Workspace Group PLC (LSE:WKP) reported improved like-for-like (LFL) rent per square foot (sq ft) and growth in rent roll in the second quarter of the year.
In a trading update, the provider of flexible workspaces in London said it had seen a “strong conversion of demand into lettings”, with 317 lettings in the three months to end-September 2022 and 642 in the first half, with a total rent value of £17.5mln.
LFL rent jumped 1.3% in the quarter and 4.0% in the first half to £38.59 per sq ft, while LFL rent roll rose 3.6%, or £3.3mln, to £94.5mln in the first half.
Occupancy, meanwhile, remained stable at 89.6% LFL.
Graham Clemett, chief executive, commented: "Our trading performance in the first half of the year has been good with resilient demand, stable occupancy and improving pricing levels.
“It's a testament to our understanding of the needs of our SME customer base who want flexible, quality space at competitive prices - which we can offer in a unique portfolio of well-located properties across London.”
Workspace added it expects to complete the sale of the residential component of its mixed-use redevelopment in Wandsworth for around £55mln in December.
It also said the integration of its McKay acquisition is largely complete and performing ahead of its own original expectations.
The company is progressing with the planned disposal of McKay non-core assets, with timing dependent on market conditions.
“We are making progress on the sale of non-core assets, although it is likely to take longer than we originally envisaged given market conditions, as we remain focused on maximising value from these quality assets,” Clemett added.
Net debt as at 30 September 2022 was £937mln. Workspace reported an average cost of debt of 3.5% with 71% at fixed rates and a weighted average drawn debt maturity of 4.1 years.
Total facilities at the period-end were £1.2bn, with cash and available facilities of £263mln.