REG - Helical PLC - Half-year Report
23/11/2021 07:00
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RNS Number : 1968T Helical PLC 23 November 2021
HELICAL PLC
("Helical" or the "Group" or the "Company")
Half Year Results for the Six Months to 30 September 2021
HELICAL, A SUSTAINABLE INVESTMENT
Gerald Kaye, Chief Executive, commented:
"The performance for the half year to 30 September 2021 is the result of a
decision taken five years ago to focus solely on the redevelopment,
refurbishment and repositioning of office buildings. That we are able to
announce such strong results, coming out of a global pandemic and when
uncertainties remain about the strength of the economic recovery and the
impact of inflationary pressures, is testimony to the quality of our portfolio
and the dedication and drive of our experienced management team.
"Helical is moving forward in all areas with corporate and property
sustainability at the forefront. We are making progress on our Pathway to Net
Zero and improving our sustainability benchmark ratings. Our property
portfolio, which is EPC A or B and highly rated under the BREEAM criteria,
provides superior wellness, technology and amenities, all contributing to
deliver best-in-class office space.
"As we anticipated, we are seeing increasing levels of bifurcation in both the
leasing and investment markets between the green buildings and the "brown"
buildings. Recent research from Knight Frank noted a significant rental
premium for BREEAM "Outstanding" and "Excellent" buildings and the investment
market is showing strong demand from investors seeking the most sustainable
properties.
"We are now focused on adding a pipeline of new opportunities to our portfolio
and are actively engaged in the market, identifying, appraising and bidding
for Central London assets. At the same time, we are maintaining our
discipline, ensuring that any new scheme will be accretive to our business and
continue our growth."
Strong Operational Performance
Delivery of 33 Charterhouse Street, EC1 on Track
· At 33 Charterhouse Street, EC1, the topping out ceremony was held on
28 September 2021 to mark the completion of the superstructure works. Work
continues to progress in line with the programme and practical completion is
targeted for September 2022.
Leasing Market Rebounding
· In London, we completed two new lettings at The Tower, EC1 and 55
Bartholomew, EC1, totalling 12,731 sq ft, in line with 31 March 2021 ERVs. At
The Warehouse, EC1 we have completed two rent reviews at an average of 2.1%
above 31 March 2021 ERVs and achieving an uplift of 18% on the previous
contracted rent. We have also completed three lease renewals at The Loom, with
average rents in line with 31 March 2021 ERVs. Since 30 September 2021, we
have let 9,268 sq ft across two units at 25 Charterhouse Square, EC1 at a 0.5%
premium to 31 March 2021 ERVs.
· In Manchester, we have let the 5,588 sq ft seventh floor at Trinity
at a rent of £34 psf, a 2% premium to 31 March 2021 ERV.
Improving Rent Collection
· As at 22 November 2021, we have collected 94.5% of the September
quarter rent (86.8% at 24 November 2020), helped by the reopening of our food
and beverage tenants, and expect to receive a further 2.6% via agreed payment
plans. Concessions have been granted on 0.9% and the remaining 2.0% is subject
to ongoing discussions.
· We have collected 93.7% of the March and June quarter rents, with a
further 0.6% to be collected under payment plans. Concessions have been
granted over 3.7% and the remaining 2.0% is subject to ongoing discussions.
Enhanced Sustainability Credentials
· In April, Helical launched "Designing for Net Zero", a guide to
assist our professional teams as they collaborate with us to reduce carbon in
our development projects, following on from our new Sustainability Strategy,
"Built for the Future", launched in 2020.
· We have improved our sustainability measures and ratings, with a
GRESB 4* Green Star rating and EPRA Sustainability BPR award of Gold.
· 96% of the space in our buildings has been recently developed or
refurbished with 99% of our investment portfolio, by value, having an A or B
EPC rating.
Financial Highlights
Earnings and Dividends
· IFRS profit before tax of £31.0m (2020: loss of £12.7m).
· See-through Total Property Return(1) of £44.9m (2020: £6.9m):
- Group's share(1) of net rental income of £14.1m (2020: £11.9m), up
18.5%.
- Development profits of £1.0m (2020: loss of £0.5m), after
provisions of £0.2m (2020: £0.3m).
- Net gain on sale and revaluation of Investment properties of £29.8m
(2020: loss of £4.5m).
· IFRS basic earnings per share of 18.2p (2020: loss of 8.9p).
· EPRA earnings per share(1) of 0.9p (2020: loss of 1.0p).
· Interim dividend proposed of 2.90p per share (2020: 2.70p), an
increase of 7.4%.
Balance Sheet
· Net asset value up 2.4% to £622.6m (31 March 2021: £608.2m).
· Total Accounting Return(1) on EPRA net tangible assets of 5.1% (2020:
-2.5%).
· EPRA net tangible asset value per share(1) up 3.4% to 551p (31 March
2021: 533p).
· EPRA net disposal value per share(1) up 2.3% to 496p (31 March 2021:
485p).
Financing
· Change in fair value of derivative financial instruments credit of
£4.6m (2020: charge of £5.3m).
· See-through loan to value(1) of 25.2% (31 March 2021: 22.6%).
· See-through net borrowings(1) of £227.1m (31 March 2021: £193.9m).
· Average maturity of the Group's share(1) of secured debt of 3.4 years
(31 March 2021: 3.2 years), increasing to 4.4 years on exercise of options to
extend current facilities and on a fully utilised basis.
· See-through average cost of secured facilities(1) of 3.6% (31 March
2021: 3.5%).
· Group's share(1) of cash and undrawn bank facilities of £336.5m (31
March 2021: £422.7m).
Portfolio Update
· IFRS property portfolio value of £761.3m (31 March 2021: £740.2m).
· 3.9% valuation increase, on a like-for-like basis(1), of our
see-through investment portfolio(1) of £888.9m (31 March 2021: £839.4m).
· Contracted rents of £37.6m (31 March 2021: £37.8m) compared to an
ERV(1) of £52.2m (31 March 2021: £52.1m).
· See-through portfolio WAULT(1) of 6.6 years (31 March 2021: 6.9
years).
· Vacancy rate increased marginally from 10.5% to 11.2%.
Interim Dividend
An interim dividend of 2.90 pence per share (2020: 2.70 pence per share) will
be paid to Shareholders as follows:
Ex-dividend date 2 December 2021
Record date 3 December 2021
Payable date 31 December 2021
For further information, please contact:
Helical plc 020 7629 0113
Gerald Kaye (Chief Executive)
Tim Murphy (Finance Director)
Address: 5 Hanover Square, London W1S 1HQ
Website: www.helical.co.uk (http://www.helical.co.uk)
Twitter: @helicalplc
FTI Consulting 020 3727 1000
Dido Laurimore/Richard Gotla/Andrew Davis
schelical@fticonsulting.com (mailto:schelical@fticonsulting.com)
Half Year Results Presentation
Helical will be holding a presentation for analysts and investors starting at
9am on Tuesday 23 November 2021 at the offices of FTI Consulting, 200
Aldersgate, Aldersgate Street, London, EC1A 4HD. If you would like to attend,
please contact FTI Consulting on 020 3727 1000, or email
schelical@fticonsulting.com (mailto:schelical@fticonsulting.com)
The presentation will be on the Company's website www.helical.co.uk
(http://www.helical.co.uk) , via a webcast and a conference call facility will
be available.
Conference Call: +44 (0)330 336 9434
Passcode: 9503131
Webcast Link:
https://webcasting.brrmedia.co.uk/broadcast/616028bf4e29f55a94191848
(https://webcasting.brrmedia.co.uk/broadcast/616028bf4e29f55a94191848)
(1 )See Glossary for definition of terms. The financial statements have been
prepared in accordance with International Accounting Standards (IAS) in
conformity with the Companies Act 2006. In common with usual and best practice
in our sector, alternative performance measures have also been provided to
supplement IFRS, some of which are based on the recommendations of the
European Public Real Estate Association ("EPRA"), with others designed to give
additional information about the Group's share of assets and liabilities,
income and expenses in subsidiaries and joint ventures ("See-Through").
Chief Executive's Statement
Overview
The performance for the half year to 30 September 2021 is the result of a
decision taken five years ago to focus solely on the redevelopment,
refurbishment and repositioning of office buildings. That we are able to
announce such strong results, coming out of a global pandemic and when
uncertainties remain about the strength of the economic recovery and the
impact of inflationary pressures, is testimony to the quality of our portfolio
and the dedication and drive of our experienced management team.
Helical is moving forward in all areas with corporate and property
sustainability at the forefront. We are making progress on our Pathway to Net
Zero and improving our sustainability benchmark ratings. Our property
portfolio, which is EPC A or B and highly rated under the BREEAM criteria,
provides superior wellness, technology and amenities, all contributing to
deliver best-in-class office space.
Sustainability
In April 2021, we launched Designing for Net Zero, a guide produced to aid our
professional teams as they collaborate with us to reduce carbon use in our
development projects, from the design and construction process through to
operation and occupation. We are now on course to announce our Pathway to Net
Zero by the end of the financial year.
As part of our commitment to sustainability reporting we measure our
performance against industry-wide benchmarks, and I am again pleased to be
able to report progress against these measures. During the period, we improved
our GRESB rating from 3* to 4* Green Star and our EPRA Sustainability BPR
Award from Silver to Gold.
At a portfolio level, 99% by value of our completed portfolio has an EPC
rating of A or B and each of our completed refurbished or redeveloped office
buildings has a BREEAM "Excellent" rating. Our 33 Charterhouse Street, EC1
office development, due for completion in September 2022, was awarded the UK's
first BREEAM 2018 New Construction "Outstanding" rating at the design stage in
2020.
Results for the Half Year
The profit before tax for the six months to 30 September 2021 was £31.0m
(2020: loss of £12.7m) with a see-through Total Property Return of £44.9m
(2020: £6.9m). See-through net rental income was £14.1m (2020: £11.9m)
while developments generated a see-through profit of £1.0m (2020: loss of
£0.5m). The see-through net gain on sale and revaluation of the investment
portfolio was £29.8m (2020: loss of £4.5m).
Total see-through net finance costs were £7.8m (2020: £7.9m). An increase in
expected future interest rates led to a £4.6m credit (2020: charge of £5.3m)
from the valuation of the Group's derivative financial instruments. Recurring
see-through administration costs were £4.9m (2020: £5.1m), with accruals for
performance related awards of £2.0m (2020: £0.3m) and with National
Insurance on these awards of £0.5m (2020: £0.1m).
A corporation tax charge of £nil (2020: £nil) has been recognised in the
Half Year Results. With an increase in the Group's deferred tax provision of
£8.8m (2020: credit of £2.0m), a total tax charge of £8.8m (2020: credit of
£2.0m) has been recognised.
The profit for the half year, after recognition of this tax charge, was
£22.2m (2020: loss of £10.8m). There was an IFRS basic earnings per share of
18.2p (2020: loss of 8.9p) and an EPRA earnings per share of 0.9p (2020: loss
of 1.0p).
On a like-for-like basis, the investment portfolio increased in value by 3.9%.
The see-through total portfolio value increased to £901.9m (31 March 2021:
£857.0m).
The portfolio was 88.8% let at 30 September 2021, generating contracted rents
of £37.6m (31 March 2021: £37.8m), at an average of £61 psf, growing to
£41.2m on the letting of currently vacant space, towards an ERV of £52.2m
(31 March 2021: £52.1m). The Group's contracted rent has a Weighted Average
Unexpired Lease Term ("WAULT") of 6.6 years.
The Total Accounting Return ("TAR"), being the growth in the net asset value
of the Group, plus dividends paid in the period, was 3.9% (2020: -2.0%). Based
on EPRA net tangible assets, the TAR was 5.1% (2020: -2.5%). EPRA net tangible
assets per share were up 3.4% to 551p (31 March 2021: 533p), with EPRA net
disposal value per share up 2.3% to 496p (31 March 2021: 485p).
Balance Sheet Strength and Liquidity
The Group has a significant level of liquidity with see-through cash and
unutilised bank facilities of £336.5m (31 March 2021: £423m) available to
fund capital works on its portfolio, service borrowings and deploy into future
acquisitions.
During the half year to 30 September 2021, the Group invested £16.2m in its
investment portfolio, primarily at 33 Charterhouse Street, EC1.
At 30 September 2021, the Group had £68.0m of cash deposits available to
deploy without restrictions and a further £71.3m of rent and sales receipts
collected in bank accounts available to service payments under loan
agreements, cash held at managing agents and cash held in joint venture.
Furthermore, the Group had £197.2m of loan facilities available to draw on,
plus £28.5m of uncharged property.
