Workspace slips despite best quarterly growth in rent roll in over a year
Proactive Investors – Workspace Group PLC (LON:) increased rent roll 3.2% on a like-for-like basis in the past quarter, the London flexible work space provider’s strongest quarterly growth since early 2022.
It was driven by a 3.3% increase in the average rate, with the occupancy rate stable at 89.2%.
Enquiries, however, were down 2.5% on the same period last year.
Disposals of £82mln of ‘non-core’ offices were completed and a further £7mln exchanged for sale, with planning consent obtained for a 218,000 sq ft office redevelopment at Havelock Terrace, Battersea.
Net debt was cut £68mln to £834mln, with cash and undrawn facilities of £166mln.
“As always, we are staying very close to our customers monitoring trends on a real time basis. While we remain vigilant, London’s SMEs are proving resilient in the current economic climate,” said chief executive Graham Clemett.
The shares fell 4% to 475.6p in early trade on Thursday.
Broker Peel Hunt noted that the shares trade on a 47% discount, have a share price implied equivalent yield of 9% and offer a 5.5% dividend yield.
