(Alliance News) - Derwent London PLC on Wednesday increased its guidance for 2024 on strong demand, but said it saw its annual loss widen on a revaluation deficit.
The London-based property investor and developer said gross rental income rose 2.8% to GBP12.8 million in 2023 from GBP207.0 million the year before.
Pretax loss widened, however, to GBP475.9 million from GBP279.5 million in 2022. This was mainly due to a revaluation deficit of GBP581.5 million, up from GBP422.1 million the year before.
Derwent declared a full-year dividend of 79.5 pence per share, indicating an uplift of 1.3% from 78.5 p the year prior.
Looking ahead, the firm said it expects high-quality space to remain in demand, and therefore raised its 2024 average portfolio estimated rental value growth guidance to a range of 2% to 5%, compared to the previous range of 0% to 3%. Portfolio valuation estimated rental value growth was 2.1% in 2023.
Chief Executive Paul Williams said: "We had a strong year for leasing in 2023, achieving over [GBP28 million] of new rent, on average 8% ahead of ERV's. Today we are upgrading our rental growth guidance for 2024. Despite macro uncertainty, businesses are prioritising quality, amenity and sustainability, supporting good demand for the right product in the right location. This plays well to our strengths and reflects London's diverse and robust occupational market, particularly in the West End. After a year of substantial outward yield movement, investment opportunities are starting to emerge and our balance sheet positions us well."
Shares in Derwent were up 1.0% at 1,934.00 pence each in London on Wednesday morning.
By Sabrina Penty, Alliance News reporter
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Derwent London (DLN)