Derwent London (LSE:DLN) plc filed a director shareholding notice on 2 November, but its most recent substantive update remains the 6 August interim results, in which it upgraded 2026 Earnings guidance while reporting a pretax loss and a lower net asset value.

What happened

Derwent London (LSE:DLN), a constituent of the FTSE All-Share index in the real estate Investment trust sector, has filed only routine items in recent days. These are a director/PDMR notice on 2 November, total voting rights on 30 October and a holding notification on 28 October. We have seen their headlines rather than their contents, so no read on insider buying or selling is offered here.

The substantive numbers therefore date from August. For the six months to 30 June 2026, the central London office landlord reported a loss before tax of £17.9m, against a £94.0m profit a year earlier. EPRA net tangible Assets fell 2.1% to 3,157p per share from 3,225p in December.

EPRA Earnings Per Share declined 6.7% to 48.7p, which the company described as slightly ahead of expectations. The Interim Dividend rose 2.0% to 26.0p and was due to be paid on 9 October.

Why it matters for investors

The swing to a loss owed much to a £45.8m onerous contract provision on Old Street Quarter EC1, a £239m Acquisition expected in late 2027. Excluding that, the outward Yield shift and buyback accretion, the total accounting return of -0.4% would have been about 3.7%, according to the company.

Guidance moved the other way. Derwent (LSE:DLN) now expects 2026 EPRA earnings per share to change by 0% to -3%, better than the earlier -3% to -5%. Its 2027 and 2030 growth targets were unchanged, as was estimated rental value growth guidance of 4% to 7% for 2026, after 2.6% in the first half.

The portfolio, worth £4.97bn, was flat on an underlying basis, but the detail was uneven. Assets above £1,500 per sq ft rose 1.3%, while those under £1,000 per sq ft fell 5.3%. West End values rose 0.9% against a 2.6% decline in the City Borders, a gap that fits management's view that the best space is outperforming.

The Balance Sheet improved, with EPRA loan-to-value down to 28.8% and net Debt at £1.38bn. Leasing reached £30.4m year to date, including the £14.1m Databricks pre-let at Network W1, and EPRA vacancy was 4.4%. Disposals of £279.3m including exchanges, against a c.£400m target for 2026, supported that position.

How the shares have performed

An AJ Bell quote retrieved earlier today put the shares at 1,919p as of 2 November 2026. That is roughly 39% below the June EPRA NTA of 3,157p, on our arithmetic, although the NTA figure is now four months old.

The company has been buying at those sorts of levels. It launched a £50m buyback in May, with £33.4m repurchased by the time of the interims at an average of 1,921p. It said first-half purchases added about 7p to NTA.

What to watch next

This is the first autumn under new leadership. Paul Williams was due to retire as chief executive on 1 September 2026, with Jonathan Murphy succeeding him. How the new chief executive approaches the £1bn three-year disposal programme will be a focus.

Development delivery also matters. Four West End schemes totalling 527,300 sq ft are on site, including 50 Baker Street W1, due in the second half of 2029, and Middlesex House W1, due in the first half of 2027. A planning application at Old Street Quarter is planned for early 2027.

Investor appetite remains the wider question. Central London investment volumes fell 15% to £3.1bn in the first half, even as occupational vacancy fell to 6.5%, according to the company's figures.