Derwent London PLC REIT (GB:DLN)
LSE:DLN
Top Page
Derwent London plc REIT
(LSE:DLN)
Select Model
Select Model
Rating:63Neutral
Price Target:
1,634.00 p
▲(6.52% Upside)
Action:DowngradedDate:03/04/26
The score is led by recovering financial performance and a generally positive, returns-focused outlook from management (upgraded ERV guidance, leasing momentum, and capital recycling), supported by reasonable valuation and yield. These positives are tempered by weak technicals (bearish trend and negative momentum) and near-term earnings pressure from higher financing costs and elevated development CapEx.
Positive Factors
Prime portfolio & transport access
Concentration in West End submarkets and close proximity to Elizabeth line stations supports durable occupier demand and pricing power. This positioning reduces structural vacancy risk, speeds re-lettings and underpins long-term rental income stability and asset resilience across cycles.
Negative Factors
Higher financing costs
Refinancing that increased the weighted average cost of debt and issued higher‑coupon bonds raises recurring finance costs materially. This compresses net income and free cash flow available for dividends and reinvestment, lowering margin headroom and increasing sensitivity to interest-rate moves.
Read all positive and negative factors
Positive Factors
Negative Factors
Prime portfolio & transport access
Concentration in West End submarkets and close proximity to Elizabeth line stations supports durable occupier demand and pricing power. This positioning reduces structural vacancy risk, speeds re-lettings and underpins long-term rental income stability and asset resilience across cycles.
Read all positive factors
Derwent London plc REIT (DLN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£1.72B
Dividend Yield3.93%
Average Volume (3M)283.47K
Price to Earnings (P/E)12.1
Beta (1Y)0.81
Revenue Growth2.30%
EPS GrowthN/A
CountryUK
Employees201
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.45
Shares Outstanding112,290,930
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
£1,992.29Price Target Upside29.88% Upside
Rating ConsensusHold
Number of Analyst Covering7
EPS Forecast (FY)0.97
Revenue Forecast (FY)£208.48M
Derwent London plc REIT Business Overview & Revenue Model
Company Description
Derwent London plc owns 83 buildings in a commercial real estate portfolio predominantly in central London valued at £5.4 billion (including joint ventures) as at 30 June 2020, making it the largest London-focused real estate investment trust (REI...
How the Company Makes Money
Derwent London makes money primarily from rental income generated by leasing space in its London commercial property portfolio to business tenants. Revenue is driven by contracted base rents under lease agreements, with cash flow influenced by occ...
Derwent London plc REIT Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive strategic and operational picture: strong leasing and asset-management performance, an upgraded ERV outlook (+4% to +7% for 2026), a disciplined plan to recycle up to GBP 1bn of capital, healthy liquidity and a clear development pipeline with attractive IRRs (e.g., Baker Street 11.3%). However, near-term headwinds include higher finance costs after refinancing, a modest rise in vacancy, heavy near-term CapEx and a forecasted 3%–5% dip in 2026 EPRA earnings. Management nonetheless expects earnings growth from 2027 and substantial uplift by 2030, and the balance sheet is being managed conservatively while options (including buybacks) remain under review.Positive Updates
Strategic portfolio positioning
High-quality portfolio with 75% located in the West End and 81% within a 10-minute walk of an Elizabeth line station, targeting strong submarkets and occupier demand.
Negative Updates
Higher financing costs and impact on EPRA earnings
Weighted average interest rate increased to ~3.8% (from 3.3%) after refinancing; conversion of GBP 175m convertibles to 7-year bonds at 5.25% raised the weighted average rate by ~50 bps. Net finance costs rose in H2 and EPRA earnings fell to 98.4p per share (adjusted EPS 102.1p).
Read all updates
Q4-2025 Updates
Positive
Negative
Strategic portfolio positioning
High-quality portfolio with 75% located in the West End and 81% within a 10-minute walk of an Elizabeth line station, targeting strong submarkets and occupier demand.
