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DLN

Derwent LondonLSE:DLN Stock Report

Last Price

UK£34.47

Market Cap

UK£3.9b

7D

1.7%

1Y

5.5%

Updated

16 Jan, 2022

Data

Company Financials +
DLN fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health4/6
Dividends4/6

DLN Stock Overview

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).

Derwent London Competitors

Great Portland Estates

LSE:GPOR

UK£1.9b

Workspace Group

LSE:WKP

UK£1.5b

Regional REIT

LSE:RGL

UK£475.0m

McKay Securities

LSE:MCKS

UK£207.9m

Price History & Performance

Summary of all time highs, changes and price drops for Derwent London
Historical stock prices
Current Share PriceUK£34.47
52 Week HighUK£38.50
52 Week LowUK£30.62
Beta0.54
1 Month Change3.39%
3 Month Change0.85%
1 Year Change5.48%
3 Year Change15.28%
5 Year Change39.16%
Change since IPO1,320.25%

Recent News & Updates

Shareholder Returns

DLNGB REITsGB Market
7D1.7%-1.1%-0.5%
1Y5.5%21.7%8.7%

Return vs Industry: DLN underperformed the UK REITs industry which returned 21.7% over the past year.

Return vs Market: DLN underperformed the UK Market which returned 8.7% over the past year.

Price Volatility

Is DLN's price volatile compared to industry and market?
DLN volatility
DLN Average Weekly Movement2.0%
REITs Industry Average Movement2.6%
Market Average Movement5.0%
10% most volatile stocks in GB Market10.5%
10% least volatile stocks in GB Market2.4%

Stable Share Price: DLN is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: DLN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a154Paul Williamshttps://www.derwentlondon.com

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). 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.

Derwent London Fundamentals Summary

How do Derwent London's earnings and revenue compare to its market cap?
DLN fundamental statistics
Market CapUK£3.87b
Earnings (TTM)UK£52.10m
Revenue (TTM)UK£269.80m

74.2x

P/E Ratio

14.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
DLN income statement (TTM)
RevenueUK£269.80m
Cost of RevenueUK£69.20m
Gross ProfitUK£200.60m
ExpensesUK£148.50m
EarningsUK£52.10m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

Feb 24, 2022

Earnings per share (EPS)0.46
Gross Margin74.35%
Net Profit Margin19.31%
Debt/Equity Ratio22.7%

How did DLN perform over the long term?

See historical performance and comparison

Dividends

2.2%

Current Dividend Yield

78%

Payout Ratio

Valuation

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

74.24x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: DLN (£34.47) is trading above our estimate of fair value (£29.37)

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


Price To Earnings Ratio

PE vs Industry: DLN is poor value based on its PE Ratio (74.2x) compared to the UK REITs industry average (13.1x).

PE vs Market: DLN is poor value based on its PE Ratio (74.2x) compared to the UK market (19.5x).


Price to Earnings Growth Ratio

PEG Ratio: DLN is poor value based on its PEG Ratio (7.8x)


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 10 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DLN's forecast earnings growth (9.5% per year) is above the savings rate (0.9%).

Earnings vs Market: DLN's earnings (9.5% per year) are forecast to grow slower than the UK market (12.1% per year).

High Growth Earnings: DLN's earnings are forecast to grow, but not significantly.

Revenue vs Market: DLN's revenue (5.4% per year) is forecast to grow faster than the UK market (4.8% per year).

High Growth Revenue: DLN's revenue (5.4% 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 (3.2%).


Past Performance

How has Derwent London performed over the past 5 years?

-22.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: DLN has a large one-off loss of £67.3M impacting its June 30 2021 financial results.

Growing Profit Margin: DLN's current net profit margins (19.3%) are lower than last year (59.5%).


Past Earnings Growth Analysis

Earnings Trend: DLN's earnings have declined by 22.2% per year over the past 5 years.

Accelerating Growth: DLN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: DLN had negative earnings growth (-63.3%) over the past year, making it difficult to compare to the REITs industry average (150.1%).


Return on Equity

High ROE: DLN's Return on Equity (1.2%) is considered low.


Financial Health

How is Derwent London's financial position?


Financial Position Analysis

Short Term Liabilities: DLN's short term assets (£307.8M) exceed its short term liabilities (£136.4M).

Long Term Liabilities: DLN's short term assets (£307.8M) do not cover its long term liabilities (£1.1B).


Debt to Equity History and Analysis

Debt Level: DLN's net debt to equity ratio (21.3%) is considered satisfactory.

Reducing Debt: DLN's debt to equity ratio has reduced from 25.3% to 22.7% over the past 5 years.

Debt Coverage: DLN's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: DLN's interest payments on its debt are well covered by EBIT (5.4x coverage).


Balance Sheet


Dividend

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

2.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: DLN's dividend (2.19%) is higher than the bottom 25% of dividend payers in the UK market (1.39%).

High Dividend: DLN's dividend (2.19%) is low compared to the top 25% of dividend payers in the UK market (4.05%).


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 (77.9%), 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 (58.9% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Paul Williams (60 yo)

2.67yrs

Tenure

UK£2,130,000

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 Property Director of Derwent...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.91M) is about average for companies of similar size in the UK market ($USD2.26M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: DLN's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: DLN's board of directors are considered experienced (6.5 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Derwent London Plc's 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
  • Implied Market Cap: UK£3.868b
  • Shares outstanding: 112.21m
  • Website: https://www.derwentlondon.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/16 18:47
End of Day Share Price2022/01/14 00:00
Earnings2021/06/30
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.