Derwent London's H1 rental income falls 2%, launches share buyback
Derwent London's H1 rental income falls 2%, launches share buyback
Overview
UK office landlord's H1 gross rental income fell 2% yr/yr
EPRA EPS for H1 dropped 6.7% yr/yr, slightly ahead of company guidance
Company launched £50 mln share buyback, repurchasing £18.1 mln in H1
Outlook
2026 EPRA EPS guidance upgraded to 0% to -3% from -3% to -5%
2026 portfolio ERV growth guidance maintained at 4-7%
Company continues to target 7-10% total accounting return over the medium-term, assuming stable yields
Result Drivers
LEASING ACTIVITY - Co said leasing and asset management transactions, including new lettings 5.1% above estimated rental value and renewals averaging 6.5% above previous rent, supported operational performance
COST REDUCTIONS - Co said EPRA EPS was partly helped by £1.5 mln in cost reductions across the group
OLD STREET QUARTER PROVISION - Co recognised a £45.8 mln provision related to the Old Street Quarter EC1 acquisition, which weighed on total accounting return
Company press release: ID:nRSF4826Pa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
H1 Gross Rental Income | Miss | GBP 106.90 mln | GBP 121.06 mln (1 Analyst) |
H1 EPRA EPS |
| GBP 0.49 |
|
H1 Dividend |
| GBP 0.26 |
|
H1 Pretax Loss |
| GBP 17.90 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and 3 "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy."
Wall Street's median 12-month price target for Derwent London PLC is GBp1,875.00, about 11.2% below its August 5 closing price of GBp2,112.00
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
Aug 4 - UK's Segro agrees $19 billion Prologis takeover after investor pressure
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Aug 5 - Hudson Pacific Properties Q2 revenue beats on higher occupancy
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)