Workspace Group Plc · LSE:WKP
Workspace — FY2024/25 Earnings Presentation
53 slides from Workspace's earnings presentation, Jun 5, 2025
Slide 1: Full Year Results 2024/25: Investor & Analyst Presentation
Workspace Group PLC Full Year Results 2024/25: Investor & Analyst Presentation 5 June 2025
Slide 2: Agenda
Full Year Results 2024/25 AGENDA Lawrence Hutchings, CEO Dave Benson, CFO Lawrence Hutchings, CEO
Slide 3: Overview
Full Year Results 2024/25 OVERVIEW
Slide 4: Overview
Full Year Results 2024/25 OVERVIEW Solid performance in 2024/25, despite decline in occupancy Extensive, independent research provides confidence in our market opportunity Our evolved strategy will embed operational excellence to fix our backyard, accelerate income growth and deliver longer-term, ac
Slide 5: A Robust Performance
Full Year Results 2024/25 A ROBUST PERFORMANCE 1. Restated for current LFL portfolio 2. Absolute change 3. Underlying change excluding capital expenditure and disposals
Slide 6: Financial Review
Full Year Results 2024/25 FINANCIAL REVIEW
Slide 7: Robust Customer Demand
Full Year Results 2024/25 ROBUST CUSTOMER DEMAND ROBUST CUSTOMER DEMAND STRONG CONVERSION 900 140 25% 800 120 20% 700 100 600 15% 80 500 60 10% 400 40 300 5% 200 20 100 conversion 0 0% Q1 23/24 Q2 23/24 Q3 23/24 Q4 23/24 Q1 24/25 Q2 24/25 Q3 24/25 Q4 24/25 0 Q1 23/24 Q2 23/24 Q3 23/24 Q4 23/24 Q1 24
Slide 8: Underlying Income Growth
Full Year Results 2024/25 UNDERLYING INCOME GROWTH £m Mar 24 Change 133.2 +1.7% Unrecovered service charge costs (4.7) Empty rates and other non-recoverable costs (9.8) Services, fee, commissions and sundry income 1.3 120.0 -0.3% Disposals 6.2 126.2 -3.2% Administrative expenses (25.3) Net finance c
Slide 9: Capital Discipline Maintained
Full Year Results 2024/25 CAPITAL DISCIPLINE MAINTAINED £m Mar 24 Investment property valuation 2,446 Net debt (855) Other (42) 1,549 EPRA NTA per share £8.00 Mar 24 Adjusted Dividends Property Other Mar 25 trading profit paid revaluation after interest Mar 24 Capital Disposals Revaluation Mar 25 ex
Slide 10: Valuation
Full Year Results 2024/25 VALUATION 1. Underlying movement
Slide 11: Flexible Debt Facilities Successfully Extended
Full Year Results 2024/25 FLEXIBLE DEBT FACILITIES SUCCESSFULLY EXTENDED Mar 24 1 Maturity Bank facilities drawn £194m Fixed rate borrowings £665m Private placements 300 300 3.3% 2025-2029 Drawn debt £859m Green bond 300 300 2.3% 2028 Undrawn bank facilities and cash £145m Secured loan 65 65 4.0% 20
Slide 12: Financial Considerations for 2025/26
Full Year Results 2024/25 FINANCIAL CONSIDERATIONS FOR 2025/26 Macroeconomic uncertainty continues to impact sentiment As previously announced, earnings will be impacted by: • a lower opening rent roll • continued pressure on occupancy from further large unit vacations • additional costs including i
Slide 13: From Legacy Player to Market Leader
Full Year Results 2024/25 FROM LEGACY STRATEGY PLAYER TO FIX ACCELERATE SCALE MARKET LEADER EMBEDDING OPERATIONAL EXCELLENCE TO DELIVER AN INCOME-LED DIVIDEND GROWTH BUSINESS
Slide 14: Fundamental Questions on the Market and How We Operate
Full Year Results 2024/25 FUNDAMENTAL QUESTIONS ON THE MARKET AND HOW WE OPERATE
Slide 15: London's SME Market – Consistently Stronger Growth
Full Year Results 2024/25 LONDON’S SME MARKET – CONSISTENTLY STRONGER GROWTH 0.7 (m) 0.6 0.5 0.4 0.3 0.2 0.1 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Source: ONS, OC&C analysis 1. 2014-2024 (#m); 0-250 full time employee SMEs
Slide 16: Growing Number of Our Target Size SMEs
Full Year Results 2024/25 GROWING NUMBER OF OUR TARGET SIZE SMES 4.5% • 4.0% 50-99 3.5% employees 20-49 3.0% employees 2.5% 2.0% 1.5% 10-19 employees • 1-9 1.0% employees(3) 0.5% 0.0% -0.5% • -1.0% -1.5% -2.0% -2.5% -3.0% -3.5% -4.0% -4.5% -2.0% -1.5% -1.0% -0.5% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3