Read all positive updates
Company Guidance
Derwent gave clear, returns‑focused guidance: 2026 ERVs are upgraded to +4% to +7% and 2026 EPRA earnings are guided at c.42–44p in H1 and 52p in H2 (overall ~3–5% below 2025 but H2 ~10% ahead of H2’25), with c.GBP18m more rental income from 25 Baker Street and Network; reversionary potential is GBP70.9m (pure reversion GBP15.9m). The group plans to recycle up to GBP1bn over the next 3 years (historic run‑rate ~GBP200m p.a.; GBP216m sold in 2025, ~GBP140–145m exchanged so far in 2026 with further c.GBP135–140m under offer and c.GBP100m in discussions), which could yield ~GBP250m of excess capital, while targeting net debt/EBITDA below 9.5x (currently c.9x and expected to fall), maintaining a strong balance sheet (cash & undrawn facilities GBP627m, weighted average debt term 4.2 years, 2025 average interest c.3.8%), and redeploying proceeds into selective developments (CapEx 2025: GBP182m; 2026 est: ~GBP142m), projects delivering attractive returns (25 Baker St ungeared IRR 11.3%, Network 8–9%, many schemes ≥10% IRR), record asset‑management income c.GBP59m in 2025, leasing momentum (GBP11.3m new leases in 2025 at ~10% above ERV; start of 2026: GBP1.5m completed, GBP14.4m under offer, GBP4.4m in negotiation), admin costs down GBP2.4m in 2025 with a further ~GBP2m saving targeted in 2026, and a continued dividend track record (18th consecutive year up, +1.2% this year).Derwent London plc REIT Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
60
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 388.70M | 271.70M | 267.80M | 249.00M | 240.30M |
| Gross Profit | 199.90M | 192.70M | 195.30M | 192.50M | 188.00M |
| EBITDA | 212.80M | 152.50M | -438.00M | -242.40M | 277.10M |
| Net Income | 161.10M | 115.90M | -476.40M | -280.50M | 252.30M |
Balance Sheet | |||||
| Total Assets | 5.31B | 5.21B | 5.03B | 5.51B | 5.91B |
| Cash, Cash Equivalents and Short-Term Investments | 131.70M | 71.40M | 73.00M | 76.60M | 105.50M |
| Total Debt | 1.57B | 1.50B | 1.37B | 1.28B | 1.32B |
| Total Liabilities | 1.70B | 1.67B | 1.52B | 1.43B | 1.47B |
| Stockholders Equity | 3.62B | 3.54B | 3.51B | 4.08B | 4.44B |
Cash Flow | |||||
| Free Cash Flow | 218.00M | -76.90M | 96.30M | 109.40M | 127.30M |
| Operating Cash Flow | 228.00M | 64.60M | 97.00M | 111.40M | 128.90M |
| Investing Cash Flow | -96.70M | -101.90M | -98.00M | -51.70M | -240.00M |
| Financing Cash Flow | -71.00M | 35.70M | -2.60M | -88.60M | 128.10M |
Derwent London plc REIT Technical Analysis
Negative
1534.00
Price Trends
1798.56
Negative
1756.02
Negative
1787.13
Negative
Market Momentum
-66.12
Positive
26.93
Positive
13.01
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DLN, the sentiment is Negative. The current price of 1534 is below the 20-day moving average (MA) of 1689.70, below the 50-day MA of 1798.56, and below the 200-day MA of 1787.13, indicating a bearish trend. The MACD of -66.12 indicates Positive momentum. The RSI at 26.93 is Positive, neither overbought nor oversold. The STOCH value of 13.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | £3.56B | 3.98 | 7.75% | 5.85% | -20.83% | ― | |
69 Neutral | £2.52B | 3.50 | 8.78% | 2.58% | -0.04% | 655.16% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | £1.15B | 5.45 | 7.18% | 2.52% | 12.73% | ― | |
63 Neutral | £1.72B | 12.12 | 4.48% | 3.93% | 2.30% | ― | |
57 Neutral | £670.01M | -2.68 | -5.24% | 7.31% | -1.67% | -120.18% | |
50 Neutral | £218.47M | 35.14 | 5.91% | 2.71% | -14.09% | ― |
* Real Estate Sector Average
GB:DLN
Derwent London plc REIT
1,534.00
-218.79
-12.48%
GB:BLND
British Land Company plc
355.60
10.43
3.02%
GB:SHC
Shaftesbury Capital
129.10
6.89
5.64%
GB:GPE
Great Portland Estates plc R.E.I.T.
