Derwent London posted an IFRS loss before tax of £475.9m and 10.6% slump in the value of its portfolio to £4.9bn for the financial year ending 31 December 2023.
However, the company said that despite challenging market conditions it had had a “strong year” for leasing in 2023, achieving more than £28m of new rent, on average 8% ahead of ERV.
Off the back of last year’s leasing activity, the company said it was upgrading its rental growth guidance for 2024. It added it had already completed £1.8m of lettings this year with a further £2.7m under offer.
Paul Williams, chief executive of Derwent London, said: “Despite macro uncertainty, businesses are prioritising quality, amenity and sustainability, supporting good demand for the right product in the right location. This plays well to our strengths and reflects London’s diverse and robust occupational market, particularly in the West End. After a year of substantial outward yield movement, investment opportunities are starting to emerge and our balance sheet positions us well.”
