London office landlord Derwent London (DLN) ticked all the right boxes last year, and the combination of a £650m valuation uplift, together with a 7.8 per cent rise in net rental income to £138.7m, pushed adjusted net asset value (NAV) ahead by an impressive 21.6 per cent to 3,535p a share.
New lettings of £27.1m were achieved at 10.8 per cent ahead of December 2014 estimated rental values (ERV). For existing lettings, there was also a significant reversionary element of £141m, which is what rental income would be if all rents were charged at the current going rate.
On the development side, additional capital expenditure of £569m will be needed over the next four years to complete current projects, which will have an ERV of £78.9m on completion. Derwent has also worked well to recycle capital, with disposals of £277m outweighing acquisitions of £246m.
Analysts at Peel Hunt are forecasting adjusted NAV of 3,691p a share for the December 2016 year-end.
DERWENT LONDON (DLN) | ||||
---|---|---|---|---|
ORD PRICE: | 2,998p | MARKET VALUE: | £3.33bn | |
TOUCH: | 2,995-2,998p | 12-MONTH HIGH: | 3,891p | LOW: 2,904p |
DIVIDEND YIELD: | 1.4% | TRADING PROPERTIES: | £10.5m | |
DISCOUNT TO NAV: | 15% | |||
INVESTMENT PROP: | £4.83bn | NET DEBT: | 23% |
Year to 31 Dec | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
---|---|---|---|---|
2011 | 1,636 | 233 | 225 | 31.4 |
2012 | 1,824 | 228 | 223 | 33.7 |
2013 | 2,248 | 468 | 446 | 36.5 |
2014 | 2,931 | 754 | 719 | 39.7 |
2015 | 3,528 | 780 | 695 | 43.4 |
% change | +20 | +3 | -3 | +9 |
Ex-div: tba Payment: tba |