The see-through loan to value ratio ("LTV") increased to 25.2% at the half
year (31 March 2021: 22.6%) and our see-through net gearing, the ratio of net
borrowings to the net asset value of the Group, increased to 36.5% (31 March
2021: 31.9%) over the same period.
At the period end, the average debt maturity on secured loans, on a
see-through basis, was 3.4 years (31 March 2021: 3.2 years), increasing to 4.4
years on exercise of options to extend the Group's facilities and on a fully
utilised basis. The average cost of debt at 30 September 2021 was 3.6% (31
March 2021: 3.5%).
Dividends
Helical is a capital growth stock, seeking to maximise value by successfully
letting redeveloped, refurbished and repositioned property. Once stabilised,
these assets are either retained for their long-term income and reversionary
potential or sold to recycle equity into new schemes.
This recycling leads to fluctuations in our EPRA earnings per share, as the
calculation of these earnings excludes capital profits generated from the sale
and revaluation of assets. As such, both EPRA earnings and realised capital
profits are considered when determining the payment of dividends.
The Board has declared an interim dividend of 2.90p (2020: 2.70p), an increase
of 7.4%.
Outlook
As we anticipated, we are seeing increasing levels of bifurcation in both the
leasing and investment markets between the green buildings and the "brown"
buildings. Recent research from Knight Frank noted a significant rental
premium for BREEAM "Outstanding" and "Excellent" buildings and the investment
market is showing strong demand from investors seeking the most sustainable
properties.
We are now focused on adding a pipeline of new opportunities to our portfolio
and are actively engaged in the market, identifying, appraising and bidding
for Central London assets. At the same time, we are maintaining our
discipline, ensuring that any new scheme will be accretive to our business and
continue our growth.
Gerald Kaye
Chief Executive
23 November 2021
Sustainability
As governments and businesses digest the outcomes from the COP26 summit, it
has become clear that the time horizon to 2030 will prove to be pivotal for
them to deliver on the commitments they have made.
For commercial real estate, one of the greatest challenges being faced is the
future obsolescence of "brown" buildings and the associated costs of
retrofitting these assets to ensure compliance with future legislation. At
Helical, 96% by value of our offices have either been recently developed or
refurbished, with 99% of buildings holding an EPC rating of A or B.
In the next six months we will set out our Pathway to Net Zero carbon, which
will make a clear statement as to our ambitions and how these will be
achieved. We do not want to rely on the use of carbon offsetting, rather we
want to minimise our carbon impact by investing in better technologies,
championing best practice construction methods and using low carbon materials.
The development at 33 Charterhouse Street, EC1 has acted as a case study for
our guide "Designing for Net Zero", and we continue to challenge carbon
emissions and employ smart building technology at every stage of the project.
Through this rigorous process, we are on track to reduce operational carbon by
c. 43% and create an embodied carbon saving of 20%, compared to the current
RIBA benchmark. On its completion in September 2022, this building will be a
flagship sustainable asset, which is smart, amenity rich and focuses on health
and wellbeing.
In May 2021, Helical joined both the Better Buildings Partnership and the UK
Green Building Council. We believe that collaboration with our peers, sharing
knowledge and best practice, is critical to creating meaningful and long-term
change in our industry.
The Group has taken active steps to embed sustainability into every part of
the business. This commitment has been recognised in the continued improvement
of our benchmark results. In October 2021, we were pleased to receive a 4*
Green Star rating from GRESB with a score of 85/100, an improvement from 3* in
the prior year. We were also awarded a Gold EPRA Sustainability Best Practice
Recommendations certification, up from Silver in the previous year.
As we look forward to publishing our Pathway to Net Zero in the coming months,
we will also undertake a more detailed asset level resilience review to
establish the potential exposure we may face from rising temperatures.
Sustainability along with wellness, technology and enhanced amenities, are key
market drivers and we are now seeing the positive impact they have on
valuations and rents. We recognise that maintaining a focus on sustainability
across the business will be critical to delivering enhanced Shareholder
returns.
Helical's Property Portfolio - 30 September 2021
Our Market
Following the significant challenges of the past 18 months, the Central London
commercial property market has begun to demonstrate signs of a sustained
recovery, with noticeable increases in occupier and investor demand for
best-in-class buildings.
We continue to believe that, with our focus on high quality, sustainable and
technologically advanced buildings, we are best placed to take advantage of
this evolving market and that our newly developed or refurbished portfolio
will continue to outperform.
Why London?
We view the London commercial property market as the best source of capital
profits and believe that our experience and skills are best deployed in this
sector, which is rapidly evolving to respond to the demand for more
sustainable buildings.
Economic activity has remained resilient in the face of Brexit and Covid-19,
with TfL data showing tube journeys to the City stations having increased
fourfold since 1 April 2021. London remains a global economic centre that
attracts a diverse range of innovation and creativity-led businesses, whilst
continuing to see growth from traditional sectors, with financial, insurance
and professional services firms representing almost half of all take-up this
year.
The London market continues to attract significant inflows of global real
estate capital, with the UK ranking second to the US in 2021. As global
markets experience turbulence, the "safe-haven" reputation of the London
market should result in sustained significant inbound investment.
The London Market
The outlook for the Central London office market is increasingly positive,
with key indicators of occupational demand and investment activity continuing
to demonstrate growth.
From an occupational perspective, the successful vaccine roll out has led to a
sustained return of employees to the office. This is translating into
increased demand for new space within the market. CBRE has noted that space
that is "under offer" grew by 42% in Q3 2021 to 3.9m sq ft, which represents
the highest level the market has seen since Q3 2019. In particular, occupiers
are seeking to acquire the best available space to ensure they provide an
amenity rich, attractive working environment for their employees. This has
been demonstrated by 89% of the take-up in the first half of the year being
for Grade A space. Promisingly, the number of new requirements is continuing
to grow with Savills noting active requirements for 10.2m sq ft of assets
currently in the market.
Within the trend of increased take-up there continues to be a noticeable
difference between best-in-class and secondary space, with new build vacancy
standing at 1.6% compared to 8.0% for secondary stock. Of all vacant office
supply, 75% relates to second-hand space which has been driven by an increase
in tenant released space, albeit this trend appears to be slowing. We see this
rise in vacancy in secondary stock as an opportunity for Helical to apply its
skillset to redevelop or refurbish obsolete buildings into new sustainable
offices.
While the current global economic turbulence has seen an increase in material
prices and instability to supply chains, development activity within the
space-constrained Central London market has continued at pace and we expect
these macro challenges to be short-term. CBRE report that 10.2m sq ft of
office space is under construction and due to complete between 2022-2025.
Encouragingly, of this new space, 30% is already let or under offer. CBRE has
noted that the projected level of future completions is likely to result in an
under supply of c. 9m sq ft of high quality office space. It would therefore
suggest that the upward pressure on best-in-class office rents will be
sustained as we move forward.
Investment volumes continue to remain strong at £6.2bn, with double the
transaction volume recorded in the year to date when compared to the same
period last year. The continued demand to acquire Central London investment
opportunities is increasingly putting downward pressure on yields. CBRE has
noted that both City and West End yields have compressed by 25 bps.
Furthermore, investors' focus on buildings with the highest ESG credentials
and the continuation of a yield differential between London and key European
markets should drive further yield compression, even if there begins to be
upward pressure on interest rates.
Looking Forward
We continue to believe that the key trends we have identified of
sustainability, wellness, enhanced amenities and technology will be of upmost
importance to occupiers and investors within the Central London market.
Furthermore, these trends are increasingly being shown to be accretive to
value, with Knight Frank recently reporting a 12.3% rental premium for
achieving a BREEAM "Outstanding" rated building. We also believe that the gap
between prime and secondary property will continue to widen, which will
enhance the value of our existing portfolio and will provide significant
opportunity for us to apply our strategy of redeveloping, refurbishing and
repositioning properties that are no longer fit for purpose.
Property Overview
Helical's portfolio is comprised of income-producing multi-let offices, office
refurbishments and developments and a mixed use commercial/residential scheme.
At 30 September 2021, London represented 97% and Manchester 3% of the
Investment property portfolio. Our strategy is to continue to increase our
London holdings, focusing on areas where we see strong tenant demand and
growth potential, such as the City and the "Tech Belt" that runs from
King's Cross through Old Street and Shoreditch to Whitechapel.
Kaleidoscope, EC1
In March, we completed the letting of the whole of Kaleidoscope, our 88,581 sq
ft office building located directly above the Farringdon East Elizabeth Line
station, to TikTok Information Technologies UK Limited on a 15 year lease term
at an annual rent of £7.6m. TikTok has commenced fitting out the building and
is expected to be in occupation in Spring 2022.
33 Charterhouse Street, EC1
The development of our 205,369 sq ft office building, in 50:50 joint venture
with AshbyCapital, is progressing on time and on budget, with practical
completion due at the end of September 2022. The building topped out on 28
September 2021, marking the completion of the superstructure works, and work
is continuing at pace on the installation of external cladding and internal
services.
The building is situated just 100m from Farringdon Station and directly
opposite the proposed new Museum of London, offering future tenants excellent
connectivity and amenity. Once completed it will provide a best-in-class
office development meeting the highest ESG credentials, as evidenced by its
BREEAM 2018 New Construction "Outstanding" rating. It will also provide a
technologically pioneering environment for occupiers with smart building
systems and a fully integrated building management app for tenants.
The Bower, EC1
The Bower is a landmark estate comprising 312,573 sq ft of innovative, high
quality office space along with 21,059 sq ft of restaurant and retail space.
The estate is located adjacent to the Old Street roundabout, which is
currently undergoing significant remodelling and will provide extensive
additional public realm when completed in Autumn 2022.
The Warehouse and The Studio
The Warehouse comprises 122,858 sq ft of offices and The Studio 18,283 sq ft
of offices, both fully let, with 10,298 sq ft of retail space across the two
buildings. In the period, we completed a lease renewal with Stripe at the
Warehouse, extending the lease by three years. We have also completed a
further two rent reviews at an average of 2.1% above 31 March 2021 ERVs and
achieving an uplift of 18% on the previous contracted rent, and are in
advanced discussions with the remaining tenants to determine outstanding rent
reviews.
The retail operators are open and trading following the end of Government
restrictions, adding valuable amenities to the estate. The recently vacated
retail unit in The Studio is currently being marketed.
The Tower
The Tower, completed in August 2018, offers 171,432 sq ft of office space with
a contemporary façade and innovatively designed interconnecting floors, along
with 10,761 sq ft of retail space, across two units, let to food and beverage
occupiers, Serata Hall and Wagamama.
In the period we have let the 17th floor, previously let to Finablr, to
Verkada on a five year lease for a rent which is in line with the 31 March
2021 ERV. Infosys, who occupy four floors at The Tower, have exercised their
break on the 12th floor, effective on 14 October 2021, and we are currently
marketing this space.
Barts Square, EC1
In a joint venture with The Baupost Group LLC, Helical has redeveloped this
3.2 acre freehold site. The completed development now comprises 236
residential apartments, three office buildings: One Bartholomew (sold in
September 2015), 90 Bartholomew Close (sold in April 2020) and 55 Bartholomew,
and eight retail units, as well as extensive new public realm.
Residential/Retail
The Barts Square residential development has recently been recognised for its
outstanding design and sympathetic approach to its surroundings by winning a
Housing Design Award, the only awards promoted by all five major professional
institutions.
We have completed the sale of a further six apartments in the period taking
the total number of sold apartments across both phases to 214 at 30 September
2021. One apartment remains available in Phase One and 18 apartments are
available in Phase Two, following the completion of three further sales since
the period end.
The retail space in Phase One is fully let to Stem + Glory and Halfcup. One of
the Phase Two retail units is let to BEERS London, an art gallery, and the
remaining five retail units are currently being marketed. The landscaping of
the new public square is complete, offering extensive public amenity.
55 Bartholomew
At 55 Bartholomew Close, EC1 we have completed the letting of the fourth floor
to Push Gaming on a managed basis at a rental level above 31 March 2021 ERV,
representing a new offering to tenants from the Group.
The Loom, E1
At this 108,612 sq ft former Victorian wool warehouse, we have completed the
renewal of three leases, totalling 14,258 sq ft, at an average rent of £54
psf. Following these renewals, the Loom is 75% let with 26,949 sq ft across
ten units available to let. We continue to undertake asset management
activities to reconfigure units as they become available, ensuring we can
offer larger floorplates and offering "plug and play" space to complement the
existing variety of units.
