Slide 1: Annual Results to 31 March 2019
HELICAL ANNUAL RESULTS TO 31 MARCH 2019 23 MAY 2019
Slide 2: Results Highlights
RESULTS HIGHLIGHTS Gerald Kaye PORTFOLIO METRICS FINANCIALS Tim Murphy PORTFOLIO HIGHLIGHTS Matthew Bonning-Snook SUMMARY Gerald Kaye Q&A APPENDICES ADDITIONAL ANALYSIS 23 May 2019
Slide 3: One Bartholomew, EC1
One Bartholomew, EC1 23 May 2019
Slide 4: Helical's portfolio is focused entirely in London and Manchester
Helical’s portfolio is focused entirely in London and Manchester. We create buildings for discerning occupiers who demand more _ inspiring space with distinctive architectural detail, carefully curated public realm, market leading amenities, high quality management and a flexible approach to leasing
Slide 5: 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 6: Profit Before Tax
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) 23 May 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 VA
Slide 7: Operational Highlights - Office Lettings
OPERATIONAL HIGHLIGHTS - OFFICE LETTINGS Sq ft 000 London Office - Investment =Let pre-31 March 2018 857 The Loo”) i AAAAA: 97% let "Acquired in year “ "Net letting in period from 1 April 2018 to 23 May 2019 306 25 Charterhouse Square TT 100% let < Vacancy as at 23 May 2019 236 The Warehouse EE 100%
Slide 8: Portfolio Metrics
PORTFOLIO einioss = Helical Annual Results 2019
Slide 9: Portfolio Metrics (1)
PORTFOLIO METRICS (1) Valuation Valuation Change Change Including Excluding Fair Capital Vacancy March 2018 March 2019 _ Sales and Sales and Value Value psf Rate WAULT WAULT Purchases Purchases Investment Portfolio £m % £ % Years Years % % London Offices: - Completed, let and available to let 615.2
Slide 10: Portfolio Metrics (2)
PORTFOLIO METRICS (2) EPRA True Passing Contracted Change in Topped Up Equivalent Reversionary Rent Rent ERV- ERVLfL NIY Yield Yield Investment Portfolio £m £m £m % % % % London Offices: - Completed, let and available to let 17.3 275 34.8 09 42 51 5.2 - Being redeveloped - - 7.6 14.0 n/a 49 5.7 Tota
Slide 11: Helical Performance Compared with MSCI Indices
HELICAL PERFORMANCE COMPARED WITH MSCI INDICES —Helical MSCI Annual March All Properties Universe - Upper quartile 6 —SCI Central London Offices Total Return Index - Upper quartile 4 12 10 % 8 6 4 2 oO 20 years 10 years 5 years 3 years 1 year Investment Portfolio 20 Years 10 years 5 years 3 years ly
Slide 12: Passing rent to ERV bridge
70 Millions £7.5m 60 £7.6m £51.5m 50 £8.0m 40 £2.4m £0.3m £11.3m £33.2m 30 £27.0m (£8.5m) £4.3m £21.9m £0.8m (£1.7m) 20 10 - 31 March 2018 Disposals Purchases Lease expiries Rent reviews, 31 March 2019 Contracted Total Reversionary Lettings since Available space Current ERV Acquisitions Passing rent
Slide 13: Charterhouse Street, EC1
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. 192,000 sq ft of offices and gro
Slide 14: Map of Farringdon and Barts area
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Slide 15: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 16: Investment Case - Future Upside
INVESTMENT CASE - FUTURE UPSIDE STATUS HISTORIC PERFORMANCE —= FUTURE POTENTIAL Churchgate & Lee * Completed * £21.8m valuation gain * £4.8m ERV vs £3.9m contracted rents Manchester * Potential surplus of £6m 35 Dale Street * Completed * £3.0m valuation gain + Potential surplus of £2m Manchester Tri
Slide 17: 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 18: Financials
; : FINANCIALS TIM MURPHY
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS SEE-THROUGH INCOME STATEMENT March 2018 March 2019 Total property return - Net rental income £36.1m £25.2m - Development property losses (£8.0m) (£4.4m) - Gain on revaluation of investment properties £27.2m £45.6m - Gain on sale of investment properties £13.5m £15.0m £68.8m £81.
