By Anthony O. Goriainoff
London-based property-investment-and-development company, Derwent London, announced a pretax loss in the first half of the year due to higher irrecoverable property costs. However, the company maintains its guidance for the year.
In the six months leading up to June 30, Derwent London reported a pretax loss of £143.1 million, compared to a profit of £137.1 million in the previous year. Net rental income also dropped from a restated £94 million to £90.9 million, while net property and other income decreased from £96.6 million to £93.3 million.
Despite the loss, the company declared a dividend of 24.5 pence per share, representing a 2.1% increase.
Derwent London's portfolio is expected to see rental value growth between 0% and 3% for the entire year.
Chief Executive Paul Williams expressed optimism, stating, "We achieved our second-highest first-half lettings on record, and we continue to see businesses committing to our unique central London buildings and brand. With a strong balance sheet, we are confident in our ability to cater to London's diverse demand, despite the uncertain economic outlook."
At 0709 GMT, Derwent London shares were up 1.3%, or 28 pence, trading at 2,190 pence.
