Derwent London (DLN) gave further evidence - if any were needed - of the vibrant property market in London, with another impressive performance last year. Adjusted net asset value grew by over 28 per cent to 2,908p a share, while net rental income rose by nearly 6 per cent to £128.7m.
The buoyant nature of the commercial property market was reflected in the £667m valuation uplift on the group's property portfolio. This was almost double the previous year's uplift. This meant that despite an increase in net debt, the loan-to-value ratio fell from 28 per cent to 24 per cent, while the value of the portfolio increased to £4.2bn.
With demand for prime space showing no sign of abating, Derwent pushed up year-end contracted rents by 4.5 per cent to £131.7m , while estimated rental value - the amount of rent it would generate if all leases were marked to market rates - grew by 9.4 per cent to £215.6m.
Analysts at Oriel Securities are forecasting net asset value by the year-end of 3,291p a share.
