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Derwent London

LSE:DLN
Snowflake Description

Mediocre balance sheet second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
DLN
LSE
£4B
Market Cap
  1. Home
  2. GB
  3. Real Estate
Company description

Derwent London plc owns 86 buildings in a commercial real estate portfolio predominantly in central London valued at £5.2 billion (including joint ventures) as at 31 December 2018, making it the largest London-focused real estate investment trust (REIT). The last earnings update was 62 days ago. More info.


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DLN Share Price and Events
7 Day Returns
-1.3%
LSE:DLN
-0.1%
GB REITs
0.4%
GB Market
1 Year Returns
4.6%
LSE:DLN
-9%
GB REITs
-3.7%
GB Market
DLN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Derwent London (DLN) -1.3% -3.5% -2.3% 4.6% 3.3% 23.1%
GB REITs -0.1% -2.8% -3.7% -9% -3.9% 7.1%
GB Market 0.4% 0.3% 1.6% -3.7% 19% 3.4%
1 Year Return vs Industry and Market
  • DLN outperformed the REITs industry which returned -9% over the past year.
  • DLN outperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -3.7% over the past year.
Price Volatility
DLN
Industry
5yr Volatility vs Market

DLN Value

 Is Derwent London undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Derwent London to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Derwent London.

LSE:DLN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.5%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:DLN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.493 (1 + (1- 19%) (27.36%))
0.734
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (0.8 * 6.65%)
6.55%

Discounted Cash Flow Calculation for LSE:DLN using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Derwent London is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Derwent London is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

LSE:DLN DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (GBP, Millions) Source Present Value
Discounted (@ 6.55%)
2019 100.40 Analyst x1 94.23
2020 114.40 Analyst x1 100.77
2021 121.10 Analyst x1 100.12
2022 123.13 Est @ 1.67% 95.54
2023 125.02 Est @ 1.54% 91.05
2024 126.83 Est @ 1.45% 86.69
2025 128.58 Est @ 1.38% 82.49
2026 130.30 Est @ 1.33% 78.45
2027 132.00 Est @ 1.3% 74.59
2028 133.69 Est @ 1.28% 70.90
Present value of next 10 years cash flows £874.85
LSE:DLN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £133.69 × (1 + 1.23%) ÷ (6.55% – 1.23%)
£2,543.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £2,543.72 ÷ (1 + 6.55%)10
£1,349.14
LSE:DLN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £874.85 + £1,349.14
£2,223.99
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £2,223.99 / 111.66
£19.92
LSE:DLN Discount to Share Price
Calculation Result
Value per share (GBP) From above. £19.92
Current discount Discount to share price of £32.04
= -1 x (£32.04 - £19.92) / £19.92
-60.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Derwent London is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Derwent London's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Derwent London's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:DLN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £1.99
LSE:DLN Share Price ** LSE (2019-06-14) in GBP £32.04
United Kingdom of Great Britain and Northern Ireland REITs Industry PE Ratio Median Figure of 43 Publicly-Listed REITs Companies 12.74x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 789 Publicly-Listed Companies 16.17x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Derwent London.

LSE:DLN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:DLN Share Price ÷ EPS (both in GBP)

= 32.04 ÷ 1.99

16.07x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Derwent London is overvalued based on earnings compared to the GB REITs industry average.
  • Derwent London is good value based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.
Price based on expected Growth
Does Derwent London's expected growth come at a high price?
Raw Data
LSE:DLN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.07x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
12.5%per year
United Kingdom of Great Britain and Northern Ireland REITs Industry PEG Ratio Median Figure of 23 Publicly-Listed REITs Companies 0.85x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 576 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

LSE:DLN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.07x ÷ 12.5%

1.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Derwent London is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Derwent London's assets?
Raw Data
LSE:DLN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £37.67
LSE:DLN Share Price * LSE (2019-06-14) in GBP £32.04
United Kingdom of Great Britain and Northern Ireland REITs Industry PB Ratio Median Figure of 54 Publicly-Listed REITs Companies 0.9x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,371 Publicly-Listed Companies 1.48x
LSE:DLN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:DLN Share Price ÷ Book Value per Share (both in GBP)

= 32.04 ÷ 37.67

0.85x

* Primary Listing of Derwent London.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Derwent London is good value based on assets compared to the GB REITs industry average.
X
Value checks
We assess Derwent London's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. Derwent London has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

