Q1 Business Update

Workspace Group PLC ("Workspace"), London's leading owner and operator of sustainable, flexible work space, provides a business update for the first quarter ending 30 June 2024.

HIGHLIGHTS

• Resilient customer demand with 307 new lettings completed in the quarter, with a total rental value of £8.5m per annum
• Continued rental growth with like-for-like rent roll up 1.2% in the quarter to £111.8m
• Improved pricing with like-for-like rent per sq. ft. up 1.2% in the quarter to £46.28
• Like-for-like occupancy stable at 88.2% (31 March 2024: 88.2%)
• Further progress on disposal of non-core assets, with £8.1m exchanged for sale since 31 March 2024
• Robust balance sheet with £172m of cash and undrawn facilities and proforma LTV of 34% (based on 31 March 2024 valuation)

Graham Clemett, Chief Executive Officer, Workspace Group PLC, commented:

"It has been a good start to the year with occupancy stable and continued pricing improvements in the first quarter, reflecting the resilience of our diverse SME customer base and the appeal of our distinctive, flexible offer.

We are progressing with the disposal of non-core assets, recycling capital to invest in accretive refurbishment projects across the portfolio. We are looking forward to the opening of Leroy House in Islington in September, which will be our first Net Zero building and the latest delivery from our project pipeline.

Looking ahead, our scalable operating platform puts us in a strong position to continue to deliver near and long-term income and dividend growth, and we move into the second quarter of the year with positive momentum."

Customer activity

We have seen resilient demand in what is typically a quieter quarter. While enquiry levels are lower, there has been an improved conversion to viewings and lettings, with 307 new lettings completed with a total rental value of £8.5m.

Like-for-like rent roll was up £1.3m (1.2%) in the quarter to £111.8m. Like-for-like rent per sq. ft. increased by 1.2% in the first quarter to £46.28. Like-for-like occupancy was unchanged in the quarter at 88.2%.

Quarter Ended

1 Restated for the transfer in of Old Dairy, Shoreditch, where occupancy is now stabilised post-acquisition and the transfer out of The Biscuit Factory site in Bermondsey which is undergoing major refurbishment and redevelopment activity

2 Absolute change

Total rent roll decreased by £0.1m in the first quarter to £143.3m, as detailed below:

Portfolio activity

Since 31 March 2024, we have exchanged on the sale of two small non-core office properties in Reading and Staines and an industrial estate in Folkstone, for a total of £8.1m, in line with the March 2024 valuations. We have received £26.4m in cash from the completion of non-core disposals in the first quarter.

We expect to complete the refurbishment and extension of Leroy House in Islington in September 2024, delivering 58,000 sq. ft. of new space. This is a great example of our refurbishment-first, sustainable approach and will be our first Net Zero building.

Financing

Net debt reduced by £27m in the quarter to £828m, with cash and undrawn facilities of £172m as at 30 June 2024 and LTV at 34% on a proforma basis, based on the 31 March 2024 valuation.