Workspace Group (WKP) Q3 2025 TU earnings summary

Executive summary

• Macroeconomic headwinds impacted customer activity in Q3, but focus remained on refurbishing and subdividing larger spaces to meet SME demand.

• 273 new lettings completed in Q3 with a total rental value of £6.0m; pricing momentum maintained despite softer demand.

• Good start to Q4 trading, with strong enquiry and viewing activity in early January.

• Balance sheet remains robust, supported by ongoing capital recycling and recent asset disposals.

Financial highlights

• Like-for-like rent per sq. ft. increased 1.1% in Q3 to £47.54; like-for-like occupancy declined 1.3% to 86.1%.

• Like-for-like rent roll down 0.6% to £106.8m; total rent roll decreased by 1.3% (£1.8m) since September 2024 to £138.3m.

• Net debt decreased by £9m in the quarter to £847m; cash and undrawn facilities at £233m as of 31 December 2024.

• LTV at 35% based on 30 September 2024 valuation.

Outlook and guidance

• CEO remains confident in capturing structural growth opportunities despite near-term market uncertainty.

• Trading in Q4 has started well, with the strongest week for viewings since before the pandemic.