Derwent London PLC REIT (GB:DLN)
LSE:DLN
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Derwent London plc REIT
(LSE:DLN)
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Rating:63Neutral
Price Target:
2,014.00 p
▲(12.89% Upside)
Action:Downgraded
Date: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 Location
Concentration in the West End and proximity to Elizabeth line stations underpin structural occupier demand and rental resilience. This positioning supports lower long‑term void risk, stronger re-letting prospects and pricing power versus broader office markets over multiple cycles.
Negative Factors
Higher Financing Costs
Refinancing and higher coupon debt have increased net finance costs, reducing EPRA earnings and limiting cash available for investment or distributions. Elevated interest expense and lower interest capitalisation create a persistent headwind to earnings until rates or structure materially improve.
Read all positive and negative factors
Positive Factors
Negative Factors
Prime Portfolio Location
Concentration in the West End and proximity to Elizabeth line stations underpin structural occupier demand and rental resilience. This positioning supports lower long‑term void risk, stronger re-letting prospects and pricing power versus broader office markets over multiple cycles.
Read all positive factors
Derwent London plc REIT (DLN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.12B
Dividend Yield3.93%
Average Volume (3M)283.47K
Price to Earnings (P/E)13.2
Beta (1Y)0.89
Revenue Growth39.97%
EPS Growth39.03%
CountryUK
Employees201
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)1.43
Shares Outstanding111,742,840
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
£1,932.67Price Target Upside8.33% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)0.96
Revenue Forecast (FY)£197.03M
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: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
Positive
1784.00
Price Trends
1726.95
Positive
1715.38
Positive
1694.52
Positive
Market Momentum
44.84
Negative
70.93
Negative
82.11
Negative
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 1784 is above the 20-day moving average (MA) of 1783.05, above the 50-day MA of 1726.95, and above the 200-day MA of 1694.52, indicating a bullish trend. The MACD of 44.84 indicates Negative momentum. The RSI at 70.93 is Negative, neither overbought nor oversold. The STOCH value of 82.11 is Negative, 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 | £4.30B | 9.29 | 7.73% | 5.85% | 15.13% | 29.40% | |
69 Neutral | £2.67B | 7.25 | 8.78% | 2.58% | 5.42% | 35.88% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | £1.32B | 8.43 | 7.41% | 2.52% | 24.37% | 29.61% | |
63 Neutral | £2.12B | 13.17 | 4.48% | 3.93% | 39.97% | 39.03% | |
56 Neutral | £661.74M | -5.54 | -5.24% | 7.31% | -2.05% | -2319.15% | |
51 Neutral | £234.83M | 41.49 | 1.34% | 2.71% | 4.03% | -79.67% |
* Real Estate Sector Average
GB:DLN
Derwent London plc REIT
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-32.72
-1.69%
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Derwent London plc REIT Corporate Events
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...
Regulatory Filings and Compliance
Derwent London Confirms Total Voting Rights at 112.3 Million Shares
Neutral
Apr 30, 2026
Derwent London plc has confirmed that, as of 30 April 2026, its issued share capital comprises 112,297,122 ordinary shares of 5 pence each, all of which carry voting rights and none of which are held in treasury. This disclosure sets the official ...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Derwent London Publishes 2025 Reports and Sets Date for 2026 AGM
Positive
Apr 14, 2026
Derwent London plc has published its 2025 Report Accounts and 2025 Responsibility Report, making both documents available on its website in standard and XHTML/XBRL-tagged formats to meet regulatory disclosure requirements. The Group has also conf...
Business Operations and StrategyRegulatory Filings and Compliance
Derwent London Admits New Performance Plan Shares to Trading
Neutral
Apr 10, 2026
Derwent London plc has issued 6,193 new ordinary shares of 5p each under its 2014 Performance Share Plan, which have been admitted to trading on the London Stock Exchange. Following this allotment, the company now has a total of 112,297,122 ordina...
Business Operations and Strategy
Derwent London Updates Employee Benefit Trust Shareholdings
Neutral
Apr 7, 2026
Derwent London plc has reported that its Employee Benefit Trust has released 19,101 ordinary shares, including dividend equivalents, at a price of £16.03 per share to satisfy the deferred element of the 2022 annual bonus for employees. The EB...
Regulatory Filings and Compliance
Derwent London Executives Sell Shares After Deferred Bonus Awards Vest
Neutral
Apr 7, 2026
Derwent London plc has disclosed changes in the shareholdings of senior executives following the vesting of awards under the group’s deferred bonus scheme linked to the 2022 annual bonus. On 7 April 2026, Chief Executive Paul Williams, Chief...
Business Operations and Strategy
Derwent London Appoints Barclays as Joint Corporate Broker to Bolster Market Reach
Positive
Apr 2, 2026
Derwent London plc, the largest London office-focused REIT, owns and manages a £5.1 billion portfolio of central London commercial properties, where it applies a strategy of value creation through regeneration, design-led refurbishment and di...
Business Operations and StrategyM&A Transactions
Derwent London Sells Horseferry House as It Accelerates £1bn Disposal Plan
Positive
Apr 1, 2026
Derwent London has agreed to sell Horseferry House in SW1 to an overseas investor for £131.8 million, with completion due in June 2026. The 164,900 sq ft property, acquired for £34 million in 2005 and comprehensively refurbished for Burb...
Regulatory Filings and Compliance
Derwent London Confirms Total Voting Rights and Share Capital
Neutral
Mar 31, 2026
Derwent London plc has confirmed that its issued share capital currently comprises 112,297,122 ordinary shares of 5 pence each, all of which carry voting rights and none of which are held in treasury. As a result, the total number of voting rights...
Regulatory Filings and Compliance
Derwent London Executives Boost Stakes with Coordinated Share Purchases
Positive
Mar 27, 2026
Derwent London has disclosed a series of insider share purchases by senior management and board members, all involving its 5p ordinary shares. On 27 March 2026, chief executive Paul Williams, chief financial officer Damian Wisniewski and directors...
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...
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.