TIDMHLCL
RNS Number : 3966G
Helical PLC
25 November 2020
HELICAL PLC
("Helical" or the "Group" or the "Company")
Half Year Results for the Six Months to 30 September 2020
HELICAL RECYCLES EQUITY TO REDEVELOP, REFURBISH AND
REPOSITION
Gerald Kaye, Chief Executive, commented:
"We announce these half year results eight months into the
Covid-19 pandemic and during a period of lockdown as we await
greater clarity on the relaxation of current restrictions prior to
Christmas. Whether the Government has struck the right balance
between the urgent need for a re-opening of the economy,
particularly in London, and the continued protection of the health
of the nation is not yet clear. However, the renewed optimism that
this crisis will eventually end on the rollout of a number of
recently announced and anticipated vaccines and the return to some
semblance of normality in 2021 is welcome.
"We believe that the enforced "working from home" experiment in
2020 will result in more flexibility being offered to some office
workers going forward. However, we also believe that the
disadvantages of working at home with its inadequate ergonomics,
lack of divide between work and home life, potential mental health
issues caused by isolation from colleagues and, for many, its ever
decreasing productivity as collaboration and creativity diminish,
will provide the impetus for a return to the office as the place of
work.
"Our experience of the pandemic has reinforced our view that our
investment in multi-let offices in well-located and accessible
Grade A buildings, incorporating the latest in sustainable building
design, offering state of the art technology with occupier health
and well-being at their core, provides the most resilient defence
against adversity and the best opportunity for continued growth.
This has been borne out by our strong rent collection figures and
robust portfolio valuation.
"We see a divergence between these Grade A buildings and the
rest from both a capital value and rental growth perspective; this
pattern will accelerate as tenants seek to leave buildings which
are not fit for purpose in the search for working environments that
match the expectations of their employees.
"Our near term focus remains on letting the available space
across the portfolio. At the same time, having sold a portfolio of
three properties in Manchester since the half year end and reduced
the Group's gearing levels to an historic low, our efforts are also
centred around using our considerable firepower to obtain new
projects. These will be a combination of properties acquired for
redevelopment and the refurbishment and repositioning of existing
buildings, delivering the highest quality, fit for purpose office
space, suitable for the post-Covid world."
Operational Performance
-- 93.2% of all rent contracted and payable for the March and
June quarters collected. Of the balance, rent holidays have been
granted on 3.5%, mainly to F&B occupiers, leaving 3.3% subject
to ongoing discussions with tenants.
-- 86.8% of the September quarter rents due to date have been
collected. Through further cash receipts from monthly payments, it
is anticipated that between 91% and 94% will have been collected by
the end of December.
-- Three new lettings completed in the period, representing
5,531 sq ft, delivering contracted rent of GBP0.3m (Helical's share
GBP0.2m) at 12.4% above 31 March 2020 ERV.
-- At 33 Charterhouse Street, London EC1, a new 150 year lease
was granted, with a GBP140m loan facility secured from Allianz to
finance the development. Mace has been appointed as principal
contractor.
-- On 28 April 2020, Helical completed the sale of 90
Bartholomew Close, Barts Square, EC1 to La Francaise Real Estate
Partners International, a pan-European investment business acting
on behalf of a French collective real estate investment vehicle.
The disposal price of GBP48.5m reflected a net initial yield of
3.92% (GBP1,594 psf capital value).
-- Following the period end, contracts were exchanged for the
sale of three Manchester properties, The Tootal Buildings, 35 Dale
Street and Fourways, to Pictet Alternative Advisors, SA and XLB
Property Limited for a net sale price of GBP114.8m, at a blended
net initial yield of 5.2% and marginally above 30 September 2020
and 31 March 2020 book values.
Financial Highlights
Earnings
-- IFRS basic loss per share of 8.9p (2019: earnings of 11.7p).
-- IFRS loss before tax of GBP12.7m (2019: profit of GBP13.1m).
-- Total Accounting Return(1) of -2.0% (2019: 2.7%).
-- See-through Total Property Return(1) of GBP6.9m (2019: GBP28.6m):
- Group's share(1) of net rental income of GBP11.9m (2019: GBP13.0m).
- Development losses of GBP0.5m (2019: profits of GBP5.7m),
after provisions of GBP0.3m (2019: GBP1.2m).
- Net loss on sale and revaluation of Investment properties of GBP4.5m (2019: gain of GBP9.9m).
-- EPRA loss per share(1) of 1.0p (2019: earnings of 5.4p).
-- Interim dividend maintained at 2.70p per share (2019: 2.70p).
Balance Sheet
-- Net asset value down 3.2% to GBP579.2m (31 March 2020: GBP598.7m).
-- EPRA net tangible asset value per share(1) down 3.6% to 505p (31 March 2020: 524p).
-- EPRA net asset value per share(1) down 2.2% to 500p (31 March 2020: 511p).
Property Valuations
-- IFRS property portfolio value of GBP815.7m (31 March 2020: GBP819.6m).
-- See-through property portfolio(1) of GBP918.2m (31 March 2020: GBP949.3m).
-- See-through Investment property valuation loss, on a
like-for-like basis, of 0.5% (0.6% including purchases and
gains/losses on sales).
Financing
-- See-through loan to value(1) of 32.2% (31 March 2020: 31.4%).
-- See-through net borrowings(1) of GBP295.3m (31 March 2020: GBP298.5m).
-- Average maturity of the Group's share(1) of secured debt of
3.7 years (31 March 2020: 4.1 years), increasing to 5.1 years,
fully utilised and upon exercise of options to extend current
facilities.
-- See-through average cost of borrowings(1) of 3.5% (31 March 2020: 3.5%).
-- Group's share(1) of cash and undrawn bank facilities at 30
September 2020 of GBP323m (31 March 2020: GBP279m).
Pro forma(2) Financing post Manchester Sales
-- See-through property portfolio(1) of GBP804.8m.
-- See-through loan to value(1) of 22.4%.
-- See-through net borrowings(1) of GBP180.5m.
-- Group's share(1) of cash and undrawn bank facilities of GBP438m.
Portfolio Update
London Portfolio
-- 0.5% valuation decrease, on a like-for-like basis, with a
portfolio valued at GBP760.3m (85% of Investment portfolio) at 30
September 2020 compared to GBP776.9m (85% of Investment portfolio)
at 31 March 2020.
-- Contracted rents of GBP29.9m (31 March 2020: GBP31.1m)
growing to an ERV of GBP49.9m (31 March 2020: GBP50.6m).
-- WAULT of 6.2 years (31 March 2020: 6.6 years).
Manchester Portfolio
-- 0.4% valuation decrease on a like-for-like basis, with a
portfolio valued at GBP138.0m (15% of Investment portfolio) at 30
September 2020 compared to GBP136.7m (15% of Investment portfolio)
at 31 March 2020 after taking into account capital expenditure.
-- Contracted rents increased to GBP6.8m (31 March 2020:
GBP6.5m) growing to an ERV of GBP9.3m (31 March 2020: GBP9.3m).
-- WAULT of 4.3 years (31 March 2020: 3.9 years).
Sustainability Highlights
-- New Sustainability Strategy announced, "Built for the
Future", setting out the Company's long-term vision and
objectives.
-- Achieved the UK's first BREEAM 2018 New Construction
"Outstanding" rating for the design stage at 33 Charterhouse
Street, London EC1 office development.
-- Received a Silver award (2019: Bronze) under the EPRA
Sustainability Best Practice Recommendations and 3* Green ratings
from GRESB (2019: 2*).
Interim Dividend
An Interim Dividend of 2.70 pence per share (2019: 2.70 pence
per share) will be paid to Shareholders as follows:
Ex-dividend date 3 December 2020
Record date 4 December 2020
Payable date 31 December 2020
For further information, please contact:
Helical plc 020 7629 0113
Gerald Kaye (Chief Executive)
Tim Murphy (Finance Director)
Address: 5 Hanover Square, London,
W1S 1HQ
Website: www.helical.co.uk
Twitter: @helicalplc
FTI Consulting 020 3727 1000
Dido Laurimore/Richard Gotla
schelical@fticonsulting.com
Half Year Results Presentation
Helical will be holding an audio webcast with a live Q&A for
analysts and investors starting at 9:00 am on Wednesday 25 November
2020.
The presentation will be on the Company's website
www.helical.co.uk and a conference call facility will be
available.
The dial-in details are as follows:
Participants, Local - London, United
Kingdom: +44 (0)330 336 9411
Passcode: 1285777
Webcast Link:
https://webcasting.brrmedia.co.uk/broadcast/5f7ed93bc4d0076f2b93d5a2
1. See Glossary for definition of terms. The half year condensed
unaudited consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS).
In common with usual and best practice in our sector, alternative
performance measures have also been provided to supplement IFRS,
some of which are based on the recommendations of the European
Public Real Estate Association ("EPRA"), with others designed to
give more relevant information about the Group's share of assets
and liabilities, income and expenses in subsidiaries and joint
ventures.
2. Pro forma measures adjusted to reflect the impact of the post
period end sale of The Tootal Buildings, 35 Dale Street and
Fourways for a net sale price of GBP114.8m.
Chief Executive's Statement
Overview
We announce these half year results eight months into the
Covid-19 pandemic and during a period of lockdown as we await
greater clarity on the relaxation of current restrictions prior to
Christmas. Whether the Government has struck the right balance
between the urgent need for a re-opening of the economy,
particularly in London, and the continued protection of the health
of the nation is not yet clear. However, the renewed optimism that
this crisis will eventually end on the rollout of a number of
recently announced and anticipated vaccines and the return to some
semblance of normality in 2021 is welcome.
In the context of the challenges presented by the pandemic, the
Company has performed well, collecting c.93% of rents from its
tenants and reducing its finance and administration costs.
Subsequent to the half year, it has strengthened its Balance Sheet
by selling assets above book value and, in the process, reducing
its gearing levels to the lowest for over 30 years.
We have also made good progress in meeting our sustainability
targets during the period, issuing our new Sustainability Strategy
and improving our performance against industry benchmarks.
Results for the Half Year
The loss before tax for the half year to 30 September 2020 was
GBP12.7m (2019: profit of GBP13.1m) with a see-through Total
Property Return of GBP6.9m (2019: GBP28.6m). Net rental income of
GBP11.9m (2019: GBP13.0m) was earned over the period. Developments
contributed a small loss of GBP0.2m (2019: profit of GBP6.9m)
before provisions of GBP0.3m (2019: GBP1.2m). The loss on sale and
revaluation of the investment portfolio was GBP4.5m (2019: gain of
GBP9.9m).
Total see-through finance costs decreased to GBP7.9m (2019:
GBP8.9m), offset by interest receivable of GBPnil (2019: GBP1.3m)
to give net finance costs of GBP7.9m (2019: GBP7.6m). A reduction
in expected future interest rates led to a charge from the
valuation of the Group's derivative financial instruments of
GBP5.3m (2019: GBP5.0m). Recurring administration costs were 10%
lower at GBP4.8m (2019: GBP5.3m), with GBP0.3m (2019: GBP0.3m) in
our joint ventures. The provision for performance related
remuneration, including associated NIC, was GBP0.4m (2019:
GBP1.7m).
A corporation tax charge of GBPnil (2019: GBP1.2m) has been
recognised in the Half Year Results. With a reduction in the
Group's deferred tax provision of GBP2.0m, a net tax credit of
GBP2.0m (2019: GBP0.9m) has been recognised.
The loss for the period, after recognition of this tax credit,
was GBP10.8m (2019: profit of GBP14.0m). There was an IFRS basic
loss per share of 8.9p (2019: earnings of 11.7p) and an EPRA loss
per share of 1.0p (2019: earnings of 5.4p).
On a like-for-like basis, the Investment portfolio decreased in
value by 0.5% (0.6% including purchases and gains/losses on sales).
The see-through total portfolio value reduced to GBP918.2m (31
March 2020: GBP949.3m).
The portfolio was 81% let at 30 September 2020, generating
contracted rents of GBP36.7m (31 March 2020: GBP37.6m), at an
average of GBP42.18 psf, growing to GBP47.4m on the letting of
currently vacant space, towards an ERV of GBP59.3m (31 March 2020:
GBP60.0m). The Group's contracted rent at 30 September 2020 had a
Weighted Average Unexpired Lease Term ("WAULT") of 6.2 years in
London and 4.3 years in Manchester.
The Total Accounting Return ("TAR"), being the growth in the net
asset value of the Group plus dividends paid in the year, was -2.0%
(2019: 2.7%). Based on EPRA net tangible assets the TAR was -2.5%
(2019: 2.7%). EPRA net tangible asset value per share was reduced
by 3.6% to 505p (31 March 2020: 524p), with EPRA net disposal value
per share down 3.1% to 465p (31 March 2020: 480p).
EPRA Earnings and Dividends
Helical is a capital growth stock, seeking to maximise value by
successfully letting redeveloped and refurbished property. Once
stabilised , these assets are either retained for their long term
income and reversionary potential or sold to recycle equity into
new schemes.
This recycling leads to fluctuations in our EPRA earnings per
share, as the calculation of these earnings excludes capital
profits generated from the sale and revaluation of assets. As such,
both rental income and realised capital profits are considered when
determining the payment of dividends.
For this half year, we have declared an unchanged interim
dividend of 2.70p (2019: 2.70p).
Our Balance Sheet Strength and Liquidity
The Company uses gearing on a tactical basis, dependant on
market fluctuations, being increased to accentuate performance when
property returns are judged to materially outperform the cost of
debt and lowered when seeking to reduce exposure to the property
market.
During the half year to 30 September 2020, on a see-through
basis, the Group invested GBP8.4m in its Investment portfolio and
incurred development expenditure of GBP4.6m in its residential
scheme at Barts Square, London EC1. Offsetting this expenditure,
the Group generated GBP19.7m of investment sales and GBP22.8m from
the sale of development stock, reducing net borrowings to GBP295.3m
(31 March 2020: GBP298.5m).
At 30 September 2020, we had GBP43.8m of cash deposits available
to deploy without restrictions and a further GBP27.6m of rent and
sales receipts collected in bank accounts available to service
payments under loan agreements, cash held at managing agents and
cash held in joint venture. Furthermore, the Group has GBP251.4m of
loan facilities available to draw on plus GBP25.3m of currently
uncharged investment assets.
With no secured borrowings repayable before December 2021, the
weighted average maturity of its secured borrowings is 3.7 years,
increasing to 5.1 years on exercise of options to extend the
current facilities and on a fully utilised basis. The Group's
weighted average cost of debt is 3.5%. The marginal cost of fully
utilising the undrawn RCF is 1.6%.
The see-through loan to value ratio ("LTV") increased marginally
to 32.2% at the half year end (31 March 2020: 31.4%). Our
see-through net gearing, the ratio of net borrowings to the net
asset value of the Group, increased from 49.9% as at 31 March 2020
to 51.0%. Following the sale of three assets in Manchester, after
the half year end, our pro forma LTV and gearing fell to 22.4% and
31.2%, respectively.
