Derwent posts valuation dip
Derwent has posted a portfolio valuation of £5bn, a 0.2% fall, in its annual results for the year to 31 December 2016.
The result follows a 1.7% decrease in the company’s half-year valuation during the period ending 30 June 2016.
Derwent also posted a record £31.4m of lettings, while net rental income rose by 5.3% to £145.9m from £138.7m in 2015.
Derwent has posted a portfolio valuation of £5bn, a 0.2% fall, in its annual results for the year to 31 December 2016.
The result follows a 1.7% decrease in the company’s half-year valuation during the period ending 30 June 2016.
Derwent also posted a record £31.4m of lettings, while net rental income rose by 5.3% to £145.9m from £138.7m in 2015.
It recorded new lettings of £11.5m, including Arup’s prelet of 41% of 80 Charlotte Street, W1, which is due to complete in 2019.
Of its current development programme, 44% is prelet, up from 8% at 31 December 2015.
It has regeared leases, enabling Expedia to take at least 231,400 sq ft at the Angel Building, EC1, from 2020 until 2030.
Property disposals totalled £208m, 3.7% above the total at 31 December 2015.
The company posted NAV of 3,551p, up by 0.5% from 3,535p at 31 December 2015, but 1.3% lower than the company’s 30 June 2016 NAV.
Robbie Rayne, chairman, said: “The board has proposed a 25% increase in the final dividend, reflecting our financial position and the de-risking of our 2017-18 pipeline in the past 12 months. In addition, following the transactions announced today, we are proposing a special dividend of 52p per share.”
John Burns, chief executive, added: “These results highlight how our business model of creating innovative office space in improving locations can make progress even in less-buoyant market conditions. While we believe it is right to remain cautious, we are in a strong financial position with a well-balanced portfolio.”
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