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Derwent London plc REIT
(LSE:DLN)
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Rating:69Neutral
Price Target:
2,249.00 p
▲(10.35% Upside)
Action:Downgraded
Date:08/07/26
The score is driven primarily by a recovering but historically volatile financial profile, supported by a favorable technical setup (price above key moving averages) and reasonable valuation (mid-teens P/E with ~3.9% yield). The latest earnings call adds a modest positive tilt due to upgraded guidance and strong leasing/development execution, tempered by NTA/valuation headwinds and flat-to-slightly-lower near-term earnings expectations.
Positive Factors
Strong leasing and low vacancy
Sustained low vacancy and elevated named requirements support recurring rental income and pricing power across central London offices. This underpins durable cash generation, reduces downside rent void risk, and strengthens ability to achieve rental growth over the medium term.
Negative Factors
Old Street Quarter provision
A material provision directly reduced EPRA NTA and signals project execution or valuation risk on a specific acquisition. This creates lasting uncertainty over realized returns for that asset, may constrain distributable reserves or force capital recycling choices that affect long‑term returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong leasing and low vacancy
Sustained low vacancy and elevated named requirements support recurring rental income and pricing power across central London offices. This underpins durable cash generation, reduces downside rent void risk, and strengthens ability to achieve rental growth over the medium term.
Read all positive factors
Derwent London plc REIT (DLN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.30B
Dividend Yield3.94%
Average Volume (3M)283.47K
Price to Earnings (P/E)49.2
Beta (1Y)0.91
Revenue Growth45.36%
EPS Growth-79.84%
CountryUK
Employees206
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.42
Shares Outstanding110,460,100
10 Day Avg. Volume223,379
30 Day Avg. Volume283,473
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)0.54
Price to Sales (P/S)5.02
P/FCF Ratio8.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£1,937.88Price Target Upside-4.91% Downside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.96
Revenue Forecast (FY)£207.52M
Derwent London plc REIT Business Overview & Revenue Model
Company Description
Derwent London Plc stands as the preeminent London-focused Real Estate Investment Trust (REIT), managing a substantial commercial property portfolio primarily within central London. Comprising 83 buildings, its holdings, including joint ventures, ...
How the Company Makes Money
Derwent London primarily makes money from (1) recurring rental income from leasing space in its investment property portfolio and (2) property-related gains generated through active asset management, development and refurbishment. Rental income is...
Derwent London plc REIT Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call conveys a generally positive operational and strategic position: strong leasing activity, proven development returns (Network and 25 Baker Street), a disciplined capital-allocation program (disposals and buyback), a solid liquidity position and upgraded near-term earnings confidence. However, material valuation headwinds — notably the Old Street Quarter provision and outward yield shifts linked to geopolitical uncertainty — have weighed on reported NTA and produced near-term earnings and valuation sensitivity. Overall the company appears to be executing its strategy well and is positioned to benefit from continued rental growth, while some transitional and market-driven valuation/interest-rate risks remain.Positive Updates
Strong Leasing and Asset Management
Secured over GBP 30 million of leasing and asset management transactions year-to-date; new leases signed more than 5% above ERV; GBP 22 million of new income transacted YTD and a further GBP 5.3 million under offer, positioning the year to be one of the highest for new income on record.
Negative Updates
EPRA NTA and Reported Accounting Return Pressure
EPRA NTA at 30 June was 31.57p per share, a 2.1% reduction driven by an overall revaluation deficit and a sizeable provision against Old Street Quarter; reported total accounting return was negative at -0.4% after accounting for buyback, outward yield impact and the Old Street provision (underlying business return shown as +3.7% before those items).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Leasing and Asset Management
Secured over GBP 30 million of leasing and asset management transactions year-to-date; new leases signed more than 5% above ERV; GBP 22 million of new income transacted YTD and a further GBP 5.3 million under offer, positioning the year to be one of the highest for new income on record.
Read all positive updates
Company Guidance
The management reiterated a constructive outlook while tightening and updating guidance: EPRA earnings in 2026 are now expected to be between flat and down up to 3% versus 2025 (a 2–3% upgrade versus earlier guidance) with EPRA H1 earnings at GBP 54.6m (48.7p), and the business remains on track for 25–30% growth in EPRA earnings by 2030; ERV guidance for 2026 is reiterated at +4% to +7% (H1 ERV growth 2.6%), portfolio returns are expected to be c.7–10% p.a. over the medium term, and development returns remain strong (Network ungeared IRR ~11%, 50 Baker Street ungeared IRR >12%, major projects combined IRR c.12%, profit on cost c.18%, reverse development yield ~7%, developments value +10.3% H1). Balance sheet and capital allocation guidance: completed/contracted disposals of c.£280m (within ~3% of book) toward targets of £400m in 2026 and £1bn over 3 years, a £50m share buyback (c.£34m completed to date) to finish shortly, cash and undrawn facilities c.£481m (pro forma £581m), EPRA NTA £31.57/share (impacted by a £45.8m provision on Old Street Quarter and a revaluation deficit of 18p/share), EPRA vacancy ~4.4% (3.5% ex one asset), central London vacancy <7% (West End 5%, Grade A 1.2%), demand ~just under 12m sq ft, and a weighted average interest rate of 3.9% in H1 (expected ~3.8% in H2).Derwent London plc REIT Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 400.90M | 388.70M | 271.70M | 267.80M | 249.00M | 240.30M |
| Gross Profit | 198.40M | 199.90M | 192.70M | 195.30M | 192.50M | 188.00M |
| EBITDA | 102.70M | 212.80M | 152.50M | -438.00M | -242.40M | 277.10M |
| Net Income | 48.00M | 161.10M | 115.90M | -476.40M | -280.50M | 252.30M |
Balance Sheet | ||||||
| Total Assets | 5.19B | 5.31B | 5.21B | 5.03B | 5.51B | 5.91B |
| Cash, Cash Equivalents and Short-Term Investments | 80.80M | 131.70M | 71.40M | 73.00M | 76.60M | 105.50M |
| Total Debt | 1.46B | 1.57B | 1.50B | 1.37B | 1.28B | 1.32B |
| Total Liabilities | 1.68B | 1.70B | 1.67B | 1.52B | 1.43B | 1.47B |
| Stockholders Equity | 3.52B | 3.62B | 3.54B | 3.51B | 4.08B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | 215.70M | 218.00M | -76.90M | 96.30M | 109.40M | 127.30M |
| Operating Cash Flow | 203.60M | 228.00M | 64.60M | 97.00M | 111.40M | 128.90M |
| Investing Cash Flow | 72.10M | -96.70M | -101.90M | -98.00M | -51.70M | -240.00M |
| Financing Cash Flow | -256.50M | -71.00M | 35.70M | -2.60M | -88.60M | 128.10M |
Derwent London plc REIT Technical Analysis
Positive
2038.00
Price Trends
1967.52
Positive
1813.65
Positive
1763.15
Positive
Market Momentum
38.46
Positive
56.90
Neutral
36.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DLN, the sentiment is Positive. The current price of 2038 is below the 20-day moving average (MA) of 2069.80, above the 50-day MA of 1967.52, and above the 200-day MA of 1763.15, indicating a bullish trend. The MACD of 38.46 indicates Positive momentum. The RSI at 56.90 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DLN.