Slide 17: Creator and Innovator SMEs Are Higher Growth
Full Year Results 2024/25 CREATOR AND INNOVATOR SMES ARE HIGHER GROWTH Source: OC&C and The Data City 1. Includes SMEs with at least 3 years’ headcount data
Slide 18: Growth in Supply Focused on Office Space in Central Locations
Full Year Results 2024/25 GROWTH IN SUPPLY FOCUSED ON OFFICE SPACE IN CENTRAL LOCATIONS No. of sites 2500 2000 1500 1000 500 0 2015 2019 2021 2025 Pre-Covid: Covid: Post-Covid: • Competition for SMEs has intensified within an increasingly fragmented market • Our largest, best-capitalised competitors
Slide 19: Significant Headroom in Our Target Market
Full Year Results 2024/25 SIGNIFICANT HEADROOM IN OUR TARGET MARKET Creators Other & Innovators Sweet Spot Target market London-based SMEs, 2-100 FTE 2-100 FTE 2-100 FTE 1-250 FTEs SMEs SMEs in same postcode district Creative and innovative SMEs, 4+ as a Workspace Location years old, in the same pos
Slide 20: Our Unique Business Model Creates Compelling Synergies and Benefits
Full Year Results 2024/25 OUR UNIQUE BUSINESS MODEL CREATES COMPELLING SYNERGIES AND BENEFITS Building Our leading climate customer resilience proposition Delivering Income and Delivered capital by our great growth people Supported Creating by our smart a unique operating portfolio platform
Slide 21: A Strategy to Deliver Income-Led Shareholder Value
Full Year Results 2024/25 A STRATEGY TO DELIVER INCOME-LED SHAREHOLDER VALUE FIX ACCELERATE SCALE Deliver step change in Aligning portfolio to market Leverage unique attributes of operational business opportunities our business model (operations and investment) Stabilise and rebuild occupancy Convic
Slide 22: Doubling Down on Operational Excellence
Full Year Results 2024/25 WE’RE DOUBLING DOWN ON OPERATIONAL EXCELLENCE REFLECTING AN INCREASINGLY COMPETITIVE MARKET Agile, responsive and efficient Relevant and differentiated Seamless and consistent
Slide 23: Enhancing Structure, Systems and Culture While Streamlining Our Cost Base
Full Year Results 2024/25 ENHANCING STRUCTURE, SYSTEMS AND CULTURE WHILE STREAMLINING OUR COST BASE Flat matrix-style organisation. Greater empowerment at customer interface. Built on greater market awareness, accountability and pace Better data providing real-time insights, which drive faster actio
Slide 24: What Operational Excellence Looks Like for Our Customers
Full Year Results 2024/25 WHAT OPERATIONAL EXCELLENCE LOOKS LIKE FOR OUR CUSTOMERS
Slide 25: Focus on Customer Retention; Targeted Marketing; Invest in Product
Full Year Results 2024/25 ACCELERATE SCALE Focus on customer retention More targeted marketing to attract new customers in our core growth segments Invest in our product and experience
Slide 26: Focus on Customer Retention
Full Year Results 2024/25 FOCUS ON CUSTOMER RETENTION Proactive approach • Improving our product • Leveraging our centre teams • Enhancing customer experience • Building an ecosystem of value- add services
Slide 27: Customer Acquisition and Leasing
Full Year Results 2024/25 CUSTOMER ACQUISITION AND LEASING Full-funnel marketing strategy – from driving demand to cost-effectively converting to deals First-ever TV ad campaign – initial 12- week period to bring to life our offer and creative customer base Optimising sales performance with enhanced
Slide 28: Improving Our Product: Pilot Projects Vox Studios & Leather Market
Full Year Results 2024/25 IMPROVING OUR PRODUCT PILOT PROJECTS: VOX STUDIOS & LEATHER MARKET Location Vauxhall Lettable area (sq. ft.)* 106,000 Occupancy* 75.4% Rent Roll* £3.7m # of Customers* 85 # of Units* 144 Location London Bridge Lettable area (sq. ft.)* 144,000 Occupancy* 86.3% Rent Roll* £6.
