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Workspace Group plc R.E.I.T.
(LSE:WKP)
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Rating:55Neutral
Price Target:
360.00 p
▼(-2.07% Downside)
Action:Reiterated
Date:10/10/26
The score is driven primarily by mixed financial performance: strong, consistently positive free cash flow and moderate leverage support stability, but major revenue decline and pronounced earnings volatility are significant risks. Technical signals are weak (negative MACD, RSI below 50, and price below short-term moving averages), while valuation is balanced by a high dividend yield but undermined by a negative P/E tied to losses.
Positive Factors
Consistent cash generation
Recurring positive operating and free cash flow provides an important financial foundation for a property company, supporting maintenance, investment, and obligations without relying entirely on external funding. The approximately £60m 2026 FCF demonstrates that cash generation remains resilient despite reported accounting losses.
Negative Factors
Severe revenue volatility
An approximately 82% annual revenue decline signals substantial instability in the reported top line and makes forward operating performance harder to sustain predictably. Persistent revenue volatility could weaken cash planning, reduce reinvestment capacity, and challenge the dependable growth profile expected from a property portfolio.
Read all positive and negative factors
Positive Factors
Negative Factors
Consistent cash generation
Recurring positive operating and free cash flow provides an important financial foundation for a property company, supporting maintenance, investment, and obligations without relying entirely on external funding. The approximately £60m 2026 FCF demonstrates that cash generation remains resilient despite reported accounting losses.
Read all positive factors
Workspace Group plc R.E.I.T. (WKP) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£664.52M
Dividend Yield7.57%
Average Volume (3M)454.88K
Price to Earnings (P/E)―
Beta (1Y)1.15
Revenue Growth-2.05%
EPS Growth-2319.50%
CountryUK
Employees283
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.63
Shares Outstanding192,673,230
10 Day Avg. Volume377,372
30 Day Avg. Volume454,882
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.49
Price to Sales (P/S)3.62
P/FCF Ratio10.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£361.67Price Target Upside-1.61% Downside
Rating ConsensusHold
Number of Analyst Covering3
EPS Forecast (FY)0.23
Revenue Forecast (FY)£125.20M
Workspace Group plc R.E.I.T. Business Overview & Revenue Model
Company Description
Founded in 1987 and publicly traded on the London Stock Exchange (WKP.L) since 1993, Workspace Group plc manages an extensive portfolio of approximately 4 million square feet of commercial property throughout London. The company's core mission is ...
How the Company Makes Money
Workspace Group plc makes money primarily by generating rental and related property income from its London-based commercial real estate portfolio. The core revenue stream is income from letting space (e.g., offices, studios, and other workspace un...
Workspace Group plc R.E.I.T. Earnings Call Summary
Earnings Call Date:Nov 19, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted several positive developments, including improved conversion rates, a higher NPS, and successful cost reductions, which indicate progress in strategic initiatives. However, these are balanced by significant challenges such as decreased occupancy, valuation drops, and a loss before tax, reflecting ongoing operational difficulties.Positive Updates
Improvement in Conversion Rates
Conversion rate increased by 1% year-on-year to 16%, and further improved to 17% in October.
Negative Updates
Decrease in Like-for-Like Occupancy
Like-for-like occupancy fell by 2.5%, mainly due to large customers leaving the Centro Center in Camden.
Read all updates
Q2-2026 Updates
Positive
Negative
Improvement in Conversion Rates
Conversion rate increased by 1% year-on-year to 16%, and further improved to 17% in October.
