Flexible London Landlord Workspace Warns on Profit, Dividend

Workspace Group Plc shares tumbled after the company warned investors it faces a “substantial” profit squeeze due to higher costs and lower rents that will force the London-based flexible office landlord to cut its dividend.

The company, a target of activist investor Saba Capital Management, sees rents and occupancy falling due to macro uncertainty and higher interest costs, according to a statement Friday. New Chief Executive Officer Charlie Green is aiming to reposition the business as the budget landlord of choice for London startups and small businesses but warned it would have a short-term hit.