10 June 2026
If you are covering Workspace Group’s latest financial results, please find below a comment from Oli Creasey, head of property research at Quilter Cheviot:
“Workspace's full year results do not make easy reading for shareholders, despite the pre-warning given in April's fourth quarter trading statement. Although occupancy has ticked up slightly since the first half, rent levels have fallen such that the overall rent roll of the stabilised portfolio has fallen 1.5% in the past six months, and 4.5% in the last year. Trading profit has fallen by almost 10% in the year, partly driven by the falling rents, but also by the impact of property disposals of £125m during the year. As discussed in the Q4 trading update, the outlook for the year ahead is for a further "substantial step down" in trading profit, suggesting that the company's difficulties are far from over.
“The company's net asset value (NAV) fell 11% in the year, which is not good news for any investors, but particularly the activist hedge fund Saba, which recently increased its stake in the business to 22%. The hedge fund has previously sought to initiate a wind-down of the company, liquidating assets and returning capital to shareholders, a strategy that has less of a clear rationale as the NAV falls. Saba's impact on the business goes completely unremarked in today's results, with management focused on creating long-term shareholder value and never referencing the hedge fund by name. However, management do acknowledge that the path to doing so "will not be straightforward" but believe they are on the right track.”
