Slide 1: Full Year Results Investor & Analyst Presentation
Full Year Results Investor & Analyst Presentation 5 June 2019
Slide 2: Agenda
AGENDA WORKSPACE QUESTIONS PERFORMANCE SUPPLEMENTARY INFORMATION DIRECTION 2 Investor and Analyst Presentation 5 June 2019
Slide 3: Workspace
WORKSPACE Grand Union Studios Ladbroke Grove
Slide 4: Highlights
WORKSPACE Highlights Trading Performance March 2019 March 2018 Change Net Rental Income £111.0m £95.6m 16% Trading Profit After Interest £72.4m £60.7m 19% Dividend per Share 32.87p 27.39p 20% Operating Platform Enquiries (per month) 1,048 1,016 3.1% Total Rent Roll £127.5m £112.9m 12.9% Rent Roll (l
Slide 5: Strong track record of income and capital growth
WORKSPACE Strong track record of income and capital growth Dividend per share (p) EPRA NAV per share (£) Total Accounting Return for the Year: 7.5% 5 Investor and Analyst Presentation 5 June 2019
Slide 6: Customer activity – last 6 months
WORKSPACE Customer activity – last 6 months 684 Lettings in the last 6 months 6 Investor and Analyst Presentation 5 June 2019
Slide 7: Customers joining – last six months
WORKSPACE Customers joining – last six months Note: Percentages based 424 New Customers on rental income 7 Investor and Analyst Presentation 5 June 2019
Slide 8: Customers leaving – last six months
WORKSPACE Customers leaving – last six months Note: Percentages based 247 Customers Left on rental income 8 Investor and Analyst Presentation 5 June 2019
Slide 9: Internal Activity – last 6 months
WORKSPACE Internal Activity – last 6 months 260 Customers moved within Workspace 9 Investor and Analyst Presentation 5 June 2019
Slide 10: Performance
PERFORMANCE Metal Box Factory Bankside
Slide 11: Income Statement
PERFORMANCE Income Statement March March £m 2019 2018 Change Net Rental Income 111.0 95.6 +16% Administrative Expenses (17.1) (16.1) +6% Net Finance Costs (21.5) (18.8) +14% Trading Profit after Interest 72.4 60.7 +19% Investment Property Surplus 60.8 82.5 Profit on Sale of Investment Properties 8.3
Slide 12: Net Rental Income
PERFORMANCE Net Rental Income (£m) 12 Investor and Analyst Presentation 5 June 2019
Slide 13: Cash Flow
PERFORMANCE Cash Flow £m March 2019 March 2018 Trading Net Cash from Operations after Interest 76 74 Dividends Paid (52) 24 (37) 37 Investment Capital Expenditure (87) (74) Purchase of Investment Properties (221) (370) Property Disposals 51 128 Capital Receipts 6 9 Share Placement 176 – Tenant depos
Slide 14: Balance Sheet
PERFORMANCE Balance Sheet March March £m 2019 2018 Investment Property Valuation 2,604 2,280 Net Debt (580) (517) Other (42) (50) Net Assets 1,982 1,713 EPRA NAV per Share £10.86 £10.37 Loan to Value 22% 23% Equivalent Yield (Like-for-like) 6.2% 6.5% Net Initial Yield (Like-for-like) 5.3% 5.4% 14 In
Slide 15: Property Valuation
PERFORMANCE Property Valuation (£m) 15 Investor and Analyst Presentation 5 June 2019
Slide 16: Revaluation
PERFORMANCE Revaluation Valuation Uplift/(Deficit) Main components ERV per sq. ft. down 1.1% £(14)m Like-for-like £1,266m £27m Equivalent Yield in 0.3% £41m The Frames, Shoreditch £19m Completed Projects £521m £39m Vox Studios, Vauxhall (phase 2) £8m Current Refurbishments £337m £1m Vox Studios (pha
Slide 17: Debt
PERFORMANCE Debt March 2019 March 2018 Net Debt £580m £517m Average Interest Cost 3.7% 4.3% Undrawn Revolver Facilities and Cash £127m £148m Marginal Cost (Undrawn Facilities) over LIBOR 1.5% 1.5% Average Period to Maturity 5.6 years 5.5 years Facilities By Type (%) Maturity Profile (£m) 17 Investor
Slide 18: Direction
DIRECTION Edinburgh House Vauxhall
Slide 19: Good customer demand
DIRECTION Good customer demand Enquiries 19 Investor and Analyst Presentation 5 June 2019
Slide 20: Rent Roll Growth
DIRECTION Rent Roll Growth (£m) 20 Investor and Analyst Presentation 5 June 2019
Slide 21: Completed Projects
DIRECTION Completed Projects China Works Edinburgh House The Frames Cocoa Studios Upgraded space: 69,000 sq.ft. New space: 66,000 sq.ft. New building: 52,000 sq.ft. New building: 39,000 sq.ft. Launched June 2018 Launched September 2018 Launched September 2018 Launched June 2018 Occupancy: 84% Occupa
Slide 22: Like-for-like Properties
DIRECTION Like-for-like Properties Rent Roll Growth Occupancy Rent per sq. ft. Growth • Short-term impact on occupancy and rent roll from new building launches • 47 customers moved to new space in H2 with £0.6m uplift in rent roll • Underlying rent roll growth of 1.0% in H2 and occupancy flat if fiv
Slide 23: Projects Underway
DIRECTION Projects Underway The Light Box, Chiswick Brickfields, Hoxton Mare Street, Hackney New/upgraded space: 78,000 sq.ft. New building: 57,000 sq.ft. New building: 55,000 sq.ft. Launched April 2019 Launching H1 2019 Launching H2 2019 • 9 refurbishments and 4 redevelopments underway • Will deliv
Slide 24: Recent Acquisitions
DIRECTION Recent Acquisitions The Centro Buildings, Camden • Acquired January/April 2018 • 215,000 sq. ft. of net lettable space • Initial focus on letting vacant space • Occupancy up from 85% at acquisition to 91% at March 2019 • Rent roll up £2.9m since acquisition to £9.5m at March 2019 The Sheph
Slide 25: Future Rent Roll Illustration
DIRECTION Future Rent Roll Illustration Rent Roll (£m) Notes: • Not a profit forecast, for illustrative purposes only • Assumes like-for-like ERV reversion at 31 March 2019 captured at 90% occupancy • Future rents for projects based on the assumptions set out in Appendices 1 & 2 • Assumes all projec
Slide 26: Project Pipeline
DIRECTION Project Pipeline New/upgraded space (sq. ft.) 26 Investor and Analyst Presentation 5 June 2019
Slide 27: Portfolio Rent per sq. ft.
