This article is from the Australian Property Journal archive
COWORKING space operator WOTSO Property (ASX:WOT) has continued to benefit from the demand for flexible workspace across industries, HY23 revenue was up 30% from $18.2 million to $23.7 million.
WOTSO’s annualised income reached $25.5 million at 30 December 2022, up from $23.7 million as at 30 June 2022, with the group’s annualised turnover is $47.2M up 6.5% on 30 June 2022.
Funds from operations were down from $5.6 million in the pcp to $4.64 million, with FFO per security remaining at 3 cps, after borrowing costs rose by $1.8 million over the period.
Statutory profit was up to $7.3 million, up from $3.7 million in December 2021.
WOT’s portfolio has grown to 16 properties over the HY23 period, growing to over $400 million and bringing its flexspace business up to 5,000 members across 40,000sqm.
While the group’s total controlled space, which includes properties leased from third parties, reached 100,000sqm.
“As our flexible office solutions evolve we are finding that flexible space can be adapted to various businesses that have specific needs,” said Jessie Glew, joint managing director at WOTSO.
“We have partnered with experienced professionals in both the health and food sectors to develop and launch these new offers whilst leveraging the WOTSO brand.We are excited to already have our first WOTSO HealthSpace open and to be launching the first WOTSO CookSpace in the second quarter of 2023.”
The portfolio’s property vacancy has fallen to 4% with the WOTSO owned property portfolio occupancy at 96% and all WOTSO sites occupancy rising to around 80%.
Net rental income increasing by 17% to $11.7 million compared to December 2021.
Cash and cash equivalents were at $7.55 million, up from $2.5 million in June 2022, with gearing at 32% up from 29%.
Total assets were at $491.8 million up from $485 million. and statutory NAV per security up from $1.56 to $1.58.
“We are pleased that we have been able to deliver another consistent and strong distribution for the period and increase the Group’s net rental income by 17%, to $11.7 million, compared to the same period last year,” said Tim Brown, joint managing director at WOTSO.
“Rising interest rates are beginning to have an impact but our existing interest rate hedges combined with increasing revenue streams, means we enter the environment of higher interest rates and inflationary pressures with cautious optimism and on the lookout for our next opportunity.”
