Helical Plc · LSE:HLCL
Helical — H1 2024 Earnings Presentation
60 slides from Helical's earnings presentation, November 2023
Slide 1: Half year results to 30 September 2023
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Slide 2: Agenda
HELICAL Agenda Results overview and future 3 potential Gerald Kaye Financials 14 Tim Murphy Portfolio highlights 24 Matthew Bonning-Snook Summary 33 Gerald Kaye / O&A 35 Wy" “ 4/ j (/ Sustainability 36 Wh Appendices 40 Additional Analysis The Loom
Slide 3: Results overview and future potential
Results overview and future potential GERALD KAYE
Slide 4: Results overview
HELICAL @helicalpic | Helical plc | helical.co.uk 4 Results overview The Central London office market continues to readjust to the higher interest rate environment with capital values falling Demand for “best-in-class” space driving rental growth Our valuations have declined but as the yield on our
Slide 5: The Bower
HELICAL @helicalplc | Helical plc | helical.co.uk 5 The Bower ¢ 16" floor let to existing tenant Verkada for expansion e 14 floor under offer to Incubeta, an existing tenant from 16" floor e¢ WeWork leases on 1'-6"" floors forfeited. Licence agreement in place and fee equivalent to rent The JJ Mack
Slide 6: Market comment — investment
HELICAL @helicalplc | Helical plc | helical.co.uk Market comment — investment e Interest rates increased during 6 months from 4.25% to 5.25% e 10-year Gilt yield falling from 4.5% on 1 November to 4.1% e Inflation falling so will rates be higher for longer or begin to reduce? Capital markets quiet.
Slide 7: Market comment — letting
HELICAL @helicalplc | Helical pic | helical.co.uk Market comment — letting Bifurcation continues between the “best-in-class” — the most attractive * offices, well located, with good amenity and to the highest sustainability standards — and the rest e Knight Frank report 63% of all transactions are f
Slide 8: Market comment — strong rental growth
HELICAL @helicalplc | Helical pic | helical.co.uk Market comment — strong rental growth Central London provisional rent forecasts, £PSF 200 180 160 140 100 Mayfair/St James King’s Cross ™2021 2022 ™ 2023 Source: CBRE Research 2024 ™2025 Southbank ™ 2026 Docklands 2027 2028
Slide 9: Market comment — the office
HELICAL @helicalplc | Helical plc | helical.co.uk 9 Market comment — the office City Savills analysis of 200 transactions over 10,000 sq ft in the City. Jan 2021 - May 2023: Central London Positive net addition of 3.6m sq ft >» 27% increase in space occupied. 1.5m sq ft positive net absorption > 41%
Slide 10: Driving value — lettings
HELICAL @helicalplc | Helical plc | helical.co.uk 10 $q t 000s 48 . Drivin g value — lettin Qs Beene FEB Lettings since period end 6 e 10,381 sq ft in 5 units let in the period, delivering contracted rent of £0.6m, in line with ERV Y ¢ Two lettings post-period end for 14,565 sq ft, delivering a furt
Slide 11: Driving value — capturing the reversion
