The commercial property owner expects the London office vacancy rate rise due to higher unemployment and business closures, although its lower-rise space, located in the West End and Tech Belt mixed-use locations “will be relatively resilient”.
“Recent events have highlighted the importance of offices for enhancing collaboration, social interaction and wellbeing to build business culture and attract and develop talent,” said chief executive Paul Williams.
“Derwent London‘s design-led and adaptable space will support our occupiers returning to their offices, an essential part of getting London back to full strength.”
Next year, the FTSE 250 developer will start work on a Baker Street building, ready for 2025, while The Featherstone Building is scheduled for delivery in 2022.
Gross rental income rose 5% to £97mln in the six months to June 30, with net tangible assets per share down 1.5% to 3,900p..
Earnings per share dipped 5% to 48.9p after £6.5mln of costs linked to COVID-19.
Analysts at Peel Hunt said the set of results was more robust than expected and are eyeing a 4% increase in net asset value over the full year to 3,790p.
In a separate announcement, Derwent said Simon Silver, executive director and co-founder, is looking to retire from the board from February 2021. He will continue to support the business as a consultant until December 2022.
Shares rose 1% to 2,984p on Tuesday at the opening bell.
Published at Tue, 11 Aug 2020 07:23:00 +0000-Derwent London raises interim dividend, expects office demand to be resilient