Workspace Group
Website:
Workspace Group
Index:
FTSE 250
EPIC: WKP
Supersector:
Real Estate
Sector:
Real Estate Investment Trusts
Subsector:
Industrial and Office REITs
Market Cap:
£810.6M
Payout Frequency: Semi-Annual
Workspace Group Dividend Analysis and Summary
Dividend summary
- Dividend: Interim dividend of 9.4p per share (unchanged year-on-year)
- Type: Ordinary dividend (not a REIT Property Income Distribution)
- Payment date: 02/02/2026
- Record date: 09/01/2026
- Ex-dividend date: 08/01/2026 (derived as one business day before the record date)
- Estimated cash cost: ~£18.1m
- Earnings cover (H1): Adjusted underlying EPS 15.8p vs interim 9.4p (~1.7x cover)
Dividend sustainability and growth
- Coverage: Interim is well covered by H1 adjusted EPS (1.7x). The company reiterates a policy of dividends fully covered by adjusted underlying EPS for the year.
- Earnings trend: H1 trading profit after interest down 6.4% to £30.6m; like-for-like rent roll down 3.3% and occupancy lower, partly offset by £2m cost efficiencies. Near-term pressure on earnings persists until occupancy rebuilds.
- Balance sheet and liquidity: LTV 36%, interest cover 3.6x, liquidity £167m (cash + undrawn). Debt largely fixed/hedged (82%) with average cost ~3.8%–4.1%, supporting payout stability.
- Growth trajectory: Interim held flat at 9.4p. With occupancy focus and disposals depressing near-term income, a cautious/flat dividend profile looks more likely in the short term, with scope for growth if occupancy and rent roll recover.
Structural and capital allocation considerations
- Portfolio recycling: £52.4m of disposals exchanged/completed YTD; targeting £200m within two years. While positive for balance sheet resilience and focus, disposals reduce rental income near term.
- Capex and projects: FY capex guided around £60m (similar to last year) to complete key refurbishments; capital-light refurbishments rolled out to boost occupancy/rent roll over time.
- Financing: RCF and term loan maturities extended in November 2025; £80m PP notes repaid in August 2025. Interest rate swap on £100m expires 31/01/2026, a modest potential variable-rate exposure thereafter unless re-hedged.
- Strategic partnership: 20-year lease with Qube (32,000 sq ft) and a £3m minority stake to support demand creation; helpful for occupancy but limited immediate EPS uplift.
Risks and flags to dividend stability
- Operating headwinds: Like-for-like occupancy down to 80.0% (overall occupancy 75.4%), like-for-like ERV per sq ft down 2.3%; rent roll declined. These factors weigh on earnings and dividend headroom if prolonged.
- Valuation pressure: Underlying portfolio valuation down 4.0% in H1; LTV rose to 36%. Further declines could tighten covenant headroom, though current levels remain comfortable.
- Cash flow timing: H1 net cash from operations after interest £27m vs dividends paid £32.8m (relates to prior final). Upcoming interim (~£18.1m) should be manageable, but free cash flow is sensitive to occupancy and capex pacing.
- Competition and demand: Softer economy and increased flexible space supply could delay occupancy rebuild and rent growth.
- Hedging roll-off: Interest rate swap expiry in late January 2026 could marginally lift interest costs if not replaced and if SONIA remains elevated.
