11th Aug 2020 09:34
(Alliance News) - Derwent London PLC increased its interim dividend, despite reporting a sharp swing to a loss on a revaluation deficit, while also Tuesday announcing the planned departure of its co-founder.
The London-focused real estate investment trust posted a GBP14.0 million pretax loss for the six months ended June 30, swinging from a GBP130.0 million profit the year before.
This was in large part due to its swing to a GBP68.3 million revaluation deficit from a GBP75.0 million surplus in the prior year.
Gross property and other income was slightly higher at GBP119.3 million from GBP110.7 million.
EPRA net tangible assets per share totalled 3,900 pence as at June 30, down 1.4% from 3,957p on December 31, as a result of a negative revaluation movement of 59p per share.
Nonetheless, Derwent increased its interim dividend by 4.8% to 22.0p per share from 21.0p year-on-year.
Chief Executive Paul Williams said: "Recent events have highlighted the importance of offices for enhancing collaboration, social interaction and well-being to build business culture and attract and develop talent. Derwent London's design-led and adaptable space will support our occupiers returning to their offices, an essential part of getting London back to full strength."
Williams added: "We expect rising unemployment and business closures will see the London office vacancy rate rise which, in turn, may put pressure on office rents. However, we believe our better-quality lower rise space, located in West End and Tech Belt mixed use locations that attract a broader spread of occupiers, will be relatively resilient."
Separately, Derwent announced the departure of Simon Silver, an executive director and co-founder of the company. His retirement is effective February 2021, but he will support Derwent as a consultant until the end of 2022.
Shares in Derwent were down 0.7% at 2,942.00p in London on Tuesday morning.
By Anna Farley; [email protected]
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