Workspace Group (WKP) Q1 2025 TU earnings summary

Executive summary

• Achieved 307 new lettings in Q1 2024/25, totaling £8.5m in annual rental value, reflecting resilient demand despite a typically quieter quarter.

• Like-for-like rent roll increased 1.2% to £111.8m, and like-for-like rent per sq. ft. rose 1.2% to £46.28; occupancy remained stable at 88.2%.

• Progressed with non-core asset disposals, exchanging £8.1m since March 2024 and receiving £26.4m in cash from completed disposals.

• Refurbishment and extension of Leroy House, Islington, to complete in September 2024, marking the first Net Zero building in the portfolio.

Financial highlights

• Net debt reduced by £27m in the quarter to £828m.

• Cash and undrawn facilities stood at £172m as of 30 June 2024.

• Proforma loan-to-value (LTV) ratio at 34%, based on 31 March 2024 valuation.

• Total rent roll decreased by £0.1m in the quarter to £143.3m, mainly due to disposals.

Outlook and guidance

• Scalable operating platform positions the group for continued near- and long-term income and dividend growth.

• Entering Q2 2024/25 with positive momentum and focus on sustainable, flexible workspace offerings.