tiprankstipranks
Trending News
More News >
Workspace Group plc R.E.I.T. (GB:WKP)
LSE:WKP

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

Compare
13 Followers

Top Page

GB

Workspace Group plc R.E.I.T.

(LSE:WKP)

Rating:58Neutral
Price Target:
Workspace Group plc's overall stock score reflects a challenging financial environment marked by substantial profitability issues and a negative P/E ratio. However, technical indicators show some positive momentum, and strategic corporate events provide optimism for future performance. The high dividend yield offers some investor appeal, though sustainability remains a concern. The balance sheet's moderate leverage is a positive, but the company must improve its earnings to enhance its stock performance.
Positive Factors
Earnings
EPS grew 5% in H1, driven mainly by a 2.8% growth in like-for-like rent per sq ft.
Financial performance
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.
Viewings
2025 started well with 337 viewings, including the strongest week for viewings since the COVID pandemic.
Negative Factors
Interest rates
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.
Macroeconomic environment
The macroeconomic environment continued to weigh on customer activity in the third quarter.
Occupancy
Like-for-like occupancy declined 1.3% to 86.1% as company faced higher churn and customers vacating larger spaces.

Workspace Group plc R.E.I.T. (WKP) vs. iShares MSCI United Kingdom ETF (EWC)

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

Company DescriptionWorkspace 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 MoneyWorkspace 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
Workspace Group plc shows a mixed financial performance with modest revenue growth but significant profitability challenges. The balance sheet reflects moderate leverage, though declining equity ratios pose a risk. Cash flow remains a concern with declining free cash flow, though operating cash flows are positive. The company needs to address profitability issues to improve its financial outlook.
Income Statement
48
Neutral
The company's revenue has shown a modest growth of 5.8% in the latest year, indicating some positive momentum. However, the net profit margin is deeply negative, driven by substantial net losses, which overshadow the revenue growth. The negative EBIT margin highlights challenges in operational efficiency.
Balance Sheet
60
Neutral
The debt-to-equity ratio is moderate, suggesting a balanced leverage position. However, the equity ratio has decreased, indicating a higher proportion of liabilities relative to assets. The return on equity is negative, reflecting the net losses and impacting shareholder returns.
Cash Flow
52
Neutral
Free cash flow has declined, with a growth rate of -30.7%, indicating a potential strain on cash resources. The operating cash flow to net income ratio is favorable due to positive operating cash flows, but the overall financial health is challenged by negative net income.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
186.00M184.30M174.20M132.90M142.30M161.40M
Gross Profit
125.70M126.20M116.60M86.70M81.50M122.00M
EBIT
-2.70M-157.90M95.10M67.40M62.50M104.30M
EBITDA
101.00M103.20M97.40M70.10M-209.90M105.70M
Net Income Common Stockholders
-34.40M-192.50M-37.80M123.90M-235.70M72.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
9.00M11.60M18.50M49.00M191.00M79.20M
Total Assets
2.51B2.53B2.84B2.51B2.59B2.74B
Total Debt
890.10M889.50M943.60M626.50M779.10M654.40M
Net Debt
881.10M877.90M925.10M577.50M588.10M575.20M
Total Liabilities
982.30M982.50M1.05B712.30M874.10M737.50M
Stockholders Equity
1.52B1.55B1.79B1.80B1.72B2.00B
Cash FlowFree Cash Flow
74.00M51.90M74.90M56.70M36.00M81.50M
Operating Cash Flow
74.50M53.90M78.80M57.90M38.40M84.70M
Investing Cash Flow
-8.40M45.90M-200.20M9.20M-14.90M14.60M
Financing Cash Flow
-67.40M-106.70M90.90M-209.10M90.30M-46.80M

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

Technical Analysis Sentiment
Negative
Last Price411.50
Price Trends
50DMA
422.75
Negative
100DMA
432.46
Negative
200DMA
495.03
Negative
Market Momentum
MACD
-5.93
Negative
RSI
43.78
Neutral
STOCH
59.89
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 411.5 is below the 20-day moving average (MA) of 414.00, below the 50-day MA of 422.75, and below the 200-day MA of 495.03, indicating a bearish trend. The MACD of -5.93 indicates Negative momentum. The RSI at 43.78 is Neutral, neither overbought nor oversold. The STOCH value of 59.89 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBBYG
81
Outperform
$1.98B9.828.06%4.46%4.34%33.66%
GBDLN
76
Outperform
£2.23B19.233.29%5.59%3.70%
74
Outperform
£9.54B15.775.18%5.73%-9.88%
68
Neutral
£3.93B11.186.14%6.23%-30.83%
61
Neutral
$2.86B10.960.41%6.08%5.73%-21.25%
GBWKP
58
Neutral
£797.15M147.690.35%4.53%1.86%84.48%
47
Neutral
£4.71B11.906.13%5.99%-1.73%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WKP
Workspace Group plc R.E.I.T.
411.50
-128.17
-23.75%
GB:BYG
Big Yellow Group
1,010.00
-114.74
-10.20%
GB:LAND
Land Securities Group plc REIT
631.00
37.13
6.25%
GB:SGRO
Segro plc (REIT)
705.00
-165.88
-19.05%
GB:DLN
Derwent London plc REIT
1,974.00
-248.66
-11.19%
GB:BLND
British Land Company plc
394.60
-6.30
-1.57%

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

Business Operations and StrategyFinancial Disclosures
Workspace Group Reports Strong Q4 Lettings Amid Economic Challenges
Positive
Apr 17, 2025

Workspace Group PLC reported a strong performance in the fourth quarter ending March 31, 2025, with significant growth in lettings and rent roll, despite macroeconomic challenges. The company completed 390 new lettings with a total rental value of £10.1 million, and like-for-like rent per square foot increased by 0.9%. However, occupancy declined by 1% to 85.1% due to larger unit vacancies and refurbishments. Workspace continues to focus on capital recycling, having disposed of non-core assets worth £52.5 million, and maintains a robust balance sheet with £260 million in cash and undrawn facilities. Looking forward, the company is set to publish its full-year results and strategy update in June 2025, aiming to capitalize on structural growth opportunities in the SME market.

Spark’s Take on GB:WKP Stock

According to Spark, TipRanks’ AI Analyst, GB:WKP is a Neutral.

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.

To see Spark’s full report on GB:WKP stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
Workspace Group PLC: BlackRock Adjusts Major Shareholding
Neutral
Apr 4, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Workspace Group Appoints New Head of Portfolio Management
Positive
Apr 3, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
Workspace Group Announces Change in BlackRock’s Voting Rights
Neutral
Apr 2, 2025

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.

Business Operations and StrategyRegulatory Filings and Compliance
BlackRock Adjusts Stake in Workspace Group, Reducing Voting Rights
Neutral
Mar 21, 2025

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.

Business Operations and Strategy
Workspace Group Sees Change in Major Holdings by BlackRock
Neutral
Feb 26, 2025

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.

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.