Helical Plc · LSE:HLCL
Helical — Shareholder Meeting (July 2019)
35 slides from Helical's shareholder meeting presentation, Jul 11, 2019
Slide 1: Annual General Meeting 11 July 2019
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Slide 2: Strategy
STRATEGY * Helical invests in London and Manchester for development profit, income and capital growth * We seek to outperform by: * Developing and investing in multi-let office buildings, increasing income through active asset management * Granting our customers flexible leases in our multi-let buil
Slide 3: Profit Before Tax and key results
PROFIT BEFORE TAX (2018: £30.8m) TOTAL DIVIDEND PER SHARE (2018: 9.50p) SALE/VALUATION GAIN (2018: £40.7m) NET RENTAL INCOME (2018: £36.1m) Tl July 2019 EPRA NAV PER SHARE (31 March 2018: 468p) EPRA TRIPLE NAV PER SHARE (31 March 2018: 448p) TOTAL ACCOUNTING RETURN (2018: 5.3%) SEE-THROUGH LOAN TO V
Slide 4: Loan to value 2016-2019
• • 100% 3% 14% 90% 18% 11% 24% 80% 13% 70% 17% 6% 60% 5% 86% 50% 55.0% LTV 51.4% LTV 86% 40% 39.9% LTV 30% 30.6% LTV 20% 54% 63% 10% 0% March 2016 March 2017 March 2018 March 2019 London Offices/Mixed Use Manchester Offices Logistics Non-Core LTV
Slide 5: Increasing Rental Income
INCREASING RENTAL INCOME £43.9m, so S20 30 £21.9m 20 Other ™ Manchester 10 mLondon * Acquisitions since 31 March 2019 31 March 2019 Passing 31 March 2019 Reversionary rent Lettings since 31 Available space Current developments Acquisitions since 31 rent Contracted rent March 2019 March 2019 TI July
Slide 6: First Quarter Update
FIRST QUARTER UPDATE mm 33 Charterhouse Street, EC1 Aiaisis des ay * ¢. 195,000 sq ft consented office development acquired in JV with AshbyCapital F One Bartholomew, EC1 + 43,245 sq ft let to Chicago Booth School of Business and 19,609 sq ft let to InfraRed + Building is now 64% let within six mont
Slide 7: London Portfolio - City & Tech Belt
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Slide 8: BO TescolExpress
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Slide 9: Charterhouse Street, EC1
33 CHARTERHOUSE STREET, EC1 Redevelop - In Joint Venture * Major development site acquired in a 50:50 joint venture with AshbyCapital * Prominent corner site overlooking Smithfield and 100 metres from Farringdon Station * The site has an existing planning consent for c. 195,000 sq ft of offices and
Slide 10: The Bower, EC1 - Phase 1
THE BOWER, EC1 Redevelop/Refurbish - Initially In Joint Venture, now On Balance Sheet THE WAREHOUSE AND THE STUDIO - PHASE 1 * 141,141 sq ft offices and 10,298 sq ft restaurants * Fully let prior to practical completion March 2015 * Rents £45.00 to £67.50 psf * Office tenants: CBS Stripe Farfetch Al
Slide 11: The Bower, EC1 - The Tower Phase 2
THE BOWER, EC1 Redevelop/Refurbish - Initially In Joint Venture, now On Balance Sheet | THE TOWER - PHASE 2 * 171,434 sq ft offices - 76% let: Finablr 11,329 sqft 17" floor Incubeta 11,306 sqft 16th floor Available 40,517 sq ft 12t-15th floors Infosys 19,576 sqft 10¢-11th floors Farfetch 29,671sq ft
Slide 12: Kaleidoscope, EC1
KALEIDOSCOPE, EC] (FORMERLY FARRINGDON EAST) Redevelop - On Balance Sheet . 88,680 sq ft offices with ground floor restaurant/café * 5 floors of c. 14,000 - 19,500 sq ft * Roof terrace - 5,000 sq ft with views of St Paul’s Cathedral * Built over Farringdon East Crossrail Station - opening 2020 «Prac
Slide 13: The Loom, E1
THE LOOM, E1 Refurbish/Reposition - On Balance Sheet * 108,640 sq ft office, listed former Victorian Wool Warehouse * Remained an average of 78% let throughout refurbishment, which involved new ‘dual’ entrance, cafe, bike store and showers * Currently 97% let following letting of one unit in the per
Slide 14: * 38,355 sq ft offices plus 5,138 sq ft ground floor
* 38,355 sq ft offices plus 5,138 sq ft ground floor retail * Fully let - offices £75.00 - £77.00 psf * Completed March 2017 and fully let within 9 months * 155 year leasehold interest with 10% ground rent * BREEAM Excellent and WiredScore Gold Tl July 2019 Key rental statistics (March 2019) nn Pass
Slide 15: One Bartholomew, EC1
* 214,434 sq ft offices - 64% let: The Trade Desk 74,210 sq ft 8t to 11 floors InfraRed 19,609 sq ft 7th floor Chicago Booth Schoolof 43,245 sq ft Ground to 24 floor Business * Achieving rents from £75.00 - £85.00 psf, depending on floor level * Forward sold to clients of AshbyCapital with Helical a
Slide 16: Barts Square, EC1
BARTS SQUARE, EC1 RESIDENTIAL Redevelop - In Joint Venture PHASE 1 * 144 units and 3,101 sq ft restaurant (2 units) * 136 units sold for £173.9m - £1,555 psf average * Restaurants - let to Stem+Glory and Halfcup PHASE 2 * 92 units and 11,815 sq ft retail/restaurants + 44 units exchanged, for £69.7m
