Forget about the drop in headline profits at Workspace (WKP); that's only because the previous year's portfolio value uplift of £297m was less in the year to March 2017, at £40m.
More importantly, the key metrics all pointed to another positive performance from the small business landlord, with the total rent roll growing by 14.5 per cent to £89.5m, thanks to a strong letting performance at recently completed projects and a 12.9 per cent jump in like-for-like rent per sq ft to £28.17. A sharp increase in the dividend means that the total payout has nearly doubled since 2015.
Adjusted trading profits rose by 15.5 per cent to £50.7m, while adjusted net asset value (NAV) grew by 3.3 per cent to 953p per share. Demand for small office space in London remained undiminished, with customer enquiries per month up from 1,029 a year earlier to 1,060, while new lettings were flat at 99 per month. This trend has continued into the new financial year, with no impact on demand from the recent business rates revaluation.
Three projects were completed during the year, adding £4m to the rent roll, while 12 refurbishments delivering 738,000 sq ft of new and upgraded space are currently under way.
Analysts at Peel Hunt are forecasting adjusted NAV of 1,045p per share at March 2018.
| WORKSPACE (WKP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 914.5p | MARKET VALUE: | £1.49bn | |
| TOUCH: | 914-915p | 12-MONTH HIGH: | 920p | LOW: 569p |
| DIVIDEND YIELD: | 2.3% | TRADING PROPERTIES: | nil | |
| DISCOUNT TO NAV: | 4% | |||
| INVESTMENT PROP: | £1.84bn* | NET DEBT: | 15% | |
| Year to 31 Mar | Net asset value (p**) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2013 | 348 | 76 | 53 | 9.67 |
| 2014 | 496 | 253 | 167 | 10.63 |
| 2015 | 703 | 360 | 231 | 12.04 |
| 2016 | 923 | 391 | 240 | 15.05 |
| 2017 | 953 | 89 | 55 | 21.07 |
| % change | +3 | -77 | -77 | +40 |
Ex-div: 6 Jul Payment: 7 Aug *Includes joint ventures **EPRA adjusted | ||||
