Derwent London’s dividend has remained well covered by EPRA earnings in recent years and they assume the value to their shareholders of a consistent and sustainable dividend policy. They are also aware of the risks facing their tenant base, the potential impact upon their earnings and the importance of maintaining demonstrable liquidity and a strong financial position. Their rental income will be helped in H2 2020 by 80 Charlotte Street and they have further trading property sales of apartments either exchanged or under offer at Asta House. Taking all these things into account,they have raised the 2020 interim dividend by 4.8% to 22.0p per share, all to be paid as a PID on 16 October 2020 to shareholders on the register as at 11 September 2020.
Other financial highlights include:
Total return of -0.1%
EPRA1 NTA2 3,900p per share, down 1.4% from 3,957p in December 2019
Gross rental income of £97.8m, up 5.0% from £93.1m in H1 2019
EPRA1 earnings of £54.7m or 48.9p per share, from 51.3p in H1 2019
£6.5m (5.8p per share) of costs linked to Covid-19
Net debt of £992.8m (£981.6m in December 2019)
Interest cover 435% (462% in December 2019)
Loan-to-value ratio 17.3% (16.9% in December 2019)
Undrawn facilities and cash of £502m (£511m in December 2019)
