Slide 1: Preliminary Results for the year to 31 March 2012
Helical Bar plc Friday 25 May 2012 th Preliminary Results for the year to 31 March 2012
Slide 2: Summary Profit and Loss
31 March 2012 Financials Summary Profit and Loss Includes share of joint ventures Year To Year To 31 March 2012 31 March 2011 £m £m Net rental income 22.9 17.8 Development profits/(loss) 0.7 (16.6) Trading property loss - (0.4) Gain on sale and revaluation of investment properties 3.9 8.3 Impairment
Slide 3: Summary Balance Sheet
31 March 2012 Financials Summary Balance Sheet Includes share of joint ventures At At 31 March 2012 31 March 2011 £m £m Investment properties 394 338 Land, developments and trading properties 144 163 Cash and cash equivalents 40 35 Borrowings (321) (277) Derivative financial instruments (4) (7) Othe
Slide 4: Net debt and gearing
31 March 2012 Financials Pro-forma 31 31 25 May March March 2012 2012 2011 Net debt £276m £264m £241m Net gearing 109% 104% 94% Property portfolio at valuation £575m £573m £532m Ratio of net borrowing to 48% 46% 45% property portfolio 4
Slide 5: Investment and development split
31 March 2012 Financials 31 March 2012 30 September 2011 £m % £m % Investment 394.0 68.8 303.0 61.2 Development (fair 178.6 31.2 192.0 38.8 value) Total 572.6 100.0 495.0 100.0 5
Slide 6: Net rents, interest and dividend cover
31 March 2012 Financials 31 March 12 30 September 11 £m £m £m £m Net Rents 25.9 19.3 Less: Interest 13.0 12.0 - Swaps 6.5 5.8 - Floating 6.5 6.2 Administration 7.4 7.2 Surplus 5.5 0.1 Cost of Dividend 6.0 5.7 4.90p / 5.15p per share 6
Slide 7: Hedging
31 March 2012 Financials 25 25 May May 2012 2011 Hedging Fixed rate -Swaps at £120m £75m borrowings average 4.8% (5.8%) -Floor at 4.5% - £41m Interest rate caps at 4.7% £125m £91m (4.9%) Average rate of 4.10% 4.35% interest 7
Slide 8: Debt Profile - Maturity
31 March 2012 Financials Debt Profile - Maturity 25 31 31 May March March 2012 2012 2011 £m £m £m ˂ 1 Year 28.3 62.5 39.6 1-2 Years 72.7 72.5 75.8 2-3 Years 67.5 1.4 88.2 3-4 Years 50.4 82.6 14.2 4-5 Years 101.3 102.4 59.0 Total 320.2 321.4 276.8 8
Slide 9: Trading Update and Trading Strategy
Trading Update and Trading Strategy 9
Slide 10: Corby
Corby THE FACTS ‐ Acquired October 2011 for £69.6m ‐ 8.0% NIY (triple net) SINCE ACQUISITION ‐ Deene House sold for £1.5m, 4.98% NIY ‐ £160,000 taken out of the non- recoverable service charge ‐ £20,000 saved from rates liability ‐ Car park income increased by £60,000 ‐ Circa £400,000 works instruct
Slide 11: Cardiff – Morgan Quarter, The Hayes
Cardiff – Morgan Quarter, The Hayes ‐ Purchased 2005, 225,000 sq ft empty department store on 5 levels, with part let listed Victorian Arcades ‐ Created and sold 56 flats on upper floors ‐ Formerly vacant retail now let to Urban Outfitters, White Stuff, Joules, Fred Perry, Molton Brown, Dr. Martens,
Slide 12: Clydebank Shopping Centre
Clydebank Shopping Centre Quick wins – Lease re- • NOI at acquisition £5.85 m mall income / gears – rent Rent free Argos re-gear Re-letting service charges free periods expiring • Current NOI £6.02 m • Unexpired rent free £374k • Leases in solicitors hands £206k • Re-letting well following insolvenc
Slide 13: Shepherds Building, W14
