driving an increase in profitability.

The timing and phasing of future commitments will be considered within the context of our capital allocation framework, ensuring disciplined and flexible deployment of capital.

Completed/near completion projects - 439,200 sq ft

• 25 Baker Street W1 (298,000 sq ft) -office-led scheme in Marylebone: the office element 100% pre-let. Physical completion was achieved on programme; practical completion was slightly delayed to August 2025 due to timing of sign off by the Building Safety Regulator. With fit-out works progressing the first tenants are now in occupation, following lease commencements from September 2025. The scheme made a positive contribution to earnings in 2025. In addition, 24 of the 41 private residential units have been sold. Completion

  marks an important milestone in realising value from this major development, with a profit on cost of 21%, yield on completion of 7.5% and ungeared IRR of 11.3%.

• Network W1 (141,200 sq ft) - office-led scheme in Fitzrovia: completion is due imminently. All of the office space is under offer.

  ‌48 Derwent London plc Report and Accounts 2025‌

  Governance Financial statements Other information 49

  
  
  
  
  

  Strategic report

Property review continued

1. As at 31 December 2025.

2. Comprising book value at commencement, capex, fees and notional interest on land, voids and other costs.

3. Embodied carbon intensity estimate as at stage 4.

4. On main commercial building.

Members of the Development team

Major projects - 291,300 sq ft

• Holden House W1 (on-site H2 2025; 133,500 sq ft) - office-led scheme in Fitzrovia: good progress is being made on demolition works at this retained façade development. Kier has been appointed under a pre-construction services agreement for the main construction works. Located opposite the Dean Street Elizabeth line station, this scheme is well-located to benefit from current occupational trends and we are confident in its leasing prospects. Completion is expected in H2 2028.

• Middlesex House W1 (on-site H1 2026; 50,000 sq ft) - office-led scheme in Fitzrovia: early strip-out works underway and the main contractor has been appointed, with construction works commencing in H1 2026. The scheme, where we are appraising a managed solution as part of the repositioned product, is targeting completion in February 2027.

• Greencoat & Gordon House SW1 (proposed H1 2026 start; 107,800 sq ft) - comprehensive refurbishment: vacant possession is imminent and works are proposed to commence on site in H1 2026. Following successful leasing campaigns at the adjacent 6-8 Greencoat Place and Francis House, as well as the lack of competing heritage supply in Victoria, we are confident that there will be strong occupier demand. Completion is anticipated in H2 2027.

  50 Baker Street W1 - 236,000 sq ft (proposed 2026 start)

  • Office-led scheme in Marylebone: preparatory work continues for this high quality redevelopment located adjacent to 25 Baker Street, which is already reversionary. Detailed designs are progressing, a new long headlease was agreed in 2025 with The Portman Estate, the freeholder, and contractors have been engaged, as the scheme advances towards proposed commencement in the middle of 2026. Marylebone is one of London's strongest sub-markets and there is demonstrable demand for large floorplates which are in short supply in the West End.

    Future development projects - Four schemes totalling c.1.2m sq ft

    The Group's medium to longer-term pipeline extends to c.1.2m sq ft across four major schemes. We are actively exploring alternative, including living-led uses, to maximise long-term value potential at several of these properties. Where appropriate, we will consider working with specialist partners.

  • 20 Farringdon Road EC1 (167,000 sq ft) - potential to commence in H1 2027: an office-led repositioning and comprehensive refurbishment adjacent to Farringdon Elizabeth line station.

  • Blue Star House SW9 (86,100 sq ft) - potential to commence in 2027: working with living specialist Astir, resolution to grant planning consent was obtained in H2 2025 for a hotel-led redevelopment with supporting workspace and public realm, designed to extend the existing structure and optimise the site's potential.

  • Old Street Quarter EC1 (750,000+ sq ft) - potential to commence from 2028. The acquisition of this 2.5-acre island site is scheduled to complete from late 2027 (for £239m), conditional on delivery by the vendor of the new eye hospital at St Pancras and subsequent vacant possession. A strategic partnership with Related Argent has been formed to masterplan a flexible mixed-use, living-led campus-style redevelopment, targeting an increase in floor area of approximately 80%, which can be delivered in phases. A planning application is targeted for H1 2027.

  • 230 Blackfriars Road SE1 (200,000+ sq ft) - potential to commence from 2030. Early feasibility work indicates capacity for a substantial mixed-use redevelopment of the existing 1970s building. There is potential to more than triple the current floor area, subject to regearing of the headlease.

    Refurbishments

    Alongside major projects, phased or rolling refurbishment is an important part of our approach to ensuring our buildings remain competitive as occupier requirements evolve. These projects are designed to deliver attractive rental uplifts, enhanced amenity and improved EPC ratings. Annual capital expenditure on rolling refurbishments is typically between £25-50m.

• Works completed at 1 Oliver's Yard EC1 (31,000 sq ft) in 2025, with upgrades to the courtyard, reception, workspace and amenities. The refurbishment has significantly improved product quality and rental performance, with space previously achieving £60 psf now targeting an ERV in excess of £70 psf. Further works on 25,000 sq ft are expected in 2026.

  Lochfauld solar park, Scotland

  Lochfauld solar park is a c.100-acre, 18.4 MW solar development forming part of the Group's Scottish portfolio and is an important component of our Net Zero Carbon Pathway. Once operational, the park is expected to generate c.40% of the London managed portfolio's electricity requirements, materially reducing reliance on external supplies.

  During 2025, the majority of the construction and installation phases were completed. All solar panels have been installed, together with the supporting frames, cabling and the on-site electrical systems required for grid connection. Associated site infrastructure, including access roads, drainage and security systems, has also been completed. With these elements in place, power-on and energisation is expected in H1 2026.

  Based on the current development appraisal, the project is expected to deliver an attractive yield on cost in excess of 9%, with net annual income of c.£1.5m after operating costs. The development delivers both a compelling financial return and long-term strategic value as part of the Group's sustainability and decarbonisation objectives.

• Works continue at 1-2 Stephen Street W1 (27,200 sq ft), where the rolling refurbishment programme has driven a step-change in rental performance, with ERVs on this space ranging from £87.50 to £97.50 psf, compared with previous passing rents of c.£73 psf.

  ‌50 Derwent London plc Report and Accounts 2025

  Governance Financial statements Other information 51

  Strategic report

Property review continued



Disposals and acquisitions

Disposals

Disposals in 2025 totalled £216.1m. The principal transactions in the year were:

factors were released in early July. Electricity factors are 15% lower compared to 2024 as further progress has been made decarbonising the UK's electricity grid. Applying these factors to our 2025 consumption, our location-based operational GHG emissions (Scopes 1, 2 and 3, excluding embodied carbon) reduced by 16% to 10,434 tCO2e compared to 2024.

72% of our portfolio rated EPC A or B

To ensure compliance with evolving EPC legislation, we have a clear programme of upgrade works phased over the coming years. With 72% of our portfolio already rated EPC A or B (including 25 Baker Street W1 and Network W1) and a further 16% rated EPC C, we remain very well placed ahead of potential legislation changes in future.

signatory of the Advanced Market Commitment (AMC), a government funded initiative aligned with the AC-DG. The aim of the AMC is to signal to the supply chain that low carbon concrete is a priority for industry. Derwent London has committed to procure at least 5% of concrete in line with AMC requirements.

9%

reduction in energy intensity

‌52 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 53

Finance review

Damian Wisniewski Chief Financial Officer

Introduction

Derwent London produced a solid financial performance in 2025 amid an increasingly encouraging backdrop for the London office sector. Our total accounting return for the year rose to 5.0% helped by a small rise in property income and portfolio valuations up by 1.7%. IFRS earnings per share increased by 39% to

143.5p and administrative expenses were reduced by 4.9% compared to 2024. Our development projects continued to add value and, looking ahead, we expect development returns and the subsequent growth from recently-completed schemes to continue to outperform. An increased level of disposals in 2025 of £216.1m included £135.9m of trading sales, helping boost operating cashflow strongly. It also led to reductions in borrowings and net debt with net debt/EBITDA falling back to

9.0 times and EPRA loan-to-value ratio to 29.4%.

However, we know that there is more to do in 2026. With over £270m already exchanged or under offer in 2026 to date, we are targeting higher disposals into a more receptive investment market and have clear parameters for capital allocation into development and refurbishment projects. The cost of capital in our sector appears to have risen in 2025 and sets a high bar for real estate investment. This demands ever more vigilant cost analysis and discipline, meaning that some of our projects which were previously viable may now require alternative strategies. We are also looking at other forms of capital allocation that can bring nearer-term upside.

