Proactive Investors - Derwent London PLC (LON:DLN) shares trade at a 25% discount to its December 2023 NAV, or book value, per share figure, with investors still wary of commercial property assets suggests Hargreaves Lansdown (LON:HRGV).
Net asset value was £4.9 billion and £31.29p at the end of December 2023, down from the previous calculation six months earlier.
Derwent runs 66 buildings and 5.4 million square feet for 393 tenants with The City and West End accounting for 72% of the assets and mid-town, Docklands and South Bank accounting for the rest.
Media, business services, online leisure, fintech and financials were the five largest tenant industries at 65% of the rent roll in 2023 with vacancies improving to 4% at the end of 2023 as new lettings picked up.
As a REIT, Derwent London must pay out at least 90% of taxable income to maintain its tax status and having upped its full-year payout by 1% in 2023 to 79.5p a share analysts are looking for a further advance to 81.6p in 2024.
Interim results from the FTSE 250 property developer are due on 8 August.