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:
£1.92B
Payout Frequency: Semi-Annual
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.
Read more
Derwent London Annual Dividend Yield - 4.71%
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 (1720p)
= 4.71%
Derwent London Dividend History
| 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
Derwent London Dividend Growth
| Dividend Growth (1Y) |
1.24%
|
| Dividend CAGR (5Y) |
1.83%
|
| Years of Growth |
6
|
| Payout Ratio |
56.36%
|
| Buyback Yield |
0.31%
|
| Shareholder Yield |
4.99%
|
| P/E Ratio (TTM) | 11.83 |
|---|
| Forward P/E | 17.56 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | 8.45% |
|---|
| FCF Yield | – |
|---|
| ROE | 4.5% |
|---|
| ROCE | 3.3% |
|---|
| Profit Margin | 39.63% |
|---|
| Operating Margin | 39.85% |
|---|
| Gross Margin | 49.57% |
|---|