olivLaw · European equity research
Derwent London plc DLN.L
United Kingdom · London Stock Exchange · Vertical: Listed companies from United Kingdom
Derwent London is a London-listed property company that owns, develops and refurbishes offices in central London, with an emphasis on well-located, amenity-rich buildings. In fiscal 2025 the company reported gross property and other income of £406.3m, including trading sales of apartments, while net rental income stayed broadly flat. Higher financing costs and asset sales are defining the company's current position.
At the close of 05 Nov 2026, Derwent London plc (DLN.L) stock was 19.50 GBP (+0.57% on the day), with market capitalisation 2.2 bn GBP, P/E 13.6 on diluted EPS of 1.44 GBP over the last 12 months, dividend yield 4.15%, beta 0.65, 52-week range 15.09–21.46 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 65.1
- strong (55–70)
- Bollinger (20, 2)
- 17.76 – 19.68
- in the upper half of the band · %B 0.90 · band width 10.3%
- SMA 50 / 200
- 18.62 / 18.46
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.25 / 0.13
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +8.6% | −0.6% | +9.3 pp | — |
| 3 months | −5.1% | −4.2% | −0.9 pp | — |
| 6 months | +10.8% | +4.3% | +6.5 pp | — |
| Year to date | +12.1% | +7.5% | +4.6 pp | — |
| 1 year | +11.0% | +9.9% | +1.1 pp | +6.7% |
| 3 years | −4.4% | +49.8% | −54.3 pp | +24.8% |
| 5 years | −42.8% | +42.8% | −85.6 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 50 percentile of its own 2-quarter history (min 12.1, median 15.6, max 19.0; quarters with earnings only).
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | unavailable | unavailable | unavailable |
| Revenue YoY | unavailable | unavailable | unavailable |
| Net income | -476.4 m | 115.9 m | 161.1 m |
| Net income YoY | unavailable | unavailable | +39.0% |
| Diluted EPS | -4.24 | 1.03 | 1.44 |
| Diluted EPS YoY | unavailable | unavailable | +39.4% |
| net % | unavailable | unavailable | unavailable |
| Free cash flow | 96.3 m | 63.0 m | 218.0 m |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 131.7 m GBP
- Financial debt
- 1.5 bn GBP
- Net debt
- 1.4 bn GBP
- Equity
- 3.6 bn GBP
- Total assets
- 5.3 bn GBP
- Debt / equity
- 0.41x
- Current ratio
- 0.53x
- ROE
- 4.5%
- ROA
- 3.1%
- FCF margin
- unavailable
Financial statements (source on every figure)
Revenue and net income (GBP)
Income statement · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating income | -428.9 m | 156.4 m | 210.5 m | esef· 15 Apr 2026verified |
| Interest expense | 40.4 m | 39.9 m | 50.5 m | esef· 15 Apr 2026verified |
| Pre-tax income | -475.9 m | 116.0 m | 161.5 m | esef· 15 Apr 2026verified |
| Income tax | 500.0 k | 100.0 k | 400.0 k | esef· 15 Apr 2026verified |
| Net income | -476.4 m | 115.9 m | 161.1 m | esef· 15 Apr 2026verified |
| Diluted EPS | -4.24 | 1.03 | 1.44 | esef· 15 Apr 2026verified |
| Dividend per share | 0.79 | 0.80 | 0.81 | esef· 15 Apr 2026derived |
Balance sheet · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 73.0 m | 71.4 m | 131.7 m | esef· 15 Apr 2026verified |
| Receivables | 42.7 m | 57.8 m | 46.7 m | esef· 15 Apr 2026verified |
| Current assets | 185.0 m | 263.4 m | 212.0 m | esef· 15 Apr 2026verified |
| Property, plant & equipment, net | 49.9 m | 52.0 m | 68.1 m | esef· 15 Apr 2026verified |
| Total assets | 5.0 bn | 5.2 bn | 5.3 bn | esef· 15 Apr 2026verified |
| Short-term debt | 102.9 m | 194.1 m | 231.6 m | esef· 15 Apr 2026verified |
| Long-term debt | 1.2 bn | 1.3 bn | 1.3 bn | esef· 15 Apr 2026verified |
| Current liabilities | 251.4 m | 369.4 m | 400.2 m | esef· 15 Apr 2026verified |
| Total liabilities | 1.5 bn | 1.7 bn | 1.7 bn | esef· 15 Apr 2026verified |
| Equity | 3.5 bn | 3.5 bn | 3.6 bn | esef· 15 Apr 2026verified |
| Shares outstanding at year end | 112.3 m | 112.3 m | 112.2 m | esef· 15 Apr 2026derived |
Cash flow · GBP
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 97.0 m | 64.6 m | 228.0 m | esef· 15 Apr 2026verified |
| Capex | 700.0 k | 1.6 m | 10.0 m | esef· 15 Apr 2026verified |
