Workspace Group plc R.E.I.T. (WKP) AI Stock Analysis

• Market Cap: £745.90M
• Dividend Yield: 7.3%
• Average Volume (3M): 475.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.27
• Revenue Growth: 1.86%
• EPS Growth: 84.48%
• Country: UK
• Employees: 329
• Sector: Real Estate
• Sector Strength: 86
• Industry: REIT - Office
• EPS (TTM): -0.18
• Shares Outstanding: 191,910,390
• 10 Day Avg. Volume: 736,772
• 30 Day Avg. Volume: 475,513
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.98
• Price to Cash Flow (P/CF): 12.90
• P/FCF Ratio: 8.60
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 588.75p
• Price Target Upside: 54.53% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

Workspace Group plc faces significant challenges in profitability, reflected in its financial performance and negative P/E ratio. However, strategic corporate events and a high dividend yield provide some optimism. The stock's bearish technical indicators suggest caution, but positive corporate developments could improve future prospects.

Positive Factors

Customer Activity

There continues to be good customer demand with 296 new lettings completed in the quarter, taking the total for H1 to 603.

Earnings

The interim results continue to show robust growth, with capital values appearing to have stabilized and the company being well-capitalized, generating an attractive and growing total return.

Negative Factors

Occupancy

Like-for-like occupancy declined 1.3% to 86.1% as company faced higher churn and customers vacating larger spaces.

Stock Performance

Workspace shares have seen a sharp sell-off, falling 18% since the start of October, as interest rate expectations reversed and the five-year swap has risen 50bps from the September lows.

Workspace Group plc R.E.I.T. Business Overview & Revenue Model

Company Description

Workspace Group plc R.E.I.T. (WKP) is a real estate investment trust specializing in providing flexible office spaces primarily in London. The company caters to a diverse range of businesses, from startups and small enterprises to larger corporations, offering customizable office solutions and amenities tailored to meet the dynamic needs of modern workspaces. Workspace Group is known for its innovative approach to office leasing, focusing on creating vibrant, community-driven environments that foster business growth and collaboration.

How the Company Makes Money

Workspace Group plc R.E.I.T. generates revenue primarily through leasing office spaces to businesses on flexible terms. The company's key revenue streams include rental income from long-term leases and short-term licenses, as well as service charges for utilities and maintenance. Additionally, Workspace Group may earn money through ancillary services such as meeting room rentals and event spaces. The company's strategic focus on high-demand locations in London and the ability to offer adaptable office solutions contribute significantly to its earnings. By maintaining a strong portfolio of properties and continuously enhancing the value of its assets, Workspace Group ensures stable and recurring income.

Workspace Group plc R.E.I.T. Financial Statement Overview

Summary

Income Statement

Balance Sheet

Cash Flow

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
184.30M	174.20M	132.90M	142.30M	161.40M
	Gross Profit
126.20M	116.60M	86.70M	81.50M	122.00M
	EBIT
-157.90M	95.10M	67.40M	62.50M	104.30M
	EBITDA
103.20M	97.40M	70.10M	-209.90M	105.70M
	Net Income Common Stockholders
-192.50M	-37.80M	123.90M	-235.70M	72.10M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
11.60M	18.50M	49.00M	191.00M	79.20M
	Total Assets
2.53B	2.84B	2.51B	2.59B	2.74B
	Total Debt
889.50M	943.60M	626.50M	779.10M	654.40M
	Net Debt
877.90M	925.10M	577.50M	588.10M	575.20M
	Total Liabilities
982.50M	1.05B	712.30M	874.10M	737.50M
	Stockholders Equity
1.55B	1.79B	1.80B	1.72B	2.00B
Cash Flow		Free Cash Flow
51.90M	74.90M	56.70M	36.00M	81.50M
	Operating Cash Flow
53.90M	78.80M	57.90M	38.40M	84.70M
	Investing Cash Flow
45.90M	-200.20M	9.20M	-14.90M	14.60M
	Financing Cash Flow
-106.70M	90.90M	-209.10M	90.30M	-46.80M

Workspace Group plc R.E.I.T. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 381.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WKP, the sentiment is Negative. The current price of 381 is below the 20-day moving average (MA) of 421.10, below the 50-day MA of 436.16, and below the 200-day MA of 531.31, indicating a bearish trend. The MACD of -5.30 indicates Positive momentum. The RSI at 37.49 is Neutral, neither overbought nor oversold. The STOCH value of 11.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WKP.