Sustainability
During the period we announced our new Sustainability Strategy,
"Built for the Future", which sets out our long-term vision,
together with the governance structure to help us achieve our
objectives and targets. As part of our commitment to sustainability
reporting we measure our performance against industry-wide
benchmarks, and I am pleased to be able to report positive progress
against these measures during the period.
In July, we achieved the UK's first BREEAM 2018 New Construction
"Outstanding" rating for the design stage of 33 Charterhouse
Street, London EC1, a significant milestone for the Company. We are
also pleased to have achieved the EPRA Sustainability Best Practice
Recommendation "Silver" award, an improvement on the "Bronze" award
of previous years. Finally, we have improved our GRESB score from a
2* to a 3* Green rating, increasing our score from 63 to 76.
Outlook
We believe that the enforced "working from home" experiment in
2020 will result in more flexibility being offered to some office
workers going forward. However, we also believe that the
disadvantages of working at home with its inadequate ergonomics,
lack of divide between work and home life, potential mental health
issues caused by isolation from colleagues and, for many, its ever
decreasing productivity as collaboration and creativity diminish,
will provide the impetus for a return to the office as the place of
work.
Our experience of the pandemic has reinforced our view that our
investment in multi-let offices in well-located and accessible
Grade A buildings, incorporating the latest in sustainable building
design, offering state of the art technology with occupier health
and well-being at their core, provides the most resilient defence
against adversity and the best opportunity for continued growth.
This has been borne out by our strong rent collection figures and
robust portfolio valuation.
We see a divergence between these Grade A buildings and the rest
from both a capital value and rental growth perspective; this
pattern will accelerate as tenants seek to leave buildings which
are not fit for purpose in the search for working environments that
match the expectations of their employees.
Our near term focus remains on letting the available space
across the portfolio. At the same time, having sold a portfolio of
three properties in Manchester since the half year end and reduced
the Group's gearing levels to an historic low, our efforts are also
centred around using our considerable firepower to obtain new
projects. These will be a combination of properties acquired for
redevelopment and the refurbishment and repositioning of existing
buildings, delivering the highest quality, fit for purpose office
space, suitable for the post-Covid world.
Gerald Kaye
Chief Executive
25 November 2020
Helical's Property Portfolio - 30 September 2020
Property Overview
For Helical to generate capital profits, the Group needs to
identify those areas where it believes tenant demand is, or will
become, strong and to source opportunities in those areas at an
appropriate entry price. Equally important, we need to provide
inspiring working environments suited to the needs of our
customers. Using the skills, knowledge and expertise gained over
many years, the Helical team aims to deliver attractive and
exciting office space in our identified locations.
Helical divides its property activities into two markets: London
and Manchester offices. At 30 September 2020, London represented
84.6% and Manchester 15.4% of the Investment property portfolio.
Whilst there are structural differences in these markets, Helical
has found that its business model can be applied successfully to
each, driving capital growth, development profits and rental
income.
London
Market Context
In our judgement, the London commercial property market
continues to provide the best source of capital profits. Whilst
Covid-19 has created significant headwinds, we consider that the
London market is robust and will deliver strong long term growth.
By applying the three "Rs" - redeveloping, refurbishing and
repositioning, combined with our ability to effectively engage with
occupiers and evolve our offering, we believe we are well
positioned to take advantage of opportunities that are presented by
the challenging economic backdrop.
From an occupational perspective, we expect strong medium to
long term demand. Whilst take up of office space has been
suppressed across all markets in 2020, we anticipate a return in
demand for high quality commercial office space. The supply of new
prime office space is constrained and this shortage has been
further exacerbated by Covid-19, with the delayed commencement and
completion of development projects. CBRE has reported that, of the
14m sq ft of development identified as under construction in London
at the end of Q3 2020, 44% was already let or under offer.
Whilst Covid-19 has necessitated increased remote working, the
office remains central to the successful operation of a business,
providing a vital location for collaboration, learning and the
development and maintenance of corporate culture. The increasing
emphasis occupiers are placing on employee wellbeing and
sustainability will drive them towards best in class flexible
space. Providing amenity rich buildings is at the heart of
Helical's approach, with all our buildings already including
generous cycle provision and changing facilities.
The rapid integration of technology into the workplace
continues, expedited by the increase in remote working and
contactless technologies, with the best buildings providing
innovative solutions to enhance occupier efficiency. We have
responded to these trends and our London portfolio places an
emphasis on quality, modernity and wellbeing, helping to
differentiate it from the increasing amount of vacant, second hand
"grey" space available.
As occupiers review the usage of their space, it is increasingly
important to engage with our customers and maintain strong
relationships. By offering flexible leases on our multi-let assets
and allowing them to occupy space commensurate with their changing
requirements, we target their long-term retention. We have also
continued to evolve our fitted "Plug & Play" flexible solution
which we offer at appropriate buildings, typically on smaller
floorplates.
The volume of investment transactions has been subdued due to
concerns over Covid-19 but there remains significant capital
available for deployment into the office market, particularly in
developed markets such as London, and as restrictions have been
lifted we have seen an increase in office transactions.
Knight Frank has highlighted an increased focus from investors
on cities which embrace growth in new sectors, including technology
and life sciences. In its analysis, London is seen as the leading
global city for innovation. As with occupational demand,
sustainability criteria feature highly and London is also
considered to be leading the way in promoting green
initiatives.
When compared against similar global cities, London remains
liquid and competitively priced, with prime yields in Central
London remaining above previous cyclical lows, helped by the prime
yield to gilt spread remaining at a 10 year high.
We remain confident that London will continue to provide the
best source of capital profits for the foreseeable future and that
our flexible, best in class portfolio is well positioned to take
advantage of the demands of an evolving market.
London Rent Collection
Despite the impact of Covid-19, rent collection for the March,
June and September quarters has remained high across the London
portfolio.
March June September
quarter quarter quarter
% % %
---------------------------- -------- -------- ---------
Rent collected to date 95.0 91.8 85.8
Rent to be collected by way
of payment plan - - 7.4
Rent under discussion 3.3 4.2 3.4
Rent concessions 1.7 4.0 3.4
---------------------------- -------- -------- ---------
In London, we completed two lettings in the period, representing
2,841 sq ft. These lettings generated contracted rent of GBP0.2m
(Helical's share GBP0.1m) at a 13.0% premium to 31 March 2020
ERV.
Four units, representing 9,390 sq ft and contracted rent of
GBP0.4m, became vacant in the period as a result of a lease expiry
or breaks.
London Portfolio
Our London portfolio comprises income-producing multi-let
offices, office refurbishments and developments and a mixed use
commercial/residential scheme. Our strategy is to continue to
increase the size of our London portfolio, focusing on areas where
we see strong tenant demand and growth potential, such as the "Tech
Belt" that runs from King's Cross through Farringdon, Old Street
and Shoreditch to Whitechapel.
33 Charterhouse Street, EC1
In May 2019 we acquired 33 Charterhouse Street, a major
development site located in Farringdon, in a 50:50 joint venture
with AshbyCapital. The site is situated on the corner of
Charterhouse Street and Farringdon Road, just 100m from Farringdon
Station and immediately opposite Smithfield General Market where
work is now underway to transform the site into the future Museum
of London.
In July, we exercised the option under the Development Agreement
with the City of London to secure a new 150 year lease and,
following this, appointed Mace as principal contractor. Work is
progressing on site, with the basement raft and core substantially
completed. The 205,369 sq ft office development remains on track
for completion in September 2022.
As part of Helical's new sustainability strategy "Built for the
Future", 33 Charterhouse Street has been awarded the UK's first
BREEAM 2018 New Construction "Outstanding" rating for the design
stage.
The Bower, EC1
The Bower is a landmark estate immediately adjacent to the Old
Street roundabout and featuring 312,575 sq ft of innovative, high
quality office space, along with 21,059 sq ft of restaurant and
retail space.
The Warehouse and The Studio
The Warehouse comprises 122,858 sq ft of offices and The Studio
18,283 sq ft of offices, with 10,298 sq ft of restaurant space
across the two buildings. The offices are fully let and the rent
reviews for the office tenants have commenced, enabling Helical to
capture their reversionary potential.
The Tower
The Tower, completed in August 2018, offers 171,434 sq ft of
office space with a contemporary façade and innovatively designed
interconnecting floors, along with 10,761 sq ft of restaurant
space, across two units.
Barts Square, EC1
In a joint venture with The Baupost Group LLC, Helical acquired
the freehold interest of Barts Square, a 3.2 acre site between St
Paul's and Smithfield Market, in 2011. A redevelopment comprising
236 residential apartments, three office buildings of 214,434 sq
ft, 24,013 sq ft and 10,976 sq ft together with 21,185 sq ft of
retail/restaurant space at ground floor as well as major public
realm improvements has now been completed.
Residential/Retail
In Phase One of our residential scheme at Barts Square, we
completed the sale of four apartments and have exchanged contracts
on one further apartment, which has subsequently completed. In
total, 143 apartments have been sold in the first phase, leaving
just one apartment available for sale.
In Phase Two, we completed the sale of 26 apartments during the
period, six of which exchanged since 1 April, and the freehold sale
of the former marketing suite at 56 West Smithfield. In total, 58
apartments have been sold in the second phase, leaving 33
apartments remaining to sell, of which three have been put under
offer since the end of the period.
T he retail space in Phase One is fully let and one of the Phase
Two units has been let since the end of the period. The remaining
five retail units are being marketed with two of these units under
offer. The landscaping of the new square has been completed
offering extensive public amenity.
90 Bartholomew Close - Office/Restaurant
In April 2020, we completed the sale of 90 Bartholomew Close,
Barts Square, EC1, to La Francaise Real Estate Partners
International, a pan-European investment business acting on behalf
of a French collective real estate investment vehicle. The disposal
price of GBP48.5m reflected a net initial yield of 3.92% (GBP1,594
psf capital value).
55 Bartholomew
At 55 Bartholomew, EC1, the fifth floor is let to Shadowfall
and, during the period, Clevertouch agreed a five year lease for
the 2,564 sq ft ground floor at a headline rent of GBP75.00 psf, a
15% premium to 31 March 2020 ERV.
Four floors, including the fitted second floor, remain available
in this recently refurbished 10,976 sq ft office.
Kaleidoscope, EC1
Practical completion of this new office development above the
Farringdon East Elizabeth Line station was achieved in December
2019. The 88,581 sq ft development, spread over five office floors,
alongside two ground floor units, is currently under offer from a
letting perspective.
The Loom, E1
At this 108,635 sq ft former Victorian wool warehouse, we have
undertaken further asset management opportunities to reconfigure
units to offer larger floorplates to complement the existing mix.
15,268 sq ft is currently available across six units, of which one
unit, representing 1,358 sq ft, is currently under offer.
25 Charterhouse Square, EC1
25 Charterhouse Square comprises 43,343 sq ft of offices
adjacent to the new Farringdon East Elizabeth Line station and
overlooks the historic Charterhouse Square. The building was
extensively refurbished upon acquisition.
Following the exercise of a break option, the 11,570 sq ft
ground floor and first floor, which are currently used as showroom
space, will be available to let as office accommodation from
January 2021.
The Powerhouse, W4
Helical acquired this 24,288 sq ft office and recording studios
by way of sale and leaseback in 2013. The Powerhouse is a listed
building on Chiswick High Road and is fully let on a long
lease.
Manchester
Our Manchester portfolio comprises four offices where we offer
vibrant, modern space to a diverse group of tenants.
Market Context
Manchester, the centre of the "Northern Powerhouse", is a city
with a diverse and growing economy and a commercial office market
that has expanded significantly in recent years. As with the London
market, supply remains constrained with Grade A office supply
currently only sufficient to cover two years of demand based on
average take-up rate. The number of Tech, Media and Telecoms
occupiers has increased significantly in recent years as they have
sought to grow the tech cluster, and these businesses are
anticipated to underpin demand in the commercial market in the
future.
Whilst the volume of investment transactions has declined due to
the impact of Covid-19, it is anticipated that volumes will
increase once the current turbulence passes, with an increasing
pool of investors seeking to deploy capital into the market.
Manchester Rent Collection
As with London, the rent collection for the March, June and
September quarters has remained high.
March quarter June quarter September
% % quarter
%
---------------------------- ------------- ------------ ---------
Rent collected to date 94.0 91.3 91.5
Rent to be collected by way
of payment plan - - 4.8
Rent under discussion 0.7 1.7 2.1
Rent concessions 5.3 7.0 1.6
---------------------------- ------------- ------------ ---------
In Manchester, we have completed one letting in the period,
representing 2,690 sq ft. This letting generated contracted rent of
GBP0.1m (Helical's share GBP0.1m) at a 10.9% premium to 31 March
2020 ERV.
One unit was vacated in the period which resulted in a reduction
in contracted rent of less than GBP0.1m.
Manchester Portfolio
The Tootal Buildings, Manchester
This 245,907 sq ft multi-let office remains fully let. We have
continued our asset management programme which included
refurbishment of the Broadhurst and Lee reception areas and a
rebranding of the two properties as The Tootal Buildings,
reflecting its heritage. Contracts were exchanged for the sale of
this property after the period end.
Trinity, Manchester
Following completion of the full redevelopment in January 2019,
the building comprises 54,651 sq ft of office space and 4,300 sq ft
of retail/restaurant space. During the period, we have let 2,690 sq
ft at a 10.9% premium to ERV. Of the remaining space, three office
units (20,002 sq ft) and two retail units (4,300 sq ft) are under
offer.
Fourways, Manchester
We applied our asset management skills to this 60,009 sq ft
Grade II listed former packing warehouse, reconfiguring the
existing space to create a greater range of unit sizes. We also
completed the full refurbishment of the atrium and common parts.
Contracts were exchanged for the sale of this property after the
period end.
35 Dale Street, Manchester
35 Dale Street is a 56,209 sq ft office building situated in the
Northern Quarter of Manchester which underwent a comprehensive
refurbishment that was completed in June 2018. Contracts were
exchanged for the sale of this property after the period end.
Portfolio Analytics
See-through Total Portfolio by Fair Value
Investment Development Total
GBPm % GBPm % GBPm %
----------------------- ----------------- ----- ------------------- ----- ----- -----
London Offices
- Completed, let
and available to let 707.3 78.7 - - 707.3 77.0
- Being redeveloped 53.0 5.9 - - 53.0 5.8
London Residential - - 19.2 96.8 19.2 2.1
-----------------------
Total London 760.3 84.6 19.2 96.8 779.5 84.9
Manchester Offices
- Completed, let
and available to let 138.0 15.4 - - 138.0 15.0
-----------------------
Total Manchester 138.0 15.4 - - 138.0 15.0
Other 0.1 - 0.6 3.2 0.7 0.1
Total 898.4 100.0 19.8 100.0 918.2 100.0
----------------------- ----------------- ----- ------------------- ----- ----- -----
See-through Land and Development Portfolio
Book value Fair value Surplus Fair value
GBPm GBPm GBPm %
------------------- ---------- ---------- ------- ----------
London Residential 19.2 19.2 0.0 96.8
Land 0.0 0.6 0.6 3.2
-------------------
Total 19.2 19.8 0.6 100.0
------------------- ---------- ---------- ------- ----------
Capital Expenditure
We have a committed and planned development and refurbishment
programme.
