WOTSO (WOT) H1 2025 earnings summary

Executive summary

• Flexspace income rose 9% to $15.8 million for the half-year ended 31 December 2024, with total revenue at $24 million and FFO at $2.1 million.

• Traditional leasing income increased 7% year-over-year to $7.9 million, with net rental income up 2% to $9.1 million.

• Flexspace business remains the primary income driver, accounting for 66% of total income, with average membership occupancy at 80% and 27 WOTSO sites in operation.

• Real estate portfolio valued at $299 million, with 97% occupancy and a $3.8 million gain in property valuations.

• Five new locations planned for rollout, with continued expansion funded by FFO, asset sales, and increased gearing.

Financial highlights

• Total revenue increased to $23.96 million from $22.02 million year-over-year; flexspace revenue up 9% to $15.8 million; traditional leasing income up 7% to $7.9 million.

• Net rental income rose 2% to $9.1 million; statutory profit before tax was $909,000, down from $4.07 million due to one-off items in the prior period.

• FFO per security at 1.3cps; basic and diluted EPS at 0.2 cents, down from 2.3 cents year-over-year.

• Distribution of $1.6 million paid to investors; 1.0 cent per security declared for April 2025.

• Operating cash flows of $10.7 million, with net cash outflow after investing and financing activities of $2.1 million.

Outlook and guidance

• FFO expected to increase to approximately $2.4 million in the second half, driven by organic growth and recent investments.

• Five new locations to be launched, with expansion funded by FFO, asset sales, and moderate increase in debt.

• Continued focus on suburban and regional market expansion and leveraging real estate expertise for long-term value.