Workspace has announced its results for the year to 31 March 2015 and they are good. The EPRA net asset value per share was up 42% to 703p (2014: 496p). The EPRA earnings per share rose from 22.7p to 29.2p
The total property return was 37%. On a like-for-like basis the capital value per square foot rose to £280 from £213 as the net initial yield fell from 6.3% to 5.4%.
Like-for-like rent roll up 18% to £46.5m (March 2014: £39.5m), like-for-like rent per sq. ft. up 16% to £18.37 (March 2014: £15.87) and like-for-like occupancy was 92.2% vs. 91.4%. However, they had to empty or reduce occupancy at some centres while they refurbish them. this includes the Hatton Square Business Centre. They are also in the process of emptying the Biscuit Factory (at a £1.1m hit to rental income) as they get this ready for sale to Grosvenor who plan to turn this into residential accommodation.
The total dividend for the year is up 13% to 12.04p (2014: 10.63p).
At the end of the period they had undrawn facilities and cash of £140m and the loan to value ratio was 19% – down from 31% in March 2014.
Within the portfolio, two new and two refurbished business centres were opened and they say these are letting well. They have 14 further refurbishment and redevelopment projects underway. They bought five properties for £80m during the period and have exchanged contracts on another two since for £51m. On the sales front, they sold ten non-core industrial properties for £144m.
Six projects are underway that will deliver 1,690 residential units and 180,000 sq ft of new business space. In addition they have four properties with planning consent for a total of 539 residential units which will be marketed and sold in due course. They are also progressing discussions with planners on mixed-use planning schemes on a further six properties for 1,067 residential units.
They have also announced the acquisition of 338 Goswell Road, London EC1 for £34m. This is a former tobacco warehouse built in an Art-Deco style. It is located 300 metres south of Angel tube station, one stop from Old Street and King’s Cross St Pancras stations with six other Workspace buildings nearby. They say it has good floor to ceiling height and natural light on all elevations extends to five floors providing 46,000 sq. ft. of net lettable space. It is currently fully let to five customers with an average unexpired lease term of five years and three years to breaks. The building is being acquired at a capital value of £738 per sq. ft. off a low average passing rent of £29 per sq. ft. The net initial yield is 3.7% with excellent potential to reposition the building and capture significant rental uplifts in due course.
WKP : Workspace reports 42% rise in NAV