Derwent London has announced its half-year results and reported a 9.1 per cent drop in net asset value (NAV).
Despite the fall its results outperformed the Investment Property Databank’s (IPD) West End commercial property benchmark– Derwent’s portfolio dropped six per cent in value compared to the IPD’s eight per cent.
The real estate investor announced “continued good progress across all areas of its activity”. Chairman Robert Rayne said: “Since the start of the year, the group has successfully let 26,700 sq m (287,000 sq ft) of space.”
“This will generate rental income of £11 million per annum which represents approximately 9 per cent of the group’s current passing rent.”
He claimed it was be well placed to tackle the present uncertainties and primed to take advantage of future market opportunities.
JP Morgan property analyst Harm Meijer told Property Week the group was well positioned, but remained neutral “as we expect the West End market to deteriorate further, and see rental declines coming through”.