Helical H2 Earnings Call Highlights

Key Points

• Helical posted stronger earnings and net asset value, with EPRA profit doubling to GBP 5.5 million and EPRA NTA rising to GBP 3.51 per share. Lower admin costs, higher development profits and reduced finance costs helped offset softer rental income.
• The company announced its largest shareholder return since 2004, totaling GBP 0.164 per share including a final PID and a GBP 17 million capital return split between a B share scheme and share buybacks.
• Helical advanced several major London developments, including the completed sale of 100 New Bridge Street, progress at Southwark, Brettenham House and 10 King William Street, and new financing for Delta Paddington. Management also pointed to strong Central London office demand, especially from AI-related occupiers and a broader “flight to quality.”

Helical LON: HLCL reported a year of operational progress and improved earnings as the London-focused developer advanced several major projects, completed the sale of 100 New Bridge Street and announced a larger return of capital to shareholders.

Chief Executive Matthew Bonning-Snook said the company had delivered on the strategy it set out two years ago, highlighting the forward sale of 100 New Bridge Street to State Street Corporation as “one of the standout transactions of 2025.” Practical completion was reached shortly before the presentation, and the sale completed during the week of the results.

Bonning-Snook said Helical also made progress at Southwark, where it shifted from a more equity-heavy office-led scheme to an equity-light student accommodation-led project. The company exchanged contracts on the forward sale of the affordable housing block to Southwark Borough Council and the forward funding of the adjoining purpose-built student accommodation block with partner Places for London.

“I would stress that we are taking delivery risk and not market or operational risk through our forward funding structures,” Bonning-Snook said.

EPRA Earnings Double as NTA Rises

Chief Financial Officer James Moss said Helical’s EPRA earnings doubled during the year, while its net tangible assets increased. EPRA profit rose to GBP 5.5 million, supported by higher development profits, lower administrative expenses and reduced net finance costs as more of the portfolio shifted into development assets where finance costs are capitalized.

Moss said development profits increased to GBP 4.9 million, while net rental income fell to GBP 15.4 million following the prior year’s GBP 245 million sale of investment property. Administrative expenses declined by more than GBP 2 million to GBP 8.8 million.

The company reported a net valuation gain of GBP 2.7 million, partly offset by a GBP 2.3 million decline in the fair value of interest rate swaps. IFRS profit after tax was GBP 5.7 million. EPRA NTA increased from GBP 3.48 to GBP 3.51 per share after earnings and development revaluation gains, partly offset by dividend payments.

Helical’s loan-to-value ratio rose to 36% at year-end due to the acquisition of Delta Paddington and capital expenditure across the portfolio. Moss said that after the sale of 100 New Bridge Street and the proposed capital return, the ratio falls to below 21%.

Shareholder Return Reaches GBP 0.164 Per Share

Helical proposed a final property income distribution, or PID, of GBP 0.01 per share, taking the total PID for the year to GBP 0.025 per share, up from GBP 0.015 a year earlier. Following the completion of the 100 New Bridge Street sale, the company also proposed returning GBP 17 million, or GBP 0.139 per share, to shareholders.

Moss said the board weighed gearing, balance sheet strength and the need to retain funds for new opportunities when determining the size of the return. The GBP 17 million will be split between a GBP 12 million capital return through a B share scheme and GBP 5 million of share buybacks.

Combined with the PID, the proposed return for the year totals GBP 0.164 per share, which Bonning-Snook described as Helical’s largest return since 2004.

Development Pipeline Advances Across London

Chief Investment Officer Rob Sims said Helical had made progress across a pipeline of nearly GBP 1 billion of schemes under construction. At 100 New Bridge Street, Sims said the redevelopment was completed within the budget agreed when the joint venture with Orion was formed. The project unlocked 30,000 square feet of additional net internal area, which he said equated to more than GBP 50 million in value.

The transaction achieved a headline price of GBP 333 million, equivalent to GBP 2,000 per square foot on a topped-up basis, Sims said.

At Brettenham House, redevelopment work is at an advanced stage, with completion expected in August. Sims said Helical has received encouraging interest in the building, including negotiations with one party for a number of floors at the top of the building. The project is being delivered under an equity-light structure and is projected to generate a two-times return on Helical’s GBP 12.5 million investment, alongside a GBP 2.5 million development management fee already received.

At 10 King William Street, a 142,000-square-foot office development in the City of London, Sims said construction remains on track for practical completion in December. He said there had been “almost daily viewings” in recent weeks, with terms issued to parties accounting for all floors.

At Southwark, the joint venture exchanged contracts on a forward funding agreement for the 429-unit PBSA building, valuing it at more than GBP 200 million on completion. The affordable housing component will deliver 44 homes to Southwark London Borough Council. Sims said Helical is targeting more than a three-times return on its investment, with the first tranche of profit, Helical’s share being GBP 10.2 million, expected upon receipt of Gateway Two approval later this year.

Delta Paddington, a 240,000-square-foot office development above the eastern canalside entrance to Paddington Station, also moved forward. The joint venture completed the GBP 55 million site acquisition and signed a financing package. Moss said PIMCO was selected to provide a GBP 220 million development facility, with a fixed rate of 3.6% and margin step-downs tied to letting and development milestones.

Office Demand Supported by AI and Flight to Quality

Bonning-Snook said the Central London office market continues to benefit from a “flight to quality,” with occupiers taking more space rather than less. He cited net absorption of 3.8 million square feet, the highest level in six years, and said active demand is 57% above the long-term average.

Artificial intelligence companies accounted for about 20% of Central London take-up in the first quarter of 2026, according to Bonning-Snook, who cited Cushman & Wakefield research suggesting AI demand could continue to represent up to 20% of annual take-up over the next three years.

Helical is seeing that demand at The Bower, where Bonning-Snook said 30,000 square feet of new lettings had been achieved, a further 20,000 square feet was under offer and regears covering 50,000 square feet were in legals. Sims said the completed and under-offer lettings would reduce vacancy across The Bower to 3.4% and had added GBP 4 million to contracted rent.

At The Loom, Sims said vacancy remains elevated but that tenant interest has improved, with one new letting completed and two further units under offer since the year-end. Existing leases covering 13,000 square feet were renewed at a premium to estimated rental value.

Management Targets Disciplined Growth

Bonning-Snook said Helical remains focused on maintaining balance sheet strength while pursuing development opportunities, particularly through its joint venture with Places for London. The company recently received unanimous planning approval for a 55,000-square-foot office scheme at 63 Charterhouse Street, opposite the new London Museum, and expects to conclude the site acquisition shortly.

During the question-and-answer session, Moss said Helical still wants to keep loan-to-value within 35%, with group-level leverage kept low even where debt is used at joint venture or asset level. He said the company expects LTV to move toward roughly 30% in a year, before valuation gains.

Bonning-Snook said future capital returns are likely to be uneven, depending on lettings and asset recycling. He said Helical is focusing on equity-light structures because there is not “a huge amount of distress in the market” and partnering with asset owners can provide a better route into development opportunities.

“We can deliver substantial profits over the coming years,” Bonning-Snook said. “We remain absolutely focused on capital allocation and delivering for our shareholders.”

About Helical LON: HLCL

Helical is a central London development focused real estate business listed on the London Stock Exