UK's Workspace Group rental income drops on lower occupancy, posts pretax loss

Workspace

10/06/2026 07:12

Overview
UK flexible workspace provider's FY net rental income fell 7.1% on disposals and lower occupancy
Trading profit after interest declined 9.4% year-over-year
Company posted a pretax loss, missing analyst expectations, due to lower property valuation

Outlook
Workspace Group sets medium-term ambition for trading profit before interest of over £125m per annum
Company expects near-term profitability to be impacted by asset disposals and higher interest costs
Workspace Group sees continued structural demand and plans investment in portfolio to drive earnings growth

Result Drivers
DISPOSALS AND LOWER OCCUPANCY - Co said net rental income fell mainly due to property disposals and lower occupancy, with some recovery in occupancy offset by reduced pricing
HIGHER VACANCY AND OPERATING COSTS - Co cited increased vacancy-related costs, higher marketing spend, and enhanced amenity provision as factors reducing underlying net rental income
MACROECONOMIC CHALLENGES - CEO said subdued business confidence and a challenging macroeconomic backdrop weighed on customer demand and decision-making

Company press release: ID:nRSJ6623Ha

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
FY Rental Income
 
GBP 113.40 mln
 
FY Pretax Profit
Miss
-GBP 120.50 mln
GBP 58.26 mln (7 Analysts)
FY EPRA NTA per Share
 
GBP 6.87
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy"
Wall Street's median 12-month price target for Workspace Group PLC is GBp401.00, about 20.3% above its June 9 closing price of GBp333.20
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)