Slide 1: Full Year Results to 31 March 2020
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Slide 2: Agenda
AGENDA ee | RESULTS HIGHLIGHTS 3 GERALD KAYE FINANCIALS 15 TIM MURPHY PORTFOLIO HIGHLIGHTS 24 MATTHEW BONNING-SNOOK SUMMARY 31 FOUR GERALD KAYE Q&A 33 Ny P)(e = ADDITIONAL ANALYSIS 34 @helicalplc | Helical plc | helical.co.uk
Slide 3: Results Highlights
RESULTS HIGHLIGHTS GERALD KAYE Fenwick House, Barts $ on @helicalplc | Helical plc | helical.co.uk
Slide 4: Results Highlights
RESULTS HIGHLIGHTS PROFIT BEFORE TAX £43.0m (2019: £43.5m) EPRA NAV PER SHARE Slip +6.0% (31 March 2019: 482p) TOTAL DIVIDEND PER SHARE 8.70p -13.9% (2019: 10.10p) EPRA EARNINGS PER SHARE 7.69 (2019: loss of 8.41) TOTAL ACCOUNTING RETURN 7.7% (2019: 8.4%) NET RENTAL INCOME £28.5m +13.0% (2019: £25.2
Slide 5: MSCI Performance
MSCI PERFORMANCE Helical’s Percentile Rank: 2 9.6% YEAR | JGwWYy 2.9% 6.2% Helical’s Percentile Rank: 4 3 YEARS | YY 7.0% @helicalple | Helical ple | helical.co.uk
Slide 6: Operational Highlights - Lettings
OPERATIONAL HIGHLIGHTS - LETTINGS LONDON | Total area let at 31.3.2019 The Warehouse 25 Charterhouse Square im Vacancy Zs Under development A] Kaleidoscope 90 Bartholomew Close Sq ft 000s 916 230 201 203 Barts Square Retail | 55 Chartemouse sees MMMM MMMM Powerhouse ee na | MANCHESTER 35 Dale Sect T
Slide 7: Contracted Rent Uplifts and Current Developments
CONTRACTED RENT UPLIFTS CURRENT DEVELOPMENTS FY 2021 £8.0m 33 CHARTERHOUSE STREET £8.5m FY 2022 £2.0m TOTAL £8.5m FY 2023 £0.0m FY 2024 £0.2m AVAILABLE SPACE TOTAL £10.2m KALEIDOSCOPE £7.2m TRINITY £1.7m REVERSIONARY RENTS FOURWAYS £0.4m THE BOWER £2.4m 55 BARTHOLOMEW £0.3m THE TOOTAL BUILDINGS £0.6
Slide 8: Current Situation
CURRENT SITUATION Strong performance to 31 March 2020 Completion of Stage 1 of strategy - portfolio reoriented and major development programme finished and predominantly let Stage 2 to grow the business to enhance the high quality portfolio, further acquisitions alongside 33 Charterhouse Street Curr
Slide 9: A New Grade A Portfolio
A NEW GRADE A PORTFOLIO * 83% of the office units have either been recently developed or refurbished * 100% of common parts across the London portfolio, including reception areas, toilets, showers and bike stores are new or fully refurbished within the last 5 years tr 300,000 3 ™ New or newly refurb
Slide 10: Lease Expiries or Tenant Break Options
LEASE EXPIRIES OR TENANT BREAK OPTIONS Year to 2021 Yearto 2022 Year to 2023 Year to 2024 Year to 2025 After 2025 Rent Roll (%) 6.5 15.4 15.1 11.6 8.9 42.5 Number of Leases 25 31 25 21 19 40 Average Rent per Lease (£) 106,127 186,560 247,220 207,025 176,829 395,252 @helicalpic | Helical plc | helica
Slide 11: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 12: Investment Case - Future Upside - Manchester
INVESTMENT CASE - FUTURE UPSIDE - MANCHESTER STATUS, PERFORMANCE TO DATE FUTURE POTENTIAL The Tootal Buildings, * Completed * £23.5m valuation gain * £5.1m ERV vs £4.5m contracted rents Manchester + Potential surplus of £7m+ Fourways, + Purchased July 2018 and * Acquired for £16.5m + £1.3m ERV Manch
Slide 13: Future of the Office
FUTURE OF THE OFFICE - “THE REPORTS OF MY DEATH ARE GREATLY EXAGGERATED” (mark TWAIN) * Limitations of working from home Lack of space and privacy IT quality poor Mental wellbeing - lonely, boring * The office enables Interaction - the ‘buzz’ Greater productivity and accountability Creativity and mo