Capex
budget Remaining spend Pre-redeveloped Total completed
(Helical share) (Helical share) space New space space Completion
Property GBPm GBPm sq ft sq ft sq ft date
--------------- --------------- --------------- --------------- --------- --------------- --------------
Investment -
committed
- The Tower,
London EC1 110.0 4.0 114,000 68,195 182,195 Completed
- Kaleidoscope,
London EC1 62.2 4.2 - 88,581 88,581 Completed
- 33
Charterhouse
Street, London
EC1 65.8 55.6 - 205,369 205,369 September 2022
- 55
Bartholomew,
London EC1 2.7 0.1 9,000 1,976 10,976 Completed
Development -
committed
- Barts Square,
London EC1 -
Phase One 65.4 0.2 - 127,364 127,364 Completed
- Barts Square,
London EC1 -
Phase Three 41.3 1.0 - 89,353 89,353 Completed
--------------- --------------- --------------- --------------- --------- --------------- --------------
Asset Management
Asset management is a critical component in driving Helical's
performance. Through having well considered business plans and
maximising the combined skills of our management team, we are able
to create value in our assets.
Fair
value Passing ERV change
weighting rent Contracted rent ERV like-for-like
See-through Investment portfolio % GBPm % GBPm % GBPm % %
------------------------------------ ---------- ------- ----- --------------- ----- ----- ----- --------------
London Offices
- Completed, let and available to
let 78.7 25.0 80.9 29.9 81.5 41.3 69.6 0.2
- Being redeveloped 5.9 - - - - 8.6 14.6 1.2
Total London 84.6 25.0 80.9 29.9 81.5 49.9 84.2 0.3
Manchester Offices
- Completed, let and available to
let 15.4 5.9 19.1 6.8 18.5 9.3 15.7 0.0
Total Manchester 15.4 5.9 19.1 6.8 18.5 9.3 15.7 0.0
Other - - - - - 0.1 0.1 0.0
------------------------------------ ---------- ------- ----- --------------- ----- ----- ----- --------------
Total 100.0 30.9 100.0 36.7 100.0 59.3 100.0 0.3
------------------------------------ ---------- ------- ----- --------------- ----- ----- ----- --------------
During the period, total contracted income decreased by GBP0.9m
as a result of the disposal of 90 Bartholomew Close, London
EC1.
See-through
total portfolio contracted rent
GBPm
-------------------------------------------------------------- --------------------------------
Rent lost at break/expiry (0.4)
Rent reviews and uplifts on lease renewals 0.2
New lettings
- London 0.1
- Manchester 0.1
-------------------------------------------------------------- --------------------------------
Total movement in the period from asset management activities 0.0
-------------------------------------------------------------- --------------------------------
Contracted rent reduced through disposals of London Offices (0.9)
-------------------------------------------------------------- --------------------------------
Net decrease in contracted rents in the period (0.9)
-------------------------------------------------------------- --------------------------------
Investment Portfolio
See-through Valuation Movements
Investment
portfolio Investment portfolio
Val change Val change weighting weighting
inc purchases & gains/losses on sales excl purchases & gains/losses on sales 30 September 2020 31 March 2020
% % % %
------------ -------------------------------------- --------------------------------------- ------------------ --------------------
London
Offices
- Completed,
let and
available
to let (0.9) (0.8) 78.7 80.1
- Being
redeveloped 3.4 3.4 5.9 4.9
------------
Total London (0.6) (0.5) 84.6 85.0
Manchester
Offices
- Completed,
let and
available
to let (0.4) (0.4) 15.4 15.0
Total
Manchester (0.4) (0.4) 15.4 15.0
------------ -------------------------------------- --------------------------------------- ------------------ --------------------
Total (0.6) (0.5) 100.0 100.0
------------ -------------------------------------- --------------------------------------- ------------------ --------------------
Portfolio Yields
EPRA topped EPRA topped Reversionary Reversionary
up NIY up NIY yield yield True equivalent yield True equivalent yield
30 September 31 March 30 September 31 March 30 September 31 March
2020 2020 2020 2020 2020 2020
% % % % % %
------------- ------------- ----------- ------------- ------------ --------------------- ---------------------
London
Offices
- Completed,
let and
available to
let 3.8 3.9 5.3 5.2 5.1 5.0
- Being
redeveloped n/a n/a 5.7 5.5 4.9 4.9
-------------
Total London 3.8 3.9 5.4 5.3 5.0 5.0
Manchester
Offices
- Completed,
let and
available to
let 4.6 4.4 6.3 6.2 6.0 6.0
Total
Manchester 4.6 4.4 6.3 6.2 6.0 6.0
Total 4.0 4.0 5.5 5.4 5.1 5.1
------------- ------------- ----------- ------------- ------------ --------------------- ---------------------
See-through Capital Values, Vacancy Rates and Unexpired Lease
Terms
30 September 2020 30 September 2020 30 September 2020 31 March 2020
Capital value psf Vacancy rate WAULT WAULT
GBP % Years Years
-------------------------------------- ------------------ ----------------- ----------------- -------------
London Offices
- Completed, let and available to let 1,157 19.7 6.2 6.6
- Being redeveloped 516 n/a n/a n/a
--------------------------------------
Total London 998 19.7 6.2 6.6
Manchester Offices
- Completed, let and available to let 328 17.7 4.3 3.9
Total Manchester 328 17.7 4.3 3.9
Total 753 18.9 5.8 6.1
-------------------------------------- ------------------ ----------------- ----------------- -------------
See-through Lease Expiries or Tenant Break Options
Half Year to Year to Year to Year to Year to
2021 2022 2023 2024 2025 2025 Onward
----------------------------- ------------ ------- ------- ------- ------- -----------
% of rent roll 4.6 16.2 14.0 11.5 7.3 46.4
Number of leases 14 33 22 22 13 44
Average rent per lease (GBP) 120,246 180,835 233,431 191,791 206,359 383,915
----------------------------- ------------ ------- ------- ------- ------- -----------
Top 10 Tenants
We have a strong rental income stream and a diverse tenant base.
The top 10 tenants account for 54.3% of the total rent roll and the
tenants come from a variety of industries.
Contracted rent Rent roll
Rank Tenant Tenant Industry GBPm %
------ ---------------- ------------------ --------------- ---------
1 Farfetch Online retail 3.9 10.7
2 WeWork Flexible offices 3.8 10.4
3 Brilliant Basics Technology 3.2 8.6
4 Pivotal Technology 2.0 5.5
5 Capita Business services 1.8 4.9
6 Anomaly Marketing 1.4 3.8
7 CBS Media 1.0 2.8
8 Allegis Recruitment 1.0 2.7
9 Incubeta Marketing 0.9 2.5
10 OpenPayd Financial Services 0.9 2.4
------
Total 19.9 54.3
------------------------ ------------------ --------------- ---------
Letting Activity
Contracted rent % Above
Area (Helical's Share) Rent 31 March 2020 ERV
sq ft GBP GBP psf %
---------------------- ------ -------------------- -------- ------------------
Investment Properties
London Offices
- 55 Bartholomew, EC1 2,564 90,000 75.00 15.4
London Retail
- The Warehouse, EC1 277 18,000 64.98 (7.2)
----------------------
Total London 2,841 108,000 74.02 13.0
Manchester Offices
- Trinity 2,690 89,000 33.00 10.9
----------------------
Total Manchester 2,690 89,000 33.00 10.9
Total 5,531 197,000 54.07 12.4
---------------------- ------ -------------------- -------- ------------------
Financial Review
IFRS Performance EPRA Performance
Loss Before Tax EPRA Earnings
GBP12.7m (2019: profit of Loss of GBP1.2m (2019: earnings
GBP13.1m) of GBP6.5m)
EPS EPRA EPS
Loss of 8.9p (2019: earnings Loss of 1.0p (2019: earnings
of 11.7p) of 5.4p)
Diluted NAV Per Share EPRA NTA Per Share
474p (31 March 2020: 489p) 505p (31 March 2020: 524p)
Total Accounting Return Total Accounting Return on
-2.0% (2019: 2.7%) EPRA NTA
-2.5% (2019: 2.7%)
---------------------------------
Overview
The quality of the Group's portfolio and tenant mix has
underpinned strong rent collection figures during the period.
However, it has not been immune to the challenges presented by
Covid-19. Rent holidays were offered to those tenants who were
hardest hit, primarily food and beverage operators, and we
experienced some tenant failures, leading to a fall in net rental
income.
This reduction in rent was reflected in the valuation of the
Group's investment properties, where increased vacancy and void
costs resulted in a small net revaluation deficit. Against this,
good progress in the development of 33 Charterhouse Street, London
EC1, including securing the long lease of the site, resulted in a
net gain on revaluation from our joint ventures.
The Group continues to maintain its robust financial position
with GBP323m of cash and undrawn facilities and a see-through LTV
of 32%.
Results for the Half Year
The see-through results for the half year to 30 September 2020
include net rental income of GBP11.9m, a net loss on sale and
revaluation of the investment portfolio of GBP4.5m and development
losses of GBP0.5m, leading to a Total Property Return of GBP6.9m
(2019: GBP28.6m). Total administration costs of GBP5.5m (2019:
GBP7.4m), net finance costs of GBP7.9m (2019: GBP8.9m) and the
mark-to-market valuation of derivative financial instruments of
GBP5.3m (2019: GBP5.0m) contributed to a pre-tax loss of GBP12.7m
(2019: profit of GBP13.1m). EPRA net tangible assets per share
decreased by 3.6% to 505p (31 March 2020: 524p).
The interim dividend, payable on 31 December 2020, will be 2.70p
per share (2019: 2.70p).
The Group's real estate portfolio, including its share of assets
held in joint ventures, decreased to GBP918.2m (31 March 2020:
GBP949.3m) primarily as a result of the sale of 90 Bartholomew
Close and the residential apartments at Barts Square, London EC1,
but offset by capital expenditure at 33 Charterhouse Street, London
EC1.
The Group's see-through loan to value increased marginally to
32.2% (31 March 2020: 31.4%). The weighted average cost of debt is
3.5% (31 March 2020: 3.5%) with a weighted average debt maturity of
3.7 years (31 March 2020: 4.0 years). The average maturity of the
facilities would increase to 5.1 years on exercise of the two
one-year extension options on the Revolving Credit Facility and the
one-year extension on the 33 Charterhouse Square, London EC1
facility, on a fully utilised basis.
At 30 September 2020, the Group had unutilised bank facilities
of GBP251.4m and GBP71.4m of cash on a see-through basis. These are
primarily available to fund the development of 33 Charterhouse
Street, London EC1 and future property acquisitions.
Total Property Return
We calculate our Total Property Return on a see-through basis to
enable us to assess the aggregate of income and capital profits
made each period from our property activities. Our business is
primarily aimed at producing surpluses in the value of our assets
through asset management and development, with the income side of
the business seeking to cover our annual administration and finance
costs.
Half Year Half Year
to to
2020 2019
GBPm GBPm
---------------------- --------- ---------
Total Property Return 6.9 28.6
---------------------- --------- ---------
Total Accounting Return
Total Accounting Return is the growth in the net asset value of
the Group plus dividends paid in the reporting period, expressed as
a percentage of the net asset value at the beginning of the period.
The metric measures the growth in Shareholders' Funds each period
and is expressed as an absolute measure.
Half Year to
Half Year to 2020 2019
------------------------------------------- ----------------- ------------
Total Accounting Return on IFRS net assets (2.0) 2.7
------------------------------------------- ----------------- ------------
Total Accounting Return on EPRA net assets is the growth in the
EPRA net tangible asset value of the Group plus dividends paid in
the period, expressed as a percentage of EPRA net tangible asset
value at the beginning of the period.
Half Year to Half Year to
2020 2019
% %
---------------------------------------------------- ------------ ------------
Total Accounting Return on EPRA net tangible assets (2.5) 2.7
---------------------------------------------------- ------------ ------------
Earnings Per Share
The IFRS earnings per share decreased from 11.7p to a loss of
8.9p and are based on the after tax earnings attributable to
ordinary Shareholders, divided by the weighted average number of
shares in issue during the period.
On an EPRA basis, the earnings per share of 5.4p in 2019
decreased to a loss per share of 1.0p, reflecting the Group's share
of net rental income of GBP11.9m (2019: GBP13.0m) and development
losses of GBP0.5m (2019: profits of GBP5.7m), but excluding losses
on the sale and revaluation of Investment properties of GBP4.5m
(2019: profits of GBP9.9m).
Net Asset Value
IFRS diluted net asset value per share decreased from 489p to
474p and is a measure of Shareholders' Funds divided by the number
of shares in issue at the period end, adjusted to allow for the
effect of all dilutive share awards.
EPRA has introduced three new asset value measures which are
applicable to Helical's Half Year Results to 30 September 2020. The
new measures replace the existing EPRA net asset value and triple
net asset value metrics. Helical considers the EPRA net tangible
asset measure to be the most relevant for its business. EPRA net
tangible asset per share decreased by 3.6% from 524p to 505p per
share (EPRA net asset value fell from 511p to 500p). This movement
arose principally from a total comprehensive loss of GBP10.8m
(2019: profit of GBP14.1m) and GBP7.3m of dividends (2019:
GBP9.0m).
Income Statement
Rental Income and Property Overheads
Gross rental income for the Group in respect of wholly owned
properties decreased to GBP13.4m (2019: GBP14.5m) as a result of
concessions offered to food and beverage operators and some tenant
failures. In the joint ventures, gross rents fell to GBP0.1m (2019:
GBP0.4m). Property overheads in respect of wholly owned assets and
in respect of those assets in joint ventures decreased in line with
gross rental income to GBP1.6m (2019: GBP1.9m). Overall,
see-through net rents decreased by 8.7% to GBP11.9m (2019:
GBP13.0m).
Development Profits
Through our role as development manager at 33 Charterhouse
Street, London EC3, we recognised GBP0.4m of fees in the period.
Ongoing costs of closing out our legacy retail development
programme of GBP0.3m offset these to give a net development profit
in the main Group of GBP0.1m (2019: GBP1.4m).
Share of Results of Joint Ventures
The revaluation of our investment assets held in joint ventures
generated a surplus of GBP2.0m (2019: GBP0.5m). A loss of GBP0.5m
was recognised in respect of our Barts Square, London EC1
residential development as a result of marketing and void costs.
Transaction costs on the sale of 90 Bartholomew Close, London EC1
resulted in a net loss of GBP0.6m (year to 31 March 2020: GBP4.7m
valuation surplus).
Finance, administration, taxation and other sundry items added a
further GBP1.1m of costs. An adjustment to reflect our economic
interest in the Barts Square, London EC1 development to its
recoverable amount generated a loss of GBP0.8m, leaving a net loss
from our joint ventures of GBP1.0m (2019: profit of GBP8.0m).
Loss/gain on Sale and Revaluation of Investment Properties
The valuation of our London Investment portfolio, on a
see-through basis, generated a valuation deficit of 0.6% (including
purchases and gains/losses on sales) and 0.5% on a like-for-like
basis. Manchester generated a valuation deficit of 0.4% (including
purchases and gains/losses on sales) and 0.4% on a like-for-like
basis. In total, the see-through investment portfolio showed a
valuation deficit of 0.6% (including purchases and gains/losses on
sales), or 0.5% on a like-for-like basis.
