Derwent London

Website: Derwent London
Index: FTSE 250
EPIC: DLN
Supersector: Real Estate
Sector: Real Estate Investment Trusts
Subsector: Industrial and Office REITs
Market Cap: £1.9B
Payout Frequency: Semi-Annual

Next Derwent London Dividend

Derwent London next goes ex-dividend on 23/04/2026. This will be the Final dividend for 2026.

The dividend per share amount is 56.0000p (GBP) and the payment date is 29/05/2026.

Derwent London Dividend Analysis and Summary

Key Dividend Details

Final dividend declared: 56.0p per share (FY25 total: 81.5p, up 1.2% y/y; 18th consecutive annual increase).
Final dividend split: 40.0p PID (subject to 20% UK withholding) + 16.0p ordinary.
Payment date: 29/05/2026.
Record date: 24/04/2026.
Ex-dividend date: 23/04/2026.
Coverage: FY25 dividend covered c.1.2x by EPRA EPS 98.4p (c.1.3x on adjusted EPS incl. trading profits of 102.1p).
Policy: progressive dividend, “well-covered by EPRA earnings.”
ISIN: GB0002652740.

Sustainability and Coverage

Coverage remains adequate at ~1.2x despite a step down in EPRA EPS (98.4p vs 106.5p in 2024) due to mid-year refinancing costs. Full-year dividend at 81.5p remains inside historic norms for coverage.
Balance sheet support is solid: EPRA LTV 29.4% (targeting <30%), Net debt/EBITDA 9.0x (within target <9.5x), interest cover 3.1x, and £627m of cash and undrawn facilities at year-end.
Forward earnings trajectory: management guides to a near-term dip in EPRA earnings until Network W1 income commences, then growth in H2 2026 and 2027; 25–30% EPRA EPS growth targeted by 2030. This underpins medium-term dividend sustainability.
Operational underpins: strong leasing momentum (2026 offices at Network W1 under offer), ERV growth guidance 4–7% for 2026, and asset management-led reversion support future cash flows.

Capital Allocation and Policy Support

Planned disposals of £1bn over three years to fund development capex (~£500m) and leave ~£250m for selective acquisitions and potential share buybacks. This recycling strategy supports dividends while targeting accretive reinvestment.
Refinancing actions in 2025/26 (new £250m 5.25% 2032 bonds; repayment of 6.5% LMS bonds in Mar-26; USPP notes repaid) expected to reduce the average spot interest rate slightly in 2026 and support coverage.
Dividend policy explicitly unchanged and remains progressive with coverage from EPRA earnings; REIT PID portion provides a recurring distribution mechanism from property income.

Structural/Corporate Changes and Notable Items

Leadership transition: CEO Paul Williams to retire once successor appointed; Executive Director Nigel George to step down from the Board on 31 Mar 2026 (continues as employee for 12–24 months). No change to stated dividend policy.
Portfolio recycling: Disposals of £216m in 2025; £33m exchanged YTD 2026 with c.£240m under offer, plus sale of 80–85 Tottenham Court Road (£32.6m) exchanged.
Financing: New unsecured bonds, RCF refinanced to 2029; repayment of higher-coupon bonds in early 2026 should improve finance costs. No share consolidation, demerger or M&A announced.

Risks and Flags to Dividend Stability

Near-term earnings dip: Management guides to lower EPRA earnings in H1 2026 until Network W1 income contributes; coverage could be tighter near term.
Interest cost and leverage: Interest cover fell to 3.1x; Net debt/EBITDA at 9.0x (within target but elevated). Execution of planned disposals and rate trends are important.
Development and leasing risk: Substantial pipeline (Holden House, Greencoat & Gordon House, 50 Baker Street) entails capex and delivery risk; however, pre-letting momentum is strong.
Market/transaction risk: Disposal programme (£1bn target) and capital recycling rely on sustained liquidity and pricing in London offices.
Policy/operational risk: Potential government changes (e.g., rent review rules) and project timing (e.g., Building Safety Regulator sign-offs) could affect income timing.
Corporate transition: CEO succession introduces some uncertainty; Board emphasizes continuity.

