REG - Derwent London PLC - Interim Results
Tue 07:00
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RNS Number : 8862U Derwent London PLC 12 August 2025
Derwent London plc ("Derwent London" / "the Group")
UNAUDITED RESULTS FOR SIX MONTHS ENDED 30 JUNE 2025
POSITIONED FOR GROWTH
Paul Williams, Chief Executive of Derwent London, said:
"We have completed £13.8m of leasing, renewals and regears since the start of
2025, with open-market lettings agreed 10.5% ahead of ERV, and with a further
£3.8m under offer. Highlights include Adobe expanding and extending its
occupation at White Collar Factory, the offices at The White Chapel Building
now fully leased, and excellent uplifts achieved on rent reviews at Brunel
Building.
The fundamentals of the letting market continue to strengthen, with demand
well above the long-term average and a significant supply shortage at the top
end. Central London office rents are growing and values continue to recover,
reflected in the improving investment market.
Derwent London is a total return business. Over the last five years, we have
outperformed the total property return of the MSCI Central London Office index
by 230bp per annum. In addition, we beat the index by 120bp in the first half
of this year. Looking forward, our total accounting return outlook is the
strongest it has been for several years with yields past their peak, and we
reiterate our 2025 rental guidance of 3% to 6%, with further growth to follow.
Through ongoing strategic asset recycling, we are optimising our portfolio to
deliver sustained long-term value. Our balance sheet is well-positioned, with
over £200m disposals completed or contracted to complete this year. Proceeds
will be reinvested into developments where we expect attractive returns on
investment. We recently started on site at our next West End project, Holden
House, and plan to commence 50 Baker Street, where we have agreement for a new
headlease, and Greencoat & Gordon House in early 2026."
Key highlights
We have positive momentum across all areas of the business.
· £13.8m of leasing, renewals and regears YTD; open-market leasing
transactions 10.5% above ERV
· EPRA vacancy rate low at 3.7% (Dec 2024: 3.1%)
· Underlying capital growth of 1.2% (H1 2024: -1.7%; FY 2024:
+0.2%)
· ERV growth of 2.0% (H1 2024: 2.0%; FY 2024: 4.3%)
· Equivalent yield 5.69% (Dec 2024: 5.73%)
· Significant refinancing activity in YTD
Key financial highlights
Income statement H1 2025 H1 2024 Change Balance sheet and leverage Jun-25 Dec-24
Gross rental income £109.1m £107.5m 1.5% EPRA NTA per share(1) 3,187p 3,149p
Net rental income £94.0m £95.0m -1.1% Net debt £1.55bn £1.48bn
EPRA EPS(1) 52.2p 52.7p -0.9% EPRA LTV(1) 30.5% 29.9%
Dividend 25.5p 25.0p 2.0% Interest cover 3.2x 3.9x
IFRS result before tax £94.0m £(27.2)m - Net debt/EBITDA 9.7x 9.3x
Total return 3.0% (1.0)% - Cash and undrawn debt £604m £487m
(1) Explanations of how EPRA figures are derived from IFRS are shown in note
25.
Webcast and conference call
There will be a live webcast together with a conference call for investors and
analysts at 09.00 BST today.
To participate in the call or to access the webcast, please register at
www.derwentlondon.com (http://www.derwentlondon.com)
A recording of the webcast will also be made available following the event on
www.derwentlondon.com (http://www.derwentlondon.com)
For further information, please contact:
Derwent London Paul Williams, Chief Executive
Tel: +44 (0)20 3478 4217 (Robert Duncan) Damian Wisniewski, Chief Financial Officer
Robert Duncan, Head of Investor Relations
Brunswick Group Nina Coad
Tel: +44 (0)20 7404 5959 Peter Hesse
CHIEF EXECUTIVE STATEMENT
KEY THEMES AND OUTLOOK
ERV-led capital growth
Rents continue to grow across central London office markets. Alongside stable
investment yields, this is supporting capital growth and we are seeing
attractive returns on our developments and refurbishments. Our total property
return in H1 was 3.1%, a further outperformance of the MSCI Central London
Office Index at 1.9%. In addition, our total accounting return (TAR) was 3.0%,
and 7.3% over the last 12 months.
ERVs across our portfolio increased by 2.0% in H1 2025 and 4.3% over the past
year. This is feeding through into higher property valuations, and will be
followed by a positive impact on earnings as we capture the resulting
reversion through development, refurbishment and asset management activity. As
at 30 June 2025, our total reversion was £114.3m, a 55% uplift over the
current passing rent roll of £208.9m.
Improving investment market liquidity
The global economy and geopolitical backdrop remains volatile, impacting on
the market's cost of capital. Despite this, investment volumes nearly doubled
in the first half and there was a broadening in the range of investors,
supported by London's enduring appeal and positive rental growth outlook. With
good liquidity in lending markets, volumes are expected to continue to
improve.
Results overview
EPRA earnings in H1 were broadly unchanged at 52.2p per share (H1 2024:
52.7p), with the small decline in net rental income as vacant possession has
been secured for future projects offset by a reduction in administrative
expenses. However, finance costs increased with borrowings and interest rates
both higher on average. After payment of the 56p per share final dividend,
underlying capital growth of 1.2% resulted in an increase in NTA per share
over the six months to 3,187p from 3,149p at 31 December 2024. The interim
dividend has been raised by 2.0% to 25.5p per share where it remains well
covered by EPRA earnings.
Following further investment in the portfolio, net debt has increased to
£1.55bn and EPRA LTV to 30.5% as at 30 June 2025. We completed £35m of
investment and trading sales in the first half and have a further c.£180m of
disposals contracted which are expected to complete in H2 as we continue to
reshape our portfolio.
Outlook
Derwent London is a total return business. Over the last five years, we have
outperformed the total property return of the MSCI Central London Office index
by 230bp per annum, and by 120bp in H1 2025. Earnings will naturally be
impacted over the near-term by higher interest rates and as we secure vacant
possession ahead of commencing further value-enhancing development projects.
This positions us for stronger long-term growth. Taking account of development
profits and ERV-led capital growth with yields now stable, our TAR outlook is
the strongest it has been for several years. We reiterate our ERV guidance for
2025 at 3% to 6% on average across our portfolio, with further rental
increases expected to follow.
ROBUST OCCUPATIONAL MARKET AND POSITIVE RENTAL OUTLOOK
Supply of the right space is constrained at a time of high demand with 78% of
new leases being expansion-led in the year to date. Businesses want high
quality, well-designed buildings with best-in-class amenity and sustainability
credentials. Location is important in real estate decisions and occupiers are
focused on those which are well-connected, particularly along the Elizabeth
line. This plays to our strengths with over 80% of our portfolio within a
10-minute walk of a station.
An active period for portfolio leasing and asset management
Since the start of 2025, we have completed £13.8m of new leases and
renewals/regears across the portfolio, including Furnished + Flexible, with
open-market leasing transactions averaging 10.5% above December 2024 ERV. We
have an additional £3.8m of rent under offer. One transaction to highlight
was at White Collar Factory EC1, where Adobe increased its occupational
footprint by 25% and reaffirmed its long-term commitment to the building,
extending its lease to 2038 (with a break in 2033).
Our relationship-driven approach and well-positioned portfolio means we have
maintained a high retention/re-let rate in H1 at 78%. With active demand close
to historic highs, limited supply and rising fit-out and occupational costs,
some occupiers are exploring the 'stay put' option. For landlords like us,
this reduces both void periods and leasing incentives, thereby creating
additional value.
INVESTMENT MARKET IMPROVING
Liquidity in the London investment market is improving after two relatively
slow years. Volumes in H1 were up significantly, reaching c.70% of the
preceding 12-month total. There are several reasons for this:
· London is a key global investment location, attracting a wide
range of capital;
· the strength of the occupational market and rising rents are
giving investors greater confidence; and
· as financing rates reduce, leverage is expected to become
accretive to returns again.
Our strategic reshaping
We have had another successful period of recycling in H1 2025, with completed
investment property disposals of £26m and trading disposals of £9m, plus
c.£180m of contracted sales expected to complete through H2. This includes
Francis House SW1 and c.70% (by value) of the private residential units at our
25 Baker Street W1 development where contracts have been exchanged. In the
preceding five-years, we sold c.£825m of assets, ranging from recently
completed buildings let on long leases to properties in locations where the
outlook for returns had changed. Over the same period, we have successfully
delivered, or are on site at, c.1.5m sq ft of class-leading developments.
As the market improves, we will continue to recycle out of assets where the
capital can be better deployed into our higher returning development pipeline
and other opportunities.
OUR NEXT PHASE OF PROJECTS
Our on-site projects, at 25 Baker Street W1 and Network W1, plus Holden House
W1 which commenced this month, are currently projected to deliver a combined
15% profit on cost and 6.6% yield on completion (based on capitalised interest
through the development phase).
· At 25 Baker Street (298,000 sq ft), practical completion awaits
sign off by the Building Safety Regulator but is expected imminently.
· At Network (139,000 sq ft), which is due to complete by the end
of the year, discussions with potential occupiers are ongoing.
· At Holden House (133,500 sq ft), a best-in-class West End project
opposite the Elizabeth line, demolition enabling work has commenced and a
contractor has been appointed under a Pre-Construction Services Agreement.
Completion is due in H2 2028.
We have also made good progress advancing our next two projects, which are
expected to commence in H1 2026 and together total 343,800 sq ft.
· At 50 Baker Street W1 (236,000 sq ft), we have agreement for a
new 125-year headlease (from scheme completion) with The Portman Estate and a
contractor has been appointed under a Pre-Construction Services Agreement.
· At Greencoat & Gordon House SW1 (107,800 sq ft), we are in
detailed discussions with our preferred contractor for this comprehensive
refurbishment.
Looking at the next phase of developments, we have further projects totalling
a combined c.1.2m sq ft. These include 20 Farringdon Road EC1, Blue Star House
SW9 where we are close to submitting a planning application for change of use
to a hotel, Old Street Quarter EC1 and 230 Blackfriars Road SE1. These
projects offer a range of opportunities, from comprehensive office
refurbishment to mixed-use urban regeneration.
We continue to upgrade the core portfolio with several significant
refurbishments totalling over 100,000 sq ft. These include
1 Oliver's Yard EC1, 1-2 Stephen Street W1 and Middlesex House W1, where we
anticipate good rental uplifts. As well as improving the quality of the
offices and adding amenity space, removal of gas supplies and EPC improvement
works are also being undertaken.
WELL-PLACED BALANCE SHEET
Significant refinancing activity YTD
We have been active in a range of debt markets since the start of the year:
· new £115m two-year unsecured loan facility with HSBC with a
one-year extension option;
· new £250m 7-year unsecured bonds;
· extension of £100m unsecured term loan with NatWest to June
2028; and
· extension of main £450m unsecured syndicated revolving credit
facility into new four-year term with two one-year extension options.
In addition, we repaid the £175m convertible bonds in June and have
subsequently cancelled two short-term £32.5m revolving credit facilities.
BOARD CHANGES
We have announced today that Nigel George has informed the Board of his
intention to retire and stand down from the Board on 31 March 2026. Nigel will
remain a full-time employee until August 2026, following which he will
continue to support the business as a consultant working on a number of Group
projects. Nigel joined the Group in 1988 and was appointed as Director in
1998, during which time he has been integral to the Group's investment
acquisitions and disposals, and was a leading member of the team that secured
the merger with LMS in 2007. The Board wishes to extend its gratitude to him
for his dedication and service in developing the Derwent London brand and its
reputation.
CENTRAL LONDON OFFICE MARKET
Occupational market (source: CBRE)
Leasing activity in H1 2025 was 5.2m sq ft across central London, in line with
both H1 2024 and the 10-year average. The West End saw take-up increase by 38%
to 1.7m sq ft but reduce in the City by 24% to 2.2m sq ft. Overall, space
under offer was 0.2m sq ft lower at 3.0m sq ft.
Active demand remains elevated at 11.7m sq ft, 45% above the five-year
average. The supply-demand imbalance across London remains significant, with
only 11.8m sq ft of space under construction and expected to complete by 2029,
broadly equivalent to one year's demand. Of this, 4.7m sq ft, or 40%, is
already pre-let, rising to nearly 60% for projects completing this year.
Overall vacancy is 7.8%, with the West End at 5.2% and the City at 9.7%.
According to CBRE, nearly two-thirds of current available supply is
secondhand. As the flight to quality continues, new Grade A vacancy rates
remain low in both the West End (1.4%) and the City (2.0%).
Investment market (source: CBRE)
Transaction activity increased to £3.3bn in H1, nearly 70% of the total in
2024. At the same time, the average lot size of £60m was more in line with
the longer-term average having fallen to just £33m last year. Transaction
activity in H1 2025 was dominated by overseas investors, comprising over 70%
of the volume. This is in line with the 10-year average, having dropped to 41%
last year.
Total investor demand in H1 reached £21.4bn with Europe and Asia each
accounting for 35%, followed by North America (18%) and the Middle East (13%).
According to CBRE, prime yields in the West End remained at 4.0% for the
eighth consecutive quarter, compared to the City which saw a 25bp tightening
to 5.5%, the first tightening this cycle.
VALUATION
The Group's investment portfolio was valued at £5.2bn as at 30 June 2025
compared to £5.0bn at the end of 2024. Including development properties, the
underlying portfolio valuation increased by 1.2% and there was a surplus for
the half year of £51.2m which, after accounting adjustments of £8.5m,
produced an overall increase of £42.7m.
Our EPRA rental values were up 2.0% in H1 2025, while the portfolio's true
equivalent yield, on an EPRA basis, moved in by 4bp, from 5.73% to 5.69%, the
first tightening since June 2022. The EPRA initial yield increased marginally
to 4.4% (December 2024: 4.3%) which, after allowing for the expiry of rent
frees and contractual uplifts, rises to 5.2% on a 'topped-up' basis (December
2024: 5.2%).
The valuation of our central London properties, which represent 98% of the
portfolio, increased by 1.1%. The West End was up 1.6%, while the City Borders
were slightly down, at -0.3%. Here the leasing market has been somewhat weaker
with higher vacancy. The balance of the portfolio, our Scottish holdings, was
up 6.2% following strong leasing and asset management activity.
Our two on-site West End developments, 25 Baker Street W1 and Network W1, are
both nearing completion. Valued at £663.7m, they represent 13% of the
portfolio (December 2024: 12%) and after adjusting for capital expenditure,
the valuation uplift was 4.3%. At 25 Baker Street we have finished the
building and await Building Control sign off so the pre-let leases can
complete. All of the offices and the majority of the ancillary retail is
pre-let. Network is progressing well with delivery anticipated at the end of
the year. A further £62m of capital expenditure is required to conclude these
two projects. Excluding these, the underlying portfolio valuation was up 0.8%.
Our portfolio valuation movement of 1.2% outperformed the MSCI Quarterly Index
for Central London Offices which was up by 0.1%. The wider UK All Property
Index increased by 0.6%.
The general stabilisation in valuation yields across our sector resulted in a
3.1% total property return for our portfolio in H1. This compares to the MSCI
Quarterly Index of 1.9% for Central London Offices and 3.0% for UK All
Property.
The Government is seeking to prohibit upward only rent reviews in new leases
as part of its English Devolution and Community Empowerment Bill. It remains
very early days in the process with consultation likely to follow. The market
may consider other alternative rent review models.
Portfolio reversion
Our contracted annualised cash rent roll as of 30 June 2025 was £208.9m, a
2.3% increase over the last six months, mainly from contracted uplifts coming
through. With a portfolio ERV of £323.2m there is £114.3m of potential
reversion. The components within this are:
· Contracted uplifts: £37.0m which is rental income contracted
through a combination of rent-free expiries and fixed uplifts, all of which is
already straight-lined in the income statement under IFRS accounting
standards; our IFRS accounting rent roll at 30 June 2025 was £207.3m;
· On-site developments: £34.5m from the two on-site developments
at current ERV, of which £21.0m or 61% is pre-let;
· Smaller projects: £11.9m of refurbishment projects, which
include 1-2 Stephen Street W1, 1 Oliver's Yard EC1 and 90 Whitfield Street W1;
· Vacant: £10.4m of 'available to let' space, which equates to an
EPRA vacancy rate of 3.7%; and
· Reviews and expiries: £20.5m is from future reviews and
expiries. This has increased from £18.3m at December 2024, as the market
rental growth seen during the period feeds through into reversion.
LEASING & ASSET MANAGEMENT
Since the start of the year, we have continued to see good levels of portfolio
activity with £13.8m of leasing, renewals and regears completed, which
includes £6.0m of lettings, 10.5% ahead of December 2024 ERV. Rent reviews of
£16.7m also completed in the first half, delivering meaningful uplifts and
supporting our strategy to capture reversion. In addition, there is a further
£3.8m of rent under offer.
Key activity in the period:
· White Collar Factory EC1: Major lease extension and expansion
with Adobe increasing its total space by 25% to 67,000 sq ft and extending its
commitment to 2038 (with a break in 2033). Rent on the new space was agreed
25% ahead of the December 2024 ERV.
· The White Chapel Building E1: Following the letting to BE Offices
in early Q3, the offices are now 100% leased.
· 25 Baker Street W1: Pre-let three of the six retail units to
premium F&B operators Notto and Atis.
· Brunel Building W2: Sony Pictures' rent review resulted in a
13.5% uplift over the previous rent and a 10.4% outperformance of ERV.
Leasing activity
New lettings have been agreed in the year to date of £6.0m, on average 10.5%
ahead of December 2024 ERV (excluding short term development-linked deals),
with a further £3.1m of rent currently under offer.
Our 'Furnished + Flexible' offering continues to attract occupiers
prioritising agility and quality. Since the start of the year, we have leased
18,000 sq ft, at a combined rent of £1.2m, on average 8.1% above December
2024 ERV. We currently operate c.220,000 sq ft of 'Furnished + Flexible'
units, equating to 4% of our portfolio, with a further c.130,000 sq ft under
review and expected to be delivered in accordance with occupier demand.
Amenity continues to be a key driver in occupier decision-making, with our
DL/Lounges increasingly influencing leasing and retention outcomes.
We expect continued healthy activity across our portfolio in the second half
based on ongoing discussions with potential occupiers.
