Workspace has seen a fall in income push it into the red with a £235.7m loss for the year to the end of March.
The performance during the pandemic compares to a profit of £72.5m a year earlier.
The flexible office company’s EPRA net tangible assets per share fell by 13.8% to £9.38. The portfolio was valued at £2.324bn, down 10% on the year.
Workspace said the valuation decline reflected a fall in estimated rental values.
During the year, net rental income fell by 33% to £81.5m, with £19.9m of rent discounts and deferrals offered to customers. It reported a 10% net loss in customers and like-for-like occupancy down 11.7% to 81.6%.
However, new customer enquiries and lettings are improving. The company reported 150 lettings in March, compared to an average of 96 per month during the year.
Workspace will launch a targeted campaign to promote its offer, highlighting the benefits of working in “iconic places where businesses can promote their own identity and provide a home for their teams”.
Chief executive Graham Clemett said: “The past year has been one of the most challenging in Workspace’s history, with London effectively closed for much of it. This is borne out in our results, which reflect the impact of the pandemic on our customers.”
He added: “Pricing has fallen in line with the weaker levels of customer demand through the year and we expect it to remain subdued as we focus on driving the recovery in occupancy. With our flexible leases, however, pricing is extremely dynamic and this allows us to capture reversion more quickly than a traditional lease as market demand improves.”
He said the company was supported by the “strength of our model, prudence of our financial strategy and enduring appeal of our flexible offer”.
Clemmett added: “Never before in our history has there been such a spotlight shone on the office market as businesses all over the world consider how to use office space in the future. We are taking this opportunity to promote the Workspace offer as London reopens for business over the coming months.”
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