Gross rental income rose 1.5% to £109.1 million, net rental income dipped slightly to £94.0 million
LONDON: Derwent London plc reported unaudited results for the six months ended 30 June 2025, highlighting strong leasing momentum, resilient financials, and a strategic portfolio repositioning aimed at long-term growth.
The Group completed £13.8 million in leasing, renewals, and regears year-to-date, with open-market lettings averaging 10.5% above estimated rental value (ERV). Adobe’s expansion at White Collar Factory and full occupancy at The White Chapel Building were among the standout transactions.
The EPRA vacancy rate remained low at 3.7%, while underlying capital growth turned positive at 1.2%, reversing a 1.7% decline in H1 2024. ERV growth held steady at 2.0%, and the equivalent yield edged down to 5.69%.
Gross rental income rose 1.5% to £109.1 million, although net rental income dipped slightly to £94.0 million. EPRA earnings per share declined marginally to 52.2p, while the interim dividend increased 2.0% to 25.5p. The Group’s IFRS result before tax rebounded to £94.0 million from a £27.2 million loss in the prior year.
Derwent’s balance sheet remains robust, with EPRA net tangible assets per share rising to 3,187p and cash and undrawn debt facilities totaling £604 million. Strategic disposals exceeding £200 million are set to fund high-return developments, including Holden House and 50 Baker Street.
Chief Executive Paul Williams said, “We’re seeing strong demand and rental growth in the Central London office market. Our total return outlook is the strongest it’s been in years, and we remain confident in our rental guidance of 3% to 6% for 2025.”
Derwent London continues to outperform the MSCI Central London Office index, delivering a total return 120 basis points above the benchmark in H1 2025.