Slide 20: EPRA Net Assets per Share
EPRA NET ASSETS PER SHARE 520 50.1p 500 480 460 440 420 Investment Gains Revaluation surplus Revaluation surplus in Joint Ventures Profit on sale Financial Instruments. Movement in fair value of derivatives Associated costs and gains Fair value movement in Convertible Bond Tax Tax on disposal of inv
Slide 21: EPRA Loss and IFRS Profit
EPRA LOSS AND IFRS PROFIT (SEE-THROUGH BASIS) 70 60 50 40 £9.3m 30 20 (£13.7m) (£17.2m) (£18.4m) Net Rents Development — Provisioning Administration _Net finance profits against stock costs costs Net rental income has fallen by £10.9m reflecting the impact of £397m sales of investment property since
Slide 22: Debt Summary
DEBT SUMMARY * The £100m Convertible Bond is repayable on 17 June 2019 * The £150m RCF due for repayment in July 2023 has two one March March year extension options, taking final repayment to July 2025 2018 2019 At 31 March 2019: Total facilities £642.0m £655.1m Utilised facilities £470.7m £479.2m U
Slide 23: Loan to Value
LOAN TO VALUE £1,400 100.0% 90.0% £1,200 80.0% £1,000 70.0% Cc = 60.0% = £800 50.0% £600 40.0% £400 30.0% 20.0% £200 10.0% £0 0.0% 2013 2014 2015 2016 2017 2018 2019 mam Value of Investment Portfolio @amm Value of trading and development stock == Loan to value * Committed capex programme of £65m wit
Slide 24: Net Cash Flow Movements
NET CASH FLOW MOVEMENTS FORECAST CAPITAL EXPENDITURE March March 2018 2019 120.0 £m £m. Cash generated from operations 26.4 22.6 100.0 Acquisitions (25.0) (29.5) L Capex (70.8) (50.2) 80.0 Joint ventures (4.7) 0.4 60.0 Net disposal proceeds 337.6 164.1 c x 40.0 Increase/(reduction) in net borrowing
Slide 25: Impact of Forecast Capital Expenditure and Capital Receipts
IMPACT OF FORECAST CAPITAL EXPENDITURE AND CAPITAL RECEIPTS Forecast Contracted Capex to Sales to Pro-forma 31 March 31 March 31 March 31 March 2019 2020 2020 2020 Portfolio fair value £876.4m £98.0m (£30.4m) £944.0m Net debt £268.6m £98.0m (£30.4m) £336.2m Pro-forma Loan to Value 30.6% +7.0% -2.0%
Slide 26: Summary of portfolio, surpluses and financial capacity
* We have ac. £915m portfolio with c. £90m of surpluses and profits to come * We have a surplus of ERV over contracted rents of c. £18m going to £26m * Our LTV is down to 31% with growth to c. 36% on committed expenditure * We have £176m of unused bank facilities and c. £50.0m of cash to fund new ac
Slide 27: Portfolio Highlights
PORTFOLIO HIGHLIGHTS MATTHEW BONNING-SNOOK
Slide 28: London Portfolio - City & Tech Belt
LONDON PORTFOLIO - CITY & TECH BELT My we yy y z %, zk ; m v 2 oo ¥ Ke ‘ $ wey | a = g Bethnal Res) skenwiell Ge & VOW FARR & FarringdonR pARBICAN _ Mooraale = rol Street © Nay} Aldgate East WHITEICHAPEL 4 Ao Cheapsigg Aldgate@ 36 1B jansion House & = +: & Ss London Fenchurch Street has Cannon Stree
Slide 29: Kaleidoscope-style fully let office and restaurant asset
* 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 Allegis Pivotal John Brown Media Key rental statistics am (March 2019) Siew: ¥ | Passing Rent 8.0 Contracted Rent 81 ERV 9.5 a 3
Slide 30: The Tower, EC1
THE BOWER, EC1 Redevelop/Refurbish - Initially In Joint Venture, now On Balance Sheet ! THE TOWER - PHASE 2 * 171,434 sq ft offices - 70% let: Finablr 11,329 sq ft 17% floor Available 51,823 sqft 12-16 floors Infosys 19,576 sqft 10-11 floors Farfetch 29,671sq ft 7-9 floors WeWork 59,035 sqft 1-6 flo
Slide 31: 88,680 sq ft offices with ground floor restaurant
* 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 AU isto! a Vista lh LLU LA ifthe) LD Lf FFA * Built over Farringdon East Crossrail Station - opening 2020 «Practical completion December 201
Slide 32: 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 * Achieving rents of £55.00 psf * RIBA Lon
Slide 33: 38,355 sq ft offices plus ground floor retail
* 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 23 May 2019 Key rental statistics (March 2019) nn Passi
Slide 34: 214,434 sq ft offices - 64% let
* 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 35: Barts Square, EC1
BARTS SQUARE, EC1 Redevelop - In Joint Venture RESIDENTIAL PHASE 1 * 144 units and 3,101 sq ft restaurant (2 units) * 134 units sold for £171.8m - £1,558 psf average and one further unit exchanged + Restaurants - let to Stem+Glory and Halfcup PHASE 2 * 92 units and 11,815 sq ft retail/restaurants \
Slide 36: 24,013 sq ft office
