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Workspace Group Plc reported a modest improvement in its operating performance during the first quarter, with higher stabilised occupancy and rental income across its flexible office portfolio. The company completed 375 leasing transactions, including new lettings and renewals, while its total portfolio occupancy reached 79.8%. Alongside the operational update, Workspace said it is evaluating additional asset disposals worth more than GBP 100 million, taking forward its strategy to strengthen earnings and optimise its property portfolio. The move also comes as the company continues to face pressure from activist investor Saba Capital.
Workspace Group Plc has reported a modest improvement in business performance for the first quarter, supported by higher stabilised occupancy and growth in its rent roll across its flexible office portfolio in London.
In its first-quarter business update, the company said stabilised occupancy and rental income improved during the quarter, indicating steady leasing activity despite continued challenges in the commercial real estate market. Chief Executive Charlie Green said the company had started implementing the earnings-focused strategy announced with its full-year results and that the initial improvement in occupancy and rent roll was encouraging, although there was still considerable work ahead.
Across its total portfolio, Workspace recorded an occupancy level of 79.8%, with an annualised rent roll of GBP 128.0 million. The average rent stood at GBP 42.73 per square foot.
During the quarter, the company completed 264 new lettings and 111 lease renewals, representing a combined rental value of GBP 11.9 million. The leasing activity reflects continued demand for flexible workspace, even as businesses remain selective in their office expansion plans.
Workspace also said it is considering additional asset disposals worth more than GBP 100 million, beyond its previously announced disposal target. The company currently has more than GBP 200 million worth of assets being marketed for sale as part of its capital recycling strategy.
The disposal programme follows the company's broader plan to improve earnings by selling selected non-core assets and reinvesting capital into higher-performing properties. Since April 2025, Workspace has exchanged or completed property disposals worth GBP 138.4 million, including GBP 12.6 million of sales completed during the first quarter.
The latest update comes at a time when Workspace is facing increased pressure from activist investor Saba Capital Management, which recently became the company's largest shareholder with a 29.1% stake. Saba has been pushing for strategic changes, including a faster disposal programme and board-level reforms, while Workspace has maintained that its current strategy is the best approach for delivering sustainable long-term value for shareholders.
Source Reuters
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