Derwent London Annual Dividend Yield - 5.01%

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
24/04/2025	30/05/2025	Final	55.50p	GBX
04/09/2025	10/10/2025	Interim	25.50p	GBX

Total (Annual Dividends Per Share): 81.00p

Dividend Yield = Annual Dividends Per Share (81.00p) ÷ Share Price (1617p) = 5.01%

Ex Dividend Date	Payment Date	Type	Amount	Currency
23/04/2026	29/05/2026	Final	56.0000p	GBX
04/09/2025	10/10/2025	Interim	25.50p	GBX
24/04/2025	30/05/2025	Final	55.50p	GBX
05/09/2024	11/10/2024	Interim	25.00p	GBX
25/04/2024	31/05/2024	Final	55.00p	GBX
07/09/2023	13/10/2023	Interim	24.50p	GBX
27/04/2023	02/06/2023	Final	54.50p	GBX
08/09/2022	14/10/2022	Interim	24.00p	GBX
28/04/2022	01/06/2022	Final	53.50p	GBX
09/09/2021	15/10/2021	Interim	23.00p	GBX
29/04/2021	04/06/2021	Final	52.45p	GBX
10/09/2020	16/10/2020	Interim	22.00p	GBX
30/04/2020	05/06/2020	Final	51.45p	GBX
12/09/2019	18/10/2019	Interim	21.00p	GBX
02/05/2019	07/06/2019	Final	46.75p	GBX
13/09/2018	19/10/2018	Interim	19.10p	GBX
03/05/2018	08/06/2018	Special	75.00p	GBX
03/05/2018	08/06/2018	Final	42.40p	GBX
14/09/2017	20/10/2017	Interim	17.33p	GBX
04/05/2017	09/06/2017	Special	52.00p	GBX
04/05/2017	09/06/2017	Final	38.50p	GBX
15/09/2016	21/10/2016	Interim	13.86p	GBX
05/05/2016	10/06/2016	Final	30.80p	GBX
17/09/2015	22/10/2015	Interim	12.60p	GBX
07/05/2015	12/06/2015	Final	28.00p	GBX
17/09/2014	23/10/2014	Interim	11.65p	GBX
07/05/2014	13/06/2014	Final	25.75p	GBX
18/09/2013	24/10/2013	Interim	10.75p	GBX
08/05/2013	14/06/2013	Final	23.75p	GBX
26/09/2012	01/11/2012	Interim	9.95p	GBX
16/05/2012	15/06/2012	Final	21.90p	GBX
28/09/2011	04/11/2011	Interim	9.45p	GBX
18/05/2011	16/06/2011	Final	20.25p	GBX
01/10/2010	05/11/2010	Interim	8.75p	GBX
19/05/2010	17/06/2010	Final	18.85p	GBX
30/09/2009	06/11/2009	Interim	8.15p	GBX
20/05/2009	19/06/2009	Final	16.35p	GBX
01/10/2008	10/11/2008	Interim	8.15p	GBX
21/05/2008	19/06/2008	Final	15.00p	GBX
03/10/2007	09/11/2007	Interim	7.50p	GBX
24/01/2007	23/02/2007	Final	10.52p	GBX
11/10/2006	06/11/2006	Interim	4.22p	GBX
10/05/2006	05/06/2006	Final	9.73p	GBX
12/10/2005	07/11/2005	Interim	3.93p	GBX
11/05/2005	06/06/2005	Final	8.90p	GBX
13/10/2004	01/11/2004	Interim	3.60p	GBX
12/05/2004	09/06/2004	Final	8.10p	GBX

Year	Interim	Final	Special	Currency	Total	Change
2024	25.000	55.000		GBX	80.000	1.260
2023	24.500	54.500		GBX	79.000	1.930
2022	24.000	53.500		GBX	77.500	2.710
2021	23.000	52.450		GBX	75.450	2.720
2020	22.000	51.450		GBX	73.450	8.410
2019	21.000	46.750		GBX	67.750	-50.360
2018	19.100	42.400	75.000	GBX	136.500	26.580
2017	17.330	38.500	52.000	GBX	107.830	141.440
2016	13.860	30.800		GBX	44.660	10.000
2015	12.600	28.000		GBX	40.600	8.550
2014	11.650	25.750		GBX	37.400	8.400
2013	10.750	23.750		GBX	34.500	8.320
2012	9.950	21.900		GBX	31.850	7.230
2011	9.450	20.250		GBX	29.700	7.600
2010	8.750	18.850		GBX	27.600	12.650
2009	8.150	16.350		GBX	24.500	5.830
2008	8.150	15.000		GBX	23.150	208.660
2007	7.500			GBX	7.500	-69.350
2006	4.220	20.250		GBX	24.470	90.720
2005	3.930	8.900		GBX	12.830	9.650
2004	3.600	8.100		GBX	11.700

Derwent London Dividend Calculator

Number of Shares:

Payment	Paid	Amount
Next	–	–
Previous	–	–

Derwent London Dividend Growth

Dividend Growth (1Y)	1.24%
Dividend CAGR (5Y)	1.83%
Years of Growth	6
Payout Ratio	56.79%
Buyback Yield	0.31%
Shareholder Yield	5.1%

P/E Ratio (TTM)	11.8
Forward P/E	17.26
P/FCF	–
Earnings Yield	8.47%
FCF Yield	–
ROE	4.5%
ROCE	3.3%
Profit Margin	39.63%
Operating Margin	39.85%
Gross Margin	49.57%