Shepherds Building, W14 % occupancy by floor area 100% Camden 90% £37.50-£40 80% Angel/ 70% Pentonville/ 60% City Road 50% £37.50-£42.50 Shoreditch 40% £30-32.50 Clerkenwell 30% £45-£50 20% 10% 0% Soho/Noho/ Covent Mar Mar Mar Mar Mar Mar Garden 2007 2008 2009 2010 2011 2012 £57.50-£70 Shepherds Bui
Slide 14: Asset Management Overview
Asset Management Overview Rent No. of % of rent leases roll Rent lost at break/expiry -£2,040,771 37 7.6% Net rent lost through -£569,507 16 2.1% administration at year end Leases renewed £1,758,526 37 6.5% (£96,415 uplift) Fixed uplifts £445,671 40 1.7% New lettings £1,886,127 76 7.0% Total rent lo
Slide 15: Future Acquisitions
Future Acquisitions • London offices, multi-let, low rents (£20/30 psf) in ‘villages’ (Southwark, Clerkenwell, Hammersmith) • Tired buildings in need of capex, vacancies Example Broadway House, King Street, Hammersmith • Broadway House, King Street, Hammersmith • Acquired January 2012 from receivers
Slide 16: Retirement Villages
Retirement Villages Recycling Capital Liphook, Hants • 23 units sold during year, £2.1m profit • Construction will be completed Sept ’12 • 67 units to sell (24 under offer / exchanged) will return c. £6m cash after debt repaid, c. £4m of further profit Milton, Cambridge • Exchanged contract to sell
Slide 17: Development Strategy
Development Strategy Aim to be ‘Equity Lean’ - To use equity aggressively and to maximise returns by: • Participate in profit share situations where no equity is required. We will minimise our fee to maximise profit share e.g. Fulham Wharf and 200 Aldersgate • Reduce upfront equity required by enter
Slide 18: Barts Square, London EC1
Barts Square, London EC1 • Acquired jointly with Baupost in March 2011 • Baupost two thirds and Helical one third interest • Currently let to NHS at £3.3 million per annum • Vacant possession between 2014 and 2016 • Planning application submitted Q1 2012 for major mixed use scheme of circa 226,000 s
Slide 19: Barts Square, London EC1
Barts Square, London EC1 19
Slide 20: Barts Square, London EC1
Barts Square, London EC1 St Barts, London EC2 - Scheme Schedule of Areas gross external gross internal net internal m² ft² m² ft² m² ft² Office Office A 28,366 305,333 27,415 295,097 19,080 205,379 Office B 3,676 39,565 3,396 36,551 2,202 23,698 TOTAL 32,042 344,898 30,811 331,648 21,282 229,077 Res
Slide 21: 200 Aldersgate, London EC1
200 Aldersgate, London EC1 • Office refurbishment of circa 370,000 sq ft NIA • Building launched in January 2011 • 112,000 sq ft of office space let in 12 separate leases • 35,000 sq ft basement let to Virgin Active • Value related fee dependent upon letting and subsequent sale 21
Slide 22: 200 Aldersgate, London EC1
200 Aldersgate, London EC1 22
Slide 23: 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 • Demolition to commence Q3 2012 • Equity lean land deal • Commence development when pre let or forward funded 23
Slide 24: Mitre Square, London EC3
Mitre Square, London EC3 24
Slide 25: Fulham Wharf, London SW6
Fulham Wharf, London SW6 • Planning permission granted in March 2012 on behalf of landowners Sainsbury’s 100,000 sq ft new foodstore 463 residential units • Development Management Fee of £1.5m received 25
Slide 26: Fulham Wharf, London SW6
