Derwent London (LON:DLN) Releases Earnings Results

Derwent London (LON:DLN) released its quarterly earnings results on Thursday. The real estate investment trust reported GBX 98.40 earnings per share for the quarter, Digital Look Earnings reports. Derwent London had a negative return on equity of 10.41% and a negative net margin of 129.56%.

Here are the key takeaways from Derwent London’s conference call:

• Derwent will accelerate capital recycling with a target to dispose up to £1 billion over three years and redeploy proceeds into selective developments, acquisitions or potential share buybacks while keeping net debt/EBITDA below 9.5x.
• Management expects 2026 EPRA earnings to be slightly down overall (H1 ~£0.42–£0.44, H2 ~£0.52) but forecasts earnings growth in 2027 (+5–10% vs 2025) and a material rise by 2030 (modelled at +25–30%) as rental reversion and project completions feed through.
• Execution on developments and leasing is strong: 25 Baker Street and Network W1 are delivering rents materially above appraisal, asset management generated a record ~£59m of income in 2025, and the leasing pipeline includes £14.4m under offer supporting near-term cash flow.
• Refinancing is complete and all debt will be unsecured after Q1, with liquidity of ~£627m and net debt/EBITDA reduced to ~9x, but average interest rates rose (2025 average ~3.8%) which partially offsets the balance-sheet strength.
• Management cites an improving London office market—tight supply, strong occupier demand and rising investment liquidity—and has raised 2026 ERV guidance to +4%–+7%, which underpins the company’s growth case.

Derwent London Trading Up 3.2%

LON DLN traded up GBX 57 during mid-day trading on Friday, reaching GBX 1,814. 878,199 shares of the stock were exchanged, compared to its average volume of 1,315,089. The stock has a market capitalization of £2.04 billion, a PE ratio of 8.58, a PEG ratio of 23.10 and a beta of 1.03. The company has a debt-to-equity ratio of 40.68, a quick ratio of 0.38 and a current ratio of 0.51. Derwent London has a 1-year low of GBX 1,600 and a 1-year high of GBX 2,106. The business’s fifty day simple moving average is GBX 1,827.96 and its 200 day simple moving average is GBX 1,754.14.

Analyst Upgrades and Downgrades

A number of analysts have commented on DLN shares. JPMorgan Chase & Co. downgraded Derwent London to a “neutral” rating and decreased their target price for the stock from GBX 2,400 to GBX 2,100 in a research report on Friday, November 28th. Berenberg Bank boosted their price objective on shares of Derwent London from GBX 2,236 to GBX 2,296 and gave the stock a “buy” rating in a research report on Monday, January 26th. Finally, Shore Capital Group reissued a “buy” rating on shares of Derwent London in a research note on Thursday, November 6th. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of GBX 2,228.67.

About Derwent London

Derwent London plc owns 66 buildings in a commercial real estate portfolio predominantly in central London valued at £4.9 billion as at 31 December 2023, making it the largest London office-focused real estate investment trust (REIT). Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling. We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt.