WORKSPACE GROUP PLC SECOND QUARTER BUSINESS UPDATE

Workspace Group PLC

15 October 2026

 

15 October 2026

Workspace GROUP PLC

SECOND Quarter business update FOR THE

PERIOD ENDING 30 SEPTEMBER 2026

Workspace Group PLC (“Workspace”), London’s leading owner and operator of sustainable, flexible work space, provides a business update for the second quarter ending 30 September 2026.

Charlie Green, Chief Executive Officer, Workspace Group PLC, commented: 

“We continue to execute our strategy. Occupancy and rents remain resilient despite a quieter quarter for customer activity. We have been making significant changes across the business: investing in our two products, adjusting our pricing model and working on the new branding, launching next month. Our new, all-inclusive pricing for Unfurnished space was introduced across the portfolio at the beginning of September and initial signs are encouraging, with completed and under offer lettings above ERV. We are moving at pace to deliver our Furnished product, with 24 units being fitted out for delivery by December 2026 and a further 100+ expected to follow during 2027. In addition, our Case Study refurbishments are progressing and we expect them to be launched in the second half of calendar year 2027. Our new website, built with embedded AI, will launch in November 2026.

“We have completed £138m of disposals since March 2025 and continue to make progress towards our £200m disposal target by year-end March 2027. However, against a backdrop of higher interest rates and UK macroeconomic uncertainty, transactions are taking longer and, in some cases, buyers’ pricing expectations have been substantially below book value. We are disciplined sellers and will only pursue sales at prices we believe would maximise shareholder value. As a result, the additional £100m+ of disposals we announced as under consideration in June 2026 is likely to take more time.

“Having been with Workspace for eight months, I have a clear vision of how to deliver sustainable earnings growth from our operating platform and we are taking definitive steps to get there. Whilst the transformation will take time, I’m incredibly excited about realising the full potential of this business.”

Highlights

Good progress made on strategic objectives

• All-inclusive pricing model introduced in September:
  • 18 Unfurnished deals completed on 6,000 sq. ft. at a weighted average of £60.57psf, 8% above ERV
  • 18 Unfurnished deals under offer on 11,000 sq. ft. at a weighted average of £59.71psf, 14% above ERV
• All four Case Study refurbishments progressing through design and procurement stages
• New brand identity and website built with embedded AI launching in November

Occupancy impact due to strategic actions

• Stabilised Portfolio1,2 occupancy decreased 0.5pp to 82.8% and rate increased 0.4% to £46.13psf, resulting in a 0.5% (£0.6m) decrease in rent roll to £109.7m
  • Excluding the impact of the 24 units being fitted out for the Furnished product, Stabilised Portfolio occupancy was 0.1pp down in the quarter
• Total Portfolio3 occupancy decreased 1.0pp to 79.2% and total portfolio rate was up 0.1% to £42.71psf, resulting in a 0.6% (£0.8m) decrease in the rent roll to £126.6m
  • Excluding the impact of the unlet area of the completed new space at Block J, Biscuit Factory, Case Studies and the 24 units being fitted out for the Furnished product, occupancy increased 0.1pp in the quarter
• £246m of cash and undrawn facilities (Jun 26: £260m) and proforma LTV at 36% based on the March 2026 valuation (Jun 26: 35%)

1 Stabilised portfolio (previously like-for-like) is where the site is within London and is either 24 months post-refurbishment or acquisition or has 12 months of stable occupancy – whichever is earlier.

2 Restated for the transfer out of Chiswick Studios, W4 and One Crown Square, GU21 due to sale and the Case Studies and Self Storage area at Kennington Park, SW9

3 Restated for disposals of 66 Wilson Street, EC2A, Parkhall Business Centre (Blocks A & B), SE21, Chiswick Studios, W4, One Crown Square, GU21 and Evergreen Studios, TW9.

Customer activity

	Quarterly Average			Monthly Activity
	Q2 2026/27	Q1 2026/27	Q2 2025/26	30 Sep 2026	31 Aug 2026	31 Jul 2026
Enquiries	516	621	666	489	439	619
Viewings	322	465	519	299	256	410
Conversion	62%	75%	78%	61%	58%	66%
New Lettings	76	88	109	79	50	98
Conversion	15%	14%	16%	16%	11%	16%

New Lettings

	Quarterly Total			Monthly Activity
	Q2 2026/27	Q1 2026/27	Q2 2025/26	30 Sep 2026	31 Aug 2026	31 Jul 2026
Total	227	264	326	79	50	98
Rental value	£4.9m	£7.8m	£7.3m	£2.3m	£0.8m	£1.9m
Floor sq. ft.	121.0k	195.6k	179.0k	50.1k	18.7k	52.2k
Rent psf	£40.59	£39.94	£40.79	£45.45	£41.21	£35.70

Customer activity was lower during the quarter, with 227 lettings and 96 renewals completed with a total rental value of £7.9m (Q2 25/26: 326 lettings and 124 renewals, with a total rental value of £10.8m). This reflected a subdued August across the market, with some improvement seen in September. Conversion rates remained at the same level as the first quarter. Our focus on customer retention has underpinned occupancy, despite a lower level of customer activity.

