Workspace Group Plc Reports 43% Jump in Net Asset Value Following Increased Occupancy and Higher Rates

Workspace Group Plc Reports 43 Percent Jump in Net Asset Value

In a positive sign for the commercial property market, Workspace Group Plc has reported a significant 43 percent increase in full-year net asset value. The landlord saw a boost in occupancy and charged higher rates amidst a recovering market, leading to a strong performance.

Shares in the company surged as much as 6 percent, making Workspace the top percentage gainer on the FTSE-250 Midcap index on the London Stock Exchange. The real estate investment trust, which provides office spaces to small businesses, saw its EPRA net asset value (NAV) rise to 496 pence per share in the year to March 31 from 348 pence a year earlier.

Analysts at Liberum Securities are optimistic about Workspace’s future performance, stating, “(Full year 2014) may be hard to repeat but we still forecast Workspace to deliver the leading total returns among UK REITs on a 12-month view.” The company is currently trading at a 6 percent discount to one-year forward NAV, making it an attractive investment opportunity.

Last year, the UK commercial property sector experienced strong growth, with income returns from commercial assets reaching 6.8 percent, the highest level since 2010. This growth, fueled by low interest rates and a recovering economy, has also benefited other major REITs in the industry.

Workspace’s focus on refurbishment and redevelopment has paid off, driving up rents and increasing like-for-like rent per square foot to 15.28 pounds, an 8.5 percent rise from the previous year. The company’s properties in Brixton Road, London, have attracted prestigious clients such as Ralph Lauren Corp and the Metropolitan Police.

Chief Executive Jamie Hopkins expressed satisfaction with the company’s performance, stating, “Workspace’s focus on refurbishment and redevelopment has driven growth in rents during the period.” Workspace also raised its final dividend to 7.09 pence per share, demonstrating confidence in its financial position.

Overall, Workspace Group Plc’s strong performance reflects the resilience and potential of the commercial property market in the UK. Investors and analysts are optimistic about the company’s future prospects as it continues to deliver value and growth in a recovering economy.