Read more
Workspace Group Annual Dividend Yield - 6.77%
Dividends Used in Calculation:
| Ex-Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 09/01/2025 |
03/02/2025 |
Interim |
9.40p |
GBX |
| 03/07/2025 |
01/08/2025 |
Final |
19.00p |
GBX |
Total (Annual Dividends Per Share):
28.40p
Dividend Yield =
Annual Dividends Per Share (28.40p)
÷ Share Price (419.5p)
= 6.77%
Workspace Group Dividend History
| Ex Dividend Date |
Payment Date |
Type |
Amount |
Currency |
| 08/01/2026 |
02/02/2026 |
Interim |
9.4000p |
GBX |
| 03/07/2025 |
01/08/2025 |
Final |
19.00p |
GBX |
| 09/01/2025 |
03/02/2025 |
Interim |
9.40p |
GBX |
| 04/07/2024 |
02/08/2024 |
Final |
19.00p |
GBX |
| 04/01/2024 |
02/02/2024 |
Interim |
9.00p |
GBX |
| 06/07/2023 |
04/08/2023 |
Final |
17.40p |
GBX |
| 05/01/2023 |
01/02/2023 |
Interim |
8.40p |
GBX |
| 07/07/2022 |
05/08/2022 |
Final |
14.50p |
GBX |
| 06/01/2022 |
02/02/2022 |
Interim |
7.00p |
GBX |
| 01/07/2021 |
06/08/2021 |
Final |
17.75p |
GBX |
| 02/07/2020 |
07/08/2020 |
Final |
24.49p |
GBX |
| 09/01/2020 |
05/02/2020 |
Interim |
11.67p |
GBX |
| 04/07/2019 |
02/08/2019 |
Final |
22.26p |
GBX |
| 10/01/2019 |
06/02/2019 |
Interim |
10.61p |
GBX |
| 05/07/2018 |
03/08/2018 |
Final |
18.55p |
GBX |
| 11/01/2018 |
06/02/2018 |
Interim |
8.84p |
GBX |
| 06/07/2017 |
07/08/2017 |
Final |
14.27p |
GBX |
| 12/01/2017 |
07/02/2017 |
Interim |
6.80p |
GBX |
| 07/07/2016 |
05/08/2016 |
Final |
10.19p |
GBX |
| 07/01/2016 |
02/02/2016 |
Interim |
4.86p |
GBX |
| 09/07/2015 |
07/08/2015 |
Final |
8.15p |
GBX |
| 08/01/2015 |
03/02/2015 |
Interim |
3.89p |
GBX |
| 09/07/2014 |
01/08/2014 |
Final |
7.09p |
GBX |
| 08/01/2014 |
04/02/2014 |
Interim |
3.54p |
GBX |
| 10/07/2013 |
02/08/2013 |
Final |
6.45p |
GBX |
| 09/01/2013 |
05/02/2013 |
Interim |
3.22p |
GBX |
| Year |
Interim |
Final |
Currency |
Total |
Change |
| 2024 |
9.000 |
19.000 |
GBX |
28.000 |
8.520 |
| 2023 |
8.400 |
17.400 |
GBX |
25.800 |
20.000 |
| 2022 |
7.000 |
14.500 |
GBX |
21.500 |
21.120 |
| 2021 |
|
17.750 |
GBX |
17.750 |
-50.910 |
| 2020 |
11.670 |
24.490 |
GBX |
36.160 |
10.000 |
| 2019 |
10.610 |
22.260 |
GBX |
32.870 |
20.000 |
| 2018 |
8.840 |
18.550 |
GBX |
27.390 |
29.990 |
| 2017 |
6.800 |
14.270 |
GBX |
21.070 |
40.000 |
| 2016 |
4.860 |
10.190 |
GBX |
15.050 |
25.000 |
| 2015 |
3.890 |
8.150 |
GBX |
12.040 |
13.260 |
| 2014 |
3.540 |
7.090 |
GBX |
10.630 |
9.920 |
| 2013 |
3.220 |
6.450 |
GBX |
9.670 |
|
Workspace Group Dividend Calculator
Workspace Group Dividend Growth
| Dividend Growth (1Y) |
–
|
| Dividend CAGR (5Y) |
9.86%
|
| Years of Growth |
4
|
| Payout Ratio |
–
|
| Buyback Yield |
-0.15%
|
| Shareholder Yield |
6.62%
|
| P/E Ratio (TTM) | – |
|---|
| Forward P/E | 13.41 |
|---|
| P/FCF | – |
|---|
| Earnings Yield | -9.41% |
|---|
| FCF Yield | – |
|---|
| ROE | -5.2% |
|---|
| ROCE | 4.17% |
|---|
| Profit Margin | -41.5% |
|---|
| Operating Margin | 51.56% |
|---|
| Gross Margin | 65.77% |
|---|