283.50
-11.83
-4.01%
GB:HLCL
Helical
178.00
-15.94
-8.22%
GB:WKP
Workspace Group plc R.E.I.T.
348.50
-56.65
-13.98%
Derwent London plc REIT Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Derwent London Grants Deferred Share Awards to Senior Executives
Positive
Mar 24, 2026
Derwent London has granted deferred share-based awards to its chief executive, chief financial officer and two other directors under its annual bonus plan, linked to the 2025 bonus round. Awards over 3,944 shares for the CEO and 3,042 shares for e...
Regulatory Filings and Compliance
Derwent London Directors Sell Part of Vested Share Awards to Cover Tax
Neutral
Mar 20, 2026
Derwent London has disclosed changes in the shareholdings of its senior leadership following the vesting of awards under its 2014 Performance Share Plan. On 16 March 2026, Chief Executive Paul Williams, Chief Financial Officer Damian Wisniewski an...
Business Operations and StrategyPrivate Placements and Financing
Derwent London Redeems £175m 6.5% Secured Bonds at Maturity
Positive
Mar 16, 2026
Derwent London plc has redeemed in full its £175 million 6.5% secured bonds, originally issued in 2001 by its wholly owned subsidiary London Merchant Securities Limited, upon their maturity on 16 March 2026. The company funded the redemption ...
Business Operations and StrategyFinancial Disclosures
Derwent London Fully Pre-Lets Network W1 to Databricks
Positive
Mar 16, 2026
Derwent London plc, the largest London office-focused REIT, owns and manages a £5.1 billion central London commercial portfolio, concentrating on design-led office regeneration in the West End and City Borders. The company combines value-add ...
Regulatory Filings and Compliance
Derwent London Confirms Total Voting Rights at 112.3 Million Shares
Neutral
Feb 27, 2026
Derwent London plc has reported that its issued share capital currently comprises 112,290,929 ordinary shares of 5 pence each, all of which carry voting rights and none of which are held in treasury. This disclosure sets the total number of voting...
Business Operations and StrategyM&A Transactions
Derwent London Sells Fitzrovia Office for £110.5m to Fund Higher-Return Projects
Positive
Feb 26, 2026
Derwent London has agreed to sell its Fitzrovia office asset at 90 Whitfield Street W1 to Lone Star Real Estate for £110.5 million, implying a capital value of about £1,100 per sq ft and a 5.0% net initial yield, with completion expected...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsFinancial Disclosures
Derwent London Lifts Rental Growth Outlook as Disposals and Lettings Gain Pace
Positive
Feb 26, 2026
Derwent London reported improving momentum in 2025, with gross rental income edging up to £218.3m, a 1.7% uplift in capital values and a higher total accounting return of 5.0%, while EPRA NTA per share rose 2.4% and the portfolio delivered 4....
Business Operations and StrategyM&A Transactions
Derwent London Sells Tottenham Court Road Asset Above Book Value to Fund New Projects
Positive
Feb 6, 2026
Derwent London has agreed to sell its freehold property at 80-85 Tottenham Court Road W1 for £32.6 million, a price above its June 2025 book value and equivalent to £755 per sq ft, with completion expected in June 2026. The 43,300 sq ft ...
Regulatory Filings and Compliance
Derwent London Confirms Total Voting Rights at 112.3 Million Shares
Neutral
Jan 30, 2026
Derwent London plc has confirmed that, as of 30 January 2026, its issued share capital comprises 112,290,929 ordinary shares of 5 pence each, all of which carry voting rights, with no shares held in treasury. This disclosure sets the official tota...
Business Operations and StrategyExecutive/Board Changes
Derwent London Chief Executive Paul Williams to Retire After 38 Years with the Group
Neutral
Jan 22, 2026
Derwent London has announced that long-serving executive Paul Williams intends to retire as chief executive and step down from the board once a successor is appointed, bringing to a close a 38-year career at the group that culminated in his leader...
Regulatory Filings and Compliance
Derwent London Confirms Total Voting Rights at Year-End
Neutral
Dec 31, 2025
Derwent London plc has confirmed that, as of 31 December 2025, its issued share capital comprises 112,290,929 ordinary shares of 5 pence each, all of which carry voting rights, with no shares held in treasury. This disclosure sets the official tot...
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.