Workspace Q2 occupancy slips as strategic actions weigh

(Sharecast News) - Real estate investment trust Workspace said on Thursday that occupancy slipped in Q2 as strategic actions temporarily reduced available stock.

Workspace said stabilised portfolio occupancy fell 0.5 percentage points to 82.8%, with the rent roll down 0.5% to £109.7m, while total portfolio occupancy declined 1% to 79.2%, cutting the rent roll 1.1% to £126.6m.

However, Workspace said that excluding the impact of newly completed space at Block J, Biscuit Factory, and units held back for furnished and case study projects, occupancy would have risen 0.1 points in the quarter.

The FTSE 250-listed group highlighted good progress on its strategic plan, including the launch of an allinclusive pricing model in September, with Workspace completing 18 unfurnished deals on 6,000 square foot at an average £60.57 psf, 8% above ERV, with another 18 deals under offer at £59.71 psf, 14% above ERV. Customer activity was softer, with 227 lettings and 96 renewals worth £7.9m, reflecting a subdued August before improvement in September.

Workspace also noted that it had continued to reshape its estate, completing disposals at Parkhall Blocks A&B and 66 Wilson Street for £13m. Since March 2025, cumulative disposals total £138.3m, with over £50m under offer and close to £200m in active discussions, though the company warned that an additional £100m+ of potential sales was unlikely to be achieved by March 2027 given market conditions.

It added that net debt rose to £754m, with £246m of cash and undrawn facilities and a proforma loan-to-value ratio of 36%.

As of 1115 BST, Workspace shares were down 5.79% at 345p.

Reporting by Iain Gilbert at Sharecast.com

See latest RNS on Sharecast