Slide 14: Recession due to Covid-19 not financial stress
Recession due to Covid-19 not financial stress Total availability 13.95m sq ft (6.1%), only 28% new EF, i — Ae or due to be completed in next 12 months mit ; wif a i Under construction 12.56m sq ft, 60% let or under offer dias : (CBRE) Completions delayed at least 3-6 months because of Covid-19. Som
Slide 15: Financials
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Slide 16: Financial Highlights
FINANCIAL HIGHLIGHTS SEE-THROUGH INCOME STATEMENT March 2020 March 2019 Total property return - Net rental income £28.5m +13.0% £25.2m - Development property profits/(losses) £9.9m (£4.4m) - Gain on revaluation of investment properties £46.8m £45.6m - (Loss)/gain on sale of investment properties (£1
Slide 17: EPRA Earnings and IFRS Profit
EPRA EARNINGS AND IFRS PROFIT £455m 50.0 £0.2mM = £43.0m 40.0 30.0 £m 20.0 (£17.3m) 10.0 (e129m) — 6EO.7M) Net Rents Development Provisioning Administration Net finance costs EPRA Tax Other EPRA Profit Net gain onsale Expense on Financial Tax Other —_ Profit before tax profits against stack costs ad
Slide 18: EPRA Net Assets per Share
EPRA NET ASSETS PER SHARE 37.8p Pence 525 515 505 495 485 475 31 March 2019 EPS. Investment Expense on Tax Dividends Other 31 March 2020 Gains cancellation of loans 2019 468.0p (8.4p) 50.1p (1.2p) (13.7p) (9.6p) (3.1p) 482.1p @helicalplc | Helical plc | helical.co.uk 18
Slide 19: Loan to Value and Gearing
LOAN TO VALUE AND GEARING § £1,400 £1,200 £1,000 £800 1,240 1,205 PORTFOLIO VALUE 949 682 SHAREHOLDERS’ FUNDS 620 567 598 £600 534 NET DEBT £400 365 299 283 255 280 269 £200 242 254 254 £0 20n 2012 2013 2014 2015 2016 2017 2018 2019 2020 LTV 45.5% 48.8% 45.2% 45.5% 52.1% 55.0% 514% 39.9% 30.6% 314%
Slide 20: Debt Summary
DEBT SUMMARY March March 2020 2019 Total facilities £583.3m £655.1m Utilised facilities £386.9mM £479.2m Unutilised facilities £196.4m £176.4m Cash balance £82.4m £205.2m Uncharged properties £69.8m £25.2m Average interest rate 3.5% 4.0% Marginal interest rate on RCF 2.2% 2.1% seen a So foo% am Aver
Slide 21: Covenant Summary
COVENANT SUMMARY RCF Covenant Threshold March 2090 Loan to Contracted Rental Value <12:)1 93:1 Actual Interest Cover >200% 307% Projected Interest Cover >150% 360% June rent collection - £5.5m rent will be charged for the June rent quarter. We have rent deposits and bank guarantees of £9.7m from ten
Slide 22: Gross Contracted Rent and ERV
Gross Contracted Rent 81.0 Estimated Rental Value (ERV) 71.6 60.3 60.0 56.0 48.4 51.5 35.5 37.6 33.2 31 March 31 March 31 March 31 March 31 March 2016 2017 2018 2019 2020
Slide 23: Long-term portfolio target and firepower
Our collection of the March quarter rents was excellent, and we are working with our tenants to help them through the next few months. We continue to target a completed, let and fully stabilised investment portfolio of £1bn to £1.lon. Key drivers of this longer term target are: current contracted re
Slide 24: Portfolio Highlights
PORTFOLIO = HIGHLIGHTS ~ MATTHEW BONNING-SNOOK Kaleidoscope, EC1 @helicalpic | Helical plc | helical.co.uk 24
Slide 25: London Portfolio - City & Tech Belt
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Slide 26: By Téscojexpress
