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Market Cap

UK£3.8b

Last Updated

2021/04/16 19:02 UTC

Data Sources

Company Financials +

Executive Summary

Derwent London plc owns 83 buildings in a commercial real estate portfolio predominantly in central London valued at £5.4 billion (including joint ventures) as at 30 June 2020, making it the largest London-focused real estate investment trust (REIT). More Details


Snowflake Analysis

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has Derwent London's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: DLN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: DLN's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

1.1%

DLN

1.9%

GB REITs

1.6%

GB Market


1 Year Return

3.4%

DLN

3.3%

GB REITs

23.3%

GB Market

Return vs Industry: DLN matched the UK REITs industry which returned 3.3% over the past year.

Return vs Market: DLN underperformed the UK Market which returned 23.3% over the past year.


Shareholder returns

DLNIndustryMarket
7 Day1.1%1.9%1.6%
30 Day3.3%5.1%4.9%
90 Day2.8%8.6%4.0%
1 Year5.9%3.4%20.7%3.3%30.4%23.3%
3 Year18.2%8.0%4.8%0.9%17.3%2.6%
5 Year22.4%6.2%20.4%7.3%48.5%19.8%

Long-Term Price Volatility Vs. Market

How volatile is Derwent London's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Derwent London undervalued compared to its fair value and its price relative to the market?

0.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: DLN (£33.6) is trading above our estimate of fair value (£16.03)

Significantly Below Fair Value: DLN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: DLN is unprofitable, so we can't compare its PE Ratio to the GB REITs industry average.

PE vs Market: DLN is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate DLN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: DLN's PB Ratio (0.9x) is in line with the GB REITs industry average.


Future Growth

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

52.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: DLN is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: DLN's is expected to become profitable in the next 3 years.

Revenue vs Market: DLN's revenue (1.1% per year) is forecast to grow slower than the UK market (5.8% per year).

High Growth Revenue: DLN's revenue (1.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: DLN's Return on Equity is forecast to be low in 3 years time (3.4%).


Past Performance

How has Derwent London performed over the past 5 years?

-28.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLN is currently unprofitable.

Growing Profit Margin: DLN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: DLN is unprofitable, and losses have increased over the past 5 years at a rate of 28.6% per year.

Accelerating Growth: Unable to compare DLN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: DLN is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (6.7%).


Return on Equity

High ROE: DLN has a negative Return on Equity (-1.89%), as it is currently unprofitable.


Financial Health

How is Derwent London's financial position?


Financial Position Analysis

Short Term Liabilities: DLN's short term assets (£304.8M) exceed its short term liabilities (£107.8M).

Long Term Liabilities: DLN's short term assets (£304.8M) do not cover its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: DLN's debt to equity ratio (24.1%) is considered satisfactory.

Reducing Debt: DLN's debt to equity ratio has increased from 22.9% to 24.1% over the past 5 years.

Debt Coverage: DLN's debt is not well covered by operating cash flow (8.2%).

Interest Coverage: DLN is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Dividend

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

2.22%

Current Dividend Yield


Upcoming Dividend Payment

TodayApr 17 2021Ex Dividend DateApr 29 2021Dividend Pay DateJun 04 202136 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: DLN's dividend (2.22%) is higher than the bottom 25% of dividend payers in the UK market (1.35%).

High Dividend: DLN's dividend (2.22%) is low compared to the top 25% of dividend payers in the UK market (4.13%).


Stability and Growth of Payments

Stable Dividend: DLN's dividend payments have been volatile in the past 10 years.

Growing Dividend: DLN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (95.8%), DLN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DLN's dividends in 3 years are forecast to be covered by earnings (89.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Paul Williams (59 yo)

1.92yrs

Tenure

UK£2,293,000

Compensation

Mr. Paul Malcolm Williams has been the Chief Executive Officer of Derwent London Plc since May 17, 2019 and has been its Executive Director since 1998. Mr. Williams served as a Propery Director of Derwent ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD3.16M) is above average for companies of similar size in the UK market ($USD2.29M).

Compensation vs Earnings: Paul's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: DLN's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: DLN's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Derwent London Plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Derwent London Plc
  • Ticker: DLN
  • Exchange: LSE
  • Founded: NaN
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: UK£3.760b
  • Shares outstanding: 112.15m
  • Website: https://www.derwentlondon.com

Number of Employees


Location

  • Derwent London Plc
  • 25 Savile Row
  • London
  • East Lothian
  • W1S 2ER
  • United Kingdom

Listings


Biography

Derwent London plc owns 83 buildings in a commercial real estate portfolio predominantly in central London valued at £5.4 billion (including joint ventures) as at 30 June 2020, making it the largest London...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/16 19:02
End of Day Share Price2021/04/16 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.