Financial highlights

Total net assets

£3,615.3m

Dec 2024: £3,539.8m

EPRA NTA per share

3,225p

Dec 2024: 3,149p

EPRA NDV per share

3,302p

Dec 2024: 3,261p

Property portfolio at fair value

£5,093.9m

Dec 2024: £5,041.1m

Gross property and other income

£406.3m

Dec 2024: £276.9m

Net rental income

£190.0m

Dec 2024: £189.6m

IFRS profit before tax

£161.5m

Dec 2024: £116.0m

EPRA earnings per share (EPS)

98.4p

Dec 2024: 106.5p

Interim and final dividend per share

81.5p

Dec 2024: 80.5p

EPRA LTV ratio

29.4%

Dec 2024: 29.9%

Net interest cover ratio

3.1x

Dec 2024: 3.9x

Net debt/EBITDA

9.0x

Dec 2024: 9.3x

For 2026, we are targeting further reductions in our cost base through process efficiencies and reducing irrecoverable property costs. Furthermore, substantial refinancing in 2025 has prepared us for the repayment of £230m of relatively expensive fixed rate debt in early 2026; however, the higher interest rates post refinancing in June 2025 caused EPRA earnings to decline in H2 2025. We now expect our average spot interest rate to fall slightly during 2026 and then remain relatively stable until 2031.

Our well-located and amenity-rich product remains in strong demand in an increasingly supply-constrained market and we are expecting rents to continue outpacing costs for some time. After a dip in H1 2026 before rent at Network W1 is recognised in the income statement, we see EPRA earnings returning to growth in 2027 with our outlook for 2030 around 25-30% higher. The medium-term outlook for the Group's total accounting return (TAR) is also the strongest for some time, helped by the rental growth outlook, improving development returns and stable investment yields.

‌54 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 55

Finance review continued

Property and other income

Gross property and other income increased substantially to

£406.3m for the year ended 31 December 2025 from £276.9m in 2024. This was mainly due to trading property proceeds of

£118.1m (2024: £3.7m) from the sale of 24 out of 41 apartments at

EPRA net tangible assets per share

Pence 3,500

In addition, the revaluation surplus for our head office was £4.5m in 2025 (2024: £2.9m); this was subject to a deferred tax adjustment of £1.1m (2024: £0.6m) as it is outside the REIT regime with both of these amounts included within the consolidated statement of comprehensive income rather than the income

lettings and reviews but also reflecting slightly higher vacancy across the portfolio. LFL net rental income was up 1.4% and LFL net property income, which takes account of dilapidations and other property income, was up 1.2%.

Taxation

George Street W1, part of our 25 Baker Street W1 scheme. The related profit on sale was £4.2m after allowing for the cost of affordable housing. Additional proceeds of £17.8m (2024: £nil) came from the disposal of trading stock on retail units already

3,250

1. 6

+2.4%

statement.

In addition to the trading activity noted earlier, we disposed of two investment properties during the year with combined

The Group's tax charge for 2025 was £0.4m (2024: £0.1m). This was due to movements in deferred tax as a result of the utilisation of previously recognised tax losses and a reduction in

passed over to the freeholder on re-gearing of the headlease.

Gross rental income also increased, rising to £218.3m from

£214.8m in 2024 with 25 Baker Street contributing £5.4m of new rent. Other lettings and reviews were approximately matched by units becoming vacant including Middlesex House W1, Greencoat and Gordon House SW1 and Holden House W1 where schemes commenced or are planned. Surrender premiums fell to £0.3m from £2.7m the year before.

Irrecoverable service charge costs were unchanged at £6.6m but other property costs rose to £19.8m from £18.2m in 2024. Most of this increase came from £1.5m of additional legal and letting costs plus £0.7m of marketing costs, the latter principally at Holden House.

Impairment charges in relation to planning costs at Old Street Quarter EC1 increased to £1.4m from £0.2m in 2024 with a further charge of £0.5m (2024: £0.2m) relating to receivables. We have seen continued strong rental and service charge collection rates exceeding 99% through the last year.

Taking account of these costs, net rental income increased marginally to £190.0m from £189.6m in 2024. Taking further account of surrender premiums, the trading profits noted earlier, dilapidation receipts, other property income and management fees, net property and other income increased to £199.6m from

£198.3m in 2024.

Administrative expenses and EPRA cost ratios

As noted last year, managing our costs and looking for efficiencies was a particular focus in 2025 and will continue to be so in 2026. As a result, the Group's administrative expenses fell to

£39.1m from £41.1m a year earlier, the 4.9% decrease coming mainly from a 4.7% drop in staff costs despite increases

3,000

2,750

31 Dec 2024

EPRA earnings

Dividends paid

Profit on disposal

Other

Revaluation surplus

31 Dec 2025

2,500

EPRA earnings

£m 140

100

80

60

(2.2)

(7.6)

98.4p

per share 4.2 per share

(2.7)

(2.5)

102.1p

2.4

106.5p

per share 3.5

120 119.5

2024 EPRA

earnings

Gross rental

income

Surrenders and other

Property expenditure

Admin expenses

Net finance

costs

Other

2025 EPRA

earnings

Trading disposal

profits

2025 adjusted

earnings

40

Movement in gross rental income

£m

proceeds of £80.2m. This was split £26.0m for the freehold

interest in 4&10 Pentonville Road N1 and £54.1m for the freehold in Francis House SW1 and gave rise to a small combined loss on disposal of £2.2m after costs. In 2024, investment property disposal proceeds were slightly higher at £87.5m and provided a

£2.1m net profit on disposal.

The profit from operations therefore increased to £210.5m in 2025 from £156.4m in the prior year.

The other main income statement items are finance income and costs. The net finance cost for 2025 increased to £48.4m (2024:

£39.6m) partly due to higher average borrowings in 2025 but more impacted by the increase in our weighted average interest rate following the mid-year refinancing. Also included in finance costs in 2025 was a £1.2m settlement cost for an interest rate hedge taken out in connection with the £250m bond issue in June. Given the volatility at the time, we opted to hedge but rates fell through the period when pricing was at risk giving rise to this charge; we will get the benefit of slightly lower rates through the 7-year period of these 5.25% bonds. In 2025, we capitalised interest on projects totalling £14.1m (2024: £11.2m).

The Group's interest rate swaps also terminated in 2025 and showed a fair value loss on derivative financial instruments of

£0.6m (2024: £2.3m loss).

There was no contribution from joint ventures this year but the prior year included a £1.5m profit from our share of the 50 Baker Street joint venture up to the point of termination in October 2024.

IFRS profit before tax and EPRA earnings per share

The IFRS profit before tax, which includes fair value movements such as the property revaluation passing through the income statement, increased to £161.5m (2024: £116.0m) and IFRS diluted

the deferred tax asset on share based payments.

As in previous years, the majority of our income was exempt from corporation tax as it is derived from a qualifying property rental business under the UK REIT regime. The related requirement to pay a PID (property income distribution) meant that £11.0m (2024: £9.8m) of withholding tax was paid to HMRC instead.

Derwent London's principles of good governance extend to a responsible approach to taxation. Our tax affairs are led by an experienced Head of Tax, we have a low tax risk tolerance and continue to retain the low-risk status which HMRC granted in the Business Risk Review in July 2023. We have an open dialogue with HMRC in relation to our tax affairs, work collaboratively with them to ensure that we pay the correct amount of tax on time and engage proactively with them on proposed changes to legislation.

Our statement of tax principles is available on our website www. derwentlondon.com/investors/governance/tax-principles and is approved by the Board in line with the Group's long-term values, culture and strategy.

Dividend

Our policy aims for progressive annual increases but a payout well-covered by EPRA earnings after taking account of our duties to other stakeholders. The board is recommending another 0.5p per share increase in the final dividend to 56.0p, of which 40.0p will be a PID and the balance of 16.0p as a conventional dividend to be paid in May 2026. The Company's ISIN reference is GB0002652740.

Developments

Breaks, expiries

& voids

Acquisitions & disposals

31 Dec

2025

Our dividend policy remains unchanged and this year's proposed final dividend will make this the 18th year of consecutive increases in our interim/final dividends since the formation of

averaging 5.9% for staff and 3.5% for directors. Out of £28.3m

(2024: £29.7m) of staff costs, £2.7m (2024: £2.5m) of internal costs were capitalised in accordance with IAS16 and £2.7m (2024:

£2.7m) was recovered via service charges. Total average headcount increased by eight, though five of these are recovered in full or in part via service charges.

Our EPRA cost ratio excluding direct vacancy costs increased to 22.4% (2024: 21.7%) and, including direct vacancy costs, the

figure increased marginally to 27.3% from 27.0% in 2024.

Other income statement items

31 Dec

2024

Lettings & asset management current year

Lettings & asset management prior year

After accounting adjustments which mainly comprise straight-lining lease incentives and grossing up headlease liabilities, the revaluation surplus on investment properties which passed through the income statement increased to £52.2m after a small deficit of £2.7m in 2024.

250

4.6

3.0

(10.2) (0.2)

218.3

200

150

100

50

0

6.3

earnings per share rose to 143.5p (2024: 102.9p).

