Derwent London confirms dividend, halts construction

Office developer Derwent London confirmed its final dividend on Wednesday but halted construction on multiple sites across the capital.

Derwent said it would pay a final dividend of 51.45p a share on 5 June despite the "unprecedented global disruption" being caused by Covid-19 which has hit tenants in its retail, restaurants and leisure sector properties after a government-imposed shutdown.

The FTSE 250-listed group has already received 73% of rents due on the quarter, with another 6% now being received on a monthly basis in May and June. Derwent also said it had agreed on payment plans on another 12% of rents.

However, decisions on future projects have been deferred and construction on three major sites was paused. All employees below board level remained on full salaries and benefits, it added.

Derwent added it had a low loan to value of 16.2% with cash and undrawn facilities of £554m and "significant" headroom on its covenants, with rents having to fall by 70% and values by 71% before breaching them.

As of 1040 BST, Derwent shares were up 2.15% at 3,324p.