Derwent London PLC, a leading London-based real estate investment trust (REIT), reported its final results for the year ended December 31, 2025, highlighting improving business momentum and a positive outlook. The company achieved new lettings of £11.3 million, 10% <mark style="background-color:yellow">above</mark> estimated rental value (ERV), and a record year of asset management activity.
Key financial highlights include
Gross rental income increased by 1.6% to £218.3 million.
EPRA earnings per share (EPS) decreased by 7.6% to 98.4p, primarily due to mid-year refinancing.
Total accounting return (TAR) increased to 5.0%.
Net asset value (NAV) per share rose by 2.4% to 3,225p.
Derwent Londons portfolio ERV guidance was increased to 4-7% for 2026, reflecting strong occupational dynamics and a shortage of new office space in London. The company is targeting £1 billion in disposals over the next three years to redeploy capital into accretive opportunities, with a focus on development projects and acquisitions.
The companys development pipeline includes several major projects, such as Holden House W1, Greencoat & Gordon House SW1, and 50 Baker Street W1, which are expected to deliver attractive returns. Derwent London also formed a strategic partnership with Related Argent to develop the Old Street Quarter EC1, a significant long-term regeneration opportunity.
In terms of financial performance, Derwent Londons total property return outperformed the MSCI Central London Office Quarterly Index by 69 basis points. The companys EPRA NTA per share increased by 2.4%, resulting in a TAR of 5.0%.
Looking ahead, Derwent London forecasts 25-30% growth in EPRA earnings per share by 2030, driven by project completions, rental growth, and disciplined capital allocation. The company aims to deliver a TAR of 7-10% per annum over the coming years, assuming stable investment yields.
**Summary**
Derwent London PLC reported strong financial results for 2025, with increasing rental income, improving total accounting return, and a robust development pipeline. The company is well-positioned to benefit from the strengthening London office market, with a focus on capital recycling, development, and strategic partnerships to drive future growth.