DLN Future Performance

 How is Derwent London expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
12.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Derwent London expected to grow at an attractive rate?
  • Derwent London's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Derwent London's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Derwent London's revenue growth is positive but not above the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:DLN Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:DLN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 12.5%
LSE:DLN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 2.8%
United Kingdom of Great Britain and Northern Ireland REITs Industry Earnings Growth Rate Market Cap Weighted Average 16.2%
United Kingdom of Great Britain and Northern Ireland REITs Industry Revenue Growth Rate Market Cap Weighted Average 2.6%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.7%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:DLN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:DLN Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 243 1
2022-12-31 244 399 3
2021-12-31 236 150 296 7
2020-12-31 223 139 282 8
2019-12-31 195 130 210 7
LSE:DLN Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 229 115 222
2018-09-30 228 117 262
2018-06-30 227 118 302
2018-03-31 215 101 308
2017-12-31 204 84 314
2017-09-30 198 84 210
2017-06-30 192 85 107
2017-03-31 193 82 83
2016-12-31 194 78 59
2016-09-30 204 74 263
2016-06-30 215 71 468
2016-03-31 208 74 617

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Derwent London's earnings are expected to grow by 12.5% yearly, however this is not considered high growth (20% yearly).
  • Derwent London's revenue is expected to grow by 2.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:DLN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Derwent London Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DLN Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31 3.57 3.57 3.57 1.00
2021-12-31 2.64 3.03 2.07 3.00
2020-12-31 2.53 2.74 2.31 3.00
2019-12-31 2.03 2.43 1.35 3.00
LSE:DLN Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 1.99
2018-09-30 2.35
2018-06-30 2.71
2018-03-31 2.76
2017-12-31 2.82
2017-09-30 1.89
2017-06-30 0.96
2017-03-31 0.74
2016-12-31 0.53
2016-09-30 2.36
2016-06-30 4.20
2016-03-31 5.57

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Derwent London is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Derwent London's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Derwent London has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

DLN Past Performance

  How has Derwent London performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Derwent London's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Derwent London's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • Derwent London's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Derwent London's 1-year earnings growth is negative, it can't be compared to the GB REITs industry average.
Earnings and Revenue History
Derwent London's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Derwent London Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:DLN Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 228.90 222.30 32.30
2018-09-30 227.85 261.95 31.45
2018-06-30 226.80 301.60 30.60
2018-03-31 215.25 307.80 29.40
2017-12-31 203.70 314.00 28.20
2017-09-30 197.95 210.30 28.30
2017-06-30 192.20 106.60 28.40
2017-03-31 193.20 82.65 29.65
2016-12-31 194.20 58.70 30.90
2016-09-30 204.40 263.10 30.70
2016-06-30 214.60 467.50 30.50
2016-03-31 208.40 616.85 30.25
2015-12-31 202.20 766.20 30.00
2015-09-30 194.45 768.05 30.00
2015-06-30 186.70 769.90 30.00
2015-03-31 183.10 753.80 29.20
2014-12-31 179.50 737.70 28.40
2014-09-30 172.20 672.30 28.15
2014-06-30 164.90 606.90 27.90
2014-03-31 163.25 531.75 27.30
2013-12-31 161.60 456.60 26.70
2013-09-30 158.45 398.70 25.85
2013-06-30 155.30 340.80 25.00
2013-03-31 153.35 283.85 25.00
2012-12-31 151.40 226.90 25.00
2012-09-30 157.15 193.35 24.20
2012-06-30 162.90 159.80 23.40

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Derwent London has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Derwent London used its assets less efficiently than the GB REITs industry average last year based on Return on Assets.
  • Derwent London has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Derwent London's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Derwent London has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

DLN Health

 How is Derwent London's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Derwent London's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Derwent London's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Derwent London's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Derwent London's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Derwent London Company Filings, last reported 5 months ago.