Slide 17: * 24,013 sq ft office
* 24,013 sq ft office * 7,564 sq ft is let to Sia Partners and 4,642 sq ft let to Northridge Law * Office rents of £75.00 psf being achieved * 6,414 sq ft restaurant let to Wright & Bell trading as ‘Lino’ * BREEAM Excellent and WiredScore Gold * 10,286 sq ft of offices once completed * Completion du
Slide 18: One Creechurch Place, EC3
ONE CREECHURCH PLACE, EC3 Redevelop - ‘Equity Lean’ * 272,505 sq ft offices, plus 786 sq ft retail * HOOPP (Healthcare of Ontario Pension Plan) 90% Helical 10% * Now fully let + 155 year leasehold interest with 5% ground rent payable to the City of London + BREEAM Excellent and WiredScore Platinum T
Slide 19: Power Road Studios, W4
POWER ROAD STUDIOS, W4 Refurbish - On Balance Sheet PowER ROAD STUDIOS * 57,585 sq ft multi-let office campus Ww * Since 1 April we have completed six new lettings, representing 16,160 sq ft, at an average of 10.8% above 31 March 2019 ERVs * Consent secured for a 13,000 sq ft extension and 30,000 sq
Slide 20: Manchester Portfolio
MANCHESTER PORTFOLIO | 73 by & » be as 5, CENTRAL) RETAIL DISTRICT, SPINNINGFIELDS Quay St © DEANS GATE & Manchester Piccadilly = @ Wi CLAGE Q fo a : g Fairtield st ai “e, NOD ¥ oe ee 5 7 y. a 4 — Ve Oxford Road " i “3 Zs Orr \ 74 TI July 2019 Helical Annual General Meeting 2019
Slide 21: Churchgate & Lee, Manchester
CHURCHGATE & LEE, MANCHESTER Reposition - On Balance Sheet * Churchgate & Lee are interlinked buildings providing 244,627 sq ft of multi-let office space * We have undertaken a comprehensive refurbishment of common parts and office space where vacant * Following the letting of 35,118 sq ft to Capita
Slide 22: * 55,243 sq ft multi-let office building
* 55,243 sq ft multi-let office building * We have undertaken a comprehensive ’ refurbishment of offices and common parts, |) including a new entrance, reception, onsite cafe and bike store/shower facilities * Now fully let * New headline rent achieved at £24.00 psf Key rental statistics am (March 2
Slide 23: Trinity, Manchester
TRINITY, MANCHESTER Refurbish - On Balance Sheet * 54,651sq ft offices and 4,300 sq ft restaurant/cafe * The redevelopment was completed in January * Adding a new upper floor, infilled atrium, 58 bicycle spaces with showers and 30 car parking spaces * WiredScore Platinum Tl July 2019 Helical Annual
Slide 24: * Acquired off market in July 2018 for £16.5m
* Acquired off market in July 2018 for £16.5m * 59,067 sq ft listed former packing warehouse adjoining 35 Dale Street * Two new lettings achieved since 1 April at 12.7% premium to 31 March 2019 ERVs * New lettings and regears achieving £25.00 psf * Active asset management initiatives to reposition t
Slide 25: The Shepherds Building and Booth Street: Recycle Equity
THE SHEPHERDS BUILDING, LONDON W14 31 BOOTH STREET, MANCHESTER Recycle Equity Recycle Equity Acquired March 2000 £12.8m Acquired January 2016 £4.7m Refurbishment completed 2001 £24.6m Capital expenditure and fees £4.0m Total Cost £37.4m Total Cost £8.7m Sold October 2018 £125.2m Sold December 2018 £
Slide 26: Summary - Milestones for the Year
SUMMARY - MILESTONES FOR THE YEAR Let remaining four floors at The Tower fa Let remaining four floors at One Bartholomew Complete and let Kaleidoscope FOUR Let Trinity, Manchester FIVE Residential sales at Barts Square SIX Asset recycling SEVEN Further acquisitions Tl July 2019 Helical Annual Genera
Slide 27: Market Comment
MARKET COMMENT * Central London take up on rolling 12 months 5% above trend * Vacancy rate 4.3%. 13.3m sq ft of which nearly 10m sq ft is second hand « Rents increasing for Grade ‘Interesting’ * Quality of building as important as location * 117,000 new office jobs created in London in 2018 * Strong
Slide 28: Helical has a portfolio s
SS Helical has a portfolio s in London and Manchester. We provide for our customers. There is future in the current portfolio and we continue to evaluate 11 July 2019 28
Slide 29: LandAid - The Property Industry Charity
LandAi:d THE PROPERTY INDUSTRY CHARITY * APPEAL CHARITY a II] ABetter City for All 11 July 2019 29
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Slide 31: Helical Annual General Meeting 2019
Helical Annual General Meeting 2019
Slide 32: The Team
THE TEAM
Slide 33: Tl July 2019
Tl July 2019 33
Slide 34: 34
34 Tl July 2019
Slide 35: Helical, Hanover Square
HELICAL 5 Hanover Square London WIS 1HQ 0207 629 O113 www.helical.co.uk @helicalple reception@helical.co.uk