DIRECTION Portfolio Rent per sq. ft. Rent per sq. ft.(£) 27 Investor and Analyst Presentation 5 June 2019
Slide 28: Property Portfolio
DIRECTION Property Portfolio 28 Investor and Analyst Presentation 5 June 2019
Slide 29: Well Positioned for Continued Growth
DIRECTION Well Positioned for Continued Growth Good Extensive Well demand pipeline positioned Underpinned by Asset ownership Customer platform THE WORKSPACE ADVANTAGE 29 Investor and Analyst Presentation 5 June 2019
Slide 30: Questions
QUESTIONS The Frames Shoreditch
Slide 31: Supplementary Information
SUPPLEMENTARY INFORMATION The Shepherds Building Hammersmith
Slide 32: Refurbishment Projects (1/2)
Appendix 1 Refurbishment Projects (1/2) Estimated Estimated March 2019 Actual/ Cost to Estimated Unaffected Upgraded New Space ERV Rent at 90% Rent At March 2019 Valuation Estimated cost Complete Completion area (sq. ft.) area (sq. ft.) (sq. ft.) (Average) occupancy* Roll Completed The Record Hall £
Slide 33: Refurbishment Projects (2/2)
Appendix 1 Refurbishment Projects (2/2) Actual/ Estimated Estimated At March 2019 Valuation Estimated Cost to Estimated Unaffected Upgraded New Space ERV Rent at 90% March 2019 cost Complete Completion area (sq. ft.) area (sq. ft.) (sq. ft.) (Average) occupancy* Rent Roll Underway The Light Box £38m
Slide 34: Redevelopment Projects
Appendix 2 Redevelopment Projects Commercial space returned Other proceeds Commercial Space March 2019 estimated Residential New Space Estimated Estimated Cash Cash to Overage to At March 2019 Development partner Valuation Rent Roll completion units no. (sq. ft.) ERV Rent* received come come Complet
Slide 35: Sustainability – Doing the Right Thing
Appendix 3 Sustainability – Doing the Right Thing 2018/19 Highlights • Reduced our greenhouse gas emissions by 15% in • Gray’s Inn Road - first Silver SKA rated fit-out with the year 100% of stripped out material recycled • 100% of our electricity supplies within our group • 121 cycle storage spaces
Slide 36: Sustainability – Doing the Right Thing
Appendix 3 Sustainability – Doing the Right Thing Awards and accreditations Global Real Estate Sustainability Benchmark (‘GRESB’) Better Buildings Partnership (BBP) Green Star for the fifth year in a row, achieving a score Member of the BBP, working with other leading of 80, exceeding both the avera
Slide 37: Workspace at a glance
Appendix 4 Workspace at a glance Key Facts The Workspace Advantage Platform Stats • FTSE 250 Real Estate Investment • Provide inspiring, flexible work • 1,048 enquiries per month Trust (REIT) spaces withsuper-fast technology in dynamic locations • 627 viewings per month • Established in 1987 and lis
Slide 38: Competitive landscape
Appendix 5 Competitive landscape 38 Investor and Analyst Presentation 5 June 2019
Slide 39: Property Portfolio
Appendix 6 Property Portfolio 39 Investor and Analyst Presentation 5 June 2019
Slide 40: Property Portfolio
Appendix 6 Property Portfolio Like-for-Like Map Ref Property Name Net Lettable Area Net Rent Roll Map Ref Property Name Net Lettable Area Net Rent Roll (sq. ft.) (£) (sq. ft.) (£) 1 Archer Street Studios 14,984 1,026,175 21 Riverside 101,821 1,715,134 2 Bow Enterprise Park 14,634 282,284 22 Salisbur
Slide 41: Property Portfolio
Appendix 6 Property Portfolio Refurbishments Redevelopments Map Ref Property Name Net Lettable Area Net Rent Roll Map Ref Property Name Net Lettable Area Net Rent Roll (sq. ft.) (£) (sq. ft.) (£) 33 12-13 Greville Street 3,787 37,690 54 Bow Office Exchange 36,962 392,661 34 14 Greville Street 10,960
Slide 42: Sector Diversity
Appendix 7 Sector Diversity Rent Roll as at July 2018 42 Investor and Analyst Presentation 5 June 2019
Slide 43: Disclaimer
Disclaimer The information in this document may include forward-looking statements, As a result, you are cautioned not to place reliance on such forward- which are based on current expectations and projections about future events. looking statements as a prediction of actual results or otherwise. Th