Leasing activity in 2025 to date
Let Performance vs
Dec 2024 ERV (%)
Area Income WAULT(1 Open-market Overall(2)
'000 sq ft
£m pa ) Years
H1 2025 99.4 4.3 4.6 8.4 -10.9
H2 to date 30.9 1.7 9.2 15.3 15.3
(1) Weighted average unexpired lease term (to break)
(2) Includes short-term lettings at properties earmarked for redevelopment
Principal lettings in 2025 to date
Property Tenant Area Rent Total annual rent Lease term Lease break Rent free equivalent
sq ft
£ psf
£m
Years
Year
Months
The White Chapel Building E1 BE Offices 23,600 48.60 1.1 9.7 - 22
90 Whitfield Street W1 BMJ 6,500 86.50 0.6 6.2 4.2 10, plus 4 if no break
Morelands EC1 Ingeus(1) 8,400 67.40 0.6 2.4 - 2
White Collar Factory EC1 Adobe 13,400 39.50 0.5 13.3 8.3 17, plus 12 if no break
1-5 Maple Place W1 Union Maritime(1) 5,900 68.20 0.4 5 3 4, plus 3 if no break
230 Blackfriars Road SE1 Quantspark 7,300 45.00 0.3 5 2 6, plus 3 if no break
25 Baker Street W1 Notto 3,300 89.90 0.3 10 - 15
1-2 Stephen Street W1 Sainsbury's 4,600 65.40 0.3 15 10 9
1 Oxford Street W1 Donutelier 875 286.40 0.3 15 10 6
(1) Space leased on a 'Furnished + Flexible' basis
Asset management activity
There was significant asset management activity in H1 2025, with rent review
and renewal discussions a key value driver. In total, 35 asset management
transactions completed, with a revised rent roll of £24.4m, increasing income
by 4.7% and were 1.9% above December 2024 ERV. This included 12 rent reviews
totalling £16.7m, settled on average 5.4% above previous rents and
outperforming ERV by 3.6%. In addition, there was a further £5.5m under offer
at the end of the period.
As we prepare the next phase of our development pipeline for delivery, we have
agreed several short-term deals at Greencoat & Gordon House SW1 and 50
Baker Street W1. Excluding these, lease regears were agreed 3.2% above
previous rent and lease renewals were 4.6% ahead.
Asset management
Number Area Previous rent New rent(1) Uplift New rent vs Dec 2024 ERV
'000 sq ft
£m pa
£m pa
%
%
Overall
Rent reviews 13 217.4 15.8 16.7 5.4 3.6
Lease renewals 12 81.0 2.2 2.3 4.6 -0.9
Lease regears 10 124.2 5.3 5.4 2.6 -1.9
H1 total 35 422.6 23.3 24.4 4.7 1.9
H1 excluding short-term transactions
Lease renewals 11 76.8 2.2 2.3 4.6 2.6
Lease regears 8 118.1 5.1 5.3 3.2 -0.1
(1) Headline rent, shown prior to lease incentives
Portfolio vacancy
As at H1, the EPRA vacancy rate remained low at 3.7% with an ERV of £10.4m,
reflecting the scarcity of space in our portfolio. In addition, space with an
ERV of £11.9m was under refurbishment. In total, 78% of breaks/expiries were
retained or re-let prior to the end of H1, excluding space taken back for
projects and disposals, broadly in line with longer-term levels. The Group's
WAULT (to break) remains attractive at 5.6 years, rising to 6.7 years when
'topped-up' for incentives and pre-lets.
DEVELOPMENTS AND REFURBISHMENTS
We maintained good momentum across our development pipeline in H1 2025, with
£83.9m of project expenditure. As 25 Baker Street W1 and Network W1 near
completion, we are advancing the next phase of schemes. Holden House W1
started on site earlier this month, agreement for a new headlease at 50 Baker
Street W1 in August 2025, and the construction contract tender is underway at
Greencoat & Gordon House SW1.
Major on-site projects - 570,500 sq ft
Our two on-site projects plus Holden House, are expected to deliver at least a
combined 15% development profit and 6.6% yield on completion. With supply of
premium space tightening, we anticipate strong rental growth to continue.
· 25 Baker Street W1 (298,000 sq ft) - an office-led scheme in
Marylebone: we await sign off by the Building Safety Regulator in order to
achieve practical completion, expected imminently. 100% of the office element
plus three of the six retail units have been pre-let. In addition, the sale of
the residential units is progressing well, with contracts exchanged on 23 of
the 41 private units for £113.1m. This reflects an average capital value of
£3,676 psf, ahead of the appraisal value.
· Network W1 (139,000 sq ft) - an office-led scheme in Fitzrovia:
scheduled for completion later this year, comprising 134,000 sq ft of
adaptable offices and 5,000 sq ft of retail. Super-structure works are nearing
completion. Leasing discussions are ongoing with several parties.
· Holden House W1 (133,500 sq ft) - an office-led scheme in
Fitzrovia: commenced in H2 2025, this retained façade development is located
on the corner of Oxford Street and Rathbone Place, opposite the Elizabeth
line. Contractors have been appointed for the demolition and we are
progressing main contract negotiations.
Major on-site development projects
Project Total 25 Baker Street W1 Network W1 Holden House W1
Completion H2 2025 H2 2025 H2 2028
Office (sq ft) 465,000 218,000 134,000 113,000
Residential (sq ft) 52,000 52,000 - -
Retail (sq ft) 53,500 28,000 5,000 20,500
Total area (sq ft) 570,500 298,000 139,000 133,500
Est. future capex(1) (£m) 209 42 20 147
Total cost(2) (£m) 1,036 497 249 290
ERV (c.£ psf) - 100 95 105
ERV (£m pa) 49.4 21.3(3) 13.2 14.9
Pre-let area (sq ft) 275,400 275,400(4) - -
Pre-let income (£m pa, net) 21.0 21.0 - -
Embodied carbon intensity (kgCO(2)e/sqm) - estimate(5) c.600 c.530 c.590
BREEAM rating (target) Outstanding(6) Outstanding Outstanding
NABERS rating (target) 4 Star or above(6) 4.5 Star or above 5 Star or above
Green finance Elected(6) Elected To be elected
(1) As at 30 June 2025. (2) Comprising book value at commencement, capex, fees
and notional interest on land, voids and other costs. 25 Baker Street W1
includes a profit share to freeholder, The Portman Estate. (3) Long leasehold,
net of 2.5% ground rent. (4) Includes five office and three retail units
pre-let, 22 private residential units at 30 June 2025 (plus one further sale
in H2), the pre-sold affordable housing plus the courtyard retail and
Gloucester Place offices pre-sold to The Portman Estate. (5) Embodied carbon
intensity estimate as at mid-stage 5. (6) On main commercial building.
Future development projects - Six schemes totalling c.1.5m sq ft
In addition to our on-site projects, our medium to longer-term pipeline
extends to c.1.5m sq ft across six design-led, amenity-rich projects.
Greencoat & Gordon House SW1 (107,800 sq ft) - commencing in H1 2026:
originally a Victorian warehouse, this building will undergo a comprehensive
refurbishment that celebrates its heritage architecture and will be delivered
into a supply constrained market in 2027. The construction tender process is
underway with preferred parties selected, and we expect to appoint the main
contractor in Q4 2025.
50 Baker Street W1 (c.236,000 sq ft) - expected to commence in H2 2026:
following planning approval in August 2024, we have agreed a new 125-year
headlease (from scheme completion) with The Portman Estate. The
AHMM-designed scheme will deliver high quality offices, retail, and
residential space with class-leading sustainability credentials, including low
embodied carbon of c.530 kgCO(2)e/sqm and a target 5-star NABERS UK rating.
20 Farringdon Road EC1 (166,300 sq ft) - due to commence in 2027: A Buckley
Gray Yeoman designed repositioning and comprehensive refurbishment of the
building which sits adjacent to Farringdon Elizabeth line station. The scheme
will include a new reception, significantly enhanced amenity and refurbished
office floors incorporating sustainability improvements.
Blue Star House SW9 (c.86,100 sq ft) - a proposed development comprising a
341-room hotel with ancillary offices. A planning application is expected to
be submitted in Q3 2025. The scheme retains the existing building frame, with
a new-build extension to maximise the site's potential.
Old Street Quarter EC1 (c.750,000 sq ft) - acquisition of this 2.5-acre island
site is scheduled to complete from late 2027 (conditional on delivery by the
vendor of the new eye hospital at St Pancras and subsequent vacant
possession), when the balance of the £239m purchase price will be payable. We
are exploring a mixed-use campus, with a planning application targeted for H2
2026.
230 Blackfriars Road SE1 (c.200,000 sq ft) - our early studies show capacity
for a substantial redevelopment of this 1970s building, potentially more than
tripling the existing floor area, subject to regearing of the headlease.
Refurbishments
Rolling refurbishments continue to represent a growing share of capital
expenditure as we upgrade the portfolio. These projects are designed to
deliver attractive rental uplifts, enhanced amenity and improved EPC ratings.
We expect to maintain annual capital expenditure of c.£50m on refurbishment
projects.
Works are ongoing at 1 Oliver's Yard EC1 (31,500 sq ft) and 1-2 Stephen
Street W1 (27,200 sq ft), with phased completions expected through the
remainder of 2025. At Middlesex House W1 (49,700 sq ft), the main contractor
has been selected to deliver the scheme, with works scheduled to commence
later this year.
ACQUISITIONS AND DISPOSALS
Key disposal activity in 2025 to date, including contracted sales, is as
follows:
· 4 & 10 Pentonville Road N1: sold with vacant possession for
£26.0m;
· 25 Baker Street W1 - Residential: contracts exchanged on 23 of
the 41 private residential units for £113.1m, with completion expected in H2;
· 25 Baker Street W1 - Retail: As part of our strategic
collaboration with The Portman Estate, we have partially completed works at
Loxton Walk retail, with £6.8m of proceeds received in H1 and a further
£10.9m due in H2; and
· Francis House SW1: contracts exchanged for £54.1m (after agreed
deductions), broadly in line with the December 2024 book value. The sale price
reflects a net initial yield of 4.9%. Completion is scheduled for Q4 2025.
There were £6.1m of acquisitions in the period. The key transaction was the
completion of the headlease regear at Morelands EC1, and the simultaneous
acquisition of 74 Goswell Road EC1 for a combined £5.5m (before costs).
SUSTAINABILITY
Further reduction in energy intensity
Following an 8% reduction in energy intensity in 2024, a further 8% reduction
to 67 kWh/sqm has been achieved in H1 2025 (H1 2024: 73 kWh/sqm). Total energy
consumption was down 9% to 25.4m kWh (H1 2024: 27.7m kWh), with gas 21% lower
and electricity down 3%. There are several drivers behind this reduction,
including the full year benefit of initiatives implemented in 2024:
· continued roll-out of shorter plant run-times;
· installation of air source heat pumps at 1-2 Stephen Street W1
last year; and
· ongoing occupier engagement, with a focus on reducing
out-of-hours usage.
DEFRA's 2025 carbon conversion factors were released in early July.
Electricity factors are 15% lower compared to 2024 as further progress has
been made decarbonising the UK's electricity grid. Applying these factors to
our H1 consumption, our location-based GHG emissions for gas and electricity
reduced by 18% to c.4,500 tCO2e compared to H1 2024.
Panel installation underway at Scottish solar park
Significant progress has been made in the delivery of our c.100 acre 18.4MW
solar park in Scotland. With site preparation and infrastructure works
completed earlier this year, delivery and fitting of the panels commenced this
quarter. Works are progressing in line with programme and electricity
generation is expected to commence in H1 2026. We expect this to cover in
excess of 40% of our London managed portfolio's consumption.
Progressing circular economy initiatives
We continue to develop our approach to the circular economy, in partnership
with Material Index, to optimise re-use across our portfolio, whilst brokering
or donating opportunities to the wider circular economy market. To date, our
rolling refurbishments have achieved an average 35% retention and on-site
re-use rate. We are also working with CollectEco to donate furniture to a
variety of community-based initiatives.
70% of our portfolio rated EPC A or B
To ensure compliance with evolving EPC legislation, we have a clear programme
of upgrade works phased over the coming years. With 70% of our portfolio
already rated EPC A or B (including on-site projects at 25 Baker Street W1 and
Network W1), we remain very well placed ahead of potential 2030 legislation.
This compares to the wider London office market at sub-30%.
FINANCIAL REVIEW
Total accounting return, EPRA NTA, EPS and refinancing activity
Derwent London produced a total accounting return (TAR) for the first half of
2025 of 3.0% or 94p per share, the result of resilient EPRA earnings of 52.2p
per share (H1 2024: 52.7p) and a positive 46p per share revaluation
movement. After allowing for the 2024 final dividend per share of 56p paid
in the first half, EPRA net tangible assets (NTA) per share were up 1.2% to
3,187p from 3,149p as at 31 December 2024.
This positive outcome for H1 2025 contrasts with the first half of 2024 when
the TAR was -1.0%. Investment yields started to firm towards the end of H1
2024 and have barely moved since, evidenced by the positive TAR of 4.2% in H2
2024. When added to the current period's figure, the return over the 12
months to 30 June 2025 was 7.3%, our strongest 12-month result since 2017.
As noted elsewhere in this interim report, there are also encouraging signs
that our TAR outlook should remain strong over the medium term.
In the first half, we continued to invest in our projects with capital
expenditure of £83.9m. Both of the large on-site projects are now
approaching completion and we recently commenced demolition at Holden House
W1. This will be followed in early 2026 by Greencoat and Gordon House SW1
and our 50 Baker Street W1 redevelopment where the headlease has now been
re-geared with the freeholder. In addition, we are carrying out a raft of
upgrades and refurbishments across the portfolio which should produce
attractive returns as rents re-set for the high-quality space we specialise
in. However, in the short term, we expect this activity to have an impact on
EPRA earnings due to lower occupancy levels.
In 2025 to date, we have also refinanced a significant part of our debt book,
arranging longer-term fixed rate bonds to replace the convertible bonds that
matured in June 2025 and extending flexible bank facilities with our
longstanding relationship banks.
Property income and costs
Gross property and other income rose slightly in the first half of 2025 to
£141.0m from £139.9m in H1 2024. Gross rental income was up by 1.5% to
£109.1m (H1 2024: £107.5m), trading property sales proceeds were £2.4m (H1
2024: £3.7m) and the Group also disposed of £6.8m of cumulative retail costs
at 25 Baker Street W1 to the freeholder. These have previously been held as
trading stock and the balance is due to be transferred in the second half.
Service charge income fell back to £20.3m from £26.0m in H1 2024 after a
further easing in energy costs and a number of refurbishment projects across
the portfolio taking buildings out of service charge.
Net rental income was slightly lower at £94.0m in H1 2025 (H1 2024: £95.0m)
following an increase in irrecoverable service charge and property costs.
Service charge void costs increased to £4.1m from £2.8m in H1 2024 due
mainly to ongoing works at 1-2 Stephen Street W1, 1 Oliver's Yard EC1 and
Middlesex House W1. Property costs also increased from £9.3m in H1 2024 to
£10.4m; this was due mainly to running costs at our DL/28 and DL/78 lounges
and the DL/Service food and beverage offer. This cost increased to £1.8m in
H1 compared to £1.2m in H1 2024, partly offset by £0.5m of rent and F&B
income (H1 2024: £0.4m).
Rent and service charge receipts have remained strong in 2025. Impairment
charges in relation to rents receivable reduced as a result to £0.1m in H1
2025 from £0.3m in H1 2024. We have also recognised a further £0.5m
impairment charge relating to the Old Street Quarter EC1 prepaid planning
costs as we develop our masterplan for this future development site.
EPRA like-for-like gross rental income, which excludes the effect of
acquisitions, disposals and developments, increased 3.1% compared to H1 2024
and like-for-like net rental income was up 1.9% compared with H1 2024 after
the higher property costs.
No surrender premiums were recognised in the first half of 2025 but a small
dilapidations receipt and other income brought net property and other income
to £96.6m, down marginally from £97.7m in H1 2024.
Other income statement items
Administrative expenses decreased to £17.5m from £19.8m in H1 2024. This
was partly due to lower bonus and incentive provisions but also reflects an
added allocation of employee costs to our capital projects. These lower
administrative expenses have also helped bring our EPRA cost ratios down to
25.8% in H1 2025 (H1 2024: 26.6%) including direct vacancy costs and 19.4% (H1
2024: 21.7%) excluding direct vacancy costs.
The revaluation surplus on wholly-owned investment properties recognised in
the income statement was £38.2m in H1 2025, a significant improvement over
the £87.2m deficit seen in the first half of 2024. In addition, the Group's
owner-occupied office at Savile Row showed a £4.5m gain (H1 2024: £2.0m
deficit). EPRA NTA also takes account of an upward revaluation of £8.6m
following strong sales of the residential units contracted to date at 100
George Street W1.
Capital recycling in H1 2025 gave rise to a loss after costs of £0.1m on the
£26.0m sale of 4&10 Pentonville Road N1 which completed in January.
These transactions helped take our H1 profit from operations to £117.2m after
the £7.8m loss in H1 2024.
Finance costs increased to £22.8m in the first half (H1 2024: 19.8m) due to
the impact of higher average borrowings as well as rising average interest
rates. Finance costs are stated after capitalised interest of £8.4m, up
from £5.0m in H1 2024 as cumulative project expenditure was substantially
higher this year. We expect the amount of interest capitalised in H2 2025 to
fall as projects complete and new ones commence.
After finance income of £0.2m and movements on interest rate swaps of £0.6m,
the IFRS profit before tax for the half year was £94.0m compared to a loss of
£27.2m in H1 2024.
EPRA earnings, which exclude fair value movements, were £58.6m in H1 2025, a
small reduction from £59.2m in H1 2024 due mainly to the higher finance costs
noted earlier.
Project expenditure
In the first half, acquisitions were £6.1m (H1 2024: nil) and capital
expenditure on the investment portfolio totalled £69.6m (H1 2024: £73.7m)
plus capitalised interest/costs of £7.8m (H1 2024: £4.0m). In addition,
£1.4m (H1 2024: £25.1m) plus capitalised interest/costs of £1.8m (H1 2024:
£0.8m) was incurred on the residential trading property at 25 Baker Street.
A further £0.2m of capitalised interest was incurred on the retail costs
held as trading stock being transferred to The Portman Estate. We also hold
£5.6m of fixed assets relating to the Lochfaulds solar park north of Glasgow,
which includes a transfer from prepayments. Finally, prepaid development
expenditure on the Old Street Quarter site, due to be acquired by the Group no
earlier than late 2027, reduced slightly to £12.5m (30 June 2024: £12.7m and
31 December 2024: £13.0m) after an additional £0.5m impairment charge.
Total expenditure across all these project categories in H1 2025 was £83.9m.
Significant refinancing activity in 2025 to date
Liquidity in the lending markets has been notably strong so far in 2025 and we
have taken advantage of these relatively favourable conditions with
substantial refinancing activity.
