PROPERTY investment firm Derwent London yesterday announced it will hike its dividend as it said it has a "more confident outlook" for the capital's office sector following the General Election result.

Derwent reported a total return of 6.6 per cent in the year ended 31 December. Net rental income increased 10.5 per cent to £178m, up from £161.1m the previous year.

The company raised its proposed final dividend 10.1 per cent to 51.45p per cent, and increased its full-year dividend to 72.45p per share, a jump of 10 per cent.

Derwent's portfolio was valued at £5.5bn — an underlying valuation increase of 3.9 per cent — which it said drove the total returns increase.

In a statement Derwent said it had a "more confident outlook for London offices following 2019 General Election, despite global uncertainties".

During the period the group achieved new lettings on 498,500 square feet of space, and secured £181.7m in property disposals.

Derwent also brought forward the net zero carbon target on its current portfolio by 20 years to 2030.

Chief executive Paul Williams said: "It has been another successful year for the group and we start 2020 in a strong position."

(c) 2020 City A.M., source Newspaper