WOTSO Property releases HY22 results

• WOTSO is Australia's first listed flexible property security
• Announced two acquisitions so far this fiscal year
• Revenue is up despite Delta disruptions last year

February reporting season continues with WOTSO (ASX: WOT), a diversified REIT that has a portfolio of flexible workspaces targeting small to medium enterprises nationally, releasing its half-yearly report.

Despite the challenges of the past year, WOTSO – Australia’s first listed flexible property security – has continued to expand its portfolio.

Last February, WOTSO Limited Planaloc Limited and the BlackWall Property Trust were stapled to create WOTSO Property.

A further two properties have been acquired over the six months to December 2021, taking total acquisitions to five properties over the past 12 months. WOT’s 15-strong portfolio consists of just over 80,000sqm of net leasable area with 40,000 of flexible space.

The first property acquired during this period was a property in Mandurah – the first foray in Western Australia –  with the second on Sydney’s lower north shore.

Tim Brown, WOT joint managing director, said the two acquisitions reflect the continuation of the REIT’s story.

“Our expansion into Western Australia will bring the WOTSO brand to a whole new market – a market that we know is ready to embrace our work-near-home offering,” said Mr Brown.

“On top of this, the property on Military Road, Cremorne NSW gives us great optionality in relation to WOTSO’s presence on Sydney’s lower north shore. We are comfortable with an outcome that sees WOTSO occupy either the Cremorne site only or both the Cremorne site and existing Neutral Bay site.”

Revenue up despite Delta impact

Back in June 2021, WOTSO reported its highest ever annualised revenue, growing $5 million above pre-pandemic revenue of $16 million.

The mandated lockdowns at the beginning of the new financial year deeply affected WOTSO’s revenue. However, since then, it has recovered with annualised revenue just shy of $20 million as of December 2021.

“Like so many Australian businesses WOTSO was not immune to the persistent disruptions caused by COVID,” said Jessie Glew, joint managing director.

“But, it’s fantastic to see the recovery well underway to our existing members returning to their workspaces and a steady stream of new members who are looking to adapt to changing work trends and capitalise on the flexibility that we offer.”

WOT will pay a distribution of 3 cents per security on 8 April – the same amount it paid on 31 August 2021.

Key Numbers

*Prior year for these items from Dec 20 BlackWall Property Trust accounts prior to stapling to WOTSO.