Helical Plc · LSE:HLCL
Helical — Helical Bar — H1 2012 Earnings Presentation
41 slides from Helical's earnings presentation, Nov 22, 2012
Slide 1: Half Year Results to 30th September 2012
Helical Bar plc THURSDAY 22ND NOVEMBER 2012 HALF YEAR RESULTS TO 30TH SEPTEMBER 2012 Helical Bar plc
Slide 2: Financial
FINANCIAL FINANCIAL 2 Helical Bar plc
Slide 3: Headline Numbers
HEADLINE NUMBERS INCOME STATEMENT Sep 2011 Sep 2012 % change Group’s share of net rental income1 £11.0m £12.2m +11% Development profits £1.8m £4.7m +161% Profit before tax £4.1m £5.2m +27% EPRA earnings before tax £4.7m £5.2m +11% EPRA earnings per share 4.1p 4.4p +7% Interim dividend per share 1.75
Slide 4: Income Statement
INCOME STATEMENT £m 20 18 £0.5m £17.4m £4.7m 16 14 £12.2m 12 -£5.7m 10 8 -£4.2m 6 -£0.8m £5.2m -£1.5m 4 2 0 Net rental Development Gain on sale and Total property Net finance Administration Change in fair Other net costs Profit before income profits reval. of inv. return costs value of tax/EPRA prop
Slide 5: EPRA Net Assets
EPRA NET ASSETS p 270 265 260 1.6p 0.9p 4.4p 0.4p 3.4p 255 250 245 240 252.1p 235 250.0p 230 225 220 215 210 205 200 EPRA NAV at EPRA EPS Gain on sale and Gain on Other EPRA NAV Dividends EPRA NAV at 31 March 2012 revaluation of revaluation of adjustments 30 September investment development 2012 por
Slide 6: Debt
DEBT DEBT ANALYSIS 31 Mar 2012 30 Sep 2012 Gross debt 321.4 320.9 Cash (39.0) (54.7) Total Net Debt 282.4 266.2 Loan to property value 49% 46% Total net gearing 111% 105% INTEREST RATE HEDGING 31 Mar 2012 30 Sep 2012 Weighted average cost of debt 4.2% 3.9% Percentage of debt hedged - Swaps at averag
Slide 7: Debt
DEBT • £70m of loans extended by an average of 4 years • Agreed heads of terms for c. £30m of new or extended loan facilities for average of 4 years • Average debt maturity increased from 2.7 years (May 2012) to 3.4 years (November 2012) £m £137.4m 140 Debt Maturity March 2012 130 Debt Maturity Nove
Slide 8: Looking Forward
LOOKING FORWARD • Growing annualised net rent roll of £25.4m • Annualised interest cost of c. £12.1m at a current weighted average rate of interest of 3.8% • Allows the company to maintain a progressive dividend policy • Excellent relationships with our banks • Cash and utilised bank facilities of c
Slide 9: Investment
INVESTMENT INVESTMENT 9 Helical Bar plc
Slide 10: Investment Portfolio
INVESTMENT PORTFOLIO Valuation increase of 0.1% Future growth from; • Repositioning existing assets (Shepherds, Cardiff) • Letting voids (Battersea, Hammersmith) • Future acquisitions, mainly multi-let offices in London ‘villages’ 10 Helical Bar plc
Slide 11: Asset Management Overview
ASSET MANAGEMENT OVERVIEW Rent No. of leases % of rent roll Rent lost at break/expiry -£577,078 36 2.1% Net rent lost through administration -£467,906 15 1.7% Leases renewed £778,254 27 2.9% (£74,733 uplift) Fixed uplifts £230,487 31 0.8% Rent reviews £103,503 32 0.4% New lettings £884,885 32 3.2% N
Slide 12: London Offices
LONDON OFFICES Improving demand… Shepherds Building, W14 • Only 1 unit (465 sq ft) vacant out of 151,000 sq ft • Average rent passing £23.80psf • Major refurbishment being planned for Summer 2013 • Valued at 7% initial yield Battersea Studios, SW8 • Since year end, 14,930 sq ft let (7 units) • 27,50
Slide 13: Retail Portfolio Active Management
RETAIL PORTFOLIO ACTIVE MANAGEMENT Letting: Refurbishment:- Market tough but progress continuing Works complete at Basildon, Corby and Newmarket Cardiff – Jack Wills £500k of capex from sinking fund planned in Clydebank and £400k in Cardiff Clydebank – Poundworld, Paddy Power, Perfect Home
Slide 14: Asset Management Overview
ASSET MANAGEMENT OVERVIEW Centre Free Cash Post Cash on Cash Interest Basildon £380,000 11.1% Clydebank £2,230,000 11.2% Corby £3,170,000 14.5% Newmarket £780,000 15.0% Sutton in Ashfield £770,000 17.2% Total £7,330,000 13.3% • Across the portfolio, rent collection was 99.34% within 2 weeks of quart