As previously reported, we signed a new £115m unsecured term/revolving credit
facility with HSBC in February 2025; this was made up of an £82.5m two-year
term loan with a one-year extension option plus a £32.5m revolving
component.
In June 2025, we issued £250m of 7-year unsecured bonds with a semi-annual
coupon of 5.25% following confirmation in May 2025 by Fitch of an unchanged
credit rating for the Group: the 'issuer default' rating remains at BBB+ and
the 'senior unsecured' rating at A-. There was good demand for the bonds,
the margin at issuance was a competitive 105bp and trading on the secondary
market has been strong.
Also in June, our £175m unsecured convertible bonds were repaid at par. We
continue to favour convertible bonds as part of a diversified capital
structure and it is likely that the market reception to a new issue would
currently be enthusiastic. However, we believe that conditions may be more
attractive in the future for us and our stakeholders. The £100m unsecured
term loan arranged in 2024 with NatWest was also extended by one year to June
2028.
In July 2025, the Group's £450m unsecured revolving credit facility (RCF) was
refinanced with a new four-year term to July 2029 plus two one-year extension
options. Pricing on this facility is broadly the same as for the previous
facility, which had been due to reach maturity in October 2026. The lenders
remain Barclays, HSBC and NatWest with whom we have excellent and longstanding
relationships.
We remain committed to the environmental sustainability criteria set out in
our 'green finance framework' with the green agenda firmly embedded in our
corporate culture. As the green RCF structure contained in the previous
facility remained almost unique six years after being arranged, following
discussions with our lenders, we opted to classify the full £450m as a
conventional RCF. Our £350m 2031 'green' bonds remain and we report in the
section below under our green finance framework as usual.
Following the extension of the main Group RCF, we have now cancelled the two
£32.5m revolving credit tranches that formed part of the bilateral facilities
arranged with Barclays and HSBC, thereby reducing future non-utilisation
fees. The two £82.5m term loans remain unchanged.
Looking ahead to H1 2026 maturities, we have £55m of Private Placement Notes
due in January 2026, followed by the £175m LMS secured bonds in March 2026.
Both are now classified as current liabilities and will be repaid in due
course using available headroom.
Net debt summary
Group net debt increased slightly in the first half to £1.55bn as at 30 June
2025 from £1.37bn at 30 June 2024 and £1.48bn at 31 December 2024. Our
debt covenants remain very comfortable.
EPRA loan-to-value ratio was up slightly to 30.5% from 29.0% in June 2024 and
29.9% in December 2024. Net debt to EBITDA at 30 June 2025 was also slightly
higher at 9.7 times but the recently announced sale of Francis House SW1 for a
net £54.1m plus the contracted sales of residential units at 100 George
Street should bring this ratio back down in the second half.
Total borrowing facilities were £2.1bn at the half year providing us with
£604m of available cash and undrawn facilities (31 December 2024: £487m).
Our £75m 1.36% interest rate swaps expired in April 2025 and, with the
repayment of £175m of 1.5% convertible bonds in June, the weighted average
cash interest rate increased at 30 June 2025 to 4.08%, up from 3.42% at 31
December 2024. The weighted average term of our debt was 4.5 years and
interest cover remains robust at 3.2 times for the half year against our debt
covenant of 1.45 times.
Qualifying expenditure under our Green Finance Framework
The qualifying expenditure as at 30 June 2025 for each Eligible Green Project
(EGP) is summarised below:
Subsequent spend
Project Look-back spend Q4 2019 - FY 2024 H1 2025 spend Disposal/ Cumulative spend
£m £m £m transfer £m
£m
80 Charlotte Street W1 185.6 52.6 - - 238.2
1 Soho Place W1 57.5 167.1 - - 224.6
The Featherstone Building EC1 29.1 69.2 - - 98.3
25 Baker Street W1 26.5 219.2 16.1 (11.9) 249.9
Network W1 23.8 47.4 29.8 - 101.0
322.5 555.5 45.9 (11.9) 912.0
Following £45.9m of qualifying capital expenditure incurred in H1 2025 and
the disposal of trading stock associated with the 25 Baker Street scheme,
cumulative qualifying expenditure on EGPs totalled £912.0m as at 30 June
2025.
80 Charlotte Street, 1 Soho Place, and The Featherstone Building have been
complete for some time and are fully operational. 25 Baker Street, which
commenced on site in 2021, is expected to reach practical completion
shortly. Network, which commenced in 2022, is scheduled to complete in late
H2 2025.
As at 30 June 2025, total drawn borrowings from Green Financing Transactions
amounted to £392m. This includes £42m from the green tranche of the Group's
revolving credit facility (which was refinanced in July 2025) and the £350m
Green Bonds which mature in 2031.
Dividend
The interim dividend has been increased by 2.0% to 25.5p per share from 25.0p
in 2024 and remains well covered by EPRA earnings. It will be paid as a PID
on 10 October 2025 to shareholders on the register as at 5 September 2025.
As required, the Board has considered our other stakeholder obligations when
setting this dividend.
RISK MANAGEMENT AND INTERNAL CONTROLS
We have identified certain principal risks and uncertainties that could
prevent the Group from achieving its strategic objectives and have assessed
how these risks could best be mitigated, where possible, through a combination
of internal controls, risk management and the purchase of insurance cover.
As a predominantly London-based Group, we are particularly sensitive to
factors which impact upon central London's growth and demand for office space.
While the economic background is characterised by continuing elevated levels
of political uncertainty and some cost inflation, economic and employment
growth is expected in London over the next few years. In addition, after a
period of evolving working practices following the pandemic, many occupiers
have been taking longer-term decisions in relation to their office space
needs. As a result, sentiment in our sector has improved steadily over the
last year or so with 2024 showing the highest level of ERV growth in central
London for several years. The strongest growth was seen for high-quality,
well-located amenity-rich buildings in central locations.
ERV growth is forecast to remain at or slightly above these levels in 2025 and
beyond due to a favourable supply/demand position. Supply continues to be
impacted by the high cost of new construction and fit-out, planning
obstacles/costs and relatively high financing rates.
The impact of AI on employment and demand is hard to predict but there is
evidence that recruitment in certain sectors has been reducing as companies
look to understand how future working practices may adapt.
UK base rate cuts to date have been slower than anticipated but we have now
seen five cuts since mid-2024. This has reduced the cost of short-term
borrowing and should help buoy many SME businesses who have experienced
multiple cost pressures. Longer-term interest rates have been more volatile
but have also been moderating slightly. However, medium and long-term gilt
rates have remained substantially above their respective swap rates,
increasing the cost of financing for borrowers in the capital markets.
Finance has, however, been widely available and liquidity in the markets that
we operate in has been very robust in 2025. As a result, Derwent London issued
£250m of 7-year unsecured bonds at 5.25% in June 2025 and has subsequently
extended its £450m unsecured revolving credit facilities with a new 4-year
term and two one-year extension options. This is evidence of the strong
support from banks and other lenders for borrowers with good credit quality.
The principal risks and uncertainties facing the Group in 2025 are set out on
the following pages with the potential impact and the mitigating actions and
controls in place. These risks are reviewed and updated on a regular basis and
were last formally assessed by the Board on 8 August 2025.
The Group's approach to the management and mitigation of these risks is
included in the 2024 Report & Accounts. The Board has confirmed that its
risk appetite and key risk indicators remain appropriate.
Strategic risks
The Group's business model and/or strategy does not create the anticipated
shareholder value or fails to meet investors' and other stakeholders'
expectations.
Risk, effect and progression Controls and mitigation
1. Failure to implement the Group's strategy
The Group's success depends on implementing its strategy and responding · The Board maintains a formal schedule of matters which are
appropriately to internal and external factors including changing work reserved solely for its approval. These matters include decisions relating to
practices, occupational demand, economic and property cycles. the Group's strategy, capital structure, financing, any major property
acquisition or disposal, the risk appetite of the Group and the authorisation
of capital expenditure above the delegated authority limits.
· Frequent strategic and financial reviews. An annual strategic
review (including the five year forecast) and budget is prepared for Board
approval alongside two-year rolling forecasts which are prepared during the
year.
· During the year the Credit Committee processes and remit have
been reviewed. These assess and monitor the financial strength of potential
and existing occupiers. The Group's diverse and high quality occupier base
provides reasonable resilience against occupier default.
· Maintain income from properties until development commences and
have an ongoing strategy to extend income through lease renewals and regears.
Developments are de-risked through pre-lets. The Group de-risks developments
through the use of fixed price contracts and often secures pre-lets.
· Maintain sufficient headroom against all the key ratios and
financial covenants, with a particular focus on interest cover.
· Develop properties in central locations where there is good
potential for future occupier demand, such as near the Elizabeth Line.
Financial risks
The main financial risk is that the Group becomes unable to meet its financial
obligations. The probability of this occurring is low due to our significant
covenant headroom, modest leverage, and strong credit metrics. Financial risks
can arise from movements in the financial markets in which we operate and
inefficient management of capital resources.
Risk, effect and progression Controls and mitigation
2. Refinancing risks
The risk that the Group is unable to raise finance in a cost-effective manner · Early and frequent engagement with existing and potential lenders
that optimises the capital structure of the Group. to maintain long-term relationships.
· Preparation of five-year cash flow and annual budgets support the
Group in raising finance in advance of requirements.
Gradual rise in overall interest costs incurred as debt refinanced over the
next few years, with a consequent impact on earnings and interest cover. · The Group's financial position is reviewed at Executive Committee
and Board meetings with an update on leverage metrics and capital markets from
the CFO.
· Annual review with credit rating agency with whom we maintain a
dialogue.
· Regular updates with our advisers to understand debt market
trends. This includes looking at new forms of debt, considering whether
security should be offered and the appropriate term.
· Recycling of capital is a key assumption in our annual budget and
is updated in each rolling forecast.
3. Income decline
The risk that the Group's income declines due to external factors which are · The Credit Committee, chaired by the CEO or CFO, conducts
outside of its control, such as: detailed reviews of all prospective occupiers and monitors the financial
strength of our existing occupiers.
· macroeconomic factors;
· The Group maintains a diverse range of occupiers. We focus on
· recession; letting our buildings to large and established businesses (headquarter spaces)
where the risk of default is lower, rather than SMEs.
· demand for office space;
· A 'tenants on watch' register is maintained and regularly
· the 'grey' market in office space (i.e. occupier controlled reviewed by the Executive Directors and the Board.
vacant space);
· Ongoing dialogue is maintained with occupiers to understand their
· occupier default or failure; and concerns, requirements and future plans.
· current proposals by UK Government to prohibit upward only rent · Active in-house rent collection, with regular reports to the
reviews. Executive Directors on day 1, 7, 14 and 21 of each rent collection cycle.
· The Group's loan-to-value ratio and strong interest cover ratio
reduces the likelihood that a fall in rent income has a significant impact on
Adverse macroeconomic conditions could lead to a general property market our business continuity.
contraction and a decline in rental values and Group income, which could
impact on property valuation yields. In the event of occupier default, we · Regular review of the lease expiry profile.
could incur impairments and write-offs of trade receivables and/or IFRS 16
lease incentive receivable balances (which arise from the accounting · Rent deposits or guarantees are obtained where considered
requirement to spread any rent-free incentives given to an occupier over the appropriate.
respective lease term), in addition to a loss of rental income.
4. Fall in property values
The potential adverse impact of the economic and political environment on · The Group's mainly unsecured financing makes management of our
property yields has heightened the risk of a fall in property values. financial covenants more straightforward.
· The Group's loan-to-value ratio reduces the likelihood that falls
in property values and income have a significant impact on our business
A fall in property values will have an impact on the Group's net asset value continuity.
and gearing levels.
· The impact of valuation yield changes on the Group's financial
covenants and performance is monitored regularly and subjected to sensitivity
analysis to ensure that adequate headroom is preserved.
· The impact of valuation yield changes is considered when
potential projects are appraised.
· The Group produces a budget, five-year strategic review and three
rolling forecasts during each year which contain detailed sensitivity
analyses, including the effect of changes to valuation yields.
Operational risks
The Group suffers either a financial loss or adverse consequences due to
processes being inadequate or not operating correctly, human factors or other
external events.
Risk, effect and progression Controls and mitigation
5. Reduced development returns
Returns from the Group's developments may be adversely impacted due to: · We use known 'Tier 1' contractors with whom we have established
working relationships and regularly work with tried and tested
· increased construction costs and interest rates; sub-contractors.
· labour and material shortages; · Prior to construction beginning on site, we conduct thorough site
investigations and surveys to reduce the risk of unidentified issues,
· movement in valuation yields; including investigating the building's history and adjacent buildings/sites.
· contractor or subcontractor default; · Engagement with the Building Safety Regulator to mitigate time
required for Building Control approval.
· delays on delivery due to poor contractor performance;
· Adequately appraise investments, including through: (a) the
· unexpected 'on-site' issues; and benchmarking of development costs; and (b) following a procurement process
that is properly designed (to minimise uncertainty around costs) and that
· adverse letting conditions. includes the use of highly regarded quantity surveyors.
· Contractors are paid promptly and are encouraged to pay
subcontractors promptly. Payments to contractors are in place to incentivise
Any significant delay in completing the development projects may result in the achievement of project timescales, with damages agreed in the event of
financial penalties or a reduction in the Group's targeted financial returns delay/cost overruns.
and a deferral of rental income.
· Regular on-site supervision by a dedicated Project Manager who
monitors contractor performance and identifies problems at an early stage,
thereby enabling remedial action to be taken.
· Post-completion reviews are carried out for all major
developments to ensure that improvements to the Group's procedures are
identified, implemented and lessons learned.
6. Cyber-attack on our IT systems
The Group may be subject to a cyber attack that results in it being unable to · Our IT systems are protected by anti-virus software, 24/7/365
use its information systems and/or losing data. threat hunting, security incident detection and response, security anomaly
detection and firewalls that are frequently updated.
· The Group's Business Continuity Plan and cyber security incident
Such an attack could severely restrict the ability of the Group to operate, response procedures are regularly reviewed and tested.
lead to an increase in costs and/or require a significant diversion of
management time, in addition to potential reputational damage. · Security measures are regularly reviewed by the DIT team.
· Independent internal and external penetration/vulnerability tests
are regularly conducted to assess the effectiveness of the Group's security.
· Multi-Factor Authentication is in place for access to our
systems.
· The Group's data is regularly backed up and replicated off-site.
· Frequent staff awareness and training programmes.
7. Cyber-attack on our buildings
The Group is exposed to cyber attacks on its properties which may result in · Our IT systems are protected by anti-virus software, 24/7/365
data breaches or significant disruption to IT-enabled occupier services. threat hunting, security incident detection and response, security anomaly
detection, a vulnerability management, security penetration testing and
firewalls that are frequently updated.
A major cyber attack against the Group or its properties could negatively · Frequent staff awareness and training programmes. Building
impact the Group's business, reputation and operating results. Managers are included in any cyber security awareness training and phishing
simulations.
· The Group's cyber security incident response procedures are
regularly reviewed and tested.
· Physical segregation between the building's core IT
infrastructure and occupiers' corporate IT networks.
· Physical segregation of IT infrastructure between buildings
across the portfolio.
· Sophos Rapid Response team provides unlimited support to our
Cyber Incident Response team in the event of a cyber attack.
8. Our resilience to climate change
If the Group fails to respond appropriately, and sufficiently, to · We are progressing the construction of a 18.4 MW solar park at
climate-related risks or fails to benefit from the potential opportunities. Lochfaulds (Scotland), with delivery anticipated in 2026.
· The Board and Executive Directors receive regular updates and
presentations at both the Executive Committee and Sustainability Committee
This could lead to reputational damage, loss of income and/or a reduction in meetings on environmental and sustainability performance and management
property values. In addition, there is a risk that the cost of construction matters, as well as progress against our pathway to becoming net zero carbon
materials and providing energy, water and other services to occupiers will by 2030.
rise.
· Our SBTi targets are aligned to a challenging 1.5°C climate
scenario in line with our net zero carbon ambition.
· Undertake periodic multi-scenario climate risk assessments
(physical and transition risks), supported by third party experts, to identify
risks and agree mitigation plans.
· Clear disclosure in Group results, Annual Report and
Responsibility Report/data download of key data and performance points which
are internally reviewed and subject to external assurance.
9. Health and safety (H&S)
A major incident occurs at a managed property or development scheme which · Review relevant and effective health, safety, and fire management
leads to significant injuries, harm, or fatal consequences. policies and procedures.
· Ensure the Group has a competent and qualified (CMIOSH) H&S
team, whose performance is monitored and reviewed by the CEO, and the H&S
A major health and safety incident could cause loss of life, life-changing and Risk Committees.
injuries, significant business interruption, Company or Director fines or
imprisonment, reputational damage, and/or loss of our licences to operate. · Check the H&S competence of our main contractors and service
partners is verified by the H&S team prior to their appointment.
· Ensure our Principal contractors must submit suitable
Construction Phase Plans, Site Management and Logistics Plans, and Fire
Management Plans, before works commence.
· The H&S team, with the support of external appointments and
audits, ensure our Construction (Design and Management) (CDM) client duties
are executed and monitored on a monthly basis.
· The Board, Risk Committee and Executive Directors receive
frequent updates and presentations on key H&S matters, including
'Significant Incidents', legislation updates, and H&S performance trends
across the development and managed portfolio.
10. Non-compliance with law and regulations
The Group breaches any of the legislation that forms the regulatory framework · The Board and Risk Committee receive regular reports prepared by
within which the Group operates. the Group's legal advisers identifying upcoming legislative/regulatory
changes. External advice is taken on any new legislation, if required.
· Managing our properties to ensure they are compliant with the
The Group's cost base could increase and management time could be diverted. Minimum Energy Efficiency Standards (MEES) for Energy Performance Certificates
This could lead to damage to our reputation and/or loss of our licence to (EPCs).
operate.
· Ongoing staff training and awareness programmes.
· Group policies and procedures dealing with all key legislation
are available on the Group's intranet.
· Quarterly review of our anti-bribery and corruption procedures by
the Risk Committee.
· A Group whistleblowing system ('Speak-up') for staff is
maintained to report wrongdoing anonymously.
11. Updating management and financial systems
Projects fail to be implemented or do not deliver the anticipated benefits due · Project scope and objectives are clearly defined, documented,
to: approved and communicated to all stakeholders.
· lack of clear scope and strategy; · Before project approval, the costs of implementation are
budgeted, alongside the preparation of a detailed resource plan, to ensure
· underestimation of investment; adequate contingency in case of unforeseen delays.