25 Charterhouse Square, EC1
25 Charterhouse Square comprises 42,921 sq ft of offices adjacent to the new
Farringdon East Elizabeth Line station, overlooking the historic Charterhouse
Square.
Following the exercise of a break option by the previous tenant, we have relet
the first floor and southern ground floor unit on terms ahead of the 31 March
2021 ERVs, leaving the northern ground floor unit available to let. Peakon has
exercised its break on the third floor effective on 23 May 2022 and this will
give us the opportunity to relet the space at an improved rent. The remaining
floors are currently let to Anomaly and Hudson Sandler.
The Powerhouse, W4
The Powerhouse is a listed building, providing 21,268 sq ft of office and
recording studio space, on Chiswick High Road and is fully let on a long lease
to Metropolis Music Group. We are undertaking capital works on behalf of the
tenants to improve the roof, which are due to complete in Summer 2022.
Trinity, Manchester
In the period we have completed the letting of the 5,588 sq ft seventh floor
at Trinity, Manchester to AEW Architects at a rent of £34 psf. The letting
represents a 2% premium to 31 March 2021 ERV. Following this letting the
58,760 sq ft building is now 55% let, with Kennedys Law, Saffery Champness and
Tosca Debt Capital occupying the office space.
Portfolio Analytics
See-Through Total Portfolio by Fair Value
Investment % Development % Total
£m £m £m %
London Offices
- Completed, let and available to let 767.1 86.3 - - 767.1 85.0
- Being redeveloped 94.0 10.6 - - 94.0 10.4
London Residential - - 12.4 95.0 12.4 1.4
Total London 861.1 96.9 12.4 95.0 873.5 96.8
Manchester Offices
- Completed, let and available to let 27.7 3.1 - - 27.7 3.1
Total Manchester 27.7 3.1 - - 27.7 3.1
Total Core 888.8 100.0 12.4 95.0 901.2 99.9
Other 0.1 0.0 0.6 5.0 0.7 0.1
Total Non-Core Portfolio 0.1 0.0 0.6 5.0 0.7 0.1
Total 888.9 100.0 13.0 100.0 901.9 100.0
See-Through Land and Development Portfolio
Book value Fair value Surplus Fair value
£m £m £m %
London Residential 12.4 12.4 0.0 95.0
Land 0.0 0.6 0.6 5.0
Total 12.4 13.0 0.6 100.0
Capital Expenditure
We have a committed and planned development and refurbishment programme.
Property Capex Remaining spend New space Total completed Completion
space
date
budget (Helical share) sq ft
sq ft
(Helical share) £m
£m
Investment - committed
- 33 Charterhouse Street, London EC1 65.9 30.9 205,369 205,369 September 2022
Development - committed
- Barts Square, London EC1 - Phase One 69.9 0.1 127,364 127,364 Completed
- Barts Square, London EC1 - Phase Three 44.3 0.8 89,353 89,353 Completed
Asset Management
Asset management is a critical component in driving Helical's performance.
Through having well considered business plans and maximising the combined
skills of our management team, we are able to create value in our assets.
Fair Passing % Contracted rent % ERV % ERV change
Investment portfolio value rent £m £m like-for-like
weighting £m %
%
London Offices
- Completed, let and available to let 86.3 26.9 97.8 36.5 97.1 41.7 79.9 0.2
- Being redeveloped 10.6 - 0.0 - 0.0 8.6 16.5 0.0
Total London 96.9 26.9 97.8 36.5 97.1 50.3 96.4 0.2
Manchester Offices
- Completed, let and available to let 3.1 0.6 2.2 1.0 2.7 1.8 3.4 0.0
Total Manchester 3.1 0.6 2.2 1.0 2.7 1.8 3.4 0.0
Other 0.0 0.0 0.0 0.1 0.2 0.1 0.2 0.0
Total 100.0 27.5 100.0 37.6 100.0 52.2 100.0 0.1
See-through
total portfolio contracted rent
£m
Rent lost at break/expiry - Covid related (0.6)
Rent lost at break/expiry - Non-Covid related (1.0)
Rent reviews and uplifts on lease renewals 0.2
New lettings - London 1.0
New lettings - Manchester 0.2
Total decrease in the period from asset management activities (0.2)
Total contracted rental change from sales and purchases 0.0
Net decrease in contracted rents in the period (0.2)
Investment Portfolio
Valuation Movements
Valuation change Investment portfolio Investment portfolio
% weighting weighting
30 September 2021 31 March 2021
% %
London Offices
- Completed, let and available to let 3.1 86.3 88.5
- Being redeveloped 11.6 10.6 8.2
Total London 4.0 96.9 96.7
Manchester Offices
- Completed, let and available to let 1.2 3.1 3.3
Total Manchester 1.2 3.1 3.3
Total 3.9 100.0 100.0
Portfolio Yields
EPRA topped EPRA topped Reversionary Reversionary True equivalent yield True equivalent yield
up NIY up NIY yield yield 30 September 31 March
30 September 31 March 30 September 31 March 2021 2021
2021 2021 2021 2021 % %
% % % %
London Offices
- Completed, let and available to let 4.4 4.5 4.9 5.1 4.9 5.0
- Being redeveloped n/a n/a 5.3 5.6 4.6 4.9
Total London 4.4 4.5 5.0 5.3 4.8 4.9
Manchester Offices
- Completed, let and available to let 3.3 2.4 5.9 5.9 5.7 5.7
Total Manchester 3.3 2.4 5.9 5.9 5.7 5.7
Total 4.4 4.5 5.0 5.3 4.8 5.0
See-through Capital Values, Vacancy Rates and Unexpired Lease Terms
Capital value psf Capital value psf Vacancy rate Vacancy rate WAULT WAULT
30 September 31 March 30 September 31 March 30 September 2021 31 March 2021
2021 2021 2021 2021 Years Years
£ £ % %
London Offices
- Completed, let and available to let 1,260 1,215 8.0 5.8 6.6 6.9
- Being redeveloped 915 674 n/a n/a n/a n/a
Total London 1,174 1,081 8.0 5.8 6.6 6.9
Manchester Offices
- Completed, let and available to let 471 465 44.6 54.1 6.9 8.4
Total Manchester 471 465 44.6 54.1 6.9 8.4
Total 1,128 1,040 11.2 10.5 6.6 6.9
See-through Lease Expiries or Tenant Break Options
Half Year to Year to Year to Year to Year to 2026
2022 2023 2024 2025 2026 onward
% of rent roll 4.9 12.8 12.0 3.3 1.0 66.0
Number of leases 14 17 13 5 4 36
Average rent per lease (£) 130,427 282,514 345,794 248,270 97,478 684,580
Top 15 Tenants
We have a strong rental income stream and a diverse tenant base. The top 15
tenants account for 80.3% of the total rent roll.
Tenant Tenant industry Contracted rent Rent roll
Rank £m %
1 TikTok Technology 7.6 20.3
2 Farfetch Online retail 3.9 10.5
3 WeWork Flexible offices 3.8 10.2
4 Infosys Technology 3.2 8.5
5 VMware Technology 2.0 5.3
6 Anomaly Marketing 1.4 3.7
7 Denstu Media 1.1 2.8
8 CBS Media 1.0 2.8
9 Allegis Recruitment 1.0 2.7
10 Stripe FinTech 1.0 2.6
11 Verkada Technology 1.0 2.6
12 Incubeta Marketing 0.9 2.5
13 Openpayd FinTech 0.9 2.3
14 Snowflake Technology 0.8 2.1
15 Hey Habito FinTech 0.5 1.4
Total 30.1 80.3
Letting Activity - New Leases
Area Contracted rent Rent Change to Lease term to expiry
sq ft (Helical's share) £ psf 31 March 2021 ERV (exc Plug and Play and managed lettings) Years
£ %
Investment Properties
London Offices
- The Tower, EC1 11,327 962,965 85.02 -0.2 5.00
- 55 Bartholomew, EC1 1,404 82,062 -(1) -(1) 3.00
Total London 12,731 1,045,027 85.02 -0.2 4.84
Manchester Offices
- Trinity 5,588 193,492 34.63 1.8 10.00
Total Manchester 5,588 193,492 34.63 1.8 10.00
Total 18,319 1,238,519 68.37 0.1 5.65
(1) Let on a managed basis at a 6.8% premium to the comparable 31 March 2021
net effective rent.
London Portfolio - Investment Properties
Property Description Area sq ft Vacancy rate at Vacancy rate at 31 March 2021
(NIA) 30 September 2021 %
%
Completed, let and available to let
The Warehouse and Studio, The Bower EC1 Multi-let office building 151,439 0.0 0.0
The Tower, The Bower EC1 Multi-let office building 182,193 0.0 0.0
The Loom, E1 Multi-let office building 108,612 24.8 14.8
Kaleidoscope, EC1 Single-let office building 88,581 0.0 0.0
25 Charterhouse Square, EC1 Multi-let office building 42,921 26.0 26.0
55 Bartholomew, EC1 Multi-let office building 10,976 54.4 67.2
The Powerhouse, W4 Single-let recording studios/office building 21,268 0.0 0.0
605,990 8.0 5.8
Being redeveloped
33 Charterhouse Street, EC1 Office development 205,369 n/a n/a
811,359 n/a n/a
London Portfolio - Development Properties
Property Description Total apartments Unsold Unsold apartments at 31 March 2021
apartments at
30 September 2021
Barts Square, EC1 Residential apartments and 8 retail units 236 22 28
Manchester Offices
Property Description Area sq ft Vacancy rate at Vacancy rate at 31 March 2021
(NIA) 30 September 2021 %
%
Trinity Multi-let office building 58,760 44.6 54.1
Financial Review
IFRS Performance EPRA Performance
Profit Before Tax EPRA profit
£31.0m (2020: loss of £12.7m)
£1.1m (2020: loss of £1.2m)
EPS EPRA EPS
18.2p (2020: loss of 8.9p)
0.9p (2020: loss of 1.0p)
Diluted NAV Per Share EPRA NTA Per Share
502p (31 March 2021: 492p)
551p (31 March 2021: 533p)
Total Accounting Return Total Accounting Return on EPRA NTA
3.9% (2020: -2.0%) 5.1% (2020: -2.5%)
Overview
The significant increase in the valuation of the Group's Investment properties
and strong rental collection levels are a testament to the quality of the
Group's portfolio and reflect an increased confidence in the London office
market.
The anticipated interest rate rises have impacted the value of our derivative
financial instruments, resulting in a gain of £4.6m (2020: deficit of
£5.3m).
With cash and undrawn bank facilities of £336.5m and an LTV of 25.2%, the
Group has significant firepower to continue to develop its assets, service its
borrowings and deploy into new opportunities.
Results for the Half Year
The see-through results for the period to 30 September 2021 include net rental
income of £14.1m, a net gain on sale and revaluation of the investment
portfolio of £29.8m and development profits of £1.0m, leading to a Total
Property Return of £44.9m (2020: £6.9m). Total administration costs of
£7.4m (2020: £5.5m) and net finance costs of £7.8m (2020: £7.9m) resulted
in an IFRS pre-tax profit of £31.0m (2020: loss of £12.7m).
The post tax profit for the period was £22.2m (2020: loss of £10.8m), after
deduction of the tax charge of £8.8m (2020: credit of £1.9m). EPRA net
tangible asset value per share increased by 3.4% to 551p (31 March 2021:
533p).
The interim dividend, payable on 31 December 2021, will be 2.90p per share
(2020: 2.70p), an increase of 7.4%.
The Group's real estate portfolio, including its share of assets held in joint
ventures, increased to £901.9m (31 March 2021: £857.0m) primarily as a
result of net revaluation gains on the investment portfolio and capital
expenditure at 33 Charterhouse Street, EC1.
Capital expenditure on the development of 33 Charterhouse Street, EC1 resulted
in an increase in the Group's see-through loan to value to 25.2% (31 March
2021: 22.6%). The Group's weighted average cost of debt was 3.6% (31 March
2021: 3.5%) and the weighted average debt maturity was 3.4 years (31 March
2021: 3.2 years). The average maturity of the facilities would increase to 4.3
years on exercise of the available extension options, on a fully utilised
basis.
At 30 September 2021, the Group had unutilised bank facilities of £197.2m and
cash of £139.3m on a see-through basis. These are primarily available to fund
the development of 33 Charterhouse Street, EC1 and future property
acquisitions.
Total Property Return
We calculate our Total Property Return to enable us to assess the aggregate of
income and capital profits made each year from our property activities. Our
business is primarily aimed at producing surpluses in the value of our assets
through asset management and development, with the income side of the business
seeking to cover our annual administration and finance costs.