Derwent London plc REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £4.50B | 9.47 | 7.73% | 5.27% | 15.13% | 29.40% | |
71 Outperform | £2.85B | 6.90 | 9.48% | 2.81% | 9.10% | 20.49% | |
69 Neutral | £2.30B | 49.24 | 1.35% | 4.00% | 45.36% | -79.84% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | £1.43B | 9.05 | 7.41% | 2.38% | 24.37% | 29.61% | |
58 Neutral | £695.73M | -5.76 | -8.83% | 7.47% | -2.05% | -2319.50% | |
51 Neutral | £237.56M | 44.49 | 1.34% | 6.51% | 4.03% | -79.67% |
* Real Estate Sector Average
GB:DLN
Derwent London plc REIT
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Derwent London plc REIT Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Derwent London boosts guidance as disposals, developments and buyback drive returns
Positive
Aug 6, 2026
Derwent London reported solid operational momentum in the first half of 2026, despite modest pressure on valuations and earnings. Gross and net rental income declined slightly, EPRA EPS fell 6.7 per cent, and EPRA NTA per share slipped 2.1 per cen...
Stock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback as Share Count Falls
Positive
Aug 3, 2026
Derwent London has continued executing its £50 million share buyback programme, repurchasing 167,808 ordinary shares for cancellation between 27 and 31 July 2026 at an average price of 2,088 pence as part of the second £25 million tranch...
Regulatory Filings and Compliance
Derwent London Confirms Current Voting Rights and Share Capital
Neutral
Jul 31, 2026
Derwent London plc has confirmed that its issued share capital currently comprises 110,625,638 ordinary shares of 5 pence each, all of which carry voting rights and none of which are held in treasury. This disclosure clarifies the total number of ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London tightens free float with latest tranche of £50m share buyback
Positive
Jul 27, 2026
Derwent London plc has continued executing its £50 million share buyback, purchasing 170,209 ordinary shares for cancellation between 20 and 24 July 2026 at an average price of 2,039 pence as part of the second £25 million tranche. These...
Business Operations and StrategyStock Buyback
Derwent London Completes First £25m Buyback Tranche and Launches Second Phase
Positive
Jul 20, 2026
Derwent London has completed the first £25 million tranche of its £50 million share buyback programme, repurchasing and cancelling 1,333,467 ordinary shares at an average price of 1,875 pence. In the most recent week, the group bought a ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Reduces Share Count With Ongoing £50m Buyback
Positive
Jul 13, 2026
Derwent London has continued executing its £50 million share buyback programme, repurchasing 138,652 ordinary shares for cancellation between 6 and 10 July at an average price of 1,986 pence as part of the first £25 million tranche. The ...
Business Operations and StrategyPrivate Placements and Financing
Derwent London Secures £100m Revolving Credit Facility with New Lender
Positive
Jul 13, 2026
Derwent London plc, the largest London office-focused REIT, owns and manages a £5.1 billion commercial property portfolio concentrated in central London, particularly the West End and City Borders. The Group emphasises design-led regeneration...
Stock BuybackRegulatory Filings and Compliance
Derwent London Reduces Share Count as Buyback Passes 1.08m Shares
Positive
Jul 6, 2026
Derwent London has continued execution of its £50 million share buyback programme, repurchasing 174,941 ordinary shares for cancellation between 29 June and 3 July at an average price of 1,946 pence. The transactions, carried out across the L...
Business Operations and StrategyM&A Transactions
Derwent London Advances £400m Disposal Plan with Central London Asset Sales
Positive
Jul 1, 2026
Derwent London has completed the disposals of Horseferry House in SW1 and 80-85 Tottenham Court Road in W1, receiving net proceeds of £160 million as part of its ongoing capital recycling strategy. Horseferry House was sold to an overseas inv...
Regulatory Filings and Compliance
Derwent London Confirms Current Voting Share Capital
Neutral
Jun 30, 2026
Derwent London plc has confirmed that its issued share capital currently comprises 111,307,919 ordinary shares of 5 pence each, all carrying voting rights. The group holds no shares in treasury, meaning the full issued share capital equals the tot...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback, Cuts Share Count to 111.4m
Positive
Jun 29, 2026
Derwent London has continued executing its £50 million share buyback programme, repurchasing 191,994 ordinary shares for cancellation between 22 and 26 June 2026 at an average price of 1,909 pence. The purchases, carried out via multiple trad...
