Interim / Quarterly Report • Jun 30, 2014
Interim / Quarterly Report
Open in ViewerOpens in native device viewer
16 July 2014
Workspace Group PLC ("Workspace"), London's leading provider of space to new and growing companies, announces its Interim Management Statement covering the period from 1 April 2014 to the date of this announcement, including the operational statistics for the quarter to 30 June 2014.
Jamie Hopkins, Chief Executive Officer commented:
"This has been a good start to the financial year with strong demand for our tailored space driving growth in pricing and rent roll. Our focused asset management and clear understanding of our customers' requirements continues to deliver value for shareholders.
We have increased our footprint across London, launching new buildings in areas attractive to our customers, such as Screenworks in Islington and Pill Box in Bethnal Green. In addition, our presence in Midtown has been strengthened with the acquisition of properties in Holborn and Farringdon. We continue to explore refurbishment and redevelopment options throughout the portfolio as well as making selective property acquisitions in the right locations where we can offer the services and facilities that suit our customers' needs."
For further information contact
Workspace Group PLC
Jamie Hopkins, Chief Executive Officer Graham Clemett, Chief Financial Officer
Web: www.workspace.co.uk
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow
Notes to Editors
About Workspace Group PLC
Tel: 020 7138 3300
Tel: 020 7861 3925
| Like-for-Like | Jun 2014 | Mar 2014 | Dec 2013 | Sep 2013 | Jun 2013 |
|---|---|---|---|---|---|
| Number of properties |
57 | 57 | 57 | 57 | 57 |
| Occupancy | 90.6% | 90.0% | 90.5% | 91.0% | 90.2% |
| Rent roll | £41.1m | £39.8m | £38.7m | £38.0m | £37.1m |
| Rent per sq. ft. | £14.96 | £14.59 | £14.07 | £13.75 | £13.55 |
The like-for-like property portfolio performance has been restated for both the current quarter and the prior quarter comparatives to exclude Hatton Square Business Centre, Barley Mow Centre, Enterprise House, Linton House and Bounds Green which are undergoing refurbishment and Poplar Business Park which will be redeveloped.
Like-for-like rent roll has increased by £1.3m in the quarter to 30 June 2014 with strong demand driving further uplift in pricing levels. Like-for-like rent per sq. ft. was up 2.5% to £14.96 in the quarter to 30 June 2014 and up 10.4% over the last twelve months.
Rental growth at our completed refurbishment and redevelopment projects is becoming an increasingly significant component of overall growth, with rent roll at completed projects up £1.2m in the quarter to 30 June 2014 to £7.1m.
We have been delighted with the level of interest and lettings at our two most recently completed schemes with occupancy at Pill Box, E2 which opened in March 2014, now at 53% (average rent per sq.ft of £29) and occupancy at Screenworks, N5 which opened in May 2014 already at 28% (average rent per sq.ft of £36). In both cases occupancy and pricing are well ahead of our initial expectations.
Total cash rent roll is £61.0m at June 2014, up 4.6% (£2.7m) in the first quarter.
| £m | |
|---|---|
| At March 2014 | 58.3 |
| Like-for-like growth | 1.3 |
| Increase in rent at completed projects | 1.2 |
| Rent reduction at current refurbishment and redevelopment projects | (0.5) |
| Acquisitions | 0.7 |
| At June 2014 | 61.0 |
Rent roll growth from the like-for-like portfolio and the completed projects of £2.5m in the quarter has been partly offset by a £0.5m reduction in rent at properties undergoing refurbishment and redevelopment. The increase in rent of £0.7m from acquisitions relates to the purchase of Vestry Street Studios in May 2014 for £12.6m and 12-13 Greville Street in April 2014 for £2.3m and an increase in rent roll of £0.1m at 60 Gray's Inn Road which was acquired in November 2013.
| Quarter Ended | ||||||
|---|---|---|---|---|---|---|
| Average number per month: |
Jun 2014 | Mar 2014 | Dec 2013 | Sep 2013 | Jun 2013 | |
| Enquiries | 1,222 | 1,292 | 917 | 1,010 | 1,033 | |
| Lettings | 104 | 103 | 80 | 84 | 74 |
Enquiry levels remain high reflecting the strength of demand we are seeing for space at our buildings across London. Lettings have increased over the last two quarters benefiting from the 111,000 sq.ft of new space at the recently opened Pill Box and Screenworks business centres.
We continue to make good progress in line with our plans across a range of refurbishment and redevelopment projects:
| Quarter | Quarter | Quarter | Quarter | Quarter | |
|---|---|---|---|---|---|
| ending | ending | ending | ending | ending | |
| 30 Jun | 31 Mar | 31 Dec | 30 Sep | 30 Jun | |
| 2014 | 2014 | 2013 | 2013 | 2013 | |
| Workspace Group Portfolio | |||||
| Number of estates | 84 | 83 | 83 | 83 | 84 |
| Lettable floorspace (million sq.ft.) | 4.5 | 4.5 | 4.6 | 4.6 | 4.6 |
| Number of lettable units | 4,701 | 4,653 | 4,543 | 4,539 | 4,543 |
| Cash rent roll of occupied units | £61.0m | £58.3m | £56.7m | £54.1m | £53.1m |
| Average annual rent per sq. ft. | £15.73 | £15.12 | £14.11 | £13.58 | £13.26 |
| Overall occupancy | 85.7% | 85.8% | 87.1% | 86.8% | 86.9% |
| Like-for-like lettable floor space (m sq.ft.) | 3.0 | 3.0 | 3.0 | 3.0 | 3.0 |
| Like-for-like cash rent roll | £41.1m | £39.8m | £38.7m | £38.0m | £37.1m |
| Like-for-like average annual rent per sq.ft. | £14.96 | £14.59 | £14.07 | £13.75 | £13.55 |
| Like-for-like occupancy | 90.6% | 90.0% | 90.5% | 91.0% | 90.2% |
| BlackRock Workspace Property Trust | |||||
| Number of estates | 13 | 14 | 14 | 15 | 15 |
| Lettable floorspace (million sq.ft.) | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Cash rent roll of occupied units | £6.2m | £6.4m | £6.4m | £6.5m | £6.3m |
| Average rent per sq. ft. | £14.84 | £14.66 | £14.57 | £14.48 | £13.96 |
| Overall occupancy | 89.1% | 87.7% | 89.1% | 88.5% | 88.0% |
Excludes storage space
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.