Derwent London reports a 2% increase in net asset value for fiscal year 2025, with a 1% increase in dividends

Investing.com - Derwent London (LON:DLN) announced on Thursday that its net asset value per share for fiscal year 2025 is 3,225 pence, up 2.4%, with earnings per share of 98.4 pence and a dividend per share of 81.5 pence.

The company signed new leases totaling £11.3 million for fiscal year 2025, with rents 9.9% above estimated rental values. Year-to-date, Derwent London has added £1.5 million in new leases, with another £14.4 million in lease negotiations, including all offices of Network, and £4.4 million in ongoing negotiations.

Asset management activities reached £58.9 million, with a 6.4% increase in rent. The company completed asset sales worth £216.1 million, with £33 million exchanged so far this year, and approximately £240 million in deals under negotiation.

The No. 25 W1 Baker Street project has been fully pre-let, achieving an unleveraged internal rate of return of 11.3%. The accounting return rate is 5%, and earnings per share after deducting £3.7 pence in transaction profit is 98.4 pence.

Derwent London expects the estimated rental value of its investment portfolio to grow by 4% to 7% in fiscal year 2026. The company plans to sell £1 billion worth of assets over three years and anticipates EPRA earnings to increase by 25% to 30% by 2030.

The company’s net debt to EBITDA ratio is 9 times, with an interest coverage ratio of 3.1 times and a loan-to-value ratio of 29%, unchanged from the previous period.

The CEO stated that the company expects the estimated rental value and EPRA earnings of its portfolio to grow, with total accounting returns projected to be between 7% and 10% over the next few years.

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