London · Delayed Price · Currency is GBP · Price in GBX Derwent London Earnings Call Transcripts
Fiscal Year 2025
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Record asset management and leasing in 2025, with strong rental growth and robust development pipeline. Accelerated disposals and disciplined capital allocation underpin a positive outlook, with earnings and returns set to rise significantly by 2030.
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Delivered strong operational performance with 3% total accounting return in H1 2025, robust leasing above ERV, and a 1.2% portfolio valuation uplift. Sustained ERV growth and a healthy development pipeline support a positive medium-term outlook.
Fiscal Year 2024
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Strong ERV growth, high pre-letting rates, and disciplined capital allocation drove a 3.2% total return and 4.4% EPS growth. Outlook for 2025 remains robust, with ERV growth of 3–6% expected and a well-funded pipeline in a supply-constrained London market.
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Leasing momentum remains strong with vacancy at 3% and new leases averaging 9-10% above ERV. Financial position is robust, with modest LTV and high interest cover, while capital recycling and a strong pipeline support growth. Confidence in achieving upgraded ERV guidance persists.
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Rental growth reached its highest half-yearly level since 2016, with strong leasing activity and low vacancy driving an upgrade in rental growth guidance to +3% to +6% for 2024. Financials remain robust, with increased earnings, controlled costs, and a strong balance sheet supporting ongoing development and acquisition plans.