HELICAL Driving value — capturing the reversion em 70 60 50 40 30 20 £33.7m Passing rent £38.0m Contracted rent Contracted rent uplift £26.8m lost 04 2023 £27.6m Lettings post period end £59.8m Available space Development pipeline £61.5m Reversionary rent £61.5m ERV @helicalple | Helical plc | helic
Slide 12: Helical's pipeline
HELICAL @helicalplc | Helical pic | helical.co.uk Helical’s pipeline Let THE Ju MACK 154,762 sq ft R BUILDING (otwhien 68,002 sq tis | TeMaining under offer) space 100 NEW Start on BRIDGE 194,000 sq ft Site O1 ese STREET 2024 Site 142,000 sq ft Drawdown rales 4 2024 Site 222,000 sq ft Drawdown 3 202
Slide 13: Future potential
HELICAL @helicalplc | Helical plc | helical.co.uk 13 Future potential e Value creation uplift when vacant space at The JJ Mack Building, The Bower and The Loom let. This will enable recycling of these assets to fund development programme alongside a combination of third-party capital and bank financ
Slide 14: Financials
Financials TIM MURPHY
Slide 15: Financial results
HELICAL @helicalplc | Helical pic | helical.co.uk Financial results EPRA EARNINGS PER SHARE (2022: 4.8P) PORTFOLIO VALUE (31 MARCH 2023: £840.4m) VALUATION CHANGE (INCL SALES & PURCH: -11.8%) INTERIM DIVIDEND PER SHARE (2022: 3.05P) NET DEBT (31 MARCH 2023: £231.4m) LOSS AFTER TAX (2022: PROFIT OF £
Slide 16: EPRA and IFRS (loss)/profit
HELICAL @helicalplc | Helical plc | helical.co.uk 16 EPRA and IFRS (loss)/profit ae 20.0 £12.4m, 10.0 (£96.7m) Net Rents Development Administration costs Net finance costs Tax/other EPRA profit Net loss onsale and Financial instruments Tax/other IFRS (loss)/profit (losses)/profits revaluation after
Slide 17: EPRA NTA per share
HELICAL @helicalplc | Helical pic | helical.co.uk 7 EPRA NTA per share NTA - 31 March 2023 EPS Investment (losses)/ Dividends Other NTA - 30 September 2023 gains Year to 31 March 572.3p 9.4p (78.19) (11.3p) 0.9p 498.29 2023
Slide 18: Portfolio value, net debt and LTV history
HELICAL @helicalplc | Helical plo | helical.co.uk 18 £1400 70 weno 1205 £1,200 60 £1,000 : 50 462 Portfolio value £800 746 40 626 ~ LTV % e600 eR Z x0 ae Net debt ° 283 ue £200 10 £0 0 2014 2015 2016 2017 2018 2019 2020 2021 2024 HY Shareholders’ Funds (2m) 254 341 404 481 517 534 567 598 608 687 60
Slide 19: Debt summary
HELICAL @helicalplc | Helical plc | helical.co.uk 19 Debt summary £m at 30 September 2023 e PIMCO (Allianz) facility has a one-year extension option 250 PICO wn e4oomROF e Inthe process of arranging development finance for 100 New Bridge Street 200 September March 2023 2023 0 Total facilities £479.9
Slide 20: Interest rate hedging
HELICAL @helicalplc | Helical pic | helical.co.uk 20 Interest rate hedging Amount Maturity igen rate Interest Rate Swaps £50.0m Jun 26 3.36% £50.0m Jul 26 2.28% £50.0m Jul 26 2.39% £50.0m Jul 26 2.45% £50.0m Jul 26 3.64% Total Swaps £250.0m Jul 26 2.82% In Joint Ventures - Fixed Rate £69.9m Jul24 4.