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Slide 27: Charterhouse Street, EC1
33 CHARTERHOUSE STREET, EC1 * Major development site acquired in a 50:50 joint venture with AshbyCapital in May 2019 * c. 200,000 sq ft of offices over ground plus ten floors and ground floor retail a * Planning consent granted for enhanced ground floor = x configuration and additional floor of 13,1
Slide 28: Kaleidoscope, EC1
KALEIDOSCOPE, EC1 88,581 sq ft offices with ground floor restaurant / café and kiosk unit 5 floors of c. 14,000 - 19,500 sq ft Roof terrace - 5,000 sq ft with views of St. Paul’s Cathedral Built over Farringdon East Crossrail Station - opening 2021 Practical completion achieved in December 2019 150
Slide 29: Sales: Power Road Studios and 90 Bartholomew Close
Sold to La Francaise Real Estate , gt 57,164 multi-let office campus sold in 3 February 2020 for £41.6m reflecting Partners International in April 2020 for £48.5m, reflecting a 3.92% net initial yield and £1,594 psf a 4.8% net initial yield TOTAL | TOTAL SOLD AVAILABLE PHASE 1 140 4 PHASE 2 | 52 39+
Slide 30: Manchester Portfolio
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Slide 31: Summary
SUMMARY 2019 / 2020 MILESTONES 2020 / 2021 MILESTONES LET REMAINING FIVE FLOORS AT THE TOWER ALL FLOORS LET LET KALEDOSCOPE LET REMAINING FLOORS AT ONE BARTHOLOMEW ALL FLOORS LET LET TRINITY, MANCHESTER COMPLETE AND LET KALEIDOSCOPE PC ACHIEVED LET TRINITY, MANCHESTER SELL RESIDENTIAL AT BARTS SQUAR
Slide 32: Summary
SUMMARY Helical has a Grade A portfolio in London and Manchester. We seek to protect our value and to grow the business by « Repositioning * Refurbishing * Redeveloping when opportunities arise @helicalple | Helical ple | helical.co.uk 32
Slide 33: Questions
@helicalplc | Helical plc | helical.co.uk
Slide 34: Additional Analysis
@helicalpic | Helical ple | helical.co.uk
Slide 35: Investing with Helical
INVESTING WITH HELICAL. 36 ini , PORTFOLIO 37 THREE SUSTAINABILITY 48 FOUR EPRA PERFORMANCE MEASURE 50 FINANCIAL APPENDICES, 51 PORTFOLIO METRICS 55 @helicalplc | Helical plc | helical.co.uk
Slide 36: Investing with Helical
INVESTING WITH HELICAL We create buildings for today’s occupiers who demand more inspiring space with distinctive architectural detail, carefully curated public realm, market leading amenities, high quality management and our flexible approach to leasing. Applying this philosophy we seek to maximise
Slide 37: Barts Square, EC1
BARTS SQUARE, EC1 PHASE 1 - RESIDENTIAL * 144 apartments and 3,192 sq ft retail * 140 units sold / exchanged, total value to be £180.3m + Residents’ concierge, bar and screening room + Restaurants - let to Stem + Glory and Halfcup PHASE 2 - RESIDENTIAL / RETAIL 92 apartments and 11,538 sq ft retail
Slide 38: One Bartholomew, EC1
ONE BARTHOLOMEW, EC1 * 214,434 sq ft offices, fully let: The Trade Desk 74,210 sq ft 8 tol floor InfraRed Capital Partners 19,609 sq ft 7 floor Sopra Steria 19,605 sqft 6 floor finnCap Group 19,609 sq ft 5 floor BDB Pitmans 38,156 sqft 3&4 floor Chicago Booth School of 43,245 sqft Ground to 2floor B
Slide 39: The Warehouse and The Studio, The Bower, EC1
THE WAREHOUSE AND THE STUDIO, THE BOWER, EC1 PHASE 1 * 141,141 sq ft offices and 10,298 sq ft restaurants + Fully let prior to practical completion November 2015 + Rents £45.00 to £67.50 psf, first rent reviews for office tenants commence in Q3 and @4 2020 * Office tenants: CBS Stripe Farfetch Alleg
