Workspace Group reports resilient fourth quarter

17th Apr 2024 08:27

(Sharecast News) - Office space provider Workspace Group reported resilient customer demand in an update on Wednesday, having completed 343 new lettings in its fourth quarter and boasting a total annual rental value of £8.7m.

The FTSE 250 company said through the year ended 31 March, it saw significant customer engagement, culminating in the completion of 1,238 lettings, totaling £31.3m in rental value.

Rental growth remained on an upward trajectory, with its like-for-like rent roll increasing by 1.9% during the quarter and by 9.6% since the end of March last year.

Moreover, improved pricing dynamics were recorded, with like-for-like rent per square foot rising 1.9% in the quarter and by 10.4% year-on-year, reaching £44.27.

Occupancy rates remained resilient, with like-for-like occupancy registering at 88.1%, maintaining relative stability compared to the prior quarter's 88.4%.

Workspace also reported progress in divesting its non-core assets, with sales amounting to £41m since 31 December and £143m in sales for the financial year.

The company said it maintained a robust balance sheet, with £145m in cash and undrawn facilities, alongside a pro forma loan-to-value ratio of 34%, based on the 30 September valuation.

"We have had another year of strong trading, with continued demand for our offer delivering double digit rent roll and pricing growth in the year," said chief executive officer Graham Clemett.

"We have made additional progress on disposals, recycling capital efficiently to invest in our value-enhancing programme of refurbishment projects across the portfolio, while further strengthening our balance sheet.

"As the leading provider of flexible work space to London's SMEs with a track record spanning more than 35 years, we remain well-positioned to capitalise on the growing shift towards flex and to support the SME community - the unsung heroes of the capital's economy."

Reporting by Josh White for Sharecast.com.