Company experiences pretax loss due to falling property values, but expects rental growth
- Derwent London reports widened pretax loss on lower property values
- Upgrades guidance for rental growth
- Pretax loss for 2023 was £475.9 million compared to £279.5 million the year before
- EPRA net tangible asset value fell to 3,129 pence a share
- Portfolio valued at £4.88 billion, down from £5.36 billion
- Full-year dividend raised by 1.3% to 79.5 pence a share
- Average estimated rental values expected to rise by 2%-5% in 2024
- Investment opportunities starting to emerge
- Shares up 1.9% at 1,951 pence
Derwent London reported a widened pretax loss for 2023, reaching £475.9 million compared to £279.5 million the previous year. This was primarily due to a fall in property values. However, the company upgraded its guidance for rental growth, with average estimated rental values expected to rise by 2%-5% in 2024. Despite macro uncertainty, Derwent London remains optimistic, stating that businesses are prioritizing quality, amenity, and sustainability, leading to good demand for the right product in the right location. The company also highlighted that investment opportunities are starting to emerge, and their balance sheet positions them well. The EPRA net tangible asset value fell to 3,129 pence a share, and the portfolio was valued at £4.88 billion, down from £5.36 billion. In a positive move, the full-year dividend was raised by 1.3% to 79.5 pence a share. As a result of these developments, shares of Derwent London are up 1.9% at 1,951 pence.
Factuality Level: 8
Factuality Justification: The article provides factual information about the financial performance of Derwent London, including details about pretax loss, income, EPRA net tangible asset value, dividend, and rental growth guidance. The article does not contain any obvious bias, misleading information, or sensationalism. It sticks to reporting the company’s financial results and statements made by the Chief Executive.
Noise Level: 3
Noise Justification: The article provides relevant information about the financial performance of Derwent London, including details about the pretax loss, income, net tangible asset value, and dividend. It also includes insights from the company’s CEO and updates on the company’s rental growth guidance. The article stays on topic and supports its claims with data and examples. However, it lacks in-depth analysis, accountability, and actionable insights, which prevents it from receiving a higher rating.
Financial Relevance: Yes
Financial Markets Impacted: Property investment and development companies
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article pertains to financial topics as it discusses the financial performance of Derwent London, a property investment and development company. However, there is no mention of any extreme event or its impact.
Public Companies: Derwent London (DLN)
Key People: Paul Williams (Chief Executive)
Reported publicly:
www.marketwatch.com 
