Slide 1: Helical Bar plc Full Year Results to 31 March 2013
Helical Bar plc THURSDAY 23rd MAY 2013 FULL YEAR RESULTS FOR THE YEAR TO 31 MARCH 2013 Helical Bar plc
Slide 2: Exciting Times At Last
EXCITING TIMES AT LAST We refer to the results as “on the cusp” It’s back to Rock ‘n’ Roll Stock up 30% since Jan / 80% since May 2012 Planning Consents New schemes starting 70 new lettings 50 re-geared leases Vacancy down to 5.7% Net rents up / non-recoverables down Investment p
Slide 3: Investment
INVESTMENT INVESTMENT 3 Helical Bar plc
Slide 4: Investment Portfolio
INVESTMENT PORTFOLIO Valuation growth of 1.3% 5th percentile in IPD (8.6% vs 3.9%) Net increase in rent £376k Vacancy reduced from 8.8% to 5.7% during the year Retail portfolio vacancy only 3% 4 Helical Bar plc
Slide 5: Asset Management Overview
ASSET MANAGEMENT OVERVIEW Rent No. of leases % of rent roll Rent lost at break/expiry -£754,000 47 2.5% Net rent lost through administration -£732,000 26 2.5% New lettings and uplifts at lease £1,484,000 120 10.3% renewal Rent reviews and RPI uplifts £378,000 31 1.2% Net increase £376,000 During the
Slide 6: London Office Portfolio
LONDON OFFICE PORTFOLIO Property Net Rent ERV March‘13 Vacancy Rate Valuation Key Events in the year March ‘13 Increase (including capex) £1.05m £2.37m 25.5% 4.4% • 15,584 sq ft let during year at average of £24.40psf Battersea Studios (fixed • 25,464 sq ft vacant, good interest increases to • Avera
Slide 7: Retail Portfolio
RETAIL PORTFOLIO Property Net Rent Net Rent Change Vacancy Key Events in the year March 12 March 13 Cardiff £2.95m £3.26m +£0.3m 3.7% (all • Unit let to Jack Wills at £175k Zone A in • Rent reviews concluded showing 25% gain ‘07-‘12 (Moss Bros Arcades + Giovanni’s) not main • 6 new lettings includin
Slide 8: The Future
THE FUTURE Growth in London assets & Cardiff Cash flow from shopping centres, 12-15% pa cash on cash returns, income proving robust Growth from falling shopping centre yields, in time Future Acquisitions - Focus on multi-let London offices - ‘Villages’ (Clerkenwell, Southwark, Hammersmith) w
Slide 9: Retirement Village Sales
RETIREMENT VILLAGE SALES Sales • Milton, Cambridge sold to Bellway Homes for £6.9m • Part of Exeter sold to Linden Homes for £7.6m Liphook • 26 units sold during year, a further 5 since the year end • 115 units sold (£44.24m), 14 under offer, 22 to sell (151 total) • £13.34m profit to date • £3m pro
Slide 10: Retirement Village Developments
RETIREMENT VILLAGE DEVELOPMENTS No. Units Start Complete Forecast Profit Period Construction Construction Profit Faygate , nr 171 May ‘12 2016 £14m 2013-2017 Horsham Exeter 164 June ‘13 2017 £7m 2014-2018 Great Alne, nr 132 Sept ‘13 2017 £17m 2014-2017 Stratford-upon- Avon Liphook units to sell 36 J
Slide 11: Development
DEVELOPMENT DEVELOPMENT 11 Helical Bar plc
Slide 12: 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 13: Fulham Wharf, London SW6
FULHAM WHARF, LONDON SW6 Development Management Role on behalf of Sainsburys plc Profit of £8.75m realised – no equity 13 Helical Bar plc
Slide 14: 200 Aldersgate, London EC1
200 ALDERSGATE, LONDON EC1 311, 584 sq ft (90%) offices let, total 347, 728 sq ft 21,430 sq ft (6%) under offer Helical profit share triggered 14 Helical Bar plc
Slide 15: 200 Aldersgate, London EC1
200 ALDERSGATE, LONDON EC1 15 Helical Bar plc
Slide 16: Brickfields, White City, London W12
BRICKFIELDS,WHITE CITY, LONDON W12 Resolution to grant outline planning consent obtained March 2013 1150 new homes, 200,000 sq ft offices plus 60,000 sq ft retail / leisure / community uses (c 1.5m sq ft) J.V. with Aviva Investors 16 Helical Bar plc
