Helical (HLCL) H2 2024 earnings summary

Executive summary

• FY24 saw a major property valuation reset amid high interest rates, while demand for best-in-class space continued to support rental growth. Operational progress was made, with further leasing and asset management work ahead.

• The development pipeline is positioned to deliver into an expected low-supply window; strategy emphasizes capital recycling, financial discipline and equity-light opportunities.

Financial highlights

• Portfolio value £662.3m at 31 March 2024, down from £840.4m; valuation change -22.4% excluding sales and purchases, and -22.6% including them.

• IFRS loss after tax £189.8m vs £64.5m; EPRA earnings £4.3m vs £11.5m and EPRA EPS 3.5p vs 9.4p.

• Net rental income £25.5m vs £33.5m; development property profit £0.4m vs £3.2m; loss on sale and revaluation £188.6m vs £88.1m.

• Total dividend 4.83p vs 11.75p; final dividend 1.78p vs 8.70p.

Outlook and guidance

• Central business plan anticipates ~£100m of development profits from the existing pipeline; rental growth of 2.5% p.a. could add ~£65m, rising to ~£130m at 5.0% p.a.

• Overheads targeted to fall 25%; future opportunities to be funded through recycled equity and third-party financing.

• Pro forma LTV was 28.7%; LTV is expected to remain below 40%, subject to valuation movements and further asset sales.