LSE:DLN Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 4,263.40 978.80 18.30
2018-09-30 4,263.40 978.80 18.30
2018-06-30 4,197.10 847.60 21.40
2018-03-31 4,197.10 847.60 21.40
2017-12-31 4,193.20 752.80 87.00
2017-09-30 4,193.20 752.80 87.00
2017-06-30 4,043.00 847.50 102.80
2017-03-31 4,043.00 847.50 102.80
2016-12-31 3,999.40 939.80 17.70
2016-09-30 3,999.40 939.80 17.70
2016-06-30 4,062.30 1,051.70 12.70
2016-03-31 4,062.30 1,051.70 12.70
2015-12-31 3,995.40 935.80 6.50
2015-09-30 3,995.40 935.80 6.50
2015-06-30 3,630.90 908.10 11.70
2015-03-31 3,630.90 908.10 11.70
2014-12-31 3,075.70 1,053.30 14.80
2014-09-30 3,075.70 1,053.30 14.80
2014-06-30 2,719.10 998.70 8.70
2014-03-31 2,719.10 998.70 8.70
2013-12-31 2,370.50 977.60 12.50
2013-09-30 2,370.50 977.60 12.50
2013-06-30 2,118.20 978.50 5.50
2013-03-31 2,118.20 978.50 5.50
2012-12-31 1,918.00 933.50 4.40
2012-09-30 1,918.00 933.50 4.40
2012-06-30 1,792.90 923.90 2.90
  • Derwent London's level of debt (23%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (41.2% vs 23% today).
  • Debt is not well covered by operating cash flow (11.8%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
X
Financial health checks
We assess Derwent London's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Derwent London has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

DLN Dividends

 What is Derwent London's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.06%
Current annual income from Derwent London dividends. Estimated to be 2.49% next year.
If you bought £2,000 of Derwent London shares you are expected to receive £41 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Derwent London's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.97%).
  • Derwent London's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.43%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:DLN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland REITs Industry Average Dividend Yield Market Cap Weighted Average of 49 Stocks 4.4%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 705 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1.1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 2%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:DLN Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.92 1.00
2022-12-31 0.89 3.00
2021-12-31 0.87 14.00
2020-12-31 0.79 17.00
2019-12-31 0.72 16.00
LSE:DLN Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-05-09 0.659 2.027
2018-08-09 1.365 4.483
2018-04-18 1.347 4.377
2018-02-27 1.347 4.408
2017-02-28 0.524 1.863
2016-04-22 0.434 1.605
2015-08-13 0.406 1.183
2015-05-18 0.397 1.112
2014-05-08 0.365 1.229
2013-02-28 0.337 1.379
2012-04-18 0.627 3.187
2012-03-01 0.314 1.798
2011-03-11 0.290 1.741
2011-03-10 0.290 1.715
2010-08-25 0.276 1.800
2010-04-22 0.270 2.012
2010-03-17 0.270 1.952

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Derwent London has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Derwent London only paid a dividend in the past 9 years.
Current Payout to shareholders
What portion of Derwent London's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.4x coverage).
X
Income/ dividend checks
We assess Derwent London's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Derwent London afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Derwent London has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

DLN Management

 What is the CEO of Derwent London's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Paul Williams
COMPENSATION £1,375,000
AGE 57
TENURE AS CEO 0.1 years
CEO Bio

Mr. Paul Malcolm Williams serves as a Chief Executive Officer of Derwent London Plc since May 17, 2019 and served as a Propery Director until May 17, 2019. He serves as Executive Director at Derwent London Plc since 1998. Mr. Williams responsibilities include asset management and supervision of refurbishment and development projects. He serves as a Director of Derwent London Capital (Jersey) Limited and Derwent London Capital No 2 (Jersey) Ltd. He is a chartered surveyor.

CEO Compensation
  • Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Paul's remuneration is lower than average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Derwent London management team in years:

7.4
Average Tenure
56
Average Age
  • The average tenure for the Derwent London management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Paul Williams

TITLE
CEO & Director
COMPENSATION
£1M
AGE
57
TENURE
0.1 yrs

Damian Mark Wisniewski

TITLE
Finance Director & Executive Director
COMPENSATION
£1M
AGE
56
TENURE
9.3 yrs

Nigel George

TITLE
Property Director & Executive Director
COMPENSATION
£1M
AGE
55

Simon Silver

TITLE
Property Director & Executive Director
COMPENSATION
£2M
AGE
67

David Silverman

TITLE
Property Director & Executive Director
COMPENSATION
£1M
AGE
48

Giles Sheehan

TITLE
Head of Investment

Freeman Quentin

TITLE
Head of Investor Relations & Corporate Communications

Katy Levine

TITLE
Head of Human Resources

Richard Baldwin

TITLE
Head of Development
TENURE
8.4 yrs

John Davies

TITLE
Head of Sustainability
TENURE
6.4 yrs
Board of Directors Tenure

Average tenure and age of the Derwent London board of directors in years:

9.3
Average Tenure
54.5
Average Age
  • The tenure for the Derwent London board of directors is about average.
Board of Directors

