12th Nov 2013 11:18
LONDON (Alliance News) - Workspace Group Tuesday reported an increase in pretax profit for the first half and raised its interim dividend by 10%. The real-estate investment trust also announced a London building acquisition.
The company, which recently sold its mixed-use redevelopment in south London dubbed the "Biscuit Factory" for GBP51 million, posted pretax profit of GBP100.8 million for the period ended September 30, up from GBP24.6 million in 2012.
The company profited from a positive change in fair value of investment properties of GBP94.5 million compared to just GBP16.0 million a year earlier.
Revenue also crept up during the period to GBP35.7 million from GBP34.3 million a year earlier.
Overall, occupancy for the company's portfolio declined to 88.5% compared with 89.3% a year ago, while the average level of debt in the six months stood at GBP327 million down from GBP388 million in 2012.
Outside the reporting period, Workspace acquired Verulam House on Gray's Inn Road, near Kings Cross tube station in London, for GBP18.1 million.
The company said it would continue to target acquisitions to benefit shareholders in long-term.
"Demand from new and growing businesses across London remains strong," Chief Executive Jamie Hopkins said in a statement.
Commenting on the purchase of Verulam House, Hopkins said, "this acquisition fits extremely well within our portfolio, and we remain active in targeting other strategic acquisition opportunities where appropriate."
Workspace will pay an interim dividend of 3.54 pence per share in February 2014. This is an increase of 10% on the interim dividend paid last year of 3.22 pence per share.
The stock was trading at 507.00 pence, up 7.00 pence or 1.4%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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