Highlights
Strong Financial Performance
Profit before tax £100.8m for the half year (30 September 2012: £24.6m)
Adjusted trading profit after interest up 10% to £9.7m (30 September 2012: £8.8m)
Interim dividend per share increased by 10% to 3.54p (30 September 2012: 3.22p)
Continued Momentum in Demand and Pricing
Like-for-like rent roll up 3.8% since 31 March 2013 at £45.9m
Like-for-like rent per sq. ft up 2.6% from 31 March 2013 to £14.37
Like-for-like occupancy at 90.9% (31 March 2013: 89.9%)
Enquiries for space averaged 1,021 per month in the six months (31 March 2013: 1,037 per month)
Improving Capital Values
Underlying property valuation up 12% (£96m) in the six months to £921m
Net initial yield stable at 6.8% (March 2013: 6.9%)
EPRA net asset value per share up by 16% since March 2013 to £4.04 (31 March 2013: £3.48)
Good Progress on Asset Management Activity
Completed refurbishments performing well, with pricing ahead of our expectations
Mixed-use planning consents achieved at three properties for 1,340 residential units
Deal announced in October 2013 with Grosvenor for the sale of 800 unit residential redevelopment at the Biscuit Factory, SE16
Acquisition of Verulam House, WC1 in November 2013 for £18m, at capital value of £433 per sq.ft
Strong and Flexible Financial Base
Successful refinancing of all borrowing facilities on an unsecured basis, extending average maturity of debt to over seven years
Loan to value ratio of 35% (31 March 2013: 40%)
£86m of available facilities and cash
Commenting on the results, Jamie Hopkins, Chief Executive Officer said:
"Workspace has had a productive first half of the year and this strong set of results reflects good momentum across all areas of the business.
I believe that our strategy of owning the right properties, targeting and building direct relationships with customers, as well as intensively managing our portfolio continues to deliver value for our shareholders.
Demand from new and growing businesses across London remains strong and as well as continuing to make very good progress with our refurbishment and redevelopment activity I am also very pleased to announce the purchase of Verulam House on Gray's Inn Road, WC1. This acquisition fits extremely well within our portfolio and we remain active in targeting other strategic acquisition opportunities where appropriate."
