Derwent London
Market Cap
UK£3.1b
Last Updated
2020/10/24 21:48 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
Rewards
Risk Analysis
Snowflake Analysis
Reasonable growth potential average dividend payer.
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 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
5.3%
DLN
3.1%
GB REITs
0.1%
GB Market
1 Year Return
-20.4%
DLN
-19.2%
GB REITs
-15.4%
GB Market
Return vs Industry: DLN underperformed the UK REITs industry which returned -19.2% over the past year.
Return vs Market: DLN underperformed the UK Market which returned -15.4% over the past year.
Shareholder returns
| DLN | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.3% | 3.1% | 0.1% |
| 30 Day | 18.3% | 4.4% | 1.1% |
| 90 Day | -1.5% | -18.1% | -2.0% |
| 1 Year | -18.4%-20.4% | -22.1%-19.2% | -12.1%-15.4% |
| 3 Year | 14.7%4.8% | -9.2%-8.6% | -8.4%-19.7% |
| 5 Year | -17.1%-28.0% | -15.9%-20.1% | 16.4%-9.7% |
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 week ago | Simply Wall St
Have Insiders Been Selling Derwent London Plc (LON:DLN) Shares?2 months ago | Simply Wall St
If You Had Bought Derwent London's (LON:DLN) Shares Five Years Ago You Would Be Down 20%3 months ago | Simply Wall St
Have Insiders Been Selling Derwent London Plc (LON:DLN) Shares This Year?Valuation
Is Derwent London undervalued compared to its fair value and its price relative to the market?
17.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: DLN (£27.92) is trading below our estimate of fair value (£33.75)
Significantly Below Fair Value: DLN is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: DLN is poor value based on its PE Ratio (22x) compared to the GB REITs industry average (16.6x).
PE vs Market: DLN is poor value based on its PE Ratio (22x) compared to the UK market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: DLN is good value based on its PEG Ratio (0.3x)
Price to Book Ratio
PB vs Industry: DLN's PB Ratio (0.7x) is in line with the GB REITs industry average.
Next Steps
Future Growth
How is Derwent London forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?
72.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: DLN's forecast earnings growth (72.7% per year) is above the savings rate (1.2%).
Earnings vs Market: DLN's earnings (72.7% per year) are forecast to grow faster than the UK market (24.1% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: DLN's revenue (7.5% per year) is forecast to grow faster than the UK market (6% per year).
High Growth Revenue: DLN's revenue (7.5% 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 (5.5%).
Next Steps
Past Performance
How has Derwent London performed over the past 5 years?
-28.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: DLN has a large one-off gain of £23.9M impacting its June 30 2020 financial results.
Growing Profit Margin: DLN's current net profit margins (59.5%) are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: DLN's earnings have declined by 28.2% 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 (-35.5%) over the past year, making it difficult to compare to the REITs industry average (-20.8%).
Return on Equity
High ROE: DLN's Return on Equity (3.1%) is considered low.
Next Steps
Financial Health
How is Derwent London's financial position?
Financial Position Analysis
Short Term Liabilities: DLN's short term assets (£314.8M) exceed its short term liabilities (£116.1M).
Long Term Liabilities: DLN's short term assets (£314.8M) do not cover its long term liabilities (£1.2B).
Debt to Equity History and Analysis
Debt Level: DLN's debt to equity ratio (25.9%) is considered satisfactory.
Reducing Debt: DLN's debt to equity ratio has increased from 24.3% to 25.9% over the past 5 years.
Debt Coverage: DLN's debt is not well covered by operating cash flow (7.4%).
Interest Coverage: DLN's interest payments on its debt are well covered by EBIT (5x coverage).
Balance Sheet
Next Steps
Dividend
What is Derwent London current dividend yield, its reliability and sustainability?
2.59%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: DLN's dividend (2.59%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).
High Dividend: DLN's dividend (2.59%) is low compared to the top 25% of dividend payers in the UK market (5.24%).
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 (95.7%), 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 (67.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.7yrs
Average management tenure
CEO
Paul Williams (59 yo)
1.42yrs
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 ($USD2.99M) is above average for companies of similar size in the UK market ($USD2.04M).
Compensation vs Earnings: Paul's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.42yrs | UK£2.29m | 0.065% £ 2.0m | |
| Co-Founder | 34.75yrs | UK£2.70m | 0.14% £ 4.3m | |
| CFO & Executive Director | 10.67yrs | UK£2.07m | 0.046% £ 1.5m | |
| Property Director & Executive Director | 22.75yrs | UK£2.08m | 0.067% £ 2.1m | |
| Property Director & Executive Director | 12.75yrs | UK£2.07m | 0.043% £ 1.4m | |
| Head of Investment | no data | no data | no data | |
| Head of Investor Relations & Corporate Communications | no data | no data | no data | |
| Head of Human Resources | no data | no data | no data | |
| Head of Sustainability | 7.75yrs | no data | no data | |
| Group Head of Tax | no data | no data | no data | |
| Head of Financial Planning & Analysis | 3.58yrs | no data | no data | |
| Head of Leasing | no data | no data | no data |
5.7yrs
Average Tenure
58yo
Average Age
Experienced Management: DLN's management team is seasoned and experienced (5.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 1.42yrs | UK£2.29m | 0.065% £ 2.0m | |
| Co-Founder | 34.75yrs | UK£2.70m | 0.14% £ 4.3m | |
| CFO & Executive Director | 10.67yrs | UK£2.07m | 0.046% £ 1.5m | |
| Property Director & Executive Director | 22.75yrs | UK£2.08m | 0.067% £ 2.1m | |
| Property Director & Executive Director | 12.75yrs | UK£2.07m | 0.043% £ 1.4m | |
| Independent Non-Executive Director | 5.08yrs | UK£67.00k | no data | |
| Independent Non-Executive Director | 1.75yrs | UK£67.00k | 0.00089% £ 27.8k | |
| Founder & Non-Executive Chairman | 1.42yrs | UK£2.19m | 0.40% £ 12.5m | |
| Senior Independent Director | no data | UK£77.00k | 0.0018% £ 55.9k | |
| Independent Non-Executive Director | 2.75yrs | UK£56.00k | 0.00080% £ 25.0k | |
| Independent Non-Executive Director | 7.17yrs | UK£67.00k | no data | |
| Independent Non-Executive Director | 5.42yrs | UK£71.00k | 0.0022% £ 69.7k |
7.2yrs
Average Tenure
57.5yo
Average Age
Experienced Board: DLN's board of directors are considered experienced (7.2 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:
- Industry: Office REITs
- Sector: Real Estate
- Market Cap: UK£3.126b
- Shares outstanding: 111.95m
- Website: https://www.derwentlondon.com
Number of Employees
Location
- Derwent London Plc
- 25 Savile Row
- London
- East Lothian
- W1S 2ER
- United Kingdom
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| DWVY.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jan 1992 |
| DLN | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
| DVK | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jan 1992 |
| DLNL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jan 1992 |
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 | 2020/10/24 21:48 |
| End of Day Share Price | 2020/10/23 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.