Workspace Share News (WKP)

(Alliance News) - Workspace Group PLC on Tuesday bemoaned a drop in like-for-like occupancy over the second quarter, with customer "churn" proving higher than usual.

For the quarter ended September 30, the London-based provider of flexible workspace completed 296 new lettings, with a total rental value of GBP7.4 million per annum. In the half year, new lettings came to 603, with a rental value of GBP15.8 million per annum.

Pricing momentum was maintained, it added, with like-for-like rent per square foot up 1.6% in the second quarter, and up 2.8% in the half year to GBP47.00.

Like-for-like occupancy, meanwhile, was down 0.7% in the second quarter to just under 88%, with like-for-like rent roll down 1.4% in the half year to GBP109.0 million.

Workspace attributed this to a "higher than usual level of larger customers vacating in the period".

"We have seen good customer demand in what is typically a quieter quarter for lettings over the summer. Our strong track record of consistently driving pricing growth continued in the quarter, demonstrating the appeal of our offer to businesses looking for high quality, well connected and sustainable work space," said Chief Executive Officer Graham Clemett.

"We continue to recycle capital from disposals into our extensive project pipeline and have recently completed the refurbishment of Leroy House in Islington. This ongoing activity, coupled with the strong demand we see from London's SMEs, gives us confidence in the exciting growth opportunities ahead for Workspace."

Shares in Workspace Group were down 0.2% at 619.00 pence each in London on Tuesday morning.

By Holly Beveridge, Alliance News senior reporter

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