Strong rental demand at Derwent London

28th Feb 2013 08:35

London focused real estate investment trust Derwent London boosted annual net asset value per share and said it was confident for future prospects. European Public Real Estate Association or EPRA net asset value per share increased by 11% to 1,886p for the year ended December 31st 2012. The group posted EPRA pre-tax profit of £52.5m up from £52.3m while profit from operations fell to £277.1m from £301.2m. Net property and other income eased to £117.0m from £117.7m. Derwent said the vacancy rate was low at 1.6%, reflecting strong rental demand. Chairman Robert Rayne said: "The group achieved a double digit percentage increase in net asset value driven by increasing rents in our markets, management activity and progress in our development pipeline." "We are continuing to see new tenants attracted to the space we provide and consider that rents in our markets will continue to rise. This gives us the confidence both to accelerate our development pipeline and increase the dividend for the year."Chief Executive Officer John Burns added: "Our signature mid-market central London office space remains in demand and we expect our rental values to rise between 4% and 6% in 2013."The company expects to complete 260,000 sq ft of projects in 2013 and intends to have more than 650,000 sq ft under construction, including 80 Charlotte Street, by the year-end. The group has recommended a final dividend of 23.75p per share, up 8.4% from 2011.CJ