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

Derwent London DLN Investment Trusts — GBP 34.58 at close 30 September 2021

Absolute Relative to FTSE UK All-Share Sector Relative to FTSE UK All-Share Index PERFORMANCE 30-Sep-2021 30-Sep-2021 30-Sep-2021

40 125 130 1D WTD MTD YTD Absolute -0.9 -3.8 -8.8 11.7 38 125 Rel.Sector 0.2 -0.4 -1.8 -1.4 120 Rel.Market -0.5 -3.7 -7.7 1.1 36

120 34 115 VALUATION

32 115

Trailing Relative Price Relative Relative Price Relative 110 30

110 PE -ve Absolute Price (local (local currency) AbsolutePrice 28 EV/EBITDA 42.8 105 105 PB 1.0 26 PCF 48.0 24 100 100 Div Yield 1.1 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Sep-2021 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Sep-2021 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Sep-2021 Price/Sales +ve 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

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

80 80 70

Share Index) Share

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

40 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 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Sep-2021 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Sep-2021 Sep-2020 Dec-2020 Mar-2021 Jun-2021 Sep-2021

Past performance is no guarantee of future results. Please see the final page for important legal disclosures. 1 of 4 FTSE COMPANY REPORT: 30 September 2021

Valuation Metrics

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

30-Jul-2021 30-Jul-2021 30-Jul-2021 60 50 1.1

50 45 1

40 +1SD 40 +1SD 0.9 +1SD 30 35 Avg Avg 0.8 20 Avg 30 -1SD -1SD 0.7 10 25 -1SD 0 ‖ ‖ 20 0.6 Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020 Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020 Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020

Custodian REIT 117.6 PRS REIT (The) 100.0 Holdings 2.1 Residential Secure Income 72.3 Residential Secure Income 100.0 1.8 Schroder Real Estate Investment Trust 53.1 98.1 Primary Health Prop. 1.5 PRS REIT (The) 31.5 Shaftesbury 88.0 1.5 Unite Group Unite Group LXI REIT 22.5 84.9 1.4 Real Estate Investment Trusts 53.2 Real Estate Investment Trusts 1.1 Real Estate Investment Trusts -19.8 Derwent London 42.8 Derwent London 1.0 Palace Capital -22.0 AEW UK REIT 10.9 Land Securities Group 0.7 Empiric Student Property -24.4 0.0 McKay Securities 0.7 Unite Group -38.1 UK Commercial Property REIT Limited 0.0 NewRiver REIT 0.6 Derwent London -52.6 NewRiver REIT 0.0 Capital & Regional 0.5 UK Commercial Property REIT Limited -102.7 Capital & Counties Properties 0.0 Hammerson 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)

30-Jul-2021 30-Jul-2021 30-Jul-2021

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

Shaftesbury 80.0 Regional REIT 7.2 UK Commercial Property REIT Limited 15.0 Unite Group 80.0 AEW UK REIT 6.8 PRS REIT (The) 15.0 GCP Student Living 80.0 Ediston Property Investment Company 6.6 Segro 15.0 Empiric Student Property 80.0 Schroder European Real Estate Investment Trust 5.0 Tritax Big Box REIT 15.0 Great Portland Estates 77.8 BMO Real Estate Investments 5.0 Great Portland Estates 15.0 Derwent London 48.0 Real Estate Investment Trusts 2.3 Real Estate Investment Trusts 15.0 Real Estate Investment Trusts 44.8 Derwent London 1.1 Derwent London 15.0 Regional REIT 10.7 GCP Student Living 0.3 Palace Capital 6.7 Hammerson -19.7 Shaftesbury 0.0 AEW UK REIT 6.6 Capital & Counties Properties -26.5 Empiric Student Property 0.0 Residential Secure Income 5.5 PRS REIT (The) -73.3 Capital & Regional 0.0 NewRiver REIT 3.0 Residential Secure Income -100.0 Capital & Counties Properties 0.0 Capital & Regional 1.1 -120 -100 -80 -60 -40 -20 0 20 40 60 80 100 0 1 2 3 4 5 6 7 8 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 30 September 2021

Valuation Metrics

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

30-Jul-2021 30-Jul-2021 30-Jul-2021 0.27 100 ‖ ‖ 25 0.26 +1SD 0.25 80 20 0.24 60 15 0.23 Avg +1SD +1SD 0.22 40 10 0.21 -1SD Avg Avg 0.2 20 5 0.19 -1SD 0.18 0 ‖ -1SD 0 ‖ ‖ Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020 Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020 Aug-2016 Aug-2017 Aug-2018 Aug-2019 Aug-2020

Capital & Regional 2.8 Custodian REIT 100.0 Big Yellow Group 20.3 NewRiver REIT 1.6 Residential Secure Income 100.0 Safestore Holdings 18.5 Residential Secure Income 1.0 Schroder Real Estate Investment Trust 100.0 Segro 16.5 Regional REIT 0.9 PRS REIT (The) 100.0 Tritax Big Box REIT 16.4 Primary Health Prop. 0.9 Target Healthcare REIT 96.6 LondonMetric Property 16.3 Real Estate Investment Trusts 0.4 Derwent London 0.0 Derwent London -1.8 Derwent London 0.3 Real Estate Investment Trusts 0.0 Real Estate Investment Trusts -5.3 AEW UK REIT 0.3 Palace Capital 0.0 Shaftesbury -26.5 Big Yellow Group 0.2 McKay Securities 0.0 NewRiver REIT -28.1 LXI REIT 0.2 Standard Life Inv Prop Inc Trust 0.0 Capital & Counties Properties -33.2 Impact Healthcare REIT 0.2 BMO Real Estate Investments 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

2.0 SAFE 1.4 9 Regression 1.2 8 1.8 BYG 1 7 1.6 PHP SGRO 0.8 6

1.4 UTG AGR 0.6 5 THRL LMP PB DIGS BBOX 1.2 IHR 0.4 4 LXI PRSR Real EstateCREI Inve CSH AEWU 0.2 3 1.0 SHBGPOR RESI SOHO DLNUKCM PCTN RGLWKPESP EPIC 0 2 CAPCSLI 0.8 BLNDBCPT SREI PCABREI SERE LANDMCKS -0.2 1 0.6 NRR -0.4 ‖ 0 CALHMSO 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 30 September 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 30 Sept ember 2021 For further information visit www.ftse.com, email [email protected] or call your local FTSE office:

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