Read all positive updates
Company Guidance
In the recent call, Workspace provided several key metrics reflecting their fiscal performance and strategic progress. During the first half of the fiscal year, like-for-like occupancy fell by 2.5%, largely due to large customers leaving, which impacted rental income, down 2.9% to GBP 58.7 million. Despite the decline, Workspace managed to reduce administrative expenses by 5.6%, translating to annualized savings of GBP 2 million, and maintained a flat dividend of 9.4p per share. The company also reported a Net Promoter Score (NPS) increase by 14 points to 47, showcasing improved customer satisfaction. The inquiry-to-deal conversion ratio rose to 16%, with October alone seeing a 17% conversion rate. Trading profit after interest decreased by 6.4% to GBP 30.6 million, while adjusted underlying earnings per share fell to 15.8p. Workspace remains focused on their "Fix, Accelerate, and Scale" strategy, aiming to stabilize and rebuild occupancy while emphasizing customer retention and leveraging AI to enhance operational efficiency.Workspace Group plc R.E.I.T. Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
63
Positive
Cash Flow
69
Positive
| Breakdown | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 181.40M | 185.20M | 184.30M | 174.20M | 132.90M |
| Gross Profit | 109.80M | 122.10M | 126.20M | 116.60M | 86.70M |
| EBITDA | -85.30M | 38.50M | -157.10M | 97.40M | 70.10M |
| Net Income | -120.30M | 5.40M | -192.50M | -37.80M | 123.90M |
Balance Sheet | |||||
| Total Assets | 2.21B | 2.47B | 2.53B | 2.84B | 2.51B |
| Cash, Cash Equivalents and Short-Term Investments | 10.50M | 25.30M | 11.60M | 18.50M | 49.00M |
| Total Debt | 793.10M | 876.00M | 889.50M | 943.60M | 626.50M |
| Total Liabilities | 881.90M | 968.30M | 982.50M | 1.05B | 712.30M |
| Stockholders Equity | 1.33B | 1.50B | 1.55B | 1.79B | 1.80B |
Cash Flow | |||||
| Free Cash Flow | 60.20M | 15.50M | 51.90M | 74.90M | 56.70M |
| Operating Cash Flow | 60.80M | 76.60M | 53.90M | 78.80M | 57.90M |
| Investing Cash Flow | 58.10M | 16.50M | 45.90M | -200.20M | 9.20M |
| Financing Cash Flow | -141.10M | -72.00M | -106.70M | 90.90M | -209.10M |
Workspace Group plc R.E.I.T. Technical Analysis
Negative
367.60
Price Trends
356.52
Negative
350.27
Negative
352.60
Negative
Market Momentum
-5.11
Negative
47.94
Neutral
63.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:WKP, the sentiment is Negative. The current price of 367.6 is above the 20-day moving average (MA) of 346.83, above the 50-day MA of 356.52, and above the 200-day MA of 352.60, indicating a bearish trend. The MACD of -5.11 indicates Negative momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 63.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:WKP.
Workspace Group plc R.E.I.T. Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | £2.09B | 45.36 | 1.35% | 4.30% | 45.36% | -79.84% | |
67 Neutral | £4.36B | 9.24 | 7.73% | 5.44% | 15.13% | 29.40% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
64 Neutral | £1.38B | 8.74 | 7.41% | 2.40% | 24.37% | 29.61% | |
55 Neutral | £664.52M | -5.48 | -8.83% | 7.57% | -2.05% | -2319.50% | |
48 Neutral | £213.95M | 38.58 | 1.34% | 6.80% | 4.03% | -79.67% | |
44 Neutral | £1.78B | 279.80 | -2.52% | 0.55% | 0.18% | -55.56% |
* Real Estate Sector Average
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Workspace Group plc R.E.I.T. Corporate Events
Business Operations and StrategyDelistings and Listing Changes
Workspace Group Seeks Admission of New Shares for 2026 Employee Schemes
Positive
Sep 23, 2026
Workspace Group PLC, a FTSE 250 REIT listed on the London Stock Exchange, specialises in flexible office space across London and the South East, operating a large portfolio of sustainable, characterful properties. It targets fast-growing and estab...
Business Operations and Strategy
Workspace Group Adds Shares to LSE to Satisfy Incentive Awards
Neutral
Aug 10, 2026
Workspace Group PLC, the FTSE 250 flexible workspace REIT, has expanded its equity base as it continues to operate 3.8 million sq. ft. of sustainable office space in London and the South East. The company’s portfolio of distinctive propertie...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Workspace Group Grants Sharesave Options to Staff and Senior Executives
Positive
Jul 24, 2026
Workspace Group plc has granted options to employees under its regular Sharesave Option Plan, allowing participants to buy company shares at an option price of 268p. The move reinforces the use of broad-based employee equity incentives within the ...
Business Operations and StrategyExecutive/Board ChangesStock BuybackDividendsShareholder Meetings
Workspace shareholders back board against Saba but block pre-emption change
Positive
Jul 23, 2026
Workspace Group PLC reported the results of its annual general meeting, where shareholders approved all but one of the board-backed resolutions, including the election and re-election of all current directors, auditor appointments, share allotment...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Workspace Group boosts occupancy and rent roll as it accelerates asset disposals and portfolio upgrades
Positive
Jul 15, 2026
Workspace Group PLC, London’s leading owner and operator of sustainable flexible workspaces, focuses on providing office and studio space across a stabilised London portfolio and selected South East offices. Its business model centres on act...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.