ANNUAL RESULTS TO 31 MARCH 2017 25 May 2017 Helical Annual Results - PowerPoint PPT Presentation

ANNUAL RESULTS TO 31 MARCH 2017 25 May 2017 Helical Annual Results 2017 1

AGENDA RESULTS HIGHLIGHTS ONE Gerald Kaye FINANCIALS TWO Tim Murphy PORTFOLIO THREE Matthew Bonning-Snook and Duncan Walker OUTLOOK FOUR Gerald Kaye FIVE Q&A 25 May 2017 Helical Annual Results 2017 2

RESULTS HIGHLIGHTS GERALD KAYE 25 May 2017 Helical Annual Results 2017 3

RESUL TS HIGHLIGHTS PROFIT BEFORE TAX NET RENTAL INCOME £41.6m £47.0m +8.3% (2016: £114.0m) DIVIDEND DECLARED VALUATION GAIN PER SHARE £37.3m 8.6p +4.5% + 5.3% from 2016 EPRA NAV SEE-THROUGH LOAN TO PER SHARE VALUE 473p 51% +3.7% (pro-forma 49%) 25 May 2017 Helical Annual Results 2017 4

STRATEGY The Bower Trinity Court Jarrow • Focus: − London – office and mixed use investment, development and refurbishment − Manchester – office investment and refurbishment − Logistics – income and liquidity • Continue to add to the high quality portfolio of multi-let office buildings in geographic clusters • Manage LTV between 40 – 50% 25 May 2017 Helical Annual Results 2017 5

OPERATIONAL HIGHLIGHTS – SALES LOGISTICS £59m RETAIL £103m LONDON OFFICE £42m RETIREMENT VILLAGES £39m REGIONAL OFFICE £14m £257m TOTAL SALES Investment £218m Retirement Villages £39m (year to 31/03/17: £159m, post year end: £59m) (year to 31/03/17: £36m, post year end: £3m) 25 May 2017 Helical Annual Results 2017 6

PORTFOLIO ALLOCATION 7 6 4 5 3 4 1 1 2 3 2 TOTAL VALUE MARCH 2016: TOTAL VALUE TODAY: £1.24bn £1.16bn 1 London Office 49.3% £611.2m 1 London Office/Mixed Use 65.7% £764.2m 2 London Residential 4.8% £60.0m 2 Manchester Office 7.3% £84.4m 3 Regional Logistics 17.0% £210.5m 3 Logistics 13.5% £156.5m 4 Regional Offices 8.4% £103.5m 4 Non Core 13.5% £157.7m 5 Regional Retail 11.5% £142.6m 6 Retirement Villages 8.3% £103.5m 7 Other 0.7% £8.7m 25 May 2017 Helical Annual Results 2017 7

OPERATIONAL HIGHLIGHTS – LETTINGS LONDON OFFICES 219,834 sq ft MANCHESTER OFFICES 47,134 sq ft THE TOWER, THE BOWER, EC1 THE LOOM, E1 C SPACE, EC2 LOGISTICS 58,907 sq ft 49,339 sq ft 15,387 sq ft 137,974 sq ft OTHER 44,046 sq ft TOTAL LETTINGS 448,988 sq ft CHARTERHOUSE SQUARE, EC1 MANCHESTER OFFICES LOGISTICS 18,725 sq ft 47,134 sq ft 137,974 sq ft 25 May 2017 Helical Annual Results 2017 8

INCREASING RENTAL INCOME £80 Millions ERV = £ 68.8 m £70 The Bower Phase 2 £60 London Offices Manchester Offices London Offices £50 Manchester Offices London Offices The Bower Phase 2 London Offices The Bower £40 Phase 1 London Offices £30 London Offices Logistics Manchester Offices £20 Manchester Offices £10 Logistics Non Core £0 Passing Rent as at May Contracted Rent Contracted Rent Contracted Rent Reversionary Rent Unlet Space 2017 H1 2017 H2 2017 2018 * Post Half Year Transactions Included 25 May 2017 Helical Annual Results 2017 9

MARKET COMMENT London population still growing • London home to government, finance, technology, • creative industries and life sciences Over last 30 years London economy grown by 3% • per annum, 25% more than rest of UK Continued overseas demand for prime property; • yields back to pre Brexit levels Momentum will return to Central London letting • market; no significant over supply *See page 52 of appendix Manchester office market benefits from a deep and • skilled talent pool in a cost effective location. Consistent occupational demand and strong institutional investment activity Logistics sector has limited supply and strong • demand = rental growth The Loom 25 May 2017 Helical Annual Results 2017 10

FUTURE UPSIDE 25 Charterhouse Square One Creechurch Place The Loom One Bartholomew Close Barts Square – Residential London, EC1 London, EC3 London, E1 London, EC1 London, EC1 Completed Completed Ongoing Q3 2018 Ph 1 – Q4 2017 • • • • • £3-6m £15-17.5m £5m-10m £4-6m Ph 3 – Q3 2019 • • • • • £5m+ • The Bower Power Road Studios Drury Lane Manchester Assets New Projects / Trinity Court London, EC1 London, W4 London, WC2 Ph 1 – Completed 2019 Q2 2019 Ongoing Q1 2019 • • • • • Ph2 – Q2 2018 £10m+ £15m £3-6m • • • • £7m • £20-40m • 25 May 2017 Helical Annual Results 2017 11

ACTIVE V ALUE CREATION One Barts Square The Loom Shepherds Building • Active value creation by: − Redevelopment and major refurbishment − Repositioning and rolling upgrade − Significant asset management • Seek additional profit on larger schemes by co-investment or forward funding / sale with partners • Flexible leases and well managed buildings for tenants / customers THE BOWER London, EC1 25 May 2017 Helical Annual Results 2017 12

