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Workspace Group PLC reported ‘resilient’ customer demand with stable occupancy and increased rent in the first quarter, which its chief executive officer said demonstrated ‘the appeal of our flexible offer’.
The London-based flexible workspace provider said it experienced ‘resilient levels of customer demand’ in the first quarter of the financial year ending March 31, 2024, completing 260 new lettings with a total rental value of £7.0 million per year.
Workspace also said like for like occupancy remained stable during the period at 89.2%, slightly down from 89.3% in the third and fourth quarters of the year ended March 31. Total rent roll increased by 0.2% to £140.4 million from £140.1 million.
Its like-for-like rent roll increased by 3.2% to £103.6 million from £100.4 million for the fourth quarter of financial 2023. Like-for-like rent per square foot increased 3.3% to £41.73 from £40.41.
‘We have had a good start to the new financial year highlighting the appeal of our flexible offer,’ commented CEO Graham Clemett, ‘As always, we are staying very close to our customers monitoring trends on a real time basis. While we remain vigilant, London’s [small and medium-sized enterprises] are proving resilient in the current economic climate.’
He added: ‘Our extensive property portfolio across London provides us with a rich opportunity to upgrade and reposition our buildings to meet both the changing needs of our customers and higher environmental standards.’
Workspace also reported a ‘robust balance sheet’ with £166 million of cash and undrawn facilities at 30 June. Net debt decreased to £834 million during the quarter.
Workspace’s operational highlights during the period included the completion, in June, of five non-core sales for a total of £82 million of light industrial and logistics properties. It also has exchanged contracts to sell a non-core industrial estate in Farnborough for £7 million, with completion expected in July.
Workspace also confirmed that Chair Stephen Hubbard will step down following its annual general meeting on Thursday. He is replaced by Duncan Owen, who has served as a non-executive director since 2021.
Shares in Workspace were down 3.8% at 476.40 pence on Thursday morning in London.
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