Source: Sharecast
Property investor and developer Derwent London said on Tuesday that it had seen strong leasing activity and rising rental values throughout H1.
Derwent London said demand for its high-quality office spaces in central London had remained well above the long-term average, with supply constraints supporting pricing power.
Gross rental income ticked up 1.5% year-on-year to £109.1m, while net rental income dipped 1.1% to £94.0m. EPRA earnings per share slipped 0.9% to 52.2p, though IFRS pre-tax profits rebounded to £94.0m from a £27.2m loss a year earlier.
Net debt rose 4.7% to £1.55bn, with EPRA loan-to-value increasing to 30.5% from 29.9%, while interest cover fell to 3.2x from 3.9x, and net debt to EBITDA climbed to 9.7x.
However, the group reported £604m in cash and undrawn facilities, up from £487m at year-end, and lifted its interim dividend by 2.0% to 25.5p.
Open-market lettings were agreed 10.5% ahead of estimated rental values, with £13.8m of leasing, renewals, and regears completed year-to-date. Underlying capital growth turned positive at 1.2%, while total return improved to 3.0% from -1.0%.
Looking forward, Derwent London reiterated rental growth guidance of 3–6% for FY25 and confirmed over £200m of disposals had been completed or contracted, with proceeds earmarked for developments including Holden House and 50 Baker Street.
Ithaca Energy and Harbour Energy were both up as the US and China extended their 90-day tariff truce.
Cruise line operator Carnival gained as sector peer TUI lifted forecasts.
FTSE 250 - Risers
Ithaca Energy (ITH) 177.00p 3.03%
Renishaw (RSW) 3,020.00p 2.72%
Harbour Energy (HBR) 237.20p 2.60%
Assura (AGR) 49.92p 2.21%
Close Brothers Group (CBG) 553.50p 2.12%
Coats Group (COA) 73.20p 2.09%
Primary Health Properties (PHP) 96.15p 2.07%
Carnival (CCL) 2,022.00p 2.07%
Vesuvius (VSVS) 362.20p 2.03%
RS Group (RS1) 560.00p 1.82%
FTSE 250 - Fallers
Genuit Group (GEN) 364.00p -5.70%
Derwent London (DLN) 1,829.00p -4.69%
Baltic Classifieds Group (BCG) 342.50p -3.66%
Great Portland Estates (GPE) 328.00p -2.96%
Ocado Group (OCDO) 363.00p -2.79%
Sirius Real Estate Ltd. (SRE) 102.10p -2.67%
Pennon Group (PNN) 483.00p -2.62%
Plus500 Ltd (DI) (PLUS) 3,146.00p -2.54%
Burberry Group (BRBY) 1,116.00p -2.45%
Pollen Street Group Limited (POLN) 818.00p -2.39%
