REG - Helical PLC - Annual Results for the Year to 31 March 2025
21/05/2025 07:00
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RNS Number : 4976J Helical PLC 21 May 2025
HELICAL PLC
("Helical" or the "Group" or the "Company")
Annual Results for the Year to 31 March 2025
Decisive action and disciplined execution driving returns
Matthew Bonning-Snook, Chief Executive, commented:
"Our results this year are a clear reflection of the decisive action taken by
the Group over the past 12 months. This period has seen us recycle equity from
the sale of £245m of investment assets, strengthening the balance sheet and
unlocking the delivery of a substantial development pipeline. Our progress
culminated in the forward sale of 100 New Bridge Street, EC4, after the year
end, following competitive occupier interest in the building. The implied rent
and yield achieved on this transaction demonstrate the clear flight to quality
in the London office market that we have previously referenced and reinforce
our view that now is the time to build in our favoured undersupplied
submarkets. The anticipated returns from the £333m sale of 100 New Bridge
Street, EC4, (our share: £166.5m), once it achieves practical completion,
will allow the Group to invest in further opportunities and return meaningful
amounts to Shareholders.
"Our development pipeline, which is fully equity funded, is progressing well.
In addition to 100 New Bridge Street, EC4, we are under construction at the
first of the schemes in our joint venture with Places for London ("PfL"), 10
King William Street, EC4, a 142,000 sq ft new office scheme, as well as at our
equity-light comprehensive refurbishment of Brettenham House, WC2, comprising
128,000 sq ft of offices. All three of these schemes will be delivered in
2026, predominantly funded by the £280m (our share: £141m) of development
finance we arranged during the year.
"In line with our evolved strategy, which ensures we pursue the best value use
for each opportunity, we have secured a revised planning permission for a 429
bed Purpose Built Student Accommodation ("PBSA") scheme above Southwark
station, a highly desirable Zone 1 location. Negotiations are underway in
relation to forward funding this development, materially reducing the
project's equity requirement. In addition, we have much improved the planning
consent for our 235,000 sq ft office development above the eastern entrance at
Paddington station and we are in active discussions with PfL on several other
exciting opportunities.
"Going forward, the joint venture structure of our development activities will
generate significant development management fees. Alongside these, we will
start to recognise promote fees as the developments progress and we will see
the benefits of the decision taken to reduce administration overheads by 25%.
At our two remaining standing investments, The Bower, EC1 and The Loom, E1,
financed by the low-interest £210m Revolving Credit Facility, we have let one
of the former WeWork floors, with the remaining unlet space fully refurbished
and being actively marketed.
"With an experienced management team, the funds in place to deliver a
substantial development pipeline and a historically low LTV, Helical is
financially and operationally well placed to deliver a strong performance over
the coming cycle and we are excited by the opportunity the market presents."
Financial Highlights
EPRA Measures(1) 31 March 31 March IFRS/See-through Measures 31 March 31 March
2025 2024 2025 2024
EPRA earnings £2.7m £4.3m Profit/(loss) after tax £27.9m £(189.8)m
EPRA earnings per share 2.2p 3.5p Basic earnings/(loss) per share 22.8p (154.6)p
EPRA net tangible assets per share 348p 331p Net assets per share(1) 347p 327p
EPRA total accounting return 6.3% (31.4)% Total dividend per share 5.00p 4.83p
See-through loan to value 20.9% 39.5% Net debt(1) £112.8m £261.6m
Operational Activity During the Year
Active Equity Recycling - with £245m (Helical share) transacted during the
year and the forward sale post year end of 100 New Bridge Street, EC4, for
£166.5m (Helical share)
· In April 2024, we completed on the £43.5m sale of 25 Charterhouse
Square, EC1.
· In May 2024, we entered into a joint venture arrangement for the
redevelopment of 100 New Bridge Street, EC4, selling a 50% interest in the
site for £55m, structured on a preferred equity basis to a vehicle managed by
Orion Capital Managers. Simultaneously, the parties entered into a £155m
development financing arrangement with NatWest and an institutional lender, as
well as a building contract to deliver the scheme.
· In August 2024, we exchanged contracts to sell The Power House, W4, for
£7.0m, with completion taking place in December 2024.
· In October 2024, we completed on the sale of our 50% interest in
Charterhouse Place Limited, the owner of The JJ Mack Building, EC1, to our
joint venture partner, AshbyCapital, for £71.4m. The transaction reflected a
value of £139.2m for Helical's 50% share of the property.
· Following the year end, in April 2025, Helical and a vehicle managed by
Orion Capital Managers exchanged contracts with an undisclosed party for the
forward sale of Helical Bicycle 3 Limited, the corporate entity that owns 100
New Bridge Street, EC4, for the purchaser's own occupation. The sale will
complete once the building achieves practical completion, which is targeted
for April 2026. The property forward sale net price of £333m (Helical share:
£166.5m) reflects a capital value of £1,712 psf, which represents a
capitalisation yield of 5.0%, before deducting corporate sale costs and a
notional rent free allowance.
Development Pipeline
On Site - 464,500 sq ft of new and refurbished offices started in the year
· 100 New Bridge Street, EC4 - This 194,500 sq ft "carbon friendly"
redevelopment of the existing building is progressing with a planned
completion date in April 2026.
· Brettenham House, WC2 - Work continues on a comprehensive refurbishment
of this 1930s heritage office building located at Waterloo Bridge. The scheme
will provide 128,000 sq ft of office and retail space with completion expected
in Q2 2026.
· 10 King William Street, EC4 - The joint venture between Helical and PfL
acquired 10 King William Street, EC4, the over-station development at Bank
Tube station, in October 2024. In February 2025, the joint venture entered
into a development financing arrangement with HSBC to provide £125m to fund
its construction. Simultaneously, a building contract with McLaren was signed
with the aim to achieve practical completion of this 142,000 sq ft office
scheme in December 2026.
Future Schemes
· Southwark, SE1 - In March 2025, Helical and PfL secured a resolution
to grant planning approval for 429 PBSA units and 44 affordable homes at their
scheme above Southwark Tube station, replacing the previous planned 220,000 sq
ft office scheme. Building works at the new development are expected to start
in 2026 and complete in 2028.
· Paddington, W2 - Situated close to the Elizabeth Line station at
Paddington, this 19-storey building will provide 235,000 sq ft of office
space. In the year, we have obtained consent to add external terrace space to
every office floor, improved the end-of-trip and arrival facilities, completed
RIBA Stage 3 Design and negotiated an enabling works contract which is
expected to commence in June 2025. We are due to acquire the site, in joint
venture with PfL, in January 2026, allowing main works to start immediately
after site drawdown.
Good Letting Progress
· During the year we completed 12 new lettings, comprising 74,041 sq ft
with a contracted rent of £5.8m per annum (our share: £3.6m), 1.2% above
March 2024 ERVs (Helical share: 0.8%). In addition, we have completed seven
lease renewals of 24,407 sq ft during the year and one following the year end
of 5,691 sq ft, a total of 30,098 sq ft.
Financial and Portfolio Performance
Earnings and Dividends
· IFRS profit of £27.9m (2024: loss of £189.8m).
· IFRS basic earnings per share of 22.8p (2024: loss of 154.6p).
· See-through Total Property Return(1) of £52.1m (2024: -£162.7m):
- Group's share(1) of net rental income decreased 23% to £19.6m (2024:
£25.5m) following the sales.
- Net gain on sale and revaluation of investment properties of £32.2m
(2024: -£188.6m).
- Development profits of £0.3m (2024: £0.4m).
· Total Property Return, as measured by MSCI(1), of 10.0%, compared to
the MSCI Central London Offices Total Return Index of 4.1%.
· EPRA earnings per share(1) of 2.2p (2024: 3.5p), reflecting the sale
of investment assets during the year.
· Final dividend proposed of 3.50p per share (2024: 1.78p).
· Total dividend of 5.00p (2024: 4.83p).
· Updated dividend policy to return surplus capital to Shareholders.
Balance Sheet
· Net asset value up 6.2% to £426.1m (31 March 2024: £401.1m).
· Total Accounting Return(1) on IFRS net assets of 7.2% (2024: -31.7%).
· Total Accounting Return(1) on EPRA net tangible assets of 6.3% (2024:
-31.4%).
· EPRA net tangible asset value per share(1) up 5.1% to 348p (31 March
2024: 331p).
· EPRA net disposal value per share(1) up 6.1 % to 347p (31 March 2024:
327p).
Financing
· IFRS net borrowings of £97.2m (31 March 2024: £199.0m).
· See-through net borrowings(1) of £112.8m (31 March 2024: £261.6m).
· See-through loan to value(1) of 20.9% (31 March 2024: 39.5%).
· Average maturity of the Group's share(1) of secured investment debt of
2.5 years (31 March 2024: 2.1 years).
· 100% of drawn debt protected by interest rate hedging to expiry of
facilities.
· Average cost of the Group's share(1) of secured investment facilities
of 3.8% (31 March 2024: 2.9%).
· Group's share(1) of cash and undrawn bank facilities of £244.5m (31
March 2024: £115.5m).
Portfolio Update
· Investment property valuations showed an increase on a like-for-like
basis of 0.6%, while the development portfolio value increased by 29.1% to
provide a net 5.8% increase overall.
· The true equivalent yield of the investment portfolio increased from
6.5% to 7.1% following the sales during the year.
· IFRS investment property portfolio value of £373.3m (31 March 2024:
£472.5m), reflecting disposals during the year.
· See-through investment portfolio(1) valued at £535.4m (31 March 2024:
£660.6m).
· Contracted rents of the completed investment portfolio of £20.2m (31
March 2024: £33.0m), compared to an ERV of £29.3m (31 March 2024: £42.9m).
· See-through portfolio WAULT(1) of 3.1 years (31 March 2024: 6.6
years), reflecting disposals during the year.
· Vacancy rate on completed assets increased to 21.3% at 31 March 2025
(31 March 2024: 17.6%).
Sustainability Highlights
· Received a 5 star GRESB rating across both our development portfolio
and standing investments with a score of 96/100 and 88/100 respectively, along
with a CDP rating of B and an EPRA sBPR Gold certificate.
· Design stage BREEAM certificate received for 100 New Bridge Street,
EC4, with an Outstanding rating and a score of 95.3% and Helical's first
NABERS Design for Performance Target Rating of five stars.
· Sustainability Linked £210m Revolving Credit Facility signed
incorporating three ESG targets.
Dividend and Annual General Meeting Timetable
Announcement date 21 May 2025
Ex-dividend date 26 June 2025
Record date 27 June 2025
Last date for DRIP election 14 July 2025
Annual General Meeting 17 July 2025
Dividend payment date 4 August 2025
A Dividend Reinvestment Plan ("DRIP") is provided by Equiniti Financial
Services Limited. The DRIP enables the Company's Shareholders to elect to have
their cash dividend payments used to purchase the Company's shares. More
information can be found at www.shareview.co.uk/info/drip
(http://www.shareview.co.uk/info/drip) .
For further information, please contact:
Helical plc 020 7629 0113
Matthew Bonning-Snook (Chief Executive)
Tim Murphy (Chief Financial Officer)
Address: 22 Ganton Street, London W1F 7FD
Website: www.helical.co.uk (http://www.helical.co.uk)
X: @helicalplc
FTI Consulting 020 3727 1000
Dido Laurimore/Richard Gotla/Andrew Davis
schelical@fticonsulting.com (mailto:schelical@fticonsulting.com)
Results Presentation
Helical will be holding a presentation for analysts and investors starting at
10:30am on Wednesday 21 May 2025 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) and a live webcast and Q&A will also be
available.
Webcast Link:
https://brrmedia.news/HLCL_FY_24/25 (https://brrmedia.news/HLCL_FY_24/25)
1. See Glossary for definition of terms. The "see-through" performance
measures are designed to give additional information about the Group's share
of assets and liabilities, income and expenses in subsidiaries and joint
ventures (see Note 25). The financial statements have been prepared in
accordance with International Accounting Standards ("IAS") in conformity with
the Companies Act 2006. In common with usual practice in our sector,
alternative performance measures have also been provided to supplement IFRS,
including measures which are based on the recommendations of the European
Public Real Estate Association ("EPRA").
Chief Executive's Statement
Overview
Our business is focused on delivering, in joint venture with equity partners,
best-in-class developments in highly desirable central London locations.
Primarily, these will be new office schemes or the comprehensive refurbishment
of existing buildings but increasingly we will also look at alternative uses
within central London, such as the PBSA being planned above Southwark Tube
station, in joint venture with PfL. This long-term joint venture has provided
us with three of our current development schemes and active discussions are
being held over the prospects for other sites within the TfL portfolio,
including both office and PBSA/mixed-use projects. As we consider alternative
opportunities, we will always look to deliver the best value use.
Since 31 March 2024, despite a muted investment market, we have been able to
recycle capital from the portfolio. The Group sold £245m of completed
investment properties during the year and, subsequent to the year end, our
scheme at 100 New Bridge Street, EC4, was sold for £333m (our share:
£166.5m) to an owner-occupier.
In addition to the impact on our balance sheet, with our year end gearing
levels at record lows, these sales have underpinned a return to profitability,
alongside an increase in net asset value and a positive Total Accounting
Return ("TAR"). Importantly, they also provide the Group with all the
anticipated equity it requires to be able to complete its current development
pipeline, including those schemes not yet commenced, providing fuel for our
future growth. Furthermore, on completion of the sale of 100 New Bridge
Street, EC4, there will be funds available for future schemes and surplus cash
available for distribution to Shareholders.
In the year, the Group started construction works on three schemes, at 100 New
Bridge Street, EC4, 10 King William Street, EC4, and Brettenham House, WC2.
All three schemes, totalling over 460,000 sq ft, are scheduled to achieve
practical completion in 2026, when supply of new office space is expected to
be severely constrained. In the financial year to 31 March 2026, we expect to
start works at our two remaining schemes at Southwark, SE1, and Paddington,
W2.
Operationally, we will see the benefits of the action taken to reduce our
overheads and the lower level of gearing in the year to 31 March 2026. The
joint venture structure of our development activities will generate meaningful
development management fees and we will start to recognise promote fees as the
developments progress. At our two remaining income producing investment
assets, The Bower, EC1, and The Loom, E1, financed by the low-interest £210m
Revolving Credit Facility, we have let one of the former WeWork floors, with
remaining unlet space fully refurbished and being actively marketed.
Results for the Year
The profit after tax for the year to 31 March 2025 was £27.9m (2024: loss of
£189.8m). Following disposals, see-through net rental income reduced by 23.3%
to £19.6m (2024: £25.5m) while developments generated a see-through profit
of £0.3m (2024: £0.4m). The see-through net gain on sale and revaluation of
the investment portfolio was £32.2m (2024: loss of £188.6m).
Total see-through net finance costs reduced to £9.2m (2024: £11.1m),
reflecting a lower level of debt. Included in net finance costs is a charge of
£2.1m relating to the amortisation of the original costs of financing the
Revolving Credit Facility, in September 2024. A fall in expected future
interest rates led to a £3.3m charge (2024: £5.6m) from the valuation of the
Group's see-through derivative financial instruments.
Recurring administrative costs for the Group of £8.9m (2024: £9.1m) and the
share of joint ventures of £0.2m (£0.3m) have decreased by 2.7% in total
before an accelerated depreciation charge of £0.4m (2024: £0.7m).
Performance related awards, including National Insurance, increased to £3.3m
(2024: £1.3m).
Since 1 April 2022, Helical has been a REIT and there was a £nil tax charge
(2024: £nil) for the year.
The IFRS basic earnings per share was 22.8p (2024: loss of 154.6p) and EPRA
earnings per share was 2.2p (2024: 3.5p).
Investment property valuations showed an increase on a like-for-like basis of
0.6%, while the development portfolio value increased by 29.1% to provide a
net 5.8% increase overall. The see-through total investment portfolio value
reduced to £535.4m (31 March 2024: £660.6m), mainly reflecting the sales of
25 Charterhouse Square, EC1, and The JJ Mack Building, EC1, offset by the
acquisition of the site at 10 King William Street, EC4, and development
expenditure on the pipeline.
The completed investment portfolio was 78.7% let at 31 March 2025 (31 March
2024: 82.4%) and generated contracted rents of £20.2m (31 March 2024:
£33.0m). This increases to an ERV of £29.3m on the letting of the currently
vacant space and capturing the reversion of the portfolio. The Group's
contracted rent has a Weighted Average Unexpired Lease Term ("WAULT") to
expiry at 31 March 2025 of 3.1 years (31 March 2024: 6.6 years), reflecting
the sale of The JJ Mack Building, EC1, in the year.
The Total Accounting Return, being the growth in the IFRS net asset value of
the Group, plus dividends paid in the year, was 7.2% (2024: -31.7%). Based on
EPRA net tangible assets, the TAR was 6.3% (2024: -31.4%). EPRA net tangible
assets per share increased by 5.1% to 348p (31 March 2024: 331p), with EPRA
net disposal value per share increasing to 347p (31 March 2024: 327p).
Balance Sheet Strength and Liquidity
The Group has a significant level of liquidity with see-through cash and
unutilised bank facilities of £244.5m (31 March 2024: £115.5m), and a
development pipeline with Helical's equity commitment fully funded.
At 31 March 2025, the Group had £61.2m of cash deposits available to deploy
without restrictions and a further £10.0m of rent in bank accounts available
to service payments under loan agreements, cash held at managing agents and
cash held in joint ventures. In addition, the Group held rental deposits from
tenants of £7.8m. Furthermore, the Group had £165.5m of loan facilities
available to draw on.
The see-through loan to value ratio ("LTV") reduced to 20.9% at the balance
sheet date (31 March 2024: 39.5%), with the see-through net gearing, the ratio
of net borrowings to the net asset value of the Group, decreasing to 26.5% (31
March 2024: 65.2%), the lowest gearing ratios in the Group's history.