The total impact on our results of the loss on sale and
revaluation of our investment portfolio, including in joint
ventures, was GBP4.5m (2019: gain of GBP9.9m).
Administrative Expenses
Administration costs in the Group, before performance related
awards, reduced by 9.8% from GBP5.3m to GBP4.8m as a result of the
Group's cost saving measures taken in response to Covid-19.
Performance related share awards and bonus payments, including
National Insurance costs, were GBP0.4m (2019: GBP1.7m). Of this
amount, GBP0.3m (2019: GBP0.9m), 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.
2020 2019
GBP000 GBP000
---------------------------------------------------------------- ------- -------
Administrative expenses (excluding performance related rewards) 4,803 5,324
Performance related awards, including NIC 412 1,730
Group 5,215 7,054
In joint ventures 292 335
---------------------------------------------------------------- ------- -------
Total 5,507 7,389
---------------------------------------------------------------- ------- -------
Finance Costs, Finance Income and Derivative Financial
Instruments
Total finance costs, including in joint ventures, fell during
the period to GBP7.9m (2019: GBP8.9m), reflecting a fall in
interest rates and the lower level of borrowings following the
repayment of the Convertible Bond in June 2019, offset by a
reduction in capitalised interest.
2020 2019
GBP000 GBP000
---------------------------------------------------------------------------------------------------- ------- -------
Interest payable on bank loans and overdrafts - subsidiaries 5,489 5,900
- joint
ventures 547 267
Interest payable on unsecured bonds - 855
Amortisation of refinancing costs 555 1,623
Sundry interest and bank charges - subsidiaries 1,192 1,064
- joint
ventures 94 328
Interest capitalised - (1,127)
---------------------------------------------------------------------------------------------------- ------- -------
Total 7,877 8,910
---------------------------------------------------------------------------------------------------- ------- -------
Finance income earned, including in joint ventures, was GBPnil
(2019: GBP1.4m). The movement downwards in medium and long-term
interest rate projections during the period contributed to a charge
of GBP5.3m (2019: GBP5.0m) on the mark-to-market valuation of the
derivative financial instruments.
Taxation
Helical pays corporation tax on its UK sourced net rental
income, trading and development profits and realised chargeable
gains, after offsetting administration and finance costs.
The current tax charge for the period decreased from GBP1.2m to
GBPnil.
Dividends
The Board has declared an interim dividend for the period of
2.70p, unchanged from the prior period.
Balance Sheet
Shareholders' Funds
Shareholders' Funds at 1 April 2020 were GBP598.7m. The total
comprehensive expense for the period was GBP10.8m (2019: income of
GBP14.1m). Movements in reserves arising from the Group's share
schemes decreased funds by GBP1.4m. The Company paid dividends to
Shareholders amounting to GBP7.3m leaving a net decrease in
Shareholders' Funds from Group activities during the period of
GBP19.5m to GBP579.2m.
Investment Portfolio
Head
Wholly In joint leases Lease Book
owned venture See-through capitalised incentives value
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------ ---------- -------- --------- ----------- ------------ ----------- ---------
Valuation at 31 March 2020 836,875 76,809 913,684 2,161 (20,131) 895,714
Acquisitions - wholly - - - - - -
owned
- joint
ventures - - - 4,308 - 4,308
- wholly
Capital expenditure owned 2,137 - 2,137 (7) - 2,130
- joint
ventures - 6,278 6,278 - - 6,278
- wholly
Letting costs amortised owned (4) - (4) - - (4)
- joint
Disposals ventures - (20,210) (20,210) - 606 (19,604)
Economic interest - joint
adjustment ventures - 1,080 1,080 - (6) 1,074
- wholly
Revaluation (deficit)/surplus owned (6,608) - (6,608) - 589 (6,019)
- joint
ventures - 2,051 2,051 - (19) 2,032
-------- --------- ----------- ------------ ----------- ---------
Valuation at 30 September
2020 832,400 66,008 898,408 6,462 (18,961) 885,909
------------------------------------------ -------- --------- ----------- ------------ ----------- ---------
The Group spent GBP8.4m on capital works across the Investment
portfolio, mainly at 33 Charterhouse Street, London EC1 (GBP6.2m),
Fourways, Manchester (GBP1.1m), The Tootal Buildings, Manchester
(GBP0.5m) and Trinity, Manchester (GBP0.5m). 90 Bartholomew Close,
London EC1 was sold in the period with a book value of
GBP20.2m.
The net deficit on revaluation of GBP4.6m reduced the
see-through value of the portfolio, before lease incentives, to
GBP898.4m (31 March 2020: GBP913.7m). The accounting for head
leases and lease incentives resulted in a book value of the
see-through investment portfolio of GBP885.9m (31 March 2020:
GBP895.7m).
Debt and Financial Risk
Helical's outstanding debt at 30 September 2020 of GBP373.3m (31
March 2020: GBP386.9m) had a weighted interest cost of 3.5% (31
March 2020: 3.5%) and a weighted average debt maturity of 3.7 years
(31 March 2020: 4.0 years). The average maturity of the facilities
would increase to 5.1 years following exercise of the two one-year
extensions of the Group's GBP400m Revolving Credit Facility and the
one-year extension of the 33 Charterhouse Street, London EC1
development facility, on a fully utilised basis.
Debt Profile at 30 September 2020 - Including Commitment Fees
but Excluding the Amortisation of Arrangement Fees
Total Total Weighted average Average
facility utilised Available facility interest rate maturity Extended* average
GBP000 GBP000 GBP000 % Years maturity Years
----------------------- --------- --------- ------------------ ---------------- --------- ----------------------
Investment facilities 480,750 310,750 170,000 3.4 3.9 5.5
Development facilities 50,400 48,876 1,524 2.9 2.9 2.9
----------------------- --------- --------- ------------------ ---------------- --------- ----------------------
Total wholly owned 531,150 359,626 171,524 3.4 3.8 5.2
In joint ventures 83,606 13,706 69,900 7.7 1.3 4.2
----------------------- --------- --------- ------------------ ---------------- --------- ----------------------
Total secured debt 614,756 373,332 241,424 3.5 3.7 5.1
Working capital 10,000 - 10,000 - - 1.0
Total unsecured debt 10,000 - 10,000 - - 1.0
----------------------- --------- --------- ------------------ ---------------- --------- ----------------------
Total debt 624,756 373,332 251,424 3.5 3.7 5.1
----------------------- --------- --------- ------------------ ---------------- --------- ----------------------
* Calculated on a fully utilised basis with the two one-year
extensions of the Revolving Credit Facility and the one-year
extension of the 33 Charterhouse Street, London EC1 facility
included.
Secured Debt
The Group arranges its secured investment and development
facilities to suit its business needs as follows:
- Investment Facilities
We have a GBP400m Revolving Credit Facility that enables the
Group to acquire, refurbish, reposition and hold significant parts
of our investment portfolio with the remaining investment assets
held in an GBP81m term loan secured facility. The value of the
Group's properties secured in these facilities at 30 September 2020
was GBP703m (31 March 2020: GBP709m) with a corresponding loan to
value of 44.2% (31 March 2020: 43.8%). The average maturity of the
Group's investment facilities at 30 September 2020 was 3.9 years
(31 March 2020: 4.4 years), increasing to 5.5 years on a fully
utilised basis and following the two one-year extensions of the
Revolving Credit Facility. The weighted average interest rate was
3.4% (31 March 2020: 3.3%). The marginal cost of fully utilising
the undrawn Revolving Credit Facility was 1.6% (31 March 2020:
2.2%).
- Development Facilities
This facility finances the over-station development at
Kaleidoscope, London EC1. The maturity of this facility at 30
September 2020 was 2.9 years (31 March 2020: 3.4 years) with a
weighted average interest rate of 2.9% (31 March 2020: 3.8%).
- Joint Venture Facilities
We hold a number of investment and development properties in
joint venture with third parties and include in our reported
figures our share, in proportion to our economic interest, of the
debt associated with each asset. The average maturity of the
Group's share of drawn bank facilities in joint ventures at 30
September 2020 was 1.3 years (31 March 2020: 1.8 years) with a
weighted average interest rate of 7.7% (31 March 2020: 4.2%). The
average interest rate will fall as the 33 Charterhouse Street,
London EC1 development facility is drawn down and would be 4.2% on
a fully utilised basis.
Unsecured Debt
The Group's unsecured debt, following the repayment of the GBP5m
working capital facility in July 2020, is GBPnil (31 March 2020:
GBP5m).
Cash and Cash Flow
At 30 September 2020, the Group had GBP323m (31 March 2020:
GBP279m) of cash and agreed, undrawn, committed bank facilities
including its share in joint ventures, as well as GBP25m (31 March
2020: GBP70m) of uncharged property upon which it could borrow
funds.
Net Borrowings and Gearing
Total gross borrowings of the Group, including in joint
ventures, have decreased from GBP386.9m to GBP373.3m during the
period to 30 September 2020. After deducting cash balances of
GBP71.4m (31 March 2020: GBP83.0m) and unamortised refinancing
costs of GBP6.6m (31 March 2020: GBP6.0m), net borrowings decreased
from GBP298.5m to GBP295.3m. The see-through gearing of the Group,
including in joint ventures, increased from 49.9% to 51.0%.
30 September 31 March
2020 2020
------------------------------------------- ------------ ---------
See-through gross borrowings GBP373.3m GBP386.9m
See-through cash balances GBP71.4m GBP83.0m
Unamortised refinancing costs GBP6.6m GBP6.0m
See-through net borrowings GBP295.3m GBP298.5m
Shareholders' Funds GBP579.2m GBP598.7m
See-through gearing - IFRS net asset value 51.0% 49.9%
------------------------------------------- ------------ ---------
Hedging
At 30 September 2020, the Group had GBP280.8m (31 March 2020:
GBP285.8m) of fixed rate debt with an average effective interest
rate of 3.1% (31 March 2020: 3.0%) and GBP78.8m (31 March 2020:
GBP68.0m) of floating rate debt with an average effective interest
rate of 4.1% (31 March 2020: 4.9%). In addition, the Group had
GBP240m of interest rate caps at an average of 1.75% (31 March
2020: GBP240m at 1.75%). In our joint ventures, the Group's share
of fixed rate debt was GBPnil (31 March 2020: GBPnil) and GBP13.7m
(31 March 2020: GBP33.1m) of floating rate debt with an effective
rate of 7.7% (31 March 2020: 4.2%), with interest rate caps set at
1.5% plus margin on GBP35.3m (31 March 2020: GBP32.3m at 1.5%).
30 September 31 March
2020 Effective interest rate 2020 Effective interest rate
GBPm % GBPm %
----------------------- ------------ ----------------------- -------- -----------------------
Fixed rate debt
- Secured borrowings 280.8 3.1 280.8 3.0
- Unsecured borrowings - - 5.0 3.3
Total 280.8 3.1 285.8 3.0
Floating rate debt
- Secured 78.8 4.1(1) 68.0 4.9(1)
----------------------- ------------ ----------------------- -------- -----------------------
Total 359.6 3.4 353.8 3.4
In joint ventures
- Floating rate 13.7 7.7(2) 33.1 4.2(2)
----------------------- ------------ ----------------------- -------- -----------------------
Total borrowings 373.3 3.5 386.9 3.5
----------------------- ------------ ----------------------- -------- -----------------------
(1) This includes commitment fees on undrawn facilities.
Excluding these would reduce the effective rate to 2.5% (31 March
2020: 3.0%).
(2) This includes commitment fees on undrawn facilities.
Excluding these would reduce the effective rate to 3.2% (31 March
2020: 3.8%).
The fair value of the interest rate caps and swaps resulted in a
net derivative financial instrument liability of GBP15.7m (31 March
2020: GBP10.4m). The GBP81m term loan secured facility has a fixed
interest rate and is not shown at its fair value, adjusting to its
fair value would increase the loan liability by GBP12.2m (31 March
2020: GBP12.5m).
Tim Murphy
Finance Director
25 November 2020
Statement of Directors' Responsibilities
We confirm that to the best of our knowledge:
a) The condensed unaudited consolidated financial statements
have been prepared in accordance with IAS 34 'Interim Financial
Reporting';
b) The interim management report includes a fair review of the
information required by DTR 4.2.7R (indication of important events
and their impact during the first six months and description of
principal risks and uncertainties for the remaining six months of
the year); and
c) The interim management report includes a fair review of the
information required by DTR 4.2.8R (disclosure of related parties'
transactions and changes therein).
Balances with related parties at 30 September 2020, 30 September
2019 and 31 March 2020 are disclosed in Note 23.
A list of current Directors is maintained at 5 Hanover Square,
London, W1S 1HQ and at www.helical.co.uk.
The half year statement was approved by the Board on 25 November
2020 and is available from the Company's registered office at 5
Hanover Square, London, W1S 1HQ and on the Company's website at
www.helical.co.uk .
On behalf of the Board
Tim Murphy
Finance Director
25 November 2020
Independent Review Report to the Members of Helical plc
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 30 September 2020 which comprises the Unaudited
Consolidated Income Statement, Unaudited Consolidated Statement of
Comprehensive Income, Unaudited Consolidated Balance Sheet,
Unaudited Consolidated Cash Flow Statement and Unaudited
Consolidated Statement of Changes in Equity, and related Notes 1 to
29. We have read the other information contained in the half-yearly
financial report and considered whether it contains any apparent
misstatements or material inconsistencies with the information in
the condensed set of financial statements.
Directors' Responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the Directors. The Directors are responsible
for preparing the half-yearly financial report in accordance with
the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
As disclosed in note 1, the annual financial statements of the
Group are prepared in accordance with IFRSs as adopted by the
European Union. The condensed set of financial statements included
in this half-yearly financial report has been prepared in
accordance with International Accounting Standard 34 Interim
Financial Reporting as adopted by the European Union.
Our Responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of Review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Financial Reporting Council for use in
the United Kingdom. A review of interim financial information
consists of making inquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other
review procedures. A review is substantially less in scope than an
audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half-yearly financial report for the six months ended 30
September 2020 is not prepared, in all material respects, in
accordance with International Accounting Standard 34 as adopted by
the European Union and the Disclosure Guidance and Transparency
Rules of the United Kingdom's Financial Conduct Authority.
Use of Our Report
This report is made solely to the Company in accordance with
International Standard on Review Engagements (UK and Ireland) 2410
Review of Interim Financial Information Performed by the
Independent Auditor of the Entity issued by the Financial Reporting
Council. Our work has been undertaken so that we might state to the
Company those matters we are required to state to it in an
independent review report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility
to anyone other than the Company, for our review work, for this
report, or for the conclusions we have formed.