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Derwent London advances £50m buyback, cuts share count to 111.6m
Positive
Jun 22, 2026
Derwent London plc has continued to execute its £50 million share buyback programme, repurchasing 164,490 ordinary shares for cancellation between 15 and 19 June 2026 at an average price of 1,900 pence. These purchases, made across the London...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Cuts Share Count Further with Ongoing £50m Buyback
Positive
Jun 15, 2026
Derwent London has continued its previously announced £50 million share buyback programme, repurchasing 138,393 ordinary shares for cancellation between 8 and 12 June 2026 at an average price of 1,838 pence. The transactions were executed acr...
Business Operations and StrategyExecutive/Board Changes
Derwent London Names Former Assura Boss Jonathan Murphy as New Chief Executive
Positive
Jun 11, 2026
Derwent London has appointed Jonathan Murphy as its next chief executive and executive director, effective 1 September 2026, succeeding Paul Williams, who will retire following a transition period ending January 2027. Murphy, the former CEO and ex...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Share Buyback, Cuts Share Count
Positive
Jun 8, 2026
Derwent London plc has continued executing its £50 million share buyback programme, purchasing 208,157 ordinary shares for cancellation between 1 and 5 June 2026 at an average price of 1,773 pence as part of the first £25 million tranche...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback, Cuts Share Count Again
Positive
Jun 1, 2026
Derwent London has continued executing its £50 million share buyback programme, repurchasing 80,561 ordinary shares for cancellation during the week of 25–29 May 2026 as part of the first £25 million tranche. The transactions, carr...
Regulatory Filings and Compliance
Derwent London Confirms Current Voting Share Capital and Rights
Neutral
May 29, 2026
Derwent London plc has reported that its issued share capital currently comprises 112,089,392 ordinary shares of 5 pence each, all of which carry voting rights and none of which are held in treasury. This establishes the total number of voting rig...
Stock BuybackRegulatory Filings and Compliance
Derwent London Cuts Share Count as Buyback Programme Advances
Positive
May 26, 2026
Derwent London plc has continued executing its £50 million share buyback programme, purchasing 127,169 ordinary shares for cancellation between 18 and 22 May 2026 as part of the first £25 million tranche. The trades, conducted via UBS AG...
Business Operations and StrategyExecutive/Board Changes
Derwent London Grants Nil-Cost Share Awards to Senior Executives
Neutral
May 21, 2026
Derwent London has granted new share-based awards to Chief Financial Officer Damian Wisniewski and Director Emily Prideaux under its 2023 Performance Share Plan. Each executive received nil-cost options over a total of 58,222 ordinary shares, spli...
Executive/Board Changes
Derwent London Director Helen Gordon to Take Senior Role at Big Yellow Group
Positive
May 19, 2026
Derwent London has announced that Helen Gordon, its Senior Independent Non-Executive Director, will take on an additional role as Senior Independent Non-Executive Director at Big Yellow Group PLC from 1 June 2027. The cross-board appointment under...
Business Operations and StrategyStock Buyback
Derwent London Launches £50m Share Buyback to Cut Share Capital
Positive
May 18, 2026
Derwent London plc has launched a non-discretionary share buyback programme of up to £50 million to return surplus capital to shareholders and reduce its issued share capital. The buyback, conducted in two £25 million tranches by UBS and...
Regulatory Filings and ComplianceShareholder Meetings
Derwent London Secures Shareholder Backing as All AGM Resolutions Pass
Positive
May 15, 2026
Derwent London plc reported that all resolutions at its 2026 Annual General Meeting, held in London on 15 May, were duly passed by shareholders. The company will publish a detailed summary of proxy voting on its website and has submitted the non&#...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Derwent London boosts leasing, launches £50m buyback amid major redevelopment push
Positive
May 12, 2026
Derwent London reported a robust start to the year, with £25.3m of leasing signed and a further £6.7m under offer, including the full pre-letting of its Network W1 offices to Databricks at rents ahead of previous estimates. The EPRA vaca...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.