Slide 1: Half Year Results to 30 September 2017
HALF YEAR RESULTS TO 30 SEPTEMBER 2017 15 November 2017 Helical Half Year Results 2017 1
Slide 2: Agenda
AGENDA RESULTS HIGHLIGHTS ONE Gerald Kaye FINANCIALS TWO Tim Murphy PORTFOLIO HIGHLIGHTS THREE Matthew Bonning-Snook OUTLOOK FOUR Gerald Kaye FIVE Q&A 15 November 2017 Helical Half Year Results 2017 2
Slide 3: Results Highlights
RESULTS HIGHLIGHTS GERALD KAYE 15 November 2017 Helical Half Year Results 2017 3
Slide 4: Strategy
STRATEGY • Focus − London – office and mixed use investment, development and refurbishment − Manchester – office investment and refurbishment − Logistics – income and liquidity Continue to add to the high quality portfolio of multi-let office buildings in geographic clusters • Active value creation
Slide 5: Results Highlights
RESULTS HIGHLIGHTS PROFIT BEFORE TAX NET RENTAL INCOME £1.2m £17.9m (2016: £31.1m) (2016: £24.6m) DIVIDEND DECLARED VALUATION GAIN PER SHARE £4.5m 2.5p +0.7% +4.2% from 2016 EPRA NAV SEE-THROUGH LOAN TO PER SHARE VALUE 465p 51% -1.7% (pro-forma 43%) 25 Charterhouse Square 15 November 2017 Helical Ha
Slide 6: Operational Highlights – Sales
OPERATIONAL HIGHLIGHTS – SALES (up to 14th November) C SPACE £74m RETIREMENT VILLAGES £102m CARDIFF, GREAT YARMOUTH AND LOGISTICS £9m SOUTHEND ON SEA £73m TOTAL SALES £258m 15 November 2017 Helical Half Year Results 2017 6
Slide 7: Portfolio Allocation – Reduction of Non-Core
PORTFOLIO ALLOCATION – REDUCTION OF NON-CORE 4 4 3 2 3 1 1 2 TOTAL VALUE MARCH 2017 TOTAL VALUE AS AT 14 NOVEMBER 2017 £1,205.2m £1,036.8m 1 London Offices/Mixed Use 63.4% £764.2m 1 London Offices/Mixed Use 73.1% £757.3m 2 Manchester Offices 5.9% £71.5m 2 Manchester Offices 8.4% £87.6m 3 Logistics 1
Slide 8: Operational Highlights – Lettings
OPERATIONAL HIGHLIGHTS – LETTINGS LONDON OFFICES 182,086 sq ft MANCHESTER OFFICES 17,350 sq ft ONE CREECHURCH PLACE, EC3 25 CHARTERHOUSE SQUARE, EC1 131,879 sq ft let 18,250 sq ft let TOTAL LETTINGS 60,017 sq ft under offer 6,527 sq ft under offer 199,230 sq ft UNDER OFFER 93,775 sq ft POWER ROAD, C
Slide 9: Increasing Rental Income
INCREASING RENTAL INCOME ERV = £ 65.5m Millions The Bower £60 Phase 2 London Offices £50 Manchester Offices London Offices The Bower Phase 2 Logistics London Offices £40 London Offices Manchester Offices £30 London Offices Manchester Offices £20 Manchester Offices £10 Logistics Non Core £0 Passing R
Slide 10: Future Upside
FUTURE UPSIDE Potential March 2017 Progress to date 25 Charterhouse Square • Completed • G, 1, 4, 5 and 6 floors let London, EC1 • £3-6m valuation uplift • Second floor under offer • Only one floor remaining • £3.5m valuation uplift recognised One Creechurch Place • Completed • 131,829 sq ft let Lon
Slide 11: Market Comment
MARKET COMMENT • London regains its position as leading location for occupier demand (LaSalle’s European Regional Growth Index) • CBRE Q3 Central London report, “Central London Market Resilience Continues” Q3 take up at 3.4m sq ft, 10% above 10 year average Availability up 2% at 14.3m sq ft, below 1
Slide 12: Financials
FINANCIALS TIM MURPHY 15 November 2017 Helical Half Year Results 2017 12
Slide 13: Headline Numbers
HEADLINE NUMBERS SEE-THROUGH INCOME STATEMENT Sept 2015 Sept 2016 Sept 2017 Notes Net rental income £20.8m £24.6m £17.9m £186m of sales RV provision Development profits / (losses) £18.7m (£2.6m) (£8.2m) of £10.2m RV writedown Gain on sale and revaluation of investment properties £68.1m £25.8m £5.7m
Slide 14: Income Statement
INCOME STATEMENT 25 £3.3m 20 £17.9m 15 11.5 10 (£11.5m) 6.2 5 £2.4m £1.2m (£6.2m) 0 £5.7m -1.2 -6.9 -5 £2.5m (£6.9m) -10 (£12.9m) -15 Net Rents Development Provisioning Administration Net finance Other EPRA loss Net gain on Other IFRS profit profits against stock costs sale and before tax revaluatio
Slide 15: EPRA Net Assets per Share
