The Group’s main objective is to maximise growth in net asset value per share, which we seek to achieve through increases in investment portfolio values and from retained earnings from other property related activity. EPRA net asset value per share is the property industry’s preferred measure of the proportion of net assets attributable to each share as it includes the fair value of net assets on an ongoing long-term basis. The adjustments to net asset value to arrive at this figure are shown in Note 23 to the financial statements.

The EPRA net asset value per share at 31 March 2020 increased by 6.0% to 511p (31 March 2019: 482p). EPRA triple net asset value per share at 31 March 2020 increased by 3.2% to 480p (31 March 2019: 465p).

MSCI produces several independent benchmarks of property returns that are regarded as the main industry indices.

MSCI has compared the ungeared performance of Helical’s total property portfolio against that of portfolios within MSCI for over 20 years. The Group’s annual performance target is to exceed the top quartile of the MSCI UK March-Valued Annual Property Index, which it has consistently achieved. Helical’s ungeared performance for the year to 31 March 2020 was 9.6% (2019: 10.1%). This compares to the MSCI UK March-Valued Annual Property Index of       -1.1% (2019: 3.6%) with an upper quartile return of 2.9% (2019: 7.0%).

The MSCI Central London Offices Total Return Index showed a return of 4.5% (2019: 4.8%) with an upper quartile return of 6.2% (2019: 6.2%).

Helical’s unleveraged portfolio returns to 31 March 2020 were as follows:

Source: MSCI

Total Shareholder Return is a measure of the return on investment for Shareholders. It combines share price appreciation and dividends paid to show the total return to the Shareholder expressed as an annualised percentage.

The Total Shareholder Return in the year to 31 March 2020 was 8.7% (2019: 5.2%).

1. Growth over all periods to 31/03/19.
2. Growth in FTSE All-Share Return Index over all periods to 31/03/20.
3. Growth in FTSE 350 Real Estate Super Sector Return Index over all periods to 31/03/20. For data prior to 30 September 1999 FTSE All Share Real Estate Sector Index has been used.
4. Growth in Total Return of MSCI UK Monthly Index (All Property) over all years to 31/03/20.

Total Accounting Return is the growth in the net asset value of the Group plus dividends paid in the reporting year, expressed as a percentage of the net asset value at the beginning of the period. The metric measures the growth in Shareholders’ Funds each year and is expressed as an absolute measure.

The Total Accounting Return in the year to 31 March 2020 was 7.7% (2019: 8.4%).

A high level of staff retention remains a key feature of Helical’s business. The Group retains a highly skilled and experienced team. We assess our success based on two key metrics: the average length of service of the Group’s head office employees and average staff turnover.

The average length of service of the Group’s head office employees at 31 March 2020 was 10.0 years and the average staff turnover during the year to 31 March 2020 was 10.3%.

• Practical completion achieved at Kaleidoscope, 55 Bartholomew and the last phase of residential at Barts Square, all in Farringdon, London EC1, marking the conclusion of a 2.5m sq ft development programme.
• Planning permission granted to enhance the ground floor configuration and add an additional floor of 13,175 sq ft within the envelope of the existing design at 33 Charterhouse Street, Farringdon, London EC1. The new c.200,000 sq ft office development, in JV with AshbyCapital, should complete during Summer 2022.
• 23 new office lettings completed in London, representing 203,857 sq ft, delivering contracted rent of £15.4m (Helical’s share £3.6m) at 5.0% above 31 March 2019 ERV.
• Five additional new office lettings completed in London on a “Plug & Play” basis, representing 35,268 sq ft, generating £3.0m of contracted rent (Helical’s share £2.7m).
• In Manchester, eight office lettings (including one on a “Plug & Play” basis) and a retail letting completed, comprising 50,324 sq ft in total, generating rental income of £1.2m at 2.9% above 31 March 2019 ERV.
• Successful equity recycling with the sale of Power Road Studios, a 57,164 sq ft multi-let office campus in Chiswick for £41.6m, reflecting a net initial yield of 4.8%.
• Subsequent to the year-end, and during the lockdown period, the Company has achieved a further disposal with the sale of 90 Bartholomew Close, London EC1, held in joint venture, to La Francaise Real Estate Partners International for £48.5m, reflecting a net initial yield of 3.92%.