Slide 17: Barts Square, London EC1
BARTS SQUARE, LONDON EC1 Acquired jointly with Baupost in March 2011 Baupost two thirds and Helical one third interest Planning consent granted – S106 signed 226,000 sq ft offices in two buildings 215 residential apartments (202,000 sq ft) 23,000 sq ft retail and restaurants Phased vac
Slide 18: Barts Square, London EC1
BARTS SQUARE, LONDON EC1 18 Helical Bar plc
Slide 19: Barts Square, London EC1
BARTS SQUARE, LONDON EC1 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 19,080 202,000 Office B 3,676 39,565 3,396 36,551 2,202 23,698 TOTAL 32,042 344,898 30,811 331,648 21,282 225,698 Residential BC1 3502 37,69
Slide 20: 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 pre-development issues cleared Demolition commenced 20 Helical Bar plc
Slide 21: 207 Old Street, London EC1
207 OLD STREET, LONDON EC1 • Acquired in December 2012 jointly with Crosstree Real Estate Partners for £60.75m • Crosstree Real Estate Partners two thirds and Helical Bar Plc one third. Additional “waterfall” to Helical above IRR parameters • Existing buildings comprising: 207 114,944 sq ft @ £1.3m
Slide 22: 207 Old Street, London EC1
207 OLD STREET, LONDON EC1 ADD IMAGES OF PLANS 22 Helical Bar plc
Slide 23: 207 Old Street, London EC1
207 OLD STREET, LONDON EC1 23 Helical Bar plc
Slide 24: 207 Old Street, London EC1
207 OLD STREET, LONDON EC1 24 Helical Bar plc
Slide 25: 207 Old Street, London EC1
207 OLD STREET, LONDON EC1 25 Helical Bar plc
Slide 26: 207 Old Street, London EC1
207 OLD STREET, LONDON EC1 26 Helical Bar plc
Slide 27: King Street, Hammersmith, London W6
KING STREET, HAMMERSMITH, LONDON W6 Regeneration project in partnership with London Borough of Hammersmith & Fulham JV with Grainger plc 40,000 sq ft office building for the Council c 200 residential units Cinema / Restaurant / Retail Planning application to be submitted July this year w
Slide 28: King Street, Hammersmith, London W6
KING STREET, HAMMERSMITH, LONDON W6 28 Helical Bar plc
Slide 29: 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 Planning Consent obtained 25 year lease to Scottish Power being forward funded with an institution Fee based on % of construction cost / desi
Slide 30: Helical Retail
HELICAL RETAIL Parkgate, Shirley Four Pools, Evesham Truro City Football Hucknall, Club Nottinghamshire • 50% interest • 7 acre site • 6 acre site • Development partner • 80,000 sq ft foodstore • Conditional contract • Conditional contract with Nottinghamshire pre sold to Asda • Planning application
Slide 31: Europa Centralna, Poland
EUROPA CENTRALNA, POLAND Opened March 2013 66,300 sq m total retail space 80% let Anchor tenants Tesco, Castorama, Media Saturn Most recent letting to Sports Direct Helical 50:50 with clients of Standard Life Exit in two years 31 Helical Bar plc
Slide 32: Europa Centralna, Poland
EUROPA CENTRALNA, POLAND 32 Helical Bar plc
Slide 33: Milestones: Targets to March 2013 - Update
MILESTONES: TARGETS TO MARCH 2013 - UPDATE Property Milestone Progress at March 2013 Fulham Wharf Sale of the site Sold. Profit taken 200 Aldersgate Lettings 90% let 6% under offer White City Planning consent Planning consent granted (site sale exchanged) Barts Square Planning consent Planning conse
Slide 34: Milestones: Targets to March 2014
MILESTONES: TARGETS TO MARCH 2014 Property Milestone 200 Aldersgate Secure profit share White City Secure profit share Barts Square Progress pre-development activity Mitre Square Pre-let or Fund 207 Old Street Obtain planning consent Start on site Glasgow Start construction Hammersmith Town Hall Obt
