Workspace Group Plc · LSE:WKP
Workspace — Investor Presentation (July 2010)
32 slides from Workspace's investor presentation, Jul 6, 2010
Slide 1: Analyst Presentation – 6th July 2010
Workspace Group PLC Analyst Presentation – 6th July 2010
Slide 2: Introduction – Harry Platt
Introduction Harry Platt
Slide 3: Introduction
Introduction Objective - How we will build income and deliver value within the current environment Assumptions - That yields do not harden - That we work with our existing capital structure 3
Slide 4: Our Brand – More than a Logo
Our Brand – More than a Logo • Marketing • Perception among customers • Service delivery • Reputation with planners • Reputation with government We own freeholds 4
Slide 5: Components of Valuation
Components of Valuation Existing Existing Added Total Use Use Value Value Number Valuation Yield Like-for-like properties 83 £483m 7.9% £31m £514m Refurbished properties 5 £84m 6.9% £1m £85m Held for redevelopment 5 £11m 4.1% £6m £17m Glebe properties 12 £85m 7.3% £16m £101m
Slide 6: Operations Overview – Chris Pieroni
Operations Overview Chris Pieroni
Slide 7: Contracted Like for Like Net Rent
Contracted Like for Like Net Rent March 2009 March 2010 Movement Churn Other Contracted Rent £41.6m £40.1m -£1.5m -£1.1m -£0.4m
Slide 8: Contracted Like for Like Net Rent
Contracted Like for Like Net Rent External Churn Rent (£m) Gained 6.2 Lost (9.4) Net (3.2) Internal Churn Rent (£m) Gained 5.2 Lost (3.1) Net 2.1 Overall Net -1.1
Slide 9: Contracted Like for Like Net Rent
Contracted Like for Like Net Rent Impact of floor space volume and pricing on rent roll (£m) Occupancy Impact + 1.3 Pricing Impact - 2.4 -1.1
Slide 10: Portfolio Performance
Net Rent Roll M ar £0.00m £0.50m £1.00m £1.50m £2.00m £2.50m ch 20 09 Ap ril 20 09 M ay 20 09 Ju ne 20 09 Ju ly 20 Au 09 gu Se st pt 20 em 09 be r2 O 00 ct ob 9 er No 20 ve 09 m Net Rent Roll Atlas Business Centre be De r2 ce 00 m 9 Stable Rent Roll be r2 Ja 00 nu 9 ar y Fe 20 br 10 ua ry 20 M 10 ar
Slide 11: What Do Our Customers Think Of Us?
What Do Our Customers Think Of Us? Overall Customer Satisfaction: 43% 81% (200945% 79%) There is more that Workspace could provide for me and my business (N=457) 12% 1% I feel confident in the security onsite (N=467) 13% 60% 20% 8% Overall, Workspace offers a competitive package (N=453) 12% 71% 14%
Slide 12: Reasons Why Customers Leave
Reasons Why Customers Leave 10% End of Short Term Lease 24% Expanding Elsewhere Contracting Elsewhere 1% Ceasing to Trade 5% 33% Repossesion 10% End of Leases Other 17%
Slide 13: Our Customer Base
Our Customer Base 2010 Creatives Business Professional and 14% Financial Services Construction 27% 6% Information and Communication Manufacturing 14% Transport and Storage Wholesale and Retail 3% 16% All Other Services 10% Unknown 4% 6%
Slide 14: Our Creative Customers
Our Creative Customers • We have over 1,000 creatives: approximately 2% of all creatives in the Capital Services Workspace houses one in - Mostly B2B fifty of London’s creative businesses – we believe it is the capital’s largest provider of workspace to Experiences the creative industries - Live the
Slide 15: Creating More Value In The Future
Creating More Value In The Future Like-for-Like Occupancy (as reported) 100% 95% 92.1% 91.0% 89.2% 88.7% 88.3% 90.5% 86.7% 86.9% 88.8% 90% 84.7% 85% 83.4% 80% 75% 70% 65% 60% 55% 50% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 16: Creating More Value In The Future
Creating More Value In The Future Average Rent psf (as reported) 14.0 13.0 12.6 11.9 12.0 11.3 11.2 11.0 10.0 9.6 9.3 9.0 8.6 8.2 8.0 7.2 7.0 5.8 6.0 5.2 5.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Slide 17: A London SME Barometer
