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Derwent London PLC REIT (GB:DLN)
LSE:DLN

Derwent London plc REIT (DLN) AI Stock Analysis

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Derwent London plc REIT

(LSE:DLN)

69Neutral
Derwent London plc demonstrates financial stability with strong gross profit margins and a healthy balance sheet but faces challenges in consistent income and cash flow growth. The stock is currently trading below key moving averages, indicating a bearish sentiment. However, the valuation is attractive with a solid dividend yield. Recent corporate events highlight strong rental growth and strategic developments, contributing positively to the outlook. Overall, the stock presents a balanced mix of strengths and risks, resulting in a moderately positive score.
Positive Factors
Debt Management
With 25 Baker Street offices now 84% pre-let, and 100% of the debt fixed or hedged, the earnings forecast is substantially de-risked in our view.
Leasing Progress
Leasing progress continues with £13.3m of lettings during the first nine months at an aggregate 8.5% premium to ERV.
Negative Factors
Stock Performance
Derwent's shares have sold-off markedly, down 17%, since mid-September.

Derwent London plc REIT (DLN) vs. S&P 500 (SPY)

Derwent London plc REIT Business Overview & Revenue Model

Company DescriptionDerwent London plc REIT (DLN) is a leading real estate investment trust specializing in the development, management, and investment of commercial properties, primarily in Central London. The company focuses on providing high-quality office spaces that cater to creative and innovative sectors, with a portfolio characterized by its sustainable and design-led properties.
How the Company Makes MoneyDerwent London plc generates revenue primarily through rental income from its extensive portfolio of commercial properties. The company focuses on acquiring, developing, and managing office buildings in prime Central London locations, attracting a diverse tenant base across various industries. Revenue is derived from long-term lease agreements, with rental income providing a consistent cash flow. Additionally, Derwent London plc benefits from property value appreciation, which can lead to capital gains upon the sale of assets. Strategic partnerships with architects, designers, and construction firms enhance the value of their developments, contributing to higher rental rates and occupancy levels. The company's emphasis on sustainability and innovative design also plays a crucial role in attracting premium tenants willing to pay higher rents for modern, environmentally responsible workspaces.

Derwent London plc REIT Financial Statement Overview

Summary
Income Statement
Balance Sheet
Cash Flow
Breakdown
TTMDec 2023Dec 2022Dec 2021Dec 2020Dec 2019
Income StatementTotal Revenue
278.40M267.80M249.00M240.30M266.90M227.60M
Gross Profit
201.60M195.30M192.50M188.00M196.60M179.20M
EBIT
67.50M-428.90M163.70M153.00M145.70M142.80M
EBITDA
153.40M-438.00M-242.40M277.10M-55.50M311.70M
Net Income Common Stockholders
-360.70M-476.40M-280.50M252.30M-77.60M283.40M
Balance SheetCash, Cash Equivalents and Short-Term Investments
73.00M73.00M76.60M105.50M50.70M54.50M
Total Assets
5.03B5.03B5.51B5.91B5.53B5.63B
Total Debt
1.37B1.37B1.28B1.32B1.10B1.04B
Net Debt
1.30B1.30B1.21B1.21B1.05B981.60M
Total Liabilities
1.52B1.52B1.43B1.47B1.22B1.16B
Stockholders Equity
3.51B3.51B4.08B4.44B4.26B4.42B
Cash FlowFree Cash Flow
96.10M96.30M109.40M127.30M85.40M127.10M
Operating Cash Flow
96.60M97.00M111.40M128.90M85.80M127.40M
Investing Cash Flow
-99.10M-98.00M-51.70M-240.00M-62.40M-74.60M
Financing Cash Flow
-12.70M-2.60M-88.60M128.10M-27.20M-16.60M

Derwent London plc REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
£8.53B14.115.18%4.64%-9.88%
GBDLN
69
Neutral
£2.03B17.453.29%4.44%3.73%
65
Neutral
£3.52B19.353.17%6.47%-30.83%
61
Neutral
$4.24B15.87-3.65%12.20%6.29%-21.37%
52
Neutral
£3.95B37.481.61%7.50%-1.73%
51
Neutral
£1.14B-2.09%6.56%6.08%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:DLN
Derwent London plc REIT
1,802.00
-183.08
-9.22%
GB:LAND
Land Securities Group plc REIT
533.00
-59.05
-9.97%
GB:HMSO
Hammerson plc R.E.I.T.
234.20
-21.96
-8.57%
GB:SGRO
Segro plc (REIT)
630.80
-193.36
-23.46%
GB:BLND
British Land Company plc
352.40
-6.20
-1.73%

Derwent London plc REIT Corporate Events

Delistings and Listing ChangesBusiness Operations and Strategy
Derwent London Announces Block Listing for 240,000 Shares
Positive
Apr 9, 2025

Derwent London plc has announced a block listing application for 240,000 ordinary shares to be admitted to the Official List, with the shares being reserved under the Performance Share Plan 2023. This move is expected to enhance the company’s capital structure and support its strategic initiatives, potentially impacting its market positioning and providing value to stakeholders.

