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(Alliance News) - Derwent London PLC on Thursday announced "record" new leases and said it swung to a loss in the first half of the year.
The London-based property investor and developer said earnings from operational activities net tangible asset value fell by 5.2% to 3,444 pence per share at June 30, from 3,632p at December 31.
For the six months ended June 30, Derwent swung to a pretax loss of GBP143.1 million from a GBP137.1 million pretax profit a year prior. This relates to a revaluation deficit of GBP196.7 million.
Gross rental income rose 3.9% to GBP105.9 million from GBP101.9 million the year before, driven by "a combination of higher average portfolio vacancy and the exceptionally high irrecoverable service charges seen through the first quarter of 2023 when energy pricing was elevated," Derwent said.
Derwent declared an interim dividend of 24.5p per share, up 2.1% from 24.0p a year ago.
Looking ahead, Derwent expects rent to continue to rise, adding it is well-placed to continue upgrading its properties through developments and refurbishments. The company's average estimated recovery value growth remains unchanged at between 0% an 3%.
On Thursday Derwent also announced, since June 30, it has signed new leases totalling GBP7.0 million.
Chief Executive Officer Paul Williams said: "We have delivered over GBP26 million of new leases in 2023 to date, a near-record level, at an attractive 8.3% premium to December 2022 ERV. Our distinctive and sustainable buildings, with high-quality amenity such as our DL/Lounges, are in strong demand with occupiers."
Shares in Derwent were up 0.1% at 2,164.00 pence each in London on Thursday.
By Sabrina Penty, Alliance News reporter
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