Derwent London: 2021 Results

February 24, 2022

Derwent London plc (“Derwent London””the Group”)



Financial Highlights

  • Total return of 5.8%, of -1.8% in 2020
  • EPRA net tangible fixed assets1 3,959p per share, up 3.9% from 3,812p in December 2020
  • Net rental income of £178.2m, up 2.2% from £174.3m
  • EPRA earnings of £122.0m, or 108.8p per share, up 9.7% from 99.2p in 2020
  • IFRS profit before tax of £252.5m vs loss of £83.0m in 2020
  • Annual dividend of 76.50p per share vs 74.45p, up 2.8%
  • £350 million 1.875% 10-year green bond issued in November amid strong investor demand
  • Interest coverage 464%, 20.8% loan to value ratio
  • Undrawn facilities and cash of £608m, compared to £476m in December 2020

Portfolio Highlights

  • Total real estate return of 6.3% versus our benchmark2 5.9%
  • Portfolio valued at £5.7bn, an underlying upside of 3.5% with development valuations up 9.2%
  • Actual equivalent yield of 4.50%, tightening by 24 bps
  • 0.2% increase in desktop ERVs
  • Significant portfolio remodeling activity
  • £417.5m of real estate acquisitions
  • £405.1m property disposals £9.7m above December 2020 book value
  • 708,000 square feet under construction – two major projects completed in H1 2022 and 19-35 Baker Street W1 started in H2 2021
  • £13.7m new lettings at +3.6% vs December 2020 ERV
  • £31.9m of December 2020 ERV-compliant asset management transactions
  • The EPRA vacancy rate fell to 1.6% from 1.8% in December 2020


  • Portfolio 99% EPC 2023 compliant and 61% 2030 compliant, including projects
  • Detailed EPC upgrade costs received


  • Our forecast is that the average ERVs of 2022 on our portfolio evolve from 0% to +3%
  • Average investment returns in our portfolio are expected to remain firm

Paul Williams, Managing Director, commented:

“London is a dynamic, global city that attracts world-class talent. We hear more and more companies from different sectors demanding a modern, adaptable and environmentally friendly space. Our collaborative approach and our distinctively designed product are well positioned in this flight to quality and gives us confidence to move forward with our pipeline.”

  1. Explanations on how the EPRA figures are derived from IFRS are presented in note 25
  2. Quarterly MSCI Central London Offices Index

Webcast and conference call

There will be a live webcast as well as a conference call for investors and analysts at 09:30 GMT today. The audio webcast can be accessed via

To participate in the call, please register on

A recording of the conference call will also be made available following the conclusion of the call on

For more information, please contact:


Paul Williams, Managing Director

Tel: +44 (0)20 7659 3000

Damian Wisniewski, Chief Financial Officer

Robert Duncan, Head of Investor Relations

Brunswick Group

Simon Sporborg

Tel: +44 (0)20 7404 5959

Nina Cood

Emilie Trapnell


Derwent London is an entrepreneurial company, with an open, collaborative and inclusive approach.

Confident in the medium-term outlook, despite some short-term uncertainty, the Group proceeded with the overhaul of the portfolio and the replenishment of the pipeline. We also advanced on-site and future programs while maintaining a revenue focus. Our financial results reflect the progress we have made.

Net property and other income increased to £187.5 million for the year ended 31 December 2021 from £183.0 million in 2020. This was helped by impairment charges and write-offs of tenant receivables of just £0.8m compared to £14.2m in 2020. Gross rental income fell 4.3% to £194.2m as we proceeded to lease buyouts for new programs and disposed of several lower growth, higher yielding properties. EPRA earnings per share rose 9.7% to 108.8p from 99.2p in 2020 and IFRS profit before tax was £252.5m, more than offsetting the £83.0m loss sterling recorded in 2020.

The capital values ​​of our £5.7bn portfolio increased by 3.5% underlying, the main drivers being development surpluses and falling valuation returns. This brought total net assets to £4.4 billion with EPRA net tangible assets (NTA) increasing by 3.9% to 3,959 pence per share from 3,812 pence in December 2020.

Recognizing its importance to our shareholders, we propose to increase the final dividend by 1.05p to 53.5p, in line with our progressive and well-hedged dividend policy. It will be paid on June 1, 2022 to shareholders on the register of members by April 29, 2022. This brings the full year dividend to 76.5p, an increase of 2.8% on the previous year.

We have a strong team and a portfolio of many high-quality buildings that we believe meet the ever-increasing demands of occupiers. We have a pipeline of programs that will deliver a modern, adaptable and sustainable space. All of this is supported by a loose balance sheet with substantial capacity to finance growth.

The Group has a long and consistent track record of value creation and efficient capital allocation throughout real estate cycles. We also have considerable experience in acquiring the right assets in locations with favorable fundamentals. The Group is known for targeting emerging sub-markets by gaining first mover advantage, offering choice space in a market with limited supply.

The plans built by the Group over the long term testify to a strong desire to ensure that each one is an improvement on the previous one and to make the buildings as durable as possible. This can be through design, technology or green credentials. Our investment approach is supported by our in-house property management and asset management teams who focus on building and strengthening close relationships with occupiers. Sustainability has been central to our business for many years, embedded in all elements of the business, from our buildings to our finances.

We maintain close relationships with asset owners, occupiers and local communities. Our experience and long-term collaborative approach has helped us uncover new off-market opportunities such as recent transactions with Lazari Investments and 230 Blackfriars Road SE1. We have also been selected as the preferred bidder for The Moorfields Estate EC1.

The 2021 employee survey again demonstrated a high level of engagement and widespread job satisfaction and, as we come together after the closures of the past two years, our common purpose and culture has been preserved and strengthened. .

I would like to thank all Derwent London staff for their hard work through to 2021. I would also like to congratulate Emily Prideaux on her appointment as Executive Director in March 2021, and Sanjeev Sharma who joined the Board in as non-executive director in October. Simon Fraser retired as a non-executive director in October and the board thanks him for his substantial contribution over nine years. He was replaced as senior independent director by Helen Gordon. In addition, I would like to thank on behalf of the Board of Directors David Silverman who has played a key role in our acquisitions and disposals of investments and who will step down as Chief Executive and leave the Group in April 2022.

The Board is confident that Derwent London has the right strategy and business model to meet the changing demands of occupiers and wider stakeholders and to continue to deliver above-average long-term returns for residents. shareholders.

Marc Breuer


About Troy McMiller

Check Also

White House: Recent Crypto Crash ‘Further Highlights’ Need for Careful Regulation of Digital Asset Space

The White House weighs in on the recent crypto crisis with pro-regulatory comments during a …