- Sequential increases in net desk sales continue into Q2, marking the Company’s strongest two months since September 2019.
- Across its global portfolio, occupancy continues to trend upwards at 53% as of the end of May.
- All Access increased to 20,000 memberships as of May, representing a 33% increase from March.
- WeWork announced a joint venture with SoftBank Latin America Fund in Argentina, Brazil, Chile, Colombia and Mexico in May, which builds on the existing set of strategic partnerships in China, Japan, India, and Israel.
NEW YORK, June 21, 2021 – WeWork, one of the leading global flexible space providers, today shared a business update highlighting strong sales momentum and accelerating recovery trends through April and May. As vaccine distribution expands, global restrictions ease, and companies begin to action their hybrid return-to-work strategies, WeWork continues to see an improvement in leading indicators such as desk sales, churn rates and occupancy across its portfolio.
Among the highlights for the first two months of Q2 2021 are:
Company Operating Results:
- As of May, WeWork’s global real estate portfolio included 767 locations across 38 countries, supporting 947,000 workstations and 505,000 total memberships.
- Gross desk sales were approximately 33,000 in April and 39,000 in May.
- Total occupancy increased to 53% as of May, up 3 percentage points since March.
Space-as-a-Service Sales Update:
The initial pace of recovery seen in the first quarter of 2021 has carried over into the first two months of the second quarter, as gross desk sales reached 33,000 in April and 39,000 in May, equating to approximately 4.3 million square feet of signed space so far this quarter. April and May marked WeWork’s strongest two months of net desk sales since September 2019, with net desk sales of 10,000 and 17,000, respectively, driven by strengthening sales momentum and declining churn rates, which have returned to pre-pandemic levels. The company also recorded positive net desk sales in all consolidated regions, demonstrating the global nature of recovery and accelerating demand for WeWork’s hybrid solutions. 97 out of 112 total markets have increased in occupancy from their low point during the pandemic.
Digitization of Real Estate – All Access and On Demand:
WeWork continued to see strong growth across WeWork’s All Access and On Demand products, with All Access memberships increasing from 15,000 in March to nearly 20,000 in May as we continue to sign strategic partnerships.
Platform – Asset-light Model:
WeWork continues to pursue franchising and other capital-light partnerships opportunistically. In April, the company finalized its franchising agreement with AMPA, a long-time local regional partner, for WeWork’s Israel assets, and in May, WeWork announced a joint venture with SoftBank Latin America Fund that provides SoftBank Latin America Fund with the exclusive right to operate the WeWork brand in Argentina, Brazil, Chile, Colombia and Mexico. Pro forma for this transaction, the company’s joint ventures and partnerships across China, India, Japan, Israel, and Latin America represent 212 locations across 11 countries, supporting 281,000 desks and 162,000 memberships.
Portfolio Optimization Update:
Through the first two months of the quarter, WeWork has also continued to optimize its real estate portfolio and expense structure through building exits and lease amendments. Since March, the company has completed an additional 17 exits and 51 amendments and expects to be substantially complete with its optimization efforts by the end of June.
WeWork was founded in 2010 with the vision to create environments where people and companies come together and do their best work. Since opening our first location in New York City, we’ve grown into a global flexible space provider committed to delivering technology-driven flexible solutions, inspiring spaces, and unmatched community experiences. Today, we’re constantly reimagining how the workplace can help everyone, from freelancers to Fortune 500s, be more motivated, productive, and connected. For more information about WeWork, please visit us at wework.com.
Note Regarding Financial Performance Estimates
The preliminary financial information in this press release has been prepared internally by management and has not been reviewed or audited by our independent registered public accounting firm. These statements are based on currently available information, reflect our current estimates and assessments and are not meant to be a comprehensive statement of our financial or operating results for the quarter ended June 30, 2021. There can be no assurance that actual results will not differ from our current estimates and assessments, and any such differences could be material.
Certain statements made in this press release are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements include all statements that are not historical facts, including statements regarding our financial condition, anticipated financial performance, business strategy and plans, market opportunity and expansion, and objectives of management for future operations. Forward-looking statements are predictions and although the Company believes the expectations reflected in any forward-looking statement are based on reasonable assumptions, it can give no assurance that its expectations will be attained, and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks, uncertainties and other factors. Such factors include, but are not limited to, the Company’s ability to refinance, extend, restructure or repay near and intermediate term debt, its indebtedness, its ability to raise capital through equity issuances, asset sales or the incurrence of new debt, retail and credit market conditions, impairments, its liquidity demands, and economic conditions. The Company discusses these and other risks and uncertainties in its periodic reports. The Company may update that discussion in its periodic reports, but otherwise takes no duty or obligation to update or revise these forward-looking statements, whether as a result of new information, future developments, or otherwise. All information provided in this press release is as of the date of this press release. Readers are cautioned not to put undue reliance on forward-looking statements.