Deloitte LLP
Statutory Auditor
London, United Kingdom
25 November 2020
Unaudited Consolidated Income Statement
For the Half Year to 30 September 2020
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
Notes GBP000 GBP000 GBP000
------------------------------------------------------------ ----- ------------------ ------------------ ---------
Revenue 3 19,320 22,055 44,361
------------------------------------------------------------ ----- ------------------ ------------------ ---------
Net rental income 4 11,950 12,811 27,838
Development property profit 5 52 1,441 3,274
Share of results of joint ventures 13 (959) 7,982 13,396
Other operating income - 44 88
------------------------------------------------------------ ----- ------------------ ------------------ ---------
Gross profit before net (loss)/gain on sale and revaluation
of Investment properties 11,043 22,278 44,596
Loss on sale of Investment properties 6 (4) (28) (1,272)
Revaluation of Investment properties 12 (6,019) 9,442 38,351
------------------------------------------------------------ ----- ------------------ ------------------ ---------
Gross profit 5,020 31,692 81,675
Administrative expenses 7 (5,215) (7,054) (16,715)
------------------------------------------------------------ ----- ------------------ ------------------ ---------
Operating (loss)/profit (195) 24,638 64,960
Finance costs 8 (7,236) (8,315) (16,100)
Finance income 20 1,311 1,345
Change in fair value of derivative financial instruments 20 (5,333) (4,980) (7,651)
Change in fair value of Convertible Bond - 468 468
Foreign exchange gain - 9 8
------------------------------------------------------------ ----- ------------------ ------------------ ---------
(Loss)/profit before tax (12,744) 13,131 43,030
Tax on (loss)/profit on ordinary activities 9 1,983 898 (4,313)
------------------------------------------------------------ ----- ------------------ ------------------ ---------
( Loss)/p rofit for the period (10,761) 14,029 38,717
------------------------------------------------------------ ----- ------------------ ------------------ ---------
(Loss)/earnings per share 11
Basic (8.9)p 11.7p 32.3p
Diluted (8.9)p 11.6p 31.7p
------------------------------------------------------------ ----- ------------------ ------------------ ---------
Unaudited Consolidated Statement of Comprehensive Income
For the Half Year to 30 September 2020
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------------------------------- ------------------ ------------------ ---------
(Loss)/profit for the period (10,761) 14,029 38,717
Exchange difference on retranslation of net investments in foreign
operations - 55 68
------------------------------------------------------------------- ------------------ ------------------ ---------
Total comprehensive (expense)/income for the period (10,761) 14,084 38,785
------------------------------------------------------------------- ------------------ ------------------ ---------
Unaudited Consolidated Balance Sheet
At 30 September 2020
At At
30 September 2020 At 31 March
GBP000 30 September 2019 2020
Notes GBP000 GBP000
--------------------------------------------- ----- ------------------ ------------------ ---------
Non-current assets
Investment properties 12 815,680 820,138 819,573
Owner occupied property, plant and equipment 5 ,724 6,394 6,007
Investment in joint ventures 13 6 9,607 78,073 80,818
D erivative financial instruments 20 5 8 319 86
--------------------------------------------- ----- ------------------ ------------------ ---------
8 91,069 904,924 906,484
--------------------------------------------- ----- ------------------ ------------------ ---------
Current assets
Land and developments 14 5 2 1,035 852
Corporation tax receivable 1,452 - 1,417
Trade and other receivables 15 45,447 36,539 40,382
Cash and cash equivalents 16 6 2,284 47,726 74,586
--------------------------------------------- ----- ------------------ ------------------ ---------
1 09,235 85,300 117,237
--------------------------------------------- ----- ------------------ ------------------ ---------
Total assets 1,000,304 990,224 1,023,721
--------------------------------------------- ----- ------------------ ------------------ ---------
Current liabilities
Trade and other payables 17 ( 32,808) (52,539) (45,771)
Lease liability 18 (622) (599) (611)
Corporation tax payable - (280) -
Borrowings 19 - - (5,000)
--------------------------------------------- ----- ------------------ ------------------ ---------
(33,430) (53,418) (51,382)
--------------------------------------------- ----- ------------------ ------------------ ---------
Non-current liabilities
Borrowings 19 (354,545) (340,603) (343,184)
Derivative financial instruments 20 (15,760) (8,017) (10,455)
Lease liability 18 (7,250) (7,872) (7,563)
Trade and other payables 17 - (590) (590)
Deferred tax liability 9 (10,087) (6,066) (11,858)
--------------------------------------------- ----- ------------------ ------------------ ---------
(387,642) (363,148) (373,650)
--------------------------------------------- ----- ------------------ ------------------ ---------
Total liabilities (421,072) (416,566) (425,032)
--------------------------------------------- ----- ------------------ ------------------ ---------
Net assets 579,232 573,658 598,689
--------------------------------------------- ----- ------------------ ------------------ ---------
Equity
Called-up share capital 21 1,478 1,465 1,465
Share premium account 107,990 103,462 103,522
Revaluation reserve 165,445 140,492 171,464
Capital redemption reserve 7,478 7,478 7,478
Own shares held (1,542) - -
Other reserves 291 291 291
Retained earnings 298,092 320,470 314,469
--------------------------------------------- ----- ------------------ ------------------ ---------
Total equity 579,232 573,658 598,689
--------------------------------------------- ----- ------------------ ------------------ ---------
Unaudited Consolidated Cash Flow Statement
For the Half Year to 30 September 2020
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
--------------------------------------------------------------- ------------------ ------------------ ---------
Cash flows from operating activities
(Loss)/profit before tax (12,744) 13,131 43,030
Adjustment for:
Depreciation 400 409 807
Revaluation deficit/(surplus) on Investment properties 6,019 (9,442) (38,351)
Letting cost amortisation 4 - -
Loss on sale of Investment properties 4 28 1,272
Profit on sale of plant and equipment (14) (11) (11)
Net financing costs 7,216 7,004 14,755
Change in value of derivative financial instruments 5,333 4,980 7,651
Change in fair value of Convertible Bond - (468) (468)
Share based payment charge 314 920 2,814
Share settled bonus - - 1,485
Share of results of joint ventures 959 (7,982) (13,396)
Foreign exchange movement - 55 67
--------------------------------------------------------------- ------------------ ------------------ ---------
Cash inflows from operations before changes in working capital 7,491 8,624 19,655
Change in trade and other receivables 1,935 16,394 12,499
Change in land, developments and trading properties 800 1,276 1,459
Change in trade and other payables (2,837) 3,231 (3,890)
--------------------------------------------------------------- ------------------ ------------------ ---------
Cash inflows generated from operations 7,389 29,525 29,723
--------------------------------------------------------------- ------------------ ------------------ ---------
Finance costs (6,609) (12,525) (19,630)
Finance income 20 6,680 6,717
Tax paid (35) (3,482) (4,467)
--------------------------------------------------------------- ------------------ ------------------ ---------
(6,624) (9,327) (17,380)
--------------------------------------------------------------- ------------------ ------------------ ---------
N et cash generated from operating activities 765 20,198 12,343
--------------------------------------------------------------- ------------------ ------------------ ---------
Cash flows from investing activities
Additions to Investment property (12,945) (32,423) (44,159)
Net (costs)/proceeds from sale of Investment property (4) (28) 40,260
Investments in joint ventures and subsidiaries (7,014) (46,748) (50,749)
Proceeds from disposal of joint ventures - 1,334 1,334
Dividends from joint ventures 10,267 - 6,670
Sale of plant and equipment 23 26 27
Purchase of leasehold improvements, plant and equipment (125) (7) (18)
--------------------------------------------------------------- ------------------ ------------------ ---------
Net cash used by investing activities (9,798) (77,846) (46,635)
--------------------------------------------------------------- ------------------ ------------------ ---------
Cash flows from financing activities
Borrowings drawn down 10,815 213,747 254,038
Borrowings repaid (5,000) (296,679) (329,929)
Finance lease repayments (301) (290) (588)
Shares issued 13 6 6
Purchase of own shares (1,542) - -
Equity dividends paid (7,254) (8,980) (12,219)
--------------------------------------------------------------- ------------------ ------------------ ---------
Net cash used by financing activities (3,269) (92,196) (88,692)
--------------------------------------------------------------- ------------------ ------------------ ---------
Net decrease in cash and cash equivalents (12,302) (149,844) (122,984)
Cash and cash equivalents at start of period 74,586 197,570 197,570
--------------------------------------------------------------- ------------------ ------------------ ---------
Cash and cash equivalents at end of period 62,284 47,726 74,586
--------------------------------------------------------------- ------------------ ------------------ ---------
Unaudited Consolidated Statement of Changes in Equity
At 30 September 2020
Capital Own
Share Share Revaluation redemption shares Other Retained
capital premium reserve reserve held reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------------------------- ------- ------- ----------- ---------- ------- -------- -------- --------
At 31 March 2019 1 ,459 101,304 131,050 7 ,478 - 291 325,843 567,425
------------------------------------------------- ------- ------- ----------- ---------- ------- -------- -------- --------
Balances at 1 April 2019, as previously reported 1,459 101,304 131,050 7,478 - 291 325,843 567,425
Impact of transition to IFRS 16 - - - - - - (548) (548)
------------------------------------------------- ------- ------- ----------- ---------- ------- -------- -------- --------
Adjusted balances at 1 April 2019 1,459 101,304 131,050 7,478 - 291 325,295 566,877
Total comprehensive income - - - - - - 38,785 38,785
Revaluation surplus - - 38,351 - - - (38,351) -
Realised on disposals - - 2,063 - - - (2,063) -
Issued share capital 6 2,218 - - - - - 2,224
Performance Share Plan - - - - - - 2,814 2,814
Performance Share Plan - deferred tax - - - - - - 483 483
Share settled Performance Share Plan - - - - - - (1,349) (1,349)
Share settled bonus - - - - - - 1,074 1,074
Dividends paid - - - - - - (12,219) (12,219)
At 31 March 2020 1,465 103,522 171,464 7,478 - 291 314,469 598,689
Total comprehensive expense - - - - - - (10,761) (10,761)
Revaluation deficit - - (6,019) - - - 6,019 -
Issued share capital 13 4,468 - - - - - 4,481
Performance Share Plan - - - - - - 314 314
Performance Share Plan - deferred tax - - - - - - (214) (214)
Purchase of own shares - - - - (1,542) - - (1,542)
Share settled Performance Share Plan - - - - - - (3,335) (3,335)
Share settled bonus - - - - - - (1,146) (1,146)
Dividends paid - - - - - - (7,254) (7,254)
At 30 September 2020 1,478 107,990 165,445 7,478 (1,542) 291 298,092 579,232
------------------------------------------------- ------- ------- ----------- ---------- ------- -------- -------- --------
For a breakdown of Total comprehensive (expense)/income see the
Unaudited Consolidated Statement of Comprehensive Income.
The adjustment to retained earnings of GBP314,000 (31 March
2020: GBP2,814,000) adds back the share based payments charge
recognised in the Unaudited Consolidated Income Statement, in
accordance with IFRS 2 Share Based Payments.
There were net transactions with owners of GBP8,696,000 (31
March 2020: GBP6,973,000) made up of the Performance Share Plan
credit of GBP314,000 (31 March 2020: GBP2,814,000) and related
deferred tax charge of GBP214,000 (31 March 2020: credit of
GBP483,000), dividends paid of GBP7,254,000 (31 March 2020:
GBP12,219,000), the issued share capital of GBP13,000 (31 March
2020: GBP6,000) and corresponding share premium of GBP4,468,000 (31
March 2020: GBP2,218,000), purchase of own shares of GBP1,542,000
(31 March 2020: GBPnil), share settled Performance Share Plan
awards charge of GBP3,335,000 (31 March 2020: GBP1,349,000) and the
share settled bonus awards charge of GBP1,146,000 (31 March 2020:
credit of GBP1,074,000).
Capital
Share Share Revaluation redemption Other Retained
capital premium reserve reserve reserves earnings Total
GBP000 GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
-------------------------- -------- -------- ----------- ----------- --------- --------- -------
At 31 March 2019 1,459 101,304 131,050 7,478 291 325,843 567,425
-------------------------- -------- -------- ----------- ----------- --------- --------- -------
Balances at 1 April
2019, as previously
reported 1,459 101,304 131,050 7,478 291 325,843 567,425
Impact of transition
to IFRS 16 - - - - - (548) (548)
-------------------------- -------- -------- ----------- ----------- --------- --------- -------
Adjusted balances
at 1 April 2019 1,459 101,304 131,050 7,478 291 325,295 566,877
-------------------------- -------- -------- ----------- ----------- --------- --------- -------
Total comprehensive
income - - - - - 14,084 14,084
Revaluation surplus - - 9,442 - - (9,442) -
Issued share capital 6 2,158 - - - - 2,164
Performance Share
Plan - - - - - 920 920
Performance Share
Plan - deferred tax - - - - - 355 355
Share settled Performance
Share Plan - - - - - (1,349) (1,349)
Share settled bonus - - - - - (413) (413)
Dividends paid - - - - - (8,980) (8,980)
-------------------------- -------- -------- ----------- ----------- --------- --------- -------
At 30 September 2019 1,465 103,462 140,492 7,478 291 320,470 573,658
-------------------------- -------- -------- ----------- ----------- --------- --------- -------
The credit adjustment to retained earnings of GBP920,000 adds
back the share based payments charge recognised in the Unaudited
Consolidated Income Statement, in accordance with IFRS 2 Share
Based Payments.
There were net transactions with owners of GBP7,303,000 made up
of the Performance Share Plan credit of GBP920,000 and related
deferred tax credit of GBP355,000, share settled Performance Share
Plan charge of GBP1,349,000, share settled bonus awards charge of
GBP413,000, dividends paid of GBP8,980,000, the issued share
capital of GBP6,000 and corresponding share premium of
GBP2,158,000.
Unaudited Notes to the Half Year Results
1. Financial Information
The financial information contained in this statement does not
constitute statutory accounts within the meaning of section 434 of
the Companies Act 2006. The full accounts for the year ended 31
March 2020, which were prepared under International Financial
Reporting Standards as adopted by the European Union and which
received an unqualified report from the Auditors, and did not
contain a statement under Section 498(2) or Section 498(3) of the
Companies Act 2006, have been filed with the Registrar of
Companies.
These interim condensed unaudited consolidated financial
statements do not include all of the information required for full
annual financial statements and should be read in conjunction with
the consolidated financial statements of the Group for the year
ended 31 March 2020.
These interim condensed unaudited consolidated financial
statements have been prepared in accordance with IAS 34 Interim
Financial Reporting as adopted by the European Union. The same
accounting policies and methods of computation are followed in the
30 September 2020 interim condensed unaudited consolidated
financial statements as in the most recent annual financial
statements.
Going Concern
The Directors have considered the appropriateness of adopting a
going concern basis in preparing the condensed unaudited financial
statements. Their assessment is based on forecasts for the next
12-month period, with the potential impact of Covid-19 being an
area of focus and including severe but plausible downside scenarios
on the principal risks and uncertainties.
The key assumptions used in the review are summarised below:
-- The Group's rental income receipts were modelled for each tenant on an individual basis;
-- Existing loan facilities remain available, but no new financing is arranged; and
-- Free cash is utilised to repay debt/cure bank facility covenants.
