Derwent London increases its 2016 final dividend by 25% and will pay a special

DividendMax Ltd.

Derwent London increases its 2016 final dividend by 25% and will pay a special

Financial highlights 

EPRA net asset value per share increased 0.5% to 3,551p from 3,535p at 31 December 2015, 1.3% lower than 3,598p at 30 June 2016

Net rental income increased 5.2% to £145.9m from £138.7m in 2015

EPRA earnings rose 8.9% to £85.7m from £78.7m last year

EPRA earnings per share increased 7.9% to 76.99p per share from 71.34p in 2015

Final dividend increased 25% 

Proposed final dividend per share increased by 25.0% to 38.50p making 52.36p for the full year, an increase of 20.6%

Increase reflects strong recurring earnings growth since 2014 and de-risking of 2017-18 pipeline

Operational performance

Record year of lettings totalling £31.4m, on average 6.3% above December 2015 ERV

Estimated rental values (ERV) on an EPRA basis increased by 5.1% in 2016 (by 1.0% in H2)

Portfolio valued at £5.0bn; underlying fall in value 0.2% in the year, with a decrease of 1.7% in H2

Valuation uplift on developments was 4.7% in the year

Total property return was 2.9% which was ahead of the IPD Central London Offices Quarterly Index of 2.6%

True equivalent yield was 4.83%: a 31bp rise in 2016 of which 25bp was in H2

Investment property disposals totalled £208m on average 3.7% above December 2015 values

Capital expenditure was £213.5m and acquisitions £18m

Good growth potential and a strong start to 2017 and special dividend of 52p per share proposed

Total cash rental reversion was estimated at £134.2m in December 2016, which requires £363m of outstanding capital expenditure, and was 39% contractual or pre-let

New lettings since December 2016 total £11.5m, including the pre-letting to Arup of 41% of the main 80 Charlotte Street W1 development building completing in 2019

Current development programme 44% pre-let by income, up from 8% in December 2015

Leases regeared enabling Expedia to take at least 231,400 sq ft at Angel Building EC1 from 2020 until 2030

Agreements to dispose of two properties in excess of book value raising £327m before costs 

Proposed special dividend of 52p per share

Companies mentioned