24,013 sq ft office 4,642 sq ft let to Northridge Law and a further 7,564 sq ft is under offer 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 due Q4 2019 BR
Slide 37: 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 following 86,311 sq ft of lettings since April 2018 * 155 year leasehold interest with 5% ground rent payable to the City of
Slide 38: Power Road Studios, W4
POWER ROAD STUDIOS, W4 : , Refurbish - On Balance Sheet Powzr | ROAD STUDIOS * 57,585 sq ft multi-let office campus * Consent secured for a 13,000 sq ft extension and 30,000 sq ft new building scheme on surplus land * Average rent at acquisition £24.00 psf, new lettings being achieved at £40.00 psf
Slide 39: Manchester Portfolio
MANCHESTER PORTFOLIO aia | OF . : OY -CANCOATS SG: Y ~ & » chi St ord Centi NORTHERN CENTRAL RETAIL K la D JSPR Cia QUARTER SPINNINGFTELDS Quay 5 DEANS GATE Lee Ad ) Fairtielg St 23 May 2019 Helical Annual Results 2019 39
Slide 40: 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 u of common parts and office space where vacant | * Following the letting of 8,208 sq ft since
Slide 41: 54,112 sq ft multi-let office building
* 54112 sq ft multi-let office building * We have undertaken a comprehensive a» refurbishment of offices and common parts, |) including a new entrance, reception, onsite cafe and bike store/shower facilities * Now fully let (10,134 sq ft let since April 2018) * New headline rent achieved at £24.00 p
Slide 42: 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 23 May 2019 Helical Annual R
Slide 43: Fourways House acquisition
* Acquired off market in July 2018 for £16.5m * 59,067 sq ft listed former packing warehouse adjoining 35 Dale Street * New lettings and regears achieving £25.00 psf * Active asset management initiatives to reposition the building by improving the reception and ground floor food and beverage offerin
Slide 44: The Shepherds Building and Booth Street disposals
THE SHEPHERDS BUILDING, LONDON W14 31 BOOTH STREET, MANCHESTER Recycle Equity Acquired March 2000 £12.8m Refurbishment completed 2001 £24.6m Total Cost £37.4m Sold October 2018 £125.2m Realised capital profit £87.8m Unleveraged IRR 12.1% Recycle Equity Acquired January 2016 £4.7m Capital expenditure
Slide 45: Summary - Milestones for the Year
SUMMARY - MILESTONES FOR THE YEAR ¢ f Let remaining five floors at The Tower Level 16 already under offer TWO Let remaining four floors at One Bartholomew THREE Complete and let Kaleidoscope FOUR Let Trinity, Manchester FIVE Residential sales at Barts Square SIX Asset recycling SEVEN Further acquisi
Slide 46: Helical has a portfolio in London and Manchester
Helical has a portfolio - in London and Manchester. We provide for our customers. There is future in the current portfolio and we continue to evaluate 23 May 2019 46
Slide 47: May 2019
47 23 May 2019
Slide 48: May 2019
48 23 May 2019
Slide 49: Investment Portfolio Key Statistics
INVESTMENT PORTFOLIO KEY STATISTICS LEASE EXPIRIES OR TENANT BREAK OPTIONS Year to 2020 Year to 2021 Year to 2022 Year to 2023 Year to 2024 Percentage of Rent Roll 59 6.4 V7 79 13.4 Number of Leases 36 19 28 15 25 Average Rent per Lease (£) 54,309 1,037 138,860 175,870 178,434 TOTAL PORTFOLIO CONTRA
Slide 50: Portfolio Yields (Excluding Assets in Joint Ventures)
PORTFOLIO YIELDS (EXCLUDING ASSETS IN JOINT VENTURES) EPRA Topped EPRA Topped True Equivalent True Equivalent Reversionary Reversionary Up NIY Up NIY Yield Yield Yield Yield 31.3.2019 31.3.2018 31.3.2019 31.3.2018 31.3.2019 31.3.2018 % % % % % % - Completed, let and available to let Total London Man
Slide 51: Helical - Rental Reversion
HELICAL - RENTAL REVERSION £m 100 90 81.0 80 716 70 59.5 60.3 60 56.0 48.4 - 50 456 : 40 377 367 33.2 30 20 10 Oo 31 March 31 March 31 March 31 March 31 March 31 March 2014 2015 2016 2017 2018 2019 mGross Contracted Rent —™ Estimated Rental Value (ERV) 23 May 2019 Helical Annual Results 2019 51
Slide 52: Top Tenants
TOP 10 TENANTS RANK TENANT TENANT INDUSTRY CONTRACTED RENT RENT ROLL 1 Farfetch Online retail £3.9m 11.8% 2 WeWork Co-working £3.8m 1.5% 3 Pivotal Technology £2.0m 6.0% 4 Infosys Technology £1.4m 4.2% 5 Anomaly Marketing £1.4m 4.2% 6 CBS Media £1.0m 3.1% 7 Allegis Recruitment £1.0m 3.0% 8 Finablr Fi
Slide 53: 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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Slide 55: Helical contact details
HELICAL 5 Hanover Square London WIS IHQ 0207 629 O113 www.helical.co.uk @helicalple