Slide 1: Annual Results to 31 March 2017
ANNUAL RESULTS TO 31 MARCH 2017 25 May 2017 Helical Annual Results 2017 1
Slide 2: Agenda
AGENDA RESULTS HIGHLIGHTS ONE Gerald Kaye FINANCIALS TWO Tim Murphy PORTFOLIO THREE Matthew Bonning-Snook and Duncan Walker OUTLOOK FOUR Gerald Kaye FIVE Q&A 25 May 2017 Helical Annual Results 2017 2
Slide 3: Results Highlights
RESULTS HIGHLIGHTS GERALD KAYE 25 May 2017 Helical Annual Results 2017 3
Slide 4: Results Highlights
RESULTS HIGHLIGHTS PROFIT BEFORE TAX NET RENTAL INCOME £41.6m £47.0m (2016: £114.0m) +8.3% DIVIDEND DECLARED VALUATION GAIN PER SHARE £37.3m 8.6p +4.5% + 5.3% from 2016 EPRA NAV SEE-THROUGH LOAN TO PER SHARE VALUE 473p 51% +3.7% (pro-forma 49%) 25 May 2017 Helical Annual Results 2017 4
Slide 5: Strategy
STRATEGY The Bower Trinity Court Jarrow • 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
Slide 6: Operational Highlights – Sales
OPERATIONAL HIGHLIGHTS – SALES LONDON OFFICE £42m LOGISTICS £59m RETAIL £103m REGIONAL OFFICE £14m RETIREMENT VILLAGES £39m TOTAL SALES £257m Investment £218m Retirement Villages £39m (year to 31/03/17: £159m, post year end: £59m) (year to 31/03/17: £36m, post year end: £3m) 25 May 2017 Helical Annu
Slide 7: Portfolio Allocation
PORTFOLIO ALLOCATION 7 6 4 5 3 4 1 1 2 3 2 TOTAL VALUE MARCH 2016: TOTAL VALUE TODAY: £1.24bn £1.16bn 1 London Office 49.3% £611.2m 1 London Office/Mixed Use 65.7% £764.2m 2 London Residential 4.8% £60.0m 2 Manchester Office 7.3% £84.4m 3 Regional Logistics 17.0% £210.5m 3 Logistics 13.5% £156.5m 4
Slide 8: Operational Highlights – Lettings
OPERATIONAL HIGHLIGHTS – LETTINGS LONDON OFFICES 219,834 sq ft MANCHESTER OFFICES 47,134 sq ft LOGISTICS THE TOWER, THE BOWER, EC1 THE LOOM, E1 C SPACE, EC2 58,907 sq ft 49,339 sq ft 15,387 sq ft 137,974 sq ft OTHER 44,046 sq ft TOTAL LETTINGS 448,988 sq ft CHARTERHOUSE SQUARE, EC1 MANCHESTER OFFICE
Slide 9: Increasing Rental Income
INCREASING RENTAL INCOME £80 Millions ERV = £ 68.8 m £70 The Bower Phase 2 £60 London Offices Manchester Offices London Offices £50 Manchester Offices London Offices The Bower Phase 2 The Bower London Offices £40 Phase 1 London Offices £30 London Offices Manchester Logistics Offices £20 Manchester O
Slide 10: Market Comment
MARKET COMMENT • London population still growing • London home to government, finance, technology, creative industries and life sciences • Over last 30 years London economy grown by 3% per annum, 25% more than rest of UK • Continued overseas demand for prime property; yields back to pre Brexit level
Slide 11: Future Upside
FUTURE UPSIDE 25 Charterhouse Square One Creechurch Place The Loom One Bartholomew Close Barts Square – Residential London, EC1 London, EC3 London, E1 London, EC1 London, EC1 • Completed • Completed • Ongoing • Q3 2018 • Ph 1 – Q4 2017 • £3-6m • £15-17.5m • £5m-10m • £4-6m • Ph 3 – Q3 2019 • £5m+ Th
Slide 12: Active Value Creation
ACTIVE VALUE CREATION One Barts Square The Loom Shepherds Building • Active value creation by: − Redevelopment and major refurbishment − Repositioning and rolling upgrade − Significant asset management • Seek additional profit on larger schemes by co-investment or forward funding / sale with partner
Slide 13: Summary
SUMMARY Focus of portfolio – three key areas De-risked with sales and lettings Upside potential within portfolio and with future opportunities Enduring quality of chosen assets 25 May 2017 Helical Annual Results 2017 13
Slide 14: Financials
FINANCIALS TIM MURPHY 25 May 2017 Helical Annual Results 2017 14
Slide 15: Headline Numbers
