17th Apr 2025 10:49
(Alliance News) - Workspace Group PLC on Thursday reported a "strong" lettings performance in the final quarter of its financial year, though occupancy levels slipped and the company warned of continued pressure from macroeconomic conditions.
The London-based provider of flexible workspace said it completed 390 new lettings in the three months that ended March 31, with a total rental value of GBP10.1 million. That marked a 15% increase year-on-year and a significant improvement on the previous quarter.
Like-for-like rent per square foot rose 0.9% to GBP48.08, while like-for-like rent roll increased 1.4% to GBP107.9 million.
However, like-for-like occupancy fell by 1.0 percentage point to 85%, impacted by recent completions of large-unit refurbishments and ongoing customer move-outs, particularly among larger tenants.
Chief Executive Officer Lawrence Hutchings said Workspace had taken "strategic actions" to support retention and conversion amid a challenging backdrop, and would detail its plans in a strategy update alongside full-year results in June 5.
"The recent macroeconomic events combined with slower economic growth will continue to affect sentiment among some of our customers," Hutchings warned, but added: "Confidence in the long-term outlook for this market underpins my excitement in the structural growth opportunity that lies ahead."
Workspace said it sold six non-core properties during the quarter for GBP52.5 million, with a further disposal completed in April for GBP10.3 million. Disposals included sites in Reading, Soho, Raynes Park, and Brentford.
Total rent roll increased 0.8% over the quarter to GBP139.4 million, while net debt fell to GBP820 million from GBP847 million at the end of December. Cash and undrawn facilities stood at GBP260 million, and the loan-to-value ratio was 34% based on September 2024 valuations.
Shares in Workspace were down 0.8% at 423.00 pence in London on Thursday morning.
By Eva Castanedo, Alliance News reporter
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