Slide 35: Financial
FINANCIAL FINANCIAL 35 Helical Bar plc
Slide 36: Headline Numbers
HEADLINE NUMBERS INCOME STATEMENT Mar 2012 Mar 2013 % change Total property return1, 2 £27.5m £35.9m +31% Net finance costs2 £10.0m £10.9m +9% Profit before tax £7.4m £5.0m -32% Adjusted EPRA earnings per share 3.8p 8.2p 116% Final dividend per share 3.40p 3.70p +9% BALANCE SHEET Mar 2012 Mar 2013 %
Slide 37: Income Statement
INCOME STATEMENT £m 40 £4.4m £35.9m 35 £7.0m 30 25 £24.5m £11.0m 20 15 £8.1m 10 £6.8m £2.6m £5.0m 5 £2.4m 0 Net rental Development Gain on sale Total property Net finance Administration Performance Change in fair Other net costs Profit before income profits and reval. of return costs related awards
Slide 38: Helical – A Long Term Profit Generator (Net Rental Income)
HELICAL – A LONG TERM PROFIT GENERATOR (NET RENTAL INCOME) 35 Net Rental Income £m In subsidiaries Passing In joint ventures Net Rents 30 £28.7m £24.5m 25 £25.6m £22.9m £23.0m 20 £20.4m £17.9m £17.9m £19.6m £16.6m £17.7m £17.9m £16.5m £14.9m £16.4m 15 £14.8m £14.2m £14.2m 10 5 0 2003 2004 2005 2006
Slide 39: Helical – A Strong and Stable Balance Sheet
HELICAL – A STRONG AND STABLE BALANCE SHEET FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 See-through net debt and LTV See-through assets at fair value £m 510.8 495.1 532.2 572.7 626.4 See-through property net debt £m (228.2) (228.7) (242.1) (280.0) (286.3) See-through loan-to-value 45% 46% 45% 49% 46% Se
Slide 40: EPRA Net Assets
EPRA NET ASSETS p 300 295 290 285 280 275 0.3p 5.2p 270 13.0p 265 260 3.8p 255 2.4p 250 245 240 235 230 264.3p 225 250.0p 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 31 March 2013 inves
Slide 41: Helical - Secured Loan Facilities
HELICAL - SECURED LOAN FACILITIES Loan expiry analysis at 31 March 2013 Loan expiry analysis at 22 May 2013 £m (excludes JVs) (excludes JVs) 120 120 £107.2m £107.0m £99.7m 100 100 80 80 £63.8m 60 60 £47.4m £40.0m 40 40 £23.2m 20 20 £16.9m £11.6m £8.8m 0 0 < 1 year 1 - 2 years 2 - 3 years 3 - 4 years
Slide 42: Helical - Secured Loan Facilities
HELICAL - SECURED LOAN FACILITIES Joint Venture loan expiry analysis at Joint Venture loan expiry analysis at £m £m 31 March 2013 22 May 2013 70 70 60 £58.6m1 60 50 50 40 40 £37.2m1 £35.2m1 30 30 20 20 £14.0m 10 10 £0.7m £0.7m 0 0 < 1 year 1 - 2 years 2 - 3 years 3 - 4 years 4 - 5 years < 1 year 1 -
Slide 43: Looking Forward
LOOKING FORWARD • Growing annualised net rents of £28.7m • Annualised interest cost of c. £13.9m at a current weighted average rate of interest of 4.2% • This allows the company to maintain a progressive dividend policy • We maintain excellent relationships with our banks having agreed c. £290m of f
Slide 44: Summary
SUMMARY It’s taken the time but it will prove worth the wait Keep focused on our ‘milestones’ Target a much improved P & L 2014 More good news to come pre-half year results The Helical model still works 44 Helical Bar plc
Slide 45: Appendix
APPENDIX APPENDIX 45 Helical Bar plc
Slide 46: Investment Portfolio (Helical's Share)
INVESTMENT PORTFOLIO (HELICAL’S SHARE) Value (m) Equity (m) % by Value London office £146.4 £67.9 36.0 % South East office £14.7 £5.1 3.6 % Industrial £12.3 £3.7 3.0 % In town retail £216.0 £78.6 53.0 % Out of town retail £11.6 £5.4 2.9 % Retirement village £6.0 £6.0 1.5 % Total £407.0 £166.7 100 %
Slide 47: Investment Portfolio Changes
