Derwent London PLC on Thursday reported half-year profit growth as the London-based property investor and developer enjoyed ‘good demand’ for offices.

In the six months to June 30, pretax profit grew 13% to £137.1 million from £121.1 million a year ago.

‘We are seeing good demand for our distinctive brand of high-quality offices, with short supply of prime space in our core locations,’ Chief Executive Officer Paul Williams said.

Net rental income was up 4.2% at £93.9 million from £90.1 million.

Derwent declared a 24.0 pence interim dividend per share, up 4.3% from 23.0p a year ago.

After 0.9% estimated rental value growth in the first half, Derwent maintained its 2022 guidance of an average ERV growth of 0% to 3%.

‘Following a strong start to the year, the macroeconomic environment has weakened. The substantial increase in financing costs and inflation, among other factors, is bringing upward yield pressure across the real estate sector. London continues to have global appeal and we believe our portfolio will prove more resilient given the location and scarcity of our high quality portfolio,’ it stated.

Derwent London shares fell 2.5% to 2,692.00 pence each in London on Thursday morning.

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