Derwent London plc
Results for the year ended 31 December 2012
Confident outlook underpinned by strong performance
Financial highlights
EPRA net asset value per share increased by 11% to 1,886p from 1,701p at 31 December 2011
EPRA profit before tax of £52.5m (2011: £52.3m) despite increase in development activity
EPRA earnings per share of 50.36p (2011: 51.59p)
Increase in EPRA like-for-like net rental income of 8.2%
Final dividend increased by 8.4% to 23.75p per share (2011: 21.90p)
Loan-to-value ratio of 30% (2011: 32%)
Performance
£13.3m of lettings concluded on 340,300 sq ft (31,610m²) at a 7.6% premium to December 2011 ERV
Vacancy rate low at 1.6% (31 December 2011: 1.3%) reflecting strong demand particularly from the TMT sector
Underlying valuation increase of 7.3% in 2012 (2011: 7.6%)
Underlying estimated rental values rose 6.7% (2011: 6.3%)
EPRA net initial yield 4.3% (31 December 2011: 4.4%) and true equivalent yield 5.55% (31 December 2011: 5.61%)
Developments and major refurbishments rose 14.1% in value
Projects
Six major planning consents obtained during the year totalling 655,000 sq ft (60,850m²)
495,000 sq ft (46,000m²) of major projects underway at year end of which 37% pre-let
Further 422,000 sq ft (39,200m²) to start in 2013
2.7 million sq ft (250,000m²) pipeline, two thirds of which has planning consent
Construction of White Collar Factory, City Road EC1 being brought forward on a speculative basis
Unlocked redevelopment opportunity at 55-65 North Wharf Road, Paddington W2 allowing construction of 240,000 sq ft (22,300m²) of offices from 2014
Acquisitions and disposals
Acquisitions totalled £101m
Disposals raised £161m after costs, giving a 4.5% surplus over 31 December 2011 values
Robert Rayne, Chairman, commented:
"Derwent London has delivered another strong set of results in 2012. The Group achieved a double digit percentage increase in net asset value driven by increasing rents in our markets, management activity and progress in our development pipeline.
We are continuing to see new tenants attracted to the space we provide and consider that rents in our markets will continue to rise. This gives us the confidence both to accelerate our development pipeline and increase the dividend for the year by 7.5%."
John Burns, Chief Executive Officer, commented:
"Last year was an excellent one for Derwent London. Our signature mid-market central London office space remains in demand and we expect our rental values to rise between 4% and 6% in 2013.
At Derwent London we look to create tomorrow's space today. We will complete 260,000 sq ft of projects in 2013 and by the year end we intend to have over 650,000 sq ft under construction, including 80 Charlotte Street, our largest regeneration project to date. We believe our prospects are good and look forward to the future with confidence."
