Workspace Group share price rises as trendy offices bring in higher rental income

 
Alys Key
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The group's central London sites include swish offices in the City and Clerkenwell (Source: Workspace Group)

Shares in trendy office company Workspace Group are up today after it announced a jump in rental income and the value of its properties.

The figures

Rent brought in £46.1m in the six months to 30 September, an increase of 21 per cent. Meanwhile an underlying increase of 3.5 per cent put the property valuation at £2.1bn.

This helped the group to record a huge jump in pre-tax profit to £123.7m, up from £7.1m.

Occupancy was up at 92.5 per cent while the average rent per square foot climbed 2.7 per cent to £33.56.

The board upped its interim dividend by 30 per cent to 8.84p. Shares were trading up 3.15 per cent at 934.5p before lunchtime.

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Why it's interesting

The group has increased the value of its rental properties by targeting desirable locations in London, recently snapping up The Salisbury in Finsbury Circus for £158.7m

But it has also disposed of some sites, including two industrial estates and a residential redevelopment during the period.

Analysts at Peel Hunt said there were "no signs of weakness" in the group and said it was "one of the few London based companies still benefiting from rental growth".

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What Workspace said

Chief executive Jamie Hopkins said: "We have seen good customer demand in the first half of the year, driven by our ability to provide well connected, inspiring space on flexible terms to an increasingly wide range of businesses.

"Owning our properties in the right locations across London, combined with a deep understanding of and direct relationships with our customers, provides us with a key market advantage and further prospects for growth."

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