Annual Results for the Year to 31 March 2025

Decisive action and disciplined execution driving returns

Matthew Bonning-Snook, Chief Executive, commented:

“Our results this year are a clear reflection of the decisive action taken by the Group over the past 12 months. This period has seen us recycle equity from the sale of £245m of investment assets, strengthening the balance sheet and unlocking the delivery of a substantial development pipeline. Our progress culminated in the forward sale of 100 New Bridge Street, EC4, after the year end, following competitive occupier interest in the building. The implied rent and yield achieved on this transaction demonstrate the clear flight to quality in the London office market that we have previously referenced and reinforce our view that now is the time to build in our favoured undersupplied submarkets. The anticipated returns from the £333m sale of 100 New Bridge Street, EC4, (our share: £166.5m), once it achieves practical completion, will allow the Group to invest in further opportunities and return meaningful amounts to Shareholders.

“Our development pipeline, which is fully equity funded, is progressing well. In addition to 100 New Bridge Street, EC4, we are under construction at the first of the schemes in our joint venture with Places for London (“PfL”), 10 King William Street, EC4, a 142,000 sq ft new office scheme, as well as at our equity-light comprehensive refurbishment of Brettenham House, WC2, comprising 128,000 sq ft of offices. All three of these schemes will be delivered in 2026, predominantly funded by the £280m (our share: £141m) of development finance we arranged during the year. 

“In line with our evolved strategy, which ensures we pursue the best value use for each opportunity, we have secured a revised planning permission for a 429 bed Purpose Built Student Accommodation (“PBSA”) scheme above Southwark station, a highly desirable Zone 1 location. Negotiations are underway in relation to forward funding this development, materially reducing the project’s equity requirement. In addition, we have much improved the planning consent for our 235,000 sq ft office development above the eastern entrance at Paddington station and we are in active discussions with PfL on several other exciting opportunities.

“Going forward, the joint venture structure of our development activities will generate significant development management fees. Alongside these, we will start to recognise promote fees as the developments progress and we will see the benefits of the decision taken to reduce administration overheads by 25%. At our two remaining standing investments, The Bower, EC1 and The Loom, E1, financed by the low-interest £210m Revolving Credit Facility, we have let one of the former WeWork floors, with the remaining unlet space fully refurbished and being actively marketed. 

Financial Highlights 

Operational Activity During the Year 

Active Equity Recycling – with £245m (Helical share) transacted during the year and the forward sale post year end of 100 New Bridge Street, EC4, for £166.5m (Helical share)

• In April 2024, we completed on the £43.5m sale of 25 Charterhouse Square, EC1.
• In May 2024, we entered into a joint venture arrangement for the redevelopment of 100 New Bridge Street, EC4, selling a 50% interest in the site for £55m, structured on a preferred equity basis to a vehicle managed by Orion Capital Managers. Simultaneously, the parties entered into a £155m development financing arrangement with NatWest and an institutional lender, as well as a building contract to deliver the scheme.
• In August 2024, we exchanged contracts to sell The Power House, W4, for £7.0m, with completion taking place in December 2024.
• In October 2024, we completed on the sale of our 50% interest in Charterhouse Place Limited, the owner of The JJ Mack Building, EC1, to our joint venture partner, AshbyCapital, for £71.4m. The transaction reflected a value of £139.2m for Helical’s 50% share of the property. 
• Following the year end, in April 2025, Helical and a vehicle managed by Orion Capital Managers exchanged contracts with an undisclosed party for the forward sale of Helical Bicycle 3 Limited, the corporate entity that owns 100 New Bridge Street, EC4, for the purchaser’s own occupation. The sale will complete once the building achieves practical completion, which is targeted for April 2026. The property forward sale net price of £333m (Helical share: £166.5m) reflects a capital value of £1,712 psf, which represents a capitalisation yield of 5.0%, before deducting corporate sale costs and a notional rent free allowance.

Development Pipeline

On Site – 464,500 sq ft of new and refurbished offices started in the year

• 100 New Bridge Street, EC4 – This 194,500 sq ft “carbon friendly” redevelopment of the existing building is progressing with a planned completion date in April 2026.
• Brettenham House, WC2 – Work continues on a comprehensive refurbishment of this 1930s heritage office building located at Waterloo Bridge. The scheme will provide 128,000 sq ft of office and retail space with completion expected in Q2 2026.
• 10 King William Street, EC4 – The joint venture between Helical and PfL acquired 10 King William Street, EC4, the over-station development at Bank Tube station, in October 2024. In February 2025, the joint venture entered into a development financing arrangement with HSBC to provide £125m to fund its construction. Simultaneously, a building contract with McLaren was signed with the aim to achieve practical completion of this 142,000 sq ft office scheme in December 2026.

