Derwent London PLC (OTCPK:DWVYF)

Half Year 2026 Derwent London PLC Earnings Call Transcript

Aug 6, 2026 / 08:30 AM GMT

Release Date Price: $28

Transcript

Key Points

Positve

Derwent London PLC (DWVYF) delivered a strong operational performance, securing over £30 million in leasing and asset management transactions, with new leases signed more than 5% above ERV.
The company is executing its capital allocation framework effectively, completing or contracting £280 million of disposals within 3% of book value and launching a £50 million share buyback that is over halfway complete.
The London occupational market is robust, with active demand exceeding supply and driving rental growth, evidenced by a 2.6% increase in underlying ERV, the highest first-half rise in a decade.
Development projects are performing well, with Network completing fully pre-let and delivering an ungeared IRR of around 11%, while the new 50 Baker Street project is forecast to deliver an ungeared IRR in excess of 12%.
The company upgraded its 2026 EPRA earnings guidance due to a stronger-than-expected first half, and maintains a strong balance sheet with comfortable leverage and reduced average interest rates following refinancing.

Negative

EPRA NTA decreased by 2.1% in the first half, driven by a 6 basis points outward yield shift and a £45.8 million provision booked against the Old Street Quarter site.
The investment market remains subdued, impacted by the war in the Middle East, leading to lower transaction volumes and outward yield movements across the portfolio.
Gross rental income declined compared to H1 2025, due to a larger-than-usual number of projects on site and additional vacancy, including One Page Street which is being marketed for sale.
Net finance costs increased due to a reduction in capitalised interest and the redemption of low-cost convertible bonds, replaced by conventional bonds at a higher 5.25% rate.
The company faces potential further provisions on the Old Street Quarter, as the provision is sensitive to delivery options and could increase substantially if the site is sold without development.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DLN.L - Derwent London PLC
Half Year 2026 Derwent London PLC Earnings Call
Aug 06, 2026 / 08:30AM GMT

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Presentation
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Unidentified_1 [1]
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Well good morning everyone and welcome to the Derwent London H126 results presentation. Today you will hear from Damien, Emily and me following which we will be happy to take any questions you may have.

Firstly some key takeaways.

We are delivering against the operational capital allocation targets we outlined in February, including the buyback.

The London occupation market is strong with active demand remaining above supply, driving rental growth across our portfolio.

Whilst the investment market is more subdued, impacted by the war in the Middle East, we have sold well in accordance with our targets and we are pushing ahead with selective West End developments where forecast returns are strong

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