Derwent London posts FY IFRS pre-tax loss

Derwent London stated full-year lettings had risen 13% year-on-year to £9.8m, while its net rental income grew 6% to £188.5m.

However, Derwent's EPRA net tangible assets slumped 8.3% to 3,632.0p per share and it swing to an IFRA pre-tax loss of £279.5m from the prior year's profit of £252.5m.

The FTSE 250-listed group also stated it had delivered a total negative return of -6.2% and said EPRA earnings slipped 1.8% to 106.6p per share.

Separately, Derwent revealed it had signed ten leases since the start of 2023 for a combined rental value of £14.7m, including its first pre-let at 25 Baker Street in West London and a third major occupier at the Featherstone Building in East London.

Derwent highlighted that the average lease term to break of the transactions was 13.4 years. On a pro-forma basis its operational EPRA vacancy rate will reduce to 5.0%, from 6.4% at December 2022.

Chief executive Paul Williams said: ""The £14.7m of lettings we have announced today further demonstrate the depth of demand for our distinctively designed, sustainable offices and we anticipate rental growth accelerating for the best buildings over the medium-term.

"We have an opportunity-rich pipeline, underpinned by our high quality core portfolio. Our balance sheet remains strong helped by another year of active capital recycling."

As of 0915 GMT, Derwent shares were down 0.12% at 2,589.0p.

Reporting by Iain Gilbert at Sharecast.com