At the year end the average debt maturity of the Group's secured investment
debt was 2.5 years (31 March 2024: 2.1 years), with two one-year extensions of
the Group's Revolving Credit Facility extending this maturity to 4.5 years.
The average cost of debt of this loan was 3.8% (31 March 2024: 2.9%), with the
increase reflecting the extension of our interest rate hedging to the expiry
of the new facility.
Our Pipeline
The Group seeks to grow its business by realising surpluses from developed and
let investment assets and reinvesting that recycled equity into new
opportunities.
The year to 31 March 2025 has seen the Group's development pipeline
transformed into one of its largest on-site development programmes for a
decade. The Group has started a development programme of over 460,000 sq ft
using funds generated from the sale of investment assets and completed
schemes, supported by joint venture partners providing their share of the
equity required and financed through accretive borrowings. All three schemes
currently under construction will be completed in 2026, at a time when active
leasing demand is 31% ahead of the long-term average, 46% of the 10m sq ft
under construction in central London is pre-let or under offer and the
pipeline looks increasingly undersupplied in our favoured sub-markets.
In addition to these three schemes, the Group currently has two further
opportunities due to start on site in the year to March 2026. At Southwark,
SE1, our joint venture with PfL has obtained planning permission to build 429
student accommodation units with 44 affordable units in an adjoining building.
At Paddington, W2, PfL and Helical have planning permission for a 235,000 sq
ft office building above the eastern entrance of the station alongside the
canal, which is arguably the best of the few remaining sites in Paddington.
Looking forward, there are a number of existing sites currently owned by PfL
which are under active discussion and have the potential for commercial
development or alternative uses. In addition, Helical is actively seeking new
equity-light schemes with other existing landowners who can benefit from
Helical's development expertise alongside our potential equity participation.
Asset Management
With the sales of The JJ Mack Building, EC1, 25 Charterhouse Square, EC1, and
The Powerhouse W4, during the year, the investment portfolio now consists of
The Bower, EC1, and The Loom, E1.
Ten years after completion of the redevelopment works at The Bower's Warehouse
and The Studio and seven years after completion of works at The Tower, we
continue to actively manage this multi-let campus as leases signed, following
completion of the original development works, reach either lease breaks or the
end of their terms. By offering a mix of occupier spaces including Cat A
finish, fitted solutions and our serviced operation Beyond The Bower, we aim
to retain occupiers as they reach these lease ends and attract new tenants
when vacancy occurs, seeking to maximise occupancy throughout the estate.
After several years of construction, the new works carried out by TfL
immediately outside The Tower are now complete and have noticeably improved
the public realm around this 334,000 sq ft campus.
During the year, we have refurbished four of the six floors in The Tower taken
back from WeWork, with the fourth floor subsequently let. The two remaining
floors are operated by Beyond the Bower and provide a valuable serviced
offering to the campus, achieving full occupancy shortly after the year end.
The three floors in The Tower previously let to Farfetch have been assigned to
Fresha.com, following Farfetch's consolidation into the three floors they
occupy in The Warehouse. The 12(th) floor is currently being refurbished and
will shortly be available to let on a fitted basis and the 15(th) floor,
vacated by Infosys following a lease expiry, has been returned to a Cat A
finish and is being marketed. At The Warehouse, there is good interest in the
seventh floor, recently refurbished as a fitted solution following the expiry
of the lease to Stripe in June 2024. Overall, vacancy at The Bower, EC1, has
increased during the year from 9% to 19%.
At The Loom, E1, we have made progress, reducing vacancy from 35% at the start
of the financial year to 29% today, with the building attracting tenants
looking for flexible leases at competitive rents.
Dividends
A year ago, we rebased the dividend to align better with our new strategy. We
will continue to anchor our distributions with the annual Property Income
Distribution ("PID") payment as a minimum, however, in view of the focus on
our development programme, we will also seek to distribute a proportion of
realised EPRA earnings and development profits which are surplus to the
business requirements.
In the year to 31 March 2025, EPRA earnings per share reduced from 3.5p to
2.2p. However, due to the sales of investment assets during the financial year
providing all the equity required to complete our development programme, and
the strong balance sheet and cash surpluses available to the Group, we have
chosen to supplement these earnings with a modest share of the capital profits
made on the sale of our 50% share of The JJ Mack Building, EC1.
In light of the results for the year, the Board will be recommending to
Shareholders an increase in the final dividend to 3.50p (2024: 1.78p) per
share. This final dividend, if approved by Shareholders, will be an ordinary
dividend, paid out of distributable reserves generated from the Group's
activities. The total dividend of 5.00p, including the 1.50p interim dividend
which was wholly paid as a PID, represents a 3.5% increase on last year's
total dividend of 4.83p.
In addition, following the forward sale of 100 New Bridge Street, EC4,
announced in April, Helical committed to returning further capital to
Shareholders following receipt of the net proceeds of the sale, due in April
2026. We expect to recommend a minimum return to Shareholders of 50% of the
realised net profits from the joint venture and will give serious
consideration to paying up to 100% of the realised net profits, subject to the
requirements of the business.
Board
On behalf of the Board of Helical, I wish to thank Tim Murphy, who is stepping
down at the Annual General Meeting, for his dedication and significant
contribution to Helical during his 31 years with the Company, and particularly
his 13-year term as Chief Financial Officer. He has been a great team player
and we shall miss his thoughtful input and guidance and wish him the very best
for the future.
I am pleased we have identified such a strong successor in James Moss. Having
worked with him for the last ten years, I know that he has the skills,
experience, knowledge and business acumen required to fulfil the role of Chief
Financial Officer, lead the finance team and play a key role in delivering our
strategic objectives.
I also wish to thank Sue Clayton, our Senior Independent Director and Chair of
the Property Valuations Committee, who is also stepping down at the Annual
General Meeting, after serving nine years on the Board. Sue has provided the
Board with the benefit of a long career in real estate, most latterly at CBRE,
and we shall miss her wise counsel.
The Opportunity
We have a current pipeline of five development projects with our future equity
requirements fully funded, delivering into a window with strongly predicted
low levels of supply. We also have a strategic joint venture with PfL, with an
ambition to deliver more schemes with them, having recently started on site at
the first office project at 10 King William Street, EC4. Future potential
schemes are already in active discussion.
During the construction phase of these projects, the Group will benefit from
development management fees in recognition of providing our services and
expertise. Working in joint venture also allows us to participate in the
larger scale new build and comprehensive refurbishment projects with bigger
floorplates which appeal to a sophisticated corporate occupier market and
where we feel there will be a shortage of supply in particular sub-markets.
Increasingly, we will also look to structure and participate in equity-light
schemes which have the potential to generate substantial outperformance in the
return on equity invested.
Our balance sheet is in very good shape, with gearing at the lowest level in
the Group's history. Maintaining financial discipline remains at the forefront
of Helical's approach. Recycling equity and seeking third party funding for
future opportunities will allow the Company to grow the business while keeping
gearing within our guidance levels of 15% to 35%.
The value created at The JJ Mack Building, EC1, and 100 New Bridge Street,
EC4, means that we can begin to share our success with our Shareholders, with
realised development profits beginning to contribute to dividends and planned
returns of capital.
With an experienced management team, the funds in place to deliver a
substantial development pipeline and a historically low LTV, Helical is
financially and operationally well placed to deliver a strong performance over
the coming cycle and we are excited by the opportunity the market presents.
Matthew Bonning-Snook
Chief Executive
20 May 2025
Our Market
The past year has seen the central London office market continue to be
characterised by strong occupational demand, driving sharp rental growth for
prime space, alongside more recent encouraging signs of recovery in the
investment market.
Leasing activity remains robust, with structural supply imbalances in key
sub-markets and high levels of demand, particularly for large, high-quality
floorplates. By the end of March 2025, active requirements for space over
100,000 sq ft had reached record highs. With limited availability, occupiers
are increasingly looking ahead at lease events and acting early to secure
preferred options, leading to a notable rise in pre-letting activity, as seen
at our own development at 100 New Bridge Street, EC4.
Momentum is also returning to the investment market, buoyed by the strength of
underlying occupational activity and the stabilisation of the financial
markets. There is broad consensus that 2024 marked the cyclical low, with
investment volumes in Q1 2025 exceeding those recorded in the same period last
year. Investor interest has notably returned recently with global capital
exploring investment into the central London market, and reassuringly the
increasing number of transactions exceeding £100m point to improving
liquidity and renewed confidence.
Although macroeconomic and geopolitical uncertainties persist, the outlook for
London commercial real estate has strengthened. London continues to attract
investors with its transparent legal framework, market stability and relative
resilience. Looking ahead, constrained supply, continued occupier focus on
quality and early-cycle investment opportunities are expected to define market
dynamics through the remainder of 2025.
Occupational Market
Tenant demand in central London remains buoyant, with a sustained focus on
high-quality office space within central core markets. Businesses continue to
reaffirm the importance of the workplace in supporting productivity, culture
and collaboration. This is translating into solid leasing momentum,
particularly centred on new or comprehensively refurbished accommodation that
meets the evolving expectations of modern occupiers. Cushman & Wakefield
report that 78% of occupiers taking space over 5,000 sq ft in 2024 were
upsizing, highlighting growing confidence in their long-term occupational
strategies and the role of the office as a core business asset.
Momentum has continued into 2025. As of March, active demand in central London
reached 12.6m sq ft, as reported by JLL, representing a 31% increase on the
ten-year average. The scale of occupier requirements has also grown
significantly. By the end of the first quarter, there were 36 active
requirements for space over 100,000 sq ft, including 12 in excess of 200,000
sq ft. This marks a clear increase from 25 at the end of 2023 and 29 at the
close of 2024, signalling a continued recovery in large-scale leasing
activity. Occupier take-up has accelerated meaningfully. Space under offer
rose to 4.1m sq ft by the end of the first quarter, the highest level since
the third quarter of 2019, and 46% above the long-term average.
Environmental performance remains a priority. According to Knight Frank,
approximately 65% of office take-up in 2024 comprised brand new or recently
refurbished space, representing the highest share on record. Furthermore, 64%
of the total take-up occurred in buildings rated BREEAM Excellent or
Outstanding, underscoring occupiers' growing focus on sustainability. This
preference has contributed to prime rental growth, with record levels achieved
in the City core.
This weight of demand continues to support strong rental growth. Prime rents
have reached record highs, rising by 10.0% in the City and 6.7% in the West
End over the past year. Recent transactions in the City highlight the premium
being placed on best-in-class space with strong sustainability credentials,
with a record 17 leases exceeding the £100 psf mark in 2024 across both tower
and non-tower space in various sub-markets. Rents of £107-£115 psf were
achieved on four of the ten floors at The JJ Mack Building, EC1, setting
records in the sub-market and demonstrating tenants' willingness to pay a
premium for the quality, amenity-rich space delivered in Helical buildings.
JLL research indicates that of the 10m sq ft currently under construction, 46%
is already pre-let or under offer. Major occupiers are increasingly committing
to space significantly in advance of delivery in order to de-risk their
occupational requirement and to select the right building for their needs.
Alongside this shift, occupiers are placing greater emphasis on counterparty
strength, favouring developers with a proven track record of delivery and
robust financial standing. Helical's scheme at 100 New Bridge Street, EC4,
reflects this confidence. A global institutional investor committed to
forward-purchase the building for their future occupation, reinforcing the
strength of the market and the trust placed in Helical to deliver
best-in-class buildings on programme.
The rising costs of office fit-outs and the increases in business rates are
expected to influence occupiers' short-term decision making when contemplating
moving office and therefore the conversion rate from the current high levels
of active demand into actual take-up may lessen. However, occupiers are also
increasingly aware that sustainable, best-in-class buildings offer long-term
operational cost savings, thereby partially offsetting the upfront cost of
taking new space when assessed over longer time horizons, along with
delivering intangible benefits in relation to recruitment and retention of key
talent.
The leasing outlook for 2025 remains positive. An enduring focus on quality,
sustainability and location is expected to support further leasing activity
and continued rental growth across the prime segment of the market.
Investment Market
The central London office investment market is beginning to see increased
liquidity, supported by the return of core capital. According to JLL,
investment volumes in central London reached £2.3bn in the first quarter of
2025. These figures mark the strongest start to the year for central London
office investments since 2022 and represent an improvement on the same period
in 2024, demonstrating a clear change in investor sentiment.
Throughout 2024, investment activity was largely driven by high-net-worth
individuals, private investors and private equity buyers targeting
opportunities with higher risk-adjusted returns. However, the re-emergence of
institutional capital is becoming evident with a number of recent prime
transactions.
Growth has been driven primarily by larger transactions of prime assets, with
four deals exceeding £100m in the first quarter of 2025 and the average lot
size increasing by 70% compared with the previous year. Developing upon these
themes, Helical exchanged contracts for the forward sale of 100 New Bridge
Street, EC4, to a US-listed S&P 500 company for a net sales price of
£333m. This transaction illustrates the dual themes identified of returning
liquidity for larger lot sizes and scarce occupational supply, leading tenants
to commit earlier to ensure they obtain the best space for their business.
Overseas interest has increased, with central London assets often acquired
through joint venture structures to leverage off local market expertise. This
aligns well with Helical's skillset, as we continue to look for strategic
partnerships to maximise the returns from our equity investments. Over the
last 30 years, we have successfully executed joint ventures with 46 different
partners, demonstrating a strong track record across a range of partnership
structures, and we believe that these market characteristics will present
further opportunities.
According to Knight Frank, London has retained its position as the world's
leading city for cross-border real estate investment for the fifth consecutive
year. Investor sentiment has strengthened, with many now considering the
pricing correction as largely complete. Prime yields, which softened in 2022
and 2023, have stabilised. The forward sale of 100 New Bridge Street, EC4,
stands as a positive bellwether for pricing discovery, with the asset
transacting at a 5.00% capitalisation yield.
Development Pipeline
In the first quarter of 2025, central London office supply declined by 1% to
22.5m sq ft, while the vacancy rate improved slightly to 8.9%, according to
JLL. However, of particular relevance to Helical, new-build vacancy held
steady at 1.4% while newly refurbished supply rose to 1.9%, following just two
completions. These figures highlight the limited availability of high-quality
space.
Looking forward, this imbalance is set to persist. Beyond 2025, the volume of
major new developments falls considerably. Knight Frank projects a shortfall
of between 5-7m sq ft of Grade A office space by 2028, whilst 52.9m sq ft of
lease expiries are expected between 2025 and 2029. As a result, the
undersupply of prime space may continue well into 2029 and beyond.
Despite strong demand drivers, new development continues to face challenges.
Although construction cost inflation has moderated, overall costs remain high
and are exacerbated by labour shortages, the susceptibility of the supply
chain to disruption and contractors being increasingly selective as to which
projects to take on. Delays in planning and increasing regulatory requirements
are also impacting delivery timelines.
In response, landowners must undertake a disciplined appraisal of each
opportunity, weighing sub-market dynamics, occupier demand, capital
expenditure, and the feasibility of delivering an alternative use, including
the likelihood of securing planning consent. Where office development no
longer offers the highest returns and best use, it is appropriate to consider
alternatives that align more closely with demand fundamentals and offer
stronger long-term value. Helical's Southwark, SE1, scheme, being delivered in
partnership with Places for London, exemplifies this flexible, value-driven
approach. Planning has now been granted for a 429 room PBSA development,
replacing a previously consented office scheme. This repositioning reflects
our ability to respond to evolving market conditions and unlock value through
strategic land use decisions.
At the same time, many obsolete office buildings that cannot viably be
upgraded are being repurposed, placing further pressure on future supply.
Occupiers continue to seek buildings that meet the highest standards of
design, sustainability and amenity, and competition for such space is expected
to increase. With a current pipeline of five schemes and further opportunities
actively under consideration, we are well placed to meet occupier expectations
and take full advantage of the supply constrained environment.
Conclusion
Our strategy remains focused on delivering highly sustainable, best-in-class
space in prime central London sub-markets, where occupier demand and rental
growth prospects are strongest.
While our core focus remains the office sector, we retain the flexibility to
diversify selectively into alternative uses where this aligns with our
expertise and enhances long-term returns.
Supported by our strategic joint venture with PfL, our active development
pipeline and our strong delivery track record, Helical is well positioned to
benefit from the structural trends shaping the market and to deliver continued
value for our Shareholders.
Sustainability and Net Zero Carbon
Our commitment to delivering and operating best-in-class, smart, sustainable
offices aligns with occupiers' continued demand for high-quality buildings
across London. This has been demonstrated at 100 New Bridge Street, EC4, where
the forward sale to an owner-occupier has reaffirmed the market demand for
buildings with the highest sustainability credentials. 100 New Bridge Street,
EC4, received an Outstanding Design Stage BREEAM certificate with a score of
95.3%. Likewise, the receipt of Helical's first NABERS Design for Performance
Reviewed Target Rating of five stars further demonstrates its energy
efficiency and commitment to reducing carbon emissions.
In partnership with PfL, Helical is responsible for delivering three schemes
at 10 King William Street, EC4, Paddington, W2, and Southwark, SE1.
Sustainability has been a key driving force throughout the design of these
buildings and will ultimately lead to Helical delivering buildings with
exemplary ESG credentials, with all schemes targeting EPC A, NABERS 5* and
above, BREEAM Outstanding/Home Quality Mark of 4.5* and WELL Shell and Core
Platinum. All three sites will promote circular economy principles, operate to
the highest efficiency with the aid of all-electric solutions and on-site
renewables, and promote health and wellbeing.
Our investment portfolio has seen significant disposals in the year, with the
sales of 25 Charterhouse Square, EC1, The JJ Mack Building, EC1, and The Power
House, W4, resulting in only two remaining assets - The Bower, EC1, and The
Loom, E1. At The Bower, EC1, we are currently undertaking a feasibility study
to remove gas from the building and replace this with a hybrid solution using
air source heat pumps. At The Loom, E1, we are considering a NABERS Energy
Rating for the building and, if we have sufficient data and metering
information, would look to submit the building for an assessment in the coming
months.
