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Workspace Group plc R.E.I.T.
(LSE:WKP)
Select Model
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Rating:58Neutral
Price Target:
338.00 p
▼(-16.44% Downside)
Action:Reiterated
Date:07/10/26
The score is primarily supported by consistently positive operating/free cash flow and a moderate, improving debt position, but is held back by extreme earnings and revenue volatility (including a steep 2026 revenue drop and losses). Technically, the stock sits near short-term averages but remains below longer-term moving averages, while valuation is mixed due to the very high yield offset by a negative P/E.
Positive Factors
Consistent positive cash generation
Consistent positive operating and free cash flow, including ~£60m FCF in 2026, demonstrates durable cash generation even during accounting loss years. This underlying cash coverage supports operating needs, maintenance capex, development activity and dividend resilience, lowering near‑term refinancing pressure.
Negative Factors
Severe revenue volatility
An ~82% year-on-year revenue decline in 2026 signals extreme top-line volatility that undermines predictability of rental and service income. Such swings complicate occupancy and pricing strategy, weaken forecasting for capex and dividends, and increase the risk that cash generation may not sustain current distributions if weaknesses persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent positive cash generation
Consistent positive operating and free cash flow, including ~£60m FCF in 2026, demonstrates durable cash generation even during accounting loss years. This underlying cash coverage supports operating needs, maintenance capex, development activity and dividend resilience, lowering near‑term refinancing pressure.
Read all positive factors
Workspace Group plc R.E.I.T. (WKP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£661.06M
Dividend Yield7.31%
Average Volume (3M)642.58K
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth-2.05%
EPS Growth-2319.50%
CountryUK
Employees283
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.63
Shares Outstanding192,673,230
10 Day Avg. Volume660,763
30 Day Avg. Volume642,575
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.49
Price to Sales (P/S)3.62
P/FCF Ratio10.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£400.43Price Target Upside-1.01% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)0.24
Revenue Forecast (FY)£126.69M
Workspace Group plc R.E.I.T. Business Overview & Revenue Model
Company Description
Founded in 1987 and publicly traded on the London Stock Exchange (WKP.L) since 1993, Workspace Group plc manages an extensive portfolio of approximately 4 million square feet of commercial property throughout London. The company's core mission is ...
How the Company Makes Money
Workspace Group plc makes money mainly by generating rental and service-related income from leasing space across its property portfolio. The core revenue stream is contracted rent paid by occupiers under lease or licence arrangements for offices, ...
Workspace Group plc R.E.I.T. Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 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
46
Neutral
Balance Sheet
63
Positive
Cash Flow
69
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 181.40M | 185.20M | 184.30M | 174.20M | 132.90M |
| Gross Profit | 109.80M | 122.10M | 126.20M | 116.60M | 86.70M |
| EBITDA | -85.30M | 38.50M | -157.10M | 97.40M | 70.10M |
| Net Income | -120.30M | 5.40M | -192.50M | -37.80M | 123.90M |
Balance Sheet | |||||
| Total Assets | 2.21B | 2.47B | 2.53B | 2.84B | 2.51B |
| Cash, Cash Equivalents and Short-Term Investments | 10.50M | 25.30M | 11.60M | 18.50M | 49.00M |
| Total Debt | 793.10M | 876.00M | 889.50M | 943.60M | 626.50M |
| Total Liabilities | 881.90M | 968.30M | 982.50M | 1.05B | 712.30M |
| Stockholders Equity | 1.33B | 1.50B | 1.55B | 1.79B | 1.80B |
Cash Flow | |||||
| Free Cash Flow | 60.20M | 15.50M | 51.90M | 74.90M | 56.70M |
| Operating Cash Flow | 60.80M | 76.60M | 53.90M | 78.80M | 57.90M |
| Investing Cash Flow | 58.10M | 16.50M | 45.90M | -200.20M | 9.20M |
| Financing Cash Flow | -141.10M | -72.00M | -106.70M | 90.90M | -209.10M |
Workspace Group plc R.E.I.T. Technical Analysis
Positive
404.50
Price Trends
324.84
Positive
338.82
Positive
357.51
Negative
Market Momentum
5.29
Negative
61.03
Neutral
80.28
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WKP, the sentiment is Positive. The current price of 404.5 is above the 20-day moving average (MA) of 330.13, above the 50-day MA of 324.84, and above the 200-day MA of 357.51, indicating a neutral trend. The MACD of 5.29 indicates Negative momentum. The RSI at 61.03 is Neutral, neither overbought nor oversold. The STOCH value of 80.28 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 | £4.32B | 9.23 | 7.73% | 5.85% | 15.13% | 29.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | £1.36B | 8.65 | 7.41% | 2.52% | 24.37% | 29.61% | |
63 Neutral | £2.26B | 14.22 | 4.48% | 3.93% | 39.97% | 39.03% | |
58 Neutral | £661.06M | -5.50 | -8.83% | 7.31% | -2.05% | -2319.50% | |
51 Neutral | £224.29M | 40.43 | 1.34% | 2.71% | 4.03% | -79.67% | |
42 Neutral | £1.80B | 145.22 | -6.90% | 0.36% | -2.90% | -2.16% |
* Real Estate Sector Average
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Workspace Group plc R.E.I.T. Corporate Events
Business Operations and StrategyShareholder Meetings
Workspace hits back at Saba plan, urges investors to back existing board
Negative
Jul 9, 2026
Workspace Group has rejected activist investor Saba’s latest proposals ahead of its July AGM, insisting its own refreshed strategy and experienced board are better suited to realising long-term value from its flexible office portfolio. Manag...
