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Derwent London plc REIT
(LSE:DLN)
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Rating:69Neutral
Price Target:
2,033.00 p
▼(-1.31% Downside)
Action:Downgraded
Date:08/07/26
The score is driven primarily by a recovering but historically volatile financial profile, supported by a favorable technical setup (price above key moving averages) and reasonable valuation (mid-teens P/E with ~3.9% yield). The latest earnings call adds a modest positive tilt due to upgraded guidance and strong leasing/development execution, tempered by NTA/valuation headwinds and flat-to-slightly-lower near-term earnings expectations.
Positive Factors
Leasing strength and low vacancy
Leasing above ERV, substantial new income and low vacancy indicate strong occupier demand for Derwent’s London offices. These factors support recurring rental growth, reduce near-term reletting risk, and provide a durable foundation for cash generation as demand remains elevated.
Negative Factors
Volatile cash generation
The sharp swing from negative free cash flow to strong 2025 generation shows that reported profitability does not consistently translate into cash. This volatility can constrain dependable distributions and internal funding, particularly while several developments remain under construction.
Read all positive and negative factors
Positive Factors
Negative Factors
Leasing strength and low vacancy
Leasing above ERV, substantial new income and low vacancy indicate strong occupier demand for Derwent’s London offices. These factors support recurring rental growth, reduce near-term reletting risk, and provide a durable foundation for cash generation as demand remains elevated.
Read all positive factors
Derwent London plc REIT (DLN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£2.04B
Dividend Yield4.52%
Average Volume (3M)235.84K
Price to Earnings (P/E)43.2
Beta (1Y)1.00
Revenue Growth45.36%
EPS Growth-79.84%
CountryUK
Employees206
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.42
Shares Outstanding109,748,146
10 Day Avg. Volume220,969
30 Day Avg. Volume235,845
Financial Highlights & Ratios
PEG Ratio0.30
Price to Book (P/B)0.54
Price to Sales (P/S)5.02
P/FCF Ratio8.95
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£2,079.25Price Target Upside0.93% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.97
Revenue Forecast (FY)£209.07M
Derwent London plc REIT Business Overview & Revenue Model
Company Description
Derwent London Plc stands as the preeminent London-focused Real Estate Investment Trust (REIT), managing a substantial commercial property portfolio primarily within central London. Comprising 83 buildings, its holdings, including joint ventures, ...
How the Company Makes Money
Derwent London primarily makes money by generating rental income from leasing space in its London commercial property portfolio to business occupiers. Revenue is driven by contracted rents under lease agreements, with performance influenced by occ...
Derwent London plc REIT Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Feb 25, 2027
Earnings Call Sentiment Positive
The call conveys a generally positive operational and strategic position: strong leasing activity, proven development returns (Network and 25 Baker Street), a disciplined capital-allocation program (disposals and buyback), a solid liquidity position and upgraded near-term earnings confidence. However, material valuation headwinds — notably the Old Street Quarter provision and outward yield shifts linked to geopolitical uncertainty — have weighed on reported NTA and produced near-term earnings and valuation sensitivity. Overall the company appears to be executing its strategy well and is positioned to benefit from continued rental growth, while some transitional and market-driven valuation/interest-rate risks remain.Positive Updates
Strong Leasing and Asset Management
Secured over GBP 30 million of leasing and asset management transactions year-to-date; new leases signed more than 5% above ERV; GBP 22 million of new income transacted YTD and a further GBP 5.3 million under offer, positioning the year to be one of the highest for new income on record.
Negative Updates
EPRA NTA and Reported Accounting Return Pressure
EPRA NTA at 30 June was 31.57p per share, a 2.1% reduction driven by an overall revaluation deficit and a sizeable provision against Old Street Quarter; reported total accounting return was negative at -0.4% after accounting for buyback, outward yield impact and the Old Street provision (underlying business return shown as +3.7% before those items).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Leasing and Asset Management
Secured over GBP 30 million of leasing and asset management transactions year-to-date; new leases signed more than 5% above ERV; GBP 22 million of new income transacted YTD and a further GBP 5.3 million under offer, positioning the year to be one of the highest for new income on record.