Slide 21: Loan covenant and LTV
HELICAL @helicalplc | Helical plc | helical.co.uk 21 Loan covenant and LTV ena leadroo Loan to Value <65% 31% 52% fall in value Loan to Rental Value <15.0x' 10.81x 28% fallin rent Projected Net Rental Interest Cover Ratio >150% 360% 58% fallin rent 1. Threshold has been extended until December 2024
Slide 22: Committed and planned capital expenditure
HELICAL @heli Committed and planned capital expenditure Forecast capital expenditure Plannec Committed Y — es fois Bank OSD, EC4 32.9 32.9 7 Southwark OSD, SE1 11.0 71.0 Joo IE Padainaton G sorter Paddington OSD, W2 30.2 30.2 G Paddington ‘olio — ined capital exp £ £m 100 New Bri ridge e Street, ea
Slide 23: In summary
HELICAL @helicalplc | Helical plc | helical.co.uk 23 . naiiesms ae *e Ee car # BY In summary re The balance sheet is in good shape with all current borrowing protected against interest rate rises to the expiry of facilities The impact of increased vacancy at The Bower and The Loom has been recognise
Slide 24: Portfolio Highlights
Portfolio Highlights MATTHEW BONNING-SNOOK
Slide 25: The JJ Mack Building, EC1
HELICAL @helicalplc | Helical plc | helical.co.uk 25 The JJ Mack Building, EC1 © 206,050 sq ft office building is one of London’s smartest and most sustainable buildings with 2018 BREEAM Outstanding, EPC A and targeting NABERS 5* ¢ The 6" and 7" floors are let to Partners Group who will take occupat
Slide 26: 100 New Bridge Street, EC4
HELICAL 100 New Bridge Street, EC4 In June 2023 planning consent was received for the sustainable redevelopment of the existing 167,026 sq ft office * building This application is currently being amended to maximise construction efficiencies The existing core and structure will be retained, along wi
Slide 27: Bank OSD, EC4
HELICAL @helicalpic | Helical plc | helical.co.uk 27 Bank OSD, EC4 © Site drawdown date October 2024 with encouraging pre-let interest Planning consent for a new 142,310 sq ft building over basement, ground and seven upper floors above new Bank Underground Station entrance Typical floorplates 22,500
Slide 28: Southwark OSD, SE1
HELICAL Southwark OSD, SE1 e Site drawdown date July 2025 e Planning permission granted in July 2022 for a 17-storey building of 222,264 sq ft total NIA: > 197,991 sq ft offices plus 21,722 sq ft affordable offices > 2,551 sq ft retail e Feasibility studies underway looking at potential alternative
Slide 29: Paddington OSD, W2
HELICAL @helicalplc | Helical plc | helical.co.uk 29 Paddington OSD, W2 © Site drawdown date January 2026* Planning permission originally granted in 2015 for an 19-storey building with 15 floors of office accommodation and 2 retail units totalling 235,215 sq ft NIA Typical office floors 15,600 sq ft
Slide 30: The Bower, EC1
HELICAL @helicalple | Helical pic | helical.co.uk 30 The Bower, EC1 ¢ A total of 333,632 sq ft comprising offices arranged over three buildings with a wide selection of restaurants (including Wagamama, Honest Burger, Bone Daddies and Serata Hall) and extensive public realm which is being expanded wi
Slide 31: Charterhouse Square, EC1 and The Loom, E1
HELICAL 25 Charterhouse Square, ECT 42,921 sq ft (6 floors) @helicalplc | Helical plc | helical.co.uk 31 © 85% let to tenants Entain, Anomaly, Hudson Sandler and Solid Nature generating passing rent of £2.9m (£78.63 psf average rent) e 4* floor of 6,530 sq ft available to let following refurbishment
Slide 32: Strategy focus
HELICAL Helical plc | helical.co.uk 32 Strategy focus © Deliver the planned development pipeline in the most equity efficient way possible © Utilise our development expertise and enviable track record to work with owners on an “equity light” approach repositioning assets and providing enhanced retur
