FTSE COMPANY REPORT Share price analysis relative to sector and index performance

Derwent DLN Real Estate Investment Trusts — GBP 34.35 at close 18 June 2021

Absolute Relative to FTSE UK All-Share Sector Relative to FTSE UK All-Share Index PERFORMANCE 18-Jun-2021 18-Jun-2021 18-Jun-2021

36 115 115 1D WTD MTD YTD Absolute -1.1 -2.3 -0.6 10.9 34 110 110 Rel.Sector -0.2 -0.6 -0.5 0.8 Rel.Market 0.6 -0.7 -0.3 1.8

32 105 105 VALUATION 30 100 100 Trailing

28 95

Relative Price Relative Price Relative

95 PE -ve

Absolute Price (local (local currency) AbsolutePrice 26 90 EV/EBITDA 41.0 90 24 85 PB 0.9 PCF 45.6 22 85 80 Div Yield 1.1 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Price/Sales 14.3 Absolute Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Relative Price 4-wk mov.avg. 13-wk mov.avg. Net Debt/Equity 0.3

90 100 90 Div Payout 0.0 90 80 80 ROE -ve

80 70

70

Share Index) Share

Share Sector) Share - - 70 60 DESCRIPTION 60 60 50 50 50 The Company is a real estate investment trust (REIT) 40 RSI RSI (Absolute) 40 with a focus on the central London commercial, 40 residential and office development market.

30 30 30

20 20

RSI (Relative to FTSE UKFTSE All to RSI (Relative RSI (Relative to FTSE UKFTSE All to RSI (Relative 20 10 10 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Jun-2020 Sep-2020 Dec-2020 Mar-2021 Jun-2021

Past performance is no guarantee of future results. Please see the final page for important legal disclosures. 1 of 4 FTSE COMPANY REPORT: 18 June 2021

Valuation Metrics

Price to Earnings (PE) EV to EBITDA Price to Book (PB)

31-May-2021 31-May-2021 31-May-2021 60 50 1.1

50 45 1

40 40 +1SD +1SD 0.9 +1SD 30 35 Avg 0.8 Avg 20 Avg 30 -1SD -1SD 0.7 10 25

-1SD 0 ‖ ‖ 20 0.6 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020

Custodian REIT 120.0 Residential Secure Income 100.0 Holdings 1.9 Residential Secure Income 67.2 Shaftesbury 91.2 1.6 AEW UK REIT 41.2 Unite Group 83.6 Primary Health Prop. 1.4 22.7 67.2 Unite Group 1.4 Empiric Student Property Assura LXI REIT 20.0 63.1 1.3 Real Estate Investment Trusts 52.3 Real Estate Investment Trusts 1.0 Real Estate Investment Trusts -19.7 Derwent London 41.0 Derwent London 0.9 Palace Capital -21.0 AEW UK REIT 14.5 McKay Securities 0.7 Empiric Student Property -22.2 0.0 Palace Capital 0.7 Unite Group -37.3 0.0 Capital & Regional 0.6 Derwent London -49.9 UK Commercial Property REIT Limited 0.0 Hammerson 0.5 UK Commercial Property REIT Limited -100.5 Capital & Counties Properties 0.0 NewRiver REIT 0.5 -150 -100 -50 0 50 100 150 0 20 40 60 80 100 120 0 0.5 1 1.5 2 2.5

Price to Cash Flow (PCF) Dividend Yield % Price to Sales (PS)

31-May-2021 31-May-2021 31-May-2021 55 2.5 15 ‖ ‖ ‖ ‖ ‖ ‖ ‖ ‖ ‖ ‖ ‖ +1SD 50 14 2 45 Avg +1SD 40 13 1.5 -1SD Avg 35 12 +1SD 30 1 -1SD Avg 11 25 -1SD 20 0.5 10 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020

Shaftesbury 80.0 NewRiver REIT 16.5 UK Commercial Property REIT Limited 15.0 Unite Group 80.0 Regional REIT 7.3 Segro 15.0 Empiric Student Property 80.0 Ediston Property Investment Company 7.1 Unite Group 15.0 GCP Student Living 80.0 AEW UK REIT 6.9 Tritax Big Box REIT 15.0 Great Portland Estates 73.5 Custodian REIT 6.9 Capital & Counties Properties 15.0 Derwent London 45.6 Real Estate Investment Trusts 2.5 Derwent London 14.3 Real Estate Investment Trusts 34.2 Derwent London 1.1 Real Estate Investment Trusts 14.1 Ediston Property Investment Company 10.1 GCP Student Living 0.4 Palace Capital 5.4 NewRiver REIT 6.6 Shaftesbury 0.0 Residential Secure Income 5.1 Hammerson -21.2 Empiric Student Property 0.0 NewRiver REIT 2.1 Capital & Counties Properties -26.8 Capital & Regional 0.0 Capital & Regional 1.3 Residential Secure Income -98.0 Capital & Counties Properties 0.0 Great Portland Estates 0.0 -120 -100 -80 -60 -40 -20 0 20 40 60 80 100 0 2 4 6 8 10 12 14 16 18 0 2 4 6 8 10 12 14 16 Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing.

