Derwent London posts record six months of letting, dividend up 25%

Property developer Derwent London hiked its first-half dividend as the London-focused group boasted a record six months of new lettings.

The FTSE 250-listed company lifted its interim dividend by 25% to 17.33p as net income rose to £81.5m in the period between January and June, from £74.2m in the corresponding period of 2016.

Earnings per share were lifted from 88.55p in the year-ago half to 131.42p in the period ending June 30.

Derwent also lifted its market guidance for the remainder of 2017 off the back of consistent earnings growth.

CEO John Burns said: "We have achieved a record £23.4m of new lettings in the first half. Following this success, we have marginally raised market guidance for both rents and yields in 2017.

“Despite continuing political uncertainty, we have made strong progress in capturing reversion and de-risking the pipeline which highlights the appeal of our product. This has given us the confidence to advance with our next major development at Soho Place W1, above Tottenham Court Road Elizabeth Line station."

Derwent’s shares were 0.46% higher shortly after the open on Thursday following the earnings report.