Workspace Share Discussion Threads

[hindsight] 19/1/2023 10:18

Agree suetballs, a bit of give now to customers will pay off later

Still slightly niggled they didnt out these McKay assets into the hot market like they said they would, been <30% LTV then

We are in active discussions to progress the disposal of non-core assets in the McKay portfolio, primarily the light industrial and logistics assets, with the timing dependent on market conditions.

[suetballs] 19/1/2023 07:17

Nice 3rd quarter business update. Steady as she goes.
I like the bit about looking after their customers - without customers no business.
Suet

[suetballs] 05/12/2022 19:36

Thanks for posting rambutan2 - useful information.
Suet

[rambutan2] 05/12/2022 19:10

Noted in TRY's interim statement out today:

"Office stocks remain a difficult call. London developers such as Derwent London and GPE have very secure balance sheets with low leverage but also few short-term value drivers. Best in class, energy efficient (green) buildings are the future and rents will be driven higher by the lack of supply. These businesses have the experience and expertise to deliver this new product, however the near-term value correction in their standing portfolios remains a focal point for shareholders.

Many office occupiers are still deferring large property decisions as they wrestle with their post Covid-19 space requirements and new working practices alongside the growing risks of an economic slowdown. The result has been an increase in short-term letting and the use of serviced offices. All the listed players now have a 'serviced' offer as they respond to this demand but they are of course in competition with a multitude of branded offerings such as WeWork, Regus and The Office Group. My response has been to reduce our suburban exposure through the sale of CLS and McKay Securities. In the case of the latter, whilst I took the maximum cash in the takeover by Workspace, I have subsequently added to our initial holding (which came with the stock element of the deal)."

[suetballs] 05/12/2022 15:44

I agree - this looks inexpensive.
As always time will tell.
Suet

[hugepants] 05/12/2022 15:33

It seems a bit bonkers that this is down at 423p again. That's a 56% discount to NTA.
Yield is 6%+ (assuming H2 dividend also increases by 20%).

Portfolio looks highish quality. On target to be 40%+ EPC rated A/B by March 23. Mostly London so probably good alternative use potential if things get really bad for offices. Id have thought better than an out of town business park

They are on target to sell residential units for £55M in January. That should bring LTV to under 30%. And they've a big industrial park from McKays to sell when conditions improve.

[hindsight] 15/11/2022 10:09

Disappointing they didnt out the Mckay industrial / logistics as said would at takeover, into the strong sector. Now those values -19% according to cbre data and would have reduced gearing

We continue to target disposal of the non-core light industrial and logistics assets with the timing dependant on market conditions

[suetballs] 15/11/2022 08:17

An underwhelming share price reaction to the results.
But hey ho....
Suet

[suetballs] 15/11/2022 07:42

Hopes not shattered - a good set of half year results.
Like all well run companies looking after customers employees and investors.
Dividend up 20%.
Mckay integrated.
Future even with inflationary pressures looks bright.
Suet

[suetballs] 11/11/2022 16:00

Think the fall has been overdone - but the interims next Tuesday may well help sentiment here.
Hoping anyway.
Suet

[ydderf] 14/10/2022 13:24

If you renew borrowings at current rates and change capitalisation rates in accordance with normalised interest rates property valuations drop sharply - this is what lies ahead for all property companies in the UK and explains the weak share prices. There is much further to go, but not in the next few weeks, 2023 will be bloody. Property funds closing to redeemers is the canary the coal mine - soon there will cease to be a market until prices painfully adjust to long gilts at 5% and heading up.

Residential will also crater

What does it say about the CFO's judgement that he bought at £5 a month back - not a lot, I would suggest

[elsa7878] 14/10/2022 10:11

Goldmann Sachs yesterday predicted 20% falls in commercial property by the end of 2024 and financing costs rising by 75%.
Lucky that WKP has the majority of its interest costs fixed.
Sitting on a 40% discount so hard not too think it's cheap....just sentiment that's killing it.

[hugepants] 13/10/2022 11:53

I think they'll get them away with a haircut. But who cares at this valuation. The CFO bought 20k at 508p at beginning of September.

[hindsight] 13/10/2022 10:00

Missed the boat on MCKS big box sales and would not put my life on the Dec Resi sale
Shame as they have taken the LTV to 31%

-- Expect to complete the sale of the residential component of our mixed-use redevelopment at Riverside, Wandsworth for GBP55m in December 2022

-- Progressing with the planned disposal of McKay non-core assets, with timing dependent on market conditions

[elsa7878] 13/10/2022 08:54

The volume on the way down has been very light but without any buyers it's been one way traffic so far.

[hugepants] 13/10/2022 08:11

Good update I'd say. They sorted the McKay debt in Q2.


I agree sliceofpie, it must be pension funds selling this down here. It's on a 65% discount based on last NAV

[slicethepie] 12/10/2022 13:02

It is also worth noting that when people are made redundant they often start up their own company ie new tenants. Plenty of research out there showing how resilient small companies are. Difficult to call bottom as inst are sellers typically due to liquidity and not valuation.

[elsa7878] 10/10/2022 22:47

Hard to know when to buy but a 40% reduction in property values would still give a NAV of around 440p.

2.9bn x 0.6 - 900m (debt).

50% is around 286p

[hugepants] 07/10/2022 16:47

I don't think the debt they acquired with McKays is fixed which may be causing even more weakness here. Huge discount now at over 60%. Clearly NAV will fall but by how much?

[giltedge1] 07/10/2022 16:43

WKP have some really 1st Class Offices modern or recently refurbished, Management has done a good job, Mayfair, Royal Parks etc, will be a beneficiary, of flexible office working. Good value here. As Central London centric locations will maintain liquidity, Sovereign Wealth funds etc. only buy in London. Tempted but still falling so will wait a few more weeks or so.

[elsa7878] 05/10/2022 15:34

Amazing falls in the REIT's.

[its the oxman] 05/9/2022 00:16

Bargain at current levels

[hugepants] 01/9/2022 19:54

Director purchased a £100,000 worth today. It's on a 49% discount now.

[hugepants] 25/8/2022 14:36

Still dropping but its not the only one. The likes of BLND is down about the same this month.

[hugepants] 23/8/2022 15:21

I missed the update in July.

LTV is 32% due to the McKay acquisition but this will go below 30% as they sell off the non-core properties. Anyway discount back up now to a crazy looking 45%.