Workspace Group has announced its interim results for the six-months ended 30 September 2015. During the period the company’s EPRA NAV per share increased by 12.7% to £ 7.92 (from £7.03 as at 31 March 2015). Within this, the underlying property valuation has increased by 9.6% £1,6312m (31 March 2015: £1,423m). Profit before tax for the half year is down 5.3%% year-on-year to £163.4m but adjusted underlying earnings per share is up 48.8% to 12.5p and the interim dividend has been increased by 25% to 4.86p.
During the period, four properties were acquired for £91m and contracts exchanged for a further acquisition for £10m. Contracts were also exchanged for sale of an industrial estate for £23m whilst planning consent was received for two mixed-use redevelopments for 320 flats and two major refurbishments in Shoreditch and Hoxton. One refurbishment was also completed in the first half of the year with a further two refurbishments and one redevelopment expected to complete in the second half.
In terms of financing, the company amended and extended its bank facilities in June 2015. The facilities maturity extended has been extended from June 2018 to June 2020 whilst the margin on the debt has been reduced so that the overall cost of debt now runs at 4.8% (31 March 2015: 5.4%). The company currently has undrawn bank facilities and cash of £83m (31 March 2015: £140m) whilst its loan to value is 20% (31 March 2015: 19%).
Workspace Group increasing interim dividend by 25%, NAV per share up 12.7% : WKP