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Derwent London ups interim dividend, agrees to sell The Buckley Building

By Iain Gilbert

Date: Thursday 08 Aug 2019

Derwent London ups interim dividend, agrees to sell The Buckley Building

(Sharecast News) - British property investment and development business Derwent London saw total returns and net rental income increase during the first half of its trading year, leading the group to up its interim dividend payout.
Derwent London reported an EPRA net asset value per share of 3,852p, up 3.7% year-on-year, while new lettings totalled £18.1m, 7.5% above its December estimated rental value.

Net rental income rose 7.1% to £86.3m and total returns grew to 3.3% from the 3.1% recorded a year earlier.

Underlying earnings per share dipped to 51.34p from the 51.77p recorded in the first half of 2018.

On the back of its first-half performance, Derwent London upped its interim dividend 9.9% to 21p.

Elsewhere, the company agreed to sell the freehold of The Buckley Building, EC1 to CBRE Global Investors on Thursday.

Derwent London will offload the 85,100 square foot office building, acquired by the group back in 2007 and completely refurbished in 2013, for £103.0m before costs, 4.8% above its December 2018 book value.

The company said the sale price was achieved thanks to recent active management initiatives which increased income through rent reviews and a lease extension.

Chief executive Paul Williams said: "This disposal takes our total sales so far this year to over £180.0m, proceeds of which will be recycled into our substantial on-site development programme."

As of 0820 BST, Derwent London shares had picked up 1.35% to 2,928.98p.

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