The results of this review demonstrated the following:
-- The Group has GBP323m of cash and undrawn bank facilities,
including in joint ventures, at 30 September 2020 and there is no
debt repayable within the forecast period;
-- The Group could withstand receiving no rental income during
the going concern period (excluding the impact on income
covenants);
-- The forecasts show that all bank facility financial covenants
will be met throughout the review period, with headroom to
withstand a 31% fall in rental income;
-- Whilst the Group has a WAULT of 5.8 years, in a downside
scenario whereby all tenants with lease expiries or break options
in the going concern period exercise their breaks or do not renew
at the end of their lease, and with no vacant space let or re-let,
the rental income covenants would be met throughout the review
period;
-- Property values could fall by 44% before loan to value covenants come under pressure; and
-- Asset sales could be utilised to generate additional cash to
repay debt, materially increasing covenant headroom.
Based on this analysis, the Directors have adopted a going
concern basis in preparing the condensed unaudited financial
statements for the period ended 30 September 2020.
Principal Risks and Uncertainties
The responsibility for the governance of the Group's risk
profile lies with the Board of Directors of Helical. The Board is
responsible for setting the Group's risk strategy by assessing
risks, determining its willingness to accept those risks and
ensuring that the risks are monitored and that the Group is aware
of and, if appropriate, reacts to changes in those risks. The Board
is also responsible for allocating responsibility for risk within
the Group's management structure.
The Group considers its principal risks to be:
Strategic Risks - external risks that could prevent the Group
delivering its strategy. These risks principally impact our
decision to purchase or exit from a property asset.
Financial Risks - risks that could prevent the Group from
funding its chosen strategy, both in the long and short term.
Operational Risks - internal risks that could prevent the Group
from delivering its strategy.
Reputational Risks - risks that could affect the Group in all
aspects of its strategy.
There have been no significant changes to these risks and
further analysis is included within the Group's Annual Report and
Accounts 2020. The risks associated with Covid-19 and disclosed in
this Annual Report have been collated into a new Strategic Risk,
"Risk of pandemic outbreak".
2. Revenue from Contracts with Customers
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
-------------------------------------------- ------------------ ------------------ ---------
Development property income 1,251 3,080 3,849
Service charge income 4,649 4,422 8,790
Other revenue - 47 91
-------------------------------------------- ------------------ ------------------ ---------
Total revenue from contracts with customers 5,900 7,549 12,730
-------------------------------------------- ------------------ ------------------ ---------
The total revenue from contracts with customers is the revenue
recognised in accordance with IFRS 15 Revenue from Contracts with
Customers.
No impairment of contract assets was recognised in the half year
to 30 September 2020 (half year to 30 September 2019: GBPnil, year
to 31 March 2020: GBPnil).
3. Segmental Information
The Group identifies two discrete operating segments whose
results are regularly reviewed by the Chief Operating Decision
Maker (the Chief Executive) to allocate resources to these segments
and to assess their performance. The segments are:
-- Investment properties, which are owned or leased by the Group
for long-term income and for capital appreciation; and
-- Development properties, which include sites, developments in
the course of construction, completed developments available for
sale, and pre-sold developments.
Investments Developments Total Investments Developments Total
Half Year to Half Year to Half Year to Half Year to Half Year to Half Year to
30.09.20 30.09.20 30.09.20 30.09.19 30.09.19 30.09.19
Revenue GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------ ------------------ ------------- ------------- ------------------ ------------- -------------
Rental income 13,420 - 13,420 14,506 - 14,506
Service charge
income 4,649 - 4,649 4,422 - 4,422
Development
property income - 1,251 1,251 - 3,080 3,080
Other revenue - - - 47 - 47
------------------ ------------------ ------------- ------------- ------------------ ------------- -------------
Revenue 18,069 1,251 19,320 18,975 3,080 22,055
------------------ ------------------ ------------- ------------- ------------------ ------------- -------------
Developments Total
Investments Year to Year to Year to
31.03. 2 0 31.03.20 31.03.20
Revenue GBP000 GBP000 GBP000
---------------------------- ------------------- ------------ ---------
Rental income 31,631 - 31,631
Service charge income 8,790 - 8,790
Development property income - 3,849 3,849
Other revenue 91 - 91
---------------------------- ------------------- ------------ ---------
Revenue 40,512 3,849 44,361
---------------------------- ------------------- ------------ ---------
Total Total
Investments Developments Half Investments Developments Half
Half Year Half Year to Year to Half Year Half Year to Year to
to 30.09.20 30.09.20 30.09.20 to 30.09.19 30.09.19 30.09.19
(Loss)/profit before tax GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
------------------------------------------------------------- ----------- ------------ -------- ----------- ------------ --------
Net rental income 11,950 - 11,950 12,811 - 12,811
Development property profit - 52 52 - 1,441 1,441
Share of results of joint ventures 615 (1,574) (959) 6,514 1,468 7,982
(Loss)/gain on sale and revaluation of Investment properties (6,023) - (6,023) 9,414 - 9,414
------------------------------------------------------------- ----------- ------------ -------- ----------- ------------ --------
6,542 (1,522) 5,020 28,739 2,909 31,648
Other operating income - 44
------------------------------------------------------------- ----------- ------------ -------- ----------- ------------ --------
Gross profit 5,020 31,692
Administrative expenses (5,215) (7,054)
Net finance costs (7,216) (7,004)
Change in fair value of derivative financial instruments (5,333) (4,980)
Change in fair value of Convertible Bond - 468
Foreign exchange gain - 9
------------------------------------------------------------- ----------- ------------ -------- ----------- ------------ --------
(Loss)/profit before tax (12,744) 13,131
------------------------------------------------------------- ----------- ------------ -------- ----------- ------------ --------
Investments Developments Total
Year to Year to Year to
31.03.20 31.03.20 31.03.20
Profit before tax GBP000 GBP000 GBP000
--------------------------------------------------------- ----------- ------------ ---------
Net rental income 27,838 - 27,838
Development property profit - 3,274 3,274
Share of results of joint ventures 11,880 1,516 13,396
Gain on sale and revaluation of Investment properties 37,079 - 37,079
--------------------------------------------------------- ----------- ------------ ---------
76,797 4,790 81,587
Other operating income 88
--------------------------------------------------------- ----------- ------------ ---------
Gross profit 81,675
Administrative expenses (16,715)
Net finance costs (14,755)
Change in fair value of derivative financial instruments (7,651)
Change in fair value of Convertible Bond 468
Foreign exchange gain 8
--------------------------------------------------------- ----------- ------------ ---------
Profit before tax 43,030
--------------------------------------------------------- ----------- ------------ ---------
Investments Developments Total Investments Developments Total
at 30.09.20 at 30.09.20 at 30.09.20 at 30.09.19 at 30.09.19 at 30.09.19
Net assets GBP000 GBP000 GBP000 GBP000 GBP000 GBP000
----------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Investment properties 815,680 - 815,680 820,138 - 820,138
Land and developments - 52 52 - 1,035 1,035
Investment in joint ventures 63,390 6,217 69,607 31,739 46,334 78,073
----------------------------- ------------ ------------ ------------ ------------ ------------ ------------
879,070 6,269 885,339 851,877 47,369 899,246
Other assets 114,965 90,978
----------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Total assets 1,000,304 990,224
Liabilities (421,072) (416,566)
----------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Net assets 579,232 573,658
----------------------------- ------------ ------------ ------------ ------------ ------------ ------------
Investments Developments Total
at 31.03.20 at 31.03.20 at 31.03.20
Net assets GBP000 GBP000 GBP000
----------------------------- ------------- ------------ ------------
Investment properties 819,573 - 819,573
Land and developments - 852 852
Investment in joint ventures 73,643 7,175 80,818
----------------------------- ------------- ------------ ------------
893,216 8,027 901,243
Other assets 122,478
----------------------------- ------------- ------------ ------------
Total assets 1,023,721
Liabilities (425,032)
----------------------------- ------------- ------------ ------------
Net assets 598,689
----------------------------- ------------- ------------ ------------
4. Net Rental Income
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
-------------------- ------------------ ------------------ ---------
Gross rental income 13,420 14,506 31,631
Rents payable (122) 42 (178)
Property overheads (1,348) (1,737) (3,615)
-------------------- ------------------ ------------------ ---------
Net rental income 11,950 12,811 27,838
-------------------- ------------------ ------------------ ---------
5. Development Property Profit
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
---------------------------------- ------------------ ------------------ ---------
Development property income 1,251 3,080 2,754
Cost of sales (9 17 ) (1,493) (649)
Sales expenses (1) (20) (29)
(Provision)/reversal of provision (2 81 ) (126) 1,198
---------------------------------- ------------------ ------------------ ---------
Development property profit 52 1,441 3,274
---------------------------------- ------------------ ------------------ ---------
6. Loss on Sale of Investment Properties
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------------------------ ------------------ ------------------ ---------
Net (costs)/proceeds from the sale of Investment properties (4) (28) 40,260
Book value (Note 12) - - (41,481)
Tenants' incentives on sold Investment properties - - (51)
------------------------------------------------------------ ------------------ ------------------ ---------
Loss on sale of Investment properties (4) (28) (1,272)
------------------------------------------------------------ ------------------ ------------------ ---------
7. Administrative Expenses
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------------- ------------------ ------------------ ---------
Administration costs (4,803) (5,324) (10,524)
Performance related awards (314) (1,366) (5,279)
National Insurance on performance related awards (98) (364) (912)
------------------------------------------------- ------------------ ------------------ ---------
Administrative expenses (5,215) (7,054) (16,715)
------------------------------------------------- ------------------ ------------------ ---------
8. Finance Costs
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------------------------------------------------- ------------------ ------------------ ---------
Interest payable on bank loans, bonds and overdrafts (5,489) (6,756) (12,147)
Other interest payable and similar charges (1,747) (2,686) (5,698)
Interest capitalised - 1,127 1,745
----------------------------------------------------- ------------------ ------------------ ---------
Finance costs (7,236) (8,315) (16,100)
----------------------------------------------------- ------------------ ------------------ ---------
9. Tax on (Loss)/Profit on Ordinary Activities
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------------------------------------- ------------------ ------------------ ---------
The tax charge is based on the (loss)/profit for the period and represents:
United Kingdom corporation tax at 19%
- Group corporation tax - (1,201) (470)
- Adjustment in respect of prior periods (1) - (19)
Current tax charge (1) (1,201) (489)
Deferred tax
- Capital allowances (720) (576) (879)
- Tax losses 1,442 147 (201)
- Unrealised chargeable gains 1,132 2,029 (4,691)
- Other temporary differences 130 499 1,947
----------------------------------------- ------------------ ------------------ ---------
Deferred tax credit/(charge) 1,984 2,099 (3,824)
----------------------------------------- ------------------ ------------------ ---------
Total tax credit/(charge) for period 1,983 898 (4,313)
----------------------------------------- ------------------ ------------------ ---------
At
At At 31 March
30 September 2020 30 September 2019 2020
Deferred tax GBP000 GBP000 GBP000
---------------------------- ------------------- ------------------ ---------
Capital allowances (4,862) (3,839) (4,142)
Tax losses 3,260 2,167 1,818
Unrealised chargeable gains (12,718) (7,131) (13,850)
Other temporary differences 4,233 2,737 4,316
---------------------------- ------------------- ------------------ ---------
Deferred tax liability (10,087) (6,066) (11,858)
---------------------------- ------------------- ------------------ ---------
Under IAS 12 Income Taxes, deferred tax provisions are made for
the tax that would potentially be payable on the realisation of
Investment properties and other assets at book value.
If upon sale of the Investment properties the Group retained all
the capital allowances, the deferred tax provision in respect of
capital allowances of GBP4,862,000 (net) would be released and
further capital allowances of GBP83,483,000 (gross) would be
available to reduce future tax liabilities.
The net deferred tax asset in respect of other temporary
differences arises from tax relief available to the Group on the
mark-to-market valuation of financial instruments, the future
vesting of share awards and other timing differences.
10. Dividends
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
-------------------------------------------------------- ------------------ ------------------ ---------
Attributable to equity share capital
Ordinary
- Interim paid 2.70p per share - - 3,239
- Prior period final paid 6.00p per share (2019: 7.50p) 7,254 8,980 8,980
-------------------------------------------------------- ------------------ ------------------ ---------
7,254 8,980 12,219
-------------------------------------------------------- ------------------ ------------------ ---------
The interim dividend of 2.70p (30 September 2019: 2.70p per
share) was approved by the Board on 25 November 2020 and will be
paid on 31 December 2020 to Shareholders on the register on 4
December 2020. This interim dividend, amounting to GBP3,274,000,
has not been included as a liability as at 30 September 2020.
11. Earnings Per Share
The calculation of the basic earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the period. This
is a different basis to the net asset per share calculations which
are based on the number of shares at the period end.
The calculation of diluted earnings per share is based on the
basic earnings per share, adjusted to allow for the issue of shares
and the post tax effect of dividends on the assumed exercise of all
dilutive share awards.
The earnings per share is calculated in accordance with IAS 33
Earnings per Share and the best practice recommendations of the
European Public Real Estate Association ("EPRA").
Reconciliations of the earnings and weighted average number of
shares used in the calculations are set out below:
Half Year Half Year
to to Year to
30 30 31
September September March
2020 2019 2020
GBP000 GBP000 GBP000
----------------------------------------------------------------------------------------------- --------- --------- -------
Ordinary shares in issue 121,266 119,957 119,978
Own shares held (259) - -
Weighting adjustment (563) (237) (133)
----------------------------------------------------------------------------------------------- --------- --------- -------
Weighted average ordinary shares in issue for calculation of basic and EPRA earnings per share 120,444 119,720 119,845
Weighted average ordinary shares issued on share settled bonuses - 636 973
Weighted average ordinary shares to be issued under Performance Share Plan - 868 1,385
----------------------------------------------------------------------------------------------- --------- --------- -------
Weighted average ordinary shares in issue for calculation of diluted earnings per share 120,444 121,224 122,203
----------------------------------------------------------------------------------------------- --------- --------- -------
GBP000 GBP000 GBP000
----------------------------------------------------------------------------------------------- --------- --------- -------
(Loss)/earnings used for calculation of basic and diluted earnings per share (10,761) 14,029 38,717
----------------------------------------------------------------------------------------------- --------- --------- -------
Basic (loss)/earnings per share (8.9)p 11.7p 32.3p
Diluted (loss)/earnings per share (8.9)p 11.6p 31.7p
----------------------------------------------------------------------------------------------- --------- --------- -------
GBP000 GBP000 GBP000
----------------------------------------------------------------------------------------------------------------- -------- ------- --------
(Loss)/earnings used for calculation of basic and diluted earnings per share (10,761) 14,029 38,717
Net loss/ ( gain) on sale and revaluation of Investment properties
- subsidiaries 6,023 (9,414) (37,079)
- joint ventures (1,480) (472) (8,451)
Tax on profit on disposal of Investment properties - - 599
Tax on gain on settlement of derivative component of Convertible Bond - 1,556 1,555
Loss/(gain) on movement in share of joint ventures 768 (2,404) (275)
Fair value movement on derivative financial instruments - subsidiaries 5,333 4,980 7,651
- joint ventures - 34 39
Fair value movement on Convertible Bond - (468) (468)
Profit on cancellation of derivative financial instruments - (218) (233)
Expense on cancellation of loans - 1,131 2,939
Deferred tax on adjusting items (1,071) (2,270) 4,088
----------------------------------------------------------------------------------------------------------------- -------- ------- --------
(Loss)/earnings used for calculations of EPRA earnings per share (1,188) 6,484 9,082
----------------------------------------------------------------------------------------------------------------- -------- ------- --------
EPRA (loss)/earnings per share (1.0)p 5.4p 7.6p
----------------------------------------------------------------------------------------------------------------- -------- ------- --------
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.