| Free cash flow | 96.3 m ≈ | 63.0 m ≈ | 218.0 m ≈ | esef· 15 Apr 2026derived |
| Investing cash flow | -98.0 m | -101.9 m | -96.7 m | esef· 15 Apr 2026verified |
| Financing cash flow | -2.6 m | 35.7 m | -71.0 m | esef· 15 Apr 2026verified |
| Dividends paid | 88.7 m | 89.6 m | 90.8 m | esef· 15 Apr 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 56.2% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 2.2 bn GBP
Key indicators
Coverage and freshness
Score by group
56% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 56.2% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 4.2% | 20 (vs peers) | 19% |
| Net margin · Quality | unavailable | unavailable | — |
| FCF conversion · Quality | 135.3% | 100 (on a fixed band) | 11% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 4.2x | 41 (on a fixed band) | 11% |
| Current ratio · Balance sheet | 0.5x | 0 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 13.6x | 68 (vs peers) | 19% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 10.0% | 100 (on a fixed band) | 15% |
| Shareholder yield (distributions) · Returns | 4.1% | 59 (on a fixed band) | 11% |
| Payout ratio (FCF) · Returns | 41.7% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet25/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality50/100 · 2/3 factors with a value
- Returns76/100 · 2/2 factors with a value
- Valuation82/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
DERWENT LONDON PLC (DLN.L). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: ROE 4.5%.
The estimated value range is 12.47–20.29 GBP per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 15.39 GBP, the price of 19.50 GBP leaves a potential of -21.1% (value / price − 1) and a margin of safety of -26.7% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 56.2% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 135.3%
- FCF yield: 10.0%
- Payout ratio (FCF): 41.7%
What contradicts it
- ROIC: 4.2%
- Current ratio: 0.5x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): Net margin, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 40 companies
Multiples and returns vs the median
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| BMS.LBraemar PLC | 78.3 m | 39.2 | 2.7% | 1.7% | −4.4% | +13% / −11% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for DLN.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Derwent London is a London-listed property company that owns, develops and refurbishes offices in central London, with an emphasis on well-located, amenity-rich buildings. In fiscal 2025 the company reported gross property and other income of £406.3m, including trading sales of apartments, while net rental income stayed broadly flat 1. Higher financing costs and asset sales are defining the company's current position 1.
SWOT
Strengths
- Well-located portfolio in central London with amenities valued by tenants.
- Like-for-like income growth and high rent collection rates, according to reporting.
- Long record of consecutive dividend increases supported by EPRA earnings.
Weaknesses
- High leverage and higher financing costs after refinancing.
- EPRA earnings per share fell in 2025 compared with the prior year.
- Reliance on asset sales to reduce debt and fund projects.
Opportunities
- Rent growth on refurbished buildings could support future income.
- The Lochfauld solar park could reduce the portfolio's energy costs.
- A return of investor appetite could enable larger sales in 2026.
Threats
- A high cost of capital could make some projects unviable.
- Energy efficiency regulation may require additional investment.
- Falling property values could affect the balance sheet and leverage metrics.
Risks
- High leveragehigh
The level of debt could limit financial flexibility if income falls or if interest rates stay high.
- Reliance on asset salesmedium
Debt reduction partly depends on planned sales; delays or lower prices could affect the plan.
- Cost of fundingmedium
Higher interest rates after refinancing reduced EPRA earnings and could continue to weigh on results.