HEADLINE NUMBERS SEE-THROUGH INCOME STATEMENT March 2015 March 2016 March 2017 Net rental income £38.6m £43.4m £47.0m +8.3% Development profits / (losses) £17.6m £27.5m (£5.7m) Gain on sale and revaluation of investment properties £96.6m £93.7m £38.6m IFRS profit before tax £87.4m £114.0m £41.6m EPR
Slide 16: Income Statement
INCOME STATEMENT 100 90 80 70 60 £7.1m 50 £47.0m £2.5m £41.6m £38.6m 40 £12.8m 30 20 £18.7m 10 £0.5m 0 £21.2m £0.9m -10 Net Rents Development Provisioning Administration Net finance Other EPRA earnings Net gain on sale Other IFRS profit profits against stock costs and revaluation before tax • Net re
Slide 17: EPRA Net Assets per Share
EPRA NET ASSETS PER SHARE • Adjustment to opening NAV per share from full adoption of IAS 40 – Investment Property • Development surpluses realised relate mainly to Cortonwood Retail Park and Retirement Villages 550 525 500 32.2p 472.7p 475 5.8p 460.8p 6.8p 3.1p 455.7p 0.5p 450 5.1p 425 400 375 31 M
Slide 18: Debt Summary
DEBT SUMMARY MAR MAR LOAN MATURITY 2016 2017 £m 400 Total facilities £884.4m £894.9m 350 Gross debt £777.9m £736.6m 300 Unutilised facilities £106.5m £158.3m 250 Percentage of unsecured debt 23% 24% Uncharged properties £153m £17m 200 Average interest rate 4.16% 4.34% 150 Average interest rate 3.75%
Slide 19: Net Cash Flow Movements
NET CASH FLOW MOVEMENTS MAR MAR FORECAST CAPITAL EXPENDITURE 2016 2017 £m £m 120 Cash generated from / (used by) Residential Funded 38.5 (8.1) operations Residential Acquisitions (377.1) – 100 Investment Funded Capex (28.0) (59.3) Investment Joint ventures 94.1 1.6 80 Disposal proceeds 121.8 156.3 D
Slide 20: Loan to Value
LOAN TO VALUE £m Proforma £1,400 90% 80% £1,200 70% £1,000 55% 60% 52% 51% £800 49% 45% 50% Range 46% £600 40% 30% £400 20% £200 10% £0 0% 2013 2014 2015 2016 2017 2017 2018 2019 Value of the investment Value of trading and Loan to value including portfolio development stock unsecured debt • Current
Slide 21: Positive Performance
POSITIVE PERFORMANCE EPRA NET ASSETS PER SHARE (PENCE) DIVIDEND PER ORDINARY SHARE (PENCE) p p 600 12 500 10 473p 456p 8.60p 8.17p 400 385p 8 7.25p 6.75p 313p 300 6 5.55p 264p 200 4 100 2 2.10p 2.30p 2.40p 1.85p 2.00p 0 0 03/13 03/14 03/15 03/16 03/17 2013 2014 2015 2016 2017 Increase 18.6% 23.0% 18
Slide 22: Summary of Key Financials
SUMMARY OF KEY FINANCIALS Growing income stream as the reversion on the investment portfolio is captured Contracted rents of £46.6m growing to ERV of £68.8m Finance costs contained with over 96% of debt at fixed rate or hedged Debt maturity of 3.6 years with no secured loans repayable before Novembe
Slide 23: Portfolio
PORTFOLIO MATTHEW BONNING-SNOOK DUNCAN WALKER 25 May 2017 Helical Annual Results 2017 23
Slide 24: The Warehouse & The Studio, The Bower, EC1
THE WAREHOUSE & THE STUDIO, THE BOWER, EC1 PHASE 1 – FULLY LET The Studio 18,363 sq ft £45 psf John Brown Media The Warehouse 9th Floor 7,665 sq ft £60 psf CBS Interactive Ltd 8th Floor 9,751 sq ft £60 psf CBS Interactive Ltd 7th Floor 12,398 sq ft £67.50 Stripe Payments UK Ltd 6th Floor 12,430 sq f
Slide 25: The Tower, The Bower, EC1
THE TOWER, THE BOWER, EC1 PHASE 2 171,158 sq ft offices (35% pre-let) 17th Floor 11,347 sq ft Available in Q2. 2018 16th Floor 11,347 sq ft Available in Q2. 2018 15th Floor 11,347 sq ft Available in Q2. 2018 14th Floor 9,522 sq ft Available in Q2. 2018 13th Floor 10,015 sq ft Available in Q2. 2018 1
Slide 26: One Creechurch Place, EC3
ONE CREECHURCH PLACE, EC3 272,505 sq ft offices (17 floors) Completed November 2016 In partnership with HOOPP (Healthcare of Ontario Pension Plan) 90% : Helical 10% Impressive entrance. 7000 sq ft, incorporating its own cafe. 500 cycle spaces / lockers, 29 showers Wiredscore Platinum BREEAM Excellen
Slide 27: Barts Square, EC1
