• Flexspace income grew 9% to $15.8 million
• Traditional leasing income increased 7% to $7.9 million
• Funds from operations reached $2.1 million, with $1.6 million distributed to investors

WOTSO Property (ASX: WOT) has released its interim results for the half-year ended 31 December 2024, showcasing a strong first-half performance. The company's flexspace income grew by 9% to $15.8 million, compared to the same period in the previous year, while traditional leasing income increased by 7% to $7.9 million. Net rental income climbed 2% to $9.1 million. Funds from operations (FFO) reached $2.1 million for the half-year, with $1.6 million distributed to investors. The company made total investments of $3.63 million in property acquisitions, improvements, and expansion, including $690,000 allocated from cash flow to grow its leased footprint. Statutory profit before tax was $909,000, with FFO per security at 1.3 cents. WOTSO Property's balance sheet remains strong, with a diversified property portfolio, NAV per security at $1.45, and adjusted NAV (including the WOTSO FlexSpace business) at $1.83, while net gearing remains steady at 28%. The company is tapping into the growing demand for flexible, cost-effective spaces in the suburbs and regions, close to people's homes and agnostic to industry type and size. Key site leases have been renewed through 2029 and beyond, and a major renewal with Nationwide News at the Yandina property secures occupancy until at least 2033, with rent adjusted to $2.5 million per annum and an 8.55% yield.

WOTSO Property expects FFO to rise to around $2.4 million in the second half, reflecting both organic growth and the benefits of recent investments.

The company plans to launch five new locations, funded through FFO (beyond distributions), a sell down of its investment in Pyrmont Bridge Road Mortgage Fund, and a modest increase in asset gearing.