WeWork rival IWG resumes dividends, eyes $1 billion in medium-term profit

(Reuters) - Office rental firm IWG said on Tuesday it will resume regular dividend payouts and set a medium-term core profit target of $1 billion, betting on permanent hybrid work models and improved pricing.

Office landlords are slowly recovering from pandemic lows as employers opt for permanent hybrid working models, in which employees need to be in the office for a stipulated number of days.

Switzerland-headquartered IWG, which owns the Spaces and Regus brands, has said it is looking to acquire more of collapsed rival WeWork's sites on expectations of strong demand.

The company, which paused dividends in 2020, said it expects to pay a final dividend of 1 pence per share.

IWG, which has about 3,500 work locations in more than 120 countries, counts Microsoft, Disney, Samsung and HSBC, among others, as its clients.

Shares in the London-listed firm were up 2.5% to 153.1 pence at 1350 GMT.

(Reporting by Anchal Rana in Bengaluru; Editing by Krishna Chandra Eluri)