Future Schemes

• Southwark, SE1 – In March 2025, Helical and PfL secured a resolution to grant planning approval for 429 PBSA units and 44 affordable homes at their scheme above Southwark Tube station, replacing the previous planned 220,000 sq ft office scheme. Building works at the new development are expected to start in 2026 and complete in 2028.
• Paddington, W2 – Situated close to the Elizabeth Line station at Paddington, this 19-storey building will provide 235,000 sq ft of office space. In the year, we have obtained consent to add external terrace space to every office floor, improved the end-of-trip and arrival facilities, completed RIBA Stage 3 Design and negotiated an enabling works contract which is expected to commence in June 2025. We are due to acquire the site, in joint venture with PfL, in January 2026, allowing main works to start immediately after site drawdown. 

Good Letting Progress

• During the year we completed 12 new lettings, comprising 74,041 sq ft with a contracted rent of £5.8m per annum (our share: £3.6m), 1.2% above March 2024 ERVs (Helical share: 0.8%). In addition, we have completed seven lease renewals of 24,407 sq ft during the year and one following the year end of 5,691 sq ft, a total of 30,098 sq ft.

Financial and Portfolio Performance

Earnings and Dividends

• IFRS profit of £27.9m (2024: loss of £189.8m).
• IFRS basic earnings per share of 22.8p (2024: loss of 154.6p).
• See-through Total Property Return of £52.1m (2024: -£162.7m):
  -    Group’s share of net rental income decreased 23% to £19.6m (2024: £25.5m) following the sales.
  -    Net gain on sale and revaluation of investment properties of £32.2m (2024: -£188.6m).
  -    Development profits of £0.3m (2024: £0.4m).
• Total Property Return, as measured by MSCI, of 10.0%, compared to the MSCI Central London Offices Total Return Index of 4.1%.
• EPRA earnings per share of 2.2p (2024: 3.5p), reflecting the sale of investment assets during the year.
• Final dividend proposed of 3.50p per share (2024: 1.78p).
• Total dividend of 5.00p (2024: 4.83p).
• Updated dividend policy to return surplus capital to Shareholders.

Balance Sheet

• Net asset value up 6.2% to £426.1m (31 March 2024: £401.1m).
• Total Accounting Return on IFRS net assets of 7.2% (2024: -31.7%).
• Total Accounting Return on EPRA net tangible assets of 6.3% (2024: -31.4%).
• EPRA net tangible asset value per share up 5.1% to 348p (31 March 2024: 331p).
• EPRA net disposal value per share up 6.1 % to 347p (31 March 2024: 327p).

Financing

• IFRS net borrowings of £97.2m (31 March 2024: £199.0m).
• See-through net borrowings of £112.8m (31 March 2024: £261.6m).
• See-through loan to value of 20.9% (31 March 2024: 39.5%). 
• Average maturity of the Group’s share of secured investment debt of 2.5 years (31 March 2024: 2.1 years).
• 100% of drawn debt protected by interest rate hedging to expiry of facilities.
• Average cost of the Group’s share of secured investment facilities of 3.8% (31 March 2024: 2.9%).
• Group’s share of cash and undrawn bank facilities of £244.5m (31 March 2024: £115.5m). 

 Portfolio Update

• Investment property valuations showed an increase on a like-for-like basis of 0.6%, while the development portfolio value increased by 29.1% to provide a net 5.8% increase overall.
• The true equivalent yield of the investment portfolio increased from 6.5% to 7.1% following the sales during the year.
• IFRS investment property portfolio value of £373.3m (31 March 2024: £472.5m), reflecting disposals during the year.
• See-through investment portfolio valued at £535.4m (31 March 2024: £660.6m).
• Contracted rents of the completed investment portfolio of £20.2m (31 March 2024: £33.0m), compared to an ERV of £29.3m (31 March 2024: £42.9m).
• See-through portfolio WAULT of 3.1 years (31 March 2024: 6.6 years), reflecting disposals during the year.
• Vacancy rate on completed assets increased to 21.3% at 31 March 2025 (31 March 2024: 17.6%).

 Sustainability Highlights

• Received a 5 star GRESB rating across both our development portfolio and standing investments with a score of 96/100 and 88/100 respectively, along with a CDP rating of B and an EPRA sBPR Gold certificate.
• Design stage BREEAM certificate received for 100 New Bridge Street, EC4, with an Outstanding rating and a score of 95.3% and Helical’s first NABERS Design for Performance Target Rating of five stars.
• Sustainability Linked £210m Revolving Credit Facility signed incorporating three ESG targets.

Dividend and Annual General Meeting Timetable

Announcement date    21 May 2025
Ex-dividend date    26 June 2025
Record date    27 June 2025
Last date for DRIP election     14 July 2025
Annual General Meeting    17 July 2025
Dividend payment date    4 August 2025

A Dividend Reinvestment Plan (“DRIP”) is provided by Equiniti Financial Services Limited. The DRIP enables the Company’s Shareholders to elect to have their cash dividend payments used to purchase the Company’s shares. More information can be found at www.shareview.co.uk/info/drip.