SUMMARY
Q1 business update
- Statement brought forward from 7 May 2020
- New lettings of £2.1m on 52,700 sq ft in Q1 2020, 4.6% above December 2019 ERV
- Completed the sale of 40 Chancery Lane WC2 for £121.3m
- Completed the acquisition of Blue Star House, Brixton SW9 for £38.1m
- EPRA vacancy rate of 1.0%
- Robust finances:
- LTV of 16.2% with cash and undrawn facilities of £554m
- Rents and values could fall 70% and 71% respectively without breaching covenants
- Final dividend of 51.45p per share will be paid in cash on 5 June 2020
AGM
- AGM on 15 May 2020:
- Venue changed to 25 Savile Row W1 and to be held as a closed meeting
COVID-19 update
- At the moment, the health and wellbeing of our employees, occupiers and other stakeholders is our top priority
- All employees below the Board are on full salaries and benefits and none have been furloughed
- Increased support for our occupiers most in need and our communities
- 73% of March Quarter Day rents received, plus 6% now paying on a monthly basis and another 12% on agreed payment plans
- Developments:
- Construction temporarily paused at our three major sites
- Optionality over timing of future pipeline - ERV, property yield and EPRA earnings guidance withdrawn until greater visibility returns
Paul Williams, Chief Executive of Derwent London, said:
“Derwent London has always focused on outstanding quality, a long-term view and close relationships with occupiers, business partners and communities. At challenging times like this, they are as important as ever. Derwent London is well placed to meet its commitments to invest in its longer-term objectives and to balance its stakeholder responsibilities. After careful consideration, we believe it is appropriate we pay the final dividend. I am particularly grateful to the Derwent London team for their hard work and the way they are collaborating, both together and with others.”