Flexible business space provider Workspace saw a £9m drop in its valuation in the quarter to 30 September, despite strong rental growth over the period.
‘The good increases in rents have been tempered by a softening in reversionary yields of 18 basis points,’ chief executive Harry Platt said.
‘This has resulted in a £9m reduction in our valuation in the second quarter compared to growth of £21m in the first quarter.’
In the six months to 30 September, the company achieved a 2% rise in net asset value to £3.43 a share, with its portfolio increasing in value to £1.035bn from £1.002bn.
Net rental income increased 10% to £23.2m and on the operating side, pre-tax profits rose 37% to £7m.
‘We will not be immune from further yield shift but we would expect to offset this by our continuing focus on growing rental income which should deliver attractive and competitive asset and dividend growth for shareholders,’ Platt said.