Rent Roll

Total Rent Roll	£m
At 30 June 2026	128.0
Stabilised Portfolio	(0.6)
Completed Projects	0.1
Case Studies	(0.3)
South East Offices	0.1
Disposals	(0.7)
At 30 September 2026	126.6

As set out above, total rent roll decreased by 1.1% (£1.4m) in the second quarter to £126.6m; excluding disposals, rent roll decreased 0.6% (£0.7m). The movement reflected growth in the South East Offices and Completed Projects, offset by Disposals, Case Study activity and the Stabilised Portfolio.

Total Portfolio

	Quarter Ended
	30 Sep 26	30 Jun 261	31 Mar 261	31 Dec 251,2
Floor space sq. ft.	3.7m	3.7m	3.7m	3.7m
Floor space sq. ft. change	0.5%	0.3%	0.4%	(0.9%)
Occupancy	79.2%	80.2%	79.8%	79.3%
Occupancy change	(1.0pp)	0.4pp	0.5pp	1.0pp
Rent per sq. ft.	£42.71	£42.68	£42.25	£42.73
Rent per sq. ft. change	0.1%	1.0%	(1.1%)	(0.8%)
Rent roll	£126.6m	£127.4m	£125.0m	£125.1m
Rent roll change	(0.6%)	1.9%	(0.1%)	(0.6%)

1 Restated for disposals of 66 Wilson Street, Hackney, Parkhall Business Centre (Blocks A & B), Dulwich, Chiswick Studios, Chiswick, One Crown Square, Woking and Evergreen Studios, Richmond upon Thames.

2Restated for Workspace and third-party cafés being removed from floor area and rent roll to standardise reporting and the removal of floor space at Kennington Park, Oval which is being converted to self-storage space.

Total Portfolio occupancy decreased 1.0pp to 79.2% in the quarter, impacted by the completion of works at J Block at The Biscuit Factory in July, which added 31,000 sq. ft. of new lettable space and is currently 16% occupied. The unlet floor area accounted for 0.7pp of occupancy. Occupancy was also impacted by our decision to withhold space in order to deliver our Furnished product and Case Studies, which accounted for a further 0.4pp of occupancy reduction. Excluding the impact of these, occupancy would have increased by 0.1pp.

Stabilised Portfolio

	Quarter Ended
	30 Sep 26	30 Jun 263	31 Mar 263	31 Dec 252,3
Floor space sq. ft.	2.9m	2.9m	2.9m	2.9m
Floor space sq. ft. change	(0.3%)	0.2%	(0.1%)	-
Occupancy	82.8%	83.3%	82.5%	82.1%
Occupancy change	(0.5pp)	0.8pp	0.4pp	0.5pp
Rent per sq. ft.	£46.13	£45.96	£45.54	£45.86
Rent per sq. ft. change	0.4%	0.9%	(0.7%)	(1.4%)
Rent roll	£109.7m	£110.3m	£108.0m	£108.2m
Rent roll change	(0.5%)	2.1%	(0.2%)	(0.8%)

2 Restated for Workspace and third-party cafés being removed from floor area and rent roll to standardise reporting, removal of floor space at Kennington Park, Oval which is being converted to self-storage.

3 Restated for the transfer out of Chiswick Studios, Chiswick, One Crown Square, Woking and Wilson Street due to sale space and the Case Study floor areas at Cargo Works, Edinburgh House, Salisbury House and Centro Buildings.

The Case Study floor areas at Cargo Works, Edinburgh House, Salisbury House and Centro Buildings have been removed from the Stabilised Portfolio during the refurbishment of the spaces.

Stabilised Portfolio occupancy decreased 0.5pp to 82.8% in the quarter, while rent was up 0.4% to £46.13psf. Together these movements resulted in a 0.5% (£0.6m) decrease in rent roll to £109.7m.

Excluding the occupancy loss in the 24 units held back for fitting out as Furnished product at Clerkenwell Workshops, Record Hall and Exmouth House, Stabilised Portfolio occupancy was 0.1pp down in the quarter.

Product update

As outlined at our Full Year results, we have refocused our portfolio around two products: “Unfurnished” and “Furnished” (formerly referred to as “Space” and “Managed”, respectively).