Alongside embedding our environmental ambitions within the development
programme, we also recognise the importance of engaging with communities and
creating social value to our buildings and wider business. We are pleased to
be partnering with PfL on their Educational Engagement Programme with the aim
to inspire the next generation of young people into the built environment.
Working with the Construction Youth Trust, the appointed delivery partner, the
programme has the ambition of reaching over 6,000 young Londoners. Helical has
been supporting this ambition by hosting tours, attending workshops and
providing mentorship and work experience.
Our sustainability strategy, Built for the Future, has played a critical role
in putting sustainability front and centre of all our business activities.
Over the past five years we have achieved a number of milestones including a
GRESB rating of 5*, CDP rating of B and an EPRA sBPR Gold certificate while
also reducing our carbon emissions by 50% (Scope 1, 2 and 3 excluding upfront
embodied carbon) and energy consumption by 45%.
As we progress our delivery of five schemes across London, we are gaining
greater insight and understanding of ESG risks and opportunities. Along with
the fact that our core strategy is five years old, we feel that now is the
right time to review and refresh our sustainability strategy. As such, we
expect to announce our new ambitious, but achievable, strategy over the coming
year.
Performance Measurements
We measure our performance against our strategic objectives, using several
financial and non-financial Key Performance Indicators ("KPIs").
The KPIs have been selected as the most appropriate measures to assess our
progress in achieving our strategy, successfully applying our business model
and generating value for our Shareholders.
As discussed in the Chief Executive's Statement, the financial measures show a
return to profitability as the Group begins to see the benefits of its
development pipeline.
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 year. The metric measures the growth in
Shareholders' funds each period and is expressed as an absolute measure.
The Group targets a Total Accounting Return of 5-10%.
The Total Accounting Return on IFRS net assets in the year to 31 March 2025
was 7.2% (2024: -31.7%).
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
% % % % %
Total Accounting Return on IFRS net assets 7.2 -31.7 -9.4 15.0 3.3
EPRA Total Accounting Return
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 the EPRA net tangible asset value at the
beginning of the year.
The Group targets an EPRA Total Accounting Return of 5-10%.
The Total Accounting Return on EPRA net assets in the year to 31 March 2025
was 6.3% (2024: -31.4%).
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
% % % % %
Total Accounting Return on EPRA net tangible assets 6.3 -31.4 -12.1 10.2 4.5
EPRA Net Tangible Asset Value per Share
The Group's main objective is to maximise growth in net asset value per share,
which we seek to achieve through the generation of development surpluses,
increases in investment portfolio values and retained earnings from other
property related activity. EPRA net tangible asset value per share is the
property industry's preferred measure of the proportion of net assets
attributable to each share as it includes the fair value of net assets on an
ongoing long-term basis. The adjustments to net asset value to arrive at this
figure are shown in Note 23 to the financial statements.
The Group targets increasing its net assets, of which EPRA net tangible asset
growth is a key component.
The EPRA net tangible asset value per share at 31 March 2025 increased by 5.1%
to 348p (31 March 2024: 331p).
2025 2024 2023 2022 2021
p p p p p
EPRA net tangible asset value per share 348 331 493 572 533
Total Shareholder Return
Total Shareholder Return is a measure of the return on investment for
Shareholders. It combines share price appreciation and dividends paid to show
the total return to Shareholders expressed as an annualised percentage.
The Group targets being in the upper quartile when compared to its peers.
The Total Shareholder Return in the year to 31 March 2025 was -3.9% (2024:
-27.3%).
Performance measured over
1 year 3 years 5 years 10 years 15 years 20 years
Total return Total return Total return Total return Total return Total return
pa % pa % pa % pa % pa % pa %
Helical plc(1) -3.9 -19.3 -8.3 -4.2 -1.2 1.4
UK equity market(2) 10.5 7.2 12.0 6.2 6.9 7.0
Listed Real Estate Sector Index(3) -6.3 -10.2 0.7 -1.2 4.2 1.7
1. Growth over all years to 31/03/25.
2. Growth in FTSE All-Share Return Index over all years to 31/03/25.
3. Growth in FTSE 350 Real Estate Super Sector Return Index over all
years to 31/03/25.
MSCI Property Index
MSCI produces several independent benchmarks of property returns that are
regarded as the main industry indices.
MSCI has compared the ungeared performance of Helical's total property
portfolio against that of portfolios within MSCI for over 20 years. Helical's
ungeared performance for the year to 31 March 2025 was 10.0% (2024: -20.3%).
This compares to the MSCI Central London Offices Total Return Index of 4.1%
(2024: -5.6%) and the upper quartile return of 5.4% (2024: -2.9%).
Helical's unleveraged portfolio returns to 31 March 2025 were as follows:
1 year 3 years 5 years 10 years 20 years
% % % % %
Helical 10.0 -6.1 -0.4 5.7 8.1
MSCI Central London Offices Total Return Index 4.1 -3.5 -1.0 2.9 6.6
Source: MSCI
Average Length of Employee Service and Average Staff Turnover
A high level of staff retention remains a key feature of Helical's business.
The Group retains a highly skilled and experienced team with an increasing
length of service.
The Group targets staff turnover to be less than 10% per annum.
The average length of service of the Group's employees at 31 March 2025 was
12.1 years and the average staff turnover during the year to 31 March 2025 was
8.7%.
2025 2024 2023 2022 2021
Average length of service at 31 March - years 12.1 12.4 13.2 11.8 11.0
Staff turnover during the year to 31 March - % 8.7 16.8 7.7 3.7 3.6
BREEAM and EPC Ratings
BREEAM is an environmental impact assessment methodology for real estate
assets. It sets out best practice standards for the environmental performance
of buildings through their design, specification, construction and operational
phases. Performance is measured across a series of ratings, Pass, Good, Very
Good, Excellent and Outstanding.
The Group targets a BREEAM rating of Outstanding on all major refurbishments
and new developments.
At 31 March 2025, seven (31 March 2024: five) of our buildings had achieved,
or were targeting, a BREEAM certification of Excellent or Outstanding.
Building BREEAM rating EPC rating
Completed properties ( )
The Warehouse and Studio, EC1 Excellent (2014) B
The Tower, EC1 Excellent (2014) B
Development pipeline
100 New Bridge Street, EC4 Outstanding (2018)(1) A(2)
10 King William Street, EC4 Outstanding (2018)(2) A(2)
Brettenham House, WC2 Outstanding (2014)(2) A(2)
Southwark, SE1 Outstanding (2021)(2) A(2)
Paddington, W2 Outstanding (2021)(2) A(2)
1. Design Stage Certificate.
2. These are the targeted ratings upon submission
for assessment.
At The Loom, E1, it was not possible to obtain a BREEAM certification at the
design or development stage, however, the building has achieved a BREEAM In
Use rating of Very Good, which is a high accolade given the listed status of
the building, and an EPC rating of B.
Energy Performance Certificates ("EPC") provide ratings on a scale of A-G on a
building's energy efficiency and are required when a building is constructed,
sold or let. In the year, the EPC certificate at The Tower, EC1, was renewed,
retaining its B rating under the more stringent Part L 2021 requirements.
Helical's Property Portfolio - 31 March 2025
Property Overview
We seek to maximise returns through delivering capital gains from our
development activity and income growth from active asset management. Focused
on central London, the Helical portfolio comprises investment assets we have
created and an exciting pipeline of development schemes, each designed to the
very highest standards to enable their occupiers to thrive and benefitting the
communities in which they are located. This pipeline includes three schemes
that have started on site and will deliver over 460,000 sq ft of best-in-class
offices in 2026 into a supply constrained market and two further schemes that
will be acquired over the next 12 months. We are actively looking to add to
our pipeline with further joint ventures and equity-light opportunities.
Development Portfolio
100 New Bridge Street, EC4
In May 2024, we signed a joint venture agreement with Orion Capital Managers,
selling a 50% interest in the site for £55m.
100 New Bridge Street is a 194,500 sq ft office development that will deliver
best-in-class space once completed in April 2026. The scheme is located
adjacent to City Thameslink and a short walk from Farringdon and Blackfriars
stations and benefits from extensive redevelopment in the immediate locality,
including the new Blackfriars Bridge foreshore.
The building is currently undergoing a comprehensive refurbishment. Main
contractor Mace has completed the initial works to strip the building back to
its frame and the new structural works topped out in April 2025, achieving a
key project milestone in line with the expedited programme. Once completed,
the development will span over ground plus ten upper floors and will include
four terraces, including an exceptional eighth floor terrace of 7,450 sq ft
which will provide magnificent views of St. Paul's Cathedral and across
central London. The scheme has received a BREEAM Outstanding Design Stage
certificate and a NABERS Design for Performance Reviewed Target Rating of 5*
and is targeting EPC A, WELL Shell and Core Platinum and WiredScore Platinum.
After the year end, we exchanged contracts with an undisclosed party for the
forward sale of Helical Bicycle 3 Limited, the corporate entity that owns 100
New Bridge Street, EC4, for the purchaser's own occupation. The purchaser is
an S&P 500 listed global business, with net assets of over $10bn.
The property's forward sale net price of £333m (Helical share: £166.5m)
reflects a capital value of £1,712 psf, which represents a capitalisation
yield of 5.0%, before deducting corporate sale costs and a notional rent free
allowance. The sale will complete once the building achieves practical
completion.
Brettenham House, WC2
Work continues on a comprehensive refurbishment of this 1930s heritage office
building located on the Thames between The Savoy and Somerset House at
Waterloo Bridge. Occupying a prime location on the "elbow" of the River Thames
with river views on each floor, the scheme will provide 128,000 sq ft of
office and retail space incorporating enhanced amenities, which include new
ninth floor terraces and adjacent office space, triple height reception space
and a new separate entrance accessed via Savoy Street.
The strip out and demolition period has now completed, and main construction
works are ongoing on site, including the formation of the new core and
reception entrances. The building is targeting EPC A, BREEAM Outstanding,
NABERS 5* and WELL Shell and Core Platinum.
Helical has signed a development management agreement with the owner,
committing to contributing £12.5m during the construction phase to Q2 2026,
when practical completion of the works is due. This equity-light scheme is
generating development management fees during this construction phase, which
will total £2.5m, and a profit share based on rental performance once the
building is successfully let.
Places for London Joint Venture
Helical has formed a long-term partnership with PfL, the wholly owned property
company of TfL, to deliver high-quality, sustainable developments in prime
locations with exceptional transport connectivity. Construction is now
underway at the first of our three initial sites, 10 King William Street, EC4,
with work to commence at both Southwark, SE1 and Paddington, W2 in the next 12
months.
10 King William Street, EC4
The first site within our joint venture with PfL was acquired on 1 October
2024 and significant progress has been made in the subsequent six months.
On-site, the initial works package to form the ground floor slab and core is
due to complete shortly and on programme. McLaren were appointed as the main
contractor during the year and are now commencing the main construction works.
In February, alongside signing the main contract, the joint venture entered
into a four-year £125m development financing arrangement with HSBC to fund
the construction of the scheme. This agreement represents the lender's first
speculative office development loan and reflects increasing confidence in the
office sector.
The development is due to reach practical completion in December 2026 and will
comprise an eight-storey, best-in-class office building located above the
newly opened Bank station entrance on Cannon Street. It will provide
approximately 140,000 sq ft of high-quality office accommodation, along with
more than 7,000 sq ft of external terracing and 2,000 sq ft of retail space at
ground floor level. The scheme will also include a series of public realm
enhancements, such as the transformation of Abchurch Lane into a
pedestrian-prioritised shared space, improved cycle access, high-quality
end-of-journey facilities and a dedicated wellness lounge on the mezzanine
level. The building is targeting EPC A, BREEAM Outstanding, NABERS 5* and WELL
Shell and Core Platinum.
Southwark, SE1
Located directly above Southwark Underground station, a resolution to grant
planning permission was secured at committee in March 2025 for a revised
planning application submitted in September 2024. The scheme will deliver a
PBSA development comprising 429 studio units, alongside a separate building
providing 44 affordable homes. Site drawdown is targeted for July 2025, with
completion anticipated in mid-2028. The buildings are targeting EPC A, BREEAM
Outstanding and Home Quality Mark 4.5*.
The PBSA building has been designed by AHMM to deliver best-in-class
accommodation, featuring an optimised mix of small, medium and large studios
with high-quality shared amenity space and supporting services. The building
has been conceived as a landmark addition to the area, while remaining
sympathetic to the station structure it sits above, with environmental and
sustainability considerations embedded throughout the design. A retail unit
will also be delivered at ground floor level.
Paddington, W2
This development, which is located above the eastern side of Paddington
station, will deliver a 19-storey, 235,000 sq ft office building with
accommodation starting on the fourth floor. Positioned in the heart of the
Paddington Regeneration Area, the scheme will benefit from exceptional
transport connectivity and an attractive canal-side setting. The building is
targeting EPC A, BREEAM Outstanding, NABERS 5.5* and WELL Shell and Core
Platinum. Practical completion is expected in Q4 2028.
Significant progress has been made on the Paddington scheme over the year.
Planning consent has been secured for the introduction of external terracing
on each office floor as well as a further application which secured an
enhanced arrival experience and upgraded end-of-trip facilities. The main
contractor tender process is now underway, and early engagement has commenced
with potential development finance providers. Interface and enabling works are
due to commence in June 2025, accelerating the programme ahead of targeted
site drawdown in January 2026.
Investment Portfolio
The Tower, The Bower, EC1
The Tower is the largest building on The Bower campus and offers 171,432 sq ft
of office space arranged over basement, ground and 17 upper floors. The Tower
also offers 10,905 sq ft of retail space across two units let to food and
beverage operators Serata Hall and Wagamama.
Asset management activity continued during the year with a focus on
refurbishing and letting the six floors following the forfeiture of the WeWork
leases in the previous year. The fourth floor (9,499 sq ft) was refurbished
and let on a five-year lease at £72.50 psf, in line with current ERVs. The
flexible offering at Beyond The Bower on the first and second floors (19,922
sq ft) became fully occupied shortly after the year end. The third, fifth and
sixth floors (29,614 sq ft) have been fully refurbished on a fitted basis and
are currently being marketed, with good levels of interest from potential
tenants.
Farfetch, who occupied six floors across the wider Bower campus, consolidated
into their three floors in The Warehouse and assigned floors seven, eight and
nine of The Tower to Fresha.com.
Further activity saw a lease renewal with OpenPayd extending their occupation
for five years (10,046 sq ft) at £80 psf, in line with current ERVs.
During the year, two floors became available, totalling 20,903 sq ft. Stenn
entered into an unforeseen administration and vacated the 12(th) floor, whilst
the 15(th) floor saw a lease expiry. Following the movements in the year, the
vacancy rate currently stands at 28%.
The Warehouse and The Studio, The Bower, EC1
The Warehouse comprises 122,858 sq ft of grade A office accommodation arranged
over basement, ground and nine upper floors. The Studio provides a further
18,283 sq ft of fully let, self-contained grade A office accommodation
arranged over ground and three upper floors.
There is one floor of The Warehouse currently vacant, which has been fully
refurbished on a fitted basis, with viewings now ongoing. There is 10,298 sq
ft of fully let retail space, resulting in an overall vacancy rate across The
Warehouse and The Studio of 8%.
The Loom, E1
The Loom is a former Victorian wool warehouse offering 108,487 sq ft of office
space plus a 1,313 sq ft café. At the end of the year, vacancy is 28%, down
from 35% at 31 March 2024. There are currently a number of viewings ongoing
and we continue to actively manage the asset to reduce the vacancy through
flexible lease offerings.
Assets Disposed of in the Year
The JJ Mack Building, EC1
The JJ Mack Building is a best-in-class 206,085 sq ft office developed by
Helical, in joint venture with AshbyCapital. On 1 November 2024, we announced
the completion of the sale of our 50% interest in Charterhouse Place Limited,
the owner of The JJ Mack Building, to AshbyCapital for £71.4m. The
transaction reflected a value of £139.2m for Helical's 50% share of the
property. The notional net initial yield on sale of 5.35% agreed with the
purchaser was increased by 50 bps to 5.85% to reflect the sale of a 50% share
in the building.
The building achieved practical completion in September 2022 and subsequently
was occupied by a range of leading tenants, including Sainsbury's and Partners
Group. The building achieved record rental levels for the sub-market, with a
diverse group of tenants attracted to the building due to its prominent
location adjacent to the Farringdon Elizabeth Line and its market leading
sustainability and technology credentials, demonstrated by a 96.42% BREEAM
Outstanding score, EPC A and NABERS 5* ratings.
During the year, prior to disposal of our interest, we leased 45,624 sq ft of
space at 1.8% above 31 March 2024 ERVs, with record contracted rents of £115
psf achieved on the 10(th) floor letting (13,409 sq ft). These lettings took
the building to 90% let and generating gross contracted rent of £17.4m at the
sale date.
25 Charterhouse Square, EC1
25 Charterhouse Square is a 42,921 sq ft office building, including 4,566 sq
ft of retail space, overlooking the historic Charterhouse Square and adjacent
to the Farringdon East Elizabeth Line station. On 25 April 2024, we completed
the sale of the long leasehold to Ares Management, a real estate fund manager,
for £43.5m.
The Power House, W4
The Power House is a listed building, providing 21,268 sq ft of office space
and recording studio space, on Chiswick High Road and on sale was fully let on
a long lease to Metropolis Music Group.
During the year, we sold our freehold interest in The Power House to Riverside
Capital's private investor syndicate for £7m, reflecting a net initial yield
of 7.3%.
Portfolio Analytics
See-through Total Portfolio by Fair Value
Investment % Development % Total
£m £m £m %
London Offices
- Completed properties 379.8 71.0 - - 379.8 70.3
- Development pipeline 155.5 29.0 4.6(1) 91.2 160.1 29.6
Total London 535.3 100.0 4.6 91.2 539.9 99.9
Other 0.1 0.0 0.4 8.8 0.5 0.1
Total 535.4 100.0 5.0 100.0 540.4 100.0
1. Developments represent planning and
professional fees incurred on Southwark, SE1, and Paddington, W2, prior to
their planned future acquisition.
