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Office firm Derwent London report NAV down 9.1% as it turns in H1 profits of £2.1 million.
Real estate investor Derwent London said its adjusted net asset value fell by 9.1% in the half year to the end of June as the property market in the UK capital showed increasing signs of stress.
Derwent London, which specialises in office redevelopment and investment mainly in London's West End district, posted a half-year adjusted net asset value of 1,637 pence per share after the value of its portfolio slipped £161.9 million pounds to £2.5 billion.
While Britain's deepening property depression continued to erode the value of its assets, Derwent said tenant demand for its affordable, well-located space remained strong.
The company said it had let 26,700 square metres of space in the period, generating an £11 million increase in annual rental income, almost £3 million more than the group generated in new rental income in the whole of 2007.
Against the slowing economic backdrop, it said it had squeezed its overall vacancy level to 4.2% from 4.5% and made a profit of £2.1 millions on £56 million worth of sales of non-core assets. "Notwithstanding difficult times, the group remains in a strong position," said Chairman Robert Rayne in a statement. "The portfolio contains latent value to be unlocked over future years."
Derwent's gross property income rose 13.9% to £57.5 million over the period and it said it would raise its interim dividend 8.7% to 8.15 pence. Recurring pretax profit climbed to £17.3 million versus £12.3 million a year before.
Derwent London, which specialises in office redevelopment and investment mainly in London's West End district, posted a half-year adjusted net asset value of 1,637 pence per share after the value of its portfolio slipped £161.9 million pounds to £2.5 billion.
While Britain's deepening property depression continued to erode the value of its assets, Derwent said tenant demand for its affordable, well-located space remained strong.
The company said it had let 26,700 square metres of space in the period, generating an £11 million increase in annual rental income, almost £3 million more than the group generated in new rental income in the whole of 2007.
Against the slowing economic backdrop, it said it had squeezed its overall vacancy level to 4.2% from 4.5% and made a profit of £2.1 millions on £56 million worth of sales of non-core assets. "Notwithstanding difficult times, the group remains in a strong position," said Chairman Robert Rayne in a statement. "The portfolio contains latent value to be unlocked over future years."
Derwent's gross property income rose 13.9% to £57.5 million over the period and it said it would raise its interim dividend 8.7% to 8.15 pence. Recurring pretax profit climbed to £17.3 million versus £12.3 million a year before.
Fri, 29th Aug 2008