EPRA NET ASSETS PER SHARE 540 520 500 0.4p 4.8p 7.0p 481.4p 480 2.7p 472.7p 6.2p 465.3p 16.1p 460 440 420 400 31 March 2017 EPS Investment Development Other Dividends 30 Sept 2017 RV Sale 30 Sept 2017 (excl. RV Sale) Gains Surpluses Pre RV Sale 15 November 2017 Helical Half Year Results 2017 15
Slide 16: Debt Summary
DEBT SUMMARY Mar Sept Loan Maturity 2017 2017 £m 600 Total facilities £894.9m £891.6m • Terms agreed to increase 7 year 550 Aviva facility by £45m • Terms agreed to extend Barclays Gross debt £736.6m £738.2m 500 RCF by 2 years • Sale of assets provides opportunities 450 for additional debt managemen
Slide 17: Loan to Value
LOAN TO VALUE £m Proforma £1,400 Value of Investment Portfolio 100% • Committed capex programme of £110m Value of trading and development stock 90% Loan to value including unsecured debt • Planned additional capex of £22m £1,200 80% • Contracted sales at Barts Square of c.£56m receivable by March 20
Slide 18: Net Cash Flow Movements
NET CASH FLOW MOVEMENTS Sept Mar Sept FORECAST CAPITAL EXPENDITURE 2016 2017 2017 £m £m £m 100 Residential Funded - Cash generated from / (used by) Barts (7.4) (8.1) (6.6) 90 operations Investment Funded - Acquisitions - – (13.8) 80 The Bower Investment Capex (26.0) (59.3) (35.4) 70 Joint ventures 0
Slide 19: Summary
SUMMARY Sales have generated significant cash surpluses Opportunity for debt management in next 6 months Looking to extend average debt maturity Looking to reduce effective cost of debt Targeting a surplus of rental income over all recurring costs 15 November 2017 Helical Half Year Results 2017 19
Slide 20: Portfolio Highlights
PORTFOLIO HIGHLIGHTS MATTHEW BONNING-SNOOK 15 November 2017 Helical Half Year Results 2017 20
Slide 21: One Creechurch Place, EC3
ONE CREECHURCH PLACE, EC3 272,505 sq ft offices (17 floors) Completed November 2016 Let 48% 115,910 sq ft Hyperion (11-17th floors) 15,969 sq ft Travelers (3rd floor) Under offer 22% 37,634 sq ft Enstar (part 6th, 7th and 8th floors) 22,383 sq ft Dell Corp. (1st and part 2nd floors) Available 30% 80
Slide 22: 25 Charterhouse Square, EC1
25 CHARTERHOUSE SQUARE, EC1 38,355 sq ft offices 5,138 sq ft retail/restaurant Completed March 2017 6th Floor £75 psf Anomaly 5th Floor £75 psf Anomaly 4th Floor £75 psf Peakon 3rd Floor 6,521 sq ft Available 2nd Floor 6,527 sq ft Under Offer 1st Floor £77 psf Senator Int. Ground Floor Unit 1 – £60
Slide 23: The Loom, E1
THE LOOM, E1 • 110,069 sq ft offices • Refurbishment complete September 2016 • Since 1st April 2017 five new lettings completed on 12,850 sq ft • Newly refurbished space being let at £52.50 - £55 psf • 24,691 sq ft available in 9 units. The Loom: Contracted Rent and Occupancy 2,431 sq ft under offer
Slide 24: Power Road Studios, W4
POWER ROAD STUDIOS, W4 58,404 sq ft multi let office on 2 acre site Average rents at acquisition £24 psf 16,000 sq ft of existing refurbished 8,341 sq ft let at £43 psf Planning consent recently granted for 43,000 sq ft of additional space 15 November 2017 Helical Half Year Results 2017 24
Slide 25: C Space, EC1
C SPACE, EC1 61,973 sq ft offices Purchased June 2013 - £17.5m Planning permission obtained February 2014 adding 12,000 sq ft Construction complete October 2015 Pre-let 75% - MullenLowe Let 25% - NeuLion – October 2016 Total cost £36m Sold £74m (completion December 2017) 15 November 2017 Helical Hal
Slide 26: The Tower, The Bower, EC1
THE TOWER, THE BOWER, EC1 PHASE 2 171,222 sq ft offices (34% pre-let) 17th Floor 11,338 sq ft Available in Q2. 2018 16th Floor 11,338 sq ft Available in Q2. 2018 15th Floor 11,338 sq ft Available in Q2. 2018 14th Floor 9,553 sq ft Available in Q2. 2018 13th Floor 10,044 sq ft Available in Q2. 2018 1
Slide 27: The Tower, EC1 – Proposed Fit Out
THE TOWER, EC1 – PROPOSED FIT OUT 15 November 2017 Helical Half Year Results 2017 27
Slide 28: One Bartholomew Close, EC1
ONE BARTHOLOMEW CLOSE, EC1 213,125 sq ft offices Completion August 2018 Funding Partner - Ashby Capital LLP Baupost/Helical to receive profit share based on fixed yield, variable on rent 15 November 2017 Helical Half Year Results 2017 28