Slide 29: Strategy in Action
Full Year Results 2024/25 STRATEGY IN ACTION Bactobio at Vox Studios John Doe Communications at VIDEO Leather Market Vox Studios after Leather Market after
Slide 30: Enhancing Customer Experience
Full Year Results 2024/25 ENHANCING CUSTOMER EXPERIENCE We know what our Community is We’re putting more customers want all important people on the Centre staffing levels from their space ground to foster that community Noticeboard / community news of our customers agree being with Workspace helps t
Slide 31: Creating an Ecosystem of Value-Add Services
Full Year Results 2024/25 CREATING AN ECOSYSTEM OF VALUE-ADD SERVICES SERVICES AND ADVICE ENABLING OUR CUSTOMERS TO SCALE FASTER Driven by customer insights – we interviewed 30+ customers to understand their needs and challenges “Connecting with other customers who can provide the services we need,
Slide 32: Multiple Strategic Levers to Stabilise and Rebuild Occupancy
Full Year Results 2024/25 MULTIPLE STRATEGIC LEVERS TO STABILISE AND REBUILD OCCUPANCY
Slide 33: Operational Excellence Drives Income and Dividend Growth
Full Year Results 2024/25 OPERATIONAL EXCELLENCE DRIVES INCOME AND DIVIDEND GROWTH c.£10 million Annual fixed increases (c.5%) 2-yr lease expiry (mark to mkt) Subdividing larger spaces Increased capital recycling
Slide 34: Portfolio Lifecycle
Full Year Results 2024/25 FIX SCALE Portfolio Lifecycle Accelerate capital recycling based on conviction approach Roll out enhancements to our assets and operating platform
Slide 35: Portfolio Lifecycle
Full Year Results 2024/25 PORTFOLIO LIFECYCLE • Growing sustainable recurring • Increasing occupancy, growing income rent, creating more small and • Maintaining customer proposition. micro unit space • Delivering income returns that • Investing in customer proposition comfortably exceed our weighted
Slide 36: A Conviction Approach to Portfolio Management and Capital Allocation
Full Year Results 2024/25 A CONVICTION APPROACH TO PORTFOLIO MANAGEMENT AND CAPITAL ALLOCATION AS AT 31 MARCH 2025 High conviction Conviction Low conviction Excluding non-core properties
Slide 37: Assets with Best Strategic Fit Outperform on Occupancy and Income Growth
Full Year Results 2024/25 OUR ASSETS WITH THE BEST STRATEGIC FIT OUTPERFORM ON OCCUPANCY AND INCOME GROWTH The top performers all benefit from coverage of many or all our brilliant basics standards ¹ Metal Box Factory Floorplate Local amenities & flexibility infrastructure Record Hall The Frames Vox
Slide 38: Conviction Approach to Capital Recycling
Full Year Results 2024/25 CONVICTION APPROACH TO CAPITAL RECYCLING Proceeds will fund: • Capex in conviction and high conviction buildings • Reduce leverage • Establish presence in emerging London SME markets
Slide 39: Portfolio Repositioning Drives Income and Capital Growth
Full Year Results 2024/25 PORTFOLIO REPOSITIONING DRIVES INCOME AND CAPITAL GROWTH Subdivision Invest Enhance amenity CONVICTION CAPITAL Presentation & ALLOCATION experience ¹ Recycle assets Mature SME market (lower growth /yield ) Fund capex, selective investment and lower leverage Not aligned with
Slide 40: Targeting Emerging SME Locations; Generating More Income from Existing Assets
Full Year Results 2024/25 FIX ACCELERATE Targeting emerging SME locations, driven by market research Generating more income from existing assets Operational excellence provides the headroom to leverage the platform
