26th Feb 2019 09:41
LONDON (Alliance News) - Property investor Derwent London PLC on Tuesday lifted its annual dividend as it reported a rise in in income due to increased new lettings.
In 2018, Derwent's gross property & other income increased 13% to GBP228.0 million from GBP202.6 million, with net income also rising 13% to GBP185.9 million.
Derwent secured GBP26.8 million in new lettings in 2018, 4.1% ahead of 2017. Derwent's estimated rental value increased 1.1% in 2018 with a guided growth of 1% to 2% in 2019.
The company's pretax profit in 2018 decreased 30% to GBP221.6 million from GBP314.8 million on a reduced valuation surplus of GBP83.4 million from GBP147.9 million in 2017.
At the end of 2018, Derwent's portfolio was valued at GBP5.19 billion compared to GBP4.85 billion at the end of 2017. The company saw a 7.7% rise in investment property during the year to GBP5.03 billion.
The company's vacancy rate at the end of 2018 rose to 1.8% compared to the end of 2017 but has halved from the 4.2% reported in June.
Derwent's net assets in 2018 increased 1.7% to GBP4.26 billion from GBP4.19 billion. The company's EPRA NAV per share at December 31 stood at 3,776 pence, up 1.6% compared to 3,716p the year before.
The company proposed a 10% increase in final dividend to 46.75p, taking its full year dividend to 65.85p. This total payout represents a 10% increase on 2017's distribution.
The company said it expects a similar dividend growth rate in 2019.
"Demand for central London offices remains very active and we have been able to outperform the market through our development activities. Our brand of well-designed office space remains attractive to tenants. With its strong financial position, high quality portfolio and pipeline of exciting opportunities, this positions the group for continued success," said Chief Executive John Burns.
Looking ahead, Derwent said making any short-term predictions is "difficult" due to the "many major" political decisions still unresolved. Longer term, however, Derwent said it is confident in London's prospects and status as a global city.
Derwent believes its financial position means it is placed to "take advantage" of any opportunities should London offices "suffer an unexpected downturn".
Shares in Derwent London were up 0.5% Tuesday at 3,280.00 pence each.
Related Shares:
Derwent London