Factbox: WeWork and the new brand of office-space providers

Mitsubishi Estate

14/08/2019 21:41

Aug 14 (Reuters) - WeWork owner The We Company published
detailed financial statements for the first time on Wednesday,
revealing breakneck revenue growth and soaring losses as it
prepares for an initial public offering as early as next month.
    WeWork has sent a shockwave through the office real estate
sector globally with its model of taking on long-term leases and
renting them out to corporate clients on a flexible short-term
basis. 
    Its funky, Silicon Valley style co-working environment have
proved a hit, transforming it into a major player in the space
of a couple of years.
    The model, however, has raised skepticism among investors,
who are concerned that WeWork could be left holding substantial
liabilities in a downturn as clients evaporate. 
    Flexible office providers have dominated leasing in major
gateway cities, most notably London, New York and San Francisco,
a sign of growing demand by companies and not just the start-ups
and entrepreneurs that put coworking on the map.
    Below is a comparison on some of the top office space
providers in the market and how they compare on some key
metrics:
    
* WeWork (as of June 30)
    Total liabilities: $24.6 billion 
    Total square feet: Did not report square footage it manages
    Footprint: 528 locations in 111 cities across 29 countries
    Revenue: $1.54 billion (first half of 2019)

* Boston Properties Inc (as of June 30):
    Total liabilities: $13.25 billion 
    Total square feet: 50.9 million
    Total properties: 193
    Footprint: United States
    Market Cap: $19.67 billion
    Revenue: $733.7 million
    
* British Land Company Plc (as of March 31 - for H1, 2019):
    Total liabilities: 3.57 billion pounds ($4.30 billion)
    Total square feet: 22 million
    Total properties: 127
    Footprint: United Kingdom
    Market Cap: 4.41 billion pounds
    Revenue: 904 million pounds
    
* IWG Plc (as of June 30 - for H1, 2019):
    Total liabilities: 298.1 million pounds
    Total square feet: 50 million
    Total properties: More than 300
    Revenue: 1.30 billion pounds  ($1.57 billion)
    Footprint: 18 countries
    Market Cap: 3.72 billion pounds
    Cash-in-hand: 385.1 million pounds (Cash flow before net
growth capital expenditure, share repurchases & dividend)

* Mitsubishi Estate Co Ltd (as of Aug. 6)
    Total liabilities: 77.26 billion yen ($730.04 million)
    Total square: Not available
    Total properties: Not available
    Revenue: 265.88 billion yen
    Cash-in-hand: 243.34 billion yen (at the end of the year)
    Footprint: Japan, U.S., U.K., China, Singapore

($1 = 0.8295 pounds)
($1 = 105.8300 yen)

 (Reporting by C Nivedita, Vibhuti Sharma and Soundarya
Jayaraman in Bengaluru; Editing by Arun Koyyur)
 ((C.Nivedita@thomsonreuters.com; within the U.S. +1 646 223
8780, outside the U.S. +91 80 6749 9246;))