See-through Land and Development Portfolio
Book value Fair value Surplus
£m £m £m
London Offices 4.6 4.6 -
Other 0.1 0.4 0.3
Total 4.7 5.0 0.3
Capital Expenditure
We have a committed and planned development and refurbishment programme.
Property Capex Proposed equity Proposed debt Development Completion
date
budget to come to come to come status
(Helical share) (Helical share) (Helical share)
£m £m £m
Investment - committed
-100 New Bridge Street, EC4 31.9 - 31.9 Under development Q2 2026
-Brettenham House, WC2 8.9 8.9 - Under development Q2 2026
-10 King William Street, EC4 54.7 - 54.7 Under development Q4 2026
-Southwark, SE1 10.9 10.9 - Q4 2025 Q3 2028
-Paddington, W2 30.2 30.2 - Q1 2026 Q4 2028
Investment - planned
- Southwark, SE1 66.0 -(1) -(1) Q4 2025 Q3 2028
- Paddington, W2 130.4 42.3 88.1(2) Q1 2026 Q4 2028
1. Assumes development is forward funded.
2. Assumes 55% LTC debt facility arranged for future scheme.
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 properties 71.0 18.6 100.0 20.2 100.0 29.3 62.8 1.0
- Development pipeline 29.0 - - - - 17.3 37.0 9.7
Total London 100.0 18.6 100.0 20.2 100.0 46.6 99.8 3.0
Other 0.0 0.0 0.0 0.0 0.0 0.1 0.2 0.0
Total 100.0 18.6 100.0 20.2 100.0 46.7(1) 100.0 3.0
1. Reduces to £37.0m on sale of 100 New Bridge Street,
EC4.
See-through
total portfolio contracted rent
£m
Rent lost at break/expiry (4.4)
New lettings 3.6
Net decrease in the year from asset management activities (0.8)
Contracted rent reduced through disposals (12.0)
Net decrease in contracted rents in the year (12.8)
Investment Portfolio
Valuation Movements
Valuation change Valuation change Investment portfolio Investment portfolio
incl sales and purchases excl sales and purchases weighting weighting
% % 31 March 2025 31 March 2024
% %
London Offices
- Completed properties 0.3 0.6 71.0 85.0
- Development pipeline 16.9(1) 29.1(1) 29.0 15.0
Total 3.5 5.8 100.0 100.0
1. Reflects revaluation gains recognised on 100 New
Bridge Street, EC4, forward sold and due to achieve practical completion in
April 2026.
Portfolio Yields
EPRA topped EPRA topped Reversionary Reversionary True equivalent yield True equivalent yield
up NIY up NIY yield yield 31 March 31 March
31 March 31 March 31 March 31 March 2025 2024
2025 2024 2025 2024 % %
% % % %
London Offices
- Completed properties 5.0 5.1 7.1 6.9 7.1 6.5
- Development pipeline n/a n/a 6.1 6.1 5.3 5.7
Total 5.0 5.1 6.5 6.6 6.0 6.3
See-through Capital Values, Vacancy Rates and Unexpired Lease Terms
Capital value Capital value Vacancy rate Vacancy rate WAULT WAULT
31 March 31 March 31 March 31 March 31 March 31 March
2025 2024 2025 2024 2025 2024
£ psf £ psf % % Years Years
London Offices
- Completed properties 856 982 21.3 17.6 3.1 6.6
- Development pipeline 462 508 n/a n/a n/a n/a
Total 686 880 21.3 17.6 3.1 6.6
See-through Lease Expiries or Tenant Break Options
Year to Year to Year to Year to Year to 2030
2026 2027 2028 2029 2030 onward
% of rent roll 5.6 10.9 55.9 11.6 11.0 5.0
Number of leases 11 11 22 5 5 7
Average rent per lease (£) 101,932 199,583 510,730 466,332 443,985 143,736
Contracted rent (£) 1,121,249 2,195,415 11,236,059 2,331,658 2,219,926 1,006,154
Top 10 Tenants
We have a strong rental income stream and a diverse tenant base. The top 10
tenants account for 73.2% of the total rent roll.
Tenant Tenant industry Contracted rent Rent roll
Rank £m %
1 Farfetch Online retail 2.3 11.3
2 VMware Technology 2.2 10.8
3 Fresha.com Technology 2.0 10.2
4 Verkada Technology 1.9 9.6
5 Infosys Technology 1.4 7.0
6 Intercom Software Technology 1.2 5.8
7 Allegis Professional services 1.1 5.3
8 Dentsu Marketing 1.0 5.2
9 Openpayd Technology 0.8 4.0
10 Incubeta Marketing 0.8 4.0
Total 14.7 73.2
Letting Activity - New Leases
Area Area Contracted rent Rent Increase/(decrease) to Average lease term to expiry
Sq ft (Helical share) (Helical share) £ psf 31 March 2024 ERV Years
Sq ft £ %
Investment Properties
Completed - offices
- The Bower, EC1 9,499 9,499 689,000 72.5 3.6 5.0
- The Loom, E1 18,918 18,918 804,000 42.5 (3.8) 5.0
- The JJ Mack Building, EC1 44,104 22,052 2,084,000 94.5 1.2 12.3
Offices Total 72,521 50,469 3,577,000 70.9 0.5 10.4
Completed - retail
- The JJ Mack Building, EC1 1,520 760 50,000 65.8 31.6 5.0
Retail Total 1,520 760 50,000 65.8 31.6 5.0
Total 74,041 51,229 3,627,000 70.8 0.8 10.3
Financial Review
IFRS Performance EPRA/See-through Performance
Profit after Tax EPRA Profit
£27.9m (2024: loss of £189.8m)
£2.7m (2024: £4.3m)
Earnings per Share (EPS) EPRA EPS
22.8p (2024: loss 154.6p)
2.2p (2024: 3.5p)
Total Dividend Paid Total Dividend Declared
3.28p (2024: 11.55p) 5.00p (2024: 4.83p)
Diluted NAV per Share EPRA NTA per Share
346p (2024: 326p)
348p (2024: 331p)
Total Accounting Return Total Accounting Return on EPRA NTA
7.2% (2024: -31.7%) 6.3% (2024: -31.4%)
Total Net Assets Total EPRA Net Tangible Assets
£426.1m (2024: £401.1m) £428.2m (2024: £406.5m)
Property Portfolio at Fair value See-through Property Portfolio
£380.3m (2024: £522.7m) £540.4m (2024: £662.3m)
Net Borrowings See-through Net Borrowings
£97.2m (2024: £199.0m) £112.8m (2024: £261.6m)
LTV Ratio See-through Net Gearing
20.9% (2024: 39.5%) 26.5% (2024: 65.2%)
Overview
The results for the year show a welcome return to profitability after two
years of yield expansion and consequent valuation declines. Investment sales
of £245m impacted earnings but generated realised capital profits, and have
reduced our LTV to its lowest level, strengthening the balance sheet and
providing all the equity required for the Group's participation in its current
development pipeline. Subsequent to the year end, 100 New Bridge Street, EC4,
has been forward sold for £333m (Helical share: £166.5m) and following
completion, expected in April 2026, the Group will have additional equity to
invest in new opportunities and surplus funds available to distribute to
Shareholders.
Looking forward, the action taken to reduce overheads, along with the lower
level of gearing and expected recognition of development management fees and
promotes, add up to increased earnings over the next few years. With the
potential for further surpluses from the development pipeline, the prospects
for the foreseeable future are encouraging.
Results for the Year
The IFRS profit for the year of £27.9m (2024: loss of £189.8m) includes
revenue from rental income, service charges and development management fees of
£32.0m, offset by direct costs of £15.4m to give a net property income of
£16.6m (2024: £25.4m). There was a net gain on sale and revaluation of
investment properties of £12.0m (2024: loss of £181.2m) and the gain from
joint venture activities was £20.8m (2024: loss of £9.3m). Administrative
expenses of £10.7m (2024: £11.0m) and net finance costs of £7.5m (2024:
£7.9m) were further increased by a loss in the fair value of derivatives of
£3.3m (2024: £5.6m).
The Group holds a significant proportion of its property assets in joint
ventures. As the risks and rewards of ownership of these underlying properties
are the same as those it wholly owns, Helical supplements its IFRS disclosure
with a "see-through" analysis of alternative performance measures, which looks
through the structure to show the Group's share of the underlying business.
The see-through results for the year to 31 March 2025 include net rental
income of £19.6m, a net gain on sale and revaluation of the investment
portfolio of £32.2m and development profits of £0.3m, leading to a Total
Property Return of £52.1m (2024: -£162.7m). Other income of £0.1m less
total see-through administrative costs of £10.9m (2024: £11.3m) and
see-through net finance costs of £9.2m (2024: £11.1m) plus see-through
losses from the mark-to-market valuation of derivative financial instruments
of £3.3m (2024: £5.6m) contributed to an IFRS profit of £27.9m (2024: loss
of £189.8m).
The Company has proposed a final dividend of 3.50p per share (2024: 1.78p)
which, if approved by Shareholders at the 2025 AGM, will be payable on 4
August 2025. The total dividend paid or payable in respect of the year to 31
March 2025 will be 5.00p (2024: 4.83p), an increase of 3.5%.
The EPRA net tangible asset value per share increased by 5.1% to 348p (31
March 2024: 331p).
The Group's investment portfolio, including its share of assets held in joint
ventures, decreased to £535.4m (31 March 2024: £660.6m, including asset held
for sale), primarily due to disposals with a book value of £245.6m, net gain
on revaluation of the investment portfolio of £24.6m and letting costs of
£0.2m, offset by acquisitions of £87.4m and capital expenditure on the
investment portfolio of £51.3m.
The Group's see-through loan to value at 31 March 2025 was 20.9% (31 March
2024: 39.5%). The Group's weighted average cost of secured investment debt at
31 March 2025, including commitment fees, was 3.8% (31 March 2024: 2.9%) and
the weighted average debt maturity was 2.5 years (31 March 2024: 2.1 years).
The Group's share of the weighted average cost of secured development debt in
joint ventures at 31 March 2025, excluding commitment fees, was 8.5% (31 March
2024: nil) and the weighted average debt maturity was 3.5 years (31 March
2024: 1.3 years).
At 31 March 2025, the Group had unutilised bank facilities of £165.5m and
cash of £79.0m on a see-through basis. These are primarily available to fund
future property acquisitions and capital expenditure.
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 administrative and finance costs.
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
£m £m £m £m £m
Total Property Return 52.1 -162.7 -51.4 89.5 48.6
The net rental income, development profits and net gains on sale and
revaluation of our investment portfolio, which contribute to the Total
Property Return, provide the inputs for our performance as measured by MSCI.
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
% % % % %
Helical's unleveraged portfolio 10.0 -20.3 -5.6 10.7 7.0
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 year. The metric measures the growth in
Shareholders' funds each year and is expressed as an absolute measure.
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
% % % % %
Total Accounting Return on IFRS net assets 7.2 -31.7 -9.4 15.0 3.3
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 year,
expressed as a percentage of the EPRA net tangible asset value at the
beginning of the year.
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
% % % % %
Total Accounting Return on EPRA net tangible assets 6.3 -31.4 -12.1 10.2 4.5
Earnings/(Loss) per Share
The IFRS earnings per share improved from a loss of 154.6p to earnings of
22.8p and is based on the after tax profit attributable to ordinary
Shareholders divided by the weighted average number of shares in issue during
the year.
On an EPRA basis, the earnings per share was 2.2p compared to an earnings per
share of 3.5p in 2024, reflecting the Group's share of net rental income of
£19.6m (2024: £25.5m) and development profits of £0.3m (2024: £0.4m), but
excluding gains on sale and revaluation of investment properties of £32.2m
(2024: losses of £188.6m).
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
p p p p p
EPRA earnings per share 2.2 3.5 9.4 5.2 (1.8)
Net Asset Value
IFRS diluted net asset value per share increased by 6.1% to 346p per share (31
March 2024: 326p) and is a measure of Shareholders' funds divided by the
number of shares in issue at the year end, adjusted to allow for the effect of
all dilutive share awards.
EPRA net tangible asset value per share increased by 5.1% to 348p per share
(31 March 2024: 331p). This movement arose principally from a total
comprehensive income of £27.9m (2024: expense of £189.8m), less £4.0m of
dividends (2024: £14.4m).
Year to Year to Year to Year to Year to
2025 2024 2023 2022 2021
p p p p p
EPRA net tangible asset 348 331 493 572 533
EPRA net disposal value per share increased by 6.1% to 347p per share (31
March 2024: 327p).
Income Statement
Rental Income and Property Overheads
Gross rental income for the Group, before adjusting for lease incentives, in
respect of wholly owned properties decreased to £21.8m (2024: £33.3m).
Offset against gross rental income are lease incentives of £0.6m reflecting
the net reversal of previously recognised rental income accrued in advance of
receipt (2024: £5.8m). Overall this resulted in a gross rental income of
wholly owned properties of £21.2m (2024: £27.5m).
2025 2024
£000
£000
Gross rental income (excluding lease incentives) 21,835 33,344
Lease incentives (598) (5,830)
Total gross rental income 21,237 27,514
Gross rental income in joint ventures increased to £3.7m (2024: £2.0m) as
the Group continued to make letting progress at The JJ Mack Building, EC1,
prior to its sale.
Property overheads in respect of wholly owned assets and in respect of those
assets in joint ventures increased to £5.4m (2024: £4.0m), reflecting
increased vacancy in the portfolio.
Overall, see-through net rents decreased by 23% to £19.6m (2024: £25.5m).
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 2028 on a see-through basis, based on the tenant leases
as at 31 March 2025. 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 2025 6,464 (598)
Year to 31 March 2026 5,342 (1,122)
Year to 31 March 2027 3,914 (1,428)
Year to 31 March 2028 2,645 (1,269)
Rent Collection
At 20 May 2025, the Group had collected 99.5% of all rent contracted and
payable for the financial year to 31 March 2025.
Development Profits
During the year, there were profits on development management and promote fees
for 100 New Bridge Street, EC4, Brettenham House, WC2, and 10 King William
Street, EC4, totalling £2.3m. These were offset by development staff costs of
£1.9m and other net development costs of £0.1m, leading to a net development
profit of £0.3m (2024: loss of £0.2m).
Share of Results of Joint Ventures
Net rental income recognised in the year was £3.3m (2024: £0.8m) as a result
of the letting progress at The JJ Mack Building, EC1, before its disposal in
October 2024.
The revaluation of our investment assets held in joint ventures generated a
gain of £22.5m (2024: loss of £5.9m), primarily due to the increase in value
of 100 New Bridge Street, EC4. There was a loss on sale of The JJ Mack
Building, EC1, of £2.3m and a small development loss of £0.1m (2024: £0.9m)
was recognised for residual costs of Barts Square, EC1.
Finance, administrative and other sundry costs totalling £1.9m (2024: £3.5m)
were incurred. An adjustment to reflect our economic interest in the Barts
Square, EC1, development to its recoverable amount generated a profit of
£0.1m (2024: £0.2m), offset by the costs of selling the corporate vehicle
which owned The JJ Mack Building, EC1, of £0.8m. Overall, there was a net
profit from our joint ventures of £20.8m (2024: loss of £9.3m).
Gain on Sale and Revaluation of Investment Properties
The net gain on the sale and revaluation of the investment portfolio on a
see-through basis, including in joint ventures, was £32.2m (2024: net loss of
£188.6m).
Administrative Expenses
Recurring administrative costs in the Group, before performance related
awards, decreased from £9.1m to £8.9m with an additional £0.4m (2024:
£0.7m) of costs reflecting an accelerated depreciation of leasehold
improvements at our former head office, prior to the move to the new office in
December 2024.
For the year to 31 March 2025, £1.9m of staff costs were recognised as
development costs to offset against development profits. This is to align the
costs with the value and income they create. No adjustment has been made for
the prior year, when equivalent costs were not material.
The Group has reviewed all categories of expenditure, seeking efficiencies and
cost reductions where available, including reducing head count and moving to
smaller offices in a less expensive location, and consequently total ongoing
recurring administration costs, including those recognised as development
costs, will be reduced by 25% when compared to the year to 31 March 2024.
Performance related share awards and bonus payments, before National Insurance
costs, increased to £3.1m (2024: £1.2m). Of this amount, £0.9m (2024:
£1.0m), 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. NIC incurred in the year on
performance related awards was £0.2m (2024: £0.1m).
In joint ventures, administrative expenses decreased from £0.3m to £0.2m.
2025 2024
£000
£000
Recurring administrative expenses (excluding performance related awards) (8,909) (9,051)
Accelerated depreciation of leasehold improvements (448) (680)
Total Group administration expenses (9,357) (9,731)
Recognised in development costs (cost of sales) 1,945 -
Net Group administration expenses (7,412) (9,731)
Performance related awards (3,097) (1,155)
NIC on performance related awards (196) (125)
(10,705) (11,011)
In joint ventures (229) (338)
Total see-through administrative expenses (10,934) (11,349)
Finance Costs, Finance Income and Change in Fair Value of Derivative Financial
Instruments
Net finance costs excluding changes in the fair value of derivative financial
instruments, including joint ventures, reduced to £9.2m (2024: £11.1m).
Group 2025 2024
£000
£000
Interest payable on secured bank loans (5,083) (5,493)
Other interest payable and similar charges (1,916) (3,115)
Total interest payable before cancellation of loans (6,999) (8,608)
Cancellation of loans (2,145) -
Total finance costs (9,144) (8,608)
Finance income 1,671 661
Net finance costs (7,473) (7,947)
Change in fair value of derivative financial instruments (3,289) (5,609)
Finance costs, finance income and change in fair value of derivative financial (10,762) (13,556)
instruments
Joint ventures
Interest payable on secured bank loans (2,018) (3,012)
Other interest payable and similar charges (108) (211)
Interest capitalised 380 -
Total finance costs (1,746) (3,223)
Finance income 38 43
Net finance costs (1,708) (3,180)
Change in fair value of derivative financial instruments 17 -
Total finance costs, finance income and change in fair value of derivative (1,691) (3,180)
financial instruments
See-through net finance costs and change in fair value of derivative financial (12,453) (16,736)
instruments
See-through net finance costs excluding change in fair value of derivative (9,181) (11,127)
financial instruments
Taxation
The Group has been a REIT since 1 April 2022 and is exempt from UK corporation
tax on the profits of its property activities that fall within the REIT
regime. Helical will continue to pay corporation tax on its profits that are
not within this regime. There is no deferred tax charge in the current year.
The current tax charge for the year was £nil (2024: £nil) and the total tax
charge for the year was £nil (2024: £0.2m relating to an earlier year
under-provision).
Dividends
In light of the results for the year, the Board will be recommending to
Shareholders an increase in the final dividend to 3.50p (2024: 1.78p) per
share. This final dividend, if approved by Shareholders, will be an ordinary
dividend, paid out of distributable reserves generated from the Group's
activities. The total dividend of 5.00p, including the 1.50p interim dividend
which was wholly paid as a PID, represents a 3.5% increase on last year's
total dividend of 4.83p.
Balance Sheet
Shareholders' Funds
Shareholders' funds at 1 April 2024 were £401.1m. The Group made a profit of
£27.9m (2024: loss of £189.8m), representing the total comprehensive income
for the year. Movements in reserves arising from the Group's share schemes
resulted in a net increase of £1.1m. The Company paid dividends to
Shareholders during the year of £4.0m. The net increase in Shareholders'
funds from Group activities during the year was £25.0m to £426.1m.
Investment Portfolio - Excluding Assets Held for Sale
Wholly In joint venture See-through Head leases capitalised Lease incentives Book
owned £000 £000 £000 £000 value
£000
£000
Valuation at 31 March 2024 479,600 138,250 617,850 4,331 (8,848) 613,333
Capital expenditure - wholly owned 5,090 - 5,090 - - 5,090
- joint ventures - 46,231 46,231 (4,331) - 41,900
Acquisitions - joint ventures - 87,431 87,431 - - 87,431
Letting costs amortised - wholly owned (173) - (173) - - (173)
- joint ventures - (60) (60) - - (60)
Disposals - wholly owned (106,738) - (106,738) - - (106,738)
- joint ventures - (138,888) (138,888) - 1,770 (137,118)
Revaluation (deficit)/surplus - wholly owned 2,121 - 2,121 - 521 2,642
- joint ventures - 22,531 22,531 - - 22,531
Valuation at 31 March 2025 379,900 155,495 535,395 - (6,557) 528,838
The Group expended £51.3m on capital works across the investment portfolio,
at 100 New Bridge Street, EC4 (£30.1m), 10 King William Street, EC4,
(£15.5m), The Bower, EC1, (£4.6m), The Loom, E1, (£0.4m) and prior to its
disposal, The JJ Mack Building, EC1, (£0.7m).
Revaluation gains resulted in a £24.6m increase in the see-through fair value
of the portfolio, before lease incentives, to £535.4m (31 March 2024:
£617.9m). The accounting for lease incentives resulted in a book value of the
see-through investment portfolio of £528.8m (31 March 2024: £613.3m).
Debt and Financial Risk
The Group's secured investment debt at 31 March 2025 was £175.0m (31 March
2024: £230.0m) with a weighted average cost of 3.8% (31 March 2024: 2.9%) and
average maturity of 2.5 years (31 March 2024: 2.1 years). The Group's share of
secured development debt at 31 March 2025 was £20.8m (31 March 2024: £66.1m)
with a weighted average cost of 8.5% (31 March 2024: nil) and average maturity
of 3.5 years (31 March 2024: 1.3 years).
Debt Profile at 31 March 2025 - Excluding the Amortisation of Arrangement Fees
Group's secured investment debt Total Total Available Weighted average Average maturity of facilities
facility utilised facility interest rate Years
£000s £000s £000s %
£210m Revolving Credit Facility 210,000 175,000 35,000 3.8(1) 2.5
Working capital 10,000 - 10,000 - 1.0
Total 220,000 175,000 45,000 3.8 2.4
1. Including commitment fees.
Group's share of secured development debt Total Total Available Weighted average Average maturity of facilities
facility utilised facility interest rate Years
£000s £000s £000s %
£155m 100 New Bridge Street Development Facility 77,500 20,283 57,217 8.5(2) 3.1
£125m 10 King William Street Development Facility 63,750 489 63,261 8.5(2) 3.9
Total 141,250 20,772 120,478 8.5 3.5
2. Excluding commitment fees.
Secured Debt
The Group arranges its secured investment and development facilities to suit
its business needs as follows:
- £210m Revolving Credit Facility
During the year, the Group refinanced its Revolving Credit Facility, reducing
the facility size from £300m to £210m and extending its maturity. Both of
the Group's wholly owned investment assets are secured in this facility. The
value of the Group's properties secured in the facility at 31 March 2025 was
£380m (31 March 2024: £522m), with a corresponding loan to value of 46.1%
(31 March 2024: 44.0%). This facility had a weighted average interest rate
(including commitment fees) of 3.8%. The average maturity of the facility at
31 March 2025 was 2.5 years (31 March 2024: 2.3 years), with two one-year
extension options which, if exercised, would extend the facility's repayment
date to September 2029.
- Joint Venture Facilities
The Group has a number of investment and development properties in joint
ventures with third parties and includes our share, in proportion to our
economic interest, of the debt associated with each asset.
In May 2024, a new £155m facility was arranged with an institutional lender
and NatWest to finance 100 New Bridge Street, EC4, at a fixed rate of 3.8%
plus margin. This margin starts at 4.65% during the development phase,
reducing to 2.25% on letting post completion.
In February 2025, a further new £125m facility was taken out with HSBC to
finance the development of 10 King William Street, EC4. This margin starts at
4.60% during the development phase, reducing to 2.25% on letting post
completion.
The Group's share of bank facilities in joint ventures at 31 March 2025
comprised debt of £20.3m against 100 New Bridge Street, EC4, and £0.5m
against 10 King William Street, EC4. The debt against 100 New Bridge Street,
EC4, had a weighted average interest rate (excluding commitment fees) of 8.5%
and an average maturity of 3.1 years at 31 March 2025. The loan facility for
10 King William Street, EC4, had a weighted average interest rate (excluding
commitment fees) of 8.5% and an average maturity of 3.9 years at 31 March
2025. Both facilities benefit from one-year extension options.
The debt against The JJ Mack Building, EC1, was transferred to the purchaser
on its sale in October 2024.
Unsecured Debt
The Group's unsecured debt is £nil (31 March 2024: £nil).
Cash and Cash Flow
At 31 March 2025, the Group had £244.5m (31 March 2024: £115.5m) of cash and
agreed, undrawn, committed bank facilities including its share in joint
ventures.
Net Borrowings and Gearing
Total gross borrowings of the Group, including in joint ventures, have
decreased from £296.1m to £195.8m at 31 March 2025 following a number of
sales during the year. After deducting cash balances of £79.0m (31 March
2024: £31.7m) and unamortised refinancing costs of £4.0m (31 March 2024:
£2.8m), net borrowings decreased from £261.6m to £112.8m. The see-through
gearing of the Group, including in joint ventures, decreased from 65.2% to
26.5%.
31 March 31 March
2025 2024
See-through gross borrowings excluding unamortised refinancing costs £195.8m £296.1m
See-through cash balances £79.0m £31.7m
Unamortised refinancing costs £4.0m £2.8m
See-through net borrowings £112.8m £261.6m
Shareholders' funds £426.1m £401.1m
See-through loan to value 20.9% 39.5%
See-through gearing - IFRS net asset value 26.5% 65.2%
Tim Murphy
Chief Financial Officer
20 May 2025
Consolidated Income Statement
For the year to 31 March 2025
Notes Year to Year to
31 March 31 March
2025 2024
£000 £000
Revenue 3 31,962 39,905
Cost of sales 3 (15,389) (14,450)
Net property income 4 16,573 25,455
Share of results of joint ventures 12 20,825 (9,310)
37,398 16,145
Gain on sale of investment properties 5 9,376 -
Revaluation of investment properties 11 2,642 (181,213)
49,416 (165,068)
Administrative expenses 6 (10,705) (11,011)
Operating profit/(loss) 38,711 (176,079)
Net finance costs and change in fair value of derivative financial instruments 7 (10,762) (13,556)
Profit/(loss) before tax 27,949 (189,635)
Tax on ordinary activities 8 - (179)
Profit/(loss) for the year 27,949 (189,814)
Profit/(loss) per share 10
Basic 22.8p (154.6)p
Diluted 22.7p (154.6)p
There were no items of comprehensive income in the current or prior year other
than the profit for the year and, accordingly, no Statement of Comprehensive
Income is presented.
Consolidated Balance Sheet
At 31 March 2025
Notes At At
31 March 31 March
2025 2024
£000 £000
Non-current assets
Investment properties 11 373,343 472,522
Owner occupied property, plant and equipment 2,105 3,569
Investment in joint ventures 12 141,537 73,923
Other investments 13 670 565
Derivative financial instruments 21 14,346 17,635
Trade and other receivables 16 3,164 1,252
535,165 569,466
Current assets
Land and developments 14 139 28
Assets held for sale 15 - 42,761
Trade and other receivables 16 13,109 16,981
Cash and cash equivalents 17 76,499 28,633
89,747 88,403
Total assets 624,912 657,869
Current liabilities
Trade and other payables 18 (23,273) (24,886)
Lease liability 19 (339) (829)
(23,612) (25,715)
Non-current liabilities
Borrowings 20 (173,730) (227,634)
Lease liability 19 (1,476) (3,445)
(175,206) (231,079)
Total liabilities (198,818) (256,794)
Net assets 426,094 401,075
Equity
Called-up share capital 22 1,233 1,233
Share premium account 116,619 116,619
Revaluation reserve (48,296) (134,797)
Capital redemption reserve 7,743 7,743
Own shares held (1,675) (1,675)
Other reserves 291 291
Retained earnings 350,179 411,661
Total equity 426,094 401,075
Consolidated Cash Flow Statement
For the year to 31 March 2025
Year to Year to
31 March 31 March
2025 2024
£000 £000
Cash flows from operating activities
Profit/(loss) before tax 27,949 (189,635)
Adjustment for:
Depreciation 1,326 1,506
Revaluation (surplus)/deficit on investment properties (2,642) 181,213
Letting cost amortisation 173 168
Gain on sale of investment properties (9,376) -
Profit on sale of plant and equipment (48) (29)
Net financing costs 7,473 7,947
Change in value of derivative financial instruments 3,289 5,609
Share based payments charge 1,096 1,039
Share of results of joint ventures (20,825) 9,310
Profit on disposal of 5 Hanover Square lease (125) -
Gain on sublet of 5 Hanover Square - (902)
Cash inflows from operations before changes in working capital 8,290 16,226
Change in trade and other receivables 2,342 9,555
Change in land, developments and trading properties (111) -
Change in trade and other payables (2,273) (6,581)
Cash inflows from operations 8,248 19,200
Finance costs (8,437) (7,587)
Finance income 1,629 661
(6,808) (6,926)
Net cash generated from operating activities 1,440 12,274
Cash flows from investing activities
Additions to investment property (5,090) (16,038)
Net purchase of other investments (105) (212)
Loans to third parties (2,997) -
Net proceeds from sale of investment property and available for sale assets 158,875 -
Investments in joint ventures and subsidiaries (116,042) (3,861)
Proceeds from disposal of interest in joint ventures 71,027 -
Dividends from joint ventures 582 5,666
Sale of plant and equipment 66 30
Purchase of leasehold improvements, plant and equipment (335) (618)
Net cash generated from/(used by) investing activities 105,981 (15,033)
Cash flows from financing activities
Borrowings drawn down 37,000 -
Borrowings repaid (92,000) -
Lease liability payments (529) (708)
Purchase of own shares - (4,402)
Equity dividends paid (4,026) (14,423)
Net cash used by financing activities (59,555) (19,533)
Net increase/(decrease) in cash and cash equivalents 47,866 (22,292)
Cash and cash equivalents at start of year 28,633 50,925
Cash and cash equivalents at end of year 76,499 28,633
Consolidated Statement of Changes in Equity
At 31 March 2025
Share Share Revaluation Capital Own shares Other Retained earnings Total
capital premium reserve redemption held reserves £000 £000
£000 £000 £000 reserve £000 £000
£000
At 31 March 2023 1,233 116,619 46,416 7,743 (848) 291 437,221 608,675
Total comprehensive expense - - - - - - (189,814) (189,814)
Revaluation deficit - - (181,213) - - - 181,213 -
Transactions with owners
- Performance Share Plan - - - - - - 1,039 1,039
- Purchase of own shares - - - - (4,402) - - (4,402)
- PSP vesting - - - - 2,352 - (2,352) -
- Share settled bonus - - - - 1,223 - (1,223) -
- Dividends paid - - - - - - (14,423) (14,423)
Total transactions with owners - - - - (827) - (16,959) (17,786)
At 31 March 2024 1,233 116,619 (134,797) 7,743 (1,675) 291 411,661 401,075
Total comprehensive income - - - - - - 27,949 27,949
Revaluation surplus - - 2,642 - - - (2,642) -
Realised on disposals - - 83,859 - - - (83,859) -
Transactions with owners
- Performance Share Plan - - - - - - 896 896
- Share settled bonus - - - - - - 200 200
- Dividends paid - - - - - - (4,026) (4,026)
Total transactions with owners - - - - - - (2,930) (2,930)
At 31 March 2025 1,233 116,619 (48,296) 7,743 (1,675) 291 350,179 426,094
Notes to the Full Year Results
1. Basis of Preparation
These financial statements have been prepared using the recognition and
measurement principles of UK adopted International Accounting Standards in
conforming with the Companies Act 2006.
The financial statements have been prepared in Sterling (rounded to the
nearest thousand) under the historical cost convention as modified by the
revaluation of investment properties and certain financial instruments.
The financial information set out in this preliminary announcement does not
constitute statutory accounts as defined in section 434 of the Companies Act
2006 but has been derived from the Company's audited statutory accounts for
the year ended 31 March 2025. These accounts will be delivered to the
Registrar of Companies following the Annual General Meeting. The auditor's
opinion on the 2025 accounts was unqualified and did not contain a statement
under section 498(2) or (3) of the Companies Act 2006.
Change in Accounting Policies
In the current year, the following amendments have been adopted which were
effective for the periods commencing on or after 1 January 2024:
• Amendments to IAS 1: Non-current liabilities with covenants, and
classification of liabilities as current or non-current;
• Amendments to IFRS 16: Lease liability in a sale and leaseback; and
• Amendments to IAS 7 and IFRS 7: Supplier Finance Arrangements.
As a result of the adoption of the amendments to IAS 1, the Group changed its
accounting policy for the classification of borrowings:
• "Borrowings are classified as current liabilities unless at the end
of the reporting period the Group has a right to defer settlement of the
liability for at least 12 months after the reporting period."
This new policy did not result in a change in the classification of the
Group's borrowings. The Group did
not make any retrospective adjustments as a result of adopting the amendments
to IAS 1.
Standards and Interpretations in Issue but Not Yet Effective
At the date of authorisation of these financial statements there were
standards and amendments which
were in issue but not yet effective and which have not been applied.
The principal ones were:
• Amendments to IAS 21: Accounting where there is a lack of
exchangeability (effective 1 January
2025); and
• IFRS 18: Presentation and Disclosure in Financial Statements
(effective 1 January 2027 - subject to
endorsement by the UKEB).
The Directors do not expect the adoption of these standards and amendments to
have a material impact
on the financial statements, with the exception of IFRS 18 which is being
assessed before mandatory implementation.
Going Concern
The Directors have considered the appropriateness of adopting a going concern
basis in preparing the financial statements. Their assessment is based on
forecasts to September 2026, with sensitivity testing undertaken to replicate
severe but plausible downside scenarios related to the principal risks and
uncertainties associated with the business.
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;
• Certain property disposals are assumed in line with the individual
asset business plans; and
• Free cash is utilised where necessary to repay debt/cure bank
facility covenants.
Compliance with the financial covenants of the Group's main debt facility, its
£210m Revolving Credit Facility, was the Directors' key area of review, with
particular focus on the following three covenants:
• Loan to value ("LTV") - the ratio of the drawn loan amount to the
value of the secured property as a percentage;
• Loan to rental value ("LRV") - the ratio of the loan to the projected
contractual net rental income for the next 12 months; and
• Projected net rental interest cover ratio ("ICR") - the ratio of
projected net rental income to projected finance costs.
The April 2025 compliance position for these covenants is summarised below:
Covenant Requirement Actual
LTV <65% 46%
LRV <12.0x 10.05x
ICR >150% 289%
The results of this review demonstrated the following:
• The forecasts show that all bank facility financial covenants will be
met throughout the review period, with headroom to withstand a 12% fall in
contracted rental income;
• Property values could fall by 26% before loan to value covenants come
under pressure; and
• Additional asset sales could be utilised to generate cash to repay
debt, materially increasing covenant headroom.
Based on this analysis, the Directors have adopted a going concern basis in
preparing the accounts for the year ended 31 March 2025.
Use of Judgements and Estimates
To be able to prepare accounts according to accounting principles, management
must make estimates and assumptions that affect the assets and liabilities and
revenue and expense amounts recorded in the financial statements. These
estimates are based on historical experience and other assumptions that
management and the Board of Directors believe are reasonable under the
particular circumstances. The results of these considerations form the basis
for making judgements about the carrying value of assets and liabilities that
are not readily available from other sources.
Areas requiring the use of critical judgements and estimates that may
significantly impact the Group's earnings and financial position are:
Significant Judgements
The key areas are discussed below:
· Consideration of the nature of joint arrangements. In the context of
IFRS 10 Consolidated Financial Statements, this involves determination of
where the control lies and whether either party has the power to vary its
returns from the arrangements. In particular, significant judgement is
exercised where the shareholding of the Group is not 50%. See Note 12.
· IFRS 15 Revenue from Contracts with Customers requires management to
make judgements in relation to the performance obligations of its contracts,
the constraints of variable consideration, the allocation of the transaction
price to the performance obligations and an assessment of satisfaction of the
performance obligations.
· In the year to 31 March 2025, staff costs directly relating to
development activities have been recognised in development cost of sales,
rather than in administrative expenses as in the prior years. This adjustment
is to align the disclosure of the development costs more appropriately with
the value created by the Group's employees with respect to its development
activities. No adjustment has been made for the prior year when equivalent
costs were not material.
Key Sources of Estimation Uncertainty
The key areas are discussed below:
· Valuation of investment properties. Discussion of the sensitivity of
these valuations to changes in the equivalent yields and rental values is
included in Note 11.
· Estimates must be made as to the expected variable consideration under
IFRS 15 Revenue from Contracts with Customers, which is dependent upon the
rental values achieved and the quantum of construction costs incurred. At each
reporting date, the expected value approach is used to estimate the total
variable consideration.
Consideration has been given to climate risk but it has been concluded that it
does not give rise to material new sources of estimation uncertainty.
2. Revenue from Contracts with Customers
Year to Year to
31 March 31 March
2025 2024
£000 £000
Development property income 3,020 711
Service charge income 7,662 10,689
Other revenue 43 991
Total revenue from contracts with customers 10,725 12,391
The total revenue from contracts with customers is the revenue recognised in
accordance with IFRS 15 Revenue from Contracts with Customers.
Impairment of contract assets of £nil was recognised in the year to 31 March
2025 (2024: £23,000).
3. Segmental Information
IFRS 8 Operating Segments requires the identification of the Group's operating
segments, which are defined as being discrete components of the Group's
operations whose results are regularly reviewed by the Chief Operating
Decision Maker (being the Chief Executive) to allocate resources to those
segments and to assess their performance.
The Group divides its business into the following segments:
· Investments: Investment properties, including buildings under the
course of construction, which are owned or leased by the Group, wholly or in
joint venture, for long-term income and for capital appreciation and the
revenue includes the net rental income associated with these assets; and
· Developments: Development properties include site costs accrued prior
to acquisition and the revenue includes fees and profit shares/promotes from
development activities on assets either owned in joint venture or not owned by
the Group.
Revenue Investments Developments Total Investments Year to Developments Total
Year to Year to Year to 31.03.24 Year to Year to
31.03.25 31.03.25 31.03.25 £000 31.03.24 31.03.24
£000 £000 £000 £000 £000
Gross rental income 21,237 - 21,237 27,514 - 27,514
Development property income - 3,020 3,020 - 711 711
Service charge income 7,662 - 7,662 10,689 - 10,689
Other revenue 43 - 43 991 - 991
Revenue 28,942 3,020 31,962 39,194 711 39,905
Cost of sales Investments Developments Total Investments Year to Developments Total
Year to Year to Year to 31.03.24 Year to Year to
31.03.25 31.03.25 31.03.25 £000 31.03.24 31.03.24
£000 £000 £000 £000 £000
Head rents payable (17) - (17) (224) - (224)
Property overheads (4,989) - (4,989) (2,580) - (2,580)
Service charge expense (7,662) - (7,662) (10,689) - (10,689)
Development cost of sales - (754) (754) - (922) (922)
Development staff costs - (1,945) (1,945) - - -
Development sales expenses - (22) (22) - (35) (35)
Cost of sales (12,668) (2,721) (15,389) (13,493) (957) (14,450)
Profit/(loss) before tax Investments Developments Total Investments Developments Total
Year to Year to Year to Year to Year to Year to
31.03.25 31.03.25 31.03.25 31.03.24 31.03.24 31.03.24
£000 £000 £000 £000 £000 £000
Net property income 16,274 299 16,573 25,701 (246) 25,455
Share of results of joint ventures 20,848 (23) 20,825 (9,969) 659 (9,310)
Gain/(loss) on sale and revaluation of investment properties 12,018 - 12,018 (181,213) - (181,213)
Segmental profit/(loss) 49,140 276 49,416 (165,481) 413 (165,068)
Administrative expenses (10,705) (11,011)
Net finance costs (7,473) (7,947)
Change in fair value of derivative financial instruments (3,289) (5,609)
Profit/(loss) before tax 27,949 (189,635)
Net assets Investments Developments Total Investments Developments Total
at 31.03.25 at 31.03.25 at 31.03.25 at 31.03.24 at 31.03.24 at 31.03.24
£000 £000 £000 £000 £000 £000
Investment properties 373,343 - 373,343 472,522 - 472,522
Land and developments - 139 139 - 28 28
Assets held for sale - - - 42,761 - 42,761
Investment in joint ventures 141,285 252 141,537 71,528 2,395 73,923
514,628 391 515,019 586,811 2,423 589,234
Other assets 109,893 68,635
Total assets 624,912 657,869
Liabilities (198,818) (256,794)
Net assets 426,094 401,075
4. Net Property Income
Year to Year to
31 March 31 March
2025 2024
£000 £000
Gross rental income 21,237 27,514
Head rents payable (17) (224)
Property overheads (4,989) (2,580)
Net rental income 16,231 24,710
Development property income 3,020 711
Development cost of sales (754) (922)
Development staff costs (1,945) -
Sales expenses (22) (35)
Development property profit/(loss) 299 (246)
Other revenue 43 991
Net property income 16,573 25,455
Included within gross rental income above is an adjustment of £598,000 being
a net release of previously accrued income (2024: £5,830,000). Included
within gross rental income are dilapidation receipts of £278,000 (2024:
£1,490,000).
5. Profit on Sale of Investment Properties and Assets Held for Sale
Year to Year to
31 March 31 March
2025 2024
£000 £000
Net proceeds from the sale of investment properties and assets held for sale 158,875 -
Book value of investment properties (Note 11) (106,738) -
Book value of assets held for sale (Note 15) (42,761) -
Profit on sale of investment properties and assets held for sale 9,376 -
6. Administrative Expenses
Year to Year to
31 March 31 March
2025 2024
£000 £000
Administrative costs (9,357) (9,731)
Staff costs transferred to development cost of sales 1,945 -
Performance related awards, including annual bonuses (3,097) (1,155)
National Insurance on performance related awards (196) (125)
Administrative expenses (10,705) (11,011)
An amount of £1,945,000 included within staff costs above has been recognised
in development cost of sales. In the year to 31 March 2024, the equivalent
amount of £735,000 was recognised in administrative expenses. No prior year
adjustment has been made.
7. Net Finance Costs and Change in Fair Value of Derivative Financial
Instruments
Year to Year to
31 March 31 March
2025 2024
£000 £000
Interest payable on bank loans and overdrafts (5,083) (5,493)
Other interest payable and similar charges (1,916) (3,115)
Total before cancellation of loans (6,999) (8,608)
Cancellation of loans (2,145) -
Finance costs (9,144) (8,608)
Finance income 1,671 661
Net finance costs (7,473) (7,947)
Change in fair value of derivative financial instruments (3,289) (5,609)
Net finance costs and change in fair value of derivative financial instruments (10,762) (13,556)
8. Tax on Profit on Ordinary Activities
Year to Year to
31 March 31 March
2025 2024
£000 £000
The tax charge is based on the profit for the year and represents:
United Kingdom corporation tax at 25% (2024: 25%)
- Adjustment in respect of prior years - (179)
Current tax charge - (179)
Deferred tax - -
Total tax charge for year - (179)
The Group became a UK REIT on 1 April 2022. As a REIT, the Group is not
subject to corporation tax on the profits of its property rental business and
chargeable gains arising on the disposal of investment assets used in the
property rental business, but remains subject to tax on profits and chargeable
gains arising from non-REIT business activities.
Since entering the REIT regime, no deferred tax assets and liabilities have
been recognised on the basis that they are either associated with the
tax-exempt property business or are deferred tax assets of the non-property
business that are no longer recognised on the basis that it is no longer
probable that sufficient taxable profits will be generated in the non-property
business in the future against which these assets could be offset.
On the basis that the Group continues to meet the REIT regime conditions,
there has been no change to the position regarding recognition of deferred tax
assets and liabilities in the year ended 31 March 2025. At 31 March 2025, no
deferred tax was recognised (31 March 2024: £nil).
9. Dividends
Year to Year to
31 March 31 March
2025 2024
£000 £000
Attributable to equity share capital
Ordinary
- Interim paid 1.50p per share (2024: 3.05p) 1,841 3,744
- Prior year final paid 1.78p per share (2023: 8.70p) 2,185 10,679
4,026 14,423
A final dividend of 3.50p, if approved at the AGM on 17 July 2025, will be
paid on 4 August 2025 to the Shareholders on the register on 27 June 2025.
This final dividend, amounting to £4,296,000, has not been included as a
liability as at 31 March 2025, in accordance with IFRS.
The total dividend declared of 5.00p, including the 1.50p interim dividend
wholly paid as a PID, represents a 3.5% increase on last year's total dividend
declared of 4.83p.
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 year. This is a different basis to the net asset
per share calculations which are based on the number of shares at the year
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:
Year to Year to
31 March 31 March
2025 2024
000 000
Ordinary shares in issue 123,355 123,355
Weighting adjustment (602) (602)
Weighted average ordinary shares in issue for calculation of basic and EPRA 122,753 122,753
earnings/(loss) per share
Weighted average ordinary shares issued on share settled bonuses 262 154
Adjustment for anti-dilutive shares - (154)
Weighted average ordinary shares in issue for calculation of diluted 123,015 122,753
earnings/(loss) per share
£000 £000
Earnings/(loss) used for calculation of basic and diluted earnings/(loss) per 27,949 (189,814)
share
Basic earnings/(loss) per share 22.8p (154.6)p
Diluted earnings/(loss) per share 22.7p (154.6)p
£000 £000
Earnings/(loss) used for calculation of basic and diluted earnings per share 27,949 (189,814)
Net (gain)/loss on sale and revaluation of investment properties
- subsidiaries (12,018) 181,213
- joint ventures (20,216) 7,401
Gain on movement in share of joint ventures (30) (155)
Fair value movement on derivative financial instruments 3,272 5,609
Expense on cancellation of loans 2,145 -
Sale of Charterhouse Street group 805 -
Non-operating items 779 -
Earnings used for calculations of EPRA earnings per share 2,686 4,254
EPRA earnings per share 2.2p 3.5p
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.
Non-operating items represent one-off costs relating to business
restructuring.
11. Investment Properties
At At
31 March 31 March
2025 2024
£000 £000
Book value at 1 April 472,522 681,682
Additions at cost 5,090 16,038
Disposals (106,738) -
Transfer to assets held for sale - (43,817)
Letting cost amortisation (173) (168)
Revaluation surplus/(deficit) 2,642 (181,213)
As at year end 373,343 472,522
The fair value of the investment properties is as follows:
At At
31 March 31 March
2025 2024
£000 £000
Book value 373,343 472,522
Lease incentives and costs included in trade and other receivables 6,557 7,078
Fair value 379,900 479,600
Interest capitalised in respect of the refurbishment of investment properties
at 31 March 2025 amounted to £8,271,000 (31 March 2024: £8,271,000).
Interest capitalised during the year in respect of the refurbishment of
investment properties amounted to £nil (31 March 2024: £nil). An amount of
£nil (31 March 2024: £nil) was released on the sale of the properties in the
year and an amount of £nil (31 March 2024: £1,349,000) was released as a
result of an asset being transferred to assets held for sale.
The historical cost of investment property is £422,045,000 (31 March 2024:
£608,010,000). The anticipated capital expenditure included in valuations
reflects our commitment to achieving the highest standards of sustainability.
Any capital expenditure contractually committed is included in Note 29.
The fair value of the Group's investment property as at 31 March 2025 was
determined by independent external valuers at that date, except for investment
properties valued by the Directors. The valuations are in accordance with the
RICS Valuation - Professional Standards ("The Red Book") and the International
Valuation Standards and were arrived at by reference to market transactions
for similar properties.
At At
31 March 31 March
2025 2024
£000 £000
Cushman & Wakefield LLP 379,750 479,450
Directors' valuation 150 150
379,900 479,600
Fair values for investment properties are calculated using the present value
income approach. The main assumptions underlying the valuations are in
relation to rent profile and yields, as discussed below. A key driver of the
property valuations is the terms of the leases in place at the valuation date.
These determine the cash flow profile of the property for a number of years.
The valuation assumes adjustments from these rental values to current market
rent at the time of the next rent review (where a typical lease allows only
for upward adjustment) and as leases expire and are replaced by new leases.
The current market level of rent is assessed based on evidence provided by the
most recent relevant leasing transactions and negotiations. The equivalent
yield is applied as a discount rate to the rental cash flows which, after
taking into account other input assumptions such as vacancies and costs,
generates the market value of the property.
The equivalent yield applied is assessed by reference to market transactions
for similar properties and takes into account, amongst other things, any risks
associated with the rent uplift assumptions.
The net initial yield is calculated as the current net income over the gross
market value of the asset and is used as a sense check and to compare against
market transactions for similar properties. The valuation outputs, along with
inputs and assumptions, are reviewed to ensure these are in line with what a
market participant would use when pricing each asset.
The reversionary yield is the return received from an asset once the estimated
rental value has been captured on today's assessment of market value.
There are interrelationships between all the inputs as they are determined by
market conditions. The existence of an increase in more than one input would
be to magnify the impact on the valuation. The impact on the valuation will be
mitigated by the interrelationship of two inputs in opposite directions.
A sensitivity analysis was performed to ascertain the impact of a 25 and 50
basis point shift in the equivalent yield and a 2.5% and 5% shift in ERVs for
the wholly owned investment portfolio:
At Change in portfolio value
31 March
2025 % £m
True equivalent yield 7.1%
+ 50 bps (7.2) (27.5)
+ 25 bps (3.7) (14.2)
- 25 bps 4.0 15.4
- 50 bps 8.4 32.0
ERV £66.11 psf
+ 5.00% 4.3 16.5
+ 2.50% 2.1 8.2
- 2.50% (2.1) (8.1)
- 5.00% (4.2) (16.1)
12. Joint Ventures
Share of results of joint ventures Year to Year to
31 March 31 March
2025 2024
£000 £000
Revenue 3,704 2,559
Gross rental income 3,704 2,004
Property overheads (366) (1,209)
Net rental income 3,338 795
Revaluation of investment properties 22,531 (5,933)
Loss on sale of investment properties (2,315) (1,468)
Development property (loss)/profit (23) 659
23,531 (5,947)
Administrative expenses (229) (338)
Operating profit/(loss) 23,302 (6,285)
Interest payable on bank loans and overdrafts (2,018) (3,012)
Other interest payable and similar charges (108) (211)
Change in fair value of derivative financial instruments 17 -
Interest capitalised 380 -
Finance income 38 43
Profit/(loss) before tax 21,611 (9,465)
Tax (11) 1
Profit/(loss) after tax 21,600 (9,464)
Adjustment for Barts Square economic interest¹ 30 154
Sale of Charterhouse Street group(2) (805) -
Share of results of joint ventures 20,825 (9,310)
1. This adjustment reflects the impact of the
consolidation of a joint venture at its economic interest of 50% (31 March
2024: 50%) rather than its actual ownership interest of 33%.
2. This adjustment relates to costs incurred
resulting from the corporate sale of the Charterhouse Street group.
Investment in joint ventures At At
31 March 31 March
2025 2024
£000 £000
Summarised balance sheets
Non-current assets
Investment properties 155,495 140,811
Owner occupied property, plant and equipment 63 63
Derivative financial instruments 17 -
155,575 140,874
Current assets
Land and developments 4,572 1,321
Trade and other receivables 7,788 3,034
Cash and cash equivalents 2,478 3,064
14,838 7,419
Current liabilities
Trade and other payables (17,218) (4,254)
(17,218) (4,254)
Non-current liabilities
Trade and other payables - (1,155)
Borrowings (18,040) (65,644)
Leasehold interest - (5,020)
(18,040) (71,819)
Net assets pre-adjustment 135,155 72,220
Acquisition costs 6,382 1,703
Investment in joint ventures 141,537 73,923
The fair value of investment properties in joint ventures at 31 March 2025 is
as follows:
At At
31 March 31 March
2025 2024
£000 £000
Book value 155,495 140,811
Lease incentives and costs included in trade and other receivables - 1,770
Head leases capitalised - (4,331)
Fair value 155,495 138,250
13. Other Investments
At At
31 March 31 March
2025 2024
£000 £000
Book value at 1 April 565 353
Acquisitions 117 212
Return of capital (12) -
As at 31 March 670 565
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
£117,000 (2024: £212,000) was invested during the year. 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 3 fair value measurement as defined in IFRS 13
Fair Value Measurement.
14. Land and Developments
At At
31 March 31 March
2025 2024
£000 £000
At 1 April 28 28
Additions 111 -
At 31 March 139 28
The Directors' valuation of development stock shows a surplus of £302,000 (31
March 2024: £302,000) above book value. This surplus has been included in the
EPRA net tangible asset value (Note 23).
No interest has been capitalised or included in land and developments.
15. Assets Held for Sale
At At
31 March 31 March
2025 2024
£000 £000
At 1 April 42,761 -
Book value on transfer to asset held for sale - 43,817
Lease incentives - 1,133
Long leasehold liability - (2,189)
Disposals (42,761) -
At 31 March - 42,761
16. Trade and Other Receivables
At At
31 March 31 March
2025 2024
£000 £000
Trade receivables 2,428 2,111
Other receivables 2,291 3,601
Prepayments 1,341 4,103
Accrued income 7,049 7,166
Current trade and other receivables 13,109 16,981
Other receivables 3,164 1,252
Non-current trade and other receivables 3,164 1,252
Total trade and other receivables 16,273 18,233
Included in accrued income are lease incentives of £6,557,000 (31 March 2024:
£7,078,000).
17. Cash and Cash Equivalents
At At
31 March 31 March
2025 2024
£000 £000
Cash held at managing agents 2,372 4,914
Rental deposits 7,751 7,828
Restricted cash 5,172 3,880
Cash deposits 61,204 12,011
Total cash and cash equivalents 76,499 28,633
Restricted cash is made up of cash held by solicitors and cash in restricted
accounts.
18. Trade and Other Payables
At At
31 March 31 March
2025 2024
£000 £000
Trade payables 11,811 13,497
Other payables 1,847 1,252
Accruals 5,230 5,101
Deferred income 4,385 5,036
Total trade and other payables 23,273 24,886
19. Lease Liability
At At
31 March 31 March
2025 2024
£000 £000
Current lease liability 339 829
Non-current lease liability 1,476 3,445
The lease liability relates to the leasehold of the Group's head office.
20. Borrowings
At At
31 March 31 March
2025 2024
£000 £000
Current borrowings - -
Borrowings repayable within:
- two to three years 173,730 227,634
Non-current borrowings 173,730 227,634
Total borrowings 173,730 227,634
At At
31 March 31 March
2025 2024
£000 £000
Total borrowings 173,730 227,634
Cash (76,499) (28,633)
Net borrowings 97,231 199,001
Net borrowings exclude the Group's share of borrowings in joint ventures of
£18,040,000 (31 March 2024: £65,644,000) and cash in joint ventures of
£2,478,000 (31 March 2024: £3,064,000). All borrowings in joint ventures are
secured.
At At
31 March 31 March
2025 2024
£000 £000
Net assets 426,094 401,075
Gearing 22.8% 49.6%
21. Derivative Financial Instruments
At At
31 March 31 March
2025 2024
£000 £000
Derivative financial instruments asset 14,346 17,635
A loss on the change in fair value of £3,289,000 has been recognised in the
Consolidated Income Statement (31 March 2024: £5,609,000).
The fair values of the Group's outstanding interest rate swaps 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.
22. Share Capital
At At
31 March 31 March
2025 2024
£000 £000
Authorised 39,577 39,577
The authorised share capital of the Company is £39,577,000 divided into
ordinary shares of 1p each.
At At
31 March 31 March
2025 2024
£000 £000
Allotted, called up and fully paid:
- 123,355,197 (31 March 2024: 123,355,197) ordinary shares of 1p each 1,233 1,233
1,233 1,233
23. Net Assets Per Share
At Number of shares At Number of shares p
31 March 000 31 March 000
2025 2024
£000 £000
p
IFRS net assets 426,094 123,355 401,075 123,355
Adjustments:
- own shares held (602) (602)
Basic net asset value 426,094 122,753 347 401,075 122,753 327
- share settled bonus 262 154
Diluted net asset value 426,094 123,015 346 401,075 122,907 326
Adjustments:
- fair value of financial instruments (14,363) (17,635)
- fair value of land and developments 302 302
- real estate transfer tax 35,894 44,605
EPRA net reinstatement value 447,927 123,015 364 428,347 122,907 349
- real estate transfer tax (19,741) (21,879)
EPRA net tangible asset value 428,186 123,015 348 406,468 122,907 331
At Number of shares At Number of shares p
31 March 000 31 March 000
2025 2024
£000 p £000
Diluted net assets 426,094 123,015 346 401,075 122,907 326
Adjustments:
- surplus on fair value of stock 302 302
EPRA net disposal value 426,396 123,015 347 401,377 122,907 327
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 tangible asset value includes a real estate
transfer tax adjustment which adds back the benefit of the saving of the
purchaser's costs that Helical expects to receive on the sales of the
corporate vehicles that own the buildings, rather than direct asset sales.
The calculation of EPRA net disposal value per share reflects the fair value
of all the assets and liabilities of the Group at 31 March 2025.
24. Related Party Transactions
The following amounts were due from/(to) the Group's joint ventures:
At At
31 March 31 March
2025 2024
£000 £000
Charterhouse Place Limited group - 1,340
Platinum portfolio companies 204 1,530
Barts Square companies 51 71
Shirley Advance LLP - (43)
Bicycle group 50,133 -
K2 Advisers Limited 1,102 -
An accounting and corporate services fee of £50,000 (31 March 2024: £50,000)
was charged by the Group to the Barts Square companies. A development
management, accounting and corporate services fee of £nil was due from the
Charterhouse Place Limited group after disposing of this joint venture (31
March 2024: £1,089,181 reversed). A development management fee of £145,000
was charged to the Platinum portfolio companies, the joint venture with Places
for London (31 March 2024: £nil), as well as an administrative fee of
£52,000 (31 March 2024: £nil). A development management fee of £810,000 (31
March 2024: £nil) was charged to the Bicycle group following the sale of 100
New Bridge Street, EC4, to the joint venture group in May 2024.
At 31 March 2025, the Bicycle group owed £50,133,000 to Helical plc. This
amount is interest free. At 31 March 2024, the equivalent amount due from the
Bicycle group companies to Helical plc was £96,213,000, however, at this time
it was not a related party transaction as they were wholly owned subsidiaries
of the Group.
At 31 March 2025, an amount of £1.1m was owed to K2 Advisers Ltd whose sole
Director is Gerald Kaye, a former Director of the Group. This relates to
ongoing consultancy services provided on two development schemes.
25. 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.
Year to Year to
31 March 31 March
2025 2024
£000 £000
Gross rental income - subsidiaries 21,237 27,514
- joint ventures 3,704 2,004
Total gross rental income 24,941 29,518
Rents payable - subsidiaries (17) (224)
Property overheads - subsidiaries (4,989) (2,580)
- joint ventures (366) (1,209)
See-through net rental income 19,569 25,505
See-through Net Development Profits
Helical's share of development profits from property assets held in
subsidiaries and in joint ventures is shown in the table below.
Year to Year to
31 March 31 March
2025 2024
£000 £000
In parent and subsidiaries 299 (246)
In joint ventures (23) 659
See-through net development profits 276 413
See-through Net Gain on Sale and Revaluation of Investment Properties
Helical's share of the net gain on the sale and revaluation of investment
properties held in subsidiaries and joint ventures is shown in the table
below.
Year to Year to
31 March 31 March
2025 2024
£000 £000
Revaluation surplus/(deficit) on investment properties - subsidiaries 2,642 (181,213)
- joint ventures 22,531 (5,933)
Total revaluation surplus/(deficit) 25,173 (187,146)
Net gain/(loss) on sale of investment properties - subsidiaries 9,376 -
- joint ventures (2,315) (1,468)
Total net gain/(loss) on sale of investment properties 7,061 (1,468)
See-through net gain/(loss) on sale and revaluation of investment properties 32,234 (188,614)
See-through Administrative Expenses
Helical's share of the administrative expenses incurred in subsidiaries and
joint ventures is shown in the table below.
Year to Year to
31 March 31 March
2025 2024
£000 £000
Gross administrative expenses - subsidiaries 9,357 9,731
- joint ventures 229 338
Transfer to development staff costs - subsidiaries (1,945) -
Total administrative expenses 7,641 10,069
Performance related awards, including NIC - subsidiaries 3,293 1,280
Total performance related awards, including NIC 3,293 1,280
See-through administrative expenses 10,934 11,349
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.
Year to Year to
31 March 31 March
2025 2024
£000 £000
Interest payable on bank loans and overdrafts - subsidiaries 5,083 5,493
- joint ventures 2,018 3,012
Total interest payable on bank loans and overdrafts 7,101 8,505
Other interest payable and similar charges - subsidiaries 1,916 3,115
- joint ventures 108 211
Cancellation of loans - subsidiaries 2,145 -
Interest capitalised - joint ventures (380) -
Total finance costs 10,890 11,831
Interest receivable and similar income - subsidiaries (1,671) (661)
- joint ventures (38) (43)
See-through net finance costs 9,181 11,127
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
31 March 31 March
2025 2024
£000 £000
Investment property fair value - subsidiaries 379,900 479,600
- joint ventures 155,495 138,250
Assets held for sale - subsidiaries - 42,761
Total investment property fair value 535,395 660,611
Land and development stock - subsidiaries 139 28
- joint ventures 4,572 1,321
Total land and development stock 4,711 1,349
Total land and development stock surplus - subsidiaries 302 302
Total land and development stock at fair value 5,013 1,651
See-through property portfolio 540,408 662,262
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
31 March 31 March
2025 2024
£000 £000
Gross borrowings more than one year - subsidiaries 173,730 227,634
- joint ventures 18,040 65,644
Total 191,770 293,278
Cash and cash equivalents - subsidiaries (76,499) (28,633)
- joint ventures (2,478) (3,064)
Total (78,977) (31,697)
See-through net borrowings 112,793 261,581
26. See-through Net Gearing and Loan to Value
At At
31 March 31 March
2025 2024
£000 £000
See-through property portfolio 540,408 662,262
See-through net borrowings 112,793 261,581
Net assets 426,094 401,075
See-through net gearing 26.5% 65.2%
See-through loan to value 20.9% 39.5%
27. Total Accounting Return
At At
31 March 31 March
2025 2024
£000 £000
Brought forward IFRS net assets 401,075 608,675
Carried forward IFRS net assets 426,094 401,075
Increase/(decrease) in IFRS net assets 25,019 (207,600)
Dividends paid 4,026 14,423
Total accounting return 29,045 (193,177)
Total accounting return % 7.2% (31.7)%
At
At 31 March
31 March 2024
2025 £000
£000
Brought forward EPRA net tangible assets 406,468 613,455
Carried forward EPRA net tangible assets 428,186 406,468
Increase/(decrease) in EPRA net tangible assets 21,718 (206,987)
Dividends paid 4,026 14,423
EPRA total accounting return 25,744 (192,564)
EPRA total accounting return % 6.3% (31.4)%
28. Total Property Return
At At
31 March 31 March
2025 2024
£000 £000
See-through net rental income 19,569 25,505
See-through development profits 276 413
See-through revaluation surplus/(deficit) 25,173 (187,146)
See-through net gain/(loss) on sale of investment properties 7,061 (1,468)
Total property return 52,079 (162,696)
29. Capital Commitments
The Group has commitments of £136,600,000 (31 March 2024: £133,500,000), of
which £31,900,000 relates to the development of 100 New Bridge Street, EC4,
and £54,700,000 to 10 King William Street, EC4. In addition, there is a loan
contribution commitment of £8,900,000 to the development of Brettenham House,
WC2, and the remaining £41,100,000 relates to the purchases of the PfL sites
at Southwark, SE1, (£10,900,000), and Paddington, W2, (£30,200,000).
30. Post Balance Sheet Event
On 11 April 2025, the Bicycle group joint venture exchanged on contracts to
sell the company which holds 100 New Bridge Street, EC4, to a third party,
with completion expected in April 2026. As the contract was exchanged after
the year end and will not complete for a further 12 months, this is considered
a non-adjusting event.
Appendix 1 - Five Year Review
Income Statements
Year ended Year ended Year ended Year ended Year ended
31.3.25 31.3.24 31.3.23 31.3.22 31.3.21
£000 £000 £000 £000 £000
Revenue 31,962 39,905 49,848 51,146 38,596
Net rental income 16,231 24,710 34,306 31,086 24,965
Development property profit/(loss) 299 (246) 2,005 3,519 678
(Provisions)/reversal of provisions - - (30) 2,285 (82)
Share of results of joint ventures 20,825 (9,310) 3,494 20,708 2,352
Other income 43 991 - 28 48
37,398 16,145 39,775 57,626 27,961
Gain/(loss) on sale of investment properties 9,376 - 4,564 (45) (1,341)
Revaluation surplus/(deficit) on investment properties 2,642 (181,213) (97,854) 33,311 19,387
Administrative expenses excluding performance related awards (7,412) (9,731) (9,845) (9,598) (9,276)
Performance related awards (including NIC) (3,293) (1,280) (2,990) (7,170) (5,140)
Finance costs (9,144) (8,608) (11,192) (19,234) (14,079)
Finance income 1,671 661 274 6 58
Change in fair value of derivative financial instruments (3,289) (5,609) 12,757 17,996 2,938
Profit/(loss) before tax 27,949 (189,635) (64,511) 72,892 20,508
Tax on profit/(loss) on ordinary activities - (179) - 16,002 (2,631)
Profit/(loss) after tax 27,949 (189,814) (64,511) 88,894 17,877
Balance Sheets
At At At At At
31.3.25 31.3.24 31.3.23 31.3.22 31.3.21
£000 £000 £000 £000 £000
Investment portfolio at fair value 379,900 479,600 693,550 961,500 756,875
Land, trading properties and developments 139 28 28 2,089 448
Assets held for sale - 42,761 - - -
Group's share of investment properties held by joint ventures 155,495 138,250 145,975 135,820 82,516
Group's share of land, trading and development properties held by joint 4,572 1,321 539 8,349 16,545
ventures
Group's share of land and development property surpluses 302 302 302 302 578
Group's share of total properties at fair value 540,408 662,262 840,394 1,108,060 856,962
Net debt 97,231 199,001 175,752 353,149 169,476
Group's share of net debt of joint ventures 15,562 62,580 55,667 35,111 11,688
Group's share of net debt 112,793 261,581 231,419 388,260 181,164
Net assets 426,094 401,075 608,675 687,043 608,161
EPRA net tangible assets value 428,186 406,468 613,455 713,279 658,663
Dividend per ordinary share paid 3.28p 11.55p 11.30p 10.30p 8.70p
Dividend per ordinary share declared 5.00p 4.83p 11.75p 11.15p 10.10p
EPRA earnings/(loss) per ordinary share 2.2p 3.5p 9.4p 5.2p (1.8)p
EPRA net tangible assets per share 348p 331p 493p 572p 533p
Appendix 2 - Property Portfolio
Property Description Area sq ft Vacancy rate at 31 March Vacancy rate at 31 March
(NIA) 2025 2024
% %
Completed properties
The Warehouse and Studio, The Bower, EC1 Multi-let office building 151,439 8.2 0.0
The Tower, The Bower, EC1 Multi-let office building 182,337 27.7 16.0
The Loom, E1 Multi-let office building 109,800 28.6 34.9
The JJ Mack Building, EC1(1) Multi-let office building n/a n/a 32.7
25 Charterhouse Street, EC1(1) Multi-let office building n/a n/a 15.2
The Power House, W4(1) Single-let recording studios/office building n/a n/a 0.0
443,576 21.3 17.6
Estimated completion date
Development pipeline
100 New Bridge Street, EC4 Existing office building being redeveloped 194,500 Q2 2026
Brettenham House, W2 Existing office building being redeveloped 128,000 Q2 2026
10 King William Street, EC1 Over-station office development 142,000 Q4 2026
1. Disposed of in the year.
Appendix 3 - EPRA Performance Measures
At At
31 March 31 March
2025 2024
EPRA net tangible assets £428.2m £406.5m
EPRA net reinstatement value per share 364p 349p
EPRA net tangible assets per share 348p 331p
EPRA net disposal value per share 347p 327p
EPRA net initial yield 4.6% 3.5%
EPRA "topped up" net initial yield 5.0% 5.1%
EPRA vacancy rate 26.3% 12.6%
EPRA cost ratio (including direct vacancy costs) 64.8% 56.8%
EPRA cost ratio (excluding direct vacancy costs) 55.9% 50.1%
EPRA earnings £2.7m £4.3m
EPRA earnings per share 2.2p 3.5p
Appendix 4 - Risk Register
Risk Description & potential impact Mitigating actions & key controls
Strategic Risks
Strategic risks are external risks that could prevent the Group delivering its
strategy. It is these risks which principally impact decision making with
respect to the purchasing or selling of property assets.
The Group's strategy is inconsistent with the market Our strategy must remain aligned with the evolving expectations and space • Robust and established governance and approval processes. Decisions
requirements of occupiers and adapt to changing market conditions in order to relating to the Group's strategy, financing and risk appetite are reserved to
deliver our pipeline. Inconsistency could result in reduced market sentiment the Board. Board responsible for authorisation of capital expenditure above
and negatively impact our financial performance and strategic ambitions - to delegated authority limits set by the Board annually.
acquire and structure, develop, let and asset manage and exit.
• Board continually assesses the viability of the Group strategy with
The quality, location, size and mix of properties in Helical's portfolio respect to the demand for space in central London. Strategy is discussed at
determine the impact of the risk. If the Group's chosen markets underperform, all Board and Executive Committee meetings, with dedicated Executive and Board
the impact on the Group's liquidity, investment property revaluations and strategy sessions conducted annually.
rental income will be greater.
• Board directly and indirectly engages with the Helical Shareholders on
the Group's strategy and Shareholder feedback considered in strategic
execution and decision making.
• Group management team highly experienced and adept at interpreting the
property market and making changes to the Group's strategy in light of market
conditions and occupier needs. Lean management team enables quick
implementation of strategic change when required.
• Group maintains rolling forecasts, with inbuilt sensitivity analysis to
model anticipated economic conditions.
• Continuous occupier engagement to ensure space on offer meets needs of
modern occupiers.
• We are actively engaged in decisions affecting our stakeholders through
membership of industry bodies/professional organisations/local business and
community groups.
• External advisors/property market experts present frequently to all
levels of the business.
Risks arising from the Group's significant development projects The Group is exposed to fluctuations in the market and tenant demand levels • Board approval required for development related commitments above agreed
over the course of development projects. threshold.
Development projects often require substantial capital expenditure for land • Development plans and exposure to risk are considered in the annual
procurement and construction, and typically take a considerable amount of time business plan.
to complete and generate rental income, or be sold.
• Management carefully reviews the prospective performance and risk
The risk of delays from legal disputes or failure to get planning approval is profiles of individual developments and, in some cases, builds properties in
an inherent risk of property development. several phases to minimise exposure to reduced demand for particular asset
classes or geographical locations over time.
