Derwent London (DLN) Q3 2025 TU earnings summary

Executive summary

• Achieved strong operational momentum with new leases signed 10% ahead of ERV and active leasing discussions ongoing across the portfolio.

• Disposed of over £200m in assets year-to-date, strengthening financial capacity for reinvestment in development projects.

• Major projects such as 25 Baker Street and Network W1 progressing well, with significant rental and sales proceeds realized.

Financial highlights

• Completed £17.5m of new rent YTD, including renewals and regears, with a further £4.0m under offer.

• Net debt reduced by approximately £90m in Q3 to £1.46bn, and EPRA LTV decreased to 29.6%.

• Cash and undrawn facilities increased to £626m at quarter end.

• EPRA vacancy rate remained low at 3.7%.

Outlook and guidance

• Portfolio ERV guidance for 2025 reiterated at 3-6%, with higher quality buildings expected to outperform.

• Targeting higher level of asset sales to provide capital allocation flexibility and drive further value.

• Attractive medium-term earnings outlook supported by contracted headline rent and strong rental growth from major projects completing by 2029.