· lack of project management and governance; · Budget contingency is monitored throughout the project and
reported to the Executive Committee and Board/Committees, as required.
· inadequate support from management;
· For each project there is project management resource assigned,
· inadequate communication to stakeholders; and who are required to follow good governance and internal project management
processes.
· neglecting the impact on stakeholders and importance of change
management. · We provide clear and consistent communication about key projects
to the whole business, throughout the project, with support and leadership
from the executive team.
Project failure could lead to increased costs, diversion of management time or
errors in financial accounting and reporting. Depending on the project, it
could adversely impact upon our wider stakeholders (such as delayed payments
or inaccurate financial reporting etc.) and reputation.
12. Financial instruments - risk management
The Group is exposed through its operations to the following financial risks:
· credit risk;
· market risk; and
· liquidity risk.
In common with other businesses, the Group is exposed to risks that arise from
its use of financial instruments. The following describes the Group's
objectives, policies and processes for managing those risks and the methods
used to measure them. Further quantitative information in respect of these
risks is presented throughout these financial statements.
There have been no substantive changes in the Group's exposure to financial
instrument risks, its objectives, policies and processes for managing those
risks or the methods used to measure them from previous years. Largely due to
an increase in net debt, the Group's EPRA loan-to-value ratio has increased to
30.5% as at 30 June 2025.
Principal financial instruments
The principal financial instruments used by the Group, from which financial
instrument risk arises, are trade receivables, accrued income arising from the
spreading of lease incentives, cash at bank, trade and other payables,
floating rate bank loans, fixed rate loans and private placement notes,
secured and unsecured bonds and interest rate swaps.
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group's risk
management objectives and policies and, whilst retaining ultimate
responsibility for them, it has delegated the authority to executive
management for designing and operating processes that ensure the effective
implementation of the objectives and policies.
The overall objective of the Board is to set policies that seek to reduce risk
as far as possible without unduly affecting the Group's flexibility and its
ability to maximise returns. Further details regarding these policies are set
out below:
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or
counterparty to a financial instrument fails to meet its contractual
obligations. The Group is mainly exposed to credit risk from lease contracts
in relation to its property portfolio. It is Group policy to assess the credit
risk of new tenants before entering into such contracts. The Board has a
Credit Committee which assesses each new tenant before a new lease is signed.
The review includes the latest sets of financial statements, external ratings
when available and, in some cases, forecast information and bank or trade
references. The covenant strength of each tenant is determined based on this
review and, if appropriate, a deposit or a guarantee is obtained. The
Committee also reviews existing tenant covenants from time to time.
Impairment calculations have been carried out on trade receivables and lease
incentive receivables, applying IFRS 9 and IAS 36, respectively. In addition,
the Credit Committee has reviewed its register of tenants at higher risk,
particularly in the retail or hospitality sectors, those in administration or
CVA and the top 50 tenants by size with the remaining occupiers considered on
a sector-by-sector basis.
As the Group operates predominantly in central London, it is subject to some
geographical concentration risk. However, this is mitigated by the wide range
of tenants from a broad spectrum of business sectors.
Credit risk also arises from cash and cash equivalents and deposits with banks
and financial institutions. For banks and financial institutions, only
independently rated parties with a minimum rating of investment grade are
accepted. This risk is also reduced by the short periods that money is on
deposit at any one time.
The carrying amount of financial assets recorded in the financial statements
represents the Group's maximum exposure to credit risk without taking account
of the value of any collateral obtained.
Market risk
Market risk is the risk that the fair value or future cash flows of a
financial instrument will fluctuate due to changes in market prices. Market
risk arises for the Group from its use of variable interest-bearing
instruments (interest rate risk).
It is currently Group policy that generally between 60% and 85% of external
Group borrowings (excluding finance lease payables) are at fixed rates. Where
the Group wishes to vary the amount of external fixed rate debt it holds
(subject to it being generally between 60% and 85% of expected Group
borrowings, as noted above), it makes use of interest rate derivatives to
achieve the desired interest rate profile. Although the Board accepts that
this policy neither protects the Group entirely from the risk of paying rates
in excess of current market rates nor eliminates fully cash flow risk
associated with variability in interest payments, it considers that it
achieves an appropriate balance of exposure to these risks. At 30 June 2025,
the proportion of fixed debt held by the Group was within this range at 80%
(31 December 2024: 85%). During both 2025 and 2024, the Group's borrowings at
variable rate were denominated in sterling.
The Group manages its cash flow interest rate risk by using floating-to-fixed
interest rate swaps, where appropriate. When the Group raises long-term
borrowings, it is generally at fixed rates.
Liquidity risk
Liquidity risk arises from the Group's management of working capital and the
finance charges and principal repayments on its debt instruments. It is the
risk that the Group will encounter difficulty in meeting its financial
obligations as they fall due.
The Group's policy is to ensure that it will always have sufficient headroom
in its loan facilities to allow it to meet its liabilities when they become
due. To achieve this aim, it seeks to maintain committed facilities to meet
the expected requirements. The Group also seeks to reduce liquidity risk by
fixing interest rates (and hence cash flows) on a portion of its long-term
borrowings. This is further explained in the 'market risk' section above.
Executive management receives rolling two-year projections of cash flow and
loan balances on a regular basis as part of the Group's forecasting processes.
At the balance sheet date, these projections indicated that the Group expected
to have sufficient liquid resources to meet its obligations under all
reasonably expected circumstances.
The Group's loan facilities and other borrowings are spread across a range of
banks and financial institutions so as to minimise any potential concentration
of risk. The liquidity risk of the Group is managed centrally by the finance
department.
Capital disclosures
The Group's capital comprises all components of equity (share capital, share
premium, other reserves and retained earnings).
The Group's objectives when maintaining capital are:
· to safeguard the entity's ability to continue as a going concern
so that it can continue to provide above average long-term returns for
shareholders and support for its other stakeholders; and
· to provide an above average annualised total accounting return to
shareholders.
The Group sets the amount of capital it requires in proportion to risk. The
Group manages its capital structure and makes adjustments to it in light of
changes in economic conditions and the risk characteristics of the underlying
assets. In order to maintain or adjust the capital structure, the Group may
vary the amount of dividends paid to shareholders subject to the rules imposed
by its REIT status. It may also seek to redeem bonds, return capital to
shareholders, issue new shares or sell assets to reduce debt. Consistent with
others in its industry, the Group monitors capital on the basis of NAV gearing
and loan-to-value ratio. During 2025, the Group's strategy, which was
unchanged from 2024, was to maintain the NAV gearing below 80% in normal
circumstances. These two gearing ratios, as well as the interest cover ratio
and net debt to EBITDA, are defined in the list of definitions at the end of
this announcement and are derived in note 26.
The Group is also required to ensure that it has sufficient property assets
which are not subject to fixed or floating charges or other encumbrances. Most
of the Group's debt is unsecured and, accordingly, there was £4.8bn of
uncharged property as at 30 June 2025.
Statement of Directors' responsibilities
The Directors' confirm that, to the best of their knowledge, these condensed
interim financial statements have been prepared in accordance with UK-adopted
International Accounting Standard 34, 'Interim Financial Reporting' and the
Disclosure Guidance and Transparency Rules sourcebook of the United Kingdom's
Financial Conduct Authority and that the interim management report includes a
fair review of the information required by DTR 4.2.7 and DTR 4.2.8, namely:
· An indication of important events that have occurred during the
first six months of the financial year and their impact on the condensed set
of financial statements, and a description of the principal risks and
uncertainties for the remaining six months of the financial year; and
· Material related-party transactions in the first six months of
the financial year and any material changes in the related-party transactions
described in the last Annual Report.
The Directors are listed in the Derwent London plc Annual Report of 31
December 2024 and a list of the current Directors is maintained on the Derwent
London plc website: www.derwentlondon.com. The maintenance and integrity of
the Derwent London website is the responsibility of the Directors.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
On behalf of the Board
Paul M.
Williams
Damian M.A. Wisniewski
Chief
Executive
Chief Financial Officer
11 August 2025
GROUP CONDENSED INCOME STATEMENT
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
Unaudited Unaudited Audited
Note £m £m £m
Gross property and other income 5 141.0 139.9 276.9
Net property and other income 5 96.6 97.7 198.3
Administrative expenses (17.5) (19.8) (41.1)
Revaluation surplus/(deficit) 10 38.2 (87.2) (2.7)
(Loss)/profit on disposal 6 (0.1) 1.5 1.9
Profit/(loss) from operations 117.2 (7.8) 156.4
Finance income 7 0.2 0.2 0.3
Finance costs 7 (22.8) (19.8) (39.9)
Movement in fair value of derivative financial instruments (0.6) (0.9) (2.3)
Share of results of joint ventures 8 - 1.1 1.5
Profit/(loss) before tax 94.0 (27.2) 116.0
Tax credit/(charge) 9 0.5 (0.3) (0.1)
Profit/(loss) for the period 94.5 (27.5) 115.9
Basic earnings per share 25 84.18p (24.50p) 103.24p
Diluted earnings per share 25 83.92p (24.50p) 102.93p
GROUP CONDENSED STATEMENT OF COMPREHENSIVE INCOME
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
Unaudited Unaudited Audited
Note £m £m £m
Profit/(loss) for the period 94.5 (27.5) 115.9
Actuarial losses on defined benefit pension scheme - - (0.4)
Revaluation surplus/(deficit) of owner-occupied property 10 4.5 (2.0) 2.9
Deferred tax (charge)/credit on revaluation 20 (1.1) 0.5 (0.6)
Other comprehensive income/(expense) that will not be
reclassified to profit or loss 3.4 (1.5) 1.9
Total comprehensive income/(expense) relating to the period 97.9 (29.0) 117.8
GROUP CONDENSED BALANCE SHEET
30.06.2025 30.06.2024 31.12.2024
Unaudited Unaudited Audited
Note £m £m £m
Non-current assets
Investment property 10 4,791.4 4,471.1 4,670.1
Property, plant and equipment 11 61.8 47.5 52.0
Investments 13 - 36.9 -
Deferred tax 20 - 0.1 -
Pension scheme surplus 1.8 2.0 1.8
Other receivables 14 199.3 199.6 201.0
5,054.3 4,757.2 4,924.9
Current assets
Trading property 10 116.6 82.3 115.7
Trading stock 12 10.7 13.0 17.5
Trade and other receivables 15 58.0 51.5 57.8
Derivative financial instruments 18 - 2.0 0.6
Corporation tax asset 0.7 0.4 0.4
Cash and cash equivalents 22 91.7 83.2 71.4
277.7 232.4 263.4
Non-current assets held for sale 16 - - 25.7
Total assets 5,332.0 4,989.6 5,214.0
Current liabilities
Borrowings 18 252.4 276.1 194.1
Leasehold liabilities 18 0.4 0.4 0.4
Trade and other payables 17 169.0 178.6 174.7
Provisions 0.2 0.1 0.2
422.0 455.2 369.4
Non-current liabilities
Borrowings 18 1,298.6 1,080.6 1,269.4
Leasehold liabilities 18 34.0 34.0 34.2
Provisions 0.2 0.3 0.4
Deferred tax 20 1.4 - 0.8
1,334.2 1,114.9 1,304.8
Total liabilities 1,756.2 1,570.1 1,674.2
Total net assets 3,575.8 3,419.5 3,539.8
Equity
Share capital 5.6 5.6 5.6
Share premium 196.6 196.6 196.6
Other reserves 945.7 937.9 943.2
Retained earnings 2,427.9 2,279.4 2,394.4
Total equity 3,575.8 3,419.5 3,539.8
GROUP CONDENSED STATEMENT OF CHANGES IN EQUITY
Attributable to equity shareholders
Share Share Other Retained Total
capital premium reserves earnings equity
£m £m £m £m £m
At 1 January 2025 5.6 196.6 943.2 2,394.4 3,539.8
Profit for the period - - - 94.5 94.5
Other comprehensive income - - 3.4 - 3.4
Share-based payments - - (0.9) 1.3 0.4
Dividends paid - - - (62.3) (62.3)
At 30 June 2025 (unaudited) 5.6 196.6 945.7 2,427.9 3,575.8
At 1 January 2024 5.6 196.6 939.3 2,367.3 3,508.8
Loss for the period - - - (27.5) (27.5)
Other comprehensive expense - - (1.5) - (1.5)
Share-based payments - - 0.1 1.3 1.4
Dividends paid - - - (61.7) (61.7)
At 30 June 2024 (unaudited) 5.6 196.6 937.9 2,279.4 3,419.5
At 1 January 2024 5.6 196.6 939.3 2,367.3 3,508.8
Profit for the year - - - 115.9 115.9
Other comprehensive income/(expense) - - 2.3 (0.4) 1.9
Share-based payments - - 1.6 1.4 3.0
Dividends paid - - - (89.8) (89.8)
At 31 December 2024 (audited) 5.6 196.6 943.2 2,394.4 3,539.8
GROUP CONDENSED CASH FLOW STATEMENT
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
Unaudited Unaudited Audited
Note £m £m £m
Operating activities
Cash generated from operations 19 73.6 58.7 102.6
Interest received 0.2 0.2 0.3
Interest and other finance costs paid (14.9) (15.5) (38.3)
Tax paid in respect of operating activities (0.1) - -
Net cash from operating activities 58.8 43.4 64.6
Investing activities
Acquisition of properties (13.7) - (47.0)
Capital expenditure(1) (72.9) (67.5) (139.9)
Disposal of investment properties 25.6 73.0 85.5
Purchase of property, plant and equipment (3.2) (0.2) (1.6)
Indirect taxes (paid)/received in respect of investing activities (0.2) 1.7 1.1
Net cash (used in)/from investing activities (64.4) 7.0 (101.9)
Financing activities
Net proceeds of bond issue 247.9 - -
Net movement in revolving bank loans (68.5) 19.3 26.5
Drawdown of term bank loans 82.5 - 182.5
Payment of arrangement fees (0.7) - (0.7)
Repayment of secured loan - - (83.0)
Repayment of unsecured convertible bonds (175.0) - -
Settlement of derivative financial instruments (1.2) - -
Dividends paid 21 (59.1) (59.5) (89.6)
Net cash from/(used in) financing activities 25.9 (40.2) 35.7
Increase/(decrease) in cash and cash equivalents in the period 20.3 10.2 (1.6)
Cash and cash equivalents at the beginning of the period 71.4 73.0 73.0
Cash and cash equivalents at the end of the period 22 91.7 83.2 71.4
(1) Finance costs of £8.4m (half year to 30 June 2024: £5.0m; year to 31
December 2024: £11.2m) have been included in capital expenditure (see note
7).
NOTES TO THE FINANCIAL STATEMENTS
1. Basis of preparation
The financial information for the half year to 30 June 2025 and the half year
to 30 June 2024 was not subject to an audit but has been subject to a review
in accordance with the International Standard on Review Engagements (UK and
Ireland) 2410, Review of Interim Financial Information Performed by the
Independent Auditor of the Entity, issued by the Auditing Practices Board.
The comparative financial information presented herein for the year to 31
December 2024 does not constitute the Group's statutory accounts, but is
derived from those accounts. The Group's statutory accounts for the year to 31
December 2024 have been delivered to the Registrar of Companies. The Auditors'
report on those accounts was unmodified, did not draw attention to any matters
by way of an emphasis of matter and did not contain any statement under
Section 498 of the Companies Act 2006.
The financial information in these condensed consolidated interim financial
statements is that of the holding company and all of its subsidiaries (the
'Group'). The Group's condensed consolidated interim financial statements
have been prepared in accordance with UK-adopted IAS 34 and the Disclosure
Guidance and Transparency Rules sourcebook of the UK's Financial Conduct
Authority and should be read in conjunction with the Annual Report and
Accounts for the year to 31 December 2024, which have been prepared in
accordance with UK-adopted International Accounting Standards, (the
"applicable framework"), and have been prepared in accordance with the
requirements of the Companies Act 2006 as applicable to companies reporting
under those standards. All financial statements referred to in this report
have been prepared under the historical cost convention as modified by the
revaluation of investment properties, the revaluation of property, plant and
equipment, assets held for sale, pension scheme, and financial assets and
liabilities held at fair value through profit and loss.
As with most other UK property companies and real estate investment trusts
('REITs'), the Group presents many of its financial measures in accordance
with the guidance criteria issued by the European Public Real Estate
Association ('EPRA'). These measures, which provide consistency across the
sector, are all derived from the IFRS figures in note 25.
Going concern
Under Provision 30 of the UK Corporate Governance Code 2024, the Board needs
to report whether the business is a going concern. In considering this
requirement, the Directors have taken into account the following:
· The Group's latest rolling forecast for the period to 31 December
2026, in particular the cash flows, borrowings and undrawn facilities,
including the 'severe but plausible' downside case.
· The headroom under the Group's financial covenants.
· The risks included on the Group's risk register that could impact
on the Group's liquidity and solvency over the 12 months following approval of
these interim financial statements.
· The risks on the Group's risk register that could be a threat to
the Group's business model and capital adequacy.
The Directors have considered the relatively long-term and predictable nature
of the income receivable under the tenant leases, the Group's EPRA
loan-to-value ratio of 30.5%, the interest cover ratio of 323%, the £604m
total of undrawn facilities and unrestricted cash and the fact that the
average maturity of borrowings was 4.5 years at 30 June 2025. The impact of
the current economic situation, interest rates and cost inflation on the
business and its occupiers have been considered. The likely impact of climate
change has been incorporated into the Group's forecasts which have also taken
account of a programme of EPC upgrades across the portfolio. Based on the
Group's position at half year, rental income would need to decline by 56% and
property values would need to fall by 49% before breaching its financial
covenants.
£55m of US private placement notes and the £175m 6.5% secured bond, which
mature in January 2026 and March 2026, respectively, are now current
liabilities. This has resulted in the Group being in a net current liabilities
position. However, the Group has significant liquidity to fund its ongoing
operations and, as noted above, has access to £604m of available undrawn
facilities and cash as at 30 June 2025. In addition, the Group's £450m
unsecured revolving credit facility, originally set to mature in October 2026,
was extended in July 2025 for a new four-year term, which provides the
Directors with a reasonable expectation that the Group will be able to meet
these current liabilities as they fall due. Please refer to note 23 for
further detail.
The financial position of the Group, its cash flows, liquidity position and
borrowing facilities are described in the financial review. In addition, the
Group's risks and risk management processes can be found within the risk
management and internal controls.
Having due regard to these matters and after making appropriate enquiries, the
Directors have a reasonable expectation that the Group has adequate resources
to continue in operational existence for a period of at least 12 months from
the date of signing of these condensed consolidated interim financial
statements and, therefore, the Directors continue to adopt the going concern
basis in their preparation.
