UK's Derwent London pretax profit beats expectations

Derwent London

26/02/2026 07:21

Overview

UK real estate firm's gross rental income slightly missed analyst expectations

Pretax profit for 2025 beat analyst expectations

Company targets £1bn disposals over next three years for reinvestment

Outlook

Derwent London expects 2026 portfolio ERV growth of 4% to 7%

Near-term reduction in EPRA earnings expected, with growth in H2 2026 and into 2027

Result Drivers

NEW LETTINGS - Derwent London signed £11.3m of new lettings in 2025, 9.9% above ERV, indicating strong demand for its office spaces

ASSET MANAGEMENT - Record asset management activity in 2025 with £58.9m transactions, driven by strong rental growth and proactive engagement with occupiers

DISPOSALS AND INVESTMENT - £216.1m of disposals in 2025, with £33m exchanged in early 2026 and £240m under offer, supported by improving investment market liquidity

Company press release: ID:nRSZ4457Ua

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
FY Gross Rental Income
Slight Miss*
GBP 218.30 mln
GBP 219.97 mln (14 Analysts)
FY EPRA EPS
GBP 0.98
FY Pretax Profit
Beat
GBP 161.50 mln
GBP 112.29 mln (14 Analysts)
FY Dividend
GBP 0.82
FY EPRA NTA per share
GBP 32.25
FY Net Debt
GBP 1.45 bln


*Applies to a deviation of less than 1%; not applicable for per-share numbers.

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 GBp2,025.00, about 10.7% above its February 25 closing price of GBp1,830.00

The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)