EPRA earnings per share adjust for the fair value movements and certain other items. As previously guided, they were lower in 2025 at 98.4p per share (2024: 106.5p) largely as a result of the higher interest rates following refinancing during the year. Note that the

£4.2m trading profits on residential apartment sales at George Street are excluded from EPRA's definition of earnings. Providing these apartments and affordable housing was an important and necessary part of our development activity at this mixed use scheme and adding these profits back for 2025 takes adjusted earnings per share to 102.1p.

A table showing a reconciliation of the IFRS and adjusted results to EPRA earnings per share is included in note 37.

Like-for-like rental income

Like-for-like (LFL) gross rental income increased by 2.4% in 2025, showing the impact of rental uplifts being captured on new

Derwent London plc in 2007. We also paid special dividends in 2017 and 2018.

This will take the total dividend for the year to 81.5p, a 1.2% increase over the previous year. Dividends paid and declared in relation to 2025 earnings were 1.2 times covered by EPRA earnings and 1.3 times by adjusted earnings.

Net asset values and total return for the year

Derwent London's total net assets increased during 2025 to end the year at £3,615m, up 2.1% from £3,540m in 2024. EPRA Net Tangible Assets (NTA), our main net asset performance measure, increased to 3,225p per share on a diluted basis from 3,149p a year earlier. The principal movements during the year were our recurring income as measured by EPRA earnings, the revaluation surplus and overall profit from disposals less ordinary dividends and PID paid in the year.

‌56 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 57

Finance review continued

Opening EPRA NTA

Revaluation movement Profit on disposals EPRA earnings

Ordinary dividends paid Other

Closing EPRA NTA

2024

p

3,129

(8)

2

106

(80) -

3,149

2025

p

3,149

51

2

98

(81)

6

3,225

Adding back dividends paid, our total accounting return (TAR) for 2025 was 5.0%, indicating a further improvement in conditions for our sector after several challenging years. In 2024, when valuation declines started to reverse, our TAR was 3.2% following negative returns in both 2022 and 2023. Most of these valuation impacts came from yield adjustments as the era of quantitative easing ended after a sustained period of very low interest rates. Modest rental growth continued during this time and has accelerated for the better-quality space in which we specialise while yields have essentially stabilised.

EPRA Net Disposal Value (NDV), which takes account of a positive £96.6m fair value adjustment from our fixed rate debt and bonds, increased to 3,302p per share from 3,261p at

31 December 2024.

Property portfolio and other fixed assets

Our property portfolio is externally valued at six-monthly intervals by Knight Frank and, at 31 December 2025, the fair value increased to £5,094m from £5,041m a year earlier. We are required to make adjustments from fair value to carrying value for accounting purposes to recognise tenant incentives through earnings on a straight-line basis. In addition, letting costs are spread over the life of each lease and headlease liabilities are grossed up. After these adjustments, the total property carrying value was £4,915m at 31 December 2025 (2024: £4,861m).

Property additions in 2025 totaled £178.6m (2024: £242.0m), mostly made up of capital expenditure of £156.1m (2024: £182.1m) and capitalised interest and overheads of £16.5m (2024: £12.9m). The majority of expenditure in 2025 was incurred on the two large development projects at 25 Baker Street W1 and Network W1, costs on these alone totaling £82.6m. As these two projects were close to their maximum cumulative levels in 2025, capitalised interest was relatively high at £14.1m (2024: £11.2m) and we expect it to fall back considerably in 2026.

The combined carrying value of the property disposals noted above increased to £186.7m from £82.9m in 2024. Other property, plant and equipment increased to £68.1m from £52.0m in December 2024, the main reason being additions at our Lochfauld solar park in 2025 of £9.7m plus a transfer from prepayments of £2.5m as the costs now meet the criteria for recognition as fixed assets. Also included in this category is the owner-occupied property comprising our head office at 25 Savile Row W1, where the carrying value at 31 December 2025 was

£53.5m (2024: £49.0m).

Old Street Quarter EC1

We are due to acquire this substantial Old Street site no earlier than mid-2027 subject to the vendor providing vacant possession. The agreed acquisition price is £239m less the £3m deposit paid at exchange. Including the deposit, we have now incurred costs associated with master-planning, design and planning application preparation totaling £12.0m net of impairment. In 2025, after a detailed review, we impaired a further £1.4m of these costs. At the point of acquisition, the balance of these costs will be allocated and included within investment property at fair value together with the remaining acquisition price paid. We are now working with our strategic development partner, Related Argent, to optimise our plans for this unique site. This will influence the future fair value at the point of acquisition and beyond.

Cash flow, borrowings and net debt

The cashflow generated from our operations increased substantially in 2025 due mainly to the sale of apartments at George Street W1, part of the 25 Baker Street scheme. The net cash from these sales received by the Group in 2025 was £115.8m after costs but including a small affordable housing receipt. We also received £17.8m in 2025 on the disposal of trading stock to the freeholder in relation to the same scheme. These expected cash inflows were explained in previous reports, offsetting the related cash outflows included as a deduction against operating cashflow in the last few years as we built out the trading properties and trading stock. Partly as a result, the net cash from operating activities shown within the consolidated cash flow statement increased from £64.6m in 2024 to £228.0m in 2025.

We expect further sales to complete in 2026 but the figure will be substantially lower than in 2025.

Having issued new £250m unsecured bonds in June 2025, we ended 2025 with a higher cash balance than usual at £131.7m. Of this amount, £29.3m related to tenant rent deposits and £25.2m to service charge balances so the unrestricted cash available to the Group was £77.2m (2024: £15.4m).

Property disposals in 2025 brought net debt down to £1.45bn from £1.48bn in 2024, with net debt to EBITDA falling to 9.0 times (2024: 9.3 times) and EPRA loan-to-value ratio to 29.4% (2024: 29.9%). Both these 2025 year-end figures are within our target ranges. Year-end borrowings were marginally higher than 2024 at

£1.49bn because we had no further revolving credit facilities to pay down. However, borrowings have fallen back in early 2026 as

£55m of fixed rate private placement notes were repaid at maturity using the excess cash. Note that borrowings shown as current liabilities at the year end included these USPP notes and the £175m LMS bonds due in March 2026.

At 31 December 2025, available cash and undrawn facilities increased to £627m (2024: £487m). This figure will reduce in Q1 2026 as the £230m of USPP notes and bonds reach maturity.

Drawn

£m

175.0

350.0

250.0

455.0

1,230.0

-

-82.5

82.5

100.0

265.0

1,495.0

1.8

(2.3)

(7.9)

1,486.6

41.0

(77.2)

1,450.4

Undrawn

£m

-

-

-

-

-100.0

450.0

-

-

-550.0

550.0

Total

£m

175.0

350.0

250.0

455.0

1,230.0

100.0

450.0

82.5

82.5

100.0

815.0

2,045.0

Maturity

2026

2031

2032

2026 - 2034

2027

2029

2027

20281

2028

Debt facilities and reconciliation to borrowings and net debt at 31 December 2025

Secured bonds Green bonds Non-green bonds

Private placement notes

Non-bank debt Revolving credit facility Revolving credit facility Term loan

Term loan Term loan

Committed bank facilities Debt facilities

Acquired fair value of secured bonds less amortisation Unamortised discount on unsecured bonds Unamortised issue and arrangement costs Borrowings

Leasehold liabilities

Cash and cash equivalents Net debt

1 Maturity following the facility extension in January 2026.

Debt and financing

Debt markets generally continued their improving trend through most of 2025, helped by a gradual reduction in UK base rates, moderating (but sticky) inflation and a reasonable UK growth outlook. Business and economic uncertainty was, however, a continuing theme through 2025 particularly in the middle part of the year leading up to the late November budget.

Speculation remained as to where the 5- and 10-year gilt rates will eventually settle. Volatility has continued with the range of

5-year rates around 80bp over 2025, for example, but the general trend is modestly downwards. UK base rates, currently 3.75%, are also expected to fall to around 3.5% by the end of 2026. At

31 December 2025, the 5-year gilt was 3.9% but the 10-year remained stubbornly higher at 4.4%. Meanwhile, the 5-year SONIA swap continues to show a worthwhile benefit over the equivalent gilt and was as low as 3.6% at year-end.

Credit spreads in the bond market have also been relatively attractive and the banking market remains competitive for borrowers of good investment-grade credit-quality. In May, we maintained a Fitch issuer-default rating of BBB+ and A- for our senior unsecured debt rating, both with a stable outlook. Keeping our credit rating secure is a key business priority and we now target an EPRA LTV ratio below 30% and net debt/EBITDA below

9.5 times.

2025 was an active year for refinancing due partly to the maturity of £175m of convertible bonds last June but also because we opted to take advantage of the relatively favourable conditions in the bond and bank debt markets.

Proforma maturity profile of debt facilities1

30

500

400

300

200

100

£m 600

0 2026 2027 2028 2029 2030 2031 2032 2033 2034

Fixed rate bonds & USPPs Drawn bank loans Headroom

1 Includes facility extension of £82.5m term loan, exercised in January 2026.

‌58 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 59

Finance review continued

A new £115m unsecured term/revolving credit facility was signed with HSBC in February 2025. It comprised an £82.5m two-year term loan with a one-year extension option plus a £32.5m revolving component.