Workspace Group plc R.E.I.T. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYG	72 Outperform	$1.66B	6.22	10.91%	5.14%	4.34%	33.66%
SGRO	71 Outperform	£8.34B	13.80	5.18%	4.75%	-9.88%	―
DLN	69 Neutral	£1.94B	16.76	3.29%	4.54%	3.73%	―
BLND	65 Neutral	£3.40B	18.67	3.17%	6.54%	-30.83%	―
Sector *	61 Neutral	$4.31B	16.14	-3.60%	11.88%	6.17%	-20.99%
WKP	54 Neutral	£745.90M	―	-2.20%	7.30%	1.86%	84.48%
LAND	52 Neutral	£3.77B	35.72	1.61%	7.66%	-1.73%	―

Workspace Group plc R.E.I.T. Corporate Events

Workspace Group PLC: BlackRock Adjusts Major Shareholding

Workspace Group PLC announced a change in major shareholdings, with BlackRock, Inc. adjusting its voting rights in the company. The transaction, which involved both the acquisition and disposal of voting rights and financial instruments, resulted in BlackRock holding 9.14% of the total voting rights in Workspace Group, down from a previous position of 9.61%. This adjustment in holdings could influence the company’s strategic decisions and stakeholder dynamics, given BlackRock’s significant influence as a major shareholder.

Workspace Group Appoints New Head of Portfolio Management

Workspace Group PLC has announced the appointment of Jessica Berney as the new Head of Portfolio Management, effective from July 1, 2025. With extensive experience in the real estate sector, Berney is expected to play a crucial role in optimizing Workspace’s portfolio and enhancing its capital allocation strategies to better serve London’s SMEs. This strategic move is aimed at positioning Workspace to capitalize on long-term growth opportunities in the flexible office space market.

Workspace Group Announces Change in BlackRock’s Voting Rights

Workspace Group PLC has announced a change in the voting rights held by BlackRock, Inc., a major stakeholder. The notification indicates that BlackRock’s total voting rights in Workspace Group have decreased from 9.91% to 9.61%, reflecting a slight reduction in their stake. This adjustment in holdings could influence the company’s governance and decision-making processes, impacting its strategic direction and potentially affecting shareholder interests.

BlackRock Adjusts Stake in Workspace Group, Reducing Voting Rights

Workspace Group plc has announced a change in the voting rights held by BlackRock, Inc., a major shareholder. As of March 20, 2025, BlackRock’s total voting rights in Workspace Group have decreased from 10.96% to 9.91%, following a disposal of shares and financial instruments. This adjustment in holdings reflects BlackRock’s strategic portfolio management and may influence the company’s governance dynamics, impacting stakeholders and potentially altering market perceptions.

Workspace Group Sees Change in Major Holdings by BlackRock

Workspace Group plc has announced a change in major holdings, with BlackRock, Inc. adjusting its voting rights in the company. As of February 25, 2025, BlackRock holds 10.96% of the voting rights in Workspace Group, a slight decrease from the previous 11.84%. This adjustment in holdings could impact the company’s strategic decisions and influence its market positioning, as BlackRock is a significant stakeholder with substantial voting power.

Workspace Group Director Acquires Shares, Signals Confidence

Workspace Group PLC announced that Nick Mackenzie, a Non-Executive Director responsible for managerial duties at the company, purchased 4,500 ordinary shares at a price of £4.365 each on January 23, 2025. This transaction was conducted on the London Stock Exchange’s Main Market, indicating confidence in the company’s potential by its management team, which could positively influence stakeholder perceptions and market positioning.

Workspace Group PLC Navigates Macroeconomic Challenges with Strategic Progress

Workspace Group PLC reported a challenging macroeconomic environment affecting customer activity in the third quarter ending December 2024. Despite this, they have made significant progress in refurbishing and subdividing larger spaces and successfully completed 273 new lettings with a total rental value of £6.0m. The company has a robust balance sheet and continues its capital recycling program, having agreed on disposals worth £34.2m. Looking forward to 2025, Workspace is optimistic about capturing growth opportunities and has started the fourth quarter with strong trading momentum, evidenced by numerous enquiries and viewings.