17th Nov 2021 09:39
(Alliance News) - Workspace Group PLC on Wednesday said it swung to profit in the first half of its current financial year
The London-based real estate investment trust said its trading profit after interest for the six months to September 30 was up 43% year-on-year to GBP21.8 million, driven by a 13% increase in net rental income.
Like-for-like rent roll was up by 2.1% to GBP87.3 million in the six months to September 30. The company also highlighted strong growth in like-for-like occupancy, up 3.7% year-on-year to 85.6%, with rent per square feet stabilising in the second quarter, up 0.3% to GBP35.50 after a 2.3% decline in the first quarter that ended on June 30.
Workspace highlighted that it had experienced strong customer demand, with enquiries, viewings and lettings now at pre-Covid levels. Pretax profit totalled GBP3.4 million for the half year, swinging from a loss of GBP110.4 million a year before.
"We have seen a strong recovery in our trading performance in the first half of the year after successfully managing through the challenges of the last year," noted Chief Executive Graham Clemett.
The company declared a dividend of 7.0 pence a share for a half year versus none paid a year before.
Net tangible assets per share were down 1.1% to GBP9.28 over the first half as value of the company's portfolio fell by 0.7% to GBP2.27 billion.
"We are excited by the significant growth opportunities in front of us, and the plans we have in place to capture them," added Clemett.
In addition, Workspace said it has acquired Busworks in Islington, London, for a total of GBP45 million. The acquisition is being funded from existing facilities.
The property provides 104,000 square feet of net lettable space across two conjoined warehouse buildings on 1.6 acres. It is currently operated as a multi-let business centre with customers on licences.
Busworks is 65% let and is being acquired at a net income yield of 3.4% and a capital value of GBP431 per square feet. Workspace intends to upgrade the building, it said.
FTSE 250-listed Workspace shares were trading 0.1% higher in London on Wednesday morning at 863.00 pence each.
By Evelina Grecenko; [email protected]
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