Watkin Jones (AIM:WJG), the UK's leading developer and manager of residential for rent, signed six new contracts worth a combined £60 million in the third quarter to 30 June.
The contracts were priced at margins in line with the group's guidance, the property group said.
Watkin Jones added that its in-build projects remain on track against stated margin guidance, with earlier procurement of sub-contract packages and materials helping offset inflationary cost pressures. The new work includes Refresh schemes covering remediation, fire safety and refurbishment of existing purpose-built student accommodation assets, reflecting investor demand to modernise older stock and cut running costs.
The group is in active discussions with investors on a small number of further transactions that could complete in the fourth quarter.
Completing those deals is needed to deliver the growth in adjusted operating profit the Group expects in the second half versus the first, and management flagged that continued economic and political uncertainty over real estate funding liquidity poses an ongoing risk to their timing.
"The signing of six new contracts, with a combined value of c. £60 million at margins in line with guidance, signals further progress of our strategy to diversify the business, allowing us to strengthen our secured pipeline and enhance future revenue predictability", said chief executive Alex Pease.
He added that while short-term transaction liquidity remains constrained, the long-term fundamentals of the group's end markets remain attractive.
News Intelligence what this means for the company
Watkin Jones signed £60m of new contracts in Q3 at margins matching guidance, comprising six deals that include Refresh schemes for modernising older student accommodation assets. The company needs completion of further transactions in active discussion to deliver expected H2 profit growth, but flagged that real estate funding liquidity constraints pose an ongoing risk to deal timing.
The contract wins validate the diversification strategy and offset near-term transaction weakness, but delivery of H2 profit guidance now hinges on closing deals still in negotiation—a material execution risk in a constrained funding environment.
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