Half Year to Half Year to
2021 2020
£m £m
Total Property Return 44.9 6.9
See-Through Total Accounting Return
Total Accounting Return is the growth in the net asset value of the Group plus
dividends paid in the reporting period, expressed as a percentage of the net
asset value at the beginning of the period. The metric measures the growth in
Shareholders' Funds each period and is expressed as an absolute measure.
Half Year to Half Year to
2021 2020
% %
Total Accounting Return on IFRS net assets 3.9 (2.0)
Total Accounting Return on EPRA net tangible assets is the growth in the EPRA
net tangible asset value of the Group plus dividends paid in the period,
expressed as a percentage of EPRA net tangible asset value at the beginning of
the period.
Half Year to Half Year to
2021 2020
% %
Total Accounting Return on EPRA net tangible assets 5.1 (2.5)
Earnings Per Share
The IFRS earnings per share improved from a loss per share of 8.9p last half
year to an earnings per share of 18.2p and are based on the after tax earnings
attributable to ordinary Shareholders divided by the weighted average number
of shares in issue during the period.
On an EPRA basis, the earnings per share were 0.9p compared to a loss per
share of 1.0p in 2020, reflecting the Group's share of net rental income of
£14.1m (2020: £11.9m) and development profits of £1.0m (2020: losses of
£0.5m) but excluding gains on sale and revaluation of Investment properties
of £29.8m (2020: loss of £4.5m).
Net Asset Value
IFRS diluted net asset value per share increased by 2.0% to 502p per share (31
March 2021: 492p) and is a measure of Shareholders' Funds divided by the
number of shares in issue at the period end, adjusted to allow for the effect
of all dilutive share awards.
EPRA net tangible asset value per share increased by 3.4% to 551p per share
(31 March 2021: 533p). This movement arose principally from a total
comprehensive income (retained profits) of £22.2m (2020: expense of £10.8m),
less £9.0m of dividends (2020: £7.3m).
EPRA net disposal value per share increased by 2.3% to 496p per share (31
March 2021: 485p).
Income Statement
Rental Income and Property Overheads
Gross rental income for the Group in respect of wholly owned properties
increased to £15.7m (2020: £13.4m), mainly reflecting the letting of
Kaleidoscope, EC1 in March 2021, whilst gross rents remained at £0.1m (2020:
£0.1m) in the joint ventures. Property overheads in respect of wholly owned
assets and in respect of those assets in joint ventures increased in line with
rents at £1.8m (2020: £1.6m). Overall, see-through net rents increased by
18.5% to £14.1m (2020: £11.9m).
Included within gross rental income is £3.1m (30 September 2020: reduction of
£0.6m, 31 March 2021: reduction of £0.4m) of accrued income for rent free
periods.
The table below demonstrates the movement of the accrued income balance for
rent free periods granted and the respective rental income adjustment over the
four years to 31 March 2025, based on the tenant leases as at 30 September
2021. The actual adjustment will vary depending on lease events such as new
lettings and early terminations and future acquisitions or disposals.
Accrued income Adjustment to rental income
£000 £000
Year to 31 March 2022 22,969 5,536
Year to 31 March 2023 26,374 3,405
Year to 31 March 2024 22,688 (3,686)
Year to 31 March 2025 19,661 (3,027)
Rent Collection
March - September 2021
quarters
%
Rent collected to date 93.9
Rent under discussion 2.8
Rent concessions 3.3
At 22 November 2021, the Group had collected 93.9% of all rent contracted and
payable for the March, June and September 2021 quarters.
Development Profits
In the period, from our role as development manager at 33 Charterhouse Street,
EC1, we recognised £0.4m of fees. Additional fees of £0.1m were recognised
for carrying out accounting and corporate services at Barts Square, EC1 and 33
Charterhouse Street, EC1.
Profit on the sale of a retail site at Kingswinford of £0.8m was recognised
as well as a write back of a provision made in previous periods on Cortonwood
Retail Park, completed in 2017, of £0.2m. These profits, offset by other
costs of £0.5m, contributed to a net development profit in the Group of
£1.0m (2020: £0.1m).
Share of Results of Joint Ventures
The revaluation of our investment assets held in joint ventures generated a
surplus of £10.0m (2020: £2.0m). A small loss of £0.1m (2020: £0.5m) was
recognised in respect of our Barts Square, London EC1 residential development
as a result of marketing and void costs.
Finance, administration and other sundry items added a further £0.5m (2020:
£0.3m) of costs and after a tax charge of £3.2m (2020: £0.8m), there was a
net profit from our joint ventures of £6.2m (2020: loss of £1.0m).
Gain on Sale and Revaluation of Investment Properties
The valuation of our investment portfolio, on a see-through basis, continued
to reflect the benefit of our letting and development activities where we
generated a see-through valuation surplus of £29.9m (2020: deficit of
£4.0m).
Administrative Expenses
Administration costs in the Group, before performance related awards, reduced
from £4.8m to £4.7m.
Performance related share awards and bonus payments, including National
Insurance costs, increased to £2.4m (2020: £0.4m). Of this amount, £1.1m
(2020: £0.3m), being the charge for share awards under the Performance Share
Plan, is expensed through the Income Statement but added back to Shareholders'
Funds through the Statement of Changes in Equity.
2021 2020
£000
£000
Administrative expenses (excluding performance related awards) 4,712 4,803
Performance related awards, including NIC 2,430 412
Group 7,142 5,215
In joint ventures 230 292
Total 7,372 5,507
Finance Costs and Derivative Financial Instruments
Total finance costs, including in joint ventures, fell marginally during the
period to £7.8m (2020: £7.9m).
2021 2020
£000
£000
Interest payable on secured bank loans - subsidiaries 5,212 5,489
- joint ventures 1,080 547
Amortisation of refinancing costs - subsidiaries 519 555
Cancellation of loans - subsidiaries 719 -
Sundry interest and bank charges - subsidiaries 1,085 1,192
- joint ventures 107 94
Interest capitalised - joint ventures (919) -
Total 7,803 7,877
The movement upwards in medium and long-term interest rate projections during
the period contributed to a credit of £4.6m (2020: charge of £5.3m) on the
mark-to-market valuation of the derivative financial instruments.
Taxation
Helical pays corporation tax on its UK sourced net rental income, trading and
development profits and realised chargeable gains, after offsetting
administration and finance costs.
The current tax charge for the period was £nil (2020: £nil). Included in the
deferred tax charge of £8.8m (2020: credit of £2.0m) was £3.4m, reflecting
the impact of the increase in the UK corporation tax rate from 19% to 25% in
April 2023.
Dividends
The Board has declared an interim dividend for the period of 2.90p (2020:
2.70p), an increase of 7.4%.
Balance Sheet
Shareholders' Funds
Shareholders' Funds at 1 April 2021 were £608.2m. The Group's results for the
period added £22.2m (2020: expense of £10.8m), net of tax, representing the
total comprehensive income for the year. Movements in reserves arising from
the Group's share schemes increased funds by £1.2m. The Company paid
dividends to Shareholders during the period of £9.0m. The net increase in
Shareholders' Funds from Group activities during the period was £14.4m to
£622.6m.
Investment Portfolio
Wholly In joint venture See-through Head leases capitalised Lease incentives Book
owned £000 £000 £000 £000 value
£000
£000
Valuation at 31 March 2021 756,875 82,516 839,391 6,567 (18,934) 827,024
Capital expenditure - wholly owned 1,271 - 1,271 (7) - 1,264
- joint ventures - 14,975 14,975 (14) - 14,961
Letting costs amortised - wholly owned (109) - (109) - - (109)
- joint ventures - (7) (7) - - (7)
Revaluation surplus - wholly owned 23,388 - 23,388 - (3,482) 19,906
- joint ventures - 9,993 9,993 - (32) 9,961
Valuation at 30 September 2021 781,425 107,477 888,902 6,546 (22,448) 873,000
The Group spent £16.2m on capital works across the investment portfolio,
mainly at 33 Charterhouse Street, EC1 (£15.0m), Kaleidoscope, EC1 (£0.5m),
The Loom, EC1 (£0.3m) and 25 Charterhouse Square, EC1 (£0.2m).
Revaluation gains added £33.4m to increase the see-through fair value of the
portfolio, before lease incentives, to £888.9m (31 March 2021: £839.4m). The
accounting for head leases and lease incentives resulted in a book value of
the see-through investment portfolio of £873.0m (31 March 2021: £827.0m).
Debt and Financial Risk
In total, the see-through outstanding debt at 30 September 2021 of £371.8m
(31 March 2021: £362.2m) had a weighted average interest cost of 3.6% (31
March 2021: 3.5%) and a weighted average debt maturity of 3.4 years (31 March
2021: 3.2 years). The average maturity of the facilities would increase to 4.3
years following exercise of the one-year extension of the Group's £400m
Revolving Credit Facility, and the one-year extension of the joint venture
development loan, on a fully utilised basis.
Debt Profile at 30 September 2021 - Including Commitment Fees but Excluding
the Amortisation of Arrangement Fees
Total Total Available facility Weighted average interest Average maturity of facilities Average maturity including extensions*
facility utilised £000s rate Years Years
£000s £000s %
Investment facilities 480,750 340,750 140,000 3.4 3.5 4.5
Total wholly owned 480,750 340,750 140,000 3.4 3.5 4.5
In joint ventures 78,245 31,008 47,237 5.8 2.1 3.4
Total secured debt 558,995 371,758 187,237 3.6 3.4 4.4
Working capital 10,000 - 10,000 - - -
Total unsecured debt 10,000 - 10,000 - - -
Total debt 568,995 371,758 197,237 3.6 3.4 4.3
* Calculated on a fully utilised basis and assuming the exercise of the
one-year extension of the Revolving Credit Facility and the one-year extension
option of the joint venture development loan.
Secured Debt
The Group arranges its secured investment and development facilities to suit
its business needs as follows:
- Investment Facilities
We have a £400m Revolving Credit Facility that enables the Group to acquire,
refurbish, reposition and hold significant parts of our investment portfolio
with the remaining investment assets held in £81m of term loan secured
facilities. The value of the Group's properties secured in these facilities at
30 September 2021 was £754m (31 March 2021: £729m) with a corresponding loan
to value of 45.2% (31 March 2021: 46.8%). The average maturity of the Group's
investment facilities at 30 September 2021 was 3.5 years (31 March 2021: 3.3
years), increasing to 4.5 years on a fully utilised basis and following the
one-year extension of the Revolving Credit Facility. The weighted average
interest rate was 3.4% (31 March 2021: 3.3%). The marginal cost of fully
utilising the undrawn Revolving Credit Facility was 1.6% (31 March 2021:
1.5%).
- Joint Venture Facilities
We hold a number of investment and development properties in joint venture
with third parties and include in our reported figures our share, in
proportion to our economic interest, of the debt associated with each asset.
The average maturity of the Group's share of bank facilities in joint ventures
at 30 September 2021 was 2.1 years (31 March 2021: 1.9 years) with a weighted
average interest rate of 5.8% (31 March 2021: 6.5%). The average interest
rate will fall as the 33 Charterhouse Street, EC1 development facility is
drawn down and would be 4.95% on a fully utilised basis, reducing to 2.25%
once the building is complete and let.
Unsecured Debt
The Group's unsecured debt is £nil (31 March 2021: £nil).
Cash and Cash Flow
At 30 September 2021, the Group had £336.5m (31 March 2021: £423m) of cash
and agreed, undrawn, committed bank facilities including its share in joint
ventures, as well as £28.5m (31 March 2021: £28.1m) of uncharged property on
which it could borrow funds.
Net Borrowings and Gearing
Total gross borrowings of the Group, including in joint ventures, have
increased from £362.2m to £371.8m during the period to 30 September 2021.
After deducting cash balances of £139.3m (31 March 2021: £162.2m) and
unamortised refinancing costs of £5.4m (31 March 2021: £6.1m), net
borrowings increased from £193.9m to £227.1m. The see-through gearing of the
Group, including in joint ventures, increased from 31.9% to 36.5%.
30 September 31 March
2021 2021
See-through gross borrowings £371.8m £362.2m
See-through cash balances £139.3m £162.2m
Unamortised refinancing costs £5.4m £6.1m
See-through net borrowings £227.1m £193.9m
Shareholders' funds £622.6m £608.2m
See-through gearing - IFRS net asset value 36.5% 31.9%
Hedging
At 30 September 2021, the Group had £340.8m (31 March 2021: £280.8m) of
fixed rate debt and borrowings protected by interest rate swaps, with an
average effective interest rate of 3.1% (31 March 2021: 3.1%) and average
maturity of 3.7 years. In addition, the Group had £195m of interest rate caps
at an average rate of 1.75% (31 March 2021: £240m at 1.75%) and with an
average maturity of 2.0 years. In our joint ventures, the Group's share of
fixed rate debt was £22.7m (31 March 2021: £9.4m) with an effective rate of
6.8% and £8.3m (31 March 2021: £11.6m) of floating rate debt with an
effective rate of 3.1% (31 March 2021: 3.1%), with an interest rate cap set at
1.5% plus margin on £35.3m (31 March 2021: £35.3m at 1.5%) and maturing in
0.1 years.
