Workspace reports ongoing strength amid usual seasonal downturn

Workspace Group reported a continuation of strong customer demand for much of its third quarter to 31 December on Thursday, with a seasonal fall in enquiries seen in December.

The FTSE 250 real estate investment trust said enquiries averaged 858 per month for the three month period, which was down from 1,009 in the quarter immediately prior.

Lettings in the quarter averaged 86 per month, compared to 85 per month in the same quarter last year.

Workspace said it had already seen “good levels” of customer demand so far in January, with 489 enquiries in the first two weeks.

It also reported continued success in the letting up of recently completed projects, with occupancy at The Record Hall in Holborn, which opened in May, reaching 73% by the end of December.

Good progress was also seen on Workspace’s refurbishment and redevelopment projects currently underway, with more than 483,000 square feet of new and refurbished space due to complete in 2018, and the integration of The Salisbury, Finsbury Circus, proceeding to plan.

The board said the company remained well-positioned with cash and undrawn facilities of £269m as at 31 December.

Its pro-forma loan-to-value ratio was 19% as at 31 December, based on its 30 September valuation.

“We've had another good quarter, with completed projects continuing to let up well and good progress being made on our many projects underway,” said Workspace chief executive Jamie Hopkins.

“As expected, enquiries fell during the seasonally quieter December and have picked up again in the first two weeks of 2018.

“With our marketing expertise, coupled with ownership of the right real estate, I believe Workspace is well positioned to take advantage of the growing interest from all kinds of businesses in our inspiring, well-connected spaces.”