Spark’s Take on GB:DLN Stock

According to Spark, TipRanks’ AI Analyst, GB:DLN is a Outperform.

Derwent London plc shows financial stability with strong gross profit margins and a healthy balance sheet, though it faces challenges in consistent income growth. The stock is currently trading below key moving averages, indicating a bearish sentiment, but the valuation is attractive with a solid dividend yield. Recent corporate events highlight strong rental growth and strategic developments, contributing positively to the outlook. Overall, the stock demonstrates a balanced mix of strengths and risks, resulting in a moderately positive score.

To see Spark’s full report on GB:DLN stock, click here.

Regulatory Filings and Compliance
Derwent London Announces Share Capital and Voting Rights Update
Neutral
Mar 31, 2025

Derwent London plc has announced that its issued share capital consists of 112,290,929 ordinary shares, each with voting rights, and the company holds no treasury shares. This information is crucial for shareholders to calculate their interests in compliance with the FCA’s Disclosure and Transparency Rules, impacting how they manage their investments in the company.

Business Operations and StrategyFinancial Disclosures
Derwent London to Release Q1 2025 Business Update
Neutral
Mar 31, 2025

Derwent London plc announced it will release its Q1 2025 Business Update on May 8, 2025. The company will not hold a webcast or conference call but will have management available for inquiries throughout the day. This update is part of Derwent London’s ongoing efforts to keep stakeholders informed about its operations and strategic direction, reflecting its strong market position and commitment to transparency.

Executive/Board ChangesBusiness Operations and StrategyRegulatory Filings and Compliance
Derwent London Announces Director Share Awards Under Bonus Plan
Neutral
Mar 26, 2025

Derwent London plc has announced changes to the interests of its directors in the company’s ordinary shares, as part of its Annual Bonus Plan. The plan involves deferring a portion of the 2024 annual bonus into shares, which will be released after three years, contingent on continued employment. This move aligns with Market Abuse Regulations and aims to incentivize and retain key personnel, potentially impacting the company’s operational stability and stakeholder confidence.

Executive/Board ChangesBusiness Operations and Strategy
Derwent London Grants Share-Based Awards to Directors
Neutral
Mar 4, 2025

Derwent London plc announced changes to the interests of its directors through the granting of share-based awards under the Derwent London Performance Share Plan 2014. These awards, structured as nil cost options, are set to vest in 2028 contingent upon meeting specific performance conditions by the end of 2027. This move is part of the company’s strategy to align management incentives with long-term performance goals, potentially impacting the company’s operational focus and stakeholder interests.

Regulatory Filings and Compliance
Derwent London Announces Current Share Capital and Voting Rights
Neutral
Feb 28, 2025

Derwent London plc announced its current issued share capital, consisting of 112,290,929 ordinary shares with voting rights, as part of its compliance with the Disclosure and Transparency Rule 5.6.1. This announcement is significant for shareholders as it provides the necessary information for them to assess their interests in the company, ensuring transparency and regulatory compliance.

Business Operations and StrategyFinancial Disclosures
Derwent London Reports Strong 2024 Results with Record Rental Growth
Positive
Feb 27, 2025

Derwent London plc reported strong financial results for the year ending December 2024, driven by significant rental growth and strategic portfolio reshaping. The company achieved a 4.3% increase in rental values, the highest since 2016, and a positive total return of 3.2%. Key developments included the acquisition of a joint venture partner’s stake at 50 Baker Street and full pre-letting of office space at 25 Baker Street. The company anticipates continued growth with a projected portfolio ERV increase of 3% to 6% in 2025, supported by its extensive development pipeline and London’s robust office demand.

Regulatory Filings and Compliance
Derwent London Announces Current Voting Rights and Share Capital
Neutral
Jan 31, 2025

Derwent London plc has announced that its issued share capital comprises 112,290,929 ordinary shares with voting rights, as of the current date. This information is crucial for shareholders to determine their notification obligations under the FCA’s Disclosure and Transparency Rules, indicating the company’s compliance with regulatory requirements and maintaining transparency with its stakeholders.

Business Operations and Strategy
Norges Bank Adjusts Holdings in Derwent London plc
Neutral
Jan 30, 2025

Norges Bank has adjusted its holdings in Derwent London plc, resulting in a decrease in voting rights from 6.693940% to 5.876160%. This change was triggered by an acquisition or disposal of shares, marking a slight shift in the bank’s influence within the company. Such adjustments could have implications for Derwent London’s shareholder dynamics and strategic decisions.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.