Earnings and Dividends

• See-through Total Property Return¹ of £83.9m (2019: £81.4m):
  • Group’s share¹ of net rental income of £28.5m (2019: £25.2m).
  • Development profits of £9.9m (2019: losses of £4.4m), after provisions of £0.3m (2019: £13.7m).
  • Net gain on sale and revaluation of investment properties of £45.5m (2019: £60.6m).
• Total Property Return, as measured by MSCI, of 9.6% compared to the MSCI Central London Offices Total Return Index of 4.5%.
• IFRS Profit before tax of £43.0m (2019: £43.5m).
• IFRS basic earnings per share of 32.3p (2019: 35.8p).
• EPRA earnings per share¹ of 7.6p (2019: loss of 8.4p).
• Final dividend proposed of 6.00p per share (2019: 7.50p), a decrease of 20% as part of action taken to reduce outgoings and preserve the Group’s cash resources in the current uncertain environment.
• Total dividend for the year of 8.70p (2019: 10.10p), a decrease of 13.9%.

Balance Sheet

• Net asset value up 5.5% to £598.7m (31 March 2019: £567.4m).
• Total Accounting Return¹ on EPRA net assets of 9.3% (2019: 8.0%).
• EPRA net asset value per share¹ up 6.0% to 511p (31 March 2019: 482p).
• EPRA triple net asset value per share¹ up 3.2% to 480p (31 March 2019: 465p).

Property Valuations

• IFRS property portfolio value of £819.6m (31 March 2019: £778.8m).
• See-through property portfolio¹ of £949.3m (31 March 2019: £876.4m).
• See-through investment property valuation gain, on a like-for-like basis, of 5.9% (5.8% including purchases and gains on sales).

Financing

• See-through loan to value¹ marginally increased to 31.4% (31 March 2019: 30.6%).
• See-through net borrowings¹ of £298.5m (31 March 2019: £268.6m).
• Average maturity of the Group’s share¹ of secured debt of 4.1 years (31 March 2019: 3.4 years), increasing to 5.5 years on exercise of options to extend current facilities.
• See-through average cost of secured facilities¹ of 3.5% (31 March 2019: 4.1%).
• Group’s share¹ of cash and undrawn bank facilities of £279m (31 March 2019: £382m).

London Portfolio

• 4% valuation increase, on a like-for-like basis, of our see-through London investment portfolio, valued at £776.9m at 31 March 2020 (85% of investment portfolio) compared to £693.8m at 31 March 2019 (85% of investment portfolio).
• Contracted rents of £31.1m (31 March 2019: £27.5m) compared to an ERV of £50.6m (31 March 2019: £42.4m).
• WAULT of 7.8 years (31 March 2019: 8.0 years).

Manchester Portfolio

• 9% valuation increase, on a like-for-like basis, to £136.7m at 31 March 2020 (15% of investment portfolio) compared to £122.7m at 31 March 2019 (15% of investment portfolio).
• Contracted rents increased to £6.5m (31 March 2019: £5.7m) compared to an ERV of £9.3m (31 March 2019: £9.0m).
• WAULT of 3.9 years (31 March 2019: 3.9 years).

• 92% of March quarter rents collected, with a further 3% being paid in instalments, however, letting progress on Kaleidoscope, London EC1 and Trinity, Manchester has slowed.
• All the Group’s buildings have remained open, whilst complying with Government guidelines on providing safe office space.
• Helical became one of the first Founding Partners to donate to the LandAid Emergency Fund. Our donation of £20,000 is enabling frontline charities across the country to provide vital support to young homeless people during the Covid-19 pandemic.