Workspace Group (WKP) H1 2026 earnings summary

Executive summary

• Performance met expectations amid a challenging economic environment, with operational improvements in customer retention and conversion rates, and a focus on stabilizing and rebuilding occupancy as part of the Fix, Accelerate, and Scale strategy.

• Strategic partnerships (Qube/Cube) and targeted disposals support portfolio optimization and future growth.

• Dividend held flat and underpinned by strong cash flow, reflecting commitment to shareholder returns.

• Early indicators show improved conversion (up to 17% in October) and retention rates, with Net Promoter Score rising 14 points to +47.

Financial highlights

• Underlying rental income increased by GBP 0.5 million to GBP 67.3 million, but total rental income fell 2.9% to GBP 58.7 million due to asset disposals.

• Trading profit after interest decreased 6.4% to GBP 30.6 million; adjusted underlying EPS fell to GBP 15.80.

• Loss before tax of GBP 71.1 million, reflecting a GBP 95.6 million decrease in property valuation.

• EPRA NTA per share fell to GBP 7.21, down 9.3% from March 2025.

• Interim dividend maintained at GBP 9.40 per share.

Outlook and guidance

• H2 earnings expected to be impacted by lower opening rent roll, large unit vacations, and higher average cost of debt, but cost efficiencies from H1 will benefit results.

• Full-year capital expenditure projected at GBP 60 million, offset by property disposals.

• No major refinancing required until 2027; significant flexibility in debt facilities.