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Derwent London : Annual Results 2022 Presentation
February 28, 2023 at 04:35 am EST
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
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
£206.4m 1 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 cash 2 and undrawn debt
Capacity for opportunistic acquisitions 1 Excludes trading property disposals 2 Excludes restricted cash
Derwent London plc - Annual Results 2022
3
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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 .
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Duration Auto. 2 months 3 months 6 months 9 months 1 year 2 years 5 years 10 years Max.
Period Day Week
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Derwent London plc is a United Kingdom-based real estate investment trust (REIT). The Company is an office specialist property regenerator and investor. It owns and manages an investment portfolio of approximately 5.3 million square feet, of which 99% is located in central London, with a specific focus on the West End and the areas bordering the City of London, with the latter principally in the Tech Belt. Its properties are located in London (West End central, West End borders/other and City borders), with the remainder in Scotland (Provincial). Its portfolio includes 80 Charlotte Street, The Featherstone Building, Soho Place, Brunel Building, 25 Baker Street, White Collar Factory, Network, Tea Building, The White Chapel Building, Greencoat and Gordon House, Middlesex House, 25 Savile Row, Rathbone Studios, Morelands, Angel Building, Horseferry House and others. Its subsidiaries include Asta Commercial Limited, BBR (Commercial) Limited, Caledonian Properties Limited and others.
More about the company
Last Close Price
22.22
GBP
Average target price
23.73
GBP
Spread / Average Target
+6.81%
Consensus
1st Jan change
Capi.
-6.02% 3.13B -4.55% 47.38B -6.64% 20.94B +0.81% 13.64B +18.14% 11.96B -5.83% 9.55B -1.11% 8.55B -14.85% 8.38B +2.43% 7.82B -17.44% 5.77B
Other Commercial REITs
+951% of historical performance
More than 20 years at your side
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