Slide 40: The Tower, The Bower, EC1
at PHASE 2 igo — ie * 171,434 sq ft offices - fully let: (a ry Finablr 11,329 sq ft 17 floor Li Incubeta 11,306 sq ft 16 floor lic Snowflake 9,568 sq ft 14 floor OpenPayd 10,046 sq ft 13 floor Brilliant Basics 40,479 sq ft 10-12, 15 floor Farfetch 29,671 sq ft 7-9 floor WewWork 59,035 sq ft 1-6 floo
Slide 41: 25 Charterhouse Square
38,355 sq ft offices. 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 ae rr ae A @helicalple | Helical ple | helical.co.uk Key rental stati
Slide 42: The Loom
* 108,594 sq ft office listed former Victorian Wool Warehouse * Currently 96% let + Achieving rents of £55.00 psf * 92% of all units have now been extensively refurbished + RIBA London and National Award, AJ Retrofit Award and Brick Awards + Wiredscore Gold @helicalple | Helical ple | helical.co.uk
Slide 43: One Creechurch Place, EC3
ONE CREECHURCH PLACE, EC3 * 272,505 sq ft multi let office building with ground floor retail * Total development costs of £162.9m + Total return of £38.6m, return on equity in excess of 200% @helicalpic | Helical plc | helical.co.uk 43
Slide 44: The Tootal Buildings, Manchester
Acquired March 2014 for £34m (£138 psf NIA). The Tootal Buildings are interlinked providing an NIA of 245,822 sq ft with shared car parking for 141 vehicles Phased asset management _ strategy. Comprehensive refurbishment of common parts and office space where vacant, including refurbishments to the
Slide 45: Fourways, Manchester
47,732 sq ft offices. 11,528 sq ft leisure / retail, currently 75% let Acquired July 2018 for £16.5m (£280 psf NIA). 5.3% NIY Off market acquisition of a Grade 2 listed, freehold office building in the Northern Quarter of Manchester We have reconfigured or refurbished a number of units, including a
Slide 46: 35 Dale Street, Manchester
56,124 sq ft multi let office building Acquired March 2015 for £7.4m (£140 psf NIA) Average rent at acquisition £12.00 psf, now £19.40 psf with headline rents of £24.00 psf achieved Comprehensive refurbishment of offices and common parts including new entrance, reception, onsite cafe, bike store and
Slide 47: Trinity, Manchester
TRINITY, MANCHESTER + 54,651 sq ft offices, 4,300 sq ft retail / restaurant * Acquired in May 2017 for £12.9m * £6.35m construction spend (£108 psf NIA) * Redevelopment of 58,951 sq ft building located between the traditional CBD and Spinningfields * Grade A refurbished office space behind a histori
Slide 48: Sustainability
SUSTAINABILITY BENCHMARK FTSE4Good we 3.9/5 91st Percentile FTSE4Good ar. =a GRESB % w 63/100 2 Star GE RESS JB. EPRA Sustainability Best Practice E P R A Bronze EUROPEAN PUBLIC REAL ESTATE ASSOCIATION MSCI ESG M S¢ | ah AA CDP Cc WecppP @helicalpic | Helical plc | helical.co.uk 48
Slide 49: Sustainability
SUSTAINABILITY COMPLETED SCHEMES BREEAM RATING The Bower - The Tower (office) Excellent Warehouse & Studio (office) Excellent 25 Charterhouse Square Excellent 90 Bartholomew Close Excellent One Bartholomew Excellent CURRENT SCHEMES Kaleidoscope 33 Charterhouse Street 55 Bartholomew PREVIOUS SCHEMES
Slide 50: EPRA Performance Measures