12. Investment Properties
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------ ------------------ ------------------ ---------
Book value at 1 April 819,573 778,752 778,752
Additions at cost 2,130 31,944 43,951
Disposals - - (41,481)
Letting cost amortisation (4) - -
Revaluation (deficit)/surplus (6,019) 9,442 38,351
As at period end 815,680 820,138 819,573
------------------------------ ------------------ ------------------ ---------
All properties are stated at market value as at 30 September
2020 and are valued by professionally qualified external valuers
(Cushman & Wakefield LLP) in accordance with the Valuation -
Professional Standards, published by the Royal Institution of
Chartered Surveyors. The fair value of the Investment properties at
30 September 2020 is as follows:
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------------------------------- ------------------ ------------------ ---------
Book value 815,680 820,138 819,573
Lease incentives and costs included in trade and other receivables 18,874 17,130 19,463
Head leases capitalised (2,154) (2,168) (2,161)
------------------------------------------------------------------- ------------------ ------------------ ---------
Fair value 832,400 835,100 836,875
------------------------------------------------------------------- ------------------ ------------------ ---------
Interest capitalised in respect of the refurbishment of
Investment properties at 30 September 2020 amounted to
GBP13,102,000 (30 September 2019: GBP12,484,000, 31 March 2020:
GBP13,102,000). Interest capitalised during the period in respect
of the refurbishment of Investment properties amounted to GBPnil
(30 September 2019: GBP1,127,000, 31 March 2020: GBP1,745,000).
The historical cost of Investment property is GBP648,053,000 (30
September 2019: GBP676,356,000, 31 March 2020: GBP645,927,000).
13. Joint Ventures
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
Share of results of joint ventures GBP000 GBP000 GBP000
--------------------------------------------------------- ------------------- ------------------ ---------
Revenue 23,252 6,746 32,162
--------------------------------------------------------- ------------------- ------------------ ---------
Gross rental income 87 392 898
Property overheads (125) (162) (298)
--------------------------------------------------------- ------------------- ------------------ ---------
Net rental (expense)/income (38) 230 600
Gain on revaluation of Investment properties 2,032 472 8,451
Loss on sale of Investment properties (552) - -
Development property (loss)/profit (504) 5,355 8,124
Provision against stock - (1,083) (1,481)
Other operating expense - - (21)
--------------------------------------------------------- ------------------- ------------------ ---------
Gross profit 938 4,974 15,673
Administrative expenses (292) (335) (596)
--------------------------------------------------------- ------------------- ------------------ ---------
Operating profit 646 4,639 15,077
Finance costs (641) (595) (871)
Finance income 4 41 54
Change in fair value of derivative financial instruments - (34) (39)
--------------------------------------------------------- ------------------- ------------------ ---------
Profit before tax 9 4,051 14,221
Tax (200) (31) (2,658)
--------------------------------------------------------- ------------------- ------------------ ---------
(Loss)/profit after tax (191) 4,020 11,563
R eversal of One Creechurch Place loss(1) - 224 224
Profit on sale of interest in One Creechurch Place - 1,334 1,334
Adjustment for Barts Square economic interest(2) (768) 2,404 275
--------------------------------------------------------- ------------------- ------------------ ---------
Share of results of joint ventures (959) 7,982 13,396
--------------------------------------------------------- ------------------- ------------------ ---------
At
At At 31 March
30 September 2020 30 September 2019 2020
Investment in joint ventures GBP000 GBP000 GBP000
--------------------------------------------------------- ------------------- ------------------ ---------
Summarised balance sheets
Non-current assets
Investment properties 70,228 65,572 76,141
Owner occupied property, plant and equipment 24 111 41
Deferred tax - 1,687 -
Derivative financial instruments - 6 -
--------------------------------------------------------- ------------------- ------------------ ---------
70,252 67,376 76,182
--------------------------------------------------------- ------------------- ------------------ ---------
Current assets
Land and developments 19,184 53,188 34,164
Trade and other receivables 1,805 14,605 3,780
Cash and cash equivalents 9,163 3,551 7,821
--------------------------------------------------------- ------------------- ------------------ ---------
30,152 71,344 45,765
--------------------------------------------------------- ------------------- ------------------ ---------
Current liabilities
Trade and other payables (13,105) (12,376) (7,162)
--------------------------------------------------------- ------------------- ------------------ ---------
(13,105) (12,376) (7,162)
--------------------------------------------------------- ------------------- ------------------ ---------
Non-current liabilities
Trade and other payables (4,414) (323) (316)
Borrowings (12,241) (48,026) (32,754)
Deferred tax (1,130) - (976)
(17,785) (48,349) (34,046)
--------------------------------------------------------- ------------------- ------------------ ---------
Net assets pre-adjustment 69,514 77,995 80,739
Acquisition costs 93 78 79
--------------------------------------------------------- ------------------- ------------------ ---------
Investment in joint ventures 69,607 78,073 80,818
--------------------------------------------------------- ------------------- ------------------ ---------
(1) This adjustment has been made to add back the Group's share
of the loss incurred in one of its joint ventures arising from
finance and other costs in the period to ensure that the Group's
interest is shown at its recoverable amount.
(2) This adjustment reflects the impact of the consolidation of
a joint venture at its economic interest of 47.0% (30 September
2019: 43.8%, 31 March 2020: 43.0%) rather than its actual ownership
interest of 33.3%, following a return of equity during the
period.
14. Land and Developments
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------------------- ------------------ ------------------ ---------
Development properties 52 1,035 852
----------------------- ------------------ ------------------ ---------
The Directors' valuation of development stock shows a surplus of
GBP578,000 (30 September 2019: GBP578,000, 31 March 2020:
GBP578,000) above book value. This surplus has been included in the
EPRA net asset value (Note 22).
No interest has been capitalised or included in land and
developments.
15. Trade and Other Receivables
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------ ------------------ ------------------ ---------
Trade receivables 14,437 10,588 11,698
Other receivables 7,382 1,656 3,265
Prepayments 4,071 4,210 3,986
Accrued income 19,557 20,085 21,433
------------------ ------------------ ------------------ ---------
45,447 36,539 40,382
------------------ ------------------ ------------------ ---------
Included in accrued income are lease incentives of GBP18,874,000
(30 September 2019: GBP17,130,000, 31 March 2020: 19,463,000).
16. Cash and Cash Equivalents
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------------------------- ------------------ ------------------ ---------
Cash held at managing agents 5,545 4,900 3,563
Restricted cash 12,909 8,330 7,177
Cash deposits 43,830 34,496 63,846
----------------------------- ------------------ ------------------ ---------
62,284 47,726 74,586
----------------------------- ------------------ ------------------ ---------
Restricted cash is made up of cash held by solicitors and cash
in restricted accounts.
17. Trade and Other Payables
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------- ------------------ ------------------ ---------
Trade payables 13,477 20,200 28,378
Other payables 3,539 1,559 2,060
Accruals 8,393 24,355 9,277
Deferred income 7,399 6,425 6,056
------------------------------------- ------------------ ------------------ ---------
Current trade and other payables 32,808 52,539 45,771
Accruals - 590 590
------------------------------------- ------------------ ------------------ ---------
Non-current trade and other payables - 590 590
------------------------------------- ------------------ ------------------ ---------
Total trade and other payables 32,808 53,129 46,361
------------------------------------- ------------------ ------------------ ---------
18. Lease Liability
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
---------------------------- ------------------ ------------------ ---------
Current lease liability 622 599 611
---------------------------- ------------------ ------------------ ---------
Non-current lease liability 7,250 7,872 7,563
---------------------------- ------------------ ------------------ ---------
Included within the lease liability are GBP622,000 (30 September
2019: GBP599,000, 31 March 2020: GBP611,000) of current and
GBP5,060,000 (30 September 2019: GBP5,683,000, 31 March 2020:
GBP5,374,000) of non-current lease liabilities which relate to the
long leasehold of the Group's head office.
19. Borrowings
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------------------------- ------------------ ------------------ ---------
Current borrowings - - 5,000
----------------------------- ------------------ ------------------ ---------
Borrowings repayable within:
- one to two years - - -
- two to three years 48,085 - -
- three to four years 226,361 31,930 37,190
- four to five years 80,099 216,591 305,994
- five to six years - 92,082 -
----------------------------- ------------------ ------------------ ---------
Non-current borrowings 354,545 340,603 343,184
----------------------------- ------------------ ------------------ ---------
Total borrowings 354,545 340,603 348,184
----------------------------- ------------------ ------------------ ---------
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------------- ------------------ ------------------ ---------
Total borrowings 354,545 340,603 348,184
Cash (62,284) (47,726) (74,586)
----------------- ------------------ ------------------ ---------
Net borrowings 292,261 292,877 273,598
----------------- ------------------ ------------------ ---------
Net borrowings excludes the Group's share of borrowings in joint
ventures of GBP12,241,000 (30 September 2019: GBP48,026,000, 31
March 2020: GBP32,754,000) and cash of GBP9,163,000 (30 September
2019: GBP3,551,000, 31 March 2020: GBP7,821,000). All borrowings in
joint ventures are secured.
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------- ------------------ ------------------ ---------
Net assets 579,232 573,658 598,689
----------- ------------------ ------------------ ---------
Gearing 51% 51% 46%
----------- ------------------ ------------------ ---------
20. Derivative Financial Instruments
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------- ------------------ ------------------ ---------
Derivative financial instruments asset 58 319 86
------------------------------------------- ------------------ ------------------ ---------
Derivative financial instruments liability (15,760) (8,017) (10,455)
------------------------------------------- ------------------ ------------------ ---------
A loss on the change in fair value of GBP5,333,000 has been
recognised in the Unaudited Consolidated Income Statement (30
September 2019: GBP4,980,000, 31 March 2020: GBP7,651,000).
The fair values of the Group's outstanding interest rate swaps
and caps have been estimated by calculating the present values of
future cash flows, using appropriate market discount rates,
representing Level 2 fair value measurements as defined in IFRS 13
Fair Value Measurement.
21. Share Capital
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
----------- ------------------ ------------------ ---------
Authorised 39,577 39,577 39,577
----------- ------------------ ------------------ ---------
The authorised share capital of the Company is GBP39,576,626.60
divided into ordinary shares of 1p each and deferred shares of 1/8p
each.
Allotted, called up and fully paid:
- 121,265,710 (30 September 2019: 119,956,767, 31 March 2020: 119,977,581) ordinary shares
of 1p each 1,213 1,200 1,200
- 212,145,300 deferred shares of 1/8p each 265 265 265
------------------------------------------------------------------------------------------- ----- ----- -----
1,478 1,465 1,465
------------------------------------------------------------------------------------------- ----- ----- -----
22. Net Assets Per Share
At At
30 September 2020 Number of shares 31 March 2020 Number of shares
GBP000 000 p GBP000 000 p
---------------------------------- ------------------ ---------------- --- -------------- ---------------- ---
IFRS net assets 579,232 121,266 598,689 119,978
Adjustments:
- deferred shares (265) (265)
- own shares held (437) -
---------------------------------- ------------------ ---------------- --- -------------- ---------------- ---
Basic net asset value 578,967 120,829 479 598,424 119,978 499
- share settled bonus 719 973
- dilutive effect of Performance
Share Plan 537 1,306
---------------------------------- ------------------ ---------------- --- -------------- ---------------- ---
Diluted net asset value 578,967 122,085 474 598,424 122,257 489
---------------------------------- ------------------ ---------------- --- -------------- ---------------- ---
Adjustments:
* fair value of financial instruments 15,702 10,368
* deferred tax 15,381 15,668
* fair value of land and developments 578 578
* real estate transfer tax 60,867 61,607
------------------------------------------- -------- ------- --- -------- ------- ---
EPRA net reinstatement value 671,495 122,085 550 686,645 122,257 562
------------------------------------------- -------- ------- --- -------- ------- ---
* real estate transfer tax (48,011) (46,221)
* deferred tax (6,475) -
------------------------------------------- -------- ------- --- -------- ------- ---
EPRA net tangible asset value 617,009 122,085 505 640,424 122,257 524
------------------------------------------- -------- ------- --- -------- ------- ---
* real estate transfer tax (12,856) (15,386)
* deferred tax 6,475 -
------------------------------------------- -------- ------- --- -------- ------- ---
EPRA net asset value 610,628 122,085 500 625,038 122,257 511
------------------------------------------- -------- ------- --- -------- ------- ---
At At
30 September 2020 Number of shares 31 March 2020 Number of shares
GBP000 000 p GBP000 000 p
------------------- ------------------ ---------------- --- -------------- ---------------- ---
Diluted net assets 578,967 122,085 474 598,424 122,257 489
------------------- ------------------ ---------------- --- -------------- ---------------- ---
Adjustments:
* surplus on fair value of stock 578 578
* fair value of fixed rate loan (12,150) (12,481)
----------------------------------------------------- -------- ------- --- -------- ------- ---
EPRA net disposal value/EPRA triple net asset value 567,395 122,085 465 586,521 122,257 480
----------------------------------------------------- -------- ------- --- -------- ------- ---
At
30 September 2019 Number of shares
GBP000 000 p
-------------------------------------------- ------------------ ------------------ ---
IFRS net assets 573,658 119,957
Adjustments:
- deferred shares (265)
Basic net asset value 573,393 119,957 478
- share settled bonus 636
- dilutive effect of Performance Share Plan 926
----------------------------------------------- ------------------ ------------------ ---
Diluted net asset value 573,393 121,519 472
----------------------------------------------- ------------------ ------------------ ---
Adjustments:
* fair value of financial instruments 7,689
* deferred tax 9,309
* fair value of land and developments 578
* real estate transfer tax 60,727
---------------------------------------------- -------- ------- ---
EPRA net reinstatement value 651,696 121,519 536
---------------------------------------------- -------- ------- ---
* real estate transfer tax (47,153)
-
* deferred tax
------------------------------------------- -------- ------- ---
EPRA net tangible asset value 604,543 121,519 497
---------------------------------------------- -------- ------- ---
* real estate transfer tax (13,574)
-
* deferred tax
------------------------------------------- -------- ------- ---
EPRA net asset value 590,969 121,519 486
---------------------------------------------- -------- ------- ---
At
30 September 2019 Number of shares
GBP000 000 p
------------------- ------------------ ------------------ ---
Diluted net assets 573,658 121,519 472
---------------------- ------------------ ------------------ ---
Adjustments:
* deferred shares (265)
* surplus on fair value of stock 578
* fair value of fixed rate loan (7,282)
------------------------------------------------------------ ------- ------- ---
EPRA net disposal value/EPRA triple net asset value 566,689 121,519 466
------------------------------------------------------ ------- ------- ---
The net asset values per share have been calculated in
accordance with guidance issued by the European Public Real Estate
Association ("EPRA").
