Workspace increases its 2015 interim dividend by 10%

DividendMax Ltd.

Workspace increases its 2015 interim dividend by 10%


Financial Performance

Profit before tax up £65.9m (61%) to £173.7m (30 September 2013: £107.8m)

Adjusted trading profit after interest up £2.7m (28%) to £12.4m (30 September 2013: £9.7m)

EPRA Net Asset Value per share up £1.01 (20%) in the six months to £5.97 (31 March 2014: £4.96)

Adjusted underlying earnings per share up 27% to 8.4p (30 September 2013: 6.6p)

Interim dividend per share up 10% to 3.89p (30 September 2013: 3.54p)

Operating Performance

Total rent roll up 5.1% (£3.0m) to £61.3m in the six months (31 March 2014: £58.3m)

Like-for-like rent roll up 6.5% (£2.6m) in the six months to £42.4m and up by 11.6% (£4.4m) from 30 September 2013

Like-for-like occupancy stable at approx. 90%, with like-for-like rent per sq.ft, up 6.0% to £15.47 (31 March 2014: £14.59)

Strong demand at recently completed buildings, with rent roll up 39% (£2.3m) in the six months to £8.0m (31 March 2014: £5.7m)

Property Valuation

Underlying property valuation up 15% (£157m) in the six months to £1,230m (31 March 2014: £1,078m)

Like-for-like capital value per sq.ft (excluding industrial portfolio sold) up 12% to £227 (31 March 2014: £202)

Like-for-like net initial yield (excluding industrial portfolio sold) now 6.0% (31 March 2014: 6.4%)

Asset Management Activity 

12-13 Greville Street, EC1 acquired in April 2014 for £2m and Vestry Street Studios, N1 acquired for £13m in May 2014

Disposal of a portfolio of ten non-core industrial properties completed in October 2014 for £44m, £11m ahead of the March 2014 valuation

Acquisition of 160 Fleet St, EC4 completed in November 2014 for £30m

Jamie Hopkins, Chief Executive Officer of Workspace, commented:

"This has been a great first half of the financial year, with continued strong demand and income growth across the portfolio. Our newly opened centres, Pill Box and ScreenWorks, are performing well ahead of our expectations, and we have two further business centres opening on Bankside and Wandsworth in the second half of the year.

"We are progressing well with the next phase of our redevelopment and refurbishment activity, as well as looking to acquire further complementary properties in strategic locations across London where we can utilise the strength of our brand, marketing and asset management skills to generate superior value for our shareholders."

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