Derwent London reported a net asset value (NAV) of 3,225 pence per share for the fiscal year 2025, equivalent to a 2.4% increase versus the prior period. The group's reported earnings per share were 98.4 pence, and it declared a dividend of 81.5 pence per share.
Leasing momentum during FY25 included new contracts worth a combined £11.3 million, signed at rents that were on average 9.9% ahead of the company's estimated rental value (ERV). In the year to date, Derwent London has added a further £1.5 million of leases and shows £14.4 million of rent under offer; this pipeline includes all office space at the Network scheme, with a further £4.4 million currently in negotiation.
Asset management activity contributed materially to rental growth, with initiatives generating £58.9 million of value and delivering a 6.4% uplift in rents across the portfolio. On the disposals front, the group completed sales totalling £216.1 million in the period, has exchanged contracts on £33 million year to date, and reports approximately £240 million of assets currently under offer.
Development outcomes were highlighted by 25 Baker Street W1, which was fully pre-let and produced an ungeared internal rate of return of 11.3%. The accounting return on that project was reported at 5%. The company reiterated its reported earnings per share of 98.4 pence, noting that figure excludes 3.7 pence of trading profits.
Looking ahead, Derwent London provided forward estimates for the portfolio. It projects estimated rental value growth of between 4% and 7% for fiscal year 2026. The group has set a target of £1 billion of disposals over the next three years and expects EPRA earnings to rise by 25% to 30% by 2030.
Balance-sheet metrics were reported as stable versus the prior period. Net debt to EBITDA stands at 9 times, interest cover is 3.1 times, and the loan-to-value ratio remains at 29% - all unchanged from the preceding reporting period.
Company leadership signalled confidence in the outlook, indicating an expectation of further upward movement in portfolio ERV and EPRA earnings and projecting a total accounting return in the range of 7% to 10% in coming years.
Sector context - The results and outlook are particularly relevant to the commercial real estate and REIT sectors, with implications for investors focused on office leasing, asset management-led rent growth and portfolio recycling through disposals.