Derwent London Plc (DLN), a developer of mid-priced office buildings in central London, said first-half profit fell as its assets appreciated by a smaller amount than a year earlier.
Net income dropped to 169.3 million pounds ($280 million) from 208.3 million pounds a year earlier, the London-based company said in a statement today. The value of Derwent’s assets rose by 117.3 million pounds compared with a gain of 197.5 million pounds a year earlier. The company plans to raise its interim dividend to 9.45 pence a share from 8.75 pence.
“Recent concerns over the weakness of the global economic recovery, the levels of sovereign debt in Europe and the U.S. budget deficit have made the outlook for the second half more uncertain,” the company said in the statement.
Derwent and two competitors were downgraded last week by BofA Merrill Lynch Global Research, which said market growth appeared to be dissipating. In June, commercial real-estate values rose 0.1 percent from the previous month, the smallest gain since the start of a recovery from the global recession that ended in 2009.
Derwent gained 15 pence, or about 1 percent, to 1,570 at 12:02 p.m. in London, giving the real estate investment trust a market value of 1.59 billion pounds. The shares have dropped 3 percent in the past six months.
Adjusted net asset value rose 10 percent in the six months through June to 1,621 pence a share.
To contact the reporter on this story: Chris Spillane in London at email@example.com.