London office developer Helical has seen the value of its portfolio jump 5.9% in the year to 31 March 2020.
Despite the uncertainty caused by covid-19, the group’s property portfolio has increased in value to £949.3m on a see-through basis.
This has resulted in its EPRA net asset value (NAV) increasing 6.0% during the year to 511p per share.
The company posted a total property return for the year of 9.6%, beating the MSCI Central London Offices Total Return Index of 4.5%. Its NAV total return for the year was 9.3%.
Earnings per share for the year was 7.6p, while it declared a final dividend of 6p per share (2019: 7.5p) making a total dividend for the year of 8.7p (2019: 10.1p). The decrease of 20% and 13.9% respectively, is part of action taken to reduce outgoings and preserve cash resources during the pandemic.
The group said it had now collected 92% of rents for the current quarter, with a further 3% being paid in instalments.
Financing
Helical’s loan to value (LTV) marginally increased during the year to 31.4% (2019: 30.6%), with net borrowings of £298.5m (2019: £268.6m).
The average maturity of the group’s debt is 4.1 years (2019: 3.4 years), while the average cost of secured facilities is 3.5% (2019: 4.1%).
Portfolio Update
Helical’s London portfolio, which accounts for 85% of its investment portfolio, increased in value by 6.4%, on a like-for-like basis, to £776.9m. Its Manchester holdings, which account for 15% of the portfolio, increased in value by 2.9% to £136.7m.
Contracted rents also grew, from £33.2m in 2019 to £37.6m, while the portfolio’s estimated rental value (ERV) now stands at £59.9m.
The group achieved practical completion of developments at Kaleidoscope, 55 Bartholomew and the last phase of residential at Barts Square, all in Farringdon, London EC1, marking the conclusion of a 2.5m sq ft development programme.
It also gained planning permission to enhance the ground floor configuration and add an additional floor of 13,175 sq ft within the envelope of the existing design at 33 Charterhouse Street, Farringdon, London EC1. The new c.200,000 sq ft office development, in JV with AshbyCapital, should complete during Summer 2022.
Helical completed 23 new office lettings in London, representing 203,857 sq ft, delivering contracted rent of £15.4m (Helical’s share £3.6m) at 5.0% above 31 March 2019 ERV.
In Manchester, eight office lettings and a retail letting completed, comprising 50,324 sq ft in total, generating rental income of £1.2m at 2.9% above 31 March 2019 ERV.
During the year, Helical sold the Power Road Studios, a multi-let office campus in Chiswick, for £41.6m, reflecting a net initial yield of 4.8%.
Post year-end, and during the lockdown period, it also sold 90 Bartholomew Close, London EC1, for £48.5m, reflecting a net initial yield of 3.92%.
HLCL : Helical posts 5.9% jump in portfolio value