Here is a summary of the business update for Workspace Group PLC for the second quarter ending September 30, 2024
**Customer Demand and Lettings**The company saw good customer demand with 296 new lettings completed in the quarter, totaling an annual rental value of £7.4 million. This resulted in a slight drop in like-like-occupancy (down 0.7% to 87.5%) due to an unusually high number of customer vacations, including larger customers.
**Pricing**Pricing momentum was maintained with a like-for-like rent per sq. ft. increase of 1.6% in the quarter and 2.8% in the first half of the year, demonstrating the appeal of Workspaces offering.
**Disposals and Capital Recycling**Workspace made good progress on disposing of non-core assets, receiving £29.9 million in the first half and expecting a further £26.9 million in the second half. They continue to recycle this capital into their project pipeline.
**Balance Sheet and Financing**The company has a robust balance sheet with £144 million in cash and undrawn facilities and a proforma loan-to-value ratio of 35%. Net debt increased by £28 million in the quarter due to dividend payments.
**Refurbishment and Extension**Leroy House in Islington was recently refurbished and extended, delivering 58,000 sq. ft. of new space. This project exemplifies Workspaces sustainable approach and is designed to be their first Net Zero building.
**Half-Year Results**Workspace will publish its half-year results for the six months ending September 30, 2024, on November 22, 2024, with a presentation for analysts and investors.
Overall, despite the impact of customer vacations on occupancy, Workspace Group PLC maintains a positive outlook, with strong customer demand, pricing momentum, and ongoing capital recycling into new projects.