Workspace hikes dividend by 20% – Workspace Group has published results covering the year ended 31 March 2019. Over the year the EPRA NAV rose by 4.7% to 1086p and its adjusted diluted earnings per share rose to 40.6p from 36.8p. The dividend has been increased by 20% to 32.87p.
Other highlights include:
- Net rental income up 16% to GBP111.0m
- Trading profit after interest up 19% to GBP72.4m
- Profit before tax GBP137.3m (2018: GBP170.4m) with strong increase in trading profit offset by lower uplift in property valuation and lower disposal profits than prior year
- Underlying increase of 2.7% in property valuation to GBP2,604m
- Loan to value stable at 22% with GBP127m of undrawn facilities
Good customer demand with enquiries averaging 1,048 per month (2018: 1,016) - Like-for-like rent roll up 2.2% to GBP76.0m
- Like-for-like occupancy at 90.9%, down 0.9% in the year impacted by new building launches
- Rent per sq. ft. up 3.8% to GBP39.80 Strategic progress and business update
- Three acquisitions totalling GBP213m completed in the year
- Three small office buildings sold for GBP52m, 23% above book value at 31 March 2018
- Two redevelopments exchanged for sale for GBP26m in cash and the return of a new 39,000 sq. ft. business centre
- Eight projects, totalling 341,000 sq. ft. successfully completed, launched and letting up well
Graham Clemett, interim chief executive officer said: “It’s been another busy year for Workspace with an impressive 19% growth in trading profit, on the back of which we are increasing the dividend by 20%. Our continuing success is a credit to the efforts of all our staff and is reflected in a near trebling of our dividend over the last five years.
Focus on the flexible space market is growing, with interest from an increasing range of companies. Our strong performance is testament to the fact that our differentiated model continues to appeal. We provide inspiring, well connected buildings and an offering that gives customers flexibility both in terms of lease length and how they use their space.
We have made good progress over the year in upgrading and expanding our property footprint across London. We completed eight refurbishments which have been met with very strong demand and acquired two well located properties in Camden and Shepherd’s Bush.
While businesses are inevitably cautious in light of the continuing political uncertainty, we are still seeing good customer demand for space. We believe our distinctive approach to the flexible office market is the right one and will continue to deliver value for shareholders.”
WKP : Workspace hikes dividend by 20%