Slide 29: 90 Bartholomew Close, EC1
90 BARTHOLOMEW CLOSE, EC1 24,013 sq ft offices and 6,449 sq ft restaurant unit Completion December 2017 Character office space over six floors behind retained facades Flagship restaurant unit on ground floor/basement 15 November 2017 Helical Half Year Results 2017 29
Slide 30: Barts Square, EC1
BARTS SQUARE, EC1 PHASE 1 • 144 residential units (plus 3,193 sq ft retail) • 128 sold (12 in the period) • Average sales price - £1,565 psf • 3 units reserved • 13 units available • 13 sales completed and 115 to complete as they are handed over in period to March 2018 PHASE 2 • Demolition commenced
Slide 31: Farringdon East, EC1
FARRINGDON EAST, EC1 89,000 sq ft consented office scheme over Farringdon East Crossrail Station Exclusivity agreement in place to take over former landowners right to buy back the land from Crossrail (TFL) Start on site April 2018 with completion due end of 2019 Crossrail station opens December 201
Slide 32: Manchester Offices
MANCHESTER OFFICES CHURCHGATE AND DALE HOUSE LEE HOUSE • 249,233 sq ft • 51,634 sq ft • Fully let • Ongoing refurbishment providing creative office • Continue with asset space in Northern Quarter management − 27% let initiatives to drive rental growth – − 56% under offer substantial regear − 17% ava
Slide 33: Logistics
LOGISTICS 23 assets. Value £150.8m Strong occupational demand Good rental growth prospects Hinckley sold at £9.3m (book value) 15 November 2017 Helical Half Year Results 2017 33
Slide 34: Summary
SUMMARY Focus of portfolio – three key areas; London, Manchester, Logistics Flexibility for customers and to maximise income Upside potential within portfolio and with future opportunities Opportunity in our area of activity and enduring quality of chosen assets Barts Square – The Askew Building 15
Slide 35: Q&A
Q&A 25 Charterhouse Square 15 November 2017 Helical Half Year Results 2017 35
Slide 36: Appendix
APPENDIX 15 November 2017 Helical Half Year Results 2017 36
Slide 37: Investment Portfolio – Key Statistics
INVESTMENT PORTFOLIO – KEY STATISTICS Valuation increase of 0.7% in the half year to September, including capex, sales and purchases for assets held as investments % OF VALUATION EPRA TOPPED UP REVERSIONARY PORTFOLIO CHANGE NET INITIAL YIELD YIELD (HB SHARE) - Completed, let and 51.1% 1.6% 4.3% 5.3%
Slide 38: Property Portfolio – Helical's Share
PROPERTY PORTFOLIO – HELICAL’S SHARE FAIR VALUE % VALUE London Offices £670.2m 64.7% London Residential £87.1m 8.4% Regional Offices £87.6m 8.4% Logistics £150.8m 14.5% TOTAL Core Portfolio £995.7m 96.0% Regional Offices £25.2m 2.4% Retail £10.0m 1.0% Retirement Villages - - Land £5.9m 0.6% TOTAL No
Slide 39: Investment Portfolio
INVESTMENT PORTFOLIO CAPITAL VALUE VACANCY RATE* PSF £ (FLOOR AREA) % WAULT YEARS London Offices 943 9.5 6.4 • Completed, let and available to let • Being redeveloped 653 - - TOTAL London 838 9.5 6.4 Manchester Offices 226 18.6 2.9 Logistics 56 5.6 4.8 TOTAL Core Portfolio 242 7.5 6.1 Regional Offic
Slide 40: Investment Portfolio Key Statistics
INVESTMENT PORTFOLIO KEY STATISTICS LEASE EXPIRIES AND TENANT BREAK OPTIONS 2018 2019 2020 2021 2022 Percentage of Rent Roll 11% 11% 7% 7% 18% Number of Leases 86 52 38 11 32 Average Rent per Lease £59,072 £97,340 £84,900 £270,787 £248,644 TOTAL PORTFOLIO CONTRACTED RENT £M Contracted rent reduced t
Slide 41: Top Tenants
TOP TENANTS RENT RANK TENANT TENANT INDUSTRY (HELICAL) RENT ROLL 1 Endemol UK Limited Media £3.9m 8.7% 2 MullenLowe Limited Marketing Communications £2.6m 5.8% 3 Gopivotal (UK) Limited Technology £2.0m 4.5% 4 Farfetch UK Limited Online Retail £1.9m 4.2% 5 Sainsbury's Supermarkets Limited Food Retail
Slide 42: Disclaimer
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 accuracy or completeness. The presentation should not be co
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