The next transaction was to issue £250m of 7-year unsecured bonds with a semi-annual coupon of 5.25% in June. After a short roadshow, there was strong demand for the bonds, the margin at issuance was a competitive 105bp and the bonds have traded well on the secondary market. As at the year end, the implied interest rate was 4.97% reflecting a tightening of the spread to 95bp.

Also in June, our £175m unsecured convertible bonds were repaid upon maturity at par and the £100m unsecured term loan arranged in 2024 with NatWest was extended by one year to a June 2028 maturity.

Refinancing activity continued in the second half. The Group's

£450m unsecured revolving credit facility (RCF) provided by our three longstanding UK relationship banks, Barclays, HSBC and NatWest, was refinanced with a new four-year term to July 2029 plus two one-year extension options. Pricing was similar to the previous facility, which had been due to reach maturity in October 2026. These banking relationships are highly valued by us.

Members of the Finance team

Our environmental sustainability criteria are well established and set out in our 'green finance framework' which was first published back in 2019. The green agenda is now firmly embedded in our corporate culture. Following discussions with our lenders, we decided to simplify the structure and classify the entire £450m RCF as a conventional (ie non-green) facility. Our

£350m 2031 'green' bonds remain and we report in the section below under our green finance framework as usual.

Following the extension of the main Group RCF, we cancelled the two £32.5m revolving credit tranches that formed part of the bilateral facilities arranged with Barclays and HSBC, thereby reducing future non-utilisation fees. The two £82.5m term loans remain and, at 31 December 2025, the HSBC loan had a maturity date of February 2027 but this was extended after the year-end to February 2028.

In 2026 to date, we have repaid £55m of US Private Placement Notes which matured on 31 January and will redeem the £175m LMS secured bonds in March 2026. Both were classified as current liabilities at the year end. I would like to thank our USPP noteholders and longstanding bond holders, some of whom have held these bonds for many years, for their support. The LMS bonds have a coupon of 6.5% and we therefore expect our weighted average interest rate to fall to less than 4.0% by the end of Q1 2026.

Due to the refinancing carried out in 2025, it was inevitable that our weighted average interest rate would increase. At the year end, the rate was 4.06%, an increase from 3.53% at 31 December 2024 but slightly lower than the 4.11% at 30 June 2025. At the year end, 82% of our debt was at fixed rates (2024: 85%) and the weighted average maturity of borrowings was 4.2 years (2024: 4.0 years).

Internal controls, assurance and the regulatory environment

During the year, we continued to strengthen our internal control environment, including the successful implementation of a new payroll system. We are also more than a year into the design and build of enhanced business processes and controls for our new finance system, scheduled to go live in late 2026. Across both the finance transformation and wider business change initiatives, we are increasingly leveraging advanced technologies, including AI, to streamline processes, improve operational efficiency and further enhance financial and operational controls.

We have maintained our approach to assurance, obtaining independent external assurance for areas of higher risk. This includes limited assurance over selected sustainability and health and safety data and reasonable assurance over green finance

disclosures, external audits of service charge costs and our twice yearly external property valuations. We also receive useful oversight of key business risks through our Internal Audit function.

We achieved re-accreditation of our Cyber Essentials Plus certification during the year, supported by independent verification of key cyber security controls and this remains an area of elevated focus for us.

In response to the new 'failure to prevent fraud' offence introduced under the Economic Crime and Corporate Transparency Act 2023, we have reviewed and strengthened our anti fraud procedures, providing a strong foundation for preventing and detecting fraud. Having defined and assessed our material controls over the past two years, we are well positioned to comply with Provision 29 of the revised UK Corporate Governance Code for the current financial year which commenced on 1 January 2026.

Francis House SW1

‌60 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 61

Finance review continued

Reporting under the Green Finance Framework

Derwent London's Green Finance Framework (the Framework) has been prepared to align with the Loan Market Association (LMA) Green Loan Principles 2021 and International Capital Market Association (ICMA) Green Bond Principles 2021 guidance document. It has previously been externally reviewed and a Second Party Opinion (SPO) was obtained. The latest version of the Framework and the accompanying SPO are available on our website at https://www.derwentlondon.com.

Out of total debt facilities of £2.0bn, Green Financing Transactions (GFTs) now comprise only the £350m Green Bonds issued in 2021. This follows the refinancing in July 2025 of our main £450m revolving credit facility which previously included a £300m 'green' tranche.

In accordance with the reporting requirements set out in the Framework, we are disclosing the Eligible Green Projects (EGPs) that have benefitted from our GFTs, and the allocation of drawn funds to each project.

Green project

80 Charlotte Street W1

1 Soho Place W1

The Featherstone 25 Baker Street Building EC1 W1

Network W1

The projects eligible for funds from the GFTs are as follows:

1. Green EGP credentials disclosed in accordance with the Framework and the Green Finance Basis of Reporting, available on our website and within the Responsibility Report.

2. The development includes 206,000 sq ft of offices at 25 Baker Street and 12,000 sq ft of offices at 30 Gloucester Place.

Qualifying 'green' expenditure

The qualifying expenditure for each project as at 31 December 2025 is presented in the table below. This includes a 'look back' component, capturing capital expenditure incurred on projects prior to the point at which they received formal designation as an EGP. It also includes capital expenditure incurred on projects prior to October 2019, when the Group executed its first GFT.

Costs which form part of the initial project appraisal or which are associated with delivering the EGP through to practical completion are included within the eligible green expenditure of the project. Costs incurred following completion are generally excluded unless specifically elected as a green project.

25 Baker Street, which commenced on site in 2021, reached practical completion in H2 2025. Certain development costs were disposed of to the freeholder in 2025 and a number of the private residential units were also sold. In accordance with section 3.3 of the Framework, the expenditure allocated to these elements have been removed from the qualifying expenditure.

Cumulative expenditure on each EGP as at the reporting date

Subsequent expenditure

The total qualifying expenditure incurred in 2025 was £88.9m. As at 31 December 2025, the cumulative qualifying expenditure on the EGPs amounted to £880.3m, after deducting £86.6m of previously eligible expenditure related to the 25 Baker Street scheme.

In July 2025, the Group refinanced its £450m RCF, which included a £300m 'green tranche', with a new 'non-green' RCF. At the time of refinancing, the amount drawn on the 'green tranche' was £28.5m. Following this transaction, drawn borrowings from GFTs at

31 December 2025 comprised solely the £350m Green Bonds issued in 2021.

In line with the requirements of the Framework, the total cumulative qualifying expenditure on EGPs (£880.3m) therefore exceeds the amount of drawn borrowings from all GFTs (£350m).

‌62 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 63

Going concern & viability

Our resilience

Viability of our strategy

The Board formally reviews its strategy on an ongoing basis to ensure it remains capable of sustainable value creation and is responding appropriately to changing macroeconomic conditions, work practices and stakeholder expectations.

When assessing the viability of the Group's strategy, the Board's key qualifications and assumptions were:

• focus on the central London office market to continue but with a willingness to consider alternatives such as living-led schemes where these produce better returns;

• an accelerated strategy of recycling capital by selling buildings when we have maximised their potential, or they no longer meet our investment criteria, and purchasing buildings where there is an opportunity to replenish our development pipeline or add value via asset management or refurbishment;

• debt facilities are refinanced on a timely basis with a balance between flexible and longer term fixed rate;

• a property portfolio containing income producing properties with added income/asset management potential plus development/refurbishment opportunities; and

• a progressive dividend policy, whilst targeting dividend cover around 125% or more over the medium-term.

The London office market has generally been cyclical in recent decades, with strong growth followed by economic downturns, sometimes precipitated by rising interest rates. The impact of these cycles is dependent on the quality and location of the Group's portfolio. Occupier demand in London is good for the right product in the right location.

The Board agreed that we have a proven business model which has allowed us to remain flexible and resilient during previous property cycles and periods of significant uncertainty.

Additionally, we have the ability to flex our business plan to react to unforeseen circumstances by either selling a property to generate additional cash flow or commencing, stopping or scaling back projects to manage our capital expenditure.

The Board agreed that no material change was required to its strategy, which continued to generate sustainable returns, but there is more focus on accelerated disposals over the next three to five years and a rebalancing of the portfolio targeting growth in earnings.

Short-term

Under provision 30 of the Code, the Board is required to report whether it considers it appropriate to adopt the going concern basis of accounting in the preparation of our financial statements. The assessment focused primarily on the short-term and at least the next 12 months to March 2027.

The Directors' assessment included consideration of:

• the Group's current financial position;

• the latest rolling forecast for the next two years, in particular the cash flows, borrowings and undrawn facilities;

• the timing of repayment of existing financing facilities;

• current and potential sources of replacement financing;

• lease expiry profile; and

• any material uncertainties or assumptions.