30 September Effective interest rate 31 March Effective interest rate
2021 % 2021 %
£m £m
Fixed rate debt
- Secured borrowings 340.8 3.1 280.8 3.1
Total 340.8 3.1 280.8 3.1
Floating rate debt
- Secured - - 60.4 4.2(1)
Total 340.8 3.4 341.2 3.3
In joint ventures
- Fixed rate 22.7 6.8(2) 9.4 10.7(2)
- Floating rate 8.3 3.1 11.6 3.1
Total borrowings 371.8 3.6 362.2 3.5
(1) This includes commitment fees on undrawn facilities. Excluding these would
reduce the effective rate to 1.9%.
(2) This includes commitment fees on undrawn facilities. Excluding these would
reduce the effective rate to 4.95% (31 March 2021: 4.95%).
Tim Murphy
Finance Director
23 November 2021
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge:
a) The condensed unaudited consolidated financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting;
b) The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events and their
impact during the first six months and description of principal risks and
uncertainties for the remaining six months of the year); and
c) The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
Balances with related parties at 30 September 2021, 30 September 2020 and 31
March 2021 are disclosed in Note 23.
A list of current Directors is maintained at 5 Hanover Square, London, W1S 1HQ
and at www.helical.co.uk.
The half year statement was approved by the Board on 23 November 2021 and is
available from the Company's registered office at 5 Hanover Square, London,
W1S 1HQ and on the Company's website at www.helical.co.uk
(http://www.helical.co.uk) .
On behalf of the Board
Tim Murphy
Finance Director
23 November 2021
Independent Review Report to the Members of Helical plc
Introduction
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 30
September 2021 which comprises the Unaudited Consolidated Income Statement,
Unaudited Consolidated Statement of Comprehensive Income, Unaudited
Consolidated Balance Sheet, Unaudited Consolidated Cash Flow Statement and
Unaudited Consolidated Statement of Changes in Equity, and related Notes 1 to
28. We have read the other information contained in the half-yearly financial
report and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the condensed set of
financial statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the Directors. The Directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
As disclosed in Note 1, the annual financial statements of the Group are
prepared in accordance with IFRSs as adopted by the United Kingdom. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with International Accounting Standard
34 Interim Financial Reporting as adopted by the United Kingdom.
Our Responsibility
Our responsibility is to express to the Company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review.
Scope of Review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Financial
Reporting Council for use in the United Kingdom. A review of interim financial
information consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and consequently does
not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 September 2021 is not prepared,
in all material respects, in accordance with International Accounting Standard
34 as adopted by the United Kingdom and the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
Use of Our Report
This report is made solely to the Company in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of Interim
Financial Information Performed by the Independent Auditor of the Entity
issued by the Financial Reporting Council. Our work has been undertaken so
that we might state to the Company those matters we are required to state to
it in an independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone
other than the Company, for our review work, for this report, or for the
conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
23 November 2021
Unaudited Consolidated Income Statement
For the Half Year to 30 September 2021
Notes Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Revenue 3 25,099 19,320 38,596
Cost of sales 3 (10,041) (7,318) (12,987)
Net property income 4 15,058 12,002 25,609
Share of results of joint ventures 12 6,244 (959) 2,352
Gross profit before net gain/(loss) on sale and revaluation of Investment 21,302 11,043 27,961
properties
Loss on sale of Investment properties 5 (88) (4) (1,341)
Revaluation of Investment properties 11 19,906 (6,019) 19,387
Gross profit 41,120 5,020 46,007
Administrative expenses 6 (7,142) (5,215) (14,416)
Operating profit/(loss) 33,978 (195) 31,591
Finance costs 7 (7,535) (7,236) (14,079)
Finance income 2 20 58
Change in fair value of derivative financial instruments 20 4,552 (5,333) 2,938
Profit/(loss) before tax 30,997 (12,744) 20,508
Tax on profit/(loss) on ordinary activities 8 (8,809) 1,983 (2,631)
Profit/(loss) for the period 22,188 (10,761) 17,877
Earnings/(loss) per share 10
Basic 18.2p (8.9)p 14.8p
Diluted 18.0p (8.9)p 14.5p
Unaudited Consolidated Statement of Comprehensive Income
For the Half Year to 30 September 2021
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Profit/(loss) for the period 22,188 (10,761) 17,877
Total comprehensive income/(expense) for the period 22,188 (10,761) 17,877
Unaudited Consolidated Balance Sheet
At 30 September 2021
Notes At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Non-current assets
Investment properties 11 761,268 815,680 740,207
Owner occupied property, plant and equipment 5,003 5,724 5,362
Investment in joint ventures 12 82,845 69,607 79,953
Other investments 13 354 - -
Derivative financial instruments 20 1,492 58 171
850,962 891,069 825,693
Current assets
Land and developments 14 66 52 448
Corporation tax receivable - 1,452 -
Trade and other receivables 15 38,581 45,447 40,427
Cash and cash equivalents 16 134,751 62,284 154,448
173,398 109,235 195,323
Total assets 1,024,360 1,000,304 1,021,016
Current liabilities
Trade and other payables 17 (30,572) (32,808) (46,764)
Lease liability 18 (646) (622) (634)
Corporation tax payable (563) - (655)
(31,781) (33,430) (48,053)
Non-current liabilities
Borrowings 19 (336,825) (354,545) (336,703)
Derivative financial instruments 20 (4,382) (15,760) (7,601)
Lease liability 18 (6,604) (7,250) (6,929)
Deferred tax liability 8 (22,184) (10,087) (13,569)
(369,995) (387,642) (364,802)
Total liabilities (401,776) (421,072) (412,855)
Net assets 622,584 579,232 608,161
Equity
Called-up share capital 21 1,489 1,478 1,478
Share premium account 112,600 107,990 107,990
Revaluation reserve 184,222 165,445 164,316
Capital redemption reserve 7,478 7,478 7,478
Own shares held - (1,542) -
Other reserves 291 291 291
Retained earnings 316,504 298,092 326,608
Total equity 622,584 579,232 608,161
Unaudited Consolidated Cash Flow Statement
For the Half Year to 30 September 2021
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Cash flows from operating activities
Profit/(loss) before tax 30,997 (12,744) 20,508
Adjustment for:
Depreciation 386 400 791
Revaluation (surplus)/deficit on Investment properties (19,906) 6,019 (19,387)
Letting cost amortisation 109 4 19
Loss on sale of Investment properties 88 4 1,341
Profit on sale of plant and equipment (11) (14) (14)
Net financing costs 7,533 7,216 14,021
Change in value of derivative financial instruments (4,552) 5,333 (2,938)
Share based payment charge 1,063 314 2,031
Share of results of joint ventures (6,244) 959 (2,352)
Cash inflows from operations before changes in working capital 9,463 7,491 14,020
Change in trade and other receivables 1,752 1,935 (2,554)
Change in land, developments and trading properties 382 800 404
Change in trade and other payables (7,891) (2,837) 3,758
Cash inflows generated from operations 3,706 7,389 15,628
Finance costs (6,813) (6,609) (12,902)
Finance income 2 20 58
Tax received/(paid) 12 (35) 1,219
(6,799) (6,624) (11,625)
Net cash (used by)/generated from operating activities (3,093) 765 4,003
Cash flows from investing activities
Additions to Investment property (9,815) (12,945) (16,306)
Purchase of other investments (354) - -
Net (costs)/proceeds from sale of Investment property (88) (4) 113,207
Investments in joint ventures and subsidiaries - (7,014) (7,414)
Dividends from joint ventures 3,352 10,267 10,266
Sale of plant and equipment 43 23 23
Purchase of leasehold improvements, plant and equipment (59) (125) (156)
Net cash (used by)/generated from investing activities (6,921) (9,798) 99,620
Cash flows from financing activities
Borrowings drawn down 50,000 10,815 12,339
Borrowings repaid (50,400) (5,000) (25,000)
Finance lease repayments (311) (301) (610)
Shares issued 11 13 13
Purchase of own shares - (1,542) -
Sale of own shares 52 - 25
Equity dividends paid (9,035) (7,254) (10,528)
Net cash used by financing activities (9,683) (3,269) (23,761)
Net (decrease)/increase in cash and cash equivalents (19,697) (12,302) 79,862
Cash and cash equivalents at start of period 154,448 74,586 74,586
Cash and cash equivalents at end of period 134,751 62,284 154,448
Unaudited Consolidated Statement of Changes in Equity
At 30 September 2021
Share Share Revaluation Capital Other Retained earnings Total
capital premium reserve redemption reserves £000 £000
£000 £000 £000 reserve £000
£000
At 31 March 2020 1,465 103,522 171,464 7,478 291 314,469 598,689
Total comprehensive income - - - - - 17,877 17,877
Revaluation surplus - - 19,387 - - (19,387) -
Realised on disposal - - (26,535) - - 26,535 -
Issued share capital 13 4,468 - - - - 4,481
Performance Share Plan - - - - - 2,031 2,031
Performance Share Plan - deferred tax - - - - - 66 66
Share settled Performance Share Plan - - - - - (3,335) (3,335)
Share settled bonus - - - - - (1,145) (1,145)
Profit on sales of shares - - - - - 25 25
Dividends paid - - - - - (10,528) (10,528)
At 31 March 2021 1,478 107,990 164,316 7,478 291 326,608 608,161
Total comprehensive income - - - - - 22,188 22,188
Revaluation surplus - - 19,906 - - (19,906) -
Issued share capital 11 4,610 - - - - 4,621
Performance Share Plan - - - - - 1,063 1,063
Performance Share Plan - deferred tax - - - - - 155 155
Share settled Performance Share Plan - - - - - (3,591) (3,591)
Share settled bonus - - - - - (1,030) (1,030)
Profit on sales of shares - - - - - 52 52
Dividends paid - - - - - (9,035) (9,035)
At 30 September 2021 1,489 112,600 184,222 7,478 291 316,504 622,584
For a breakdown of Total comprehensive income see the Unaudited Consolidated
Statement of Comprehensive Income.
The adjustment to retained earnings of £1,063,000 (31 March 2021:
£2,031,000) adds back the share based payments charge recognised in the
Unaudited Consolidated Income Statement, in accordance with IFRS 2 Share Based
Payments.
There were net transactions with owners of £7,765,000 (31 March 2021:
£8,405,000) made up of the Performance Share Plan credit of £1,063,000 (31
March 2021: £2,031,000) and related deferred tax credit of £155,000 (31
March 2021: £66,000), dividends paid of £9,035,000 (31 March 2021:
£10,528,000), the issued share capital of £11,000 (31 March 2021: £13,000)
and corresponding share premium of £4,610,000 (31 March 2021: £4,468,000),
share settled Performance Share Plan awards charge of £3,591,000 (31 March
2021: £3,335,000), the share settled bonus awards charge of £1,030,000 (31
March 2021: £1,145,000) and the profit on the sale of shares of £52,000 (31
March 2021: £25,000).
Share Share Revaluation Capital Own shares held Other Retained earnings Total
capital premium reserve redemption £000 reserves £000 £000
£000 £000 £000 reserve £000
£000
At 31 March 2020 1,465 103,522 171,464 7,478 - 291 314,469 598,689
Total comprehensive expense - - - - - - (10,761) (10,761)
Revaluation deficit - - (6,019) - - - 6,019 -
Issued share capital 13 4,468 - - - - - 4,481
Performance Share Plan - - - - - - 314 314
Performance Share Plan - deferred tax - - - - - - (214) (214)
Purchase of own shares - - - - (1,542) - - (1,542)
Share settled Performance Share Plan - - - - - - (3,335) (3,335)
Share settled bonus - - - - - - (1,146) (1,146)
Dividends paid - - - - - - (7,254) (7,254)
At 30 September 2020 1,478 107,990 165,445 7,478 (1,542) 291 298,092 579,232
The adjustment to retained earnings of £314,000 adds back the share based
payments charge recognised in the Unaudited Consolidated Income Statement, in
accordance with IFRS 2 Share Based Payments.
