Derwent London swings to pretax profit, expects rise in debt cost

Published 27/02/2025, 11:12
© Reuters.

Investing.com -- Derwent London (LON:DLN), a property investment and development company listed in London, has reported a swing to pretax profit in 2024.

The company’s pretax profit stood at £116 million ($147 million), compared with a pretax loss of £475.9 million the previous year. This turnaround was primarily due to a smaller decline in property values for the year.

For 2024, Derwent London recorded an asset-revaluation deficit of £2.7 million, a significant reduction from the £581.5 million deficit in 2023. The company’s gross property and other income also increased, reaching £276.9 million from £265.9 million.

In terms of key industry metrics, the company’s EPRA net tangible asset value saw an increase, rising to 3,149 pence from 3,129 pence a share year-on-year. Meanwhile, the valuation of the company’s portfolio also grew, reaching £5.04 billion, up from £4.88 billion.

The board of Derwent London decided to increase the full-year dividend by 1.3%, which now stands at 80.5 pence a share.

Looking forward, the company anticipates that the estimated rental values (ERV) across its portfolio will increase by 3% to 6% in 2025.

However, the company also expects its average cost of debt to rise in the future, although specific details were not provided.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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