Slide 33: Summary
Summary GERALD KAYE
Slide 34: Summary - why Helical
HELICAL @helicalplc | Helical pic | helical.co.uk Summary - why Helical e Painful readjustment in investment market e However, there is tenant demand for “best-in-class” space driving strong projected rental growth > Our high-quality existing portfolio maximises rental income » Filling the vacancy w
Slide 35: Q&A
O8A
Slide 36: Sustainability
Sustainability
Slide 37: Sustainability benchmarks
@helicalplc | Helical pic | helical.co.uk 37 Sustainability benchmarks 87/100 88/100 4* 5* 92/100 94/100 4* 5* Gold Gold AAA AAA B B
Slide 38: Portfolio energy performance and BREEAM certification
HELICAL @helicalpic | Helical plc | helical.co.uk 38 Portfolio energy performance & BREEAM certification by value e 99% EPC A or B completed portfolio by value © 88% BREEAM Outstanding or Excellent by value Note: 100 New Bridge Street excluded as refurbishment commences 2024. Targeting - BREEAM Outs
Slide 39: Sustainability
HELICAL @helicalplc | Helical pic | helical.co.uk 39 Sustainability yy J Launched in June 2020 Built for the Future sets out Helical’s long term vision and strategy Launched in April 2021 pity A guide to aid Helical’s professional teams as they a collaborate on new development schemes. Incorporating
Slide 40: Slide 40
Slide 41: Appendices
HELICAL Appendices Investing with Helical 42 Portfolio 43 Further financial analysis 54
Slide 42: Investing with Helical
HELICAL @helicalplc | Helical plc | helical.co.uk 42 Investing with Helical We create sustainable and inspiring workplaces which are technologically smart, rich in amenities and promote employee wellbeing. Applying this philosophy, we seek to maximise Shareholder returns through delivering income gr
Slide 43: Property portfolio
HELICAL @helicalplc | Helical plc | helical.co.uk 43 Property portfolio Areasq ft ment Properties (NIA excluding storage) Completed properties The Warehouse and Studio, The Bower EC1 Multi-let office building 151,439, 0.0% 0.0% The Tower, The Bower EC1 Multi-let office building 182,193 5.3%! 0.0% Th
Slide 44: Portfolio metrics (1)
HELICAL @helicalplc | Helical plc | helical.co.uk 44 Portfolio metrics (1) Valuation 30 September Change Fair Capital Vacancy 2023 (exc. Sales and Value Value Rate WAULT Purchases) Investment Portfolio £m A A Years h London Offices: - Completed properties 626.4 84.0 1,058 22.8 5.6 (10.6) - Developme
Slide 45: Portfolio metrics (2)
HELICAL @helicalplc | Helical plc | helical.co.uk 45 Portfolio metrics (2) Passing Contracted Change inERV EPRA“Topped True Equivalent — Reversionary Rent Rent LL Up” NIY Yield Yield Investment Portfolio em em % % % % London Offices: - Completed properties 26.6 30.9" 43.6 0.3 40 6.0 6.3 - Developmen
Slide 46: Portfolio metrics (3)
HELICAL @helicalplc | Helical plc | helical.co.uk 46 EPRA “Topped Up” Net ' ' Initial Yield London Total Portfolio metrics (3) ws aT 2017 470 5.69 2018 451 478 2019 4.17 4317 Yield, % 2020 3.89 3.97 2021 455 4.47 2022 4.23 4.22 7.00 2023 4.01 4.01 2023 September 3.50 3.50 6.50 True Equivalent Yield
Slide 47: Portfolio — Summary
HELICAL @helicalplc | Helical plc | helical.co.uk 47 Portfolio — Summary New lettings to 30 September 2023 e 10,381 sq ft to 5 tenants in line with 31 March 2023 ERVs e £0.6m (Helical’s share) contracted rent e 14,565 sq ft let post period end to 2 tenants, with contracted rent of £0.8m (Helical’s s
Slide 48: Impact of market movements on our values
HELICAL @helicalplc | Helical plc | helical.co.uk 48 Impact of market movements on our values Total see-through Total see-through change in portfolio change in portfolio value value % £m Equivalent Yield 5.85% +50 bps (10.80) (80.3) +25 bps (6.80) (42.0) -25 bps 6.16 45.8 -50 bps 12.93 96.1 ERV £79.