2 of 4 FTSE COMPANY REPORT: Derwent London 18 June 2021

Valuation Metrics

Net Debt to Equity Dividend Payout (DP) Return on Equity (RoE)

31-May-2021 31-May-2021 31-May-2021 0.27 100 ‖ ‖ 25 0.26 0.25 +1SD 80 20 0.24 60 15 0.23 Avg +1SD +1SD 0.22 40 10 0.21 Avg -1SD Avg 0.2 20 5 0.19 -1SD 0.18 0 ‖ -1SD 0 ‖ ‖ Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020 Jun-2016 Jun-2017 Jun-2018 Jun-2019 Jun-2020

Capital & Regional 2.8 Custodian REIT 100.0 Big Yellow Group 20.3 NewRiver REIT 1.2 Residential Secure Income 100.0 Safestore Holdings 18.5 Residential Secure Income 1.0 AEW UK REIT 100.0 Segro 16.5 Regional REIT 0.9 Target Healthcare REIT 96.6 Tritax Big Box REIT 16.4 Primary Health Prop. 0.9 Workspace Group 90.4 LondonMetric Property 16.3 Real Estate Investment Trusts 0.5 Derwent London 0.0 Derwent London -1.8 Derwent London 0.3 McKay Securities 0.0 Real Estate Investment Trusts -4.9 Segro 0.3 Real Estate Investment Trusts 0.0 Ediston Property Investment Company -18.2 Big Yellow Group 0.2 Standard Life Inv Prop Inc Trust 0.0 Shaftesbury -26.5 LXI REIT 0.2 BMO Real Estate Investments 0.0 Capital & Counties Properties -33.2 Impact Healthcare REIT 0.2 Palace Capital 0.0 Hammerson -45.7 UK Commercial Property REIT Limited 0.2 UK Commercial Property REIT Limited 0.0 Capital & Regional -50.0 0 0.5 1 1.5 2 2.5 3 0 20 40 60 80 100 120 -60 -50 -40 -30 -20 -10 0 10 20 30

ROE vs. PB — sector Du Pont Analysis

1.8 SAFE 1.4 9

1.7 Regression 1.2 8 1.6 BYG 1.5 1 7 PHP 1.4 UTG 0.8 6 1.3 AGR SGRO LMP 0.6 5 1.2

PB BBOX 1.1 CSH 0.4 4 SHB THRL AEWU LXI IHR 1.0 Real Estate Inve SOHODIGS CREI 0.2 3 UKCMGPOR RESI 0.9 RGLDLN PCTN CAPCESP WKP 0.8 BLNDSLIEPIC 0 2 BCPTSREIBREI 0.7 LANDMCKS SERE PCA -0.2 1 0.6 CAL -0.4 0 0.5 NRRHMSO ‖ 2017 2018 2019 2020 2021 0.4 0 2 4 6 8 10 12 14 16 18 20 Net Margin Asset Turnover Gearing ROE (rhs) ‖ ROE Note: bar chart reflects the top and bottom five current values for the valuation ratio in question for FTSE All Shares stocks in the same sector as the stock concerned. All valuation metrics are trailing.

3 of 4 FTSE COMPANY REPORT: Derwent London 18 June 2021

Brief description Brief description

Price to Earnings Price to Earnings (PE) is price over earnings per share. Earnings are based on the latest Gearing Gearing is Total Assets divided by Common Equity. Total Assets and Common Equity are (PE) available fiscal year earnings. each averaged over two years, that is, t and (t-1). Price to Sales (PS) Price to Sales (PS) is price divided by sales per share. It is based on sales from continuing Asset Turnover Asset turnover is Sales divided by Total Assets. Total Assets is averaged over two years, operations for the fiscal year. that is, t and (t-1). Price to Book (PB) Price to Book (PB) is price at the indicated date divided by common equity per share. Dupont Breakdown Return on Equity (RoE) = Net Margin * Gearing * Asset Turnover Common/ordinary equity is generally as reported at the most recent fiscal year-end but is Analysis adjusted to exclude minority interest, preferred stock and selected items as appropriate. RoE vs PB Plot of RoE versus PB at last month end for all FTSE UK All Share stocks in the sector Price to Cash Flow Price to Cash Flow (PCF) is price at the indicated date divided by cash flow per share. relative to the stock in question. Data may be limited to the stock in question if there are (PCF) currently no stocks in the corresponding FTSE UK All Share sector. Net Debt Equity Net Debt Equity is Net Debt as a percentage of common equity. Not calculated if Absolute Absolute graphs reflect performance for the stock in question for up to 366 days adjusted denominator (common equity) is negative for intervening corporate actions. EV to EBITDA EV to EBITDA is Enterprise Value divided by EBITDA (Earnings before Interest and Taxes, Relative Relative charts reflect the performance for the stock in question relative to the depreciation and amortisation). EV is full company Market Capitalisation at the data date corresponding sector of the FTSE All Share Index for up to 366 days, rebased to the start plus last annual net debt and Preferred Stock. Net Debt is total financial debt less cash date. Note that the stock itself may not be a FTSE All share constituent. Relative Chart and short-term investments. EBITDA is operating income plus depreciation and may be null if there are no stocks in the corresponding FTSE UK All Share sector. amortisation. RSI Relative Strength Index. Calculated as 100 minus (100 divided by (1+ratio of positive Dividend Yield % Dividend Yield reflects the dividend declared per share and/or paid for the security in versus negative time weighted returns)). Reflects 14 day average gains/losses question for the most recent fiscal year, divided by the share price. Valuation History Outlier valuation data is not shown to scale as these would distort the chart. Instead, ∥ Return on Equity Return on Equity is net income over average common equity. Not calculated if Charts denotes valuation data which falls outside display truncation limits. (RoE) denominator (average common equity) is negative Top/Bottom Reflect data for up to five top and five bottom performers for the valuation metric in Dividend Payout Total dividends divided by Net Income expressed as a percentage. Valuation Bar question. Note data may be limited to the stock in question if there are currently no Charts stocks in the corresponding FTSE UK All Share sector. Net Margin Net Margin is Net Income divided by sales.

Derw ent London 18 June 2021 For further information visit www.ftse.com, email [email protected] or call your local FTSE office:

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