Derwent London PLC on Tuesday reported a rise in rental income, as well as a more positive outlook for London’s property market.

In 2022, the London-based property investor and developer said net rental income rose 6.0% to £188.5 million from £177.9 million. EPRA net tangible assets per share fell 8.3% to 2,632 pence at December 31, from 3,959p a year before.

Derwent swung to a pretax loss of £279.5 million from a profit of £252.5 million. This was mostly due to a £422.1 million revaluation deficit as opposed to a £131.1 million surplus a year before.

It proposed to raise the final dividend to 54.5p from 53.5p, bringing the annual total to 78.5p, which is an annual increase of 2.6%.

Derwent said the outlook for the UK economy has improved in recent months, with London becoming ‘very busy again’. In particular, it pointed to the opening of the Elizabeth line, which has led to higher footfall in central stations, and consequently helped offices, shops and restaurants.

‘The flight to quality for London offices continues to gather pace,’ the firm said.

Shares in Derwent were up 0.8% to 2,612.00p in London on Tuesday morning.

Separately, Derwent London announced the signing of 10 leases, totalling £14.7 million in combined rent. This includes the first pre-let at the 25 Baker Street W1 property, as well as the third major occupier of the Featherstone Building EC1, the firm noted.

‘The £14.7 million of lettings we have announced today further demonstrate the depth of demand for our distinctively designed, sustainable offices and we anticipate rental growth accelerating for the best buildings over the medium-term,’ said Chief Executive Paul Williams.

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