Workspace delivers 'strong lettings performance' in Q4

(Sharecast News) - Real estate investment trust Workspace said on Thursday that it had delivered a "strong lettings performance" in Q4, partly driven by strategic actions it has taken to counter current "macroeconomic and competitive pressures". Workspace said it had made 390 new lettings in the three months ended 31 March, with a total rental value of £10.1m.

Like-for-like rent per square foot was up 0.9% at £48.08 and like-for-like rent roll improved 1.4% to £107.9m, while like-for-like occupancy was down one percentage point at 85.1%.

Workspace also said it had made continued progress on capital recycling from the disposal of non-core assets, having completed or exchanged on the sale of six properties for a total of £52.5m in Q4.

Chief executive Lawrence Hutchings said: "We have delivered a strong lettings performance in Q4, resulting in like-for-like rent roll growth, partly driven by strategic actions we've taken to counter current macroeconomic and competitive pressures, support retention and improve conversion. These actions will help make Workspace a more agile, efficient business and drive occupancy back up to sustainably higher levels. I look forward to providing more detail on this, and our wider short- and medium-term plans, as part of a strategy update that will be presented alongside our full-year results in June.

"Looking ahead to our new financial year, recent macroeconomic events combined with slower economic growth will continue to affect sentiment among some of our customers. Whilst it will take some time for us to work through the impact of the larger unit vacations we have seen, and expect to see in the first half of this year, we remain laser-focused on what we can control, including costs, as we continue to prioritise a recovery in occupancy and rent roll."

As of 0935 BST, Workspace shares were down 0.47% at 424.50p.

Reporting by Iain Gilbert at Sharecast.com