2. Changes in accounting standards
The accounting policies used by the Group in these condensed financial
statements are consistent with those applied in the Group's financial
statements for the year to 31 December 2024, as amended to reflect the
adoption of new standards, amendments and interpretations which became
effective in the year as shown below.
New standards adopted during the period
The following standards, amendments and interpretations were effective for the
first time for the Group's current accounting period and had no material
impact on the financial statements.
IAS 21 (amended) - The Effects of Changes in Foreign Exchange rates.
Standards in issue but not yet effective
The following standards, amendments and interpretations were in issue at the
date of approval of these financial statements but were not yet effective for
the current accounting period and have not been adopted early. Based on the
Group's current circumstances the Directors do not anticipate that their
adoption in future periods will have a material impact on the financial
statements of the Group, with the exception of IFRS 18 where the Directors are
assessing its potential impact.
IFRS 7 and IFRS 9 (amended) - Classification and Measurement of Financial
Instruments;
IFRS 7 and IFRS 9 (amended) - Contracts referencing Nature-dependent
Electricity;
IFRS 18 - Presentation and Disclosure in Financial Statements;
IFRS 19 - Subsidiaries without Public Accountability: Disclosures.
3. Significant judgments, key assumptions and estimates
The preparation of financial statements in accordance with the applicable
framework requires the use of certain significant accounting estimates and
judgements. It also requires management to exercise judgement in the process
of applying the Group's accounting policies. Not all of these accounting
policies require management to make difficult, subjective or complex
judgements or estimates. Estimates and judgements are continually evaluated
and are based on historical experience and other factors, including
expectations of future events that are believed to be reasonable under the
circumstances. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results may differ from
those estimates. The following is intended to provide an understanding of the
policies that management consider critical because of the level of complexity,
judgement or estimation involved in their application and their impact on
these condensed financial statements.
Significant judgement
Compliance with the real estate investment trust (REIT) taxation regime
As a REIT, the Group benefits from tax advantages. Income and chargeable gains
on the qualifying property rental business are exempt from corporation tax.
Income that does not qualify as property income within the REIT rules is
subject to corporation tax in the normal way. There are a number of tests that
are applied annually, and in relation to forecasts, to ensure the Group
remains well within the limits allowed within those tests. The Group met all
the criteria in 2024 in each case and is forecast to meet all the criteria in
2025, thereby ensuring its REIT status is maintained. The Directors intend
that the Group should continue as a REIT for the foreseeable future.
Key source of estimation uncertainty
Property portfolio valuation
The Group uses the valuation carried out by external valuers as the fair value
of its property portfolio. The valuation considers a range of assumptions
including future rental income, investment yields, anticipated outgoings and
maintenance costs, future development expenditure and appropriate discount
rates. The external valuers also make reference to market evidence of
transaction prices for similar properties and take into account the impact of
climate change and related environmental, social and governance
considerations. More information is provided in note 10, including sensitivity
disclosures.
4. Segmental information
IFRS 8 Operating Segments requires operating segments to be identified on the
basis of internal financial reports about components of the Group that are
regularly reviewed by the chief operating decision maker (which in the Group's
case are the four executive Directors assisted by the other 13 members of the
Executive Committee) in order to allocate resources to the segments and to
assess their performance.
The internal financial reports received by the Group's Executive Committee
contain financial information at a Group level as a whole and there are no
reconciling items between the results contained in these reports and the
amounts reported in the financial statements. These internal financial
reports include the IFRS figures but also report the non-IFRS figures for the
EPRA Earnings and Net Asset Value metrics. Reconciliations of each of these
figures to their statutory equivalents are detailed in note 25. Additionally,
information is provided to the Executive Committee showing gross property
income and property valuation by individual property. Therefore, for the
purposes of IFRS 8, each individual property is considered to be a separate
operating segment in that its performance is monitored individually.
The Group's property portfolio includes investment property, owner-occupied
property and trading property and comprised 94% office buildings* in central
London by value (30 June 2024: 96%; 31 December 2024: 95%). The Directors
consider that these individual properties have similar economic
characteristics and therefore have been aggregated into a single operating
segment. The remaining 6% (30 June 2024: 4%; 31 December 2024: 5%) represented
a mixture of retail, residential and light industrial properties, as well as
land, each of which is de minimis in its own right and below the quantitative
threshold in aggregate. Therefore, in the view of the Directors, there is
one reportable segment under the provisions of IFRS 8.
All of the Group's properties are based in the UK. No geographical grouping is
contained in any of the internal financial reports provided to the Group's
Executive Committee and, therefore, no geographical segmental analysis is
required by IFRS 8. However, geographical analysis is included in the tables
below to provide users with additional information. The majority of the
Group's properties are located in London (West End central, West End
borders/outer and City borders), with the remainder in Scotland (Provincial).
* Some office buildings have an ancillary element such as retail or
residential.
Gross property income
Office buildings Other Total
£m £m £m
Half year to 30 June 2025
West End central 64.4 1.2 65.6
West End borders/other 7.2 - 7.2
City borders 33.7 0.5 34.2
Provincial - 2.1 2.1
Total 105.3 3.8 109.1
Half year to 30 June 2024
West End central 62.3 1.1 63.4
West End borders/other 8.4 - 8.4
City borders 33.2 0.4 33.6
Provincial - 2.4 2.4
Gross property income (excl. joint venture) 103.9 3.9 107.8
Share of joint venture gross property income 1.2 - 1.2
Total 105.1 3.9 109.0
Year to 31 December 2024
West End central 126.9 2.2 129.1
West End borders/other 17.0 - 17.0
City borders 66.3 0.7 67.0
Provincial - 4.5 4.5
Gross property income (excl. joint venture) 210.2 7.4 217.6
Share of joint venture gross property income 1.9 - 1.9
Total 212.1 7.4 219.5
A reconciliation of gross property income to gross property and other income
is given in note 5.
Property portfolio
Carrying value Fair value
Office Office
buildings Other Total buildings Other Total
£m £m £m £m £m £m
30 June 2025
West End central 3,278.4 165.8 3,444.2 3,416.8 175.6 3,592.4
West End borders/other 259.4 - 259.4 270.4 - 270.4
City borders 1,147.3 6.2 1,153.5 1,176.1 6.2 1,182.3
Provincial - 104.4 104.4 - 105.0 105.0
Total 4,685.1 276.4 4,961.5 4,863.3 286.8 5,150.1
30 June 2024
West End central 2,959.4 123.8 3,083.2 3,088.9 129.2 3,218.1
West End borders/other 292.7 - 292.7 307.0 - 307.0
City borders 1,136.4 6.1 1,142.5 1,168.4 6.1 1,174.5
Provincial - 79.1 79.1 - 79.7 79.7
Group (excl. joint venture) 4,388.5 209.0 4,597.5 4,564.3 215.0 4,779.3
Share of joint venture 34.8 - 34.8 34.7 - 34.7
Total 4,423.3 209.0 4,632.3 4,599.0 215.0 4,814.0
31 December 2024
West End central 3,172.5 164.3 3,336.8 3,307.7 165.4 3,473.1
West End borders/other 288.8 - 288.8 301.7 - 301.7
City borders 1,136.5 6.1 1,142.6 1,167.3 6.1 1,173.4
Provincial - 92.3 92.3 - 92.9 92.9
Total 4,597.8 262.7 4,860.5 4,776.7 264.4 5,041.1
A reconciliation between the fair value and carrying value of the portfolio is
set out in note 10.
5. Property and other income
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
£m £m £m
Gross rental income 109.1 107.5 214.8
Surrender premiums received - 0.2 2.7
Other property income - 0.1 0.1
Gross property income 109.1 107.8 217.6
Trading property sales proceeds(1) 2.4 3.7 3.7
Trading stock sales proceeds(1) 6.8 - -
Service charge income(1) 20.3 26.0 50.5
Other income(1) 2.4 2.4 5.1
Gross property and other income 141.0 139.9 276.9
Gross rental income 109.1 107.5 214.8
Movement in impairment of receivables (0.1) (0.3) (0.2)
Movement in impairment of prepayments (0.5) (0.1) (0.2)
Service charge income(1) 20.3 26.0 50.5
Service charge expenses (24.4) (28.8) (57.1)
(4.1) (2.8) (6.6)
Property costs (10.4) (9.3) (18.2)
Net rental income 94.0 95.0 189.6
Trading property sales proceeds(1) 2.4 3.7 3.7
Trading property cost of sales (2.3) (3.7) (3.7)
Profit on disposal of trading properties 0.1 - -
Trading stock sales proceeds(1) 6.8 - -
Trading stock cost of sales (6.8) - -
Result on disposal of trading stock - - -
Other property income - 0.1 0.1
Other income 2.4 2.4 5.1
Net surrender premiums received - 0.2 2.7
Dilapidation receipts 0.1 - 0.8
Net property and other income 96.6 97.7 198.3
(1) In line with IFRS 15 Revenue from Contracts with Customers, the Group
recognised £31.9m (half year to 30 June 2024: £32.1m; year to 31 December
2024: £59.3m) of other income, trading property sales proceeds, trading stock
proceeds and service charge income within gross property and other income.
Gross property income includes £0.2m (half year to 30 June 2024: £3.8m; year
to 31 December 2024: £6.3m) relating to rents recognised in advance of cash
receipts.
Gross rental income includes £0.2m (half year to 30 June 2024: £0.2m; year
to 31 December 2024: £0.4m) received in relation to DL/ Lounges. Other income
includes £0.3m (half year to 30 June 2024: £0.2m; year to 31 December 2024:
£0.5m) received from customer services.
Property costs includes £1.8m (half year to 30 June 2024: £1.2m; year to 31
December 2024: £2.9m) in relation to DL/ Lounges and customer services.
Other income relates to fees and commissions earned from tenants in relation
to the management of the Group's properties and customer services. This was
recognised in the Group income statement in accordance with the delivery of
services.
Property costs include amounts in relation to non-recoverable service charge
costs associated with vacant units during periods of refurbishment. These
amounts are not significant and were previously capitalised in the carrying
value of the property.
In October 2024, the Group acquired the remaining 50% interest of the Derwent
Lazari Baker Street Limited Partnership. From that point forward, the results
were consolidated in the table above. See note 8 for further details.
In April 2025, the Group part disposed of its trading stock which was
transferred under development agreements to a third party upon completion.
6. (Loss)/profit on disposal
Half year to 30.06.2025 Half year to 30.06.2024 Year to 31.12.2024
£m £m £m
Investment property
Gross disposal proceeds 26.0 77.9 87.5
Costs of disposal (0.4) (0.8) (0.7)
Net disposal proceeds 25.6 77.1 86.8
Carrying value (25.7) (70.4) (79.3)
Adjustment for lease costs and rents recognised in advance - (5.2) (5.4)
(Loss)/profit on disposal of investment property (0.1) 1.5 2.1
Artwork
Gross disposal proceeds - - -
Costs of disposal - - (0.2)
Net disposal proceeds - - (0.2)
Carrying value - - -
Loss on disposal of artwork - - (0.2)
(Loss)/profit on disposal (0.1) 1.5 1.9
Included within gross disposal proceeds for the period to 30 June 2025 is
£26.0m relating to the disposal of the Group's freehold interest in 4 &
10 Pentonville Road N1, which completed in January 2025.
7. Finance income and finance costs
Half year to 30.06.2025 Half year to 30.06.2024 Year to 31.12.2024
£m £m £m
Finance income
Net interest received on defined benefit pension scheme asset - - (0.1)
Bank interest receivable (0.1) (0.1) (0.2)
Other (0.1) (0.1) -
Finance income (0.2) (0.2) (0.3)
Finance costs
Bank loans 7.6 2.1 6.1
Non-utilisation fees 1.2 0.9 1.9
Unsecured convertible bonds 1.8 2.0 4.0
Unsecured green bonds 3.4 3.4 6.7
Unsecured bonds 0.9 - -
Secured bonds 5.7 5.7 11.4
Unsecured private placement notes 7.8 7.8 15.6
Secured loan - 1.7 2.7
Amortisation of issue and arrangement costs 1.6 1.3 2.6
Amortisation of the fair value of the secured bonds (0.8) (0.8) (1.6)
Obligations under headleases 0.7 0.6 1.3
Settlement of derivative financial instrument 1.2 - -
Other 0.1 0.1 0.4
Gross interest costs 31.2 24.8 51.1
Less: interest capitalised (8.4) (5.0) (11.2)
Finance costs 22.8 19.8 39.9
Finance costs of £8.4m (half year to 30 June 2024: £5.0m; year to 31
December 2024: £11.2m) have been capitalised on development projects, in
accordance with IAS 23 Borrowing Costs, using the Group's average cost of
borrowing during each quarter.
Total finance costs paid to 30 June 2025 were £24.5m (half year to 30 June
2024: £20.6m; year to 31 December 2024: £49.5m) of which £8.4m (half year
to 30 June 2024: £5.0m; year to 31 December 2024: £11.2m) out of a total of
£72.9m (half year to 30 June 2024: £67.5m; year to 31 December 2024:
£139.9m) was included in capital expenditure on the property portfolio in the
Group cash flow statement under investing activities. For the settlement of
the derivative financial instrument, £1.2m was included in the Group cash
flow statement under financing activities.
Prior to the issue of the £250m unsecured bonds in June 2025 (see note 18 for
more information) the Group entered into derivative contracts to hedge against
movements in UK government bond yields during the period between launch and
pricing of the bond. As hedge accounting was not applied, the resulting loss
on settlement of the derivative financial instrument of £1.2m has been
recognised in finance costs.
8. Share of results of joint ventures
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
£m £m £m
Net property income - 1.2 1.9
Administrative expenses - (0.1) (0.1)
Revaluation surplus - - 7.3
- 1.1 9.1
Impairment of additional deferred consideration - - (7.6)
Share of results of joint ventures - 1.1 1.5
In October 2024, the Group acquired the remaining 50% interest of the Derwent
Lazari Baker Street Limited Partnership. From this point forward, the results
were consolidated into the results of the Group.
9. Tax (credit)/charge
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
£m £m £m
Deferred tax
Origination and reversal of temporary differences (0.5) 0.3 0.1
Tax (credit)/charge (0.5) 0.3 0.1
In addition to the tax credit of £0.5m (half year to 30 June 2024: charge of
£0.3m; year to 31 December 2024: charge of £0.1m) that passed through the
Group income statement, a deferred tax charge of £1.1m (half year to 30 June
2024: credit of £0.5m; year to 31 December of 2024: charge of £0.6m) was
recognised in the Group statement of comprehensive income. See note 20 for
further details.
The effective rate of tax for the half year to 30 June 2025 is lower (half
year to 30 June 2024: lower; year to 31 December 2024: lower) than the
standard rate of corporation tax in the UK. The differences are explained
below:
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
£m £m £m
Profit/(loss) before tax 94.0 (27.2) 116.0
Expected tax charge/(credit) based on the standard rate of
corporation tax in the UK of 25% (2024: 25%) 23.5 (6.8) 29.0
Difference between tax and accounting profit on disposals - (0.4) (2.1)
REIT exempt income (11.2) (11.3) (23.7)
Revaluation (surplus)/deficit attributable to REIT properties (10.6) 22.5 1.2
Expenses and fair value adjustments not allowable for
tax purposes 3.2 - 3.6
Capital allowances (4.5) (3.9) (8.2)
Other differences (0.9) 0.2 0.3
Tax (credit)/charge (0.5) 0.3 0.1
10. Property portfolio
Carrying value
Total Owner- Assets Total
investment occupied held for Trading property
Freehold Leasehold property property sale property portfolio
£m £m £m £m £m £m £m
At 1 January 2025 3,209.7 1,460.4 4,670.1 49.0 25.7 115.7 4,860.5
Acquisitions 0.2 5.9 6.1 - - - 6.1
Capital expenditure 54.1 15.5 69.6 - - 1.4 71.0
Interest capitalisation and staff costs 3.2 4.6 7.8 - - 1.8 9.6
Additions 57.5 26.0 83.5 - - 3.2 86.7
Disposals - - - - (25.7) (2.3) (28.0)
Revaluation 33.6 4.6 38.2 4.5 - - 42.7
Movement in grossing up of
headlease liabilities - (0.4) (0.4) - - - (0.4)
At 30 June 2025 3,300.8 1,490.6 4,791.4 53.5 - 116.6 4,961.5
At 1 January 2024 3,280.5 1,270.9 4,551.4 46.1 - 60.0 4,657.5
Capital expenditure 35.4 38.3 73.7 - - 25.1 98.8
Interest capitalisation 0.9 3.1 4.0 - - 0.8 4.8
Additions 36.3 41.4 77.7 - - 25.9 103.6
Disposals (69.8) (0.6) (70.4) - - (3.6) (74.0)
Revaluation (71.4) (15.8) (87.2) (2.0) - - (89.2)
Movement in grossing up of
headlease liabilities - (0.4) (0.4) - - - (0.4)
At 30 June 2024 3,175.6 1,295.5 4,471.1 44.1 - 82.3 4,597.5
At 1 January 2024 3,280.5 1,270.9 4,551.4 46.1 - 60.0 4,657.5
Acquisitions - 47.0 47.0 - - - 47.0
Capital expenditure 82.0 42.8 124.8 - - 57.3 182.1
Interest capitalisation and staff costs 3.4 7.5 10.9 - - 2.0 12.9
Additions 85.4 97.3 182.7 - - 59.3 242.0
Disposals (78.7) (0.6) (79.3) - - (3.6) (82.9)
Transfer from joint venture - 44.4 44.4 - - - 44.4
Transfers (25.7) - (25.7) - 25.7 - -
Revaluation (51.8) 49.1 (2.7) 2.9 - - 0.2
Movement in grossing up of
headlease liabilities - (0.7) (0.7) - - - (0.7)
At 31 December 2024 3,209.7 1,460.4 4,670.1 49.0 25.7 115.7 4,860.5
Adjustments from fair value to carrying value
Total Owner- Assets Total
investment occupied held for Trading property
Freehold Leasehold property property sale property portfolio
£m £m £m £m £m £m £m
At 30 June 2025
Fair value 3,462.9 1,507.9 4,970.8 53.5 - 125.8 5,150.1
Revaluation of trading property - - - - - (9.2) (9.2)
Lease incentives and costs
included in receivables (162.1) (50.2) (212.3) - - - (212.3)
Grossing up of headlease liabilities - 32.9 32.9 - - - 32.9
Carrying value 3,300.8 1,490.6 4,791.4 53.5 - 116.6 4,961.5
At 30 June 2024
Fair value 3,340.5 1,307.7 4,648.2 44.1 - 87.0 4,779.3
Revaluation of trading property - - - - - (4.7) (4.7)
Lease incentives and costs
included in receivables (164.9) (45.3) (210.2) - - - (210.2)
Grossing up of headlease liabilities - 33.1 33.1 - - - 33.1
Carrying value 3,175.6 1,295.5 4,471.1 44.1 - 82.3 4,597.5
At 31 December 2024
Fair value 3,374.1 1,475.7 4,849.8 49.0 26.0 116.3 5,041.1
Selling costs relating to assets
held for sale - - - - (0.3) - (0.3)
Revaluation of trading property - - - - - (0.6) (0.6)
Lease incentives and costs
included in receivables (164.4) (48.4) (212.8) - - - (212.8)
Grossing up of headlease liabilities - 33.1 33.1 - - - 33.1
Carrying value 3,209.7 1,460.4 4,670.1 49.0 25.7 115.7 4,860.5
Reconciliation of fair value
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Portfolio including the Group's share of joint ventures 5,150.1 4,814.0 5,041.1
Less: joint ventures - (34.7) -
IFRS property portfolio 5,150.1 4,779.3 5,041.1
The property portfolio is subject to semi-annual external valuations and was
revalued at 30 June 2025 by external valuers on the basis of fair value in
accordance with The RICS Valuation - Professional Standards, which takes
account of the properties' highest and best use. When considering the highest
and best use of a property, the external valuers will consider its existing
and potential uses which are physically, legally and financially viable. Where
the highest and best use differs from the existing use, the external valuers
will consider the costs and the likelihood of achieving and implementing this
change in arriving at the property valuation. There were no such instances in
the year.
