Half Year Results For the Six Months to 30 September 2014

Financial Highlights:
Another excellent financial performance and strong shareholder returns
· Profit before tax of £42.9m (2013: record £68.9m).
· Total property return of £69.2m (2013: £88.5m):
- Group's share of net rental income up 33% to £18.8m (2013: £14.1m).
- Development profits of £15.6m (2013: £63.5m).
- Net gain on sale and revaluation of investment properties of £34.8m (2013: £10.9m).
· Adjusted diluted EPRA earnings per share of 11.5p (2013: 40.5p).
· Diluted EPRA net asset value per share up 10.2% to 345p (31 March 2014: 313p).
· Interim dividend payable of 2.10p per share (2013: 2.00p), up 5%.

Improved capital returns
· Investment portfolio valuations increased by 6.5% on a like-for-like basis (4.9% including sales and purchases) during the period.
· Group's share of property portfolio £919m (31 March 2014: £802m).

Strong financial position
· £100m 4% Convertible Bond issued in June.
· See-through LTV of 33% on a secured basis (31 March 2014: 36%) and 53% overall (31 March 2014: 46%).
· Average maturity of the Group's share of debt of 3.5 years (31 March 2014: 3.9 years) at an average cost of 4.7% (31 March 2014: 4.5%).
· Group's share of cash and undrawn bank facilities of £198m (31 March 2014: £186m).

Operational Highlights:
Development portfolio well placed to deliver good profits over next few years
· Assignment of our purchase contract on 99 Clifton Street generates £14.7m profit.
· At Barts Square, London EC1, 45 residential units exchanged on phase 1 out of 88 units released.
· Lettings progress at The Bower, Old Street, London EC1.
· C-Space, London EC1 and Creechurch Place, London EC3 under construction.

Growing investment portfolio
· 9.2% valuation increase on London offices and 8.8% valuation increase on regional offices.
· Portfolio initial yield of 6.0% growing to 7.3% reversionary.
· Acquisitions of £94m (excluding associated costs) of assets during the half year and £46m of assets sold. On average one new property was acquired every eight days during the period.
· Investment portfolio now comprises 40% London offices, 35% retail, 13% industrial, 11% regional offices, 1% other.

Asset management activity
· Helical's share of gross annualised passing rent from the investment portfolio has increased to £40.9m
· (31 March 2014: £37.7m) with ERV of £57.1m (31 March 2014: £45.6m).
· £2.0m of new lettings in period.
· Like-for-like rents up £1.0m. Increase driven by new lettings and uplifts at lease renewal of £2.3m, offset by losses at lease end or expiry of £1.3m.
· On average, the Group achieved a new letting or lease renewal every two days in the period.
· £0.6m contracted rental increase in Churchgate and Lee House, Manchester.

Commenting on the results, Michael Slade, Chief Executive said:
"Our strategy of developing in Central London for sale or long term investment whilst maintaining a high yielding regional investment portfolio continues to bear fruit. As the UK economy strengthens outside of London and the South East we anticipate continuing to invest in regional assets both for their relatively high yield and the potential to create added value. Our development programme is expected to provide surpluses for the next three years as we complete and let our schemes.

Although the next 12 months are likely to be impacted by the usual hiatus in the run-up to the General Election and the subsequent flurry of activity which follows, as well as the ongoing uncertainty in the Eurozone and the global economy, we remain confident that our balance of assets held for income and capital gains, with strong exposure to London, provides shareholders with the prospect of substantial growth in value for the foreseeable future."

StockMarketWire.com
Helical Bar has pre-let the majority of its Shoreditch-based C Space office building to DLKW Lowe as the creative advertising agency uproots from West London.

DLKW Lowe, which counts Unilever, Post Office and Morrisons as clients, will be taking all but the top floor and half of the third floor of the 62,000 sq ft building and will house all Mullen Lowe Group UK agencies including ad agency DLKW Lowe, activation agency Lowe Open and digital agency Lowe Profero.

Working with architects Buckley Gray Yeoman, the former carpet factory has been transformed by Helical Bar into a contemporary workplace, which retains the character of its industrial past but has been reconfigured to optimise the efficiency of space, maximise natural light and ensure the building reengages with its surroundings.

DLKW Lowe has taken a 15 year lease with a break clause at the 11th year, leaving only 15,300 sq ft to be let which includes a penthouse floor with sizeable terrace. Completion of the building, which is on City Road in London EC1, is due in August of this year.

Helical Bar development director Matthew Bonning-Snook said: "We made a call on the Old Street/Shoreditch area in 2012, with three purchases involving a development pipeline of over 430,000 sq ft. It is now pleasing to see that the type of product we are delivering is right for this market and of course well timed. We are particularly delighted that a leading creative agency like DLKW Lowe is making it their home, relocating from Brompton Cross in South Kensington, in part due to the desire to attract the very best creative talent which this area certainly has in abundance."

StockMarketWire.com
Helical Bar posts an IFRS pre-tax profit of £85.9m for the six months to the end of September - up 100% on last time.

EPRA net asset value per share rose by 13.2% to 436p (31 March 2015: 385p) while EPRA earnings per share were up by 145% to 13.0p (2014: 5.3p).

Total property return increased by 55% to £107.6m (2014: £69.2m), reflecting growing net rents of £20.8m (up 11% from £18.8m last year) and development profits of £18.7m (2014: £15.6m). The gain on sale and revaluation of the investment portfolio contributed £68.1m (2014: £34.8m).

Recurring administration costs were £5.8m (2014: £5.2m) and performance-related awards and associated costs were £8.7m (2014: £7.7m). Net finance costs were £12.1m (2014: £12.4m) with a credit arising from the valuation of the Group's derivative financial instruments of £0.1m (2014: a charge of £1.8m) and a credit arising from valuing the Group's £100m Convertible Bond of £48,000 (2014: £1.6m).

Chief executive Michael Slade said: "Our portfolio is primarily targeted towards London for capital growth and development profits, and the regions for high yielding investment assets and trading profits. London continues to deliver strong returns and the Company is looking to increase its commitment to London by retaining its refurbishment schemes at C-Space, Charterhouse Square and, most notably, The Bower. Our larger balance sheet and our belief that the London office market will show continued growth has encouraged the Company to increase its exposure to locations which we believe will outperform.

"I have been Chief Executive of Helical since 1984 and one of its major shareholders for most of that period. In July 2016, at the next AGM, I will hand over the reins to Gerald Kaye, my fellow director for the past 21 years. I have been asked to take over from Nigel McNair Scott, our current Chairman, when he retires at next year's AGM and I am delighted to be able to continue to be part of the Helical story."