Read all positive updates
Company Guidance
The management reiterated a constructive outlook while tightening and updating guidance: EPRA earnings in 2026 are now expected to be between flat and down up to 3% versus 2025 (a 2–3% upgrade versus earlier guidance) with EPRA H1 earnings at GBP 54.6m (48.7p), and the business remains on track for 25–30% growth in EPRA earnings by 2030; ERV guidance for 2026 is reiterated at +4% to +7% (H1 ERV growth 2.6%), portfolio returns are expected to be c.7–10% p.a. over the medium term, and development returns remain strong (Network ungeared IRR ~11%, 50 Baker Street ungeared IRR >12%, major projects combined IRR c.12%, profit on cost c.18%, reverse development yield ~7%, developments value +10.3% H1). Balance sheet and capital allocation guidance: completed/contracted disposals of c.£280m (within ~3% of book) toward targets of £400m in 2026 and £1bn over 3 years, a £50m share buyback (c.£34m completed to date) to finish shortly, cash and undrawn facilities c.£481m (pro forma £581m), EPRA NTA £31.57/share (impacted by a £45.8m provision on Old Street Quarter and a revaluation deficit of 18p/share), EPRA vacancy ~4.4% (3.5% ex one asset), central London vacancy <7% (West End 5%, Grade A 1.2%), demand ~just under 12m sq ft, and a weighted average interest rate of 3.9% in H1 (expected ~3.8% in H2).Derwent London plc REIT Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
72
Positive
Cash Flow
60
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 400.90M | 388.70M | 271.70M | 267.80M | 249.00M | 240.30M |
| Gross Profit | 198.40M | 199.90M | 192.70M | 195.30M | 192.50M | 188.00M |
| EBITDA | 102.70M | 212.80M | 152.50M | -438.00M | -242.40M | 277.10M |
| Net Income | 48.00M | 161.10M | 115.90M | -476.40M | -280.50M | 252.30M |
Balance Sheet | ||||||
| Total Assets | 5.19B | 5.31B | 5.21B | 5.03B | 5.51B | 5.91B |
| Cash, Cash Equivalents and Short-Term Investments | 80.80M | 131.70M | 71.40M | 73.00M | 76.60M | 105.50M |
| Total Debt | 1.46B | 1.57B | 1.50B | 1.37B | 1.28B | 1.32B |
| Total Liabilities | 1.68B | 1.70B | 1.67B | 1.52B | 1.43B | 1.47B |
| Stockholders Equity | 3.52B | 3.62B | 3.54B | 3.51B | 4.08B | 4.44B |
Cash Flow | ||||||
| Free Cash Flow | 215.70M | 218.00M | -76.90M | 96.30M | 109.40M | 127.30M |
| Operating Cash Flow | 203.60M | 228.00M | 64.60M | 97.00M | 111.40M | 128.90M |
| Investing Cash Flow | 72.10M | -96.70M | -101.90M | -98.00M | -51.70M | -240.00M |
| Financing Cash Flow | -256.50M | -71.00M | 35.70M | -2.60M | -88.60M | 128.10M |
Derwent London plc REIT Technical Analysis
Negative
2060.00
Price Trends
1992.95
Negative
1893.65
Negative
1781.63
Positive
Market Momentum
-51.89
Positive
32.27
Neutral
29.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DLN, the sentiment is Negative. The current price of 2060 is above the 20-day moving average (MA) of 1928.23, above the 50-day MA of 1992.95, and above the 200-day MA of 1781.63, indicating a neutral trend. The MACD of -51.89 indicates Positive momentum. The RSI at 32.27 is Neutral, neither overbought nor oversold. The STOCH value of 29.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:DLN.