Slide 15: Retirement Villages
RETIREMENT VILLAGES • Developments are communities for ‘active elderly’, mainly cottages not apartments • High quality housing, selling 125 year leasehold interest • Buyers almost 100% cash, no mortgages • Services provided limited to running clubhouse, landscaping etc • Not care homes providing med
Slide 16: Retirement Villages
RETIREMENT VILLAGES Recycling Capital Liphook, Hants • 14 units sold since year end, £0.95m profit, further 6 sold since end of September • Construction completed in November • 48 units to sell (15 under offer) will return c. £6m cash after debt repaid, c. £3m of further profit Milton, Cambridge • S
Slide 17: Development
DEVELOPMENT DEVELOPMENT 17 Helical Bar plc
Slide 18: 200 Aldersgate, London EC1
200 ALDERSGATE, LONDON, EC1 • 112,000 sq ft of office space let • Let to Virgin Active • 74,000 sq ft currently under offer 18 Helical Bar plc
Slide 19: Barts Square, London EC1
BARTS SQUARE, LONDON EC1 19 Helical Bar plc
Slide 20: Barts Square, London EC1
BARTS SQUARE, LONDON EC1 Planning application submitted Q1 2012 Resolution to grant planning permission subject to S106 made by City on 20th November 226,000 sq ft offices in two buildings 215 residential apartments (202,000 sq ft) 23,000 sq ft retail and restaurants Phased vacant posses
Slide 21: Mitre Square, London EC3
MITRE SQUARE, LONDON EC3 Planning consent granted for prime office development of 273,000 sq ft NIA with 3,000 sq ft retail/restaurant All predevelopment issues cleared Commence development when pre let or forward funded 21 Helical Bar plc
Slide 22: Fulham Wharf, London SW6
FULHAM WHARF, LONDON SW6 o Scheme comprises 100,000 sq ft foodstore and 463 residential units. Helical Bar acted on behalf of Sainsbury’s o Following the grant of planning consent, the site has been sold to a JV between Barratts West London and London & Quadrant o Development management fee of £1.5m
Slide 23: King Street, Hammersmith, London W6
KING STREET, HAMMERSMITH, LONDON W6 o Regeneration project with London Borough of Hammersmith & Fulham in a JV with Grainger plc o Previous scheme (shown above) obtained a resolution to grant planning consent at a local level but failed to get Mayoral consent 23 Helical Bar plc
Slide 24: King Street, Hammersmith, London W6
KING STREET, HAMMERSMITH, LONDON W6 New Leader of Hammersmith & Fulham Borough Council keen to continue with a much more deliverable brief New architect - a new approach Key contention issues avoided with new brief o Much reduced height (max 8 stories rather than 15) o No bridge affecting Furn
Slide 25: Brickfields, White City, London W12
BRICKFIELDS,WHITE CITY, LONDON W12 Outline planning application submitted in July 2012 Planning committee date anticipated late 2012 / early 2013 1150 new homes, 200,000 sq ft offices plus 60,000 sq ft retail / leisure / community uses Site on site – late 2013 / early 2014 25 Helical Bar plc
Slide 26: Scottish Power HQ, St. Vincent Street, Glasgow
SCOTTISH POWER HQ, ST. VINCENT STREET, GLASGOW Development Management Role on behalf of Scottish Power / Iberdrola New 220,000 sq ft (net) office HQ 25 year lease to Scottish Power being forward funded with an institution Fee based on % of construction cost / design fees Underwriting the s
Slide 27: Helical Poland – Europa Centralna, Gliwice
HELICAL POLAND – EUROPA CENTRALNA, GLIWICE • Opening 1st March 2013 • 720,000 sq ft of retail. Anchor tenants Tesco and Castorama • 73% let • 4% being signed • 4% under offer 27 Helical Bar plc
Slide 28: Milestones: Targets to March 2013
MILESTONES: TARGETS TO MARCH 2013 Property Milestone Progress at November 200 Aldersgate Lettings 74,000 sq ft under offer Europa Centralna Lettings 73 % pre-let, 4% being signed and 4% under offer Fulham Wharf Sale / fee settlement Complete Helical Retail Conditional purchases Ongoing Barts Square
Slide 29: Appendix
APPENDIX APPENDIX 29 Helical Bar plc
Slide 30: How We Invest Our Capital
