REG - Helical PLC - Trading Update

HelicalAnnouncement

14/07/2022 07:00

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RNS Number : 4031S  Helical PLC  14 July 2022

HELICAL PLC
("Helical" or the "Company")
Trading Update for the Period Since 1 April 2022

14 July 2022

 

Ahead of its Annual General Meeting ("AGM") which will take place at 9:00am
today, Helical provides an update covering its trading activity for the period
1 April 2022 to 13 July 2022 ("the Period").

 

Commenting on the Company's activities, Gerald Kaye, Chief Executive, said:

 

"Helical has had a strong start to the financial year, releasing equity from
investment sales of 55 Bartholomew, EC1 and Trinity, our last asset in
Manchester, as well as selling six residential units at Barts Square, with
just a further eight to be sold.

 

"We have made good progress on letting our vacant space at rents at or above
31 March 2022 ERVs and we are focused on letting up our remaining vacant
space.  To that vacant space, we shall shortly add the The JJ Mack Building,
our new development at 33 Charterhouse Street, EC1. Soft marketing of this
205,369 sq ft building has recently started ahead of the scheduled completion
of the development in September and we are confident that demand for this
highly sustainable building will be strong. Our pipeline of new schemes
continues following the acquisition, earlier this year, of 100 New Bridge
Street, EC4 where a planning application will be submitted later this summer.

 

"Despite the current political uncertainty and headwinds affecting the global
economy, London continues to prosper and was recently given a strong boost
with the opening of the Elizabeth Line, bringing an extra 1.5m people within a
45-minute journey of central London. All but one of our buildings (99% by
value) are within 12 minutes of an Elizabeth Line station and current tenants
have started to see the additional benefit from their proximity to this new
transport connection.

 

"With our best-in-class offices meeting the highest sustainability criteria
and offering top-quality amenities we believe our portfolio will be much in
demand as the office sector continues to bifurcate between the best and the
rest. This portfolio, our strong balance sheet and an experienced management
team gives us confidence that we can continue to deliver good returns for
shareholders."

 

Operational Performance
 
Portfolio Matters

 

·      On 20th May 2022 we simultaneously exchanged and completed
contracts on the sale of Trinity in Manchester, to clients of Mayfair Capital,
for £34.55m (£590 psf), reflecting a net initial yield of 5%. The sale
represents a premium to 31 March 2022 book value of c.£2m, net of rental top
ups.

·    We completed the sale of 55 Bartholomew, EC1 on 14(th) June 2022 to a
private European investor for £16.5m (our share £7.6m), reflecting a net
initial yield of 4.5%. Originally three Victorian townhouses, the building was
comprehensively refurbished to provide 10,976 sq ft of office space, let to
five office tenants at an average rent of £72.17 psf.

·     We have completed four new lettings, totalling 19,891 sq ft, in the
Period delivering contracted rent of £1.3m (our share £1.2m):

o   The 12(th) floor at The Tower, EC1, comprising 9,572 sq ft, has been let
to financial technology business, Stenn International, at a rent of £80.00
psf in line with 31 March 2022 ERV and the building returns to being fully
let.

o   A further retail unit at Barts Square, EC1, comprising 4,922 sq ft, has
been let to Restaurant St. Barts who will open for trading in late Summer.

o   We have completed one further letting at The Loom, E1 of 3,496 sq ft at
a rent of £60.00 psf, representing a 9.2% premium to 31 March 2022 ERV.

o   We have let the last remaining 1,808 sq ft unit at 25 Charterhouse
Square, EC1 to natural stone purveyors, Solid Nature, in line with 31 March
2022 ERV.

·    We have completed the sale of a further four apartments at Barts
Square, EC1. Two further apartments are under offer, leaving just eight
apartments, out of 236, available for sale.

·     Practical completion of The JJ Mack Building at 33 Charterhouse
Street, EC1, a 205,369 sq ft BREEAM "Outstanding" office development is on
track for September 2022.

·    At 100 New Bridge Street, EC4, we are continuing to develop our
design proposals in anticipation of submitting a planning application over the
Summer. The sustainable refurbishment of the building to create a new carbon
friendly building is due to commence in late 2023 once vacant possession is
achieved.

 

Sustainability

 

On 24 May 2022, Helical published its "Net Zero Carbon Pathway" setting out
its commitment to becoming a net zero carbon business by 2030.

 

Financing

 

At 13 July 2022, the Group had £59m of cash, £460m of investment facilities
of which £400m was drawn down and £79m of development facilities (Helical's
share) of which £51m was drawn down.

 

Helical as a Real Estate Investment Trust ("REIT")

 

As previously notified, Helical became a REIT on 1 April 2022 and it is the
Board's intention that there will be no material changes to the Group's
investment policy or strategy on becoming a REIT.

 

Dividend

 

The final dividend for the year ended 31 March 2022 of 8.25p, if approved by
Shareholders at the AGM later today, will be paid on 29 July 2022. This will
take the total dividend for the year to 11.15p (2021: 10.10p). This final
dividend will be paid out of distributable reserves generated from the Group's
activities prior to its conversion into a REIT.

 

Board Matters

 

As previously announced, at today's Annual General Meeting ("AGM") our
Chairman, Richard Grant, will step down from the Board after ten years'
service. Richard will be replaced as Chairman by Richard Cotton, our current
Senior Independent Director ("SID") with Sue Clayton, who has been on the
Board for six years, replacing Richard Cotton as SID.

 

 

 

For further information, please contact:

 

 Helical plc
 Gerald Kaye (CEO)             Address: 5 Hanover Square, London W1S 1HQ
 Tim Murphy (CFO)              Website: www.helical.co.uk (http://www.helical.co.uk)

                               Tel: 020 7629 0113

 FTI Consulting
 Dido Laurimore/Richard Gotla  Tel: 020 3727 1000

Schelical@fticonsulting.com (mailto:Schelical@fticonsulting.com)

 

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