The valuation reports produced by the external valuers are based on
information provided by the Group such as current rents, terms and conditions
of lease agreements, service charges and capital expenditure. This information
is derived from the Group's financial and property management systems and is
subject to the Group's overall control environment. In addition, the valuation
reports are based on assumptions and valuation models used by the external
valuers. The assumptions are typically market related, such as yields and
discount rates, and are based on their professional judgement and market
observation and take into account the impact of climate change and related
environmental, social and governance considerations. Each property is
considered a separate asset class based on the unique nature, characteristics
and risks of the property.
The external valuations for the entire portfolio at June 2025 were carried out
by Knight Frank LLP.
Knight Frank valued the properties at £5,150.1m (30 June 2024: £4,779.3m; 31
December 2024: £5,041.1m). Of the properties revalued, £53.5m (30 June 2024:
£44.1m; 31 December 2024: £49.0m) relating to owner-occupied property was
included within property, plant and equipment and £125.8m (30 June 2024:
£87.0m; 31 December 2024: £116.3m) was included within trading property.
The total fees, including the fee for this assignment, earned by Knight Frank
LLP (or other companies forming part of the same group of companies within the
UK) from the Group is less than 5.0% of their total UK revenues.
In October 2024, the Group acquired the remaining 50% interest of the Derwent
Lazari Baker Street Partnership (the 'joint venture') from Lazari Investments
Limited ('Lazari') for £47.0m. The joint venture held an interest in three
leasehold properties, 38-52, 54-60 and 66-70 Baker Street W1. The fair value
of the properties at the date of acquisition was £88.8m. The £47.0m included
in 'acquisitions' (see year end December 2024 reconciliation table above)
comprises £44.4m for the fair value of Lazari's 50% share in the properties,
£2.2m in acquisition costs, and £0.4m in carrying value adjustments for the
gross-up of headlease liabilities. Following the acquisition, the Group's 50%
interest in the joint venture shown as a £44.4m 'transfer from investments'
in the abovementioned table, has been consolidated in the Group's property
portfolio. See note 13 for further details.
Staff and associated costs directly attributable to the management of major
schemes are capitalised, based on the proportion of time spent on each
relevant scheme.
Net zero carbon and EPC compliance
The Group published its pathway to net zero carbon in July 2020 and has set
2030 as its target date to achieve this. £45.9m (half year to 30 June 2024:
£75.8m; year to 31 December 2024: £123.9m) of eligible 'green' capital
expenditure, in accordance with the Group's Green Finance Framework, was
incurred in the half year to 30 June 2025 on the major developments at 80
Charlotte Street W1, 1 Soho Place W1, The Featherstone Building EC1, 25 Baker
Street W1 and Network W1. In addition, the Group continues to hold carbon
credits to support certain externally validated green projects to offset
embodied carbon.
To quantify one of the impacts of climate change on the valuation, an
independent third-party assessment was carried out in 2021 to estimate the
cost of EPC upgrades across the portfolio. Following a review of the latest
scope changes in building regulation, subsequent inflation, disposals, and
work carried out to date, the estimated amount was £86m at 30 June 2025. Of
this amount, a specific deduction of £35m was included in the 30 June 2025
external valuation. In addition, further amounts have been allowed for in the
expected costs of future refurbishment projects.
Reconciliation of revaluation surplus/(deficit)
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
£m £m £m
Total revaluation surplus/(deficit) 51.2 (89.8) (1.8)
Lease incentives and costs 0.5 (4.4) (7.2)
Assets held for sale selling costs - - (0.3)
Trading property revaluation adjustment (8.6) 5.1 9.1
Other (0.4) (0.1) 0.4
IFRS revaluation surplus/(deficit) 42.7 (89.2) 0.2
Reported in the:
Revaluation surplus/(deficit) 38.2 (87.2) (2.7)
Group income statement 38.2 (87.2) (2.7)
Group statement of comprehensive income 4.5 (2.0) 2.9
42.7 (89.2) 0.2
Sensitivity of measurement to variations in the significant unobservable
inputs
The significant unobservable inputs used in the fair value measurement
categorised within Level 3 of the fair value hierarchy of the Group's property
portfolio, together with the impact of significant movements in these inputs
on the fair value measurement, are shown below:
Impact on fair value measurement Impact on fair value measurement
Unobservable input of significant increase in input of significant decrease in input
Gross ERV Increase Decrease
Net initial yield Decrease Increase
Reversionary yield Decrease Increase
True equivalent yield Decrease Increase
There are inter-relationships between these inputs as they are partially
determined by market conditions. An increase in the reversionary yield may
accompany an increase in gross ERV and would mitigate its impact on the fair
value measurement.
A sensitivity analysis was performed to ascertain the impact on the fair value
of a 25 basis point shift in true equivalent yield and a £2.50 psf shift in
ERV on the property valuations. The Group believes this captures the range of
variations in these key valuation assumptions. The results are shown in the
tables below:
West End West End City Provincial
central borders/other borders commercial Total
True equivalent yield
+25bp (4.5%) (3.5%) (3.8%) (3.3%) (4.2%)
-25bp 5.0% 3.8% 4.1% 3.6% 4.6%
ERV
+£2.50 psf 3.6% 4.8% 4.4% 16.6% 4.1%
-£2.50 psf (3.6%) (4.8%) (4.4%) (16.6%) (4.1%)
11. Property, plant and equipment
Owner-occupied Plant
property and machinery Other Total
£m £m £m £m
At 1 January 2025 49.0 - 3.0 52.0
Additions - 3.1 0.1 3.2
Transfer from prepayments - 2.5 - 2.5
Depreciation - - (0.4) (0.4)
Revaluation 4.5 - - 4.5
At 30 June 2025 53.5 5.6 2.7 61.8
At 1 January 2024 46.1 - 3.8 49.9
Additions - - 0.1 0.1
Depreciation - - (0.5) (0.5)
Revaluation (2.0) - - (2.0)
At 30 June 2024 44.1 - 3.4 47.5
At 1 January 2024 46.1 - 3.8 49.9
Additions - - 0.3 0.3
Depreciation - - (1.0) (1.0)
Revaluation 2.9 - (0.1) 2.8
At 31 December 2024 49.0 - 3.0 52.0
Net book value
Cost or valuation 53.5 5.6 9.5 68.6
Accumulated depreciation - - (6.8) (6.8)
At 30 June 2025 53.5 5.6 2.7 61.8
Net book value
Cost or valuation 44.1 - 9.3 53.4
Accumulated depreciation - - (5.9) (5.9)
At 30 June 2024 44.1 - 3.4 47.5
Net book value
Cost or valuation 49.0 - 9.4 58.4
Accumulated depreciation - - (6.4) (6.4)
At 31 December 2024 49.0 - 3.0 52.0
'Plant and machinery' at 30 June 2025 represents £5.6m of expenditure in
relation to the Group's c.100 acre, 18.4MW solar park in Scotland. Of the
total £5.6m of costs, £2.5m was transferred in the period from prepayments
as the costs now meet the criteria for recognition within Property, plant and
equipment (see note 15). Planning consent for this project was received in
June 2023 with completion anticipated in 2026.
Artwork, which is included within 'Other', is periodically valued by Bonhams
on the basis of fair value using their extensive market knowledge. The latest
valuation was carried out in December 2024. In accordance with IFRS 13 Fair
Value Measurement, the artwork is deemed to be classified as Level 3.
12. Trading stock
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Trading stock 17.5 13.0 17.5
Disposal (see note 5) (6.8) - -
10.7 13.0 17.5
Trading stock relates to capitalised development expenditure incurred which is
due to be transferred under development agreements to a third party upon
completion. This has been included in trading stock, as opposed to trading
property, as the Group does not have an ownership interest in the property.
13. Investments
At 30 June 2025, the Group had a 50% interest in two (30 June 2024: three; 31
December 2024: two) joint venture vehicles, Dorrington Derwent Holdings
Limited and Primister Limited.
In October 2024, the Group acquired the remaining 50% interest of the Derwent
Lazari Baker Street Partnership from Lazari Investments Limited, which was
accounted for as an asset acquisition. This resulted in full ownership of the
assets and liabilities of the partnership.
30.06.2025 30.06.2024 31.12.2024
£m £m £m
At 1 January - 35.8 35.8
Deferred consideration and fees on initial formation of joint venture - - 7.6
Revaluation surplus (see note 8) - - 7.3
Other profit from operations - 1.1 1.8
Transfer to investment property (see note 10) - - (44.4)
Transfer to assets and liabilities - - (0.5)
Impairment of additional deferred consideration - - (7.6)
- 36.9 -
The Group's share of its investments in joint ventures is represented by the
following amounts in the underlying joint venture entities.
Joint ventures Group share
30.06.2025 30.06.2024 31.12.2024 30.06.2025 30.06.2024 31.12.2024
£m £m £m £m £m £m
Non-current assets - 69.8 - - 34.8 -
Current assets - 7.5 - - 3.8 -
Current liabilities - (2.9) - - (1.4) -
Non-current liabilities - (121.0) - - (60.5) -
Net liabilities - (46.6) - - (23.3) -
Loans provided to joint ventures - 60.2 -
Total investment in underlying
joint ventures - (46.6) - - 36.9 -
Net property income - 2.4 3.8 - 1.2 1.9
Administrative expenses - (0.2) (0.3) - (0.1) (0.1)
Revaluation surplus - - 14.6 - - 7.3
Share of results of underlying
joint ventures - 2.2 18.1 - 1.1 9.1
Impairment of additional deferred
consideration - - (7.6)
Share of results in joint ventures - 1.1 1.5
14. Other receivables (non-current)
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Rents recognised in advance 172.7 172.3 173.6
Initial direct letting costs 14.1 14.6 14.4
Prepayments 12.5 12.7 13.0
199.3 199.6 201.0
Other receivables include £172.7m (30 June 2024: £172.3m; 31 December 2024:
£173.6m) after impairments relating to rents recognised in advance as a
result of spreading tenant lease incentives over the expected terms of their
respective leases. This includes rent free and reduced rent periods, capital
contributions in lieu of rent free periods and contracted rent uplifts. In
addition, £14.1m (30 June 2024: £14.6m; 31 December 2024: £14.4m) relates
to the spreading effect of the initial direct costs of letting over the same
term. Together with £25.5m (30 June 2024: £23.3m; 31 December 2024:
£24.8m), which was included as accrued income within trade and other
receivables (see note 15), these amounts totalled £212.3m at 30 June 2025 (30
June 2024: £210.2m; 31 December 2024: £212.8m).
Prepayments represent £12.5m (30 June 2024: £12.7m; 31 December 2024:
£13.0m) of costs incurred in relation to Old Street Quarter EC1. This was
after a £1.3m (30 June 2024: £0.7m; 31 December 2024: £0.8m) impairment in
accordance with IAS 36 Impairment of Assets. In May 2022, the Group entered
into a conditional contract to acquire the freehold of Old Street Quarter
island site. The site is being sold by Moorfields Eye Hospital NHS Foundation
Trust and UCL, together the Oriel joint initiative ("Oriel"). Completion is
subject to Oriel's receipt of final Treasury approval (received in February
2023), delivery by Oriel of a new hospital at St Pancras and subsequent vacant
possession of the site, which is anticipated no earlier than 2027.
The total movement in tenant lease incentives is shown below:
30.06.2025 30.06.2024 31.12.2024
£m £m £m
At 1 January 195.6 194.1 194.1
Amounts taken to income statement (0.2) 3.8 6.3
Movement in lease incentive impairment (0.2) 0.1 0.3
Disposal of investment properties - (4.7) (4.9)
Write off to bad debt - (0.1) (0.2)
195.2 193.2 195.6
Amounts included in trade and other receivables (see note 15) (22.5) (20.9) (22.0)
At period end 172.7 172.3 173.6
15. Trade and other receivables
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Trade receivables 14.8 8.7 13.3
Other receivables 4.3 5.7 3.2
Prepayments 13.2 12.8 15.4
Accrued income
Rents recognised in advance 22.5 20.9 22.0
Initial direct letting costs 3.0 2.4 2.8
Other 0.2 1.0 1.1
58.0 51.5 57.8
Trade receivables are split as follows:
less than three months due 13.0 8.3 12.9
between three and six months due 1.2 0.2 0.2
between six and twelve months due 0.6 0.2 0.2
14.8 8.7 13.3
Trade receivables are stated net of impairment.
In 2025, costs of £2.5m in relation to the Group's solar park on its Scottish
land, were transferred to 'Plant and machinery' within Property, plant and
equipment (see note 11). Previously these costs were included within
prepayments.
The Group has £3.7m (30 June 2024: £4.7m; 31 December 2024: £4.6m) of
provision for bad debts as shown below. £1.3m has been included in trade
receivables, £0.5m in accrued income and £1.9m in prepayments and accrued
income within other receivables (non-current). See note 14.
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Provision for bad debts
At 1 January 4.6 4.6 4.6
Trade receivables provision (0.2) 0.3 0.7
Lease incentive provision 0.2 (0.2) (0.4)
Service charge provision - 0.2 (0.2)
Released (0.9) (0.2) (0.1)
At period end 3.7 4.7 4.6
The provision for bad debts has been split as follows:
less than three months due 0.6 0.9 0.9
between three and six months due 0.3 0.2 0.5
between six and twelve months due 0.4 0.8 0.5
greater than twelve months due 2.4 2.8 2.7
3.7 4.7 4.6
16. Non-current assets held for sale
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Transfer from investment property (see note 10) - - 25.7
- - 25.7
In January 2025, the Group completed the disposal of its freehold interest in
4 & 10 Pentonville N1, disclosed as a non-current asset held for sale as
at December 2024.
17. Trade and other payables
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Trade payables 8.2 8.0 0.6
Other payables 1.3 3.0 3.6
Other taxes 5.3 5.5 7.3
Accruals 41.8 49.7 57.2
Deferred income 51.7 49.5 50.0
Tenant rent deposits 29.3 26.5 27.9
Service charge balances 31.4 36.4 28.1
169.0 178.6 174.7
Deferred income primarily related to rents received in advance.
18. Net debt and derivative financial instruments
30.06.2025 30.06.2024 31.12.2024
Book Fair Book Fair Book Fair
value value Value value value value
£m £m £m £m £m £m
Current liabilities
Other loans 20.0 20.0 20.0 20.0 20.0 20.0
6.5% secured bonds 177.4 177.0 - - - -
2.68% unsecured private placement notes 55.0 54.0 - - - -
3.99% secured loan - - 83.0 82.4 - -
1.5% unsecured convertible bonds - - 173.1 168.2 174.1 171.6
252.4 251.0 276.1 270.6 194.1 191.6
Non-current liabilities
6.5% secured bonds - - 179.0 176.5 178.1 176.7
1.875% unsecured green bonds 347.4 292.4 347.0 276.4 347.2 281.2
5.25% unsecured bonds 247.3 254.2 - - - -
Unsecured private placement notes 398.7 344.0 453.6 391.3 453.6 391.3
Unsecured bank loans 305.2 307.0 101.0 104.0 290.5 293.0
1,298.6 1,197.6 1,080.6 948.2 1,269.4 1,142.2
Borrowings 1,551.0 1,448.6 1,356.7 1,218.8 1,463.5 1,333.8
Derivative financial instruments expiring in
less than one year - - (2.0) (2.0) (0.6) (0.6)
Total borrowings and derivative
financial instruments 1,551.0 1,448.6 1,354.7 1,216.8 1,462.9 1,333.2
Reconciliation to net debt:
Borrowings and derivative financial instruments 1,551.0 1,354.7 1,462.9
Adjustments for:
Leasehold liabilities 34.4 34.4 34.6
Derivative financial instruments - 2.0 0.6
Cash at bank excluding restricted cash (30.6) (20.3) (15.4)
(see note 22)
Net debt 1,554.8 1,370.8 1,482.7
The fair values of the Group's bonds have been estimated on the basis of
quoted market prices, representing Level 1 fair value measurement as defined
by IFRS 13 Fair Value Measurement.
The fair values of the 3.99% secured loan, which was repaid in October 2024,
and the unsecured private placement notes were determined by discounting the
contractual cash flows by the replacement rate. The replacement rate is the
sum of the current underlying Gilt rate plus the market implied margin. These
represent Level 2 fair value measurement.
The fair values of the Group's interest rate swaps, which matured in April
2025, were estimated by using the mid-point of the yield curves prevailing on
the reporting date and represent the net present value of the differences
between the contracted rate and the valuation rate when applied to the
projected balances for the period from the reporting date to the contracted
expiry dates. These represent Level 2 fair value measurement.
The fair values of the Group's bank loans are approximately the same as their
carrying amount, after adjusting for the unamortised arrangement fees, and
also represent Level 2 fair value measurement.
The fair values of the following financial assets and liabilities are the same
as their carrying amounts:
· Cash and cash equivalents.