  The Group is in a strong financial position. As at 31 December 2025, the Group has:

• £627m of undrawn facilities and cash (2024: £487m);

• an EPRA loan-to-value ratio of 29.4%;

• an overall cost of debt with a weighted average interest rate of 4.1%;

• 82% of our borrowings either fixed or hedged;

• net debt/EBITDA of 9.0 times; and

• significant headroom on our financial covenants.

The Group has sufficient access to finance in the short-term and medium-term. At 31 December 2025, our average maturity of borrowings was 4.2 years and average maturity of facilities was

4.0 years. Although £230m of USPP notes and bonds fall due for repayment by March 2026, these are well covered by alternative arrangements already in place and the Group has significant liquidity to fund its ongoing operations. As noted above, it had access to £627m of available undrawn facilities and cash at the year end. Further information is on pages 56 and 57.

The Directors stress tested the latest rolling forecast against various scenarios to determine whether they were likely to have a significant impact on the Group's solvency and liquidity in the short-term. This included a reverse stress test scenario and indicated that the Group has sufficient liquidity and plenty of headroom before breaching financial covenants.

Material uncertainties or assumptions

The Directors did not identify any material uncertainties to the Company's ability to continue to operate as a going concern over the period of its assessment which is supported by the ability to let vacant space, operate a strong asset management strategy and secure refinancing.

However, with any business there are sources of uncertainty that could impact on operations. The key sources of estimated uncertainty in the next 12 months are considered to be:

• the economic environment creating a more challenging financial environment for occupiers;

• execution of leasing transactions due to cautious decision making and a more 'stay put' attitude adopted by some occupiers; and

• the extent to which liquidity returns for larger lot sizes in the office investment market.

Related information is on the following pages:

Significant financial judgements / See page 144 Property review / See pages 35 to 51

Group's Risk Register

The Schedule of Principal Risks contains the risks which are currently impacting the Group or could impact it over the next 12 months. These risks are routinely subject to a comprehensive review by the Executive Committee, Risk Committee and the Board. Consideration is given to the risk likelihood, impact and velocity (speed at which the risk could impact the Group). The Board agreed that, given the level of headroom, none of the changes in risk likelihood or probability during the year had a significant impact on the Group's short-term viability.

Our principal risks / See pages 104 to 109

Medium-term

The Directors challenge the time period over which to assess the Company's medium-term viability on an annual basis. The Directors determined that the five-year period to 31 December 2030 remains an appropriate period based on the following:

• For a major scheme, five years is a reasonable approximation of the time taken from obtaining planning permission for a typical development to letting the property.

• Most leases contain a five-year rent review pattern or break options. Therefore, five years allows for the forecasts to include the reversion arising from those reviews while also assessing the potential impact of income lost from breaks exercised. Our weighted average unexpired lease term is 7.0 years ('topped-up' including rent-frees and pre-lets).

• The average maturity of borrowings is 4.2 years as at 31 December 2025.

  As part of its assessment, the Board considered the Group's emerging risks (page 110), including how these are being addressed. Emerging risks could involve a high degree of uncertainty and are therefore factored into the Board's medium-term viability assessment and the long-term sustainability of the Group. The methodology used to identify, assess and monitor emerging risks is described in the risk management framework on page 158. The Directors concluded that none of the individual emerging risks would in isolation or collectively compromise the Group's viability over the five-year period to 31 December 2030.

  The Board's medium-term assessment focused on strategy, finance and operations.

  Sensitivity and scenario testing

  A detailed five-year strategic review was conducted which considered the Group's cash flows, dividend cover, REIT compliance and other key financial ratios over the period. These metrics were subjected to sensitivity analysis to assess the Group's ability to deliver its strategic objectives.

  The Directors stress tested the strategy against various scenarios to determine whether they were likely to have a significant impact on the Group's solvency and liquidity in the short and medium-term. The scenarios are amended each year, as required, to reflect the key areas of concern identified by the Board. The eight scenarios assessed were:

• a 'base case' scenario;

• a downside scenario which considers the impact of a fall in property values of c.5% over two years;

• an upside scenario which includes a combination of higher ERV growth, yield compression and shorter letting voids for major schemes; and

• five scenarios covering varying disposals assumptions and alternative capital structures.

  The modelling indicated that under all scenarios the Group would still be able to execute its strategic plan over the next five years or modify it using reasonable assumptions without breaching any covenants or experiencing liquidity concerns.

  ‌64 Derwent London plc Report and Accounts 2025

  Governance Financial statements Other information 65

  Strategic report

Going concern & viability continued

Allocation of capital

Capital recycling is a key part of our business model. Our ability to sell assets and reinvest these funds into higher-returning opportunities is an important part of our strategy and future performance.

We completed £216.1m of property sales in 2025 and investment activity has recently improved, especially for larger lot sizes.

Since the year end we have agreed a further £32.6m of sales. We are targeting £1bn of disposals over the next three years. A lower level of disposals would impact our future capital allocation decisions.

Regeneration opportunities are carefully appraised against clear performance targets and benchmarking of costs. Rigorous stress testing is carried out by flexing appraisal assumptions which consider the potential impact of the key commercial risks of a project, including the impact of rising construction costs, fluctuating rents due to changes in occupier demand and varying investment yields. To maximise returns, we may consider alternative uses of an asset and may pursue strategic partnerships with other investors. Where this is the case, comprehensive due diligence is conducted to ensure the selection of an appropriate partner.

The appraisal process is important given the long horizon, typically 3-5 years, between approval to proceed and completion of a project so we could end up delivering in a market that has changed significantly. There is a possibility that capital allocated to specific assets, use types or locations do not generate the expected returns.

Holden House W1

Viability of our finances

Derwent London could potentially become unviable if the Group were unable to meet its financial covenants. If this occurred, we would potentially need to refinance or repay debt facilities, likely requiring the disposal of assets. As at 31 December 2025, the Group had significant headroom over its covenants, as shown below:

Loan to value (specific assets)

Ratio of unencumbered assets to unsecured net debt

Group NAV gearing Consolidated interest cover

Covenant

≤ 60%1

≥ 1.6 times

≤ 145%

> 145%

31 Dec 2025

51%

3.7 times

40.1%

306%

1 6.5% secured bonds

Our covenant headroom was subject to sensitivity analysis and scenario testing as part of the Group's strategy review. Even in the most extreme 'downside' scenario we modelled, the covenant ratios are covered and sufficient cash and unutilised facilities are available. For the Group to breach the NAV gearing limit, the value of our portfolio would have to fall in excess of

£2,615m (or by a further 51%).

Valuations have generally increased since H2 2024 after a period of significant declines and rental growth is now widely expected to continue for good quality central London offices against a background of relatively stable yields. Our portfolio has continued to outperform the MSCI Central London Office Index over recent financial periods, most recently by 69bp in 2025. Our final secured facility, the £175m LMS bonds, are due for repayment in March 2026 after which we will no longer have asset specific covenants to manage.

During the year the Directors also reviewed:

• a detailed five-year strategic review which included assessment of the Group's cash flows, dividend cover, REIT compliance and other key financial ratios. These metrics were subjected to sensitivity analysis to assess the Group's ability to deliver its strategic objectives under varying market conditions;

• the risks which could impact the Group's liquidity and solvency over the next 12 months, five years and the longer term; and

• the Group's emerging risks.

  The Board's assessment highlighted that, despite continuing volatility and uncertainty in the macroeconomic environment during 2025, the Group benefitted from:

• reasonable income visibility for the life of our leases which on 2025 lettings averaged 5.3 years on the headline rent. In addition, the Group has a known level of tenant lease expiries and breaks which is actively managed by our Asset Management team; and

• a high quality customer base, with none of our occupiers being responsible for more than 6.4% of total rental income on a 'topped-up' basis and relatively low exposure to the retail and restaurant sector.

  Refinancing risk

  The availability of financing for good quality covenants generally improved through 2025 and, though still subject to market volatility, the cost of long-term debt moderated. In addition, UK base rates fell through 2025 to end the year at 3.75% with a consequent reduction in the cost of short-term bank debt.

  We remained close to our existing lenders and were very active in 2025, repaying the £175m convertible bonds at maturity, arranging £250m of new 7-year unsecured bonds in June and refinancing £565m of bank facilities. We continue to review market conditions and have facilities in place to repay £230m of fixed rate debt maturing in early 2026.

  Viability of our operations

  The Board received an update from the Chairs of the Audit and Risk Committees on the work performed during 2025 in respect to risk monitoring and reviewing the effectiveness of internal controls (see page 103).

  There has been a heightened risk of cyber attacks amid escalating geopolitical tensions. To date, Derwent London has not experienced a significant increase in attempted cyber attacks. Ongoing staff vigilance is critical to the prevention of cyber attacks.

  The Digital Innovation & Technology (DIT) team are proactive in providing regular guidance and refresher training to all employees on cyber security matters. We have a robust approach to cyber security which is routinely subject to independent testing (see pages 160 and 161).

