Derwent London has published interim results covering the first half of 2015. Over this period, its EPRA net asset value per share increased by 10.9% to 3,226p from 2,908p. EPRA earnings per share were 33.97p, 16.5% up on the equivalent period last year – this was on the back of a 21.9% increase in PBT and a 5% uplift in rental income. They are paying an interim dividend of 12.6p, 8.2% higher than last year.
The property portfolio returned 10.3% – marginally higher than the 10.1% return on the IPD index. They have signed leases on 394,600 sq ft in the year to date representing £20.3m of annual rental income. Within this figure is a letting of 70,000 sq ft at their White Collar factory development in Old Street.
They say they have made substantial progress on their development programme. 40 Chancery Lane WC2, was finished in July, and this helped bring total completions in 2015 to 210,500 sq ft of developments. These buildings are 90% let with another 5% under offer. Works has started on The Copyright Building, 30 Berners Street W1 during the period, whilst 80 Charlotte Street W1 and Brunel Building, Paddington W2 (previously 55-65 North Wharf Road) will start in the second half of this year and the first half of next, respectively. Longer-term, they say they have made progress on two major longer term schemes at 1 Oxford Street W1 (pictured) and 19-35 Baker Street W1. After allowing for our 55% interest in the second property, Derwent London’s share is expected to be over 400,000 sq ft of development, which could start in 2018. Other schemes for the future include 20 Farringdon Road EC1 and Aldgate Union E1. The purchase of the latter will complete in December 2015. Together these will cost £232m. In the short term they think the properties will benefit from their asset management activity and their proximity to Crossrail and, in the longer term (beyond 2020) they will be redeveloped.
DLN : Derwent beats IPD as development programme progresses