Derwent London plc REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | £2.72B | 6.59 | 9.48% | 3.11% | 9.10% | 20.49% | |
69 Neutral | £2.04B | 43.24 | 1.35% | 4.52% | 45.36% | -79.84% | |
67 Neutral | £4.17B | 8.65 | 7.73% | 5.81% | 15.13% | 29.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | £1.25B | 7.72 | 7.41% | 2.72% | 24.37% | 29.61% | |
58 Neutral | £699.97M | -5.72 | -8.83% | 7.25% | -2.05% | -2319.50% | |
57 Neutral | £213.12M | 37.14 | 1.34% | 7.07% | 4.03% | -79.67% |
* Real Estate Sector Average
GB:DLN
Derwent London plc REIT
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Derwent London plc REIT Corporate Events
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Derwent London grants Sharesave options to senior executives
Neutral
Sep 15, 2026
Derwent London plc, a UK-listed real estate investment trust, owns and manages a portfolio of design-led commercial properties concentrated in central London. The group focuses on prime office space and uses share-based incentive plans to align ma...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Derwent London Updates Employee Benefit Trust Holdings After Share Plan Vesting
Neutral
Sep 9, 2026
Derwent London plc, a UK real estate investment trust, focuses on commercial property ownership and development in central London, using share-based incentive structures through its Employee Benefit Trust to reward staff. The trust holds ordinary ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Completes £50m Share Buyback, Cutting Share Count
Positive
Sep 9, 2026
Derwent London plc has completed its £50 million share buyback programme, which was launched in May 2026 and executed in two £25 million tranches through Barclays Bank PLC on the London Stock Exchange. The second tranche concluded with t...
Executive/Board ChangesRegulatory Filings and Compliance
Derwent London CFO Discloses Share Award Vesting and Partial Sale
Neutral
Sep 8, 2026
Derwent London plc has reported changes in the shareholding of its Chief Financial Officer, Damian M A Wisniewski, following the vesting of an award under the Group’s Performance Share Plan 2014. On 7 September 2026, Wisniewski acquired 5,25...
Stock BuybackRegulatory Filings and Compliance
Derwent London Cuts Share Count as Buyback Programme Advances
Positive
Sep 7, 2026
Derwent London plc has continued to execute its £50 million share buyback programme, repurchasing 139,919 ordinary shares for cancellation between 31 August and 4 September 2026 at an average price of 1,976 pence per share. These purchases fo...
Business Operations and StrategyExecutive/Board Changes
Derwent London grants pro-rated share awards to new chief executive
Neutral
Sep 3, 2026
Derwent London has granted share-based awards to newly appointed chief executive Jonathan S. Murphy under its 2023 Performance Share Plan. The nil-cost option awards, comprising performance and restricted share elements over a total of 28,458 ordi...
Business Operations and StrategyDelistings and Listing Changes
Derwent London Admits New Shares Under Employee Schemes
Neutral
Sep 1, 2026
Derwent London plc, a UK real estate investment trust specialising in central London commercial property, continues to manage a substantial portfolio of office and mixed-use buildings. Its scale and focus on the London market make it a significant...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback, Cuts Share Count to 109.96m
Positive
Sep 1, 2026
Derwent London has continued executing its £50 million share buyback, purchasing 166,973 ordinary shares for cancellation between 24 and 28 August 2026 at an average price of 2,061 pence, as part of the second £25 million tranche. In tot...
Regulatory Filings and Compliance
Derwent London Confirms Total Voting Rights and Share Capital
Neutral
Aug 28, 2026
Derwent London plc has confirmed that its issued share capital currently comprises 109,959,111 ordinary shares of 5 pence each, all of which carry voting rights. The company holds no treasury shares, meaning the total number of voting rights in th...
Stock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback With New Share Cancellations
Positive
Aug 24, 2026
Derwent London has continued its £50 million share buyback programme, repurchasing 170,088 ordinary shares for cancellation between 17 and 21 August at an average price of 2,040 pence as part of the second £25 million tranche. The move r...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback, Cuts Share Count to 110.3m
Positive
Aug 17, 2026
Derwent London plc has continued its £50 million share buyback programme, repurchasing 165,889 ordinary shares for cancellation between 10 and 14 August 2026 at an average price of 2,087 pence as part of the second £25 million tranche. T...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Cuts Share Count as Buyback Passes 1.8 Million Shares
Positive
Aug 10, 2026
Derwent London plc has continued executing its £50 million share buyback programme, repurchasing 166,132 ordinary shares for cancellation between 3 and 7 August at an average price of 2,108 pence as part of the second £25 million tranche...