Slide 41: Identifying Emerging SME Adjacent Locations
Full Year Results 2024/25 IDENTIFYING EMERGING SME ADJACENT LOCATIONS
Slide 42: Summary
Full Year Results 2024/25 SUMMARY Our strategy is underpinned by data and insight and will be delivered through operational excellence • Focus on customer retention • More targeted marketing to attract new customers • Invest in our product and experience • Portfolio Lifecycle approach • Accelerate c
Slide 43: Q&A
Full Year Results 2024/25 Q&A
Slide 44: Appendix
Full Year Results 2024/25 APPENDIX
Slide 45: Leading Provider to a Diverse and Growing SME Market
Full Year Results 2024/25 LEADING PROVIDER TO A DIVERSE AND GROWING SME MARKET Information, Communication & Technology 5% 2% Professional, Technical & Consultancy Services 3% 16% 3% Wholesale & Retail 3% Arts, Entertainment & Recreation 5% Marketing Construction & Property 5% 16% Financial Services
Slide 46: What Makes Us an Inherently Sustainable Business
Full Year Results 2024/25 WHAT MAKES US AN INHERENTLY SUSTAINABLE BUSINESS • We champion adaptive reuse of buildings • Robust operational platform with • We enable local employment, local vertical integration providing granular spend and business growth • Over 1.2m sq. ft. refurbished over last 10 f
Slide 47: Top Decile Scores Across Various ESG Benchmarks
Full Year Results 2024/25 TOP DECILE SCORES ACROSS VARIOUS ESG BENCHMARKS REFLECT OUR MARKET LEADING APPROACH AND IMPACT Energy intensity 15% lower than 2030 net zero target for offices. Over 60% of the portfolio fully electric, EPC A/B. Track record of reducing emissions more than 35% since 2020. 4
Slide 48: Our Portfolio Provides Choice and Good Value
Full Year Results 2024/25 OUR PORTFOLIO PROVIDES CHOICE AND GOOD VALUE 130 120 110 100 90 80 70 60 50 40 30 20 10 0 ERV per sq. ft. property average ERV per sq. ft. property range LFL ERV per sq. ft. average 1. From March 2025 Valuation
Slide 49: Completed Projects
Full Year Results 2024/25 COMPLETED PROJECTS 1. This was acquired as a completed project as part of the McKay acquisition in May 2022 Parkhall, Dulwich Leroy House, Islington Barley Mow Centre, Chiswick Pall Mall Deposit, Ladbroke Grove
Slide 50: Projects Underway
Full Year Results 2024/25 PROJECTS UNDERWAY The Chocolate Factory, Wood Green Centro - Atelier House, Camden Fleet Street, Blackfriars Portsoken House, Aldgate
Slide 51: Property Portfolio
Full Year Results 2024/25 PROPERTY PORTFOLIO LIKE-FOR-LIKE REFURBISHMENTS NON-CORE 42 Brickfields 56,441 2,813,923 Canalot Studios 48,336 1,325,816 Cannon Wharf 32,619 602,424 29 Cargo Works 63,874 3,534,157 41 47 6 21 Castle Lane 14,254 710,048 15 55 23 16 2 18 1 Centro Buildings 183, 102 7,654,297
Slide 52: Property Portfolio
Full Year Results 2024/25 PROPERTY PORTFOLIO Lock Studios 54,361 1,129,262 Barley Mow Centre 77,052 2,159,474 Mare Street Studios 54,863 1,796,500 Busworks 103,110 1,517,989 Metal Box Factory 106,316 7,833,803 Centro Buildings (Atelier House) 0 19,500 Mirror Works 39,965 870,643 Chocolate Factory (p
Slide 53: Property Portfolio
Full Year Results 2024/25 PROPERTY PORTFOLIO Building 329* 31,307 654,138 Q West 54,813 641,127 Crown Square* 47,526 711,398 The Shaftesbury Centre 12,627 310,462 Gainsborough House* 18,661 548,417 The Planets* 98,255 0 9 Greyfriars Road* 38,493 918,503 Thurston Road 7,133 112,920 Prospero House* 48