Derwent London (DLN)

Sector:

Property Investment Trusts

Index:

FTSE 250

2,190.00p
   
  • Change Today:
    -34.00p
  • 52 Week High: 2,508.00
  • 52 Week Low: 1,845.00
  • Currency: UK Pounds
  • Shares Issued: 112.29m
  • Volume: 267,833
  • Market Cap: £2,459.17m
  • RiskGrade: 145

Jefferies cuts Reit ratings as office vacancies mount

By Abigail Townsend

Date: Wednesday 27 Sep 2023

LONDON (ShareCast) - (Sharecast News) - Jefferies has downgraded a number of real estate investment trusts, including British Land, on the back of waning demand for office space.

The bank said London vacancies were now at a 30-year high, with the West End at 7%, the City at 10% and Canary Wharf at more than 20%. The tipping point for a rental recession is historically 8%, Jefferies noted.

It continued: "Retail was technology's first casualty and we think offices are next. Utilisation has shrunk and landlords are losing pricing power as tenants offload surplus space.

"London vacancies are at a 30-year high and above the tipping point at which rents fall, except for scarce green-ium rented towers.

"We forecast West End rents -5% and City -15%, with cap rates raised/lower values on liquidity risk."

It cut its ratings on British Land and Land Securities to 'underperform' from 'hold', while Great Portland Estates and Derwent London were both reduced to 'hold' from 'buy'.

Jefferies said: "We estimate a 20% contraction in London office utilisation on working from home and hybrid working with reoccupation focused on core green headquarters buildings and SMEs in the suburbs.

"Flex, co-working and serviced offices operate around 9% of London space and have absorbed vacancies and extended this rent cycle."

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Derwent London Market Data

Currency UK Pounds
Share Price 2,190.00p
Change Today -34.00p
% Change -1.53 %
52 Week High 2,508.00
52 Week Low 1,845.00
Volume 267,833
Shares Issued 112.29m
Market Cap £2,459.17m
RiskGrade 145

Derwent London Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
14.23% below the market average14.23% below the market average14.23% below the market average14.23% below the market average14.23% below the market average
52% below the sector average52% below the sector average52% below the sector average52% below the sector average52% below the sector average
Price Trend
47.39% above the market average47.39% above the market average47.39% above the market average47.39% above the market average47.39% above the market average
53.33% above the sector average53.33% above the sector average53.33% above the sector average53.33% above the sector average53.33% above the sector average
Income
5.76% above the market average5.76% above the market average5.76% above the market average5.76% above the market average5.76% above the market average
66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average66.67% below the sector average
Growth
50.23% below the market average50.23% below the market average50.23% below the market average50.23% below the market average50.23% below the market average
58.62% below the sector average58.62% below the sector average58.62% below the sector average58.62% below the sector average58.62% below the sector average

What The Brokers Say

Strong Buy 6
Buy 5
Neutral 6
Sell 1
Strong Sell 1
Total 19
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Derwent London Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-24 25-Apr-24
Paid 11-Oct-24 31-May-24
Amount 25.00p 55.00p

Trades for 31-Oct-2024

Time Volume / Share Price
16:40 2,075 @ 2,184.32p
16:40 9,833 @ 2,184.32p
16:40 488 @ 2,184.32p
16:40 361 @ 2,184.32p
16:40 777 @ 2,184.32p

Derwent London Key Personnel

CEO Paul M. Williams
CFO Damian Wisniewski

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