Paul Williams, Chief Executive of Derwent London, said:
“We have seen strong activity across the business driven by significant leasing, including the pre-letting of Network at rents well ahead of appraisal. Good progress has been made on disposals, with contracts exchanged on £278m of properties in line with our three-year target of £1bn and we are actively engaged in further sales.
This has enabled us to commit to the redevelopment of 50 Baker Street as planned, where we are seeing very strong rental growth which will further enhance profitability and future earnings, as we continue to selectively invest where we see attractive risk-adjusted returns. Aligned with our disciplined approach to capital allocation, we are also announcing a £50m share buyback programme which we intend to commence on 18 May.
Our near and medium-term earnings guidance is unchanged and we remain focused on driving income growth and returns.”
Key highlights
- £25.3m of leasing YTD, with open-market lettings 5.2% above ERV; further £6.7m under offer
- Network W1 offices pre-let 5% above December 2025 ERV and 22% above appraisal ERV
- Network W1 achieved practical completion on 5 May 2026
- £278m of disposals exchanged YTD; actively engaged in further potential sales
- Commitment to redevelopment of 50 Baker Street W1 (236,000 sq ft); targeting >12% ungeared IRR
- £50m share buyback programme announced
- Nominations Committee is at an advanced stage of the CEO search process