Derwent London Announces “Good Start to 2013”

on May 10, 2013
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British real estate investment trust (REIT) Derwent London (LON:DLN), the largest Central London-focused REIT, said on Friday, May 10, that it had made a strong start to the year with continuing rental growth in its main commercial property market.

In an Interim Management Statement, covering the three-month period to the end of March, the company said the letting momentum from last year had been carried forward into 2013 with robust tenant demand, especially from the fast-developing TMT (technology, media, telecommunications) sector.
Derwent let 268,000 square feet of commercial space in the first quarter of 2013 at an annual rent of £3.5

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million, 1.7 percent above the estimated rental values (ERV) at the end of December. Excluding short-term lets at future development sites, open market lettings in the period were agreed on average at 3.6 percent above the company’s ERV. Current development projects total 404,400 square feet and over 400,000 square feet are due to start in the second half of the year.

“Derwent London has made a good start to 2013 with further lettings above ERV, a high level of enquiries for space and continuing rental growth in our markets,” Chief Executive Officer, John Burns, commented on Friday. He added that the REIT remained confident about its growth with the scale of its current development programme and the prospects for substantial stock of future projects.

!m[Central London-Focused REIT Sees Strong Demand for Commercial Space ](/uploads/story/2190/thumbs/pic1_inline.png)
Derwent also said in its trading update that the recommended final dividend for 2012 of 23.75 pence per share, of which 18.75 pence will be a Property Income Distribution, will be paid on June 14, 2013 to shareholders on the register at May 10, 2013.
**Derwent Share Price Climbs in Early Trading Hours**

The Derwent share price rose immediately after the release of the group’s trading update. During early trading hours in London the stock climbed almost one percent above its previous day’s closing level. As of 08:33 GMT on May 10 the Derwent share price was 2,420.00p.

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