REG - Workspace Grp PLC - WORKSPACE GROUP PLC THIRD QUARTER BUSINESS UPDATE

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RNS Number : 6480P  Workspace Group PLC  21 January 2026

21 January 2026

 

 

                                                             Workspace GROUP PLC

 

Third Quarter business update

PERFORMANCE IN LINE WITH EXPECTATIONS

 

Workspace Group PLC ("Workspace"), London's leading owner and operator of
sustainable, flexible work space, provides a business update for the third
quarter ending 31 December 2025.

 

Dave Benson, Chief Financial Officer, Workspace Group PLC, commented:

 

"We are encouraged by the progress made in the quarter against our Fix,
Accelerate, Scale strategy, with some improvement in occupancy and good
momentum on the disposal of low conviction assets. We know we still have a
long way to go to fully stabilise and rebuild occupancy, but these signs give
us confidence that our strategy is delivering and that we are on the right
path. We look forward to welcoming our new CEO, Charlie Green, in early
February as we accelerate the execution of our strategy."

 

Progress against strategy

 

·    Fix - operational improvements driving occupancy

o  Enquiries down in Q3 due to slower market, but enquiry to letting
conversion improved to 19% in the third quarter from 16% in the second quarter
(Q3 24/25: 14%)

o  Lettings: 322 completed with a total rental value of £10.2m (Q3 24/25:
273, with a total rental value of £6.0m)

o  Like-for-like(1) occupancy up 0.9% to 81.2% and like-for-like(1) rent per
sq. ft down 1.4% to £47.13, driving a 0.1% reduction in like-for-like(1) rent
roll in the quarter to £104.1m

·    Accelerate - portfolio optimisation on track in line with conviction
approach

o  Exchanged or completed on £67.9m of low conviction asset disposals in the
quarter

o  £106m of disposals now exchanged or completed against our £200m two-year
target

o  Commenced the roll-out of selective capital-light upgrades to high
conviction assets to drive occupancy and capture reversion

·    Scale - first innovative partnership to deliver accretive scale

o  Agreement signed in October with Qube to build a new hub for content
creators to access new sources of demand and expand our addressable market

o  Customer vacating The Old Dairy in early February ahead of Qube lease
start date later in the month

 

Financial highlights

 

·    Robust balance sheet with £221m of cash and undrawn facilities (Sept
2025: £167m) and LTV at 35% based on the September 2025 valuation (Sept 2025:
36%)

Customer activity

 

We have seen good demand with 322 new lettings completed in the third quarter
with a total rental value of £10.2m. Enquiries and viewings were impacted by
the usual seasonal downturn in activity in December, as well as the late
timing of the Autumn Budget, which created uncertainty and meant some
customers were deferring decisions.

 

Despite this, we have continued to deliver improved conversion of enquiries to
lettings through more targeted marketing and an enhanced sales process, in
line with our strategy. The table below reflects a 3% uplift in conversion of
enquiries to lettings to 19% from 16% in Q2 2025/26 and 5% uplift from Q3
2025/25.

 

                   Monthly Average                      Monthly Activity
            Q3            Q2        Q1        Q3        31 Dec  30 Nov  31 Oct

            2025/26       2025/26   2025/26   2024/25   2025    2025    2025

 Enquiries  568           666       634       628       428     567     708
 Viewings   444           519       495       457       313     479     540
 Lettings   107           109       93        91        124     79      119

 

We have had a good start to trading in the new year with 405 enquiries and 290
viewings completed by 16 January 2026.

 

We continue to prioritise the customer experience, delivering improvements to
our product and empowering our teams on the ground to drive customer
retention. Thanks to these efforts, as well as our focus on letting larger
vacant units, occupancy has improved in the quarter, increasing by 0.9% to
81.2%. We have maintained a pragmatic approach to pricing, particularly on
larger units, and as a result like-for-like rent per sq. ft. is down 1.4% to
£47.13. Occupancy and rents for smaller units, our core product, were stable
in the quarter.

