- “flexible” space growing 23%, vs. 1.2% growth in total U.S. office stock
- avoiding capital expenses - navigating business uncertainty - serving mobile workforce - swing space
Aug-17: $4.4BN Softbank equity financing
Apr-18: $500mm unsecured debt upsized to 702mm (7yr Bond, Caa1u/B+/BB-), put value of company at $20BN
Aug-18: $1BN convertible debt w/ Softbank (42bn cap if non-Softbank lead on next equity financing)
Debt: $1.702BN outstanding
Pipeline: 309k desks, $1.7bn to build
Lease obligations: $18BN, however they claim only directly liable for $1.9BN (Ex. for 15yr lease, WeWork signs limited Corp guarantees - typically 6-12mo). Signed by SPE, not parent.
Regus (IWG) the biggest (54mm sf vs 14mm for WeWork) and longest standing player in the space has the following numbers:
£2.1B Mkt Cap, on 2017 Rev of £2.4B, & £377B EBITDA
Regus (IWG): <1x Revenue
WeWork: ~12x Revenue ($20B / (Q2’18: $422M x4)