What makes us different?

We are income focused:

This year has seen, if possible, an even greater spotlight on our part of the real estate market. We have seen a number of new entrants and a never-ending stream of media interest in the growth of co-working. However, despite the inevitable confusion around the different ‘flexible’ office space products on offer, I am delighted that Workspace continues to cut through the noise.

Demand for our space, driven by our in-house marketing efforts, has remained strong. That strength of demand and activity, with an average of 1,016 enquiries and 93 lettings per month, has delivered excellent income growth, and that is what Workspace is really all about – relentlessly driving income growth across our portfolio over the long term.

As a property company, Workspace values ownership of its assets. We nurture our properties, seeking and capturing opportunities to reposition, refurbish and redevelop them over time in order to meet changing customer requirements and deliver income growth.

Total rent roll was up 26.1% in the year to £112.9m, and I am particularly pleased that we delivered rental growth at our like-for-like properties of 8.6%. The rental income growth has continued to translate into a very positive trading profit performance, which increased by 20% to £60.7m in the year.

Adjusted trading profit after interest

£60.7m

+20%

Like-for-like rental growth

+8.6%

We are customer focused:

Our industry, rightly so, has become increasingly focused on providing a service to customers beyond their four walls. Since its foundation, Workspace has marketed directly to customers, building strong relationships and, as a result, developing a unique understanding of their needs. This focus on the customer, coupled with ownership of our real estate, allows us to adapt our buildings and continually evolve our offer.

This year, for example, we made a commitment to roll out WiredScore certifications across our portfolio. Our achievement of 15 Wired Certified Gold or Platinum ratings so far demonstrates the significant work we are undertaking to ensure our customers have access to the best, most secure and reliable technology infrastructure in their space.

Customer enquiries per month in 2017/18

1,016

Buildings that are Wired Certified Gold or Platimun

15

We are future focused:

Whether debating the latest technology innovations, looking at potential property acquisitions or reviewing our portfolio for the next refurbishment or redevelopment opportunity, Workspace is always focused on the future. With that in mind, we regularly consider the depth and experience of the Executive Committee and, as a result, in October 2017, John Robson was promoted to the role of Asset Management Director.

I am delighted that we have delivered such a strong performance over the last five years, and believe we have the right strategy in place to continue to grow the business and deliver further value for shareholders.

We have an extensive pipeline of refurbishment and redevelopment projects, and during the coming year we will complete nine projects, bringing 456,000 sq. ft. of new and upgraded space to the market. In the last year, we have also acquired three large properties, adding significant rental income to our portfolio. Some of these properties come with longer-term leases in place but provide attractive repositioning opportunities in the future alongside our existing project pipeline.

With continued strong demand for our product, a growing potential customer base and a robust balance sheet, Workspace is well positioned for the future.

Projects underway

16

Projects with planning

4

Projects in design

6

Projects to be completed in 2018/19

9

The right strategy drives future performance.

Click or touch the diagram to find out how.

Right
market London is growing and changing.
Right
properties Creating modern growth environments.
Right
customers Open to all.
Right
people Driving performance.
Right
brand Increasing recognition and reputation.

The
Workspace
Advantage

Strategic priorities that drive Portfolio value

Right market

With its position as a global hub for business and culture, London remains the right market for our business. The opportunity in London is extremely attractive, with strong demand from all types of businesses for our offer. We continue to see opportunities to acquire new assets that meet customer demand for our space and will deliver attractive returns to shareholders, and our deep market insight ensures we are able to move quickly when these opportunities arise.

Measuring success in 2018

458,700 sq. ft.

added to the portfolio

What we achieved in 2017/18

Three major acquisitions in exciting locations, adding 458,700 sq. ft. to the portfolio.
Customer enquiries remained strong at an average 1,016 per month.

What we aim to do in 2018/19

Continue to pursue acquisitions in London where we see opportunities to create value.

Strategic priorities that drive Portfolio value

Right properties

We have a high-quality portfolio of properties in dynamic London locations and we are constantly upgrading our assets. We are delivering capital and income growth by letting up the new and upgraded space delivered by our extensive refurbishment and redevelopment pipeline. We remain focused on creating and, opportunistically, acquiring the right properties that will attract our customers.

Measuring success in 2018

78.9%

occupancy at The Record Hall reached in 10 months

What we achieved in 2017/18

Recently launched properties are letting up well, e.g. The Record Hall reached 78.9% occupancy in 10 months. Continued work on project pipeline, with nine completing, in 2018/19.
Expectations for commercial property rental growth are tapering

What we aim to do in 2018/19

Progress our extensive project pipeline to drive income and capital growth.

Strategic priorities that drive Platform value

Right customers

Our properties are open to all and our customer base is made up of some of London’s fastest growing and established businesses from a broad mix of sectors. Our customers range from freelancers, consultants and early-stage businesses right up to well-known brands and established companies.

Measuring success in 2018

131

Customer events held during the year

What we achieved in 2017/18

131 customer events held during the year.
351 customers expanded within Workspace during the year.

What we aim to do in 2018/19

Bring upgraded space to the market for our customers and launch online benefits platform.

Strategic priorities that drive Platform value

Right people

Employing the right people continues to be critical for the success of the business. Workspace’s people display deep knowledge of their subjects, have an inquisitive nature and a thirst for innovation, and show genuine care for our customers, our communities and each other.

Measuring success in 2018

100

The number of people involved in the articulation of our values

What we achieved in 2017/18

Worked with people across the business to articulate our company values, which will help us to deliver The Workspace Advantage.

What we aim to do in 2018/19

Launch the new Workspace values, ensure engagement with all employees and reward successes.

Strategic priorities that drive Platform value

Right brand

Workspace has a strong brand, and we work hard to ensure that our offer is highly visible to prospective customers as they embark on their search for office space. Digital marketing, a strong social media presence and employees who live our values are all key to attracting and retaining customers and ensuring high levels of customer satisfaction.

Measuring success in 2018

1.1m

Website hits

What we achieved in 2017/18

1.1m website hits during the year.
38% increase in first-time visits year-on-year thanks to The Workspace Advantage brand campaign.

What we aim to do in 2018/19

Continue brand tracker survey and drive further engagement with the brand through social media.

What we achieved in 2017/18

Three major acquisitions in exciting locations, adding 458,700 sq. ft. to the portfolio.
Customer enquiries remained strong at an average 1,016 per month.

What we aim to do in 2018/19

Continue to pursue acquisitions in London where we see opportunities to create value.

What we achieved in 2017/18

Recently launched properties are letting up well, e.g. The Record Hall reached 78.9% occupancy in 10 months. Continued work on project pipeline, with nine completing, in 2018/19.
Expectations for commercial property rental growth are tapering

What we aim to do in 2018/19

Progress our extensive project pipeline to drive income and capital growth.

What we achieved in 2017/18

131 customer events held during the year.
351 customers expanded within Workspace during the year.

What we aim to do in 2018/19

Bring upgraded space to the market for our customers and launch online benefits platform.

What we achieved in 2017/18

Worked with people across the business to articulate our company values, which will help us to deliver The Workspace Advantage.

What we aim to do in 2018/19

Launch the new Workspace values, ensure engagement with all employees and reward successes.

What we achieved in 2017/18

1.1m website hits during the year.
38% increase in first-time visits year-on-year thanks to The Workspace Advantage brand campaign.

What we aim to do in 2018/19

Continue brand tracker survey and drive further engagement with the brand through social media.