Workspace shares fall as disposals to take longer than expected

Workspace Group PLC on Thursday said disposals were taking longer than expected, citing higher interest rates and UK macroeconomic uncertainty.

Shares in the London-based flexible workspace provider fell 5.0% to 347.80 pence each on Thursday morning in London.

Chief Executive Officer Charlie Green said that an additional £100 million or more of disposals the firm had announced as under consideration in June is "likely to take more time," citing higher interest rates and UK macroeconomic uncertainty, as transactions are taking longer. Further, he said in some cases buyers' pricing expectations have been "substantially" below book value.

The firm has completed £138 million of disposals since March 2025, and continues to progress towards its £200 million disposal target by the time its financial year ends on March 31, 2027.

Further, CEO Green said: "We continue to execute our strategy. Occupancy and rents remain resilient despite a quieter quarter for customer activity. We have been making significant changes across the business: investing in our two products, adjusting our pricing model and working on the new branding, launching next month. Our new, all-inclusive pricing for Unfurnished space was introduced across the portfolio at the beginning of September and initial signs are encouraging, with completed and under offer lettings above estimated rental value."

Total rent roll as of September 30 was £126.6 million, down 1.1% from £128.0 million at June 30.

Wokspace said new lettings rental value totalled £4.9 million in the second quarter which ran to September 30, a 33% fall from £7.3 million a year prior and down 37% on-quarter from £7.8 million.

Net lettings fell 30% to 227 in the second quarter from 326 a year ago, and was 14% lower than 264 in the first quarter of financial 2027.

Net lettings rent per square foot was £40.59, down 0.5% from £40.79 a year ago but 1.6% higher on-quarter than £39.94.

Workspace will publish half-year results on November 18.

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