Strong rental demand at Derwent London

London focused real estate investment trust Derwent London boosted annual net asset value per share and said it was confident for future prospects.

London focused real estate investment trust Derwent London boosted annual net asset value per share and said it was confident for future prospects.

European Public Real Estate Association or EPRA net asset value per share increased by 11% to 1,886p for the year ended December 31st 2012.

The group posted EPRA pre-tax profit of £52.5m up from £52.3m while profit from operations fell to £277.1m from £301.2m.

Net property and other income eased to £117.0m from £117.7m.

Derwent said the vacancy rate was low at 1.6%, reflecting strong rental demand.

Chairman Robert Rayne said: "The group achieved a double digit percentage increase in net asset value driven by increasing rents in our markets, management activity and progress in our development pipeline."

"We are continuing to see new tenants attracted to the space we provide and consider that rents in our markets will continue to rise. This gives us the confidence both to accelerate our development pipeline and increase the dividend for the year."

Chief Executive Officer John Burns added: "Our signature mid-market central London office space remains in demand and we expect our rental values to rise between 4% and 6% in 2013."

The company expects to complete 260,000 sq ft of projects in 2013 and intends to have more than 650,000 sq ft under construction, including 80 Charlotte Street, by the year-end.

The group has recommended a final dividend of 23.75p per share, up 8.4% from 2011.

CJ

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020