London · Delayed Price · Currency is GBP · Price in GBX Derwent London Earnings Call Transcripts
Fiscal Year 2026
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Operational and financial performance exceeded expectations in H1, with strong leasing, low vacancy, and upgraded 2026 earnings guidance. Developments and disposals are progressing well, supported by robust London office demand and disciplined capital allocation.
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.