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

• Market Cap: £803.63M
• Dividend Yield: 6.79%
• Average Volume (3M): 298.91K
• Price to Earnings (P/E): 148.8
• Beta (1Y): 1.27
• 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: 309,206
• 30 Day Avg. Volume: 298,906
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: £487.50
• Price Target Upside: 24.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: 434.00p ▲(10.71% Upside)

The overall stock score reflects a stable financial performance with strong cash flow generation but low profitability and high leverage. Technical analysis indicates positive market momentum, while valuation concerns arise from a high P/E ratio, partially offset by a strong dividend yield. The absence of earnings call and corporate events data limits the analysis to these factors.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term stability and expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth initiatives and reducing reliance on external financing.

Equity Position

A strong equity position provides a buffer against market volatility and supports sustainable growth through reinvestment in core operations.

Negative Factors

Profitability Concerns

Low profitability limits reinvestment capabilities and may hinder competitive positioning, affecting long-term business sustainability.

High Operating Costs

High operating costs reduce net margins, impacting overall profitability and necessitating cost management strategies to improve financial health.

Moderate Leverage

Moderate leverage requires careful management to avoid financial strain, potentially limiting strategic flexibility and increasing risk exposure.

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

Company Description

Workspace Group plc R.E.I.T. (WKP) is a UK-based real estate investment trust that focuses on providing flexible office space solutions primarily in London. The company operates a diverse portfolio of properties, which includes co-working spaces, business centers, and traditional office spaces, catering to the needs of modern businesses and startups. By offering adaptable work environments, WKP aims to meet the growing demand for flexible working arrangements in an ever-evolving corporate landscape.

How the Company Makes Money

Workspace Group plc generates revenue through multiple streams primarily focused on leasing and property management. The main revenue source comes from rental income derived from long-term leases with tenants occupying its office spaces. Additionally, the company benefits from ancillary services such as meeting room rentals, event spaces, and business support services that contribute to overall earnings. WKP also engages in property development and refurbishment, enhancing the value of its portfolio and driving rental growth. Strategic partnerships with businesses and service providers further augment its revenue, as these collaborations often attract more tenants seeking comprehensive solutions for their office needs.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	185.20M	185.20M	184.30M	174.20M	132.90M	142.30M
Gross Profit	60.50M	122.10M	126.20M	116.60M	86.70M	81.50M
EBITDA	100.60M	38.50M	103.20M	97.40M	70.10M	-209.90M
Net Income	5.40M	5.40M	-192.50M	-37.80M	123.90M	-235.70M
Balance Sheet
Total Assets	2.47B	2.47B	2.53B	2.84B	2.51B	2.59B
Cash, Cash Equivalents and Short-Term Investments	25.30M	25.30M	11.60M	18.50M	49.00M	191.00M
Total Debt	876.00M	876.00M	889.50M	943.60M	626.50M	779.10M
Total Liabilities	968.30M	968.30M	982.50M	1.05B	712.30M	874.10M
Stockholders Equity	1.50B	1.50B	1.55B	1.79B	1.80B	1.72B
Cash Flow
Free Cash Flow	74.20M	15.50M	51.90M	74.90M	56.70M	36.00M
Operating Cash Flow	75.30M	76.60M	53.90M	78.80M	57.90M	38.40M
Investing Cash Flow	16.50M	16.50M	45.90M	-200.20M	9.20M	-14.90M
Financing Cash Flow	-70.70M	-72.00M	-106.70M	90.90M	-209.10M	90.30M

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

• Technical Analysis Sentiment: Positive
• Last Price: 392.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 392 is below the 20-day moving average (MA) of 404.33, below the 50-day MA of 399.25, and below the 200-day MA of 406.81, indicating a bullish trend. The MACD of 5.20 indicates Negative momentum. The RSI at 64.41 is Neutral, neither overbought nor oversold. The STOCH value of 91.05 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYG	―	£2.18B	10.77	8.06%	4.17%	2.44%	-18.76%
DLN	―	£1.98B	8.31	6.80%	3.79%	2.30%	―
SHC	―	£2.74B	8.34	8.66%	2.64%	-0.04%	655.16%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
GPE	―	£1.36B	11.31	6.47%	2.36%	-0.63%	―
WKP	―	£803.63M	148.75	0.35%	6.79%	0.49%	―
IWG	―	£2.26B	148.95	―	0.37%	-2.24%	―