· Trade receivables, other receivables and accrued income included
within trade and other receivables.
· Trade payables, other payables and accruals included within trade
and other payables.
· Leasehold liabilities.
There have been no transfers between Level 1 and Level 2 or Level 2 and Level
3 in either 2025 or 2024.
In February 2025, Derwent London plc signed an agreement for an unsecured bank
facility of £115m, consisting of an £82.5m term loan and a £32.5m revolving
credit facility (RCF). As of 30 June 2025, the Group had fully drawn all funds
from the term loan facility. The loan is for a two-year term and has a
one-year extension option.
In June 2025, Derwent London plc issued £250m of unsecured bonds on a 7-year
term maturing in 2032. The unsecured instrument pays a coupon of 5.25% and the
effective interest rate is 5.338%. This represents an issue discount of
£1.3m. The unsecured bonds were initially recognised at fair value, net of
the unamortised discount and issue costs of £0.8m, and are subsequently
measured at amortised cost.
In June 2025, the Group's 1.5% unsecured convertible bonds matured and were
repaid, without any conversion to equity, as the strike price of £44.96
exceeded Derwent London plc's spot share price.
Unsecured bank borrowings are accounted for at amortised costs. At 30 June
2025, there was £307.0m (30 June 2024: £104.0m; 31 December 2024: £293.0m)
drawn on the RCFs and term loans and the unamortised arrangement fees were
£1.8m (30 June 2024: £3.0m; 31 December 2024: £2.5m), resulting in the
carrying value being £305.2m (30 June 2024: £101.0m; 31 December 2024:
£290.5m).
Other loans consist of a £20.0m interest-free loan with no fixed repayment
date from a third-party providing development consultancy services on the
residential element of the 25 Baker Street W1 development. The loan will be
repaid from the sale proceeds of these residential apartments after completion
of the scheme, which is now expected in H2 2025. The agreement provides for a
profit share on completion of the sales which, under IFRS 9 Financial
Instruments, has been deemed to have a carrying value of £nil at 30 June 2025
(30 June 2024: £nil; 31 December 2024: £nil). The carrying value of the loan
at 30 June 2025 was £20.0m (30 June 2024: £20.0m; 31 December 2024:
£20.0m).
The 6.5% secured bonds are secured by floating charges over a number of the
Group's subsidiary companies which contained £343.0m (30 June 2024: £384.4m;
31 December 2024: £376.3m) of the Group's properties.
The Group continue to maintain significant headroom on all financial
covenants.
19. Cash generated from operations
The table below shows the reconciliation of cash generated from operations.
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
£m £m £m
Profit/(loss) from operations 117.2 (7.8) 156.4
Adjustment for non-cash items:
Revaluation (surplus)/deficit (38.2) 87.2 2.7
Depreciation 0.4 0.5 1.0
Lease incentive/cost spreading 0.2 (4.1) (6.8)
Share based payments 0.6 1.6 3.1
Ground rent adjustment 0.2 0.2 0.7
Adjustment for other items:
Loss/(profit) on disposal 0.1 (1.5) (1.9)
Changes in working capital:
Increase in receivables balance (3.8) (3.3) (8.8)
(Decrease)/increase in payables balance (8.6) 12.3 9.5
Decrease/(increase) in trading property and trading stock 5.5 (26.4) (53.3)
Cash generated from operations 73.6 58.7 102.6
Cash generated from operations included £1.9m cash inflows (half year to 30
June 2024: £3.6m; year to 31 December 2024: £3.6m) from disposal of trading
property and £6.8m cash inflows (half year to 30 June 2024: £nil; year to 31
December 2024: £nil) in relation to disposals of trading stock. It also
included £10.2m cash outflows (half year to 30 June 2024: £17.3m; year to 31
December 2024: £43.0m) in relation to expenditure on trading properties and
£0.2m cash outflows (half year to 30 June 2024: £4.9m; year to 31 December
2024: £9.8m) in relation to expenditure on trading stock.
20. Deferred tax
Revaluation Other Total
£m £m £m
At 1 January 2025 3.5 (2.7) 0.8
Credited to the income statement (0.1) (0.4) (0.5)
Charged to other comprehensive income 1.1 - 1.1
At 30 June 2025 4.5 (3.1) 1.4
At 1 January 2024 2.8 (2.7) 0.1
Charged to the income statement - 0.3 0.3
Credited to other comprehensive income (0.5) - (0.5)
At 30 June 2024 2.3 (2.4) (0.1)
At 1 January 2024 2.8 (2.7) 0.1
Charged to the income statement 0.1 - 0.1
Charged to other comprehensive income 0.6 - 0.6
At 31 December 2024 3.5 (2.7) 0.8
Deferred tax on the balance sheet revaluation surplus is calculated on the
basis of the chargeable gains that would crystallise on the sale of the
property portfolio at each balance sheet date. The calculation takes account
of any available indexation on the historical cost of the properties. Due to
the Group's REIT status, deferred tax is only provided at each balance sheet
date on properties outside the REIT regime.
Deferred tax assets have been recognised in respect of all tax losses and
other temporary differences where the Directors believe it is probable that
these assets will be recovered.
21. Dividend
Dividend per share Half year to 30.06.2025 Half year to 30.06.2024 Year to 31.12.2024
Payment date PID Non-PID Total
p p p £m £m £m
Current period
2025 interim dividend 10 October 2025 25.5 - 25.5 - - -
Prior year
2024 final dividend 30 May 2025 45.5 10.0 55.5 62.3 - -
2024 interim dividend 11 October 2024 25.0 - 25.0 - - 28.1
70.5 10.0 80.5
2023 final dividend 31 May 2024 39.0 16.0 55.0 - 61.7 61.7
Dividends as reported in the Group statement of changes in equity 62.3 61.7 89.8
2024 final dividend withholding tax 12 July 2025 (7.1) - -
2024 interim dividend withholding tax 14 January 2025 3.9 - (3.9)
2023 final dividend withholding tax 12 July 2024 - (5.9) -
2023 interim dividend withholding tax 12 January 2024 - 3.7 3.7
Dividends paid as reported in the Group cash flow statement 59.1 59.5 89.6
22. Cash and cash equivalents
30.06.2025 30.06.2024 31.12.2024
£m £m £m
Cash at bank 30.6 20.3 15.4
Cash held in restricted accounts
Tenant rent deposits 29.3 26.5 27.9
Service charge balances 31.8 36.4 28.1
91.7 83.2 71.4
23. Post balance sheet events
In July 2025, the Group exchanged contracts for the disposal of its freehold
interest in Francis House SW1 for a consideration of £55.5m (before
transaction costs), less a £1.3m surrender premium in relation to the
basement space. Completion is expected in late 2025.
In July 2025, the Group extended its £450m unsecured revolving credit
facility, originally due to mature in October 2026, for a new four-year term.
The amended facility also includes two one-year extension options.
In July 2025, the Group also cancelled the two £32.5 million revolving credit
tranches that formed part of the bilateral facilities arranged with Barclays
in December 2024 and HSBC in February 2025. The two £82.5 million term loan
components of these facilities remain in place.
In August 2025, the Group agreed a new 125-year headlease (from scheme
completion) for the 50 Baker Street W1 development with the freeholder, The
Portman Estate.
24. Related party disclosure
There have been no related party transactions during the half year to 30 June
2025 that have materially affected the financial position or performance of
the Group. All related party transactions are materially consistent with those
disclosed by the Group in its financial statements for the year ended 31
December 2024.
25. EPRA performance measures
Number of shares
Earnings per share measures Net asset value per share measures
Weighted average for the
period ended At period ended
30.06.2025 30.06.2024 31.12.2024 30.06.2025 30.06.2024 31.12.2024
Unaudited Unaudited Audited Unaudited Unaudited Audited
'000 '000 '000 '000 '000 '000
For use in basic measures 112,258 112,258 112,258 112,258 112,258 112,258
Dilutive effect of share-based payments 346 336 342 380 359 323
For use in other diluted measures 112,604 112,594 112,600 112,638 112,617 112,581
The following tables set out reconciliations between the IFRS and EPRA
Earnings for the period and earnings per share. The adjustments made between
the figures are as follows:
A - Disposal of investment and trading property (including the Group's
share in joint ventures), and associated tax.
B - Revaluation movement on investment property and in joint ventures and
other interests, and associated deferred tax.
C - Fair value movement and settlement costs relating to derivative
financial instruments.
D - Non-operating and exceptional items.
Earnings and earnings per share
Adjustments EPRA
IFRS A B C D basis
£m £m £m £m £m £m
Half year to 30 June 2025 (unaudited)
Net property and other income 96.6 (0.1) 0.5 - - 97.0
Administrative expenses (17.5) - - - 0.1 (17.4)
Revaluation surplus 38.2 - (38.2) - - -
Loss on disposal of investment property (0.1) 0.1 - - - -
Net finance costs (22.6) - - 1.2 - (21.4)
Movement in fair value of derivative
financial instruments (0.6) - - 0.6 - -
Earnings before tax 94.0 - (37.7) 1.8 0.1 58.2
Tax credit 0.5 - (0.1) - - 0.4
Earnings attributable to equity shareholders 94.5 - (37.8) 1.8 0.1 58.6
Earnings per share 84.18p 52.20p
Diluted earnings per share 83.92p 52.04p
During the year, the Group commenced an IT transformation project to implement
a new finance system. In accordance with EPRA Best Practices Recommendations
(September 2024), the associated costs have been excluded from EPRA EPS.
Earnings and earnings per share
Adjustments EPRA
IFRS A B C D basis
£m £m £m £m £m £m
Half year to 30 June 2024 (unaudited)
Net property and other income 97.7 - 0.1 - - 97.8
Administrative expenses (19.8) - - - - (19.8)
Revaluation deficit (87.2) - 87.2 - - -
Profit on disposal of investment property 1.5 (1.5) - - - -
Net finance costs (19.6) - - - - (19.6)
Movement in fair value of derivative
financial instruments (0.9) - - 0.9 - -
Share of results of joint ventures 1.1 - - - - 1.1
Loss before tax (27.2) (1.5) 87.3 0.9 - 59.5
Tax charge (0.3) - - - - (0.3)
(Loss)/earnings attributable to equity shareholders (27.5) (1.5) 87.3 0.9 - 59.2
(Loss)/earnings per share (24.50p) 52.74p
Diluted (loss)/earnings per share (24.50p) 52.58p
The diluted loss per share for the period to 30 June 2024 was restricted to a
loss of 24.50p per share, as the loss per share cannot be reduced by dilution
in accordance with IAS 33, Earnings per Share.
Adjustments EPRA
IFRS A B C D basis
£m £m £m £m £m £m
Year to 31 December 2024 (audited)
Net property and other income 198.3 - 0.2 - - 198.5
Administrative expenses (41.1) - - - - (41.1)
Revaluation deficit (2.7) - 2.7 - - -
Profit on disposal of investment property 1.9 (1.9) - - - -
Net finance costs (39.6) - - - - (39.6)
Movement in fair value of derivative
financial instruments (2.3) - - 2.3 - -
Share of results of joint ventures 1.5 - 0.3 - - 1.8
Earnings before tax 116.0 (1.9) 3.2 2.3 - 119.6
Tax charge (0.1) - - - - (0.1)
Earnings attributable to equity shareholders 115.9 (1.9) 3.2 2.3 - 119.5
Earnings per share 103.24p 106.45p
Diluted earnings per share 102.93p 106.13p
EPRA net asset value metrics
30.06.2025 30.06.2024 31.12.2024
Unaudited Unaudited Audited
£m £m £m
Net assets attributable to equity shareholders 3,575.8 3,419.5 3,539.8
Adjustments for:
Revaluation of trading properties 9.2 4.7 0.6
Deferred tax on revaluation surplus(1) 2.3 1.2 1.8
Fair value of derivative financial instruments - (2.0) (0.6)
Fair value adjustment to secured bonds 2.6 4.3 3.4
EPRA Net Tangible Assets 3,589.9 3,427.7 3,545.0
Per share measure - diluted 3,187p 3,044p 3,149p
Net assets attributable to equity shareholders 3,575.8 3,419.5 3,539.8
Adjustments for:
Revaluation of trading properties 9.2 4.7 0.6
Fair value adjustment to secured bonds 2.6 4.3 3.4
Mark-to-market of fixed rate debt 108.5 141.9 133.6
Unamortised issue and arrangement costs (6.1) (7.0) (6.0)
EPRA Net Disposal Value 3,690.0 3,563.4 3,671.4
Per share measure - diluted 3,276p 3,164p 3,261p
Net assets attributable to equity shareholders 3,575.8 3,419.5 3,539.8
Adjustments for:
Revaluation of trading properties 9.2 4.7 0.6
Deferred tax on revaluation surplus 4.5 2.3 3.5
Fair value of derivative financial instruments - (2.0) (0.6)
Fair value adjustment to secured bonds 2.6 4.3 3.4
Purchasers' costs(2) 350.2 325.0 342.8
EPRA Net Reinstatement Value 3,942.3 3,753.8 3,889.5
Per share measure - diluted 3,500p 3,333p 3,455p
( )
(1) Only 50% of the deferred tax on the revaluation surplus is excluded.
(2) Includes Stamp Duty Land Tax. Total costs assumed to be 6.8% of the
portfolio's fair value.
Cost ratios (unaudited)
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
£m £m £m
Administrative expenses 17.5 19.8 41.1
Write-off/impairment of receivables 0.1 0.3 0.2
Other property costs 9.4 8.3 16.7
Dilapidation receipts (0.1) - (0.8)
Net service charge costs 4.1 2.8 6.6
Service charge costs recovered through rents
but not separately invoiced (1.0) (0.5) (1.3)
Management fees received less estimated profit element (2.4) (2.4) (5.1)
Share of joint ventures' expenses - 0.2 0.3
EPRA Costs (including direct vacancy costs) (A) 27.6 28.5 57.7
Direct vacancy costs (6.8) (5.2) (11.3)
EPRA Costs (excluding direct vacancy costs) (B) 20.8 23.3 46.4
Gross rental income 109.1 107.5 214.8
Ground rent (1.0) (1.0) (1.5)
Service charge components of rental income (1.0) (0.5) (1.3)
Share of joint ventures' rental income less ground rent - 1.2 2.0
Adjusted gross rental income (C) 107.1 107.2 214.0
EPRA Cost Ratio (including direct vacancy costs) (A/C) 25.8% 26.6% 27.0%
EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 19.4% 21.7% 21.7%
In addition to the EPRA Cost Ratios, the Group has calculated an additional
cost ratio based on its property portfolio fair value to recognise the 'total
accounting return' nature of the Group's activities.
Property portfolio at fair value (D) 5,150.1 4,779.3 5,041.1
Portfolio cost ratio (A/D) - annualised 1.1% 1.2% 1.1%
Property-related capital expenditure (unaudited)
Half year to 30.06.2025 Half year to 30.06.2024 Year to 31.12.2024
£m £m £m
Group (excluding joint ventures)
Acquisitions 6.1 - 47.0
Development 56.1 80.0 136.2
Investment properties
Incremental lettable space 0.2 0.8 2.5
No incremental lettable space 16.0 18.0 45.3
Tenant incentives - - 0.3
Capitalised interest 8.3 4.8 10.7
Total capital expenditure (excl. Joint ventures) 86.7 103.6 242.0
Joint ventures (50% share)
Development - 0.8 3.3
Total capital expenditure 86.7 104.4 245.3
Conversion from accrual to cash basis
Group (excluding joint ventures) 10.1 (18.8) (12.2)
Joint ventures (50% share) - (0.1) 0.1
Total capital expenditure on a cash basis 96.8 85.5 233.2
26. Gearing and interest cover
NAV gearing
30.06.2025 30.06.2024 31.12.2024
Note £m £m £m
Net debt 18 1,554.8 1,370.8 1,482.7
Net assets 3,575.8 3,419.5 3,539.8
NAV gearing 43.5% 40.1% 41.9%
Loan-to-value ratio
30.06.2025 30.06.2024 31.12.2024
Note £m £m £m
Group loan-to-value
Net debt 18 1,554.8 1,370.8 1,482.7
Fair value adjustment of secured bonds (2.6) (4.3) (3.4)
Unamortised discount on unsecured green bonds 1.2 1.4 1.3
Unamortised discount on unsecured bonds 1.3 - -
Unamortised issue and arrangement costs 6.1 7.0 6.0
Leasehold liabilities 18 (34.4) (34.4) (34.6)
Drawn debt net of cash (A) 1,526.4 1,340.5 1,452.0
Fair value of property portfolio (B) 10 5,150.1 4,779.3 5,041.1
Loan-to-value ratio (A/B) 29.6% 28.0% 28.8%
Proportionally consolidated loan-to-value
Drawn debt net of cash (A) 1,526.4 1,340.5 1,452.0
Share of cash and cash equivalents in joint ventures - (2.2) -
Drawn debt net of cash including Group's share of joint ventures (C) 1,526.4 1,338.3 1,452.0
Fair value of property portfolio (B) 5,150.1 4,779.3 5,041.1
Share of fair value of property portfolio of joint venture - 34.7 -
Fair value of property portfolio including Group's share of joint venture (D) 5,150.1 4,814.0 5,041.1
Proportionally consolidated loan-to-value (C/D) 29.6% 27.8% 28.8%
EPRA loan-to-value
Drawn debt net of cash including Group's share of joint ventures (C) 1,526.4 1,338.3 1,452.0
Debt with equity characteristics (20.0) (20.0) (20.0)
Adjustment for hybrid debt instruments - 1.3 0.6
Net payables adjustment 62.9 75.6 72.7
Adjusted debt (E) 1,569.3 1,395.2 1,505.3
Fair value of property portfolio including Group's share of joint venture (D) 5,150.1 4,814.0 5,041.1
EPRA loan-to-value (E/D) 30.5% 29.0% 29.9%
Net interest cover ratio
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
Note £m £m £m
Group net interest cover ratio
Net property and other income 5 96.6 97.7 198.3
Adjustments for:
Other income 5 (2.4) (2.4) (5.1)
Other property income 5 - (0.1) (0.1)
Net surrender premiums 5 - (0.2) (2.7)
Profit on disposal of trading properties 5 (0.1) - -
Adjusted net property income 94.1 95.0 190.4
Finance income 7 (0.2) (0.2) (0.3)
Finance costs 7 22.8 19.8 39.9
22.6 19.6 39.6
Adjustments for:
Finance income 7 0.2 0.2 0.3
Other finance costs 7 (1.3) (0.1) (0.4)
Amortisation of fair value adjustment to secured bonds 7 0.8 0.8 1.6
Amortisation of issue and arrangement costs 7 (1.6) (1.3) (2.6)
Finance costs capitalised 7 8.4 5.0 11.2
29.1 24.2 49.7
Net interest cover ratio 323% 393% 383%
Proportionally consolidated net interest cover ratio
Adjusted net property income 94.1 95.0 190.4
Share of joint ventures' net property income - 1.2 1.9
Adjusted net property income including share of joint ventures 94.1 96.2 192.3
Net interest payable 29.1 24.2 49.7
Proportionally consolidated net interest cover ratio 323% 398% 387%
Net debt to EBITDA
Half year to 30.06.2025 Half year to 30.06.2024 Year to 31.12.2024
Note £m £m £m
Net debt to EBITDA
Net debt (A) 18 1,554.8 1,370.8 1,482.7
Profit/(loss) for the period 94.5 (27.5) 115.9
Add back: tax (credit)/charge 9 (0.5) 0.3 0.1
Profit/(loss) before tax 94.0 (27.2) 116.0
Add back: net finance charges 7 22.6 19.6 39.6
Add back: movement in fair value of
derivative financial instruments 0.6 0.9 2.3
117.2 (6.7) 157.9
Add back: loss/(profit) on disposal of investment property 6 0.1 (1.5) (1.9)
Add back: revaluation (surplus)/deficit 10 (38.2) 87.2 2.7
Add back: share of joint venture revaluation deficit 8 - - 0.3
Add back: depreciation 11 0.4 0.5 1.0
EBITDA for the period 79.5 79.5 160.0
EBITDA - prior 6 month period 80.5 83.7 n/a
EBITDA - rolling 12 months (B) 160.0 163.2 160.0
Net debt to EBITDA (A/B) 9.7 8.4 9.3
27. Total accounting return
Half year to 30.06.2025 Half year to 30.06.2024 Year to
31.12.2024
p p p
EPRA Net Tangible Assets on a diluted basis
At end of period 3,187 3,044 3,149
At start of period (3,149) (3,129) (3,129)
Increase/(decrease) 38 (85) 20
Dividend per share 56 55 80
Increase/(decrease) adding back dividend 94 (30) 100
Total accounting return 3.0% (1.0%) 3.2%
28. List of definitions
Better Buildings Partnership (BBP)
The BBP is a collaboration of the UK's leading commercial property owners who
are working together to improve the sustainability of existing commercial
building stock.