Fulham Wharf, London SW6 • Further profit share due upon sale of the site • Under offer to a major UK housebuilder • Phased payment – timing of Helical’s profit payment not yet fixed 26
Slide 27: King Street, Hammersmith, London W6
King Street, Hammersmith, London W6 • Development Agreement with Hammersmith & Fulham Borough Council in a JV with Grainger plc • Resolution to grant planning consent obtained in November 2011 o New Council offices o C. 300 residential units o Foodstore o Restaurant / café around new public square o
Slide 28: White City, London W12
White City, London W12 • 10 acre site purchased in IMPERIAL conjunction with Aviva COLLEGE • Part of the wider White City Opportunity Area BBC HELICAL MEDIA BAR/AVIVA which is promoting VILLAGE significant regeneration M&S • Westfield extension granted planning consent WESTFIELD BBC TV CENTRE LONDON
Slide 29: White City, London W12
White City, London W12 29
Slide 30: White City, London W12
White City, London W12 Ground Floor Uses Landscaping Plan 30
Slide 31: White City, London W12
White City, London W12 • 1.25m sq ft residential • 200,000 sq ft commercial • 70,000 sq ft retail, leisure community uses • Planning application – July 2012 • Possible start on site end 2013 31
Slide 32: Helical Poland - Europa Centralna, Gliwice
Helical Poland - Europa Centralna, Gliwice • Retail park and mall 66,000 sq m • Institutional client of Standard Life 50% partner • Total Development Cost €112m • Aareal debt €72m • Equity - €40 m provided 90% Standard Life, 10% Helical • Cash back to Helical of £16.5m (received Jan 2012) • Helical
Slide 33: Helical Poland - Europa Centralna, Gliwice
Helical Poland - Europa Centralna, Gliwice 33
Slide 34: Helical Poland - Europa Centralna, Gliwice
Helical Poland - Europa Centralna, Gliwice 34
Slide 35: Helical Retail
Helical Retail SHIRLEY, BIRMINGHAM OTHER DEALS TYSELEY, BIRMINGHAM • Exclusivity agreements signed on 6 other sites subject to planning consent and pre letting • Mainly foodstores: Asda, • 300,000 sq ft scheme Morrison, Sainsburys and Tesco • 150,000 sq ft scheme 71,000 sq ft Asda • 150,000 sq ft re
Slide 36: Summary
Summary • The Helical model (i.e. recycling and sweating limited equity between different sectors) still works best, particularly on EVA analysis • Prefer to own ‘cash cows’ providing liquidity and cash flow (Aycliffe & Peterlee) • Market values remain under threat -> counter balance by very effecti
Slide 37: Summary: Milestones to March 2013
Summary Milestones: Impact / target to March 2013 • 200 Aldersgate - Lettings • Europa Centralna - Lettings • Fulham Wharf - Sale / Fee settlement • Helical Retail - Conditional purchases • Barts Square - Planning consent • Hammersmith Town Hall - Planning consent • Mitre Square - Demolition • White
Slide 38: 38
38
Slide 39: Appendix
Appendix 39
Slide 40: How We Invest Our Capital
How We Invest Our Capital Out In London Provincial of Change Mixed Retirement March Town Poland Industrial TOTAL Offices Offices Town of Use Use Villages 2011 Retail Retail Investment 22% 1.5% 41.5% 3% - 4% - - 1% 73% 67% Trading and 0.5% 2% 2% 0.5% 7.0% 1% 1% 1% 12% 27% 33% Development TOTAL 22.5%
Slide 41: Investment Portfolio (Helical's Share)