  Our Intelligent Building programme is a medium to long-term initiative which will assist with meeting our net zero carbon ambitions, strengthen our portfolio's cyber security and help realise cost savings for our occupiers.

  Based on the Board's assessments, none of the operational principal or emerging risks currently facing the Group were likely to have a material impact on the Group's operations or cause it to become unviable in the short to medium-term.

  Related information is on the following pages:

  Investing in our employees / See page 194
  
  Disaster recovery and business continuity / See page 160 Mandatory compliance training / See page 163
  
  

  Long-term

  The Board considered a number of longer term factors (which could impact the Company and its business model in the next five to 10 years) and how these were being addressed. These factors included the impact of climate change and technology advancement.

  Related information is on the following pages:

  Strategic framework & business model / See pages 22 and 23 Regeneration projects / See pages 19 to 21
  
  Our portfolio / See pages 6 and 7
  
  

  Climate change

  Willis Towers Watson performed an updated independent climate risk assessment and scenario analysis in 2024. The scope of the assessment included our entire London-based investment portfolio (including our head office) and our Scottish portfolio. Of the risks identified, none were likely to have a substantial impact on the viability of our business, although our cost profile could increase.

  Task Force on Climate-related Financial Disclosures / See pages 86 to 99
  
  

  Technology advancements

  Acceleration of technology is an emerging risk for the Group and includes consideration of developments in Artificial Intelligence (AI). Technology in our sector is advancing at a rapid pace.

  The Executive Committee has monitored the phased roll-out of Intelligent Building infrastructure during the year. The Derwent London Intelligent Building programme seeks to enable our buildings (where appropriate) to be digitally monitored and operated more efficiently, driving down equipment faults (and consequential maintenance) and delivering energy and operational carbon savings.

  During the year, the Risk Committee received a detailed overview of the Group's current cyber posture and how future technological trends could impact on the Group's future performance (see pages 110 and 161).

  Digital strategy risks / See page 161
  
  

  Geopolitical instability

  Geopolitical issues such as the ongoing war in the Ukraine and the widening of the Middle East conflict remain a concern.

  Viability statement

  Based on the Board's assessments, the Directors have a reasonable expectation that the Company will be able to continue in operation and meet its liabilities as they fall due over the five-year period to 31 December 2030.

Despite the uncertainty, our supply chain has been relatively unaffected due to our approach of early pre-ordering and storage. Early supply chain engagement in project designs helps with the identification of potential risks and alternative solutions.

‌66 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 67

Responsibility

16%

Reduction in Scope 1, 2 and 3 operational carbon emissions

£504k

Community funds and sponsorship donations committed in 2025

Fair Payment Code 2025 Bronze Award

2025 GRESB:

Greenstar status

A-rated public disclosure

Development - 5 stars with a score of 98

Standing Investments - 4 stars with a score of 86

ROSPA

Gold Award

Third consecutive year

Corporate responsibility underpins how we create long-term shareholder value. It is embedded in our culture, guiding how we operate and allocate capital across the business, from investment and development decisions through to asset management and day-to-day operations.

This approach, grounded in our commitment to integrity, transparency and safety, supports positive outcomes for our stakeholders, including local communities, and the wider environment.

Our responsibility approach and framework

Our responsibility strategy sets out how we address the most material environmental, social and governance (ESG) issues to our business. It provides a structured framework for action across the Group, covering the full life cycle of our developments and operations - from reducing carbon and improving building performance to supporting our people, engaging with occupiers and maintaining responsible supply chain standards.

This strategy is based around seven ESG priorities and a series of targeted frameworks. Together, these enable a consistent approach to managing and reporting on our ESG pillars.

Responsibility embedded in our corporate strategy

Responsibility considerations are embedded within our corporate strategy, informing our strategic objectives, risk management processes and investment decisions. This is supported by clear Board-level oversight and accountability through dedicated committees.

Our executive remuneration policy incorporates ESG measures, aligning leadership incentives with long-term, responsible performance. The composition of our Board reflects the expertise, independence and diversity required to oversee responsible growth and uphold high standards of governance.

Highlights of the year:

During the year, we made strong progress across our responsibility priorities. These achievements highlight the integral role that responsibility plays in shaping our business and creating sustainable,

long-term value.

Key achievements include:

• updated our Net Zero Carbon Pathway;

• broader adoption of circular economy principles;

• supporting charities through utilisation of our DL/Lounges;

  
  
  

• updated our Supply Chain Responsibility Standard;

• launched employee 'Rewards and Recognition' programme;

• delivered H&S Legal Duties session with 100% Board and Director participation;

• achieved embodied carbon target and BREEAM 'Outstanding' at 25 Baker Street following practical completion;

• 40% of managed portfolio buildings now all-electric, from 6% in 2020; and

• four new employee representatives joined the RBC bringing new perspectives to the employee voice.

  Our updated Net Zero Carbon Pathway

  Reducing operational Procuring and energy and carbon investing in emissions renewable energy

  Reducing the embodied carbon of development projects

  Offsetting residual carbon emissions

  Nature and resilience

  See page 69

  See page 70

  See page 71

  See page 73

  See page 73

  Pillars

  Priorities

  • Governance Framework

  • Our Code of Conduct & Business Ethics

  • Supply Chain Responsibility Standard

  • Modern Slavery Statement

  • Statement of Tax Principles

Governance

7. Setting the highest standards of corporate governance

Social

1. Creating value in the community

2. Engaging and developing our employees

3. Ensuring the highest standards of health and safety

4. Protecting human rights

Environmental

1. Designing and delivering buildings responsibly

2. Managing our assets responsibly

Frameworks

‌68 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 69

Responsibility continued

Double materiality

We recognise the role of materiality in determining the relative importance of key ESG issues to the business and our stakeholders.

Responsibility - Environmental

Our Net Zero Carbon Pathway

01

Reducing operational energy and carbon emissions

Our commitment

We are committed to operating our investment portfolio on a net zero carbon basis by 2030. This requires a sustained and significant reduction in our energy consumption, upgrading and retrofitting our properties to improve efficiency and removal of gas use where feasible, as well as close collaboration with our occupiers.

Actions and outcomes

Portfolio decarbonisation

In 2025, we continued to invest in decarbonisation works across the portfolio. Following the installation of air source heat pumps (ASHP) at 1-2 Stephen Street W1 in 2024, an ASHP was installed at Charlotte Building W1 alongside a broader mechanical, engineering and plant (MEP) upgrade. We are also installing point of use electric hot water supplies for WCs to decarbonise hot water supplies. 40% of buildings in our managed portfolio are now all-electric. To enable effective monitoring of mains water use across the managed portfolio, a Smart Flow monitoring system was rolled out across 70% of the portfolio.

Occupier engagement

Our recent 'You Hold the Power to Save' campaign (launched in Q4) was well-received by occupiers across the managed portfolio. To maximise impact, engagement was focused on our 10 highest energy consuming buildings, which represent 78% of managed portfolio energy. In total, we engaged with 77% of occupiers in 2025.

Further energy reduction

Building on the significant 20% reduction in energy consumption across our managed portfolio between 2019 and 2024, 2025 saw a further 6% decrease to 48.7m kWh. Energy intensity of 125 kWh/sqm is down 9% compared to 2024 (137 kWh/sqm) and 25% below our 2019 baseline (166 kWh/sqm). This compares well to our 2030 target of 123 kWh/ sqm. When combined with ongoing decarbonisation of the UK's energy grid, our location-based operational carbon footprint reduced 16% in 2025 to 10,434 tCO2e (2024: 12,357 tCO2e).

1 Data relates to the Group's managed portfolio only.

Energy usage1 (electricity and gas split in kWh)

kWh (millions)

Materiality assessments provide a framework for prioritising issues and ensuring our responsibility strategy and management action are appropriately focused and targeted.

We keep our material issues under review to ensure changes are captured on a

100%

8 6

10

7

9

4

5

3 2

12

11

1

75%

70 64.6

60

50

40

30

20

10

0 2019

49.2

2020

49.7

2021

50.4

2022

56.7

2023

51.8

2024

48.7

2025

timely basis and remain aligned with the

independent climate risk assessment and scenario analysis which forms part of our TCFD disclosure (see pages 86 to 99).

In 2024, we completed a double materiality assessment, with support from an independent third party consultant.

This identified 17 material topics, of which 12 were considered to have High or Very High materiality under either the Financial or Impact perspective - see chart. The topics with Low or Medium materiality are listed below.

The material topics were already known

50%

Financial

25%

0%

0% 25% 50% 75% 100%

Impact

Environmental

Social Governance

Gas Electricity

Energy intensity1 (in kWh/sqm)

kWh/sqm 180

160

140

120

100

80

60

40

20

and captured through our various strategies and management procedures. However, the assessment provided additional insight to support the

0 2019

2020

2021

2022

2023

2024

2025

prioritisation of future actions.