John Burns

TITLE
Founder & Non-Executive Chairman
COMPENSATION
£2M
AGE
73
TENURE
0.1 yrs

Paul Williams

TITLE
CEO & Director
COMPENSATION
£1M
AGE
57
TENURE
21.4 yrs

Damian Mark Wisniewski

TITLE
Finance Director & Executive Director
COMPENSATION
£1M
AGE
56
TENURE
9.3 yrs

Nigel George

TITLE
Property Director & Executive Director
COMPENSATION
£1M
AGE
55
TENURE
21.4 yrs

Simon Silver

TITLE
Property Director & Executive Director
COMPENSATION
£2M
AGE
67
TENURE
33.4 yrs

David Silverman

TITLE
Property Director & Executive Director
COMPENSATION
£1M
AGE
48
TENURE
11.4 yrs

Simon William Fraser

TITLE
Senior Independent Director
COMPENSATION
£68K
AGE
54

Richard D. Dakin

TITLE
Independent Non-Executive Director
COMPENSATION
£62K
AGE
54
TENURE
5.8 yrs

Claudia Arney

TITLE
Non-Executive Director
COMPENSATION
£58K
AGE
47
TENURE
4.1 yrs

Lucinda Bell

TITLE
Non-Executive Director
AGE
53
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
12. Mar 19 Sell Simon Silver Individual 11. Mar 19 11. Mar 19 -25,000 £32.57 £-814,250
X
Management checks
We assess Derwent London's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Derwent London has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

DLN News

Simply Wall St News

Investing In Property Through Derwent London Plc (LON:DLN)

Derwent London Plc is a UK£3.6b mid-cap, real estate investment trust (REIT) based in London, United Kingdom. … Take a look at our free research report of analyst consensus for DLN’s outlook. … The intrinsic value infographic in our free research report helps visualize whether DLN is currently mispriced by the market.

Simply Wall St -

Should You Be Worried About Derwent London Plc's (LON:DLN) 5.1% Return On Equity?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Derwent London: 5.1% = UK£222m ÷ UK£4.3b (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Does Derwent London Have A Good Return On Equity? … Derwent London's Debt And Its 5.1% ROE While Derwent London does have some debt, with debt to equity of just 0.23, we wouldn't say debt is excessive.

Simply Wall St -

Something To Consider Before Buying Derwent London Plc (LON:DLN) For The 2.0% Dividend

Could Derwent London Plc (LON:DLN) be an attractive dividend share to own for the long haul? Investors are often drawn to strong companies with the idea of reinvesting the dividends. On the other hand, investors have been known to buy a stock because of its yield, and then lose money if the company's dividend doesn't live up to expectations. Investors might not know much about Derwent London's dividend prospects, even though it has been paying dividends for the last nine years and offers a 2.0% yield. A 2.0% yield is not inspiring, but the longer payment history has some appeal. When buying stocks for their dividends, you should always run through the checks below, to see if the dividend looks sustainable. Click the interactive chart for our full dividend analysis LSE:DLN Historical Dividend Yield, May 15th 2019 Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card! Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. As a result, we should always investigate whether a company can afford its dividend, measured as a percentage of a company's net income after tax. In the last year, Derwent London paid out 59% of its profit as dividends. This is a healthy payout ratio, and while it does limit the amount of earnings that can be reinvested in the business, there is also some room to lift the payout ratio over time. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Derwent London paid out 59% of its free cash flow last year, which is acceptable, but is starting to limit the amount of earnings that can be reinvested into the business. REITs like Derwent London often have different rules governing their distributions, so a higher payout ratio on its own is not unusual. Is Derwent London's Balance Sheet Risky? As Derwent London has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Dividend Growth Potential With a relatively unstable dividend, it's even more important to see if earnings per share (EPS) are growing. Why take the risk of a dividend getting cut, unless there's a good chance of bigger dividends in future? Over the past five years, it looks as though Derwent London's EPS have declined at around 15% a year. Declining earnings per share over a number of years is not a great sign for the dividend investor. Without some improvement, this does not bode well for the long term value of a company's dividend. Conclusion Dividend investors should always want to know if a) a company's dividends are affordable, b) if there is a track record of consistent payments, and c) if the dividend is capable of growing. … Derwent London's is paying out more than half its income as dividends, but at least the dividend is covered both by reported earnings and cashflow.

Simply Wall St -

Does Derwent London Plc's (LON:DLN) Stock Price Account For Its Growth?