Business Operations and StrategyStock BuybackFinancial Disclosures
Derwent London boosts guidance as disposals, developments and buyback drive returns
Positive
Aug 6, 2026
Derwent London reported solid operational momentum in the first half of 2026, despite modest pressure on valuations and earnings. Gross and net rental income declined slightly, EPRA EPS fell 6.7 per cent, and EPRA NTA per share slipped 2.1 per cen...
Stock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback as Share Count Falls
Positive
Aug 3, 2026
Derwent London has continued executing its £50 million share buyback programme, repurchasing 167,808 ordinary shares for cancellation between 27 and 31 July 2026 at an average price of 2,088 pence as part of the second £25 million tranch...
Regulatory Filings and Compliance
Derwent London Confirms Current Voting Rights and Share Capital
Neutral
Jul 31, 2026
Derwent London plc has confirmed that its issued share capital currently comprises 110,625,638 ordinary shares of 5 pence each, all of which carry voting rights and none of which are held in treasury. This disclosure clarifies the total number of ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London tightens free float with latest tranche of £50m share buyback
Positive
Jul 27, 2026
Derwent London plc has continued executing its £50 million share buyback, purchasing 170,209 ordinary shares for cancellation between 20 and 24 July 2026 at an average price of 2,039 pence as part of the second £25 million tranche. These...
Business Operations and StrategyStock Buyback
Derwent London Completes First £25m Buyback Tranche and Launches Second Phase
Positive
Jul 20, 2026
Derwent London has completed the first £25 million tranche of its £50 million share buyback programme, repurchasing and cancelling 1,333,467 ordinary shares at an average price of 1,875 pence. In the most recent week, the group bought a ...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Reduces Share Count With Ongoing £50m Buyback
Positive
Jul 13, 2026
Derwent London has continued executing its £50 million share buyback programme, repurchasing 138,652 ordinary shares for cancellation between 6 and 10 July at an average price of 1,986 pence as part of the first £25 million tranche. The ...
Business Operations and StrategyPrivate Placements and Financing
Derwent London Secures £100m Revolving Credit Facility with New Lender
Positive
Jul 13, 2026
Derwent London plc, the largest London office-focused REIT, owns and manages a £5.1 billion commercial property portfolio concentrated in central London, particularly the West End and City Borders. The Group emphasises design-led regeneration...
Stock BuybackRegulatory Filings and Compliance
Derwent London Reduces Share Count as Buyback Passes 1.08m Shares
Positive
Jul 6, 2026
Derwent London has continued execution of its £50 million share buyback programme, repurchasing 174,941 ordinary shares for cancellation between 29 June and 3 July at an average price of 1,946 pence. The transactions, carried out across the L...
Business Operations and StrategyM&A Transactions
Derwent London Advances £400m Disposal Plan with Central London Asset Sales
Positive
Jul 1, 2026
Derwent London has completed the disposals of Horseferry House in SW1 and 80-85 Tottenham Court Road in W1, receiving net proceeds of £160 million as part of its ongoing capital recycling strategy. Horseferry House was sold to an overseas inv...
Regulatory Filings and Compliance
Derwent London Confirms Current Voting Share Capital
Neutral
Jun 30, 2026
Derwent London plc has confirmed that its issued share capital currently comprises 111,307,919 ordinary shares of 5 pence each, all carrying voting rights. The group holds no shares in treasury, meaning the full issued share capital equals the tot...
Business Operations and StrategyStock BuybackRegulatory Filings and Compliance
Derwent London Advances £50m Buyback, Cuts Share Count to 111.4m
Positive
Jun 29, 2026
Derwent London has continued executing its £50 million share buyback programme, repurchasing 191,994 ordinary shares for cancellation between 22 and 26 June 2026 at an average price of 1,909 pence. The purchases, carried out via multiple trad...
Business Operations and StrategyStock BuybackFinancial DisclosuresRegulatory Filings and Compliance
Derwent London advances £50m buyback, cuts share count to 111.6m
Positive
Jun 22, 2026
Derwent London plc has continued to execute its £50 million share buyback programme, repurchasing 164,490 ordinary shares for cancellation between 15 and 19 June 2026 at an average price of 1,900 pence. These purchases, made across the London...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.