Our double materiality assessment is

Operational carbon footprint1 (Scopes 1, 2 & 3 in tCO2e)

tCO2e

14,000

12,000

10,000

8,000

6,000

4,000

2,000

0

Scope 1

11,314

12,357

10,434

5,864

2022

Scope 2

2023

2024

2025

Scope 3

2,736

3,062

2,705

2,388

aligned with our wider processes for identifying and assessing the principal risks we report in the Managing Risks section (see pages 100 to 111).

Low/Medium materiality topics

Our stakeholders identified these topics as Low/Medium materiality. We continue to monitor and prioritise them as appropriate and will ensure resources are available as required.

The table provides further detail of where our material issues can be located within our risk management and other reporting.

These risks are monitored via the Group's Risk Register which is not disclosed in the annual Report & Accounts. Refer to pages 104 to 111 for the Group's principal and emerging risks.

16,000

14,370

‌70 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 71

02

Procuring and investing in renewable energy

Our commitment

The Group is committed to ensuring that the energy we consume is from renewable sources. For procurement, this means contracting electricity on renewable tariffs backed by Renewable Energy Guarantees of Origin (REGO) certificates and gas contracts backed by Renewable Gas Guarantees of Origin (RGGO) certificates. Our Scottish land also provides several self-generation opportunities which we are progressing.

Actions and outcomes

Energy on renewable tariffs in 2025

• Electricity (REGO-backed): 100% (2024: 99%)

• Gas (RGGO-backed): 100% (2024: 100%)

• As at 31 December 2025, 100% of our electricity and gas contracts were on renewable tariffs backed by REGOs/ RGGOs

All REGO-backed electricity is procured from UK-based solar, wind or hydro projects.

Investing in self-generation

Lochfauld Solar Park in Scotland

Following receipt of planning consent in 2023 for a c.100-acre,

18.4 MW solar park at our Lochfauld site in Scotland, significant progress on site has been made. Installation of the frames and photovoltaic (PV) panels, alongside supporting site infrastructure has completed and panel connection and inverter works are currently underway. Testing, commissioning and grid connections are expected to complete in mid-2026, followed by energisation thereafter. We expect the solar park to generate c.40% of our London managed portfolio's electricity requirements (based on 2019 baseline energy consumption).

London portfolio

Where feasible, we install PV panels on our buildings, six of which now have PV arrays. In addition, we have a small PV array at our Easter Cadder central hub in Scotland, covering the electricity consumption of our Scottish office.

As part of our Section 106 agreement for 50 Baker Street W1,

we agreed with Westminster City Council to carry out a carbon saving project at St Mary's Bryanston Square Primary School. We installed an 83 PV panel array, equivalent to 36 kW. The first year of performance generated 24,400 kWh, in excess of 50% of the school's electricity consumption, saving approximately 5 tCO2e.

Responsibility - Environmental continued

03

Reducing the embodied carbon of development projects

Our commitment

Under our Net Zero Carbon Pathway, new developments and major refurbishments will be net zero carbon on completion. In 2024, we updated our reporting methodology to better align the timing of emissions and offsetting. Forecast emissions from major projects are recognised on a phased basis over the construction period, with emissions offset over the same profile.

Defining embodied carbon targets

Whole life carbon assessments are performed on our projects to inform design decisions and report on the 'Cradle to Completed Development' (A1-A5) aspects. Refer to our Whole Life Carbon Assessment Brief at https://www.derwentlondon.com/ news/publications/responsibility-policies

Our phased targets for commercial office new build developments align with the Greater London Authority (GLA) and LETI targets (under RICS v1, which excludes demolition):

Actions and outcomes

We work collaboratively with our development supply chain to assess and reduce a scheme's embodied carbon footprint. At each design stage, we hold detailed workshops with our teams and ensure early engagement on procurement of low carbon materials. The wider industry needs to adapt and work together for us to fully achieve our aims and we are active in this endeavour - see page 72 for details on our works to accelerate the use of low carbon concrete and the circular economy.

Our three major projects which were on site during 2025 are being delivered to align with our 2025 target:

• 25 Baker Street W1 (completed Aug 2025): 594 kgCO2e/sqm (a c.13% reduction compared to the Stage 4 estimate)

• Network W1: c.530 kgCO2e/sqm

• Holden House W1: c.590 kgCO2e/sqm

The current forecast for 50 Baker Street is c.530 kgCO e/sqm.

2

• From 2025: ≤600 kgCO2e/sqm

• From 2030: ≤500 kgCO2e/sqm

For our next major redevelopment projects, Holden House W1 and 50 Baker Street, we intend to report embodied carbon intensity under both RICS v1 and RICS v2, the latter of which accounts for demolition and enabling works.

For major refurbishments, our target is ≤350 kgCO2e/sqm.

Embodied carbon intensity of major projects

kgCO2e/sqm 700

Embodied carbon (S3, C2) emissions recognised in year

30,000

25,000

20,000

32,869

15,000

27,315

10,000

19,790

19,136

5,000

1,036

799

tCO2e 35,000

600

500

400

300

506

550

539

594

c.530

200

100

Network (stage 4

Estimate)

Lochfauld Solar Park

0

80 Charlotte Street

1 Soho Place

The Featherstone

Building

25 Baker Street Including 30 GP &

100GS)

kGCO2e/sqm DL embodied carbon target 2025

0 2020

2021

2022

2023

2024

2025

‌72 Derwent London plc Report and Accounts 2025‌

Governance Financial statements Other information 73

04

Offsetting residual carbon emissions

Our commitment

The Group's business model of office regeneration and operation will, by its nature, result in the emission of embodied and operational carbon across Scopes 1, 2 and 3. For this reason, we will prioritise achieving our ambitious targets to reduce our carbon footprint as far as possible. We have committed to offset any residual carbon that we are unable to either manage out or eliminate.

Actions and outcomes

We have a phased pipeline of regeneration schemes over the coming years. Occupational market dynamics are forecast to remain favourable and we expect to commence the next phase of our pipeline over the coming year. Beyond this, we have a longer term pipeline which is expected to commence from 2027 onwards.

Forward purchase of carbon offsets

This project visibility allows us to forecast our embodied carbon emissions and plan accordingly. The Group has forward-purchased carbon offset credits equivalent to c.195,600 tCO2e since 2020 for a combined consideration of c.£4.9m or an average of c.£25/tCO2e. In 2020, we began offsetting the embodied carbon associated with our regeneration activity, through retirement of our carbon credits, and have offset a cumulative c.100,945 tCO2e, of which 27,315 were retired in relation to 2025. The remaining offsets cover our forecast embodied carbon emissions to 2030.

Working with our offset partner, Climate Impact Partners, we carried out significant pre-acquisition due diligence to ensure the environmental projects meet our quality standards. This includes being validated under a robust, credible scheme such as the Verified Carbon Standard (VCS) or the American Carbon Registry (ACR). We acknowledge this is a changing landscape and refer to latest guidance from the UKGBC (Carbon Offsetting & Pricing Guidance).

Tree planting

The Group continues to progress tree planting opportunities across its Scottish land. Additional land has been identified as potentially suitable for planting, subject to further appraisals and planning consent.

05

Nature and resilience

Our commitment

Nature and resilience was added as a fifth pillar of our Net Zero Carbon Pathway in 2025. We are committed to enhancing biodiversity across our portfolio, including at both standing investments and regeneration projects. To support this, as well as ensuring our business resilience to a changing climate, we will carry out climate risk and opportunity assessments every three years as part of the WTW risk assessment, to proactively manage our climate risk, which includes biodiversity-related aspects.

Actions and outcomes

Biodiversity net gains at major projects

Each of our new build pipeline projects received planning approval prior to the Biodiversity Net Gain (BNG) legislation coming into effect. However, many boroughs already required a minimum BNG of 10%. Consequently, all our recently completed schemes and next phase of projects have achieved, or intend to achieve, a BNG significantly greater than 10%.

• 25 Baker Street W1: 180%

• Network: 110%

• Holden House: 210%

• 50 Baker Street: 273%

For our schemes which are currently in design, we expect to achieve the agreed urban greening factor.

Scottish land

Part of our Scottish land at Bargenny Hill has been designated as a Site of Special Scientific Interest (SSSI). The site is one of the largest and best remaining examples of lowland neutral grassland, which supports a variety of rare plants, flowers and wildlife, in south-western Scotland. The SSSI designation at this site forms part of a wider Agri-Environment Climate Scheme (AECS). We have also transitioned to more sustainable farming practices, utilising green manure, creating grass strips and water margin in arable fields as well as creating new wetlands.

Responsibility - Environmental continued

Our circular economy approach

Optimising reuse across our portfolio and reducing embodied carbon without compromising on quality

• Our circular economy approach goes hand in hand with reducing embodied carbon.

• In 2025, Derwent London strengthened its leadership in circular economy practices, embedding resource efficiency and material reuse across its development pipeline and operational portfolio, alongside our partner Material Index.

• Since we formalised our circular economy strategy, c.500 tonnes of material have been donated or brokered.

• At our smaller refurbishment projects, retention and on-site reuse has averaged 44%. Examples include the sale or donation of kitchenette units from Oliver's Yard EC1, and timber panelling from 1-2 Stephen Street W1.

• The circular economy is also being incorporated across our major projects:

  • Network W1 is our first whole building redevelopment to use refurbished raised access flooring.

  • At Holden House W1, 64% of the temporary work steel to retain the façade is reused, chimney stacks are being reused and 95% of the glass has been recovered for reprocessing. This is in addition to internal fittings, finishes and lighting being donated. The bricks are currently being tested for off-site reuse.

  • At 50 Baker Street W1, we are pioneering the piece-wise reuse of the existing concrete structure in what is the largest scale project of this type in the UK.

  • Greencoat & Gordon House SW1 is setting the blueprint for retention and reuse across our refurbishment projects.

Holden House W1

Accelerating Concrete-Decarbonisation Group

Aiming to bridge the gap between supply of low carbon concrete, specification needs and market demand

• Derwent London established the Accelerating Concrete-Decarbonisation Group (AC-DG) in June 2024 and has continued to lead the initiative. It is a UK developer-led, industry-wide initiative to accelerate the adoption and use of market-ready, technically viable low carbon concrete mixes in construction projects.

• The aim is to reduce the barriers for use of lower carbon concrete, prototype testing and knowledge sharing, ultimately reducing embodied carbon.

• The lack of specific empirical test data is a key barrier, preventing engineers and clients from specifying low carbon concrete without adding technical, programme and cost risks into projects.

• By supporting more rapid collection and distribution of critical data for these innovative concrete mixes, AC-DG seeks to enable a faster route to market, facilitating specification for construction projects.

• The seven AC-DG workshops to date have been informative, circulating knowledge more quickly across the sector on low carbon concrete available for use in the UK today, as well as the emerging suppliers.

• Through the AC-DG, Derwent London and 30 other key organisations have signed a collaboration agreement enabling prototyping works and testing to commence in H1 2026 on three low carbon mixes. These have the potential to reduce concrete carbon emissions by up to 70%.

• Derwent London is also a founding signatory of the Advanced Market Commitment (AMC), a government funded initiative aligned with the AC-DG. The aim of the AMC is to signal to the supply chain that low carbon concrete is a priority for industry.

Network W1

Bargenny Hill

‌74 Derwent London plc Report and Accounts 2025

Governance Financial statements Other information 75

Responsibility - Environmental continued

Streamlined Energy and Carbon Reporting (SECR) disclosure

GHG emissions

Location/ Market-

tCO2e % change

based 2025 2024 2025 vs 2024

In line with SECR regulations, the adjacent table sets out the carbon emissions (tCO2e) across Scopes 1, 2 and 3 together with relevant intensity ratios (kgCO2e/ sqm) from our managed portfolio. We also show the global energy consumption (kWh) used to calculate our emissions.

Energy efficiency actions

The Group undertook a number of energy efficiency actions in 2025. These included:

• decarbonisation initiatives at Charlotte Building W1 (air source heat pump) and 9-10 Rathbone Place W1 (variable refrigerant flow technology);

• implementation of occupier engagement strategy ('You Hold the Power to Save'), focused on the top 10 consuming buildings;

• ongoing LED lighting and other MEP upgrades across the managed portfolio;

• streamlined plant run times implemented alongside relaxed temperature set points, following successful trials in 2024; and

• enhanced out of hours usage monitoring, facilitated by our metering upgrade programme, and out of hours lighting assessment.

  As a result of these actions and interventions, year-on-year energy consumption reduced by 6% and energy intensity by 9% in 2025. Compared to our 2019 baseline, energy intensity has reduced by over 25%.

  See page 69

  Data notes

Responsibility - Social

Our social contributions

We strive to ensure our buildings deliver lasting social value for the communities in which they sit and for all stakeholders.

Continued to support our community funds

We operate two community funds:

We introduced a new multi-year funding model in 2025 - committing £450,000 for 2025 to 2027 - providing charities with

NSPCC Proper Trek

We sponsored NSPCC's first property-sector fundraiser, with White Collar

£504k

Community funds & sponsorship donations committed in 2025

Our approach to social value

Delivering social value is integral to our business. We maximise positive impact through targeted financial support provided by our Sponsorship & Donations Committee and our Community Fund. This is complemented by active engagement with local communities.

Volunteering, work experience and opening our buildings up to community groups help us stay connected to the community so we can understand local needs and deliver meaningful outcomes.

Our Social Value Strategic Framework is based on three themes which guide how we create meaningful impact in our communities. We continued to deliver against these themes in 2025. In 2026,

we intend to undertake a full review of the framework, initially published in 2023, to ensure it remains relevant and effective. This will help us ensure our approach continues to maximise our social impact as community needs, societal expectations and best practice continue to evolve.

20

Community Fund projects supported in 2025

Progress against each theme in 2025:

• 'Part of the neighbourhood'

  Fitz Music supports Fitzrovia's cultural heritage by delivering a free, inclusive programme of cultural events. We have committed three years of funding to this initiative through our Community Fund.

• 'Great places to work'

  We design buildings and spaces that support connection, health and wellbeing. In April, occupiers from across the portfolio took part in the White Collar Factory rooftop half marathon to raise funds for charity.

• 'A thriving local economy'

As part of the Network W1 construction programme, our building contractor, Kier, embedded a focused approach to local employment, skills and progression - delivering benefits to the local community and economy.

£4.6m

Sponsorship donations provided to date

Community Fund West (est. 2013) and Community Fund East (est. 2016). These funds support grassroots projects focused on community events, environmental improvements, health and wellbeing activities, music and culture, and support for marginalised groups. By extension, our approach also promotes wider engagement through corporate volunteering, school partnerships, and work experience.

Following the launch in 2013, over £1.4m has been awarded, supporting more than 200 projects - from renewing children's playgrounds to running music sessions in care homes and funding lunch clubs for older people.

greater certainty and visibility for forward

planning.

Other activities

In 2025, our Sponsorship & Donations Committee committed £350,000 in charitable donations. Some of the ways these funds were used to create value in the community during the year included:

EY Foundation's Real Estate Futures Programme

Enduring partnerships that make a difference

Our long-standing relationships with Teenage Cancer Trust (TCT) and LandAid demonstrate the power of sustained, high-impact community investment. Together, they have raised approximately £2.4m to date, delivering measurable benefits in a cost-efficient way.

These enduring collaborations reflect

our belief in long-term relationships that deliver real social value and adapt to changing needs over time.

Teenage Cancer Trust - Over 20 years of support

In 2025, our biennial Big Lunch fundraiser raised £232,000, contributing to total fundraising of more than £2.2m since the partnership began in 2001.

This year, we were honoured with a Special Recognition Award from TCT, acknowledging our role as its longest-standing corporate supporter and our commitment to transforming the lives of young people with cancer.

LandAid - 15 years of impact

Our partnership with LandAid reflects our commitment to addressing youth homelessness through targeted grants and initiatives. By combining resources and expertise, we help create safe, supportive environments for vulnerable young people across London and beyond.

Our support in 2025 included participation

in LandAid fundraising events and sponsorship of its Gala Dinner, which raised £364,000 on the night to help change young lives. Since the partnership began 15 years ago, we have raised

£218,000 directly for LandAid.

"Derwent London's dedication to supporting LandAid's mission is remarkable. From involvement in our events, to the team's impressive fundraising skills, it's a pleasure to work alongside you. I look forward to another meaningful year ahead, particularly as we celebrate 40 years of impact in 2026. Thank you for standing with us to end youth homelessness - together, we are making a real difference."

Jess Strudwick

LandAid - National Partnerships Manager

We supported work experience placements and mentoring for young people interested in real estate careers. Several employees acted as mentors, helping participants develop skills and confidence. We intend to participate in the programme again in 2026.

Factory EC1 acting as the penultimate host building for the walkers.

Host the Teacher event

In collaboration with The Academy of Real Assets, our White Collar Factory building hosted an event bringing together teachers, occupiers and service partners to discuss career pathways for young people within the real estate sector.

Opening doors to opportunity

This year we partnered with Islington Council's Youth Employability and Skills (YES) programme and our front-of-house service partner PROception to create a tailored work experience placement at 80 Charlotte Street W1. The YES programme supports young adults aged 18-25 who face barriers to employment, offering pre-employment coaching and real-world experience.

Through this collaboration, a young person gained hands-on front-of-house experience in a professional environment, supported by PROception's expert team. The placement built the candidate's confidence and customer service skills, and led to further work experience at Brunel Building W1, thereby strengthening the individual's career prospects.

This initiative is a good example of how we work with local authorities and service partners to deliver social value beyond funding by creating practical pathways into employment and helping young people build sustainable futures.