26th Feb 2015 08:51
LONDON (Alliance News) - Derwent London PLC Thursday reported higher profit, net asset value and total returns for 2014, and said it was confident about its markets in 2015 and beyond as the London property boom shows no sign of slowing.
The property company reported an EPRA pretax profit of GBP62.3 million for 2014, up from GBP57.8 million in 2013, while its EPRA net asset value rose to 2,908 pence, from 2,264p. Its total return including dividends rose to 30.1%, from 21.9% in 2013.
It said it would pay a final dividend of 28.00p for the year, bringing the total dividend to 39.65p, an 8.6% increase on 2013.
Its earnings growth was driven by a 5.8% increase in net rental income to GBP128.7 million, from GBP121.7 million in 2013.
It secured GBP9.2 million of new lettings in 2014, and has already secured GBP5.9 million of rent from new letting so far in 2015 with another GBP2.1 million under offer.
"Overall we see scant evidence so far of a commercial property slowdown in London and we expect to see rental growth at least maintained at 6-8% across the portfolio, and investment yields to remain firm in 2015," Chief Executive Robert Rayne said in a statement.
"We remain very confident in our business and our markets, and over the next few years look forward to delivering a substantial phased development programme to meet occupier demand," he added.
Derwent London shares were up 0.9% at 3,315.00 pence early Thursday.
By Steve McGrath; [email protected]; @stevemcgrath1
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