Workspace The scene was already set – news today on medium-term trading profit outlook, (even) more disposals to come and a solid start to ‘27 leasing wise: FY26 First Take

Research evidence excerpt

Workspace The scene was already set – news today on medium-term trading profit outlook, (even) more disposals to come and a solid start to ‘27 leasing wise: FY26 First Take

Neil Green, CFA AC Europe Equity Research

(44-20) 7134-4478 10 June 2026 C A Z E N O V E

neil.d.green@jpmorgan.com

the financial year ending 31 March 2027 on account of a number of factors, including

lower opening rent roll versus FY26, disposals, higher borrowing costs, less capitalised

interest, higher expenses and a reduced contribution from other non-recurring items.

Along with disposing of the remaining £75m properties identified to reach the £200m

target, we are considering a further £100m+ of property disposals by the end of FY27.

This will increase our capacity for accretive investment within the portfolio. While we

can cover all of our debt maturities until March 2028 using existing undrawn facilities,

we are actively reviewing our refinancing options. We are confident in the structural

demand for our space and excited by the opportunity to deliver sustainable earnings

growth by elevating our product through investment in our portfolio. We have set

ourselves a medium-term ambition to generate, organically, over £125m of annual

trading profit before interest.”

• Likely changes to consensus: Minimal to FY27 earnings estimates, which have already

reset post 4Q Trading Update, although news today of an additional £100m of sales could

weigh on current expectations for FY28. We think the market will also look at the two

recent small transactions done at a 15.5% discount to book value, and while we expect

further weakness in values for the coming year (JPMe FY28 NAV: 634p), we would be

reticent to read-across this result across the broader asset portfolio.