The construction industry continues to be faced with shortages of both labour
and materials which creates risk of cost escalation and project delay. There • Group conducts developments in partnership with other organisations and
is also a risk of insolvency in the construction sector in 2025. pre-lets space to reduce development risk where appropriate.
Exposure to developments increases the potential monetary impact of cost • Management highly experienced and has a track record of developing
inflation, adverse valuation or other market factors which could affect the best-in-class office spaces in highly desirable, well-connected locations.
Group's financial capabilities and targeted financial returns.
• Detailed planning pre-applications and due diligence conducted in
Local authority and Governmental emphasis on climate change renders advance of any site acquisition. We utilise our existing, strong relationships
sustainability considerations key in the planning process, and compliance with with planning authorities and engage at an early stage on all developments.
applicable laws/regulations is essential from the outset of any development.
• Rigorous site investigations and surveys conducted by our trusted
The Group is susceptible to risks that materialise whilst on site and such partners prior to the commencement of on-site works to reduce the risk of
risks can cause delay and subsequential penalties or deferral of rental development issues arising.
income.
• We work with highly regarded suppliers and contractors with whom we have
existing relationships and continually collaborate with them to mitigate
development risks, minimise cost uncertainty and aid timely project delivery.
• KYC/FDD conducted on all contractors with continuous monitoring and
assessment of creditworthiness throughout the term of the contract. We
typically enter into contracts with our contractors on a fixed price basis and
incorporate appropriate contingencies.
• Project progress reports presented at each fortnightly Business Update
Meeting and at the monthly Executive Committee ("ExCo") meetings. Board
receives all pertinent financial and non-financial information for each asset
on a quarterly basis.
• Management continuously monitors the cost of materials and pressures on
the supply chain. Ongoing consideration given to investing in the most energy
efficient machinery and building materials and using renewable sources of
energy where possible.
• Major projects cash flow budgets updated each month and expenditure
tracked.
Property values decline/reduced tenant demand for space We are at risk of property values declining through changes in market • Diversity of our occupiers reduces risk of over-exposure to one sector.
conditions, including underperforming sectors or locations, lack of tenant
demand, deferral of occupiers' decisions, or general economic uncertainty. • Regular occupier financial covenant checks conducted ahead of approving
Geopolitical tensions can significantly impact property yields, due to leases to limit exposure to tenant failure.
increased uncertainty and consequent investor risk aversion.
• Management accounts showing Group's performance against financial
Property valuations are dependent on the level of rental income receivable and covenants reviewed by the Board on a quarterly basis.
expected to be receivable on that property in the future. Therefore, declines
in rental income could have an adverse impact on revenue and the value of the • Management regularly reviews external data, seeks the advice of industry
Group's properties. experts and monitors the performance of individual assets and sectors in order
to dispose of non-performing assets and rebalance the portfolio to suit the
Falling valuations could lead to uncertainty regarding development scheme changing market.
returns and the viability of future development schemes. The Group's net asset
value and gearing levels will also be impacted by a fall in property values. • Management regularly models different property revaluation scenarios
through its forecasting process in order to mitigate against potential impact.
• We continue to design and innovate in the areas of sustainability,
technology, wellbeing and service provision and, working closely with our
managing agents, Ashdown Phillips, we engage with our occupiers to understand
their evolving needs and respond quickly and collaboratively to any changing
requirements.
• Market/customer demand and expectations regarding environmentally
sustainable space are monitored.
• Continuous monitoring of the property market by the Board and
management. The bi-weekly Business Update Meeting considers factors such as
new leases, lease events and tenant issues with respect to each property in
the portfolio.
• With respect to new property acquisitions, detailed report including all
key metrics and pertinent due diligence prepared for formal appraisal by the
ExCo. Following such appraisal, any acquisition recommended by the ExCo will
require formal Board approval.
Geopolitical and economic Significant events or changes in the global/UK political or economic landscape • Management monitors macroeconomic research and economic outlook
may have a significant impact on ability to plan and deliver strategic considerations are incorporated into the Group's annual strategic plans.
priorities in accordance with the business model. Such events or changes may
result in decreased investor activity and reluctance of occupiers to make • Management conducts ongoing assessments of the impacts of current
leasing decisions. Furthermore, UK Government policy making has the potential macroeconomic and geopolitical concerns and adapts any business decisions
to impact London's desirability from an investor standpoint. accordingly.
Macroeconomic drivers, such as interest rates, can significantly impact • Management seeks advice from experts to ensure it understands the
pricing in the real estate market and the availability of affordable geopolitical environment and the impact of emerging regulatory and tax changes
financing. on the Group.
Geopolitical volatility can foster acute instability in commodities, FX and • Management maintains good relationships and dialogue with planning
other financial markets that track straight through to the balance sheet, consultants and local authorities. Where appropriate, management joins with
financial operating model and investor perceptions. This can degrade the industry representatives to contribute to policy and regulatory debate
macroeconomic conditions on which our strategy is based. relevant to the industry.
Political instability and unrest can have a significant knock-on effect on
global economies and trade, leading to changes in market dynamics and
influence, such as increasing role of governments in economies and shifts in
geopolitical powers.
Geopolitical uncertainty from conflict continues to affect global and local
economies, e.g. inflationary pressures arising from supply chain shortages,
high interest rates and energy costs. These conflicts could escalate or spread
to include other countries.
Climate change Climate change risks continue to increase in prominence and importance. • Sustainability is a standing agenda item on the Business Update, the
Failing to respond to these risks and make appropriate disclosures (in line ExCo and the Board meetings.
with societal attitudes or legislation/regulation), or failing to identify
potential opportunities could lead to reputational damage, loss of income or • The Group has a dedicated Head of Sustainability who is responsible for
decline in property values. Having strong sustainability credentials is a ensuring the Group's objectives and initiatives relating to sustainability are
market differentiator and provides a competitive advantage. met.
There is also the risk that the costs to operate our business (energy or • The Group Sustainability Committee reviews the Group's approach and
water) or undertake development activities (construction materials) will rise strategy to climate-related risks and sets appropriate targets and KPIs to
as a consequence of climate change and the actions taken to safeguard against effectively monitor the Group's performance. The Committee reports regularly
it. to the Board and Executive Committee on emerging issues and mitigation plans.
The Group is also alert to the physical risks of climate change, e.g. the • The Board has a designated Non-Executive Director responsible for
increasing severity and frequency of extreme weather events which pose threats sustainability.
to real estate assets.
• The Group annually reviews its Sustainability Policy and other related
policies, which are distributed to all staff and published on the Group's
website.
• The Group conducts detailed scenario analysis of the risks and
opportunities that arise due to specific climate-related scenarios on an
annual basis to ensure the appropriate actions/responses are taken. This
analysis is incorporated into our TCFD Statement.
• Sustainability Performance Report produced annually, with key data and
performance points externally assured.
• Early engagement with supply chain to procure the latest sustainable
technology for our developments.
• Group operates a sustainability strategy, Net Zero Carbon Pathway and
Environmental Management System which include:
• Environmental Policy.
• Annual (and ongoing) performance targets.
• Performance Measures Checklists to ensure minimum sustainability
requirements are applied across our development activities.
• Checklists to ensure embodied carbon data is collated from development
and refurbishment sites.
• Group ensures compliance with applicable legal/regulatory frameworks and
reports on its sustainability performance and actively horizon scans for
new/changes to legislation.
• Annual submission to GRESB and CDP.
• Property energy usage is collated on a quarterly basis by the managing
agents and reviewed by a third party sustainability consultant, with limited
external assurance provided by ESG auditors.
Financial Risks
Financial risks are those that could prevent the Group from funding its chosen
strategy, both in the long and short term.
Availability and cost of bank borrowing, cash resources and potential breach The inability to roll over existing facilities or take out new borrowing could • Group's financial position is reviewed at each ExCo and Board meeting.
of loan covenants impact the Group's ability to maintain its current portfolio and purchase new
assets. • Group conducts bi-annual going concern and viability reviews.
The Group is at risk of increased interest rates on unhedged borrowings. • Group maintains good relationships with numerous established lending
institutions and borrowings are spread across a number of such lenders.
If the Group breaches debt covenants, lending institutions may require the
early repayment of borrowings. • Management monitors the cash levels of the Group on a weekly basis and
maintains sufficient levels of cash resources and undrawn committed bank
The lack of global liquidity has the potential to create significant obstacles facilities to fund opportunities as they arise. Six-year cash flow forecasts
for the Group and liquidity risk could lead to missed opportunities or and yearly budgets are maintained to plan for investments and raise financing
financial losses. in advance.
Reduced access to capital markets due to external factors, e.g. global • Group hedges the interest rates on the majority of its borrowings,
financial crisis, is an ongoing risk. effectively fixing or capping the rates over several years. Maturity dates of
borrowings are also spread over several years.
• The impact of changes in valuation, interest rates and rental income on
financial covenants is closely monitored. Management conducts sensitivity
analyses to assess the likelihood of future breaches based on significant
changes in property values or rental income. The risk is further mitigated
through the obtaining of tenant guarantors/bank guarantees/deposits.
• Group has cash and undrawn bank facilities available to it and an
appropriate level of borrowings.
Operational Risks
Operational risks are internal risks that could prevent the Group from
delivering its strategy.
Our people and relationships with business partners and reliance on external The Group's continued success is reliant on its management and staff and • Remuneration Committee oversees the Directors' Remuneration
partners maintaining its successful relationships with its joint venture ("JV") Policy and reviews and approves incentive arrangements to ensure they are
partners. With respect to assets held in conjunction with third parties, the commensurate with market practice. Remuneration is set to attract and retain
Group's control over these assets is more limited and JV structures may also high calibre staff. Remuneration of executives and all other staff is aligned
reduce the Group's liquidity. Operational effectiveness and financing to Helical's Purpose, Values and Culture.
strategies may also be adversely impacted if partners are not strategically
aligned. • Nominations Committee and Board continuously review
succession plans, and succession plans for senior and business critical roles
Ineffective succession planning, or failure to attract, develop and retain the are kept under review, supporting the long-term success of the business.
right people with requisite skills, as well as failing to maintain a positive
working environment for employees, could inhibit the execution of our strategy • Our annual appraisal process focuses on future career
and diminish our long-term success. development and employee objectives and formalised through personal
development plans. Staff are encouraged to undertake personal development and
The Group is dependent on a number of external third parties to ensure the training courses, supported by Helical.
successful delivery of its development programme and asset management of
existing assets. These include: • The Board and senior management engage directly with
employees through a variety of engagement initiatives which enable the Board
• Contractors and suppliers; to ascertain staff satisfaction levels and implement changes to working
practices and the working environment as necessary. Since 2019, the Group has
• Consultants; had a designated Non-Executive Director for Workforce Engagement on the Board.
• Managing agents; and • The Board promotes an open culture, enabling strategic
direction to be fully understood by all staff, and encourages collaboration
• Legal and professional teams. and sharing of ideas, opportunities and concerns (for example, all staff are
invited to the bi-weekly Business Update Meeting). This results in having a
The Group would be adversely impacted by increases in the cost of services high-performing and motivated team.
provided by third parties.
• All-staff training activities and events are organised
throughout the year.
Business partners
• Group nurtures well established relationships with joint
venture partners, basing selection for future projects on previous successful
collaborations.
• Group has a strong track record of working effectively with
a diverse range of partners.
• Joint venture business plans are prepared to ensure
operational and strategic alignment with our partners.
External partners
• The Group actively monitors its development projects and
uses external project managers to provide support. Potential contractors are
vetted for their quality, health and safety record and financial viability
prior to engagement.
• The Group has a highly experienced team managing its
properties, which regularly conducts on-site reviews and monitors cash flows
against budget.
• The Group seeks to actively monitor and maintain excellent
relationships with its specialist professional advisors.
Health and safety The nature of the Group's operations and markets exposes it to potential • Clear tone from the top with respect to safety and wellbeing
health and safety ("H&S") risks both internally and externally within the driven by our ExCo and overseen by the Board. H&S is a standing item on
supply chain. both Board and ExCo agendas and report from external H&S consultant
reviewed at both meetings.
Compliance with H&S legislation/regulation, specifically building and fire
safety regulations, e.g. Building Safety Act 2022, is key. • Board reviews and is ultimately responsible for the
management of potential impacts of building and fire safety regulations,
As a real estate developer, we are exposed to public liability risks and there including under the Building Safety Act 2022.
is always the potential for accidents to occur on our sites involving
occupiers or employees. • Group reviews and updates its H&S Policy regularly and
it is approved by the Board annually.
• Group H&S Committee oversees, and drives improved
performance in, the H&S aspects of strategies, policies and working
practices. The Committee also monitors relevant legal and regulatory
developments.
• Contractors are required to comply with the terms of our
H&S Policy.
• Group engages the expertise of an external health and safety
consultant to review contractor agreements prior to appointment and ensures
they have appropriate policies and procedures in place, then monitors the
adherence to such policies and procedures throughout the project's lifetime.
• Ongoing training in H&S is undertaken by our employees
as appropriate.
• To address public liability risks, through our robust
H&S risk management strategies, we ensure our properties are properly
maintained, safety protocols are in place and we conduct regular risk
assessments to identify and mitigate potential hazards.
• The internal asset managers conduct regular site visits and
we continually review our assets with input from our external managing agents,
Ashdown Phillips, to maintain the condition of our properties and ensuring
ongoing compliance with law and regulation.
• We have invested in comprehensive public liability insurance
to provide financial protection in the event of legal claims arising from
injuries or property damage.
Significant business disruption/external catastrophic event/cyber-attacks to The Group's operations, reputation or financial performance could be adversely • Group has Business Continuity Plans and IT Business
our business and our buildings affected and disrupted by major external events such as pandemic disease, Continuity Plans and response procedures that are regularly reviewed and
civil unrest, war and geopolitical instability, terrorist attacks, extreme tested.
weather, environmental incidents and power supply shortages. All of these
potential events could have a considerable impact on the global economy and • Group engages and actively manages external IT experts to
our stakeholders. ensure its IT systems operate effectively, to the highest standards and that
we respond to the evolving IT security environment, managing risk and
The increasing reliance on and use of digital technology has heightened the improving technical standards. This includes use of cloud based systems,
risks associated with IT and cyber security. Risks are continually evolving, penetration testing, regular off-site backups and a comprehensive disaster
and we must design, implement and monitor and maintain effective controls to recovery process. The external provider also ensures the system is secure and
protect the Group from cyber-attack or major IT failure. this is subject to routine testing including bi-annual disaster recovery tests
and annual Cyber Essential Plus Certification.
Misinformation and disinformation may radically disrupt electoral processes in
several economies over the next few years. • Robust control environment in place for invoice approval and
payment authorisations, including authorisation limits.
The metaverse and artificial intelligence are two forms of disruptive
technology which have been identified as having the potential to reduce the • Staff training and awareness programmes operate throughout
demand for physical office space, and thus impact our strategy. the year.
• Group periodically instructs external reviews of its
anti-financial crime and cyber security frameworks and delivers training to
all staff.
• Group has disaster recovery plans, on-site security and
insurance policies for all assets in the portfolio to deal with any external
events and mitigate their impact.
• Group's external property managing agents operate industry
standard IT security controls and continuously review their suitability.
• Group has broad cyber insurance cover to help mitigate
financial losses and liabilities associated with a compromise of sensitive
data.
Reputational Risks
Reputational risks are those that could affect the Group in all aspects of its
strategy.
Poor management of stakeholder relations and non-compliance with prevailing Reputational damage resulting in a loss of credibility with key stakeholders • Board regularly reviews its strategy and risks to ensure it
legislation, regulation and best practice is a continuous risk for the Group. is acting in the interests of its stakeholders.
The nature of the Group's operations and markets exposes it to financial crime • We ensure strong community involvement in the design process
risks (including bribery and corruption risks, money laundering and tax for our developments and create employment and education opportunities through
evasion) both internally and externally within the supply chain. our construction and operations activities.
The Group could attract criticism, negative publicity or financial penalties • Group policies and procedures covering applicable
for failing to comply with prevailing relevant legislation and regulation. legislation and regulation are reviewed/updated and approved by the Board
annually.
As a REIT, the Group is required to adhere to the relevant legislation and
failure to comply could result in adverse tax consequences. • Group policies and procedures dealing with key legislation
and regulation are appended to the Staff Handbook and available to all staff.
• Group maintains a strong relationship with investors and
analysts through regular meetings.
• Group avoids doing business in high-risk territories. The
Group has related policies and procedures designed to mitigate bribery and
corruption risks and engages legal professionals to support these policies
where appropriate.
• All staff are required to undertake annual training on AML,
bribery prevention and equality, diversity and inclusion. All employees are
required to submit details of corporate hospitality and gifts received.
Periodically, staff receive anti-financial crime training to enhance their
awareness.
• Group's Head of Tax regularly monitors its current and
projected REIT compliance.
• Group whistleblowing reporting channel enables staff to
report wrongdoing confidentiality or anonymously.
Appendix 5 - 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.
Compound Annual Growth Rate (CAGR)
The annualised average growth rate.
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 23).
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 23).
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 23).
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 23).
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.
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 23).
Passing rent
The annual gross rental income being paid by the tenant.
Places for London (PfL)
The wholly owned property company of Transport for London
Purpose Built Student Accommodation (PBSA)
Specifically designed and developed housing for students.
Reversionary yield
The income 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
25).
See-through net gearing
The see-through net borrowings expressed as a percentage of net assets (see
Note 26).
Total Accounting Return
The growth in the net asset value of the Company plus dividends paid in the
year, expressed as a percentage of net asset value at the start of the year
(see Note 27).
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 28).
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 year expressed as a percentage of
the share price at the beginning of the year.
Transport for London (TfL)
Local government body responsible for most of the transport network in London.
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:
22 Ganton Street
London
W1F 7FD
T: 020 7629 0113
E: reception@helical.co.uk (mailto:reception@helical.co.uk)
www.helical.co.uk (http://www.helical.co.uk)
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