Derwent London is reporting that its EPRA net asset value per share increased by 21.6% to 3,535p from 2,908p at 31 December 2014, and by 9.6% from 3,226p at 30 June 2015. Net rental income increased 7.8% to £138.7m from £128.7m in 2014. EPRA profit before tax rose 31.0% to £81.6m from £62.3m last year and EPRA earnings per share increased 25.0% to 71.34p per share. The full year dividend is 43.4p an increase of 9.5% for the year.
Their total property return was 19.9%, ahead of the IPD Central London Offices Index of 19.7%. Estimated rental values on an EPRA basis increased by 11.8% in 2015. They completed 226,000 sq ft of development, booking a 72% profit on cost. During the year the EPRA vacancy rate, which is based on the space available to let, was reduced from 4.1% to 1.3%. Dependent on future pre-letting activity, this could rise in the second half of 2016 as projects are completed.
Projects they are working on will require £569m capital expenditure to complete, which includes £48m of capitalised interest; this will be spread over the next four years. In the next two years they expect to deliver 728,000 sq ft, which is currently 32% let by area. This includes pre-lets in the current year of all the office space (87,150 sq ft) at The Copyright Building W1 to Capita, and 28,600 sq ft at White Collar Factory EC1 to Adobe. The remaining part of the development programme, totalling 620,000 sq ft, relates to two West End developments: 80 Charlotte Street W1 and Brunel Building W2. Neither building completes until 2019, but they are already having preliminary discussions with potential occupiers for part of this space.
Net debt fell 10% to £911.7m in 2015 bring their LTV down to 17.8%.
DLN : Derwent London beats IPD in 2015