Business Operations and StrategyShareholder Meetings
Workspace Group Rallies Shareholders Against Saba’s Board Proposals
Negative
Jul 1, 2026
Workspace Group has published an online presentation setting out its detailed response to materials issued by shareholder Saba Capital Management in mid-June, as tensions build ahead of the company’s July annual meeting. The board reiterates...
Business Operations and StrategyExecutive/Board Changes
Workspace Group Grants Deferred Bonus Share Awards to Top Executives
Neutral
Jun 26, 2026
Workspace Group plc has granted conditional share awards under its Deferred Bonus Plan to two members of its top management team, reinforcing the company’s use of equity-based incentives. Chief executive officer Charlie Green received a cond...
Business Operations and StrategyExecutive/Board Changes
Workspace Grants Major LTIP Share Awards to CEO and CFO
Positive
Jun 26, 2026
Workspace Group plc has granted conditional awards of ordinary shares to its top executives under the company’s Long Term Incentive Plan, reinforcing equity-based remuneration at the senior level. Chief Executive Officer Charlie Green receiv...
Regulatory Filings and Compliance
Workspace Group Confirms Total Voting Rights and Share Capital
Neutral
Jun 22, 2026
Workspace Group plc has confirmed that, as of 22 June 2026, its issued share capital stands at 192,673,240 ordinary shares of £1 each, all carrying voting rights, with no shares held in treasury. This disclosure sets the official total voting...
Financial DisclosuresRegulatory Filings and ComplianceShareholder Meetings
Workspace Group publishes 2026 annual report and flags response to Saba Capital
Neutral
Jun 19, 2026
Workspace Group plc has published its Annual Report and Accounts for the year ended 31 March 2026 and the notice of its 2026 Annual General Meeting, which are now available to shareholders online and via the UK’s national storage mechanism. ...
Business Operations and StrategyShareholder Meetings
Workspace Group Responds to Activist Letter from Saba Capital
Neutral
Jun 18, 2026
Workspace Group PLC has acknowledged a letter and accompanying presentation sent to its shareholders by Saba Capital Management L.P., an investor in the company. The board reiterated its confidence in the strategy outlined with its recent full-yea...
Business Operations and StrategyDividendsFinancial Disclosures
Workspace pivots to earnings-led growth as valuations weigh on results
Negative
Jun 10, 2026
Workspace Group reported a year of operational transition as it refocuses on earnings growth, leveraging a portfolio of well-located London flexible offices that continue to see resilient enquiries and lettings despite a weak economic backdrop. Th...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Workspace Faces Escalating Boardroom Challenge From Major Shareholder Saba Capital
Negative
May 22, 2026
Workspace Group PLC has received a revised requisition notice from major shareholder Saba Capital Management, which now seeks to remove all six of the company’s non-executive directors and replace them with six nominees at the 23 July 2026 a...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Workspace Faces Activist Push on Board as It Defends Strategy
Negative
May 8, 2026
Workspace Group plc, a UK REIT specialising in flexible office and workspace properties for SMEs, emphasises its high-quality portfolio and long-term structural demand in its core markets. Under new CEO Charlie Green, the company is pursuing a str...
Business Operations and StrategyDividendsFinancial Disclosures
Workspace Group Sacrifices Near-Term Profit to Reposition Flexible Office Portfolio
Negative
Apr 17, 2026
Workspace Group reported a steady fourth quarter with resilient enquiry levels and stable enquiry-to-letting conversion, but softer pricing led to a 1.4% fall in total rent roll to £127.3m and lower rent per square foot despite a modest rise ...
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.