SUMMARY Focus of portfolio – three key areas De-risked with sales and lettings Upside potential within portfolio and with future opportunities Enduring quality of chosen assets 25 May 2017 Helical Annual Results 2017 13

FINANCIALS TIM MURPHY 25 May 2017 Helical Annual Results 2017 14

HEADLINE NUMBERS SE SEE-THR HROUGH H INCOME ME ST STATEME MENT March 2015 March 2016 March 2017 Net rental income £38.6m £43.4m £47.0m +8.3% Development profits / (losses) £17.6m £27.5m (£5.7m) Gain on sale and revaluation of investment properties £96.6m £93.7m £38.6m IFRS profit before tax £87.4m £114.0m £41.6m EPRA earnings £2.8m £19.6m £0.5m EPRA earnings per share 2.4p 17.1p 0.5p 7.25p 8.17p 8.60p +5.3% Dividend declared per share SE SEE-THR HROUGH H BALA LANCE SHE SHEET March 2015 March 2016 March 2017 Total portfolio at fair value £1,021m £1,240m £1,205m EPRA net asset value per share 385p 456p 473p +3.7% Net Debt £532m £682m £620m Loan to value ratio 52% 55% 51% Notes: 1 All figures include share of joint ventures 25 May 2017 Helical Annual Results 2017 15

INCOME STATEMENT 100 90 80 70 60 £7.1m £47.0m 50 £2.5m £41.6m £38.6m 40 £12.8m 30 20 £18.7m 10 £0.5m 0 £21.2m £0.9m -10 Net Rents Development Provisioning Administration Net finance Other EPRA earnings Net gain on sale Other IFRS profit profits against stock costs and revaluation before tax Net rents have increased by 8.3% • Development profits of £7.1m were offset by stock provisions of £12.8m • EPRA earnings of £0.5m equate to 0.5p per share • Revaluation gains were £37.3m, primarily in London, with gains on sale of £1.3m • 25 May 2017 Helical Annual Results 2017 16

EPRA NET ASSETS PER SHARE Adjustment to opening NAV per share from full adoption of IAS 40 – Investment Property • Development surpluses realised relate mainly to Cortonwood Retail Park and Retirement Villages • 550 525 500 32.2p 472.7p 475 5.8p 460.8p 6.8p 3.1p 455.7p 0.5p 450 5.1p 425 400 375 31 March 2016 Lease incentives Adjusted EPRA EPS Investment Development Taxation and Dividends 31 March 2017 31 March 2016 gains surpluses Other realised 25 May 2017 Helical Annual Results 2017 17

DEBT SUMMARY MAR MAR LOAN MATURITY 2016 2017 £m 400 Total facilities £884.4m £894.9m 350 Gross debt £777.9m £736.6m 300 Unutilised facilities £106.5m £158.3m 250 Percentage of unsecured debt 23% 24% 200 Uncharged properties £153m £17m Average interest rate 4.16% 4.34% 150 Average interest rate 3.75% 4.00% 100 (fully utilised) Proportion of drawn down 82% 96% 50 facilities at fixed rate or hedged Average maturity of borrowings 4.5 yrs 3.6 yrs 0 < 1 1 - 2 2 - 3 3 - 4 4 - 5 5 - 6 6 - 10 Years LTV ratio 55% 51% Secured Unsecured bonds 25 May 2017 Helical Annual Results 2017 18

NET CASH FLOW MOVEMENTS MAR MAR FORECAST CAPITAL EXPENDITURE 2016 2017 £m £m 120 Cash generated from / (used by) Residential Funded 38.5 (8.1) from operations Residential Acquisitions (377.1) – 100 Investment Funded Capex (28.0) (59.3) Investment 94.1 1.6 Joint ventures 80 121.8 156.3 Disposal proceeds (14.4) (3.6) Dividends paid 60 (0.4) (0.5) Other cash flow movements Increase/(reduction) in net 40 138.1 (60.9) borrowing (18.9) (0.9) Shares purchased 20 (46.3) 24.6 Net (decrease) / increase in cash 121.0 74.7 Cash at start of period 0 74.7 99.3 Cas ash at en end o d of per period 2018 2019 2020 25 May 2017 Helical Annual Results 2017 19

LOAN TO V ALUE Proforma £1,400 90% 80% £1,200 70% £1,000 60% 55% 52% 51% 49% £800 50% 45% Range 46% 40% £600 30% £400 20% £200 10% £0 0% 2013 2014 2015 2016 2017 2017 2018 2019 Value of the investment Value of trading and Loan to value including portfolio development stock unsecured debt Current LTV 51% (proforma 49%) • Capex programme will increase LTV • Will seek to manage LTV to range between 40% - 50% • 25 May 2017 Helical Annual Results 2017 20

POSITIVE PERFORMANCE EPRA NET ASSETS PER SHARE (PENCE) DIVIDEND PER ORDINARY SHARE (PENCE) p p 600 12 500 10 473p 456p 8.60p 8.17p 400 385p 8 7.25p 6.75p 313p 5.55p 300 6 264p 200 4 100 2 2.40p 2.30p 2.10p 2.00p 1.85p 0 0 03/13 03/14 03/15 03/16 03/17 2013 2014 2015 2016 2017 Growth 21.6% 7.4% 12.7% 5.3% Increase 18.6% 23.0% 18.4% 3.7% Final Interim 25 May 2017 Helical Annual Results 2017 21