TIDMWKP
RNS Number : 1188F
Workspace Group PLC
06 July 2023
6 July 2023
Workspace GROUP PLC
FIRST Quarter business update FOR THE
PERIOD ENDING 30 JUNE 2023
Workspace Group PLC ("Workspace"), London's leading owner and
operator of sustainable, flexible work space, provides a business
update for the first quarter ending 30 June 2023.
HIGHLIGHTS
-- Resilient levels of customer demand with 260 new lettings
completed in the quarter, with a total rental value of GBP7.0m per
annum
-- Like-for-like occupancy stable at 89.2%
-- Like-for-like rent roll up 3.2% (GBP3.2m) in the quarter to GBP103.6m
-- Like-for-like rent per sq. ft. up 3.3% in the quarter to GBP 41.73
-- GBP82m of non-core disposals completed and further GBP7m exchanged for sale
-- Planning consent obtained for 218,000 sq. ft. office
redevelopment at Havelock Terrace, Battersea
-- Robust balance sheet with GBP166m of cash and undrawn
facilities and proforma LTV of 31% (based on 31 March 2023
valuation)
Graham Clemett, Chief Executive Officer, Workspace Group PLC,
commented:
"We have had a good start to the new financial year highlighting
the appeal of our flexible offer, with stable like-for-like
occupancy and continued improvement in pricing. 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.
We continue to make good progress on the disposal of non-core
properties completing the sale of the previously announced
portfolio of five industrial estates for GBP82m, and in June
exchanging for sale a further industrial estate for GBP7m.
Our extensive property portfolio across London provides us with
a rich opportunity to upgrade and reposition our buildings to meet
both the changing needs of our customers and higher environmental
standards. We have a number of projects underway and we obtained
planning consent in May for a significant office redevelopment
adjacent to Battersea Power Station."
Customer activity
We have seen good demand in the first quarter with 260 new
lettings completed with a total rental value of GBP7.0m.
Monthly Average Monthly Activity
-------------------------
Q1 Q1 30 Jun 31 May 30 Apr
2023/24 2022/23 2023 2023 2023
---------- ------- ------- -------
Enquiries 738 757 777 783 655
Viewings 491 508 536 530 406
Lettings 87 108 93 92 75
---------- --------- ------- ------- -------
Total rent roll increased by 0.2% (GBP0.3m) in the first quarter
to GBP140.4m, as detailed below:
Total Rent Roll GBPm
------------------------------------ ------
At 31 March 2023 140.1
Like-for-like portfolio 3.2
Completed projects 0.2
Projects underway and design stage 0.4
South East portfolio 0.1
Disposals (3.6)
At 30 June 2023 140.4
------------------------------------ ------
Like-for-like rent per sq. ft. increased by 3.3% in the first
quarter to GBP41.73, with like-for-like occupancy stable, down by
0.1% to 89.2%. The net result was a 3.2% increase in like-for-like
rent roll to GBP103.6m.
Quarter Ended
--------------------------------------
30 Jun 23 31 Mar 23** 31 Dec 22**
---------- ------------ ------------
Like-for-like occupancy 89.2% 89.3% 89.3%
Like-for-like occupancy
change* (0.1)% 0.0% 0.0%
Like-for-like rent per GBP41.73 GBP40.41 GBP39.30
sq. ft.
Like-for-like rent per
sq. ft. change 3.3% 2.8% 2.4%
Like-for-like rent roll GBP103.6m GBP100.4m GBP98.9m
Like-for-like rent roll
change 3.2% 1.5% 2.4%
*Absolute change
** Prior periods restated for the reclassification of Mare
Street, Castle Lane and Wilson Street, which are now included in
like-for-like
Portfolio activity
In May, we received planning consent for a major redevelopment
project at Havelock Terrace, Battersea, which will deliver a new
218,000 sq. ft. office building adjacent to Battersea Power
Station.
In June, we completed on the sale of five non-core properties
for GBP82m with a corresponding reduction of GBP3.6m in rent-roll.
The properties sold comprise light industrial and logistics
properties in Bracknell, Crawley, Poyle, Theale and Weybridge. We
also exchanged contracts for the sale of another non-core
industrial estate in Farnborough for GBP7m, in line with the 31
March 2023 valuation. Completion is expected to take place in July
2023.
Financing
Net debt decreased by GBP68m in the quarter to GBP834m, with
cash and undrawn facilities of GBP166m as at 30 June 2023 and LTV
at 31% on a proforma basis, based on the 31 March 2023 valuation.
At 30 June 2023, our average cost of debt was 4.0%.
Chairman succession
As previously announced, Stephen Hubbard steps down as Chairman
following the AGM today and will be replaced by Duncan Owen. Duncan
has been a Non-Executive Director of Workspace since July 2021.
- 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
Chris Ryall 020 7251 3801
Guy Lamming
Notes to Editors
About Workspace Group PLC:
Workspace is London's leading owner and operator of flexible
workspace, managing five million sq. ft. of sustainable space with
76 core locations 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.
We have a unique combination of a highly effective and scalable
operating platform, a portfolio of distinctive properties, and an
ownership model that 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, visit www.workspace.co.uk
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END
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