BARTS SQUARE, EC1 PHASE 1 123,579 sq ft residential (144 apartments), 3,193 sq ft retail. Under construction Sales: • 144 units launched with total value of £195m • Contracted sales: 118 units exchanged. 3 more reserved • Average sales price to date £1,570 psf Residents’ concierge, bar, dining room
Slide 28: 90 Bartholomew Close, EC1
90 BARTHOLOMEW CLOSE, EC1 23,508 sq ft offices and 5,703 sq ft restaurant unit Completion September 2017 Character office space over six floors behind retained facades Flagship restaurant unit proposed on ground floor/basement 25 May 2017 Helical Annual Results 2017 28
Slide 29: One Bartholomew Close, EC1
ONE BARTHOLOMEW CLOSE, EC1 213,000 sq ft offices Completion August 2018 Funding Partner - Ashby Capital LLP Baupost/Helical to receive profit share based on fixed yield, variable on rent 25 May 2017 Helical Annual Results 2017 29
Slide 30: 25 Charterhouse Square, EC1
25 CHARTERHOUSE SQUARE, EC1 38,500 sq ft offices 5,100 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 Available 1st Floor 6,582 sq ft Available Ground Floor Retail/Restaur
Slide 31: Drury Lane, WC2
DRURY LANE, WC2 Conditional purchase contract (subject to planning and viability) Resolution to grant planning consent achieved for 68 apartments, residential-led scheme Alternative 71,000 sq ft office plus retail scheme now being pursued Aiming to reach planning committee in early July 25 May 2017
Slide 32: Future Opportunities
FUTURE OPPORTUNITIES • ‘Actively’ looking for new projects − refurbishment and new build opportunities − in interesting sub-markets with broad tenant appeal − use our skill set to get the right deal structure for the business − focus on ‘design-led’ projects where we can add further value − utilise
Slide 33: The Loom, E1
THE LOOM, E1 110,143 sq ft offices Refurbishment complete September 2016 Average rent at purchase £18 psf New lettings £50+ psf 31,500 sq ft let since refurbishment completed, 2,748 sq ft under offer, 19,275 sq ft vacant Highly Reversionary 25 May 2017 Helical Annual Results 2017 33
Slide 34: C Space, EC1
C SPACE, EC1 61,973 sq ft offices – Fully let 4th Floor £70 psf Neulion 3rd Floor £63.50 psf Neulion £68.50 psf Mullen Lowe 2nd Floor £58.50 psf Mullen Lowe 1st Floor £57 psf Mullen Lowe Ground Floor £55 psf Mullen Lowe Lower Ground Floor £45 psf Mullen Lowe 25 May 2017 Helical Annual Results 2017 3
Slide 35: The Shepherds Building, W14
THE SHEPHERDS BUILDING, W14 150,470 sq ft offices, fully let Contracted rent £6.6m Rent review agreed at £54 psf Average rents now £44 psf+ Continued strong occupational demand 25 May 2017 Helical Annual Results 2017 35
Slide 36: Power Road Studios, W4
POWER ROAD STUDIOS, W4 Acquired December 2015 for £34.2m. 4.4% NIY 58,404 sq ft multi let office on 2 acre site Average rents at acquisition £24 psf New lettings at £40+ psf Planning consent recently granted for 42,500 sq ft of additional space 16,000 sq ft being refurbished Optionality to add new s
Slide 37: Manchester Offices
MANCHESTER OFFICES CHURCHGATE AND LEE HOUSE BOOTH STREET DALE HOUSE • 249,233 sq ft • 25,411 sq ft • 53,635 sq ft • Fully let • Acquired December 2015 • Under refurbishment • 136,000 sq ft of lettings completed • Fully refurbished. Completed March • Proactively surrendered 4 floors since purchase in
Slide 38: Manchester Offices Trinity Court
MANCHESTER OFFICES TRINITY COURT Acquired May 2017 off market for £12.9m 9.25% NIY, £235.00 psf capital value Income for 1 year then full refurbishment and extension into atrium Spinningfields extension with public realm and adjacent development enhancing area ERV c. £27.50 psf vs £34.00 psf prime 2
