Workspace H1 net rental income up, hikes dividend

Workspace reported a jump in net rental income for the first half and hiked its dividend by 40%, but pre-tax profit for the period declined.

The FTSE 250 office space provider said pre-tax profit slumped to £7.1m from £163.4m, but net rental income rose 6% from the end of September 2015 to £38m and adjusted underlying earnings per share were up 15.2% to 14.4p.

However, EPRA net asset value, which reflects the value of the company’s buildings, was down 0.9% to £9.15.

Workspace bumped up its dividend per share to 6.80p from 4.86p, attributing the increase to a substantial growth in trading profits in recent years.

Like-for-like rent roll up was up 5.5% from the end of March to £51.5m, while LFL occupancy came in at 90.3% versus 90% at the end of March.

Chief executive officer Jamie Hopkins said: "Workspace has delivered another half of good like-for-like rental growth as demand for our space remains strong. In addition, our completed refurbishments and redevelopments are attracting very strong customer demand, with overall rent roll at these properties increasing by 46% in the six months.

“As we look forward to the second half of the year, we remain alert to the potential challenges of operating in uncertain economic conditions and times of political change. However, we remain confident in the resilience of our customer base and are committed to our strategy of driving income growth and enhancing shareholder value over the long-term."