Derwent London plc REIT AI Stock Analysis
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Derwent London plc REIT (DLN) AI Stock Analysis
Derwent London plc REIT
(LSE:DLN)
The score is driven primarily by improved (but still volatile) financial performance and supportive technical momentum. Earnings-call commentary adds confidence in execution and leasing strength, while the high P/E and valuation/NTA headwinds meaningfully cap the overall rating.
Derwent London plc REIT (DLN) vs. iShares MSCI United Kingdom ETF (EWC)
- Market Cap
- GBP 2.17B
- Dividend Yield
- 4.15%
- Average Volume (3M)
- 301.06K
- Price to Earnings (P/E)
- 47.1
- Beta (1Y)
- 1.00
- Revenue Growth
- 45.36%
- EPS Growth
- -79.84%
- Country
- UK
- Employees
- 206
- Sector
- Real Estate
- Sector Strength
- 65
- Industry
- REIT - Office
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, wer...
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 occupa...
Derwent London plc REIT Earnings Call Summary
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.
Q2-2026 Updates
Positive Updates
Negative 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
Financials show a clear 2025 rebound with strong revenue growth, solid profitability, and improved operating/free cash flow, supported by moderate leverage. The key offset is historical volatility (losses in 2022–2023 and negative free cash flow in 2024), which lowers confidence in stability.
Income Statement
66PositiveBalance Sheet
72PositiveCash Flow
60Neutral| 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
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:DLN, the sentiment is Positive. The current price of 1978.00 is above the 20-day moving average (MA) of 1904.90, above the 50-day MA of 1858.00, and above the 200-day MA of 1813.18, indicating a bullish trend. The MACD of 33.10 indicates Negative momentum. The RSI at 67.73 is Neutral, neither overbought nor oversold. The STOCH value of 74.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:DLN.
Derwent London plc REIT Peers Comparison
Overall Rating
GB:SHC75Outperform
GB:BLND73.5Outperform
GB:GPE71.95Outperform- GB:DLN68.75Neutral
GB:HLCL57Neutral
GB:WKP53Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| GB:SHC | 75Outperform | GBP 2.92B | 7.06 | 9.48% | 2.90% | 9.10% | 20.49% |
| GB:BLND | 74Outperform | GBP 4.41B | 9.33 | 7.73% | 5.38% | 15.13% | 29.40% |
| GB:GPE | 72Outperform | GBP 1.43B | 9.13 | 7.41% | 2.30% | 24.37% | 29.61% |
| GB:DLN | 69Neutral | GBP 2.18B | 47.09 | 1.35% | 4.15% | 45.36% | -79.84% |
| Sector * | 65Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
| GB:HLCL | 57Neutral | GBP 224.22M | 40.12 | 1.34% | 6.54% | 4.03% | -79.67% |
| GB:WKP | 53Neutral | GBP 688.41M | -5.62 | -8.83% | 7.37% | -2.05% | -2319.50% |
* Real Estate Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| GB:DLN | Derwent London plc REIT | 1978.00 | 268.89 | 15.73% | |
| GB:BLND | British Land Company plc | 429.40 | 53.19 | 14.14% | |
| GB:SHC | Shaftesbury Capital Plc | 148.30 | 7.08 | 5.02% | |
| GB:GPE | Great Portland Estates plc R.E.I.T. | 356.00 | 27.84 | 8.48% | |
| GB:HLCL | Helical plc | 195.00 | -6.50 | -3.23% | |
| GB:WKP | Workspace Group plc R.E.I.T. | 354.20 | -26.93 | -7.07% |
Derwent London plc REIT Corporate Events
Derwent London Updates Market on Share Capital and Voting Rights
NeutralDerwent London plc has confirmed that, as of 30 September 2026, its issued share capital comprises 109,749,446 ordinary shares of 5 pence each, all of which carry voting rights. The company also reported that it holds no treasury shares, meaning the...
Derwent London grants Sharesave options to senior executives
NeutralDerwent 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 manag...
Derwent London Updates Employee Benefit Trust Holdings After Share Plan Vesting
NeutralDerwent 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 sha...
Derwent London Completes £50m Share Buyback, Cutting Share Count
PositiveDerwent 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 the purchase a...
Derwent London CFO Discloses Share Award Vesting and Partial Sale
NeutralDerwent 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 5,253 ordinar...
Derwent London Cuts Share Count as Buyback Programme Advances
PositiveDerwent 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 form part...
Derwent London grants pro-rated share awards to new chief executive
NeutralDerwent 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 ordinar...
Derwent London Admits New Shares Under Employee Schemes
NeutralDerwent 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 pl...
Derwent London Advances £50m Buyback, Cuts Share Count to 109.96m
PositiveDerwent 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 total, the group...
Derwent London Confirms Total Voting Rights and Share Capital
NeutralDerwent 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 the g...
Derwent London Advances £50m Buyback With New Share Cancellations
PositiveDerwent 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 reduces the co...
Derwent London Advances £50m Buyback, Cuts Share Count to 110.3m
PositiveDerwent 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. The buybacks,...
Derwent London Cuts Share Count as Buyback Passes 1.8 Million Shares
PositiveDerwent 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. The company...
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.
Date of analysis: Nov 07, 2026