Building Research Establishment Environmental Assessment Method (BREEAM)
An environmental impact assessment method for non-domestic buildings.
Performance is measured across a series of ratings; Good, Very Good, Excellent
and Outstanding.
Capital return
The annual valuation movement arising on the Group's portfolio expressed as a
percentage return on the valuation at the beginning of the year adjusted for
acquisitions and capital expenditure.
Company Voluntary Arrangement (CVA)
An insolvency procedure allowing a company with debt problems or that is
insolvent to reach a voluntary agreement with its creditors to repay its debt
over a fixed period.
Diluted figures
Reported results adjusted to include the effects of potential dilutive shares
issuable under the Group's share option schemes and the convertible bonds.
EBITDA
Earnings before interest, tax, depreciation and amortisation.
Earnings/earnings per share (EPS)
Earnings represent the profit or loss for the period attributable to equity
shareholders and are divided by the weighted average number of ordinary shares
in issue during the financial period to arrive at earnings per share.
Energy Performance Certificate (EPC)
An EPC is an asset rating detailing how energy efficient a building is, rated
by carbon dioxide emission on a scale of A-G, where an A rating is the most
energy efficient. They are legally required for any building that is to be put
on the market for sale or rent.
Estimated rental value (ERV)
This is the external valuers' opinion as to the open market rent which, on the
date of valuation, could reasonably be expected to be obtained on a new
letting or rent review of a property.
European Public Real Estate Association (EPRA)
A not-for-profit association with a membership of Europe's leading property
companies, investors and consultants which strives to establish best practices
in accounting, reporting and corporate governance and to provide high-quality
information to investors. EPRA's Best Practices Recommendations includes
guidelines for the calculation of the following performance measures which the
Group has adopted.
- EPRA Earnings Per Share
Earnings from operational activities.
- EPRA loan-to-value ratio (LTV)
Debt divided by the property value. Debt is equal to drawn facilities less
cash, adjusted for debt with equity characteristics, adding back the equity
portion of hybrid debt instruments and including net payables if applicable.
Property value is equal to the fair value of the property portfolio including
net receivables if applicable.
- EPRA Net Reinstatement Value (NRV) per share
NAV adjusted to reflect the value required to rebuild the entity and assuming
that entities never sell assets. Assets and liabilities, such as fair value
movements on financial derivatives are not expected to crystallise in normal
circumstances and deferred taxes on property valuation surpluses are excluded.
- EPRA Net Tangible Assets (NTA) per share
Assumes that entities buy and sell assets, thereby crystallising certain
levels of unavoidable deferred tax.
- EPRA Net Disposal Value (NDV) per share
Represents the shareholders' value under a disposal scenario, where deferred
tax, financial instruments and certain other adjustments are calculated to the
full extent of their liability, net of any resulting tax.
- EPRA capital expenditure
The total expenditure incurred on the acquisition, enhancement, and
development of investment properties. This can include amounts spent on any
investment properties under construction or related development projects, as
well as the amounts spent on the completed (operational) investment property
portfolio. Capitalised finance costs included in the financial statements are
also presented within this total. The costs are presented on both an accrual
and a cash basis, for both the Group and the proportionate share of joint
ventures.
- EPRA Cost Ratio (including direct vacancy costs)
EPRA costs as a percentage of gross rental income less ground rent (including
share of joint venture gross rental income less ground rent). EPRA costs
include administrative expenses, other property costs, net service charge
costs and the share of joint ventures' overheads and operating expenses (net
of any service charge costs), adjusted for service charge costs recovered
through rents and management fees.
- EPRA Cost Ratio (excluding direct vacancy costs)
Calculated as above, but with an adjustment to exclude direct vacancy costs.
- EPRA Net Initial Yield (NIY)
Annualised rental income based on the cash rents passing at the balance sheet
date, less non-recoverable property operating expenses, divided by the market
value of the EPRA property portfolio, increased by estimated purchasers'
costs.
- EPRA 'topped-up' Net Initial Yield
This measure incorporates an adjustment to the EPRA NIY in respect of the
expiration of rent free periods (or other unexpired lease incentives such as
discounted rent periods and stepped rents).
- EPRA Vacancy Rate
Estimated rental value (ERV) of immediately available space divided by the ERV
of the EPRA portfolio.
- EPRA like-for-like rental income growth
The growth in rental income on properties owned throughout the current and
previous periods under review. This growth rate includes revenue recognition
and lease accounting adjustments but excludes properties held for development
in either period and properties acquired or disposed of in either period.
Fair value adjustment
An accounting adjustment to change the book value of an asset or liability to
its market value.
Ground rent
The rent payable by the Group for its leasehold properties. Under IFRS, a
liability is recognised using the discounted payments due. Fixed lease
payments made are allocated between the interest payable and the reduction in
the outstanding liability. Any variable payments are recognised in the income
statement in the period to which it relates.
Headroom
This is the amount left to draw under the Group's loan facilities (i.e. the
total loan facilities less amounts already drawn).
Interest rate swap
A financial instrument where two parties agree to exchange an interest rate
obligation for a predetermined amount of time. These are generally used by the
Group to convert floating rate debt to fixed rates.
Key Performance Indicators (KPIs)
Activities and behaviours, aligned to both business objectives and individual
goals, against which the performance of the Group is annually assessed.
Lease incentives
Any incentive offered to occupiers to enter into a lease. Typically the
incentive will be an initial rent free or half rent period, stepped rents, or
a cash contribution to fit-out or similar costs.
Loan-to-value ratio (LTV)
Drawn debt net of cash divided by the fair value of the property portfolio.
Drawn debt is equal to drawn facilities less cash and the unamortised equity
element of the convertible bonds.
Mark-to-market
The difference between the book value of an asset or liability and its market
value.
MSCI Inc. (MSCI IPD)
MSCI Inc. is a company that produces independent benchmarks of property
returns. The Group measures its performance against both the Central London
Offices Index and the UK All Property Index.
National Australian Built Environment Rating System (NABERS)
This is a building performance rating system, introduced into the UK, which
provides an energy performance benchmark using a simple star rating system on
a 1-6 scale. This helps property owners understand and communicate a
building's performance versus other similar buildings to occupiers. Ratings
are validated on an annual basis.
NAV gearing
Net debt divided by net assets.
Net assets per share or net asset value (NAV)
Equity shareholders' funds divided by the number of ordinary shares in issue
at the balance sheet date.
Net debt
Borrowings plus bank overdraft less unrestricted cash and cash equivalents.
Net debt to EBITDA
Net Debt to EBITDA is the ratio of gross debt less unrestricted cash to
earnings before interest, tax, depreciation and amortisation (EBITDA).
Net interest cover ratio
Net property income, excluding all non-core items divided by interest payable
on borrowings and non-utilisation fees.
Property income distribution (PID)
Dividends from profits of the Group's tax-exempt property rental business
under the REIT regulations.
Non-PID
Dividends from profits of the Group's taxable residual business.
Real Estate Investment Trust (REIT)
The UK Real Estate Investment Trust ("REIT") regime was launched on 1 January
2007. On 1 July 2007, Derwent London plc elected to convert to REIT status.
The REIT legislation was introduced to provide a structure which closely
mirrors the tax outcomes of direct ownership in property and removes tax
inequalities between different real estate investors. It provides a liquid and
publicly available vehicle which opens the property market to a wide range of
investors.
A REIT is exempt from corporation tax on qualifying income and gains of its
property rental business providing various conditions are met. It remains
subject to corporation tax on non-exempt income and gains e.g. interest
income, trading activity and development fees.
REITs must distribute at least 90% of the Group's income profits from its tax
exempt property rental business, by way of dividend, known as a property
income distribution. These distributions can be subject to withholding tax at
20%.
If the Group distributes profits from the non-tax exempt business, the
distribution will be taxed as an ordinary dividend in the hands of the
investors (non-PID).
Rent reviews
Rent reviews take place at intervals agreed in the lease (typically every five
years) and their purpose is usually to adjust the rent to the current market
level at the review date. For upwards only rent reviews, the rent will either
remain at the same level or increase (if market rents are higher) at the
review date.
Reversion
The reversion is the amount by which ERV is higher than the rent roll of a
property or portfolio. The reversion is derived from contractual rental
increases, rent reviews, lease renewals and the letting of space that is
vacant and available to occupy or under development or refurbishment.
Scrip dividend
Derwent London plc sometimes offers its shareholders the opportunity to
receive dividends in the form of shares instead of cash. This is known as a
scrip dividend.
Task Force on Climate-related Financial Disclosures (TCFD)
Set up by the Financial Stability Board (FSB) in response to the G20 Finance
Ministers and Central Bank Governors request for greater levels of
decision-useful, climate-related information; the TCFD was asked to develop
climate-related disclosures that could promote more informed investment,
credit (or lending), and insurance underwriting decisions. In turn, this would
enable stakeholders to understand better the concentrations of carbon-related
assets in the financial sector and the financial system's exposures to
climate-related risks.
'Topped-up' rent
Annualised rents generated by the portfolio plus rent contracted from expiry
of rent free periods and uplifts agreed at the balance sheet date.
Total property return (TPR)
Total property return is a performance measure calculated by the MSCI IPD and
defined in the MSCI Global Methodology Standards for Real Estate Investment as
'the percentage value change plus net income accrual, relative to the capital
employed'.
Total accounting return (TAR)
The movement in EPRA Net Tangible Assets per share on a diluted basis between
the beginning and the end of each financial period plus the dividend per share
paid during the period expressed as a percentage of the EPRA Net Tangible
Assets per share on a diluted basis at the beginning of the year.
Total shareholder return (TSR)
The growth in the ordinary share price as quoted on the London Stock Exchange
plus dividends per share received for the period, expressed as a percentage of
the share price at the beginning of the year.
Transmission and distribution (T&D)
The emissions associated with the transmission and distribution losses in the
grid from the transportation of electricity from its generation source.
Underlying portfolio
Properties that have been held for the whole of the period (i.e. excluding any
acquisitions or disposals made during the period).
Underlying valuation increase
The valuation increase on the underlying portfolio.
Yields
- Net initial yield
Annualised rental income based on cash rents passing at the balance sheet
date, less non-recoverable property operating expenses, divided by the market
value of the property, increased by estimated purchasers' costs.
- Reversionary yield
The anticipated yield, which the net initial yield will rise to once the rent
reaches the estimated rental values.
- True equivalent yield
The constant capitalisation rate which, if applied to all cash flows from the
portfolio, including current rent, reversions to valuers' estimated rental
value and such items as voids and expenditures, equates to the valuation
having taken into account notional purchasers' costs. Rent is assumed to be
received quarterly in advance.
- Yield shift
A movement in the yield of a property asset, or like-for-like portfolio, over
a given period. Yield compression is a commonly-used term for a reduction in
yields.
29. Copies of this announcement will be available on the company's website,
www.derwentlondon.com, from the date of this statement. Copies will also be
available from the Company Secretary, Derwent London plc, 25 Savile Row,
London, W1S 2ER.
Independent review report to Derwent London plc
Report on the condensed consolidated interim financial statements
Our conclusion
We have reviewed Derwent London plc's condensed consolidated interim financial
statements (the "interim financial statements") in the Interim Results 2025
Announcement of Derwent London plc for the 6 month period ended 30 June 2025
(the "period").
Based on our review, nothing has come to our attention that causes us to
believe that the interim financial statements are not prepared, in all
material respects, in accordance with UK adopted International Accounting
Standard 34, 'Interim Financial Reporting' and the Disclosure Guidance and
Transparency Rules sourcebook of the United Kingdom's Financial Conduct
Authority.
The interim financial statements comprise:
· the Group Condensed Balance Sheet as at 30 June 2025;
· the Group Condensed Income Statement and Group Condensed Statement
of Comprehensive Income for the period then ended;
· the Group Condensed Cash Flow Statement for the period then ended;
· the Group Condensed Statement of Changes in Equity for the period
then ended; and
· the explanatory notes to the interim financial statements.
The interim financial statements included in the Interim Results 2025
Announcement of Derwent London plc have been prepared in accordance with UK
adopted International Accounting Standard 34, 'Interim Financial Reporting'
and the Disclosure Guidance and Transparency Rules sourcebook of the United
Kingdom's Financial Conduct Authority.
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410, 'Review of Interim Financial Information Performed by
the Independent Auditor of the Entity' issued by the Financial Reporting
Council for use in the United Kingdom ("ISRE (UK) 2410"). A review of interim
financial information consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and
other review procedures.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and, consequently, does not
enable us to obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do not express
an audit opinion.
We have read the other information contained in the Interim Results 2025
Announcement and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the interim financial
statements.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed. This conclusion is based on the review
procedures performed in accordance with ISRE (UK) 2410. However, future events
or conditions may cause the group to cease to continue as a going concern.
Responsibilities for the interim financial statements and the review
Our responsibilities and those of the directors
The Interim Results 2025 Announcement, including the interim financial
statements, is the responsibility of, and has been approved by the directors.
The directors are responsible for preparing the Interim Results 2025
Announcement in accordance with the Disclosure Guidance and Transparency Rules
sourcebook of the United Kingdom's Financial Conduct Authority. In preparing
the Interim Results 2025 Announcement, including the interim financial
statements, the directors are responsible for assessing the group's ability to
continue as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless the
directors either intend to liquidate the group or to cease operations, or have
no realistic alternative but to do so.
Our responsibility is to express a conclusion on the interim financial
statements in the Interim Results 2025 Announcement based on our review. Our
conclusion, including our Conclusions relating to going concern, is based on
procedures that are less extensive than audit procedures, as described in the
Basis for conclusion paragraph of this report. This report, including the
conclusion, has been prepared for and only for the company for the purpose of
complying with the Disclosure Guidance and Transparency Rules sourcebook of
the United Kingdom's Financial Conduct Authority and for no other purpose. We
do not, in giving this conclusion, accept or assume responsibility for any
other purpose or to any other person to whom this report is shown or into
whose hands it may come save where expressly agreed by our prior consent in
writing.
PricewaterhouseCoopers LLP
Chartered Accountants
London
11 August 2025
Notes to editors
Derwent London plc
Derwent London plc owns a commercial real estate portfolio predominantly in
central London valued at £5.2 billion as at 30 June 2025, making it the
largest London office-focused real estate investment trust (REIT).
Our experienced team has a long track record of creating value throughout the
property cycle by regenerating our buildings via redevelopment or
refurbishment, effective asset management and capital recycling. We typically
acquire central London properties off-market with low capital values and
modest rents in improving locations, most of which are either in the West End
or City Borders. We capitalise on the unique qualities of each of our
properties - taking a fresh approach to the regeneration of every building
with a focus on anticipating tenant requirements and an emphasis on design.
Reflecting and supporting our long-term success, the business has a strong
balance sheet with modest leverage, a robust income stream and flexible
financing.
We are frequently recognised in industry awards for the quality, design and
innovation of our projects. Landmark buildings in our 5.3 million sq ft
portfolio include 1 Soho Place W1, 80 Charlotte Street W1, Brunel Building W2,
White Collar Factory EC1, Angel Building EC1, 1-2 Stephen Street W1 and Tea
Building E1.
As part of our commitment to lead the industry in mitigating climate change,
Derwent London has committed to becoming a net zero carbon business by 2030,
publishing its pathway to achieving this goal in July 2020. Our science-based
carbon targets validated by the Science Based Targets initiative (SBTi). In
2013 the Company launched a voluntary Community Fund which has to date
supported 180 community projects in central London.
The Company is a public limited company, which is listed on the London Stock
Exchange and incorporated and domiciled in the UK. The address of its
registered office is 25 Savile Row, London, W1S 2ER.
For further information see www.derwentlondon.com
(http://www.derwentlondon.com) or follow us on LinkedIn
Forward-looking statements
This document contains certain forward-looking statements about the future
outlook of Derwent London. By their nature, any statements about future
outlook involve risk and uncertainty because they relate to events and depend
on circumstances that may or may not occur in the future. Actual results,
performance or outcomes may differ materially from any results, performance or
outcomes expressed or implied by such forward-looking statements.
No representation or warranty is given in relation to any forward-looking
statements made by Derwent London, including as to their completeness or
accuracy. Derwent London does not undertake to update any forward-looking
statements whether as a result of new information, future events or otherwise.
Nothing in this announcement should be construed as a profit forecast.
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