Workspace Group plc R.E.I.T. (GB:WKP)
LSE:WKP
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Workspace Group plc R.E.I.T.
(LSE:WKP)
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Rating:57Neutral
Price Target:
424.00 p
▲(4.82% Upside)
Action:ReiteratedDate:12/07/25
Workspace Group plc's overall stock score reflects a stable financial performance with strong cash flow generation but low profitability. The technical analysis indicates a bearish trend, while the valuation is mixed with a high dividend yield but negative earnings. The earnings call and corporate events provide some positive signals, but challenges remain in occupancy and valuation.
Positive Factors
Free cash flow growth
A nearly 200% rise in free cash flow indicates durable internal funding capacity. Strong cash conversion supports reinvestment in refurbishments, debt servicing or dividends, and reduces reliance on external funding, strengthening financial flexibility over the medium term.
Negative Factors
Declining rental income
A persistent decline in rental income indicates pressure on the core recurring revenue stream. For a tenant-focused REIT, weaker rentals directly reduce operating cashflow and can limit capital for refurbishments and dividends until occupancy and pricing stabilize.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow growth
A nearly 200% rise in free cash flow indicates durable internal funding capacity. Strong cash conversion supports reinvestment in refurbishments, debt servicing or dividends, and reduces reliance on external funding, strengthening financial flexibility over the medium term.
Read all positive factors
Workspace Group plc R.E.I.T. (WKP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£672.90M
Dividend Yield7.31%
Average Volume (3M)642.58K
Price to Earnings (P/E)―
Beta (1Y)1.11
Revenue Growth-1.67%
EPS Growth-120.18%
CountryUK
Employees329
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.16
Shares Outstanding192,313,260
10 Day Avg. Volume660,763
30 Day Avg. Volume642,575
Financial Highlights & Ratios
PEG Ratio-1.44
Price to Book (P/B)0.53
Price to Sales (P/S)4.30
P/FCF Ratio51.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£503.00Price Target Upside24.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.31
Revenue Forecast (FY)£138.21M
Workspace Group plc R.E.I.T. Business Overview & Revenue Model
Company Description
Established in 1987, and listed on the London Stock Exchange since 1993, Workspace owns and manages some 4 million sq. ft. of business space in London. We are home to London's brightest businesses, including fast growing and established brands acr...
How the Company Makes Money
Workspace Group generates revenue primarily through leasing office spaces to tenants, which includes both traditional long-term leases and flexible short-term agreements. The company benefits from a diversified tenant base, which helps mitigate fi...
Workspace Group plc R.E.I.T. Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including improved conversion rates, a higher NPS, and successful cost reductions, which indicate progress in strategic initiatives. However, these are balanced by significant challenges such as decreased occupancy, valuation drops, and a loss before tax, reflecting ongoing operational difficulties.Positive Updates
Improvement in Conversion Rates
Conversion rate increased by 1% year-on-year to 16%, and further improved to 17% in October.
Negative Updates
Decrease in Like-for-Like Occupancy
Like-for-like occupancy fell by 2.5%, mainly due to large customers leaving the Centro Center in Camden.
Read all updates
Q2-2026 Updates
Positive
Negative
Improvement in Conversion Rates
Conversion rate increased by 1% year-on-year to 16%, and further improved to 17% in October.