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

Workspace Group Appoints New Head of Revenue

Workspace Group PLC has appointed James Graham as the new Head of Revenue, effective January 5. With extensive experience in sales and operations, particularly in the flexible workspace sector, Graham is expected to enhance customer retention and drive revenue growth, supporting Workspace’s strategy to rebuild occupancy and income growth.

The most recent analyst rating on (GB:WKP) stock is a Hold with a £402.00 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 Advances Strategy Amid Occupancy Challenges

Workspace Group PLC reported progress in its strategy to stabilize and rebuild occupancy, despite a decline due to large customer vacancies at The Centro Buildings in Camden. The company completed 326 lettings in the quarter and achieved £2 million in annualized efficiencies by streamlining operations. Workspace is advancing its asset disposal strategy, having exchanged or completed £52.4 million in low-conviction asset sales. The company is also expanding its specialized offerings to certain industries, aiming to drive future growth and shareholder value.

The most recent analyst rating on (GB:WKP) stock is a Hold with a £422.00 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 Advances Strategy with Asset Disposals

Workspace Group PLC has announced the sale of two properties, Morie Street in Wandsworth and Castle Lane in Victoria, for a total of £22.4 million. This move is part of their ‘Fix, Accelerate and Scale’ strategy, aiming to recycle capital from smaller, non-core locations into high-conviction buildings to maximize shareholder value and better serve their SME customers.

The most recent analyst rating on (GB:WKP) stock is a Hold with a £415.00 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 Advances Strategy with Asset Disposals

Workspace Group PLC has announced the sale of two properties, Morie Street in Wandsworth and Castle Lane in Victoria, for a total of £22.4 million. This move is part of their ‘Fix, Accelerate and Scale’ strategy, aimed at reallocating capital from smaller, non-core assets to more strategic locations that better serve their SME customers and maximize shareholder value.

The most recent analyst rating on (GB:WKP) stock is a Hold with a £415.00 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 Announces Block Listing Application for New Shares

Workspace Group PLC has applied for the admission of 1,273,756 ordinary shares to the UK Listing Authority’s Official List and the London Stock Exchange. These shares are reserved under a block listing and may be issued through employee share schemes, enhancing the company’s ability to incentivize and retain talent. This move is expected to support Workspace’s operational flexibility and market positioning, potentially benefiting stakeholders by aligning employee interests with company growth.

The most recent analyst rating on (GB:WKP) stock is a Buy with a £4.75 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 Facilitates Wild Cosmetics’ Expansion with New Lease Agreement

Workspace Group PLC has signed a new lease agreement with Wild Cosmetics, recently acquired by Unilever, allowing Wild to expand its footprint at Kennington Park. This move reflects Workspace’s strategy to accommodate growing businesses by relocating its own headquarters to The Centro Buildings in Camden, which will also support the leasing of Atelier House. The agreement highlights Workspace’s success in attracting large lettings, including new customers like Oliver’s Travel and Pinch Design, reinforcing its position as a leader in flexible workspaces in London.

The most recent analyst rating on (GB:WKP) stock is a Hold with a £435.00 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 CFO Dave Benson to Step Down in 2026

Workspace Group PLC announced that Dave Benson, the Chief Financial Officer, will step down from his role in 2026. The company will conduct a formal selection process to find his successor, with the search led by Chairman Duncan Owen. This leadership change comes as the company continues to focus on rebuilding post-Covid and enhancing its strategic initiatives.

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 Options to Employees

Workspace Group PLC announced the granting of share options to employees, including CEO Lawrence Hutchings, under its Sharesave Option Plan at a price of 334p per share. This move aligns with the company’s strategy to incentivize its leadership and workforce, potentially enhancing employee engagement and retention, which is crucial for maintaining its competitive edge in the flexible office space market.

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.