Annual Results 2022

CONTENTS

Presenters

Paul Williams

Damian Wisniewski

Nigel George

Emily Prideaux

Contents

Introduction and overview

01

Results and financial review

07

Valuation and investment

18

Sustainability

25

Leasing and asset management

29

Delivering the right product

35

Developments

41

Summary

51

Appendices

53

Executive committee and senior management

114

Disclaimer

115

Derwent London plc - Annual Results 2022

INTRODUCTION AND OVERVIEW

PAUL WILLIAMS

1

INTRODUCTION AND OUTLOOK

Derwent London operational activity

• 2022: £9.8m lettings, average 13.0% above ERV £29.6m asset mgmt, average 5.3% above ERV

• 2023: £14.7m lettings to date, average 7.7% above ERV

Flight to quality

  • London is busy
  • Central London vacancy elevated (City/secondhand)
    • West End strong with availability constrained
  • Demand leading to earlier pre-lets and more leasing activity

Values impacted but outperforming market

  • Capital values -6.8% (MSCI -10.9%)
  • Yield +38bp to 4.88%
  • Quality buildings outperformed

Confidence returning

• Market interest rates settling

2023 LETTINGS (£14.7m)

Pre-let

Let

• 106,100 sq ft

• 31,100 sq ft

• £11.0m pa

• £2.3m pa

• 15-years (no break)

• 15-years (break at 10)

2023 GUIDANCE

Upward yield

ERV growth pressure easing

0% to +3% Our portfolio more resilient

Derwent London plc - Annual Results 2022

2

OPERATIONAL OVERVIEW

Strategic progress in 2022

  • Investment in acquisitions (£133.0m) and capex (£121.8m)
  • Commitment to development pipeline
    • On site at two major projects
  • £206.4m1 non-core disposals (£25.6m above book value)

Valuations - quality buildings outperformed

  • More resilient valuation performance in higher quality buildings

Long income and debt profile with low leverage

  • We see value in a long portfolio WAULT
    • 'Topped-up'WAULT 7.2 years
  • £577m in cash2 and undrawn debt
    • Capacity for opportunistic acquisitions

1 Excludes trading property disposals 2 Excludes restricted cash

1 Soho Place W1

Derwent London plc - Annual Results 2022

3

Attachments

  • Original Link
  • Original Document
  • Permalink

Disclaimer

Derwent London plc published this content on 28 February 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 28 February 2023 09:34:09 UTC.