Demand for serviced office space in London remains buoyant as Workspace Group reports strong half-year results that has seen its net asset value (NAV) increased by 2.7% to £11.15 per share.
The flexible office space provider has reported net rental income up 11% in the six months to 30 September 2019 to £60.1m, while its total rent roll was up 2.3% to £130.4m.
The group averaged 127 per month in the period compared to 92 a month in the corresponding period last year. Enquiries for its office space averaged 1,109 per month compared with 1,020 last year.
In the period it also exchanged contracts to sell three properties for £49.5m at a 27% premium to 31 March 2019 valuation. It also completed four refurbishment projects that delivered 200,000 sq ft, while five further refurbishment projects and four redevelopment s are underway which will deliver a further 309,000 sq ft.
The group announced a 10% increase in its interim dividend to 11.67p. Earnings per share for the period was 22.1p, up from 20.2p on 30 September 2018.
Recently appointed chief executive Graham Clemett said: “Our robust enquiry and letting levels reflect the appeal of our offering as an increasing number of occupiers look for flexible terms for their office space requirements. The 10% increase in the interim dividend we have announced today reflects our success to date and the Board’s continued confidence in our future growth prospects.
“It will come as no surprise that I remain committed to our proven and successful strategy. My priority is to ensure that we continue to invest in and adapt our operational capabilities to remain at the forefront of this exciting and growing market. Our strong balance sheet also gives us the ability to take advantage of acquisition opportunities as they arise.”
WKP : Workspace posts 2.7% jump in NAV as demand for serviced office space in London continues