Loss and Strategy Shift
Workspace Group Posts £120.5M Loss, Cuts Dividend Amid Property Valuation Declines
Key Points
Workspace said the decline in underlying net rental income was driven by specific cost pressures: excluding property disposals, underlying net rental income fell 2.4% to £109.9 million, reflecting “higher vacancy costs, increased marketing expenditure and rising service-related expenses.”
The company provided an EPRA-backed snapshot of balance-sheet impact, saying EPRA net tangible assets (NTA) per share fell 11.2% to £6.87, after total property valuation declined 7% to £2.13 billion.
On its capital recycling program, Workspace disclosed deal economics: it completed £125.7 million of asset disposals, and those sales were completed at an average discount of 7.2% to prior book value.
CEO Charlie Green emphasized demand resilience while acknowledging leadership transition, saying: “The past year has been one of transition... and that process continues as we reshape the business,” and stressing “long-term structural demand” reflected in “resilience of enquiry levels and lettings.”
For the transformation phase and financing timeline, management indicated additional near-term earnings headwinds and concrete capital/credit details—flagging about £55 million of CapEx planned, and extending its £200 million revolving credit facility to June 2030.
Workspace Group swung to a £120.5 million pre-tax loss for the year ended 31 March 2026, down from a £5.4 million profit the prior year, as falling property values wiped £159.2 million from its books Yahoo Finance. The London flexible-office REIT also cut its dividend by 8.1% to 26.1p per share, as new CEO Charlie Green unveiled a sweeping turnaround plan just four months into the job.
Shares fell 3.4% to 322.00p on the day of the announcement, extending a 22% drop over the past 12 months Yahoo Finance. The results mark a painful reset for a business under pressure from falling occupancy, activist shareholders, and a market shifting away from its traditional model.
Property Write-Down and Falling Rents Drive the Loss
The £159.2 million fair-value write-down on its investment portfolio was the biggest driver of the loss Yahoo Finance. Total property value fell 7% to £2.13 billion. That dragged EPRA net tangible assets — a key measure of what the company is worth per share — down 11.2% to £6.87, from £7.74 a year earlier.
Operating results also weakened. Net rental income fell 7.1% to £113.4 million ADVFN. Excluding sold properties, underlying net rental income dropped 2.4% to £109.9 million, hurt by higher vacancy costs, more marketing spend, and rising service expenses. Occupancy slipped to 81.6% from 83.0% in March 2025. Trading profit after interest fell 9.4% to £60.5 million.
Green's 'Fix, Accelerate, Scale' Plan Targets a New Workspace
Charlie Green, the co-founder of The Office Group who took over as CEO in February 2026, is repositioning Workspace as an
Asset Sales and Dividend Cut Fund the Transformation
Workspace sold £125.7 million of properties during the year at an average 7.2% discount to their book value Yahoo Finance. It aims to sell at least another £75 million to hit a £200 million disposal target, with up to £100 million more possible by end of FY2027. The proceeds will fund refurbishments and portfolio upgrades rather than new acquisitions.
The company also extended its £200 million revolving credit facility to June 2030, a sign that lenders still back the new strategy ADVFN. Planned capital spending for FY2027 stands at £55 million. Loan-to-value sits at 35%, and Workspace holds £242 million in undrawn credit facilities. Fitch Ratings assigned a 'BBB-' stable rating on June 10, calling the dividend reset a
Activist Shareholder Saba Capital Waits in the Wings
US hedge fund Saba Capital, which holds an 18.2% stake, has been pushing for a full wind-down of Workspace for months Yahoo Finance. In January 2026, it called for a 12-month managed liquidation to close the gap between the share price and net asset value — a discount that has exceeded 40%. The new management's turnaround plan is a direct rebuttal to that pressure.
The July 23, 2026 Annual General Meeting is expected to be a flashpoint. Analyst Oli Creasey at Quilter Cheviot said the results were
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