Investment Portfolio (Helical’s Share) Value (m) Equity (m) London office £113.6 £44.4 30.4 % South East office £7.8 £2.7 2.1 % Industrial £20.3 £6.5 5.4 % In town retail £213.6 £84.7 57.0 % Out of town retail £14.1 £6.4 3.8 % Retirement village £5.0 £5.0 1.3 % Total £374.4 £149.7 100 % Note: Barts
Slide 42: Trading & Development Portfolio (Helical's Share)
Trading & Development Portfolio (Helical’s Share) Surplus Over Book Equity (from Fair Book Value Fair Value Value Value) % Equity (m) (m) (m) (m) London Office Dev £2.6 £8.6 £6.0 £8.6 9.3% Provincial Office Dev £10.3 £10.4 £0.1 -£1.6 -1.7% Industrial Dev £6.2 £6.2 £0 £3.1 3.4% In Town Retail Dev £10
Slide 43: Purchases and Sale
Purchases and Sale Purchases Sales Net Total Income Producing £159m £69m £90m Non Income Producing £0 £14m -£14m Total £159m £83m £76m • Since year end, we have completed or exchanged contracts on a further £20.8m of sales. All are non-income producing assets . A further £12.9m of sales are in solic
Slide 44: Investment Portfolio
Investment Portfolio Valuation increase of 0.7% in year to March, including capex, sales and purchase % of Valuation Yield on Equivalent Equivalent Portfolio Valuation Initial Reversionary Increase Letting Yield Yield (HB Increase Yield Yield since Voids (AiA) (True QiA) Share) 09/11 Industrial 5.4%
Slide 45: IPD
IPD 1 yrs 2 yrs 3yrs 5yrs 10yrs 20yrs Helical 5.6 4.1 5.5 1.6 10.5 14.6 IPD 6.4 9.0 11.7 -1.1 6.7 8.7 Helical’s 53 88 91 8 4 1 Percentile Rank Helical’s trading & development portfolio (25% of gross assets as measured by IPD) is shown in IPD at the lower of book cost or fair value and uplifts are on
Slide 46: Portfolio Geography by Helical Equity
Portfolio Geography by Helical Equity 47% of Helical’s equity is deployed in London and the South East 46
Slide 47: Investment Portfolio
Investment Portfolio Average Capital Vacancy Rate Unexpired Value psf (floor area) Lease Term (years) South East Offices £208 0.0% 17.7 London Offices £200 16.4% 4.8 Retail £134 5.6% 8.2 Industrial £55 14.0% 5.3 Total £142 8.8% 7.3 47
Slide 48: Investment Portfolio – Changes to Rental Values
Investment Portfolio – Changes to Rental Values Year to March 2012 Year to March 2011 Industrial -0.9% -5.4% London Offices 2.8% 1.6% South East Offices 0.8% 0.0% All Offices 2.5% 1.4% In Town Retail 1.0% 2.7% Out of Town Retail -2.0% 2.4% All Retail 0.8% 2.6% Total 1.2% -1.6% 48
Slide 49: Asset Management Overview
Asset Management Overview Excluding administrations 66% of rent “at risk” retained % rent 2011/2012 “at risk” Leases renewed £1,758,526 Break options not exercised £1,215,759 Tenants holding over £981,663 Rent retained £3,955,948 66% Rent lost at break/expiry £2,040,771 34% 49
Slide 50: Investment Portfolio – Lease Expiries
Investment Portfolio – Lease Expiries Lease expiries and tenant break options in: 2012 2013 2014 2015 2016 2017 onwards Percentage of 7.7% 8.1% 13.9% 5.3% 12.0% 53% rent roll Number of 79 65 100 48 62 leases Average rent £26,200 £33,800 £37,500 £29,900 £52,500 per lease 53% of Helical’s net rent rol
Slide 51: Top Tenants (Helical Share of Rent)
Top Tenants (Helical Share of Rent) Rank Tenant Rent % of Rent Roll 1 Endemol £1,526,923 5.65% 2 TK Maxx £1,160,000 4.29% 3 Barts and The London NHS Trust £1,138,980 4.21% 4 Quotient Bioresearch £664,792 2.46% 5 Asda £637,438 2.36% 6 Argos £453,750 1.68% 7 Metropolis Group £400,000 1.48% 8 Urban Out