Slide 1: Results for the Half Year 30 September 2010
Results for the Half Year 30 September 2010 1
Slide 2: Agenda
Agenda Introduction Harry Platt Financial Performance Graham Clemett Outlook Harry Platt 2 1
Slide 3: Background and Priorities
Background and Priorities London’s Economy and its SMEs Workspace’s Priorities: 1. To increase occupancy and rental income 2. To drive value from the existing portfolio 3. To churn the asset base 4. To exploit our brand more fully Active across the Portfolio 3 2
Slide 4: Business Overview
Business Overview • Good demand for space Trading Activity • 4th consecutive quarter of (L4L) occupancy growth • Pricing stable • GE debt refinanced • Valuation robust and recovering; driven by our efforts Portfolio Activity • Good progress in achieving planning consents • £22m of completed/contract
Slide 5: Results Highlights
Results Highlights September September 2010 2009 Change Like-for-like occupancy 85.6% 82.7% up 2.9% Like-for-like cash rent roll £39.7m £38.9m + 2.0% Overall occupancy 83.2% 81.9% up 1.3% Overall rent roll £51.0m £46.9m + 8.7% Trading profit after interest £6.6m £5.0m +32% Property Valuation £732m £
Slide 6: Financial Performance
Financial Performance Graham Clemett 6 5
Slide 7: Financial Highlights
Financial Highlights September September Income Statement (£m) 2010 2009 Change Net Rental Income 22.9 22.0 +4% Trading Profit after Interest 6.6 5.0 +32% Profit/(Loss) before Tax 18.0 (39.3) - Interim Dividend per Share 0.275p 0.25p +10% September March Balance Sheet (£m) 2010 2010 Change Valuation
Slide 8: Trading Profit after Interest
Trading Profit after Interest 7.5 1.9 7.0 1.3 6.5 6.0 (1.0) 5.5 (0.3) 5.0 (0.3) 4.5 6.6 5.0 4.0 3.5 3.0 2.5 Sept 2009 Revenue Direct Admin Share Interest Sept 2010 Trading Costs Costs Based Costs Trading Profit Costs Profit 7 8
Slide 9: Like-for-Like Occupancy
Like-for-Like Occupancy 100% Sept 2010 Sept 2009 90% 80% 70% 60% 50% 40% 30% 20% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76
Slide 10: Occupancy and Rent Roll Trends
Occupancy and Rent Roll Trends North £14m 90% £12m 85% £10m £8m 80% £6m 75% £4m £2m 70% M ar-09 Sep-09 M ar-10 Sep-10 West Central East £14m 90% £14m 90% £14m 90% £12m £12m £12m 85% 85% 85% £10m £10m £10m £8m 80% £8m 80% £8m 80% £6m £6m £6m 75% 75% 75% £4m £4m £4m £2m 70% £2m 70% £2m 70% M ar-09 Sep
Slide 11: Balance Sheet
Balance Sheet September March September £m 2010 2010 2009 Property Valuation 732 717 605 Debt (397) (383) (347) Interest Rate Derivatives (22) (23) (22) Other (13) (24) (28) Net Assets 300 287 208 EPRA NAV per share 28p 27p 22p Gearing (excluding derivatives) 123% 124% 151% 11 10
Slide 12: Debt Analysis
Debt Analysis September March 2010 2010 Net Debt £397m £383m LTV 54% 53% % Hedged 79% 70% Average Interest Cost 5.6% 6.7% Headroom (including restricted cash) £25m £36m Drawn Amount Term Margin (over LIBOR) RBS £129m November 2012 2.75% Lloyds £68m December 2014 1.35% Bayern Club £200m June 2015 2.2
Slide 13: Property Valuation
Property Valuation Existing Use Added Total £m Value Occupancy Yield Value Value ERV Like-for-like Properties 509 85.6% 7.8% 24 533 48.8 Refurbishment Properties 127 76.4% 7.6% 15 142 12.3 Other Properties 34 78.9% 4.7% 23 57 4.5 Total 670 83.2% 7.6% 62 732 65.6 • No movement in income yield over la
Slide 14: Outlook
Outlook Harry Platt 14 13
Slide 15: The Workspace Portfolio
The Workspace Portfolio Westbourne Clerkenwell Kennington Tower Bridge 15 14
Slide 16: Activity on the Ground
Activity on the Ground Westbourne Studios (57,000 sq ft) Clerkenwell Workshops (52,000 sq ft) September September September September 2010 2009 2010 2009 Occupancy 90.0% 80.0% Occupancy 91.3% 88.9% Rent Roll £1.35m £1.25m Rent Roll £1.63m `£1.40m • 19 lettings in last 6 months • 16 lettings in last
Slide 17: Enquiries & Letting Trends
Enquiries & Letting Trends 17 16
Slide 18: Occupancy and Pricing Trends
Occupancy and Pricing Trends 17
Slide 19: Redevelopment Pipeline
Redevelopment Pipeline Pre-Application Phase Enterprise Hayes Marshgate Highway Faircharm Tower Bridge Planning Application Phase Bow Enterprise Poplar Magenta Greenheath Aberdeen Exmouth Bounds Green Planning Consent Achieved Grand Union Baldwin Leyton Westminster Westwood Linton Wandsworth Ewer St
Slide 20: Branding
Branding • Workspace Group site (www.workspacegroup.co.uk) • Community Interest Sites (www.westbournestudios.com) • Work Inspiration • Anyspace Direct (www.anyspacedirect.co.uk) • Touchdown Space 20 19
Slide 21: Looking Forward
Looking Forward • Our enquiry levels are good • Occupancy continues to rise • Redevelopment activity across the portfolio • Leveraging the brand We and our customers are part of London’s recovery 21 20