Australian-New Zealand coworking operator WOTSO reported a 29% expansion of its network to 40 locations in the year ended June 30, 2026, alongside a 1% increase in underlying EBITDA to $10.12 million.
The portfolio now spans eight Australian states and territories plus New Zealand, with New South Wales accounting for 22 of the 40 sites. Nine new Flexspace locations were added during FY26, including Sydney CBD with 189 desks, Rhodes with 147 desks, and South Melbourne with 121 desks. Total desk inventory reached 8,500, supported by $2.6 million in landlord contributions. Seven additional locations are confirmed for FY27, with six leased and one owned.
Occupancy remained stable at 97% across the portfolio, while average Flexspace occupancy stood at 79%. Revenue per available desk rose 2% annually to $367, with same-location RevPAD increasing 6% to $379. The network now serves 8,500 members across 3,685 businesses, including 1,938 office and coworking clients and 1,747 virtual office users.
Total revenue grew 4% to $48.75 million, driven by an 11% increase in Flexspace sales to $35.28 million. Real estate income declined 12% to $13.1 million following the February 2026 disposal of the Yandina asset. Underlying EBITDA rose 1% to $10.12 million from $10.06 million a year earlier, while the loss before income tax improved to $865,000 from $4.4 million in FY25.
Net asset value per security fell 3% to $1.37, while adjusted NAV per security stood at $1.76. The company controlled $283 million in gross property holdings, including 17 wholly owned properties, and reduced net borrowings to $94.3 million. Net gearing declined to 27.8%, and the group's loan-to-value ratio fell to 38%, down one percentage point year-over-year.
Capital expenditure totaled $2.8 million for the nine new Flexspace locations, while $67.3 million in borrowings were refinanced at an effective margin of 1.86%, down from 1.96% in FY25. WOTSO deployed $1.6 million to repurchase 2.5 million securities at an average price of $0.62, generating 1.25 cents per security in NAV accretion. Total distributions reached 2.80 cents per security, up from 2.25 cents in FY25, including a final payout of 1.45 cents.
Digital initiatives contributed to performance, with a day-pass e-commerce campaign launched in April 2026 lifting online sales penetration to about 70% from 30% previously. Monthly online sales rose from roughly $70,000 to over $200,000. Demand-based pricing for meeting rooms generated an incremental $50,000 in revenue in July 2026 alone. The inaugural CookSpace commercial kitchen in North Strathfield achieved 100% occupancy within months and delivered returns of just under $500 per square meter to the property.