Slide 39: Logistics
LOGISTICS 25 assets, value £156.5m Strong occupational demand Strong cash on cash returns Little obsolescence 13 properties sold (£59m) at an 7% premium to March 2016 fair value 25 May 2017 Helical Annual Results 2017 39
Slide 40: Retirement Villages
RETIREMENT VILLAGES Good progress at all 4 sites 88 units sold in the year for £35.8m plus surplus land for £2.5m Full planning consent granted at all sites Asset No. No. No. No. Status Anticipated Units Built Sold Reserved Completion Liphook 191 151 151 8 Final 40 cottages complete Q4 2017 2018 Fay
Slide 41: Overview and Outlook
OVERVIEW AND OUTLOOK GERALD KAYE @helicalplc • Focus • Flexibility • Upside • Opportunity 25 May 2017 Helical Annual Results 2017 41
Slide 42: Q&A
Q&A The Bower 25 May 2017 Helical Annual Results 2017 42
Slide 43: Appendix
APPENDIX 25 May 2017 Helical Annual Results 2017 43
Slide 44: London Programme Completion Dates
LONDON PROGRAMME COMPLETION DATES 2016 2017 2018 2019 Sq ft 300,000 ONE CREECHURCH PLACE 250,000 ONE BARTHOLOMEW CLOSE 200,000 THE TOWER 150,000 BARTS PHASE 1 RESI THE LOOM BARTS PHASE 100,000 2 RESI DRURY LANE POWER ROAD STUDIOS REFURB POWER ROAD 50,000 25 CHARTERHOUSE STUDIOS SQUARE 90 BARTHOLOMEW
Slide 45: Investment Portfolio – Key Statistics
INVESTMENT PORTFOLIO – KEY STATISTICS Valuation increase of 4.5% in the year to March, including capex, sales and purchase for assets held as investments % OF PORTFOLIO VALUATION EPRA TOPPED UP REVERSIONARY (HB SHARE) CHANGE NET INITIAL YIELD YIELD London Offices 65.5% 9.1% 4.2% 5.5% Retail 7.8% -9.
Slide 46: IPD Performance
IPD PERFORMANCE 1 yr 3 yr 5 yr 10 yr 20 yr % pa % pa % pa % pa % pa Helical 9.4 17.0 16.6 8.4 14.5 IPD Benchmark 4.4 11.0 10.0 4.3 8.8 Helical Percentile Rank 8 3 3 3 2 25 May 2017 Helical Annual Results 2017 46
Slide 47: Helical's Portfolio – Changes to Fair Value
HELICAL'S PORTFOLIO – CHANGES TO FAIR VALUE £1,400 Millions £1,200 £1,000 CONVERTIBLE BOND ISSUE £800 RETAIL BOND ISSUE £600 £400 £200 £0 Mar-12 Jun-12 Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13 Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Poland Land Ret
Slide 48: Property Portfolio – Helical's Share
PROPERTY PORTFOLIO – HELICAL’S SHARE FAIR VALUE % VALUE London Offices £685.1m 56.9% London Residential £78.8m 6.5% Regional Offices £95.8m 7.9% Logistics £156.5m 13.0% Retail £79.5m 6.6% Retirement Villages £102.8m 8.6% Land £6.4m 0.5% TOTAL £1.205bn 100% 25 May 2017 Helical Annual Results 2017 48
Slide 49: Investment Portfolio
INVESTMENT PORTFOLIO CAPITAL VALUE VACANCY RATE PSF £ (FLOOR AREA) % WAULT YEARS London Offices 926 10.0 6.8 • Completed • Being redeveloped/refurbished 619 n/a - 645 43.2 0.1 • Held for future development/refurbishment TOTAL LONDON 828 33.2 6.9 Regional Offices 201 12.9 5.1 Regional Logistics 54 4.
Slide 50: Investment Portfolio Key Statistics
INVESTMENT PORTFOLIO KEY STATISTICS LEASE EXPIRIES AND TENANT BREAK OPTIONS 2018 2019 2020 2021 2022 Percentage of Rent Roll 9.8% 10.6% 11.2% 5.1% 14.7% Number of Leases 91 90 68 22 35 Average Rent per Lease £51,700 £56,800 £79,300 £111,900 £202,600 ASSET MANAGEMENT OVERVIEW RENT Rent lost at break/
Slide 51: Top Tenants
TOP TENANTS RENT % RANK TENANT TENANT INDUSTRY (HELICAL) RENT ROLL 1 Endemol UK Limited Media £3.9m 8.1% 2 MullenLowe Limited Marketing Communications £2.6m 5.4% 3 Gopivotal (UK) Limited Technology £2.0m 4.1% 4 Farfetch UK Limited Online Retail £1.9m 3.9% 5 Sainsbury's Supermarkets Limited Food Reta
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Slide 58: 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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