Workspace Group increases full year 2013 dividend by 10%

DividendMax Ltd.

Workspace Group increases full year 2013 dividend by 10%

Strong Financial Performance

Profit before tax up 58% to £76.4m (2012: £48.5m)

Trading profit after interest up 12% to £17.9m (2012: £16.0m)

EPRA net asset value per share increased by 13% to £3.48 (March 2012: £3.08)

Total dividend for year up 10% to 9.67p per share (2012: 8.79p), final dividend of 6.45p proposed (2012: 5.86p)

Continued Momentum in Operating Performance

Like-for-like rent roll up 9% in year to £45.5m. Total rent roll £52.7m (March 2012: £50.2m)

Like-for-like occupancy up by 2.1% to 89.8% (March 2012: 87.7%)

Strong levels of demand, enquiries averaging 1,037 per month (2012: 1,009)

Growth and Outperformance in Capital Values

Underlying valuation increase of 8% (2012: 5%) to £830m (March 2012: £760m)

Investment net initial yield 7.3% (March 2012: 7.2%)

Total Property return of 13.8% compared to 3.2% for IPD Universe

Significant Activity and Asset Management

Four refurbishment projects completed (91,000 sq.ft.) with a further four projects (212,000 sq.ft.) underway

Four mixed use redevelopment projects underway with residential development partners delivering 693 residential units and Workspace receiving 189,000 sq.ft. of new business space, £22m cash and overage

A further two mixed use planning consents achieved since the year end for 948 residential units and 112,000 sq.ft. of new business space.

£13m from disposal of non-core properties with a further three properties under offer

£29m of property acquisitions completed in BlackRock Workspace joint venture

Strong and Flexible Financial Base

Refinance of bank debt facilities announced today

All facilities (£410m) will now be provided on an unsecured basis

Over 60% of funding from non-bank sources

Average maturity of facilities will increase to 7.8 years (March 2012: 3.2 years)

Loan-to-to value ratio of 40% (March 2012: 41%)

Commenting, Jamie Hopkins, Chief Executive of Workspace said:

"This strong set of results reflects our strategy of owning the right properties, which we intensively manage to drive occupancy and rent, while growing the capital value of our portfolio through an energetic programme of repositioning, refurbishing and redevelopment. 

We are also in the unique position of dealing directly with our customers across London, listening to them and offering them the future services they need. In this way we are becoming an essential partner, enabling their businesses to grow faster and, in turn, positioning us as the leading provider of space, environment and communities for these new and growing companies"

Companies mentioned