HOW WE INVEST OUR CAPITAL Out In London South East of Change Mixed Retirement March Town Poland Industrial TOTAL Offices Offices Town of Use Use Villages 2012 Retail Retail Investment 22% 1.5% 41% 3% - 3% - - 1% 71.5% 73% Trading and 0.5% 2% 2.5% 0.5% 10.5% 0.5% 1% 1% 10% 28.5% 27% Development TOTAL
Slide 31: Investment Portfolio (Helical's Share)
INVESTMENT PORTFOLIO (HELICAL’S SHARE) Value (m) Equity (m) London office £115.3 £46.8 30.5 % South East office £7.8 £2.7 1.8 % Industrial £15.6 £4.6 3.0 % In town retail £214.9 £86.5 56.5 % Out of town retail £14.1 £6.7 4.3 % Retirement village £6.0 £6.0 3.9 % Total £373.7 £153.3 100 % Note: Barts
Slide 32: Trading & Development Portfolio (Helical's Share)
TRADING & DEVELOPMENT PORTFOLIO (HELICAL’S SHARE) Book Value Surplus Over Book Value Equity (from Fair Value) Fair Value (m) % Equity (m) (m) (m) London Office Dev £2.9 £9.4 £6.5 £9.4 9.3% Provincial Office Dev £9.8 £9.8 £0 -£1.8 -1.8% Industrial Dev £2.7 £2.7 £0 £2.0 2.0% In Town Retail Dev £14.8 £
Slide 33: Purchases and Sale
PURCHASES AND SALE Purchases Sales Net Total Income Producing £0m £3.6m -£3.6m Non Income Producing £0m £22.5m -£22.5m Total £0m £26.1m -£26.1m • The significant sales include Milton (retirement village) for £6.8 m and part of the Exeter holding (retirement village) for £7.6 m and in excess of £5.0
Slide 34: Investment Portfolio
INVESTMENT PORTFOLIO Valuation increase of 0.2% in half year to September, including capex, sales and purchase % of Yield on Equivalent Equivalent Valuation Initial Reversionary Portfolio Letting Yield Yield Change Yield Yield (HB Share) Voids (AiA) (True QiA) Industrial 4.1% -6.1% 8.4% 10.3% 10.0%
Slide 35: Portfolio Geography by Helical Equity
PORTFOLIO GEOGRAPHY BY HELICAL EQUITY 4% 7% 9% 1% 12% Scotland Wales South East South West 20% London 16% Midlands North Poland 3% Other 28% 44% of Helical’s equity is deployed in London and the South East 35 Helical Bar plc
Slide 36: Investment Portfolio
INVESTMENT PORTFOLIO Average Capital Value Vacancy Rate Unexpired Lease psf (floor area) Term (years) South East Offices £208 0.0% 17.3 London Offices £202 15.6% 4.5 Retail £134 7.1% 7.7 Industrial £51 20.1% 3.3 Total £144 11.2% 7.0 36 Helical Bar plc
Slide 37: Investment Portfolio – Changes to Rental Values
INVESTMENT PORTFOLIO – CHANGES TO RENTAL VALUES Half year to September 2012 Year to March 2012 Industrial 0.0% -0.9% London Offices 2.6% 2.8% South East Offices 0.0% 0.8% All Offices 2.2% 2.5% In Town Retail -0.1% 1.0% Out of Town Retail 0.0% -2.0% All Retail -0.1% 0.8% Total 0.5% 1.2% 37 Helical Ba
Slide 38: Asset Management Overview
ASSET MANAGEMENT OVERVIEW Renew / Don’t Break Do not Renew / Do % Income Retained Break Action at Lease End £778,454 £362,096 68.3% Action at Break £781,985 £214,983 78.4% Total £1,560,438 £577,078 73.0% 68.3% of rent was retained at lease end compared with an average of 41%¹. 78.4% of tenants by re
Slide 39: Investment Portfolio – Lease Expiries / Breaks
INVESTMENT PORTFOLIO – LEASE EXPIRIES / BREAKS Lease expiries and tenant break options within: 1 year 2 years 3 years 4 years 5 years > 5 years Percentage of 9.4% 11.3% 11.8% 6.9% 14.1% 46.5% rent roll Number of leases 96 84 96 57 65 Average rent per £26,800 £36,800 £33,500 £33,000 £59,400 lease 39
Slide 40: Top Tenants (Helical Share of Rent)
TOP TENANTS (HELICAL SHARE OF RENT) Rank Tenant Rent (£m) % of Rent Roll 1 Endemol £1.53 5.6% 2 Barts and The London NHS Trust £1.18 4.3% 3 TK Maxx £1.16 4.2% 4 Quotient Bioscience £0.67 2.4% 5 Asda £0.5 1.9% 6 Argos £0.45 1.7% 7 Fox International £0.45 1.6% 8 Metropolis Group £0.4 1.5% 9 Urban Outf
Slide 41: Financials: Debt Profile - Maturity
FINANCIALS Debt Profile - Maturity 31 30 Proforma 21 March September November 2012 2012 2012* £m £m £m ˂ 1 Year 62.5 84.1 36.5 1-2 Years 72.5 12.3 12.7 2-3 Years 1.4 104.1 111.8 3-4 Years 82.6 19.7 19.6 4-5 Years 102.4 100.7 137.4 Total 321.4 320.9 318.0 * - After completion of refinancing for which