EPRA PERFORMANCE MEASURES At At 31 March 2020 31 March 2019 EPRA net assets £625.0m £583.1m EPRA NAV per share 51lp. 482p EPRA triple net assets per share A80p 465p EPRA net reinstatement value per share* 562p 529p EPRA net tangible assets per share* 524p A494p EPRA net disposal value per share* 480
Slide 51: See-Through Balance Sheet
SEE-THROUGH BALANCE SHEET 31 MARCH 2020 31 MARCH 2019 Group Joint Ventures Total NAV per share NAV per share £m £m £m p £m p Investment properties 836.9 76.8 913.7 816.6 Land and development stock 1.4 34.2 35.6 59.8 Property portfolio 838.3 111.0 949.3 876.4 Net debt (298.5) (268.6) Other net liabil
Slide 52: See-Through Income Statement
SEE-THROUGH INCOME STATEMENT 31 MARCH 2020 31 MARCH 2019 Group Joint Ventures Total £m £m £m £m Net rental income 27.8 0.7 28.5 25.2 Development property profit/(losses) 3.3 6.6 9.9 (4.4) 31.1 73 38.4 20.8 Administration expenditure (16.7) (0.6) (17.3) (17.2) Net finance costs (14.8) (0.8) (15.6) (1
Slide 53: Net Cash Flow Movements
NET CASH FLOW MOVEMENTS Cash generated from operations Acquisitions Capex Joint ventures Net disposal proceeds (Reduction)/increase in net borrowing Other cash flow movements Dividends paid Net (decrease)/increase in cash Cash at start of year Cash at end of year FORECAST CAPITAL EXPENDITURE E 50.0
Slide 54: 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 2020 2021 2021 2021 Portfolio fair value £949.3m £43.5m (£35.0m) ; Pro-forma Loan to Value 31.4% 3.0% (2.3%) Capex Remaining Budget? Spend? Forecast ates a
Slide 55: Portfolio Metrics (1)
PORTFOLIO METRICS (1) Valuation Change Valuation Including Change Fair Capital Vacancy March 2020 Sales and Excluding Sales Value Value psf Rate WAULT Purchases and Purchases Investment Portfolio £m % £ % Years % % - Completed, let and available to let 731.9 80.1 1,182 17.6 78 61 64 Total London 776
Slide 56: Portfolio Metrics (2)
PORTFOLIO METRICS (2) EPRA True Passing Contracted Change in Topped Up Equivalent Reversionary Rent Rent ERV ERV LfL NIY Yield Yield Investment Portfolio £m £m £m % % % % London Offices: - Completed, let and available to let 20.4 311 421 49 39 5.0 5.2 - Being redeveloped . . 85 . n/a 49 55 Total Lon
Slide 57: Investment Portfolio Key Statistics
INVESTMENT PORTFOLIO KEY STATISTICS TOTAL PORTFOLIO CONTRACTED RENT £M Total contracted rental change from sales and purchases (2.1) Rent lost at break/expiry (1.4) Rent reviews and uplifts on lease renewals 0.3 New lettings: - London 64 ~ Manchester 1.2 Total increase in the period from asset manag
Slide 58: Tenant Make-up
TENANT MAKE-UP Consumer services, 1% Consumer goods, aN | Tove 1% Law, 2% ™~s > Online retailing - Fashion, 13% Human Resources, 5%. ee Financial Products, 8% N Flexible offices, 11% IT Consultancy, 10% ___ Software and Computer Services, 13% Government/Charity, 6% Other, 1% Food & Beverage, xx! L A
Slide 59: Top Tenants
TOP 10 TENANTS RANK TENANT TENANT INDUSTRY CONTRACTED RENT, £M RENT ROLL 1 Farfetch Online retail 3D) 10.4% 2 WeWork Flexible offices 3.8 10.2% 3 Brilliant Basics Technology 3.2 8.5% 4 Pivotal Technology 2.0 5.3% 5 Anomaly Marketing 14 3.7% 6 CBS Media 1.0 2.8% 7 Allegis Recruitment 1.0 2.7% 8 Finab
Slide 60: 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
Slide 61: Helical Hanover Square
HELICAL 5 Hanover Square London WIS 1HQ 0207 629 O13 www.helical.co.uk @helicalplc reception@helical.co.uk @helicalple | Helical ple | helical.co.uk