Workspace Group (LSE:WKP) reported a modest increase in stabilised occupancy and rent roll for the first quarter ending 30 June, as chief executive Charlie Green pushes ahead with a repositioning plan set out at June's full-year results.
The London-focused flexible workspace owner completed 264 lettings and 111 renewals worth £11.9m in annual rental value, up from £10.7m a year earlier, even as enquiries and viewings softened and the conversion rate slipped to 14% from 15%.
Stabilised portfolio occupancy rose 0.6 percentage points to 82.3%, with rent per square foot up 0.9% to £46.87, lifting rent roll 1.9% to £110.2m.
Total portfolio occupancy edged up 0.3 points to 79.8%, with rent per square foot up 1.2% to £42.73, taking total rent roll to £128m.
Green said the improvement was "encouraging" but that "there is still a long way to go."
Workspace sold £12.6m of assets in the quarter, taking total disposals exchanged or completed to £138.4m against an original £200m target for the 2027 financial year.
The company is now considering more than £100m of additional disposals beyond that target, with over £200m of assets currently being marketed.
Three recent sales, Chiswick Studios, One Crown Square and Evergreen Studios, completed at an average 12.4% yield and a 22.3% average discount to March book value.
Net debt fell £18m to £740m, with cash and undrawn facilities at £260m and proforma loan-to-value steady at 35%.
The company's AGM takes place on 23 July, where it will address the Saba Capital Management presentation published on 17 June.