There were net transactions with owners of £8,696,000 made up of the
Performance Share Plan credit of £314,000 and related deferred tax charge of
£214,000, share settled Performance Share Plan charge of £3,335,000, share
settled bonus awards charge of £1,146,000, dividends paid of £7,254,000, the
issued share capital of £13,000 and corresponding share premium of
£4,468,000 and the purchase of own shares of £1,542,000.
Unaudited Notes to the Half Year Results
1. Financial Information
The financial information contained in this statement does not constitute
statutory accounts within the meaning of section 434 of the Companies Act
2006. The full accounts for the year ended 31 March 2021, which were prepared
under International Financial Reporting Standards as adopted by the European
Union and which received an unqualified report from the Auditors, and did not
contain a statement under Section 498(2) or Section 498(3) of the Companies
Act 2006, have been filed with the Registrar of Companies. The consolidated
financial statements for the year ended 31 March 2022 will be prepared in
accordance with the United Kingdom adopted International Financial Reporting
Standards.
These interim condensed unaudited consolidated financial statements do not
include all of the information required for full annual financial statements
and should be read in conjunction with the consolidated financial statements
of the Group for the year ended 31 March 2021.
These interim condensed unaudited consolidated financial statements have been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted by
the United Kingdom. The same accounting policies and methods of computation
are followed in the 30 September 2021 interim condensed unaudited consolidated
financial statements as in the most recent annual financial statements, with
the addition of an accounting policy for other investments below:
Other Investments
Other investments are measured at fair value with changes in the fair value
recognised in the Income Statement in the period in which they arise.
Going Concern
The Directors have considered the appropriateness of adopting a going concern
basis in preparing the condensed unaudited financial statements. Their
assessment is based on forecasts for the next 12 month period, with the
potential impact of Covid-19 being an area of focus and including severe but
plausible downside scenarios on the principal risks and uncertainties.
The key assumptions used in the review are summarised below:
• The Group's rental income receipts were modelled for each tenant on
an individual basis;
• Existing loan facilities remain available, but no new financing is
arranged; and
• Free cash is utilised to repay debt/cure bank facility covenants.
The results of this review demonstrated the following:
• The Group has £336.5m of cash and undrawn bank facilities,
including in joint ventures, at 30 September 2021;
• The forecasts show that all bank facility financial covenants will
be met throughout the review period, with headroom to withstand a 27% fall in
rental income;
• The Group could withstand receiving no rental income during the
going concern period (excluding the impact on income covenants);
• Property values could fall by 36% before loan to value covenants
come under pressure; and
• Whilst the Group has a WAULT of 6.6 years, in a downside scenario
whereby all tenants with lease expiries or break options in the going concern
period exercise their breaks or do not renew at the end of their lease, and
with no vacant space let or re-let, the rental income covenants would be met
throughout the review period;
• Asset sales could be utilised to generate additional cash to repay
debt, materially increasing covenant headroom.
Based on this analysis, the Directors have adopted a going concern basis in
preparing the condensed unaudited financial statements for the period ended 30
September 2021.
Principal Risks and Uncertainties
The responsibility for the governance of the Group's risk profile lies with
the Board of Directors of Helical. The Board is responsible for setting the
Group's risk strategy by assessing risks, determining its willingness to
accept those risks and ensuring that the risks are monitored and that the
Group is aware of and, if appropriate, reacts to changes in those risks. The
Board is also responsible for allocating responsibility for risk within the
Group's management structure.
The Group considers its principal risks to be:
Strategic Risks - external risks that could prevent the Group delivering its
strategy. These risks principally impact our decision to purchase or exit from
a property asset.
Financial Risks - risks that could prevent the Group from funding its chosen
strategy, both in the long and short-term.
Operational Risks - internal risks that could prevent the Group from
delivering its strategy.
Reputational Risks - risks that could affect the Group in all aspects of its
strategy.
There have been no significant changes to these risks and further analysis is
included within the Group's Annual Report and Accounts 2021.
2. Revenue from Contracts with Customers
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Development property income 4,951 1,251 1,700
Service charge income 4,423 4,649 8,841
Other revenue - - 48
Total revenue from contracts with customers 9,374 5,900 10,589
The total revenue from contracts with customers is the revenue recognised in
accordance with IFRS 15 Revenue from Contracts with Customers.
No impairment of contract assets was recognised in the half year to 30
September 2021 (half year to 30 September 2020: £nil, year to 31 March 2021:
£140,000).
3. Segmental Information
The Group identifies two discrete operating segments whose results are
regularly reviewed by the Chief Operating Decision Maker (the Chief Executive)
to allocate resources to these segments and to assess their performance. The
segments are:
• Investment properties, which are owned or leased by the Group for
long-term income and for capital appreciation; and
• Development properties, which include sites, developments in the
course of construction, completed developments available for sale, and
pre-sold developments.
Revenue Investments Developments Total Investments Developments Total
Half Year to 30.09.21 Half Year to Half Year to Half Year to 30.09.20 Half Year to Half Year to
£000 30.09.21 30.09.21 £000 30.09.20 30.09.20
£000 £000 £000 £000
Rental income 15,725 - 15,725 13,420 - 13,420
Service charge income 4,423 - 4,423 4,649 - 4,649
Development property income - 4,951 4,951 - 1,251 1,251
Revenue 20,148 4,951 25,099 18,069 1,251 19,320
Revenue Investments Year to Developments Total
31.03.21 Year to Year to
£000 31.03.21 31.03.21
£000 £000
Rental income 28,007 - 28,007
Service charge income 8,841 - 8,841
Development property income - 1,700 1,700
Other revenue 48 - 48
Revenue 36,896 1,700 38,596
Cost of sales Investment Developments Total Investment Developments Total
Half Year to Half Year to Half Year to Half Year to Half Year to Half Year to
30.09.21 30.09.21 30.09.21 30.09.20 30.09.20 30.09.20
£000 £000 £000 £000 £000 £000
Rents payable (76) - (76) (122) - (122)
Property overheads (1,636) - (1,636) (1,348) - (1,348)
Service charge expense (4,423) - (4,423) (4,649) - (4,649)
Development cost of sales - (3,651) (3,651) - (917) (917)
Development sales expenses - (90) (90) - (1) (1)
Expected credit loss provision - (165) (165) - (281) (281)
Cost of sales (6,135) (3,906) (10,041) (6,119) (1,199) (7,318)
Cost of sales Investments Year to Developments Total
31.03.21 Year to Year to
£000 31.03.21 31.03.21
£000 £000
Rents payable (232) - (232)
Property overheads (2,810) - (2,810)
Service charge expense (8,841) - (8,841)
Development cost of sales - (1,018) (1,018)
Development sales expenses - (4) (4)
Expected credit loss provision - (82) (82)
Cost of sales (11,883) (1,104) (12,987)
Profit/(loss) before tax Investments Developments Total Investments Developments Total
Half Year to 30.09.21 Half Year to Half Year to Half Year to 30.09.20 Half Year to Half Year to
£000 30.09.21 30.09.21 £000 30.09.20 30.09.20
£000 £000 £000 £000
Net property income 14,013 1,045 15,058 11,950 52 12,002
Share of results of joint ventures 6,863 (619) 6,244 615 (1,574) (959)
Gain/(loss) on sale and revaluation of Investment properties 19,818 - 19,818 (6,023) - (6,023)
Segmental profit/(loss) 40,694 426 41,120 6,542 (1,522) 5,020
Gross profit 41,120 5,020
Administrative expenses (7,142) (5,215)
Net finance costs (7,533) (7,216)
Change in fair value of derivative financial instruments 4,552 (5,333)
Profit/(loss) before tax 30,997 (12,744)
Profit before tax Investments Developments Total
Year to Year to Year to
31.03.21 31.03.21 31.03.21
£000 £000 £000
Net property income 24,965 596 25,561
Share of results of joint ventures 4,389 (2,037) 2,352
Gain on sale and revaluation of Investment properties 18,046 - 18,046
Segmental profit/(loss) 47,400 (1,441) 45,959
Other operating income 48
Gross profit 46,007
Administrative expenses (14,416)
Net finance costs (14,021)
Change in fair value of derivative financial instruments 2,938
Profit before tax 20,508
Net assets Investments Developments Total Investments Developments Total
at 30.09.21 at 30.09.21 at 30.09.21 at 30.09.20 at 30.09.20 at 30.09.20
£000 £000 £000 £000 £000 £000
Investment properties 761,268 - 761,268 815,680 - 815,680
Land and developments - 66 66 - 52 52
Investment in joint ventures 79,094 3,751 82,845 63,390 6,217 69,607
840,362 3,817 844,179 879,070 6,269 885,339
Other assets 180,181 114,965
Total assets 1,024,360 1,000,304
Liabilities (401,776) (421,072)
Net assets 622,584 579,232
Net assets Developments Total
Investments at 31.03.21 at 31.03.21
at 31.03.21 £000 £000
£000
Investment properties 740,207 - 740,207
Land and developments - 448 448
Investment in joint ventures 74,165 5,788 79,953
814,372 6,236 820,608
Other assets 200,408
Total assets 1,021,016
Liabilities (412,855)
Net assets 608,161
4. Net Property Income
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Gross rental income 15,725 13,420 28,007
Head rents payable (76) (122) (232)
Property overheads (1,636) (1,348) (2,810)
Net rental income 14,013 11,950 24,965
Development property income 4,951 1,251 1,700
Development cost of sales (3,651) (917) (1,018)
Sales expenses (90) (1) (4)
Expected credit loss provision (165) (281) (82)
Development property profit 1,045 52 596
Other revenue - - 48
Other expense - - -
Net property income 15,058 12,002 25,609
Included within Gross rental income above is £3,077,000 (September 2020:
reduction of £589,000, March 2021: reduction of £389,000) of accrued income
for rent free periods.
5. Loss on Sale of Investment Properties
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Net (costs)/proceeds from the sale of Investment properties (88) (4) 113,207
Book value (Note 11) - - (111,883)
Tenants' incentives on sold Investment properties - - (2,665)
Loss on sale of Investment properties (88) (4) (1,341)
6. Administrative Expenses
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Administration costs (4,712) (4,803) (9,276)
Performance related awards, including annual bonuses (1,905) (314) (4,341)
National Insurance on performance related awards (525) (98) (799)
Administrative expenses (7,142) (5,215) (14,416)
7. Finance Costs
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Interest payable on bank loans and overdrafts (5,212) (5,489) (10,697)
Other interest payable and similar charges (2,323) (1,747) (3,382)
Finance costs (7,535) (7,236) (14,079)
8. Tax on Profit/(Loss) on Ordinary Activities
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£ 000 £000 2021
£000
The tax charge is based on the profit/(loss) for the period and represents:
United Kingdom corporation tax at 19%
- Group corporation tax - - (1,218)
- Adjustment in respect of prior periods - (1) 365
- Payment for losses (39) - -
Current tax charge (39) (1) (853)
Deferred tax
- Capital allowances (2,246) (720) (398)
- Tax losses 1,050 1,442 (794)
- Unrealised chargeable gains (6,638) 1,132 338
- Other temporary differences (936) 130 (924)
Deferred tax (charge)/credit (8,770) 1,984 (1,778)
Total tax (charge)/credit for period (8,809) 1,983 (2,631)
Deferred tax At At
At 30 September 2020 31 March
30 September 2021 £000 2021
£000 £000
Capital allowances (6,786) (4,862) (4,540)
Tax losses 2,074 3,260 1,024
Unrealised chargeable gains (20,150) (12,718) (13,512)
Other temporary differences 2,678 4,233 3,459
Deferred tax liability (22,184) (10,087) (13,569)
Under IAS 12 Income Taxes, deferred tax provisions are made for the tax that
would potentially be payable on the realisation of Investment properties and
other assets at book value.
If upon sale of the Investment properties the Group retained all the capital
allowances, the deferred tax provision in respect of capital allowances of
£6,786,000 (net) would be released and further capital allowances of
£72,780,000 (gross) would be available to reduce future tax liabilities.
The net deferred tax asset in respect of other temporary differences arises
from tax relief available to the Group on the mark-to-market valuation of
financial instruments, the future vesting of share awards and other timing
differences.
The Finance Act 2020 included provisions to set the UK corporation tax rate to
19% from
1 April 2020 and accordingly the deferred tax at 31 March 2021 was calculated
at this rate.
The Finance Act 2021 which was substantively enacted on 24 May 2021 included
provisions to increase the rate further to 25% effective from 1 April
2023. In valuing the deferred tax balances at 30 September 2021 a combination
of 19% and 25% has been used based on the expected periods of reversals.
