Workspace H1 rental income and profits rise amid 'resilient customer demand'

Real estate investor Workspace said on Tuesday that both rental income and pre-tax profits had grown in the six months ended 30 September, driven by "resilient customer demand" throughout the period.

Workspace stated net rental income rose 36.8% to £56.1m, while pre-tax profits were up more than 950% at £35.8m amid "a rapid recovery" from the challenges of the Covid period.

The FTSE 250-listed group, which hiked its interim dividend from 7.0p to 8.4p, also said its trading profit after interest had risen 33.5% to £29.1m.

EPRA net tangible assets per share slipped 1.4% to £9.74 each, while property valuations remained broadly flat at £2.86bn, undrawn bank facilities and cash fell £179.0m to £263.0m and the group's loan-to-value ratio rose ten percentage points to 33%.

Chief executive Graham Clemett said: "Having delivered a rapid recovery from the challenges of the Covid period, I am delighted with our continued progress. Occupancy has now stabilised, pricing is steadily increasing, new space is letting up well and we have completed the integration of the McKay business. This robust operational performance has driven the strong financial results we are reporting for the first half.

"Despite the current economic challenges, we are well placed to deliver a strong trading performance for the full year. We have good momentum from the rental growth in the first half and we are seeing resilient customer demand into the second half of the year. We will continue to pursue our disposal programme where the reduction in income from disposals will be offset by a similar level of interest cost saving."

As of 0815 GMT, Workspace shares were down 1.10% at 476.32p.

Reporting by Iain Gilbert at Sharecast.com