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

• Market Cap: £766.14M
• Dividend Yield: 9.6%
• Average Volume (3M): 824.06K
• Price to Earnings (P/E): 140.9
• Beta (1Y): 1.23
• Revenue Growth: 0.49%
• EPS Growth: N/A
• Country: UK
• Employees: 329
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.03
• Shares Outstanding: 192,312,520
• 10 Day Avg. Volume: 1,097,933
• 30 Day Avg. Volume: 824,058
• PEG Ratio: 1.22
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.25
• 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: £538.33
• Price Target Upside: 35.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 59 Neutral
• Price Target: 4.00p ▼(-98.99%Downside)

Workspace Group plc's overall stock score reflects a mix of stable financial performance, neutral technical indicators, and strong corporate events. However, the high P/E ratio and low profitability metrics weigh down the score. Despite positive corporate events and strategic initiatives, valuation concerns and moderate leverage pose risks.

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. 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 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 Money

Workspace Group plc R.E.I.T. generates revenue primarily through the leasing of its flexible office spaces. The company's primary revenue stream is rental income from its extensive property portfolio, which includes office spaces, meeting rooms, and ancillary services. Workspace offers a range of flexible leasing options, allowing businesses to scale their office space according to their needs, which helps attract a diverse tenant base. Additionally, Workspace may generate income from value-added services such as virtual office solutions, business support services, and community events. The company's strategic locations in high-demand areas of London and its reputation for providing high-quality, adaptable workspaces contribute significantly to its earnings. Partnerships with local businesses and service providers can also enhance the value proposition for tenants, further supporting Workspace's revenue model.

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

Summary

Workspace Group plc demonstrates resilient revenue growth and operational recovery, with improving cash flow metrics indicative of financial stability. However, profitability remains a concern with low net income margins and return on equity. The company maintains a strong equity position, but the balance sheet reflects moderate leverage which requires careful management to mitigate risk. Overall, the financial health is stable but with areas needing improvement.

Income Statement

The company shows stable revenue with a slight growth of 0.49% over the past year, indicating resilience. Gross profit margin is strong at 65.9%, but net profit margin is low at 2.92% due to high operating costs and interest expenses. EBIT margin improved significantly from a negative position last year, now at 20.19%, showcasing operational recovery. However, EBITDA margin slightly decreased to 20.78%, signaling some operational challenges.

Balance Sheet

The debt-to-equity ratio is at 0.58, indicating moderate leverage. Return on equity is low at 0.36%, reflecting limited profitability relative to shareholder investment. The equity ratio is healthy at 60.81%, showing a strong equity position, but the decrease in total assets and equity over recent years could signal potential risks.

Cash Flow

Operating cash flow increased to 76.6 million, improving the operating cash flow to net income ratio significantly. Free cash flow grew by 198.08% over the previous year, indicating strong cash generation capabilities. The free cash flow to net income ratio is robust, reflecting efficient cash management, though the high capital expenditures could impact future cash flows.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	185.20M	184.30M	174.20M	132.90M	142.30M
Gross Profit	122.10M	126.20M	116.60M	86.70M	81.50M
EBITDA	38.50M	103.20M	97.40M	70.10M	-209.90M
Net Income	5.40M	-192.50M	-37.80M	123.90M	-235.70M
Balance Sheet
Total Assets	2.47B	2.53B	2.84B	2.51B	2.59B
Cash, Cash Equivalents and Short-Term Investments	25.30M	11.60M	18.50M	49.00M	191.00M
Total Debt	876.00M	889.50M	943.60M	626.50M	779.10M
Total Liabilities	968.30M	982.50M	1.05B	712.30M	874.10M
Stockholders Equity	1.50B	1.55B	1.79B	1.80B	1.72B
Cash Flow
Free Cash Flow	15.50M	51.90M	74.90M	56.70M	36.00M
Operating Cash Flow	76.60M	53.90M	78.80M	57.90M	38.40M
Investing Cash Flow	16.50M	45.90M	-200.20M	9.20M	-14.90M
Financing Cash Flow	-72.00M	-106.70M	90.90M	-209.10M	90.30M

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

• Technical Analysis Sentiment: Negative
• Last Price: 396.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 396 is below the 20-day moving average (MA) of 398.40, below the 50-day MA of 401.97, and below the 200-day MA of 451.14, indicating a bearish trend. The MACD of -0.76 indicates Negative momentum. The RSI at 48.62 is Neutral, neither overbought nor oversold. The STOCH value of 18.14 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
SHC	76 Outperform	£3.02B	10.95	7.05%	4.39%	12.79%	-74.41%
GPE	74 Outperform	£1.40B	11.06	6.47%	2.12%	-0.63%	―
IWG	68 Neutral	£2.18B	155.36	29.10%	0.23%	-2.37%	―
DLN	67 Neutral	£2.19B	18.85	3.29%	4.23%	3.70%	―
Sector *	61 Neutral	AU$2.84B	8.03	4.17%	5.14%	17.25%	41.52%
WKP	59 Neutral	£766.14M	140.93	0.35%	9.60%	0.49%	―
BYLOF		$2.53B	9.76	8.06%	5.01%	―	―