9. Dividends
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Attributable to equity share capital
Ordinary
- Interim paid 2.70p per share - - 3,274
- Prior period final paid 7.40p per share (2020: 6.00p) 9,035 7,254 7,254
9,035 7,254 10,528
The interim dividend of 2.90 pence per share (30 September 2020: 2.70p per
share) was approved by the Board on 23 November 2021 and will be paid on 31
December 2021 to Shareholders on the register on 3 December 2021. This interim
dividend, amounting to £3,547,000, has not been included as a liability as at
30 September 2021.
10. Earnings Per Share
The calculation of the basic earnings per share is based on the earnings
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the period. This is a different basis to the net
asset per share calculations which are based on the number of shares at the
period end.
The calculation of diluted earnings per share is based on the basic earnings
per share, adjusted to allow for the issue of shares and the post tax effect
of dividends on the assumed exercise of all dilutive share awards.
The earnings per share is calculated in accordance with IAS 33 Earnings per
Share and the best practice recommendations of the European Public Real Estate
Association ("EPRA").
Reconciliations of the earnings and weighted average number of shares used in
the calculations are set out below:
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Ordinary shares in issue 122,325 121,266 121,266
Own shares held - (259) -
Weighting adjustment (481) (563) (282)
Weighted average ordinary shares in issue for calculation of basic and EPRA 121,844 120,444 120,984
earnings per share
Weighted average ordinary shares issued on share settled bonuses 513 - 719
Weighted average ordinary shares to be issued under Performance Share Plan 1,136 - 1,434
Weighted average ordinary shares in issue for calculation of diluted earnings 123,493 120,444 123,137
per share
£000 £000
£000
Earnings/(loss) used for calculation of basic and diluted earnings per share 22,188 (10,761) 17,877
Basic earnings/(loss) per share 18.2p (8.9)p 14.8p
Diluted earnings/(loss) per share 18.0p (8.9)p 14.5p
£000 £000 £000
Earnings/(loss) used for calculation of basic and diluted earnings per share 22,188 (10,761) 17,877
Net (gain)/loss on sale and revaluation of Investment properties
(19,818) 6,023 (18,046)
- subsidiaries
(9,962) (1,480) (5,870)
- joint ventures
Tax on profit on disposal of Investment properties - - 4,936
Loss on movement in share of joint ventures 22 768 767
Fair value movement on derivative financial instruments - (4,552) 5,333 (2,938)
subsidiaries
Expense on cancellation of loans 719 - -
Deferred tax on adjusting items 12,519 (1,071) 1,075
Earnings/(loss) used for calculations of EPRA earnings per share 1,116 (1,188) (2,199)
EPRA earnings/(loss) per share 0.9p (1.0)p (1.8)p
The earnings used for the calculation of EPRA earnings per share include net
rental income and development property profits but exclude investment and
trading property gains.
11. Investment Properties
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Book value at 1 April 740,207 819,573 819,573
Additions at cost 1,264 2,130 13,149
Disposals - - (111,883)
Letting cost amortisation (109) (4) (19)
Revaluation surplus/(deficit) 19,906 (6,019) 19,387
As at period end 761,268 815,680 740,207
All properties are stated at market value and are valued by professionally
qualified external valuers (Cushman & Wakefield LLP) in accordance with
the Valuation - Professional Standards, published by the Royal Institution of
Chartered Surveyors. The fair value of the Investment properties are as
follows:
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Book value 761,268 815,680 740,207
Lease incentives and costs included in trade and other receivables 22,297 18,874 18,815
Head leases capitalised (2,140) (2,154) (2,147)
Fair value 781,425 832,400 756,875
Interest capitalised in respect of the refurbishment of Investment properties
at 30 September 2021 amounted to £13,102,000 (30 September 2020:
£13,102,000, 31 March 2021: £13,102,000). Interest capitalised during the
period in respect of the refurbishment of Investment properties amounted to
£nil (30 September 2020: £nil, 31 March 2021: £nil).
The historical cost of Investment property is £574,973,000 (30 September
2020: £648,053,000, 31 March 2021: £573,709,000).
12. Joint Ventures
Share of results of joint ventures Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Revenue 4,497 23,252 26,024
Gross rental income 105 87 156
Property overheads (42) (125) (131)
Net rental income/(expense) 63 (38) 25
Gain on revaluation of Investment properties 9,962 2,032 6,423
Loss on sale of Investment properties - (552) (553)
Development property loss (41) (504) (948)
Gross profit 9,984 938 4,947
Administrative expenses (230) (292) (432)
Operating profit 9,754 646 4,515
Interest payable on bank loans and overdrafts (1,080) (547) (1,163)
Other interest payable and similar charges (107) (94) (156)
Interest capitalised 919 - 514
Finance income - 4 5
Profit before tax 9,486 9 3,715
Tax (3,220) (200) (596)
Profit/(loss) after tax 6,266 (191) 3,119
Adjustment for Barts Square economic interest¹ (22) (768) (767)
Share of results of joint ventures 6,244 (959) 2,352
(1 )This adjustment reflects the impact of the consolidation of a joint
venture at its economic interest of 47.0% (30 September 2020: 47.0%, 31 March
2021: 47.0%) rather than its actual ownership interest of 33.3%.
Investment in joint ventures At At
At 30 September 2020 31 March
30 September 2021 £000 2021
£000 £000
Summarised balance sheets
Non-current assets
Investment properties 111,732 70,228 86,817
Owner occupied property, plant and equipment 41 24 41
111,773 70,252 86,858
Current assets
Land and developments 12,369 19,184 16,545
Trade and other receivables 2,003 1,805 1,661
Cash and cash equivalents 4,533 9,163 7,781
18,905 30,152 25,987
Current liabilities
Trade and other payables (8,700) (13,105) (7,098)
Borrowings (8,293) - (11,455)
(16,993) (13,105) (18,553)
Non-current liabilities
Trade and other payables (405) (4,414) (408)
Borrowings (21,216) (12,241) (8,014)
Leasehold interest (4,680) - (4,584)
Deferred tax (4,632) (1,130) (1,422)
(30,933) (17,785) (14,428)
Net assets pre-adjustment 82,752 69,514 79,864
Acquisition costs 93 93 89
Investment in joint ventures 82,845 69,607 79,953
The fair value of Investment properties at 30 September 2021 is as follows:
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Book value 111,732 70,228 86,817
Lease incentives and costs included in trade and other receivables 151 88 119
Head leases capitalised (4,406) (4,308) (4,420)
Fair value 107,477 66,008 82,516
13. Other Investments
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Book value at 1 April - - -
Acquisitions 354 - -
As at period end 354 - -
On 6 August 2021, the Group entered into a commitment of £1,000,000 to invest
in the Pi Labs European PropTech venture capital fund ("Fund") of which
£354,000 was invested in the period. The Fund is focused on investing in the
next generation of proptech businesses.
The fair value of the Group's investment is based on the net asset value of
the Fund, representing Level 2 fair value measurement as defined in IFRS 13
Fair Value Measurement.
14. Land and Developments
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Development properties 66 52 448
The Directors' valuation of development stock shows a surplus of £578,000 (30
September 2020: £578,000, 31 March 2021: £578,000) above book value. This
surplus has been included in the EPRA net tangible asset value (Note 22).
No interest has been capitalised or included in land and developments.
15. Trade and Other Receivables
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Trade receivables 12,088 14,437 17,426
Other receivables 663 7,382 544
Prepayments 4,862 4,071 4,597
Accrued income 20,968 19,557 17,860
Total trade and other receivables 38,581 45,447 40,427
Included in accrued income are lease incentives of £20,311,000 (30 September
2020: £18,874,000, 31 March 2021: £17,179,000).
16. Cash and Cash Equivalents
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Cash held at managing agents 3,245 5,545 3,289
Restricted cash 63,534 12,909 72,878
Cash deposits 67,972 43,830 78,281
Total cash and cash equivalents 134,751 62,284 154,448
Restricted cash is made up of cash held by solicitors and cash in restricted
accounts.
17. Trade and Other Payables
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Trade payables 13,288 13,477 24,194
Other payables 3,214 3,539 1,879
Accruals 6,366 8,393 14,023
Deferred income 7,704 7,399 6,668
Total trade and other payables 30,572 32,808 46,764
18. Lease Liability
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Current lease liability 646 622 634
Non-current lease liability 6,604 7,250 6,929
Included within the lease liability are £646,000 (30 September 2020:
£622,000, 31 March 2021: £634,000) of current and £4,415,000 (30 September
2020: £5,060,000, 31 March 2021: £4,740,000) of non-current lease
liabilities which relate to the long leasehold of the Group's head office.
19. Borrowings
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Current borrowings - - -
Borrowings repayable within:
- two to three years 65,000 48,085 49,705
- three to four years 271,825 226,361 286,998
- four to five years - 80,099 -
Non-current borrowings 336,825 354,545 336,703
Total borrowings 336,825 354,545 336,703
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Total borrowings 336,825 354,545 336,703
Cash (134,751) (62,284) (154,448)
Net borrowings 202,074 292,261 182,255
Net borrowings exclude the Group's share of borrowings in joint ventures of
£29,509,000 (30 September 2020: £12,241,000, 31 March 2021: £19,469,000)
and cash of £4,533,000 (30 September 2020: £9,163,000, 31 March 2021:
£7,781,000). All borrowings in joint ventures are secured.
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Net assets 622,584 579,232 608,161
Gearing 32% 51% 30%
20. Derivative Financial Instruments
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Derivative financial instruments asset 1,492 58 171
Derivative financial instruments liability (4,382) (15,760) (7,601)
A gain on the change in fair value of £4,552,000 has been recognised in the
Unaudited Consolidated Income Statement (30 September 2020: loss of
£5,333,000, 31 March 2021: £2,938,000).
The fair values of the Group's outstanding interest rate swaps and caps have
been estimated by calculating the present values of future cash flows, using
appropriate market discount rates, representing Level 2 fair value
measurements as defined in IFRS 13 Fair Value Measurement.
21. Share Capital
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Authorised 39,577 39,577 39,577
The authorised share capital of the Company is £39,577,000 divided into
ordinary shares of 1p each and deferred shares of 1/8p each.
Allotted, called up and fully paid:
- 122,325,413 (30 September 2020: 121,265,710, 31 March 2021: 1,224 1,213 1,213
121,265,710) ordinary shares of 1p each
- 212,145,300 deferred shares of 1/8p each 265 265 265
1,489 1,478 1,478
22. Net Assets Per Share
At Number of shares At Number of shares p
30 September 2021 000 31 March 000
£000 2021
£000
p
IFRS net assets 622,584 122,325 608,161 121,266
Adjustments:
- deferred shares (265) (265)
Basic net asset value 622,319 122,325 509 607,896 121,266 501
- share settled bonus 513 718
- dilutive effect of Performance Share Plan 1,130 1,519
Diluted net asset value 622,319 123,968 502 607, 896 123,503 492
Adjustments:
- fair value of financial instruments 2,890 7,431
- deferred tax 30,866 18,348
- fair value of land and developments 578 578
- real estate transfer tax 60,250 56,877
EPRA net reinstatement value 716,903 123,968 578 691,130 123,503 560
- real estate transfer tax (25,817) (24,862)
- deferred tax (7,871) (7,605)
EPRA net tangible asset value 683,215 123,968 551 658,663 123,503 533
- real estate transfer tax (34,433) (32,015)
- deferred tax 7,871 7,605
EPRA net asset value 656,653 123,968 530 634,253 123,503 514
At Number of shares At Number of shares p
30 September 2021 000 31 March 000
£000 2021
p £000
Diluted net assets 622,319 123,968 502 607,896 123,503 492
Adjustments:
- surplus on fair value of stock 578 578
- fair value of fixed rate loan (7,731) (9,622)
EPRA net disposal value/EPRA triple net asset value 615,166 123,968 496 598,852 123,503 485
At p
30 September 2020 Number of shares
£000 000
IFRS net assets 579,232 121,266
Adjustments:
- deferred shares (265)
- own shares held (437)
Basic net asset value 578,967 120,829 479
- share settled bonus 719
- dilutive effect of Performance Share Plan 537
Diluted net asset value 578,967 122,085 474
Adjustments:
- fair value of financial instruments 15,702
- deferred tax 15,381
- fair value of land and developments 578
- real estate transfer tax 60,867
EPRA net reinstatement value 671,495 122,085 550
- real estate transfer tax (48,011)
- deferred tax (6,475)
EPRA net tangible asset value 617,009 122,085 505
- real estate transfer tax (12,856)
- deferred tax 6,475
EPRA net asset value 610,628 122,085 500
At p
30 September 2020 Number of shares
£000 000
Diluted net assets 578,967 122,085 474
Adjustments:
- surplus on fair value of stock 578
- fair value of fixed rate loan (12,150)
EPRA net disposal value/EPRA triple net asset value 567,395 122,085 465
The net asset values per share have been calculated in accordance with
guidance issued by the European Public Real Estate Association ("EPRA").
