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Investing.com – WeWork stock (NYSE:WE) traded 1.2% higher in Monday’s premarket as the company narrowed its loss in the third quarter while reporting higher desk sales and increased occupancy for October as well.
Adjusted EBITDA loss was $356 million for the third quarter, $93 million less than the prior quarter’s loss, as the company signed up more clients. The reopening of the economy. and the spread of vaccination among the workforce, led to higher business activity. Revenue rose 11% to $661 million.
WeWork’s consolidated gross desk sales were 155,000, including renewals, and equating to 9.3 million square feet. New desk sales totaled 84,000 in the same period. In October, preliminary gross desk sales of 45,000 equated to 2.7 million square feet, and preliminary new desk sales were 25,000.
WeWork said it continued to take an outsized share of overall market leasing activity compared to traditional commercial office leasing activity. While WeWork accounts for about half a percent of the U.S. office inventory, the company said it sold the equivalent of over 9% of U.S. office leasing activity in the third quarter.
Physical occupancy continued to trend upwards to 56% as of end-September, up from 50% at the end of June. Including the incremental 30,000 net memberships that are already contracted to move in, physical occupancy would increase to 60%, the company said.
The net loss was $844 million in the quarter and included $262 million of non-cash and non-recurring expenses, primarily from depreciation, amortization and impairments.