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

Workspace Group’s SMEs Drive Over £2.2 Billion in Economic Value Annually

Workspace Group PLC’s 2025 socio-economic report highlights the significant economic contributions of its SME customers in London, generating over £2.2 billion in Gross Value Added annually and supporting local economies with £45 million in business rates. The report emphasizes Workspace’s role in transforming historic buildings into vibrant workspaces that foster community and collaboration, with a focus on sustainable regeneration and local impact. By enabling a fairer and more equitable distribution of opportunities across London, Workspace aims to support local businesses and communities, thereby driving economic growth and social infrastructure development.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group PLC Announces Executive Share Awards

Workspace Group PLC announced that Lawrence Hutchings, CEO, and Dave Benson, CFO, have received conditional awards of ordinary shares under the company’s Deferred Bonus Plan. This move reflects the company’s commitment to aligning executive incentives with shareholder interests, potentially impacting the company’s governance and stakeholder confidence positively.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group PLC Announces Internal Share Transfer

Workspace Group PLC, a company focused on providing flexible office spaces, announced a transaction involving its Chief Financial Officer, Dave Benson. Benson transferred 9,230 ordinary shares to Sue Benson, a person closely associated with him, for nil consideration. This transaction does not involve any monetary exchange and was conducted outside a trading venue, reflecting internal shareholding adjustments rather than market-driven actions.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group CFO Sells Shares to Cover Tax Liabilities

Workspace Group PLC announced that Dave Benson, the Chief Financial Officer, sold a portion of his ordinary shares to cover tax and national insurance liabilities resulting from the vesting of awards under the company’s Deferred Bonus Plan. This transaction highlights the financial obligations associated with executive compensation plans and may impact stakeholders’ perceptions of the company’s financial management practices.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group PLC Announces CFO Share Award Under Deferred Bonus Plan

Workspace Group PLC announced that Dave Benson, the Chief Financial Officer, has been awarded ordinary shares in the company as part of the Workspace Group Deferred Bonus Plan. This transaction, involving 17,463 shares at nil consideration, reflects the company’s ongoing commitment to rewarding its key management personnel, potentially impacting stakeholder perceptions and reinforcing the company’s strategic focus on leadership retention.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group PLC Updates Share Capital and Voting Rights

Workspace Group PLC has announced its current issued share capital, consisting of 192,312,516 ordinary shares with voting rights, in compliance with the Financial Conduct Authority’s Disclosure and Transparency Rules. This update is crucial for shareholders to determine their notification requirements regarding their interests in the company, impacting how they engage with Workspace’s governance and investment strategies.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group PLC Grants Share Awards to Key Executives

Workspace Group PLC announced that its CEO, Lawrence Hutchings, and CFO, Dave Benson, have been granted conditional awards over ordinary shares under the company’s Long Term Incentive Plan. This move is part of the company’s strategy to align management’s interests with those of shareholders, potentially impacting the company’s operational focus and stakeholder relations by incentivizing key executives to drive long-term growth.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group CFO Sells Shares to Cover Tax Liabilities

Workspace Group PLC announced that Dave Benson, the Chief Financial Officer, sold a portion of his ordinary shares to cover tax and national insurance obligations following the vesting of awards under the company’s Long Term Incentive Plan. This transaction highlights the company’s ongoing commitment to transparency in executive share dealings and may impact stakeholders’ perceptions of executive compensation practices.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.30 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group CFO Acquires Shares Under Incentive Plan

Workspace Group PLC announced that Dave Benson, the Chief Financial Officer, has acquired ordinary shares as part of the company’s Long Term Incentive Plan. This transaction, which took place on the London Stock Exchange, highlights the company’s ongoing efforts to align managerial interests with shareholder value, potentially impacting its financial strategy and stakeholder confidence.

The most recent analyst rating on (GB:WKP) stock is a Sell with a £6.50 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group PLC Releases 2025 Annual Report and AGM Notice

Workspace Group PLC has announced the publication of its 2025 Annual Report and Accounts, alongside the notice for its Annual General Meeting scheduled for July 16, 2025. This announcement underscores the company’s commitment to transparency and stakeholder engagement, as these documents are made available online and for inspection, reflecting Workspace’s ongoing efforts to maintain strong communication with its investors and stakeholders.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £6.80 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group Reports Solid Annual Performance Amid Economic Challenges

Workspace Group PLC reported a solid performance for the year ending March 31, 2025, with underlying rental income increasing by 1.7% to £135.5 million, despite a challenging economic environment. The company experienced a slight decline in property valuation and occupancy due to larger unit vacations but remains confident in its strategy to stabilize and grow occupancy and rental income. Strategic actions, including asset disposals and refurbishments, have positioned Workspace to capitalize on market opportunities, focusing on long-term value creation and dividend growth for shareholders.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £640.00 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group PLC Issues Financial Update and Strategic Plan

Workspace Group PLC has issued a post-close financial update for the year ending March 2025, indicating that trading profit is expected to align with consensus despite a slight decrease in valuation due to reduced ERV per square foot and occupancy. For the upcoming year ending March 2026, the company anticipates a trading profit headwind of approximately £7 million due to factors such as lower rent roll and increased costs from macroeconomic pressures. The strategic plan aims to recover occupancy and income growth, enhancing shareholder value through operational excellence and targeted investments.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £650.00 price target. To see the full list of analyst forecasts on Workspace Group plc R.E.I.T. stock, see the GB:WKP Stock Forecast page.

Workspace Group Reports Strong Q4 Lettings Amid Economic Challenges

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.