- Project delayslow
Development and refurbishment projects could be postponed if capital costs rise or planning approvals are delayed.
- Property valuationsmedium
Changes in sector yields could lead to negative revaluations of the portfolio.
Investment thesis
What would need to be true (bull case)
- If demand for well-located central London space stays strong, rent growth could support income and earnings over the medium term.
- If planned sales are completed and interest rates ease, the company could reduce debt and increase its investment capacity.
- If refurbishment projects deliver the expected rents, future earnings could exceed current levels.
What would break the thesis
- If the cost of capital stays high, some projects could become hard to justify and earnings growth could slow.
- High leverage could limit the company's flexibility if income or property values decline.
- If asset sales are delayed or achieved at lower prices, the debt reduction plan could be affected.
What to watch
- Start-up of the Lochfauld solar park and its energy outputH1 2026
- Trend in EPRA earnings after interest cost effects and new rents2027
- Net debt/EBITDA and EPRA LTV after the planned disposalsnext annual report
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Derwent London owns, manages and develops a portfolio of office and commercial space concentrated in central London, with a fair value of the property portfolio of £5,093.9m at the end of 2025 1. The business model combines recurring rents with development and refurbishment, as well as asset sales that generate trading income. Disposals in 2025 totalled £216.1m, and the company says it is focusing capital on projects with strong returns 1. The company also runs a solar park in Scotland linked to its decarbonisation goals 1. The proposed total dividend for 2025 is 81.5 pence per share 1.
Rental activity is supported by a well-located portfolio where demand remains strong in a market with increasingly constrained supply. The company expects rents to keep outpacing costs for some time, which could support future income 1. Like-for-like gross rental income rose 2.4% in 2025, while net rental income stayed close to the prior year 1.
The funding structure carries significant leverage, with net debt/EBITDA of 9.0x and an EPRA LTV of 29.4% at the end of 2025 1. The company has announced further disposals in 2026 to reduce debt, which could shape its ability to fund new projects 1.
Segments
Central London offices and rentals
This segment generates the main recurring income, with net rental income of £190.0m in fiscal 2025 1. The company reported strong refurbishment results, such as at 1-2 Stephen Street, where expected rents are well above previous levels 1.
Market context
According to the company, the London office market appears to be improving, with sustained demand for well-located space and limited supply 1. The cost of capital in the sector rose in 2025, which raises the bar for investment and could make some projects harder to justify 1. Investors appear more receptive to transactions, and the company is targeting higher disposals in 2026 1.
The path of interest rates remains an important factor for the sector. The company expects its average spot interest rate to fall slightly during 2026 and then remain relatively stable until 2031, which could support property values 1.
Trends
- Strong demand for well-located spacetailwind
Buildings with good amenities in central areas appear to attract tenants, and limited supply could support rent growth 1.
- Higher cost of capitalheadwind
The rise in the sector's cost of capital makes property investment more demanding and may lead to deferral of some projects 1.
- Lower interest rates after refinancingmixed
The company expects average rates to fall slightly in 2026, which could reduce financing costs after the 2025 refinancing 1.
- Decarbonisation and energy rulesmixed
Energy efficiency legislation for buildings requires upgrade investment, but a portfolio already well rated could reduce the pressure 1.
Competitive position
Derwent London operates in the London office market, where it competes with other developers and property managers for tenants and quality assets. The company's advantage could come from its central locations and the quality of its amenities, though the analysed sources do not detail its competitors.
Competitive pressure may increase when new supply expands or when investors prefer other asset types. Competition for tenants and transactions could influence rent levels and sales.
- Other central London office developers
Firms competing for the same tenants in central London locations; not identified in the source.
- Commercial property managers
Managers and investors competing for quality assets and sale transactions.
- European property funds
Funds that may compete for the same assets and investors in the UK property sector.
- Mixed-use developers
Companies developing mixed-use schemes that may compete for sites and planning approvals in London.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202515 Apr 2026
- Annual report 202515 Apr 2026
- Annual report 202417 Apr 2025
- Annual report 202417 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / Derwent London plc · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.