INVESTMENT PORTFOLIO CHANGES Continued trend of acquisitions in London By Value Mar 2012 Mar 2013 Change Retail 60.8% 55.9% -4.9% Central London 30.3% 36.0% +5.7% Offices Other 8.9% 8.1% -0.8% 47 Helical Bar plc
Slide 48: Trading & Development Portfolio (Helical's Share)
TRADING & DEVELOPMENT PORTFOLIO (HELICAL’S SHARE) Surplus Over Book Book Value Fair Value (m) Value % Value (Fair) (m) (m) Office £15.6 £27.3 £11.7 12.44% Industrial £1.4 £1.4 £0 0.64% Retail £22.3 £23.6 £1.3 10.75% Retirement Village £55.3 £72.6 £17.3 33.07% Change of Use £4.6 £6.8 £2.2 3.11% Mixed
Slide 49: Portfolio Geography by Helical Equity
PORTFOLIO GEOGRAPHY BY HELICAL EQUITY 0% 6% 11% 1% 7% Scotland Wales South East South West 21% 16% London Midlands North Poland 3% Other 35% 51% of Helical’s equity is deployed in London and the South East 49 Helical Bar plc
Slide 50: IPD
IPD 1 yr 3yrs 5yrs 10yrs 20yrs Helical 8.6 5.6 3.7 10.8 14.4 IPD 3.9 7.2 1.5 4.4 8.9 Helical’s Percentile 5 61 12 1 1 Rank 50 Helical Bar plc
Slide 51: Investment Portfolio
INVESTMENT PORTFOLIO Valuation increase of 1.3% in year to March, including capex, sales and purchase Equivalent Equivalent % of Portfolio Valuation Reversionary Initial Yield Yield Yield (HB Share) Change Yield (AiA) (True QiA) Industrial 3.0% -9.5% 9.4% 9.8% 9.1% 9.6% London Offices 36.0% 4.8% 6.1
Slide 52: Investment Portfolio
INVESTMENT PORTFOLIO Average Capital Value Vacancy Rate Unexpired Lease psf (floor area) Term (years) South East Offices £209 0.0% 16.8 London Offices £230 12.3% 3.6 Retail £133 3.0% 7.1 Industrial £63 12.5% 2.9 Total £163 5.7% 6.4 52 Helical Bar plc
Slide 53: Investment Portfolio – Changes to Rental Values
INVESTMENT PORTFOLIO – CHANGES TO RENTAL VALUES Year to March 13 Year to March 2012 Industrial -0.4% -0.9% London Offices 5.9% 2.8% South East Offices 0.0% 0.8% All Offices 5.1% 2.5% In Town Retail -1.3% 1.0% Out of Town Retail 0.0% -2.0% All Retail -1.2% 0.8% Total 0.4% 1.2% 53 Helical Bar plc
Slide 54: Investment Portfolio – Lease Expiries
INVESTMENT PORTFOLIO – LEASE EXPIRIES Lease expiries and tenant break options in: 2013 2014 2015 2016 2017 Percentage of rent 11.4% 13.6% 8.9% 12.2% 10.9% roll Number of leases 104 107 66 66 68 Average rent per £32,600 £37,800 £40,000 £54,900 £47,600 lease 54 Helical Bar plc
Slide 55: Asset Management Overview
ASSET MANAGEMENT OVERVIEW Excluding administrations 73% of rent “at risk” retained Remained in Vacated % Retained occupation Leases renewed £1.49m £0.67m 69.0% Break options not £0.54m £0.09m 85.9% exercised Rent retained £2.03m £0.75m 72.9% 55 Helical Bar plc
Slide 56: Top Tenants (Helical Share of Rent)
TOP TENANTS (HELICAL SHARE OF RENT) Rank Tenant Tenant Industry Rent (Helical) % Rent Roll 1 Endemol UK Ltd Media £1,526,923 5.3% 2 Barts and The London NHS Trust Government £1,174,844 4.1% 3 TK Maxx Retail £1,160,000 4.1% 5 Quotient Bioresearch Ltd Biotech £907,456 3.2% 4 Asda Stores Ltd Retail £63
Slide 57: Helical – Strong Banking Relationships
HELICAL – STRONG BANKING RELATIONSHIPS Helical have concluded c. £290m of new banking facilities since February 2013 Group Facilities Date Bank Loan Term Type Hedging Strategy Amount Feb 2012 RBS £100m 5 years Revolving £50m fixed at 3.95% including margin. Interest rate cap on remaining at 4.00% pl
Slide 58: Performance Related Awards
PERFORMANCE RELATED AWARDS £m Directors - Share Awards (unvested) 2.4 - Deferred Payments 0.8 - Cash Payments 2.5 Other 0.3 Payroll taxes 0.8 Total charge in the year £6.8 58 Helical Bar plc
Slide 59: Helical Bar plc
59 Helical Bar plc