Derwent London Plc Q2 2026 Earnings Recap

Shares declined 0.6% as investors digested modest outward yield shifts and a significant provision at Old Street Quarter, which weighed on net asset value despite steady underlying operational performance.

Key Takeaways

• EPRA earnings for H1 slightly exceeded guidance, prompting a 2026 earnings upgrade.
• Property portfolio saw a 6 basis point outward yield shift, impacting valuations; adjusted for transactions, yield movement was closer to 15 basis points.
• EPRA net tangible assets declined 2.1%, driven by valuation deficits and a GBP 45.8 million provision related to the Old Street Quarter acquisition.
• Rental income was marginally down year-over-year due to vacancies linked to ongoing projects and sales marketing, partially offset by new lettings including the fully pre-let Network development.
• Disposals of GBP 280 million reduced leverage and enabled a GBP 50 million share buyback program, supporting balance sheet strength amidst cautious market conditions.