Workspace Share Discussion Threads

[18bt] 25/5/2023 06:32

Workspace looks to be a strong performer in this environment - NAV only down 6.2%, debt is low and little with the 2024 cliff edge refinancing, occupancy looks to be continuing to defy WFH (little surprise there) and rental income continues to rise. A 49% discount to NAV feels excessive.

[hugepants] 18/5/2023 14:09

It looks bad but it was par for the course eg. CTPT's industrial assets fell 30% in same time period.

[blueclyde] 17/5/2023 10:32

Bit of a disappointment selling so much property for a 27% discount from what it was valued at only 7 months ago....

[its the oxman] 15/5/2023 15:12

For what it's worth Henderson smaller cos added wkp to their portfolio a while ago so we are not alone in seeing upside from these distressed levels.

[suetballs] 14/4/2023 06:21

Solid trading update yesterday - but this sector is out of favour.
Happy to hold for the dividend and a better share price to come - hopefully.
Suet

[lochgarman] 01/4/2023 10:28

indeed folks...this is absurdly cheap.....we really are a takeover target at this valuation.

[hugepants] 28/3/2023 09:16

Yes NAV wont be 974p any more but I think it will be north of 800p. London properties so you would hope would they'd hold their value better than properties in an out of town business park

[its the oxman] 28/3/2023 07:43

Hard to believe this is 430p given their quality assets and future potential. Just got to wait for the interest cycle to turn and hope things improve.

[hugepants] 10/3/2023 09:42

Bought back in here on today's residential sale news.

[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 12:24

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 09:11

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 10:53

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 09:00

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 07:54

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