Unfurnished is our established product. At the beginning of September, we introduced a new, all-inclusive pricing model across the portfolio, excluding the South-East Offices. Early indications are encouraging, albeit there is typically a lag between an enquiry and a completed letting. To date, we have completed 18 unfurnished lettings at a weighted average rent of £60.57psf, 8% above ERV. We have a further 18 deals under offer at a weighted average rent of £59.71psf, 14% above ERV.

We are also launching Furnished, our fully fitted and managed product. We are currently fitting out 24 units across our Clerkenwell Cluster (Clerkenwell Workshops, Exmouth House and Record Hall), with the first five expected to be delivered in November and the remainder during December 2026. We expect to invest approximately £1.5m in these units, targeting an aggregate incremental yield on cost percentage in the mid-teens once fully let. A further 100+ Furnished units are expected to be delivered in 2027.

Case Studies

We are progressing our low-risk, high-return investments in Salisbury House, Cargo Works, Edinburgh House and Centro Buildings, which will elevate the buildings, improve the amenities and deliver over 120 additional Furnished units. Designs are being finalised and tenders progressed, with completion of the Case Studies expected in the second half of calendar year 2027. We intend to begin marketing and leasing before practical completion.

Branding update

Our rebrand is well-advanced and is expected to be completed in mid-November, ahead of the Half Year results.  We will retain the Workspace name given its brand equity, while introducing a new visual identity, website and marketing collateral that better reflect our evolving customer proposition. 

Disposals

During the quarter, we completed the previously contracted sales of Parkhall Blocks A&B and 66 Wilson Street, generating cash proceeds of £13.0m.

Following the three disposals agreed in the first quarter for £12.6m (at an aggregate discount to March 2026 book value of 28.0%) cumulative disposals made since March 2025 total £138.3m. With over £50m of assets under offer and a further close to £200m subject to active discussions, we continue to work towards our £200m disposals target by March 2027.

Against a backdrop of higher interest rates and UK macroeconomic uncertainty, some buyers are seeking more substantial discounts and transactions are taking longer to complete. Our objective is to maximise value, and we will remain pragmatic on timing and pricing, progressing transactions where they support shareholder value. Given market conditions, the additional £100m+ of disposals that was being considered is unlikely to be fully achieved by March 2027.

Balance sheet and financing

Against a backdrop of challenging market conditions and the recent material increase in bond yields, we remain focused on our upcoming refinancings and our credit rating.

At 30 June 2026 our net debt sat at £740m. It increased by £14m in the quarter to £754m, attributable to disposal proceeds (net of costs) of £13m received during the period offset by dividends paid. As at 30 September 2026, cash and undrawn facilities totaled £246m, with proforma LTV of 36%, based on the 31 March 2026 valuation.

Half year results

Workspace will publish its half year results for the six months to 30 September 2026 on 18 November 2026. A presentation to analysts and investors will be held at 11:00am at our Eventspace, Salisbury House, 114 London Wall, EC2M 5QA.

– ENDS –

For further information, please contact:

Workspace Group PLC        020 7138 3300

Paul Hewlett, Director of Strategy & Corporate Development

Gregory Tinker, Corporate Communications Manager

FGS Global                       020 7251 3801

Chris Ryall

Guy Lamming 

Notes to Editors

About Workspace Group PLC:

Workspace is London’s leading owner and operator of flexible workspace, currently managing 3.7 million sq. ft. of sustainable space at 50+ locations in London and the South East.

We are home to nearly 4,000 of London’s fastest growing and established brands from a diverse range of sectors. Our purpose, to give businesses the freedom to grow, is based on the belief that in the right space, teams can achieve more. That in environments they tailor themselves, free from constraint and compromise, teams are best able to collaborate, build their culture and realise their potential.

We have a unique combination of a highly effective and scalable operating platform, a portfolio of distinctive properties, and an ownership model that allows us to offer true flexibility. We provide customers with space to create a home for their business, alongside leases that give them the freedom to easily scale up and down within our well-connected, extensive portfolio.

We are inherently sustainable – we invest across the capital, breathing new life into old buildings and creating hubs of economic activity that help flatten London’s working map. We work closely with our local communities to ensure we make a positive and lasting environmental and social impact, creating value over the long term.

Workspace was established in 1987, has been listed on the London Stock Exchange since 1993, is a FTSE 250 listed Real Estate Investment Trust (REIT) and a member of the European Public Real Estate Association (EPRA).

Workspace® is a registered trademark of Workspace Group PLC, London, UK.

LEI: 2138003GUZRFIN3UT430

For more information on Workspace, visit www.workspace.co.uk

 

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