back ANNUAL RESULTS FOR THE YEAR TO 31 MARCH 2017

HELICAL’S LONDON PORTFOLIO CONTINUES TO DELIVER

Gerald Kaye, Chief Executive, commented: “Helical has a dynamic portfolio with good upside potential through a combination of development, refurbishment and significant asset management opportunities. We believe our concentration on offices and mixed use assets in London, offices in Manchester and well located logistics units will provide capital growth from development gains and rising income streams.

“We have ambition to continue to grow the Company and have actively sought to add to our development pipeline with exciting new schemes, particularly in London. Rebalancing the portfolio through the sale of non-core assets enables us to recycle some of the value we have created in recent years and fully pursue those opportunities that we have identified.”

Financial Highlights

Results

  • EPRA net asset value per share up 3.7% to 473p (31 March 2016: 456p).
  • EPRA earnings per share of 0.5p (2016: 17.1p).
  • IFRS basic earnings per share of 34.0p (2016: 91.3p).
  • IFRS Profit before tax of £41.6m (2016: £114.0m).
  • Total Accounting Return of 8.3% (2016: 22.5%).
  • See-through Total Property Return of £79.9m (2016: £164.6m).
    • Group’s share of net rental income of £47.0m (2016: £43.4m) – up 8.3%.
    • Development losses of £5.7m (2016: profits of £27.5m), after provisions of £12.8m (2016: £6.4m).
    • Net gain on sale and revaluation of investment properties of £38.6m (2016: £93.7m).
  • Final dividend proposed of 6.20p per share (2016: 2nd interim plus final 5.87p) – up 5.6%.

Property Valuations

  • Group’s share of property portfolio £1,205m (31 March 2016: £1,240m).
  • Unleveraged return of property portfolio as measured by IPD of 9.4% (2016: 21.7%) compared to 4.4% (2016: 11.4%) for the benchmark index.
  • Investment property valuations, on a like-for-like basis, up 5.2% (4.5% including sales and purchases).

Financing

  • See-through loan to value reduced to 51% (31 March 2016: 55%).
  • Average maturity of the Group’s share of debt of 3.6 years (31 March 2016: 4.5 years) at an average cost of 4.3% (31 March 2016: 4.2%).
  • Group’s share of cash and undrawn bank facilities at 31 March 2017 of £267m (31 March 2016: £193m).

Operational Highlights

London Portfolio – strong valuation performance supported by ongoing lettings progress and the completion of refurbishments

  • 9.8% valuation increase, on a like-for-like basis, of see-through London investment portfolio, valued at £666m at 31 March 2017 (65.5% of investment portfolio) compared with £593m at 31 March 2016 (56.4%).
  • Contracted rents on our see-through London portfolio at 31 March 2017, including pre-lets at The Bower, increased to £27.9m (2016: £23.6m) compared to an ERV of £45.0m (2016: £45.4m).
  • At 25 Charterhouse Square EC1, refurbishment works on this 43,600 sq ft building were completed in March 2017 with 50% of the office space (18,725 sq ft) let at £75 psf.
  • At The Loom E1, a major repositioning of the building was completed in September 2016 and 19,275 sq ft is currently available with 2,750 sq ft under offer. Average contracted rents of £37.50 psf compare to lettings during the year of up to £54 psf.
  • Planning permission granted at Power Road Studios, Chiswick W4 for 42,500 sq ft of new office space.
  • At The Bower EC1, 58,907 sq ft of Phase 2, The Tower, was pre-let to WeWork in November 2016.
  • At Barts Square EC1, 118 (82%) of the 144 residential units in Phase One had exchanged by 24 May 2017 (31 March 2016: 102 units) at an average of £1,570 psf, with a further three reserved.

Regional Portfolio – asset recycling providing stronger focus on Manchester offices and logistics units.

  • 2.1% valuation decrease, on a like-for-like basis, in the see-through Regional investment portfolio, valued at £351m at 31 March 2017 (34.5% of investment portfolio) compared with £460m at 31 March 2016 (43.6%).
  • Contracted gross rents on see-through Regional investment portfolio at 31 March 2017 of £24.3m (2016: £32.4m) compared to an ERV of £26.6m (2016: £35.6m).
  • Regional investment portfolio comprised 9.3% offices, 5.0% in town retail, 2.8% retail parks, 15.4% logistics and 2.0% other (percentages of whole investment portfolio at year end).
  • Sales of 22 regional assets during the period comprising 13 logistics units, three offices and six retail assets for £117m at a 1.5% premium to March 2016 values.
  • The Morgan Quarter, Cardiff and a retail park at Great Yarmouth sold post year end for a total of £59m.
  • Trinity Court, a 47,500 sq ft office building in Manchester, acquired for £12.9m post year end.
  • 39,047 sq ft let at Churchgate House, Manchester at average rents of £17.27 psf, 12.7% above March 2016 ERV.
  • 92,672 sq ft logistics unit let in Burton-on-Trent at £5.50 psf, 5% above March 2016 ERV.
  • Since 31 March 2016, 96 retirement village units sold for £39.3m with 53 reserved or exchanged for £27.4m.
  • Land at Liphook sold for £3.7m at a profit of £3.1m.

For further information, please contact:

Helical plc 020 7629 0113
Gerald Kaye (Chief Executive)
Tim Murphy (Finance Director)

Address: 5 Hanover Square, London W1S 1HQ
Website: www.helical.co.uk
Twitter: @helicalplc

FTI Consulting 020 3727 1000
Dido Laurimore/Tom Gough/Richard Gotla

Results Presentation

Helical will be holding a presentation for analysts and investors at 9am, Thursday 25 May 2017 at FTI Consulting, 200 Aldersgate, Aldersgate Street, London, EC1A 4HD. If you would like to attend, please contact Jenni Nkomo on 020 3727 1000, or email her at jenni.nkomo@fticonsulting.com.

Helical plc will host a live conference call and webcast. The details are as follows:

Conference Call Details:
Participants, Local – London, United Kingdom: +44 (0)330 336 9411
Confirmation Code: 5857195

Webcast Link:

http://webcasting.brrmedia.co.uk/broadcast/591f0b181ef2297b08216e7c