Derwent London Plc (LON:DLN) closed yesterday at £31.72, which left some investors asking whether the high earnings potential can still be justified at this price. … Let’s take a look at some key metrics to determine whether there's any value here for current and potential future investors. … See our latest analysis for Derwent London?

Simply Wall St -

How Much Are Derwent London Plc (LON:DLN) Insiders Taking Off The Table?

So shareholders might well want to know whether insiders have been buying or selling shares in Derwent London Plc (LON:DLN). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price

Simply Wall St -

How Should Investors React To Derwent London Plc's (LON:DLN) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does John Burns's Compensation Compare With Similar Sized Companies. … Our data indicates that Derwent London Plc is worth UK£3.6b, and total annual CEO compensation is UK£1.7m.

Simply Wall St -

Should Derwent London (LON:DLN) Be Disappointed With Their 23% Profit?

For example, long term Derwent London Plc (LON:DLN) shareholders have enjoyed a 23% share price rise over the last half decade, well in excess of the market return of around 3.1% (not including dividends). … During five years of share price growth, Derwent London actually saw its EPS drop 15% per year. … In that case, the company may be sacrificing current earnings per share to drive growth.

Simply Wall St -

How Do Analysts See Derwent London Plc (LON:DLN) Performing In The Years Ahead?

In December 2018, Derwent London Plc (LON:DLN) released its latest earnings announcement, whicha … confirmed

Simply Wall St -

Is Derwent London Plc's (LON:DLN) 7.2% ROE Strong Compared To Its Industry?

To keep the lesson grounded in practicality, we'll use ROE to better understand Derwent London Plc (LON:DLN). … Another way to think of that is that for every £1 worth of equity in the company, it was able to earn £0.072. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Have Insiders Been Selling Derwent London Plc (LON:DLN) Shares?

So before you buy or sell Derwent London Plc (LON:DLN), you may well want to know whether insiders have been buying or selling. … That means that an insider was selling shares at around the current price of UK£28.04. … We generally tread carefully if insiders have been selling on market, even if they sold slightly above the current price

Simply Wall St -

DLN Company Info

Description

Derwent London plc owns 86 buildings in a commercial real estate portfolio predominantly in central London valued at £5.2 billion (including joint ventures) as at 31 December 2018, making it the largest London-focused real estate investment trust (REIT). Our experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling. We typically acquire central London properties off-market with low capital values and modest rents in improving locations, most of which are either in the West End or the Tech Belt. We capitalise on the unique qualities of each of our properties – taking a fresh approach to the regeneration of every building with a focus on anticipating tenant requirements and an emphasis on design. Reflecting and supporting our long-term success, the business has a strong balance sheet with modest leverage, a robust income stream and flexible financing. Landmark schemes in our 5.4 million sq ft portfolio include White Collar Factory EC1, Angel Building EC1, The Buckley Building EC1, 1-2 Stephen Street W1, Horseferry House SW1 and Tea Building E1. In 2018 the Group won Property Week Property Company of the Year and EG Offices Company of the Year, whilst White Collar Factory scooped RIBA National and London awards, RICS National and London awards, two BCO awards for Commercial Workplace and Innovation, an EG Creative Places award and an NLA Wellbeing award. 25 Savile Row also won RIBA National and London awards and SKA Gold for the fit-out. In 2017 the Group collected the Property Week Developer of the Year award and EG Offices Company of the Year and won further awards from RIBA, Civic Trust and BCO. In 2013 Derwent London launched a voluntary Community Fund and has to date supported 70 community projects in Fitzrovia and the Tech Belt. The Company is a public limited company, which is listed on the London Stock Exchange and incorporated and domiciled in the UK. The address of its registered office is 25 Savile Row, London, W1S 2ER.

Details
Name: Derwent London Plc
DLN
Exchange: LSE
Founded:
£3,577,559,646
111,659,165
Website: http://www.derwentlondon.com
Address: Derwent London Plc
25 Savile Row,
London,
East Lothian, W1S 2ER,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE DLN Ordinary Shares London Stock Exchange GB GBP 02. Jan 1992
OTCPK DWVY.F Ordinary Shares Pink Sheets LLC US USD 02. Jan 1992
DB DVK Ordinary Shares Deutsche Boerse AG DE EUR 02. Jan 1992
BATS-CHIXE DLNL Ordinary Shares BATS 'Chi-X Europe' GB GBP 02. Jan 1992
Number of employees
Current staff
Staff numbers
124
Derwent London employees.
Industry
Office REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/16 20:39
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/03
Last earnings filing: 2019/04/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.