Derwent London
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
| DLN | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.1% | 1.9% | 1.6% |
| 30 Day | 3.3% | 5.1% | 4.9% |
| 90 Day | 2.8% | 8.6% | 4.0% |
| 1 Year | 5.9%3.4% | 20.7%3.3% | 30.4%23.3% |
| 3 Year | 18.2%8.0% | 4.8%0.9% | 17.3%2.6% |
| 5 Year | 22.4%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
1 month ago | Simply Wall St
Have Insiders Been Selling Derwent London Plc (LON:DLN) Shares?3 months ago | Simply Wall St
Derwent London's (LON:DLN) Stock Price Has Reduced 22% In The Past Year4 months ago | Simply Wall St
The Founder & Non-Executive Chairman of Derwent London Plc (LON:DLN), John Burns, Just Sold 37% Of Their HoldingValuation
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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/16 19:02 |
| End of Day Share Price | 2021/04/16 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.