Workspace dividend soars by 40%. Workspace owns and manages more than 3.5 million sq. ft. of business space across 68 London properties. It is home to some 4,000 businesses including some of the fastest growing and established brands across a wide range of sectors.
Workspace’s results for the year ended 31 March 2017 show:
- EPRA net asset value per share of GBP9.53, up 3.3%
- Strong growth in net rental income up 6.9% to GBP79.2m, resulting in a 15.5% growth in adjusted trading profit after interest to GBP50.7m
- Profit before tax of GBP88.8m, lower than 2016 due to a smaller uplift in the property valuation
- An increase in total rent roll of 14.5% to GBP89.5m from rental growth at like-for-like properties and a strong letting performance at recently completed projects
- A 13.7% increase in like-for-like rent roll to GBP59.6m and a 12.9% increase in like-for-like rent per sq. ft. to GBP28.17 as core assets continue to perform strongly
- An underlying increase of 2.1% in the property portfolio to GBP1,844m
- A 40% increase in the total dividend to 21.07p reflecting strong financial results and confidence in the outlook for the business
- Loan to value at 13% with undrawn facilities (including cash) of GBP123m
Strategic progress and business update
- Conclusion of the successful BlackRock Workspace Property Trust in June 2016
- Planning consents achieved for one mixed-use redevelopment and four refurbishments, including one post the period end
- Three residential redevelopments contracted for sale in October 2016
- 13-17 Fitzroy Street, Fitzrovia acquired in April 2017 for GBP98.5m
- The Record Hall, a new flagship business centre in Holborn, opened in May 2017
- Uplands industrial estate sold for GBP50m in May 2017
Commenting on the results, Jamie Hopkins, Chief Executive Officer said: “This year, more than ever before, we have seen increasing evidence that our strategy is working. Demand, from all types of businesses across London, is firmly moving towards the highly designed and super connected space let on personalised and flexible terms that Workspace offers.
Our ability to capture the opportunities in this changing marketplace is evidenced by our strong results, with rent roll growing strongly and trading profit increasing by 15% to over GBP50m. This performance has supported the Board’s decision to increase the dividend by 40%.
Despite the uncertainty in the market following the EU Referendum, we remain confident of our ability to deliver long-term value for shareholders. We have a strong pipeline of refurbishments and redevelopments expected to deliver more than one million sq. ft. of new and upgraded space over the next three years. We continue to see healthy demand for our space and we have the financial resources to take advantage of acquisition opportunities.”
WKP : Workspace dividend soars by 40%