Index Value ° Index Value 50 40 A London SME Barometer Quarterly Sales Turmover Outlook Index Workspace Group Quarterly Employment Outlook Index _— —— eo WA dex value os e609 Apr-09 Jun-09 _Aug-09__—Oct-09 Dec-09 Feb-10 _Apr-10 Feb-09 Apr09 dun-09 Aug-09 Oct-09 Dec-09 Feb-10 Apr-10) Quarter Quarterl
Slide 18: Added Value Overview – Angus Boag
Added Value Overview Angus Boag
Slide 19: Added Value
Added Value • How is the Development Market? - Prime locations ‘dusting off’ schemes - Almost no funding for speculative commercial - Limited funding for residential
Slide 20: Added Value Sales
Added Value Sales • How have we fared over the last year? - Thurston Road sale £6m cash and 80,000 sq.ft commercial returned - Canalot Studios (Part) £6.1m cash and 1,500 sq.ft commercial returned - Bounds Green (Part) £2.3m cash
Slide 21: Planning Process
Planning Process Properties selected for development potential Pre-Application Application Phase Consent Achieved Sale/Redevelopment 1.Sale 2. Sale with 3. Extend or 4. Reposition commercial Redevelop returned
Slide 22: Strand 1 – Disposal For Cash
Strand 1 – Disposal For Cash Exchanged Deals - Surrey House, SE1: £4.5m – 180 Bed Hotel - Magenta House and Car Park, E1: £4.0m – 200 Student Housing Units Pipeline Deals - Industrial site: £1.65m – 23 Apartments - Car Park site: £4.6m – 75 Apartments - Car Park site: £4.25m – 180 Student Housing Un
Slide 23: Strand 1 – Disposal For Cash
Strand 1 – Disposal For Cash Tower Bridge Business Complex - 12 acres of Preferred Industrial Location - Part thriving Business Centre - Part large low-value sheds - LB Southwark has agreed to redesignate 6 acres for residential - No added value in March 2010 valuation
Slide 24: Tower Bridge Business Complex
Tower Bridge Business Complex
Slide 25: Strand 2 – Sale with Commercial Returned
Strand 2 – Sale with Commercial Returned Wandsworth Business Centre - Existing centre at the end of its life - Detailed consent for 209 Apartments and 80,000 sq.ft Business Centre - Actively marketed by Savills
Slide 26: Strand 2 – Sale with Commercial Returned
Strand 2 – Sale with Commercial Returned Other Current Schemes Poplar Business Park, E15 315 Apartments 60,000 sq.ft Business 90 Bed Centre Hotel Bow Enterprise Park, E3 558 Apartments 60,000 sq.ft Business Centre Grand Union Centre, W10 145 Apartments 100,000 sq.ft Business Centre Aberdeen Centre,
Slide 27: Bow Enterprise Park, E3
Bow Enterprise Park, E3 Before After
Slide 28: Strand 3 – Extension & Redevelopment
Strand 3 – Extension & Redevelopment Canalot Studios, W10 - Part sale for student housing for £6.1m - 15,000sq.ft roof extension - New entrance hall Great Guildford, SE1 - 25,000 sq.ft new roof extension - New courtyard entrance
Slide 29: Strand 4 – Repositioning
Strand 4 – Repositioning Kennington - 6.2 acre Key Industrial Business Area (KIBA) - Walled industrial site mainly large scale, low value occupiers - 1st phase Canterbury Court – 90,000sq.ft new business units - Retail and leisure replacing low value storage/industrial - Chichester and Chester House
Slide 30: Kennington Park, SE1
Workspace Group aifgness mario di IMPROVED BUSINESS UNITS, VARIED TYPES + SIZES KENNINGTON PARK LONG TERM DEVELOPMENT STRATEGY WORKSPACE PLC
Slide 31: Scale of Opportunity
Scale of Opportunity Properties selected for development potential 1,500 Apartments Pre-Application 180,000 New Commercial 42,000 Leisure/Retail 870 Apartments Application Phase 190,000 New Commercial Replace 190,000 sq.ft Straight swap new for old 90 Hotel Rooms Consent Achieved 217 Apartments Repl
Slide 32: Concluding Remarks – Harry Platt and Graham Clemett
Concluding Remarks Harry Platt and Graham Clemett