 

                                        Quarter Ended
                                        31 Dec 25  30 Sep 25(1,2)  30 Jun 25(1,2)
 Like-for-like occupancy                81.2%      80.3%           82.6%
 Like-for-like occupancy change(3)      0.9%       (2.3%)          (0.1%)

 Like-for-like rent per sq. ft.         £47.13     £47.79          £47.73
 Like-for-like rent per sq. ft. change  (1.4%)     0.1%            (0.1%)

 Like-for-like rent roll                £104.1m    £104.2m         £107.7m
 Like-for-like rent roll change         (0.1%)     (3.2%)          (0.1%)

 

Total rent roll decreased by 3.1% (£4.1m) in the third quarter to £129.2m,
as detailed below:

 

 Total Rent Roll          £m
 At 30 September 2025(2)  133.3
 Like-for-like portfolio  (0.1)
 Completed Projects       0.2
 Disposals                (4.3)
 Other                    0.1
 At 31 December 2025      129.2

 

(1) Restated for the transfer in of Barley Mow, Chiswick, Pall Mall Deposit,
Ladbroke Grove and the development part of The Light Bulb, Wandsworth, where
occupancy is now stabilised post-refurbishment and the transfer out of Morie
Street, Wandsworth, Castle Lane, Victoria, Cannon Wharf, Surrey Quays, 338
Goswell Road, Angel (sold) and Peer House, Holborn (exchanged)

(2) Restated for the vacation of Workspace head office at Kennington Park.

(3)Absolute change

 

Portfolio activity

 

In November, we exchanged and completed on the sale of three assets (338
Goswell Road in Angel, Cannon Wharf in Surrey Quays and The Mille in
Brentford) for £41.7m. The sale was made in line with the September 2025
valuation and at a combined net initial yield of 7.9%.

 

In December, we completed the sale of Castle Lane in Victoria for £14.3m at a
net initial yield of 3.7%. We also exchanged on the sales of Peer House in
Holborn and Blocks A and B of Parkhall Business Centre in Dulwich, at a
combined net initial yield of 5.7%.

 

The refurbishment of Centro Workshops (formerly Atelier House) has completed
with 17 of the 41 new units already let or under offer to date, with an
average rent of £38 per sq. ft.

 

Financing

 

Net debt decreased by £53m in the quarter to £779m (30 September 2025:
£833m). Cash and undrawn facilities were £221m as at 30 September 2025, with
LTV at 35% on a proforma basis, based on the 30 September 2025 valuation.

 

- ENDS -

 

For further information, please contact:

 

Workspace Group PLC
                                020 7138 3300

Paul Hewlett, Director of Strategy & Corporate Development

Clare Marland, Head of Corporate Communications

 

FGS Global
 
 020 7251 3801

Chris Ryall

Guy Lamming

 

 
 

Notes to Editors

 

About Workspace Group PLC:

 

Workspace is London's leading owner and operator of flexible workspace,
currently managing 4.0 million sq. ft. of sustainable space at 59 locations in
London and the South East.

 

We are home to some 4,000 of London's fastest growing and established brands
from a diverse range of sectors. Our purpose, to give businesses the freedom
to grow, is based on the belief that in the right space, teams can achieve
more. That in environments they tailor themselves, free from constraint and
compromise, teams are best able to collaborate, build their culture and
realise their potential.

 

We have a unique combination of a highly effective and scalable operating
platform, a portfolio of distinctive properties, and an ownership model that
allows us to offer true flexibility. We provide customers with blank canvas
space to create a home for their business, alongside leases that give them the
freedom to easily scale up and down within our well-connected, extensive
portfolio.

 

We are inherently sustainable - we invest across the capital, breathing new
life into old buildings and creating hubs of economic activity that help
flatten London's working map. We work closely with our local communities to
ensure we make a positive and lasting environmental and social impact,
creating value over the long term.

 

Workspace was established in 1987, has been listed on the London Stock
Exchange since 1993, is a FTSE 250 listed Real Estate Investment Trust (REIT)
and a member of the European Public Real Estate Association (EPRA).

 

Workspace® is a registered trademark of Workspace Group PLC, London, UK.

 

LEI: 2138003GUZRFIN3UT430

 

For more information on Workspace, visit www.workspace.co.uk
(http://www.workspace.co.uk)

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