Slide 49: Investment portfolio key statistics
HELICAL @helicalplc | Helical plc | helical.co.uk 49 Investment portfolio key statistics See-through Total Portfolio Contracted Rent £m Rent lost at break/expiry (1.7) Rent reviews and uplifts on lease renewals 0.1 New lettings 0.6 Net decrease in the period (1.0)! 1. Following the forfeiture of the
Slide 50: Lease expiries or tenant break options
HELICAL @helicalple | Helical pic | helical.co.uk 50 Lease expiries or tenant break options % of rent roll 25.7 13.1 3.3 13.5 32.8 17 Number of leases 18 15 8 10 14 16 Average rent per lease (£) 439,953 268,980 126,469 414,517 722,555 224,462 Includes the impact of the forfeiture of the WeWork lease
Slide 51: Tenant sector breakdown
Consumer services Consumer goods 1% 2% Online retailing - Fashion 13% Law 18% Flexible offices 11% Human Resources 3% Financial Products 11% Software and Computer Services 12% IT Consultancy Business Consultancy 8% 1% Government/Charity 1% Advertising/Marketing Food & Beverage Media 8% 3% 8%
Slide 52: Top tenants
HELICAL @helicalplc | Helical plc | helical.co.uk Top 15 tenants Rank Tenant Tenant Industry Contracted Rent £m Rent Roll % 1 Baker McKenzie* Legal services 7.0 18.4 2 Farfetch Online retail 43 11.4 3 WeWork* Flexible offices 4.0 10.5 4 Brilliant Basics Technolog 24 6.2 5 VMware Technolog 2.2 57 6 P
Slide 53: Rental income and rental reversion
HELICAL @helicalplc | Helical plc | helical.co.uk 53 Rental income and rental reversion NET RENTAL INCOME 50 47.0 £m 45 43. 40 . 8 312 S35 30 285 25.0 25 . 20 79 149 6 12.4 10 5 0 2010 2011 2012 2013 2014 2016 2017 2018 2019 2020 2021 2022 2023 HY 2024 £m 400 90 80 50 40 340 364 30 25.1 20.4 20 ° |
Slide 54: Financial highlights
HELICAL @helicalplc | Helical plc | helical.co.uk 54 Financial highlights See-through income statement September 2023 September 2022 Total property return ~Net rental income £12.4m £18.2m - Development property (losses)/profits (£0.5m) £0.9m - Loss on revaluation of investment properties (£96.7m) (£
Slide 55: See-through income statement September 2023
HELICAL @helicalplc | Helical plc | helical.co.uk 55 See-through income statement 23 30 September 2022 Group Joint Ventures Total £m £m £m Net rental income 11.9 0.5 12.4 Development property (loss)/profit (0.5) = (0.5) 1.4 0.5 11.9 Administration expenditure (5.6) (0.2) (5.8)| Net finance costs (4.
Slide 56: See-through balance sheet
HELICAL @helicalplc | Helical plc | helical.co.uk 56 See-through balance sheet 30 September 2023 31 March 2023 Joint Ventures Total NAVper shi Total — NAV per shar em Pp Investment properties 602.7 142.9 745.6 839.5 Land and development stock (fair value) 0.3 - 0.3 0.9 Property portfolio 603.0 142.9
Slide 57: Net cash flow movements
HELICAL @helicalplc | Helical plc | helical.co.uk 57 Net cash flow movements September 2023 £m Cash generated from operations 7A Capex (6.8) (10.5) Joint ventures O7 16.8 Net disposal proceeds - 186.6 Reduction in net borrowing 2 (170.0) Other cash flow movements (6.4) (2.5) Dividends paid (9.5) (13
Slide 58: EPRA Performance measures
HELICAL @helicalplc | Helical plc | helical.co.uk 58 EPRA Performance measures At At 30 September 2023 31 March 2023 EPRA net tangible assets £502.3m £613.56m EPRA net reinstatement value per share 429p 516p EPRA net tangible assets per share 409p 493p EPRA net disposal value per share 409p 490p EPR
Slide 59: Disclaimer
HELICAL @helicalplc | Helical plc | helical.co.uk 59 Disclaimer Whilst we have taken all reasonable care to ensure that the information and material contained in this presentation is accurate at the time of its distribution, no representation or warranty, express or implied, is made as to its accura
Slide 60: reception@helical.co.uk Hanover Square
0207 629 0113 reception@helical.co.uk 5 Hanover Square London W1S 1HO. www.helical.co.uk @helicalple PELICAL