12th Nov 2014 09:02
LONDON (Alliance News) - Derwent London PLC on Wednesday said it was performing well across its business, with its rental income and average sales values increasing in the third quarter.
Derwent said it completed 70,000 square foot in lettings in the third quarter to the end of September, generating GBP4 million per year, 8.9% higher than its estimated rental value at the end of June.
The group said it has completed sales of around GBP69 million in the second half at 12% ahead of the value achieved at the end of June.
The company said it expects 277,500 sq ft of developments to be completed in early 2015, with 66% of this already let, and a further 485,000 sq ft to start in 2015.
The group's vacancy rate increased in the third quarter to 3.9% from 1.4% at the end of June on the back of the completion of new developments, it said.
"We remain confident about our portfolio's prospects for both rental growth and firm property yields during the rest of this year and into 2015. Against this background Derwent London is well positioned with its substantial and flexible development programme," said Derwent Chief Executive Officer John Burns.
Derwent shares were down 0.8% to 2,950.00 pence on Wednesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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