Read all positive updates
Company Guidance
In the recent call, Workspace provided several key metrics reflecting their fiscal performance and strategic progress. During the first half of the fiscal year, like-for-like occupancy fell by 2.5%, largely due to large customers leaving, which impacted rental income, down 2.9% to GBP 58.7 million. Despite the decline, Workspace managed to reduce administrative expenses by 5.6%, translating to annualized savings of GBP 2 million, and maintained a flat dividend of 9.4p per share. The company also reported a Net Promoter Score (NPS) increase by 14 points to 47, showcasing improved customer satisfaction. The inquiry-to-deal conversion ratio rose to 16%, with October alone seeing a 17% conversion rate. Trading profit after interest decreased by 6.4% to GBP 30.6 million, while adjusted underlying earnings per share fell to 15.8p. Workspace remains focused on their "Fix, Accelerate, and Scale" strategy, aiming to stabilize and rebuild occupancy while emphasizing customer retention and leveraging AI to enhance operational efficiency.Workspace Group plc R.E.I.T. Financial Statement Overview
Summary
Income Statement
65
Positive
Balance Sheet
55
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 182.90M | 185.20M | 184.30M | 174.20M | 132.90M | 142.30M |
| Gross Profit | 56.50M | 122.10M | 126.20M | 116.60M | 86.70M | 81.50M |
| EBITDA | 100.40M | 38.50M | -157.10M | 97.40M | 70.10M | -209.90M |
| Net Income | -75.90M | 5.40M | -192.50M | -37.80M | 123.90M | -235.70M |
Balance Sheet | ||||||
| Total Assets | 2.35B | 2.47B | 2.53B | 2.84B | 2.51B | 2.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.30M | 25.30M | 11.60M | 18.50M | 49.00M | 191.00M |
| Total Debt | 864.30M | 876.00M | 889.50M | 943.60M | 626.50M | 779.10M |
| Total Liabilities | 955.40M | 968.30M | 982.50M | 1.05B | 712.30M | 874.10M |
| Stockholders Equity | 1.40B | 1.50B | 1.55B | 1.79B | 1.80B | 1.72B |
Cash Flow | ||||||
| Free Cash Flow | 67.20M | 15.50M | 51.90M | 74.90M | 56.70M | 36.00M |
| Operating Cash Flow | 68.50M | 76.60M | 53.90M | 78.80M | 57.90M | 38.40M |
| Investing Cash Flow | 10.90M | 16.50M | 45.90M | -200.20M | 9.20M | -14.90M |
| Financing Cash Flow | -79.90M | -72.00M | -106.70M | 90.90M | -209.10M | 90.30M |
Workspace Group plc R.E.I.T. Technical Analysis
Negative
404.50
Price Trends
396.26
Negative
391.48
Negative
392.05
Negative
Market Momentum
-16.46
Positive
35.87
Neutral
48.87
Neutral
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 404.5 is above the 20-day moving average (MA) of 365.45, above the 50-day MA of 396.26, and above the 200-day MA of 392.05, indicating a bearish trend. The MACD of -16.46 indicates Positive momentum. The RSI at 35.87 is Neutral, neither overbought nor oversold. The STOCH value of 48.87 is Neutral, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | £3.65B | 3.98 | 7.75% | 5.85% | -20.83% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | £1.16B | 5.45 | 7.18% | 2.52% | 12.73% | ― | |
63 Neutral | £1.80B | 12.12 | 4.48% | 3.93% | 2.30% | ― | |
57 Neutral | £672.90M | -2.68 | -5.24% | 7.31% | -1.67% | -120.18% | |
50 Neutral | £217.97M | 35.14 | 5.91% | 2.71% | -14.09% | ― | |
42 Neutral | £1.74B | 126.90 | ― | 0.36% | -2.24% | ― |
* Real Estate Sector Average
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Workspace Group plc R.E.I.T. Corporate Events
Regulatory Filings and Compliance
Workspace Group Confirms Share Capital and Voting Rights Total
Neutral
Jan 30, 2026
Workspace Group PLC has confirmed that as of 30 January 2026 its issued share capital comprises 192,313,264 ordinary shares of £1 each, all carrying voting rights, and that the company holds no shares in treasury. This disclosure, made in lin...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Workspace Group Boosts Occupancy as Asset Sales Strengthen Balance Sheet
Positive
Jan 21, 2026
Workspace Group reported third-quarter trading in line with expectations, showing early progress on its “Fix, Accelerate, Scale” strategy through improved occupancy, stronger conversion of enquiries to lettings and continued disposal o...
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Workspace Group Taps TOG Co-Founder Charlie Green as New CEO to Drive Growth Strategy
Positive
Jan 19, 2026
Workspace Group plc has announced a leadership transition, with Chief Executive Officer Lawrence Hutchings stepping down from his role and from the board, and Charlie Green, co-founder and former CEO of flexible workspace operator The Office Group...
Business Operations and StrategyExecutive/Board Changes
Workspace Group Brings In TOG Co-Founder Charlie Green as New CEO to Drive Strategy
Positive
Jan 19, 2026
Workspace Group has announced a leadership overhaul to accelerate delivery of its existing growth strategy, with long-serving CEO Lawrence Hutchings stepping down immediately and flexible workspace veteran Charlie Green, co-founder of The Office G...
Business Operations and StrategyExecutive/Board Changes
Workspace Group Appoints Tom Edwards-Moss as New CFO
Positive
Dec 18, 2025
Workspace Group PLC has announced the appointment of Tom Edwards-Moss as its CFO Designate, succeeding Dave Benson who announced his decision to step down earlier this year. With extensive financial leadership experience at Hibernia Real Estate Gr...
Executive/Board Changes
Workspace Group PLC Non-Executive Director Purchases Shares
Positive
Dec 17, 2025
Workspace Group PLC announced that Rosie Shapland, a Non-Executive Director of the company, purchased 9,000 Ordinary Shares on 16 December 2025 at a price of £3.828723 per share. This transaction highlights involvement and confidence in the c...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.