TIDMWKP
RNS Number : 0253W
Workspace Group PLC
13 April 2023
13 April 2023
Workspace GROUP PLC
STRONG FOURTH Quarter TRADING PERFORMANCE
Workspace Group, London's leading owner and operator of
sustainable, flexible work space, provides a trading update for the
fourth quarter ending 31 March 2023.
HIGHLIGHTS
-- Continued resilient levels of customer demand with enquiries
averaging 932 per month, highlighting the appeal of our flexible
offer and strength of our operating platform
-- Good conversion of demand into new lettings with 341 new
lettings completed in the quarter, with a total rental value of
GBP8.3m per annum
-- Further positive pricing momentum with like-for-like rent per
sq. ft. up 2.7% in the quarter, up 9.4% since March 2022, to GBP
40.61
-- Like-for-like occupancy stable at 89.1% (31 December 2022: 89.2%)
-- Like-for-like rent roll up 1.2% (GBP1.2m) in the quarter, up
7.2% since March 2022, to GBP97.7m. Total rent roll up GBP2.2m
(1.6%) in the quarter to GBP140.1m
-- Sale of the residential component of the Riverside mixed-use
redevelopment in Wandsworth completed in March 2023 for GBP54m, in
line with its September 2022 valuation
-- Robust balance sheet with a proforma LTV of 32% (based on 30
September 2022 valuation) and an average maturity of drawn debt of
4.1 years
Graham Clemett, Chief Executive Officer, Workspace Group PLC,
commented:
"We saw a strong fourth quarter of trading activity with
customer demand enabling us to continue moving our pricing
forward.
This performance reflects the continuing attractions of our
offer to the changing needs of businesses looking for space. We
provide flexibility in terms of both lease length and size of space
at affordable prices within high-quality sustainable buildings, in
well-connected locations across London.
Importantly in these challenging economic times we have a robust
balance sheet, with the majority of our debt on long maturities.
This will be further enhanced as we progress with the disposal of
non-core assets.
Our distinctive offer, proven operating track record and
ownership of an extensive property footprint across London sets us
apart from others in the growing flexible space market. This all
provides us with an exciting opportunity to deliver sustainable
long-term growth."
Customer activity
We have seen strong demand in the fourth quarter despite the
disruption caused by tube and rail strikes.
Monthly Average Monthly Activity
-------------------------
Q4 Q4 FY 31 Mar 28 Feb 31 Jan
2022/23 2021/22 2022/23 2023 2023 2023
---------- ------- ------- -------
Enquiries 932 957 798 986 863 946
Viewings 589 634 518 613 578 577
Lettings 114 127 110 150 95 96
---------- --------- --------- ------- ------- -------
Total rent roll increased by 1.6% (GBP2.2m) in the fourth
quarter to GBP140.1m, as detailed below:
Total Rent Roll GBPm
------------------------- ------
At 31 December 2022 137.9
Like-for-like portfolio 1.2
Completed projects 1.1
Projects underway (0.2)
Recent acquisitions 0.1
At 31 March 2023 140.1
------------------------- ------
We have been able to continue to move pricing forward across our
like-for-like portfolio with rent per sq. ft. increasing by 2.7% in
the fourth quarter to GBP40.61, up 9.4% in the year. We are seeing
stronger demand at higher pricing for smaller units and are
subdividing a number of our larger units to meet this requirement.
Like-for-like occupancy was down 0.1% to 89.1% in the quarter, with
an overall increase in rent roll of GBP1.2m (1.2%) to GBP97.7m.
Quarter Ended
--------------------------------------------
31 Mar 23 31 Dec 30 Sep 22 30 Jun
22 22
---------- --------- ---------- ---------
Like-for-like occupancy 89.1% 89.2% 89.6% 89.6%
Like-for-like occupancy
change (0.1)% (0.4)% - 0.1%
Like-for-like rent per GBP40.61 GBP39.56 GBP38.59 GBP38.07
sq. ft.
Like-for-like rent per
sq. ft. change 2.7% 2.5% 1.4% 2.6%
Like-for-like rent roll GBP97.7m GBP96.5m GBP94.5m GBP93.8m
Like-for-like rent roll
change 1.2% 2.2% 0.7% 2.9%
We have made good progress letting up space at our recently
completed projects with rent roll up 9% (GBP1.1m) in the quarter.
Good progress has also been made at the McKay London-based
properties with rent roll up 12% (GBP0.9m). This is offset by a
GBP0.8m reduction in rent at the McKay industrial estate in
Weybridge where we now have vacant possession, with planning
approved for the refurbishment of the site.
Disposals
The disposal of the Riverside residential scheme in Wandsworth
completed on 10 March 2023 for GBP54m, in line with its September
2022 valuation, with GBP44m paid on completion and the remaining
GBP10m payable in March 2024. We continue to progress discussions
for the sale of other non-core properties.
Financing
Net debt decreased by GBP33m in the quarter to GBP902m, with
cash and undrawn facilities of GBP148m as at 31 March 2023 and LTV
at 32% on a proforma basis, based on the 30 September 2022
valuation. At 31 March 2023 our average cost of debt was 3.7%, with
73% at fixed rates and an average maturity of drawn debt of 4.1
years.
- ENDS -
For further information, please contact:
Workspace Group PLC 020 7138 3300
Graham Clemett, Chief Executive Officer
Dave Benson, Chief Financial Officer
Paul Hewlett, Director of Strategy & Corporate Development
FGS Global 020 7251 3801
Chris Ryall
Guy Lamming
Details of Year End Results Presentation
Workspace will host a results presentation for analysts and
investors on Thursday 25 May 2023 at 9:00am at the London Stock
Exchange.
Notes to Editors
About Workspace Group PLC:
Workspace is London's leading owner and operator of flexible
work space, managing five million sq ft of sustainable space across
77 characterful properties in London and the South East.
We are home to some 4,000 of London's fastest growing and
established brands from a diverse range of sectors. Our purpose, to
give businesses the freedom to grow, is based on the belief that in
the right space, teams can achieve more. That in environments they
tailor themselves, free from constraint and compromise, teams are
best able to collaborate, build their culture and realise their
potential.
Our ownership model allows us to offer true flexibility. We
provide customers with blank canvas space to create a home for
their business, alongside leases that give them the freedom to
easily scale up and down within our well-connected, extensive
portfolio.
We are inherently sustainable - we invest across the capital,
breathing new life into old buildings and creating hubs of economic
activity that help flatten London's working map. We work closely
with our local communities to ensure we make a positive and lasting
environmental and social impact, creating value over the long
term.
Workspace was established in 1987, has been listed on the London
Stock Exchange since 1993, is a FTSE 250 listed Real Estate
Investment Trust (REIT) and a member of the European Public Real
Estate Association (EPRA).
Workspace(R) is a registered trademark of Workspace Group Plc,
London, UK.
LEI: 2138003GUZRFIN3UT430
For more information on Workspace, please visit
www.workspace.co.uk
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END
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