The adjustments to the net asset value comprise the amounts
relating to the Group and its share of joint ventures.
The calculation of EPRA net disposal value and triple net asset
value per share reflects the fair value of all the assets and
liabilities of the Group at 30 September 2020. One of the loans
held by the Group is at a fixed rate and therefore not at fair
value. The adjustment of GBP12,150,000 (30 September 2019:
GBP7,282,000, 31 March 2020: 12,481,000) is the increase from book
to fair value.
23. Related Party Transactions
The following amounts were due from the Group's joint
ventures:
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
--------------------------------------------------------- ------------------ ------------------ ---------
Charterhouse Place Ltd 7,000 9 -
Charterhouse Street Ltd (formerly ARE 1 Farringdon SARL) - 370 200
Barts Square companies 86 31 61
King Street Developments (Hammersmith) Ltd - 71 71
Old Street Holdings LP 3 3 3
Shirley Advance LLP 7 14 7
--------------------------------------------------------- ------------------ ------------------ ---------
During the period, interest on bonds of GBPnil (30 September
2019: GBP745,000, 31 March 2020: GBP745,000) and a promote fee for
development management services of GBPnil (30 September 2019:
GBP305,000, 31 March 2020: GBP305,000) were charged by the Group to
Creechurch Place Limited. A development management, accounting and
corporate services fee of GBP25,000 (30 September 2019: GBP945,000,
31 March 2020: GBP1,119,000) was charged by the Group to the Barts
Square companies. In addition, a development management, accounting
and corporate services fee of GBP426,000 (30 September 2019:
GBP19,000, 31 March 2020: GBP243,000) was charged by the Group to
the Charterhouse Place Limited Group.
24. See-through Analysis
Helical holds a significant proportion of its property assets in
joint ventures with partners that provide a significant equity
contribution, whilst relying on the Group to provide asset
management or development expertise. Accounting convention requires
Helical to account under IFRS for its share of the net results and
net assets of joint ventures in limited detail in the Income
Statement and Balance Sheet. Net asset value per share, a key
performance measure used in the real estate industry, as reported
in the financial statements under IFRS, does not provide
Shareholders with the most relevant information on the fair value
of assets and liabilities within an ongoing real estate company
with a long term investment strategy.
This analysis incorporates the separate components of the
results of the consolidated subsidiaries and Helical's share of its
joint ventures' results into a 'see-through' analysis of its
property portfolio, debt profile and the associated income streams
and financing costs, to assist in providing a comprehensive
overview of the Group's activities.
See-through Net Rental Income
Helical's share of the gross rental income, head rents payable
and property overheads from property assets held in subsidiaries
and in joint ventures is shown in the table below.
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------ ------------------ ------------------ ------------------ ---------
Gross rental income - subsidiaries 13,420 14,506 31,631
- joint ventures 87 392 898
------------------ ------------------ ------------------ ---------
Total gross rental income 13,507 14,898 32,529
Rents payable - subsidiaries (122) 42 (178)
Property overheads - subsidiaries (1,348) (1,737) (3,615)
- joint ventures (125) (162) (298)
------------------------------ ------------------ ------------------ ------------------ ---------
See-through net rental income 11,912 13,041 28,438
------------------------------- ----------------- ------------------ ------------------ ---------
See-through Net Development (Losses)/Profits
Helical's share of development (losses)/profits from property
assets held in subsidiaries and in joint ventures is shown in the
table below.
Year to
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------------------------------- ------------------ ------------------ ---------
In parent and subsidiaries 333 1,567 2,076
In joint ventures (504) 5,355 8,124
------------------------------------------------------------------- ------------------ ------------------ ---------
Total gross development (loss)/profit (171) 6,922 10,200
(Provision)/reversal of provision against stock - subsidiaries (281) (126) 1,198
- joint ventures - (1,083) (1,481)
------------------------------------------------------------------ ------------------ ------------------ ---------
See-through development (losses)/profits (452) 5,713 9,917
------------------------------------------------------------------- ------------------ ------------------ ---------
See-through Net (Loss)/Gain on Sale and Revaluation of
Investment Properties
Helical's share of the net (loss)/gain on the sale and
revaluation of Investment properties held in subsidiaries and joint
ventures is shown in the table below.
Half Year to Half Year to Year to
30 September 30 September 31 March
2020 2019 2020
GBP000 GBP000 GBP000
---------------------------------------------------------- -------------------- ------------- -------------- ---------
Revaluation (deficit)/surplus on Investment properties - subsidiaries (6,019) 9,442 38,351
- joint ventures 2,032 472 8,451
---------------------------------------------------------- -------------------- ------------- -------------- ---------
Total revaluation (deficit)/surplus (3,987) 9,914 46,802
Net loss on sale of Investment properties - subsidiaries (4) (28) (1,272)
- joint ventures (552) - -
------------------------------------------------------------------------------- ------------- --------------
Total net loss on sale of Investment properties (556) (28) (1,272)
-------------------------------------------------------------------------------- ------------- -------------- ---------
See-through net (loss)/gain on sale and revaluation of Investment properties (4,543) 9,886 45,530
-------------- ---------
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
Half Year to Half Year to 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
-----------------
Interest payable on bank loans and overdrafts - subsidiaries 5,489 6,756 12,147
- joint ventures 547 267 543
----------------------------------------------------------------
Total interest payable on bank loans and overdrafts 5,898 7,023 12,690
Other interest payable and similar charges - subsidiaries 1,747 2,686 5,698
- joint ventures 94 328 328
Interest capitalised - subsidiaries - (1,127) (1,745)
-----------------
Total finance costs 7,877 8,910 16,971
Interest receivable and similar income - subsidiaries (20) (1,311) (1,345)
- joint ventures (4) (41) (54)
----------------------------------------------------------------
See-through net finance costs 7,853 7,558 15,572
See-through Property Portfolio
Helical's share of the investment, land and development property
portfolio in subsidiaries and joint ventures is shown in the table
below.
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------ ------------------ ---------
Investment property fair value - subsidiaries 832,400 835,100 836,875
- joint ventures 66,008 65,870 76,809
------------------ ------------------ ---------
Total Investment property fair value 898,408 900,970 913,684
Land and development stock - subsidiaries 5 2 1,035 852
- joint ventures 19,184 53,188 34,164
------------------ ------------------ ---------
Total land and development stock 19,236 54,223 35,016
Land and development stock surplus - subsidiaries 578 578 578
- joint ventures - - -
------------------ ------------------ ---------
Total land and development stock surpluses 578 578 578
------------------ ------------------ ---------
Total land and development stock at fair value 19,814 54,801 35,594
------------------ ------------------ ---------
See-through property portfolio 918,222 955,771 949,278
------------------ ------------------ ---------
See-through Net Borrowings
Helical's share of borrowings and cash deposits in subsidiaries
and joint ventures is shown in the table below.
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
Gross borrowings less than one year - subsidiaries - - 5,000
Gross borrowings more than one year - subsidiaries 354,545 340,603 343,184
----------------- ------------------ ------------------ ---------
Total 354,545 340,603 348,184
------------------ ------------------ ---------
Gross borrowings more than one year - joint ventures 12,241 48,026 32,754
----------------- ------------------ ------------------ ---------
Total 12,241 48,026 32,754
------------------ ------------------ ---------
Cash and cash equivalents - subsidiaries (6 2,284) (47,726) (74,586)
- joint ventures (9,163) (3,551) (7,821)
------------------------------------------------------ ------------------ ------------------ ---------
See-through net borrowings 295,339 337,352 298,531
------------------------------------------------------- ------------------ ------------------ ---------
25. See-through Gearing and Loan to Value
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
-------------------------- ------------------ ------------------ ---------
Property portfolio 918,222 955,771 949,278
Net borrowings 295,339 337,352 298,531
Net assets 579,232 573,658 598,689
See-through net gearing 5 1.0% 58.8% 49.9%
See-through loan to value 32.2% 35.3% 31.4%
-------------------------- ------------------ ------------------ ---------
26. Total Accounting Return
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
--------------------------------------- ------------------ ------------------ ---------
Brought forward IFRS net assets 598,689 567,425 567,425
Carried forward IFRS net assets 579,232 573,658 598,689
------------------ ------------------ ---------
(Decrease)/increase in IFRS net assets (19,457) 6,233 31,264
Dividends paid 7,254 8,980 12,219
------------------ ------------------ ---------
Total accounting return (12,203 ) 15,213 43,483
Total accounting return percentage (2.0)% 2.7% 7.7%
--------------------------------------- ------------------ ------------------ ---------
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------------ ------------------ ------------------ ---------
Brought forward EPRA net tangible assets 640,424 597,321 597,321
Carried forward EPRA net tangible assets 617,009 604,543 640,424
------------------ ------------------ ---------
(Decrease)/increase in EPRA net tangible assets (23,415) 7,222 43,103
Dividends paid 7,254 8,980 12,219
------------------ ------------------ ---------
Total EPRA accounting return (16,161) 16,202 55,322
Total EPRA accounting return percentage (2.5)% 2.7% 9.3%
------------------------------------------------ ------------------ ------------------ ---------
27. Total Property Return
At
At At 31 March
30 September 2020 30 September 2019 2020
GBP000 GBP000 GBP000
------------------------------------------------------ ------------------ ------------------ ---------
See-through net rental income 11,912 13,041 28,438
See-through development (losses)/profits (452) 5,731 9,917
See-through revaluation (deficit)/surplus (3,987) 9,914 46,802
See-through net loss on sale of investment properties (556) (28) (1,272)
------------------ ------------------ ---------
Total property return 6,917 28,658 83,885
------------------------------------------------------ ------------------ ------------------ ---------
28. Capital Commitments
The Group has a commitment of GBP65,134,000 (30 September 2019:
GBP27,188,000, 31 March 2020: GBP19,600,000) in relation to
construction contracts which are due to be completed in the period
to March 2023. Of the total, GBP8,242,000 relates to the Group's
Investment property portfolio, GBP55,640,000 relates to developing
33 Charterhouse Street, London EC1 and GBP1,171,000 is in relation
to the Group's residential scheme at Barts Square with a further
GBP81,000 committed to the completion of 55 Bartholomew, London
EC1.
29. Post Balance Sheet Events
On 19 November 2020 the Group exchanged contracts for the sale
of three Manchester properties, The Tootal Buildings, 35 Dale
Street and Fourways, for a net sale price of GBP114,800,000,
marginally above 30 September 2020 and 31 March 2020 book
values.
Appendix 1 - Glossary of Terms
Capital value (psf)
The open market value of the property divided by the area of the
property in square feet.
Company or Helical or Group
Helical plc and its subsidiary undertakings.
Diluted figures
Reported amounts adjusted to include the effects of potential
shares issuable under the Director and employee remuneration
schemes.
Earnings per share (EPS)
Profit after tax divided by the weighted average number of
ordinary shares in issue.
EPRA
European Public Real Estate Association.
EPRA earnings per share
Earnings per share adjusted to exclude gains/losses on sale and
revaluation of Investment properties and their deferred tax
adjustments, the tax on profit/loss on disposal of Investment
properties, trading property profits/losses, movement in fair value
of available-for-sale assets and fair value movements on derivative
financial instruments, on an undiluted basis. Details of the method
of calculation of the EPRA earnings per share are available from
EPRA (see Note 11).
EPRA net assets per share
Diluted net asset value per share adjusted to exclude fair value
surplus of financial instruments and the Convertible Bond, and
deferred tax on capital allowances and on Investment properties
revaluation, but including the fair value of trading and
development properties in accordance with the best practice
recommendations of EPRA (see Note 22).
EPRA net disposal value per share (effective from 1 January
2020)
Represent the Shareholders' value under a disposal scenario,
where deferred tax, financial instruments and certain other
adjustments are calculated to the full extent of their liability,
net of any resulting tax (see Note 22).
EPRA net reinstatement value per share (effective from 1 January
2020)
Net asset value adjusted to reflect the value required to
rebuild the entity and assuming that entities never sell assets.
Assets and liabilities, such as fair value movements on financial
derivatives, that are not expected to crystallise in normal
circumstances and deferred taxes on property valuation surpluses
are excluded (see Note 22).
EPRA net tangible assets per share (effective from 1 January
2020)
Assumes that entities buy and sell assets, thereby crystallising
certain levels of unavoidable deferred tax, but excludes assets and
liabilities, such as fair value movements on financial derivatives,
that are not expected to crystallise in normal circumstances and
deferred taxes on property valuation surpluses are excluded (see
Note 22).
EPRA topped-up NIY
The current annualised rent, net of costs, topped-up for
contracted uplifts, expressed as a percentage of the fair value of
the relevant property.
EPRA triple net asset value per share
EPRA net asset value per share adjusted to include fair value of
financial instruments and deferred tax on capital allowances and on
Investment properties revaluation (see Note 22).
Estimated rental value (ERV)
The market rental value of lettable space as estimated by the
Group's valuers at each Balance Sheet date.
Gearing
Group borrowings expressed 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 IPD
MSCI produces independent benchmarks of property returns using
its Investment Property Databank (IPD).
Net asset value per share (NAV)
Net assets divided by the number of ordinary shares at the
Balance Sheet date (see Note 22).
Net gearing
Total borrowings less short-term deposits and cash as a
percentage of net assets.
Passing rent
The annual gross rental income being paid by the tenant.
Reversionary yield
The income/yield from the full estimated rental value of the
property on the market value of the property grossed up to include
purchaser's costs, capital expenditure and capitalised revenue
expenditure.
See-through/Group share
The consolidated Group and the Group's share in its joint
ventures (see Note 24).
See-through net gearing
The see-through net borrowings expressed as a percentage of net
assets (see Note 25).
Total Accounting Return
The growth in the net asset value of the Company plus dividends
paid in the period, expressed as a percentage of net asset value at
the start of the period (see Note 26).
Total Property Return
The total of net rental income, trading and development profits
and net gain on sale and revaluation of Investment properties on a
see-through basis (see Note 27).
Total Shareholder Return (TSR)
The growth in the ordinary share price as quoted on the London
Stock Exchange plus dividends per share received for the period
expressed as a percentage of the share price at the beginning of
the period.
True equivalent yield
The constant capitalisation rate which, if applied to all cash
flows from an Investment property, including current rent,
reversions to current market rent and such items as voids and
expenditures, equates to the market value. Assumes rent is received
quarterly in advance.
Unleveraged returns
Total property gains and losses (both realised and unrealised)
plus net rental income expressed as a percentage of the total value
of the properties.
WAULT
The total contracted rent up to the first break, or lease expiry
date, divided by the contracted annual rent.
HELICAL PLC
Registered in England and Wales No.156663
Registered Office:
5 Hanover Square
London
W1S 1HQ
T: 020 7629 0113
F: 020 7408 1666
E: reception@helical.co.uk
www.helical.co.uk
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