Slide 1: Analysts Presentation
Helical Bar plc Analysts y Presentation 25 November 2010
Slide 2: Trading Update and Trading Strategy
Trading Update and Trading Strategy • 30 September 2010 NAV of 261p, down from 272p in March 2010 – 3.4% uplift on investment portfolio – £10.2m write down mainly trading and development assets being priced for disposal – £13.3m (£10.1m net of tax) write off of minority holding in Quotient (written
Slide 3: 30 September 2010 Financials: Summary Profit and Loss
30 September 2010 Financials Summary Profit and Loss Half Year To Half Year To Year To 30 September 2010 30 September 2009 31 March 2010 £m £m £m Net rental income (including share of joint ventures) 8.4 8.6 14.9 Development property loss (9.2) (3.7) (1.3) Trading property loss (0.4) ‐ ‐ Gain/(loss)
Slide 4: 30 September 2010 Financials: Summary Balance Sheet
30 September 2010 Financials Summaryy Balance Sheet 30 September 2010 31 March 2010 £000 £m £m Investment properties 255 220 Land, developments and trading properties 155 183 Investment in joint ventures 25 26 Cash and cash equivalents 31 40 Borrowings (240) (243) Derivative financial instruments (1
Slide 5: 30 September 2010 Financials
30 September 2010 Financials 30 September 2010 31 March 2010 Net debt £209m £203m Net gearing 91% 84% Property portfolio at valuation £443m £435m Ratio of net borrowing for property portfolio 47% 47% 24 November 2010 31 March 2010 Hedging ‐ Fixed rate borrowing at average 6% £87m £93m ‐ Interest rat
Slide 6: Investment Portfolio
Investment Portfolio • Valuation increase of 3.4% in six months to September, including capex, sales and purchases • Compared to IPD Monthly Index of 2.4% over the same period % of Portfolio Valuation Initial Reversionary Yield on Equivalent Equivalent (our share) Increase Yield Yield letting voids
Slide 7: Asset Management
Asset Management Rent Change No. of leases Rent lost at break/expiry / ‐£560,000 ‐£560,000 12 Leases renewed £515,000 £145,000 20 Fixed uplifts £40,000 £40,000 12 New lettings £500,000* £500,000 20 __________ £125,000 * Additional £260,000 pa to come in fixed increases from Urban Outfitters in Cardi
Slide 8: Investment Portfolio
Investment Portfolio 50% of the in investment estment portfolio (£139m (£139m, o ourr share) in three assets with ith good ood prospects prospects, Cardiff, Shepherds Building and Clyde The Morgans, Cardiff (£49.75m) Shepherds Building, W14 (£43.75m) • Prime retail asset on the Hayes opposite St • 1
Slide 9: Market Outlook - Investment
Market Outlook ‐ Investment • It’s a Three Tier market: 1. Prime/trophy “institutional” assets – competitive bidding, significant money‐ flows limited ability to add value. flows, value Helical develops and sells into this market 2. Well located, good quality institutional assets, but in need of val
Slide 10: Acquisition Strategy
Acquisition Strategy • Targeting multi‐let, multi let good quality assets, assets shopping centres, centres retail parks, parks industrial estates and inner‐ inner London offices, at yields of 7.5‐10% • Avoiding provincial offices and large distribution warehouses • Portfolios offering opportunities
Slide 11: Investment Portfolio
Investment Portfolio Clyde Shopping Centre Glasgow F3 Portfolio • Acquired for £68m from AXA/CIS (8.3% NIY) in 60:40 JV • Acquired for £46.5m from ING/USS using only £7.8m of with Prime Commercial Properties (Helical 60% equity equity i.e. £18m) • 9 assets, of which 6 multi let industrial estates, 1
Slide 12: Sales Since 31/03/2010
Sales Since 31/03/2010 • Total sales of £80 million of which: • £45 million of non income producing stock including: • Chancerygate units ‐ £17 million • Fieldgate Street ‐ £16.5 million • Liphook units ‐ £10.2 million • £35 million of investment/trading property with strategic reasons to sell inclu
Slide 13: How we invest our capital (at 30/09/10)
How we invest our capital (at 30/09/10) London Provincial In Town Out of Town Industrial Change of Retirement TOTAL March Offices Offices Retail Retail Use Villages 2010 Investment 21% 4% 23% 3% 10% ‐ 1% 62% 56% Trading and 1% 3% 2% 11% 6% 2% 13% 38% 44% Development TOTAL 22% 7% 25% 14% 16% 2% 14% 1
Slide 14: Update on Development Projects (1)
Update on Development Projects (1) Mitre Square, London EC3 200 Aldersgate, London EC1 • Planning application submitted for a prime • Asset and development management office development of 275,000 sq ft with agreement with Deutsche Pfandbriefbank permission anticipated next month for a 360,000 sq ft
Slide 15: Update on Development Projects (2)
Update on Development Projects (2) Wroclaw, Poland Turawa, Poland Europe Centralna, Gliwice, Poland • Retail park of 9,600 sqm • Retail park of 41,000 sqm • Retail park and mall 67,000 sqm • Completed and fully let December 2008 • Anchors include Carrefour Hypermarket • Anchor tenants include Tesco,
Slide 16: Update on Development Projects (3)
Update on Development Projects (3) Thameling • Joint venture with Thameling Group to develop pre‐let (pre‐sold) warehouse and distribution buildings in Central Europe – Poland, Czech Republic, and Slovakia • Thameling is run by Hans van Luijken and Piota Michalski who are ex Parkridge and Prologis 1
Slide 17: Medium Term Development Prospects
Medium Term Development Prospects Townmead Road, Fulham Wharf SW6 King Street, Hammersmith W6 White City W12 • Helical Bar appointed development • 50/50 JV with Grainger has a development • White City Opportunity Area Planning Manager by Sainsbury’s plc to secure agreement with Hammersmith & Fulham
Slide 18: Helical
Helical 4% Bar b plc