back Half-Year Results for the six months to 30 September 2016

Gerald Kaye, Chief Executive, commented:

“Against a background of some uncertainty in the UK Real Estate market and widespread debate as to whether the “property cycle” has peaked or is merely pausing, Helical’s results for the half year to 30 September 2016 show growing net rental income, a net gain on sale and revaluation of our investment portfolio, growth in Shareholders’ Funds and an increase in our EPRA net asset value per share.

“Helical’s portfolio at the half year reflected passing rents of £39m, contracted rents of a further £13m and an ERV of £78m. As this reversionary potential is captured and passing rental income grows, I would expect our EPRA earnings per share to grow proportionately.

“In London, where most of this reversionary potential exists, we have an exciting collection of assets under refurbishment and development in locations where we believe demand from occupiers will continue to be robust. Today’s news of a 59,000 sq ft pre-let at The Bower is a good example of this and I am confident that we will continue to attract occupiers to ensure that our schemes become vibrant and dynamic office communities.

“Looking ahead, the UK faces a continued period of uncertainty as it seeks its place in a post Brexit world. However, I believe it will remain resilient and London will continue to be a World City attracting people, businesses and investors.”

Financial Highlights

Results

  • EPRA net asset value per share up 3% to 471p (31 March 2016: restated 456p).
  • EPRA earnings per share of 4.4p (2015: 13.0p).
  • IFRS Profit before tax of £31.1m (2015: £85.9m).
  • Total Property Return of £47.8m (2015: £107.6m).
  • Group’s share of net rental income of £24.6m (2015: £20.8m) – up 18%.
  • Net gain on sale and revaluation of investment properties of £25.8m (2015: £68.1m).
  • Interim dividend proposed of 2.40p per share (2015: 2.30p) – up 4.3%.

Property Valuations 

  • Group’s share of property portfolio £1,250m (31 March 2016: £1,240m).
  • Investment property valuations, on a like-for-like basis, up 4.0% (3.0% including sales and purchases) with London office valuations up 5.3% (5.3% including sales and purchases).

Financing

  • See-through loan to value of 39% on a secured basis (31 March 2016: 40%) and 53% overall (31 March 2016: 55%). Post 30 September 2016 sales reduce pro forma loan to value to 34% on a secured basis and 49% overall.
  • Average maturity of the Group’s share of debt of 4.0 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 30 September 2016 of £220m (31 March 2016: £193m).

Operational Highlights               

London Portfolio  

  • 3% valuation increase of London investment portfolio now valued at £651m (61.5% of investment portfolio) – 31 March 2016: £593m (56.4%).
  • Contracted rents on our London portfolio at 30 September 2016 were £23.4m compared to an ERV of £46.9m.
  • At Barts Square EC1, 108 of the 144 residential units in Phase One had exchanged at 23 November 2016 (31 March 2016: 102 units), with a further two reserved.
  • One King Street, Hammersmith, W6 was sold post 30 September 2016 for £34.5m, its March value, at a net initial yield of 4.85%.
  • Completion of a major refurbishment at The Loom, E1 with 13,750 sq ft subsequently let at rents in excess of £50 psf and a further 9,250 sq ft under offer.

Regional Portfolio

  • 0% valuation increase in the Regional investment portfolio, on a like for like basis, now valued at £408m (38.5% of investment portfolio) – 31 March 2016: £460m (43.6%).
  • Contracted gross rents on regional investment portfolio of £28.5m (31 March 2016: £32.4m).
  • Regional investment portfolio now comprises 9.5% offices, 5.4% in town retail, 3.0% retail parks, 19.5% logistics and 1.1% other (percentages of whole investment portfolio)
  • Sales of nine regional assets during the period comprising two logistics units, two offices and five retail assets for £56m at a 3.6% discount to March values.
  • Sales of ten logistics units and one retail asset post 30 September 2016 for £55m at a 6.7% premium to March values.
  • 23,735 sq ft let at Churchgate House, Manchester at average rents of £16.50 psf, 7.7% above March ERV.
  • 92,672 sq ft logistics unit let in Burton-on-Trent at £5.50 psf, 5% above March ERV.
  • Since March 2016, 56 retirement village units sold for £22.7m with 44 reserved for £22.3m.
  • Land at Liphook sold for £3.7m (of which £2.5m was subsequent to half year end).


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

Half Year Results Presentation

Helical will be holding a presentation for analysts and investors at 9:30am, Thursday 24 November 2016 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 jenni.nkomo@fticonsulting.com.

The presentation will be on the Company’s website www.helical.co.uk and a conference call facility will be available. The dial-in details are as follows:

Participants, Local – London, United Kingdom: +44 (0) 203 043 2002
Confirmation Code: 1906196


Half Year Results for the six months to 30 September 2016
(in PDF format).