tiprankstipranks
Trending News
More News >
Workspace Group plc R.E.I.T. (GB:WKP)
: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 DescriptionEstablished 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 across a wide range of sectors. Workspace is geared towards helping businesses perform at their very best. We provide inspiring, flexible work spaces in dynamic London locations. Workspace (WKP) is a FTSE 250 listed Real Estate Investment Trust (REIT) and a member of the European Public Real Estate Association.
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
Income Statement
Balance Sheet
Cash Flow
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
184.30M174.20M132.90M142.30M161.40M
Gross Profit
126.20M116.60M86.70M81.50M122.00M
EBIT
-157.90M95.10M67.40M62.50M104.30M
EBITDA
103.20M97.40M70.10M-209.90M105.70M
Net Income Common Stockholders
-192.50M-37.80M123.90M-235.70M72.10M
Balance SheetCash, Cash Equivalents and Short-Term Investments
11.60M18.50M49.00M191.00M79.20M
Total Assets
2.53B2.84B2.51B2.59B2.74B
Total Debt
889.50M943.60M626.50M779.10M654.40M
Net Debt
877.90M925.10M577.50M588.10M575.20M
Total Liabilities
982.50M1.05B712.30M874.10M737.50M
Stockholders Equity
1.55B1.79B1.80B1.72B2.00B
Cash FlowFree Cash Flow
51.90M74.90M56.70M36.00M81.50M
Operating Cash Flow
53.90M78.80M57.90M38.40M84.70M
Investing Cash Flow
45.90M-200.20M9.20M-14.90M14.60M
Financing Cash Flow
-106.70M90.90M-209.10M90.30M-46.80M

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

Technical Analysis Sentiment
Negative
Last Price402.50
Price Trends
50DMA
423.78
Negative
100DMA
434.14
Negative
200DMA
498.14
Negative
Market Momentum
MACD
-7.45
Positive
RSI
41.62
Neutral
STOCH
28.03
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 402.5 is below the 20-day moving average (MA) of 419.27, below the 50-day MA of 423.78, and below the 200-day MA of 498.14, indicating a bearish trend. The MACD of -7.45 indicates Positive momentum. The RSI at 41.62 is Neutral, neither overbought nor oversold. The STOCH value of 28.03 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
GBSHC
74
Outperform
£2.83B10.487.05%2.41%12.79%-74.41%
GBDLN
74
Outperform
£2.18B18.813.29%4.14%3.70%
GBGPE
64
Neutral
£1.33B10.846.47%2.41%-2.73%91.05%
61
Neutral
$2.83B10.980.41%8438.90%5.81%-21.06%
GBWKP
58
Neutral
£773.14M143.240.35%7.05%1.86%84.48%
$2.58B10.068.06%4.32%
GBIWG
56
Neutral
£2.12B134.1929.10%0.48%-2.37%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:WKP
Workspace Group plc R.E.I.T.
406.50
-129.37
-24.14%
BYLOF
Big Yellow Group
13.45
-1.40
-9.43%
GB:SHC
Shaftesbury Capital
145.50
6.68
4.81%
GB:DLN
Derwent London plc REIT
1,956.00
-276.27
-12.38%
GB:GPE
Great Portland Estates plc R.E.I.T.
335.50
-2.05
-0.61%
GB:IWG
IWG plc
209.00
31.99
18.07%

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
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.