The adjustments to the net asset value comprise the amounts relating to the
Group and its share of joint ventures.
The calculation of EPRA net disposal value and triple net asset value per
share reflects the fair value of all the assets and liabilities of the Group
at 30 September 2021. One of the loans held by the Group is at a fixed rate
and therefore not at fair value. The adjustment of £7,731,000 (30 September
2020: £12,150,000, 31 March 2021: £9,622,000) is the increase from book to
fair value.
23. Related Party Transactions
The following amounts were due from the Group's joint ventures:
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Charterhouse Place Limited - 7,000 -
Charterhouse Street Limited 400 - 400
Barts Square companies 24 86 16
Old Street Holdings LP 3 3 3
Shirley Advance LLP 8 7 8
A development management, accounting and corporate services fee of £25,000
(30 September 2020: £25,000, 31 March 2021: £50,000) was charged by the
Group to the Barts Square companies. In addition, a development management,
accounting and corporate services fee of £425,000 (30 September 2020:
£426,000, 31 March 2021: £850,000) was charged by the Group to the
Charterhouse Place Limited group.
24. See-through Analysis
Helical holds a significant proportion of its property assets in joint
ventures with partners that provide a significant equity contribution, whilst
relying on the Group to provide asset management or development expertise.
Accounting convention requires Helical to account under IFRS for its share of
the net results and net assets of joint ventures in limited detail in the
Income Statement and Balance Sheet. Net asset value per share, a key
performance measure used in the real estate industry, as reported in the
financial statements under IFRS, does not provide Shareholders with the most
relevant information on the fair value of assets and liabilities within an
ongoing real estate company with a long-term investment strategy.
This analysis incorporates the separate components of the results of the
consolidated subsidiaries and Helical's share of its joint ventures' results
into a "see-through" analysis of its property portfolio, debt profile and the
associated income streams and financing costs, to assist in providing a
comprehensive overview of the Group's activities.
See-through Net Rental Income
Helical's share of the gross rental income, head rents payable and property
overheads from property assets held in subsidiaries and in joint ventures is
shown in the table below.
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Gross rental income - subsidiaries 15,725 13,420 28,007
- joint ventures 105 87 156
Total gross rental income 15,830 13,507 28,163
Rents payable - subsidiaries (76) (122) (232)
Property overheads - subsidiaries (1,636) (1,348) (2,810)
- joint ventures (42) (125) (131)
See-through net rental income 14,076 11,912 24,990
See-through Net Development Profits/(Losses)
Helical's share of development profits/(losses) from property assets held in
subsidiaries and in joint ventures is shown in the table below.
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
In parent and subsidiaries 1,210 333 678
In joint ventures (41) (504) (948)
Total gross development profit/(loss) 1,169 (171) (270)
Provision against stock - subsidiaries (165) (281) (82)
See-through development profits/(losses) 1,004 (452) (352)
See-through Net Gain/(Loss) on Sale and Revaluation of Investment Properties
Helical's share of the net gain/(loss) on the sale and revaluation of
Investment properties held in subsidiaries and joint ventures is shown in the
table below.
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Revaluation surplus/(deficit) on Investment properties - subsidiaries 19,906 (6,019) 19,387
- joint ventures 9,962 2,032 6,423
Total revaluation surplus/(deficit) 29,868 (3,987) 25,810
Net loss on sale of Investment properties - subsidiaries (88) (4) (1,341)
- joint ventures - (552) (553)
Total net loss on sale of Investment properties (88) (556) (1,894)
See-through net gain/(loss) on sale and revaluation of Investment properties 29,780 (4,543) 23,916
See-through Net Finance Costs
Helical's share of the interest payable, finance charges, capitalised interest
and interest receivable on bank borrowings and cash deposits in subsidiaries
and joint ventures is shown in the table below.
Half Year to Half Year to Year to
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Interest payable on bank loans and overdrafts - subsidiaries 5,212 5,489 10,697
- joint ventures 1,080 547 1,163
Total interest payable on bank loans and overdrafts 6,292 6,036 11.860
Other interest payable and similar charges - subsidiaries 2,323 1,747 3,382
- joint ventures 107 94 156
Interest capitalised - subsidiaries - - -
- joint ventures (919) (514)
Total finance costs 7,803 7,877 14,884
Interest receivable and similar income - subsidiaries (2) (20) (58)
- joint ventures - (4) (5)
See-through net finance costs 7,801 7,853 14,821
See-through Property Portfolio
Helical's share of the investment, land and development property portfolio in
subsidiaries and joint ventures is shown in the table below.
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Investment property fair value - subsidiaries 781,425 832,400 756,875
- joint ventures 107,477 66,008 82,516
Total Investment property fair value 888,902 898,408 839,391
Land and development stock - subsidiaries 66 52 448
- joint ventures 12,369 19,184 16,545
Total land and development stock 12,435 19,236 16,993
Land and development stock surplus - subsidiaries 578 578 578
Total land and development stock surpluses 578 578 578
Total land and development stock at fair value 13,013 19,814 17,571
See-through property portfolio 901,915 918,222 856,962
See-through Net Borrowings
Helical's share of borrowings and cash deposits in subsidiaries and joint
ventures is shown in the table below.
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Gross borrowings more than one year - subsidiaries 336,825 354,545 336,703
Total 336,825 354,545 336,703
Gross borrowings less than one year - joint ventures 8,293 - 11,455
Gross borrowings more than one year - joint ventures 21,216 12,241 8,014
Total 29,509 12,241 19,469
Cash and cash equivalents - subsidiaries (134,751) (62,284) (154,448)
- joint ventures (4,533) (9,163) (7,781)
Total (139,284) (71,447) (162,229)
See-through net borrowings 227,050 295,339 193,943
25. See-through Net Gearing and Loan to Value
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Property portfolio 901,915 918,222 856,962
Net borrowings 227,050 295,339 193,943
Net assets 622,584 579,232 608,161
See-through net gearing 36.5% 51.0% 31.9%
See-through loan to value 25.2% 32.2% 22.6%
26. Total Accounting Return
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Brought forward IFRS net assets 608,161 598,689 598,689
Carried forward IFRS net assets 622,584 579,232 608,161
Increase/(decrease) in IFRS net assets 14,423 (19,457) 9,472
Dividends paid 9,035 7,254 10,528
Total accounting return 23,458 (12,203) 20,000
Total accounting return percentage 3.9% (2.0)% 3.3%
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
Brought forward EPRA net tangible assets 658,663 640,424 640,424
Carried forward EPRA net tangible assets 683,215 617,009 658,663
Increase/(decrease) in EPRA net tangible assets 24,552 (23,415) 18,239
Dividends paid 9,035 7,254 10,528
Total EPRA accounting return 33,587 (16,161) 28,767
Total EPRA accounting return percentage 5.1% (2.5)% 4.5%
27. Total Property Return
At At At
30 September 2021 30 September 2020 31 March
£000 £000 2021
£000
See-through net rental income 14,076 11,912 24,990
See-through development profits/(losses) 1,004 (452) (352)
See-through revaluation surplus/(deficit) 29,868 (3,987) 25,810
See-through net loss on sale of Investment properties (88) (556) (1,894)
Total property return 44,860 6,917 48,554
28. Capital Commitments
The Group has a commitment of £30,900,000 (30 September 2020: £65,134,000,
31 March 2021: £4,400,000), all of which relates to 33 Charterhouse Street,
London EC1, due to be completed in the period to March 2023.
Appendix 1 - Glossary of Terms
Capital value (psf)
The open market value of the property divided by the area of the property in
square feet.
Company or Helical or Group
Helical plc and its subsidiary undertakings.
Diluted figures
Reported amounts adjusted to include the effects of potential shares issuable
under the Director and employee remuneration schemes.
Earnings per share (EPS)
Profit after tax divided by the weighted average number of ordinary shares in
issue.
EPRA
European Public Real Estate Association.
EPRA earnings per share
Earnings per share adjusted to exclude gains/losses on sale and revaluation of
Investment properties and their deferred tax adjustments, the tax on
profit/loss on disposal of Investment properties, trading property
profits/losses, movement in fair value of available-for-sale assets and fair
value movements on derivative financial instruments, on an undiluted basis.
Details of the method of calculation of the EPRA earnings per share are
available from EPRA (see Note 10).
EPRA net assets per share
Diluted net asset value per share adjusted to exclude fair value surplus of
financial instruments, and deferred tax on capital allowances and on
Investment properties revaluation but including the fair value of trading and
development properties in accordance with the best practice recommendations of
EPRA (see Note 22).
EPRA net disposal value per share
Represents the Shareholders' value under a disposal scenario, where deferred
tax, financial instruments and certain other adjustments are calculated to the
full extent of their liability, net of any resulting tax (see Note 22).
EPRA net reinstatement value per share
Net asset value adjusted to reflect the value required to rebuild the entity
and assuming that entities never sell assets. Assets and liabilities, such as
fair value movements on financial derivatives, that are not expected to
crystallise in normal circumstances and deferred taxes on property valuation
surpluses are excluded (see Note 22).
EPRA net tangible assets per share
Assumes that entities buy and sell assets, thereby crystallising certain
levels of unavoidable deferred tax, but excludes assets and liabilities, such
as fair value movements on financial derivatives, that are not expected to
crystallise in normal circumstances and deferred taxes on property valuation
surpluses are excluded (see Note 22).
EPRA topped-up NIY
The current annualised rent, net of costs, topped-up for contracted uplifts,
expressed as a percentage of the fair value of the relevant property.
EPRA triple net asset value per share
EPRA net asset value per share adjusted to include fair value of financial
instruments and deferred tax on capital allowances and on Investment
properties revaluation (see Note 22).
Estimated rental value (ERV)
The market rental value of lettable space as estimated by the Group's valuers
at each Balance Sheet date.
Gearing
Total borrowings less short-term deposits and cash as a percentage of net
assets.
Initial yield
Annualised net passing rents on Investment properties as a percentage of their
open market value.
Like-for-like valuation change
The valuation gain/loss, net of capital expenditure, on those properties held
at both the previous and current reporting period end, as a proportion of the
fair value of those properties at the beginning of the reporting period plus
net capital expenditure.
MSCI INC. (MSCI IPD)
MSCI INC. is a company that produces independent benchmarks of property
returns using its Investment Property Databank (IPD).
Net asset value per share (NAV)
Net assets divided by the number of ordinary shares at the Balance Sheet date
(see Note 22).
Net gearing
Total borrowings less short-term deposits and cash as a percentage of net
assets.
Passing rent
The annual gross rental income being paid by the tenant.
Reversionary yield
The income/yield from the full estimated rental value of the property on the
market value of the property grossed up to include purchaser's costs, capital
expenditure and capitalised revenue expenditure.
See-through/Group share
The consolidated Group and the Group's share in its joint ventures (see Note
24).
See-through net gearing
The see-through net borrowings expressed as a percentage of net assets (see
Note 25).
Total Accounting Return
The growth in the net asset value of the Company plus dividends paid in the
period, expressed as a percentage of net asset value at the start of the
period (see Note 26).
Total Property Return
The total of net rental income, trading and development profits and net gain
on sale and revaluation of Investment properties on a see-through basis (see
Note 27).
Total Shareholder Return (TSR)
The growth in the ordinary share price as quoted on the London Stock Exchange
plus dividends per share received for the period expressed as a percentage of
the share price at the beginning of the period.
True equivalent yield
The constant capitalisation rate which, if applied to all cash flows from an
Investment property, including current rent, reversions to current market rent
and such items as voids and expenditures, equates to the market value. Assumes
rent is received quarterly in advance.
Unleveraged returns
Total property gains and losses (both realised and unrealised) plus net rental
income expressed as a percentage of the total value of the properties.
WAULT
The total contracted rent up to the first break, or lease expiry date, divided
by the contracted annual rent.
HELICAL PLC
Registered in England and Wales No.156663
Registered Office:
5 Hanover Square
London
W1S 1HQ
T: 020 7629 0113
F: 020 7408 1666
E: reception@helical.co.uk (mailto:reception@helical.co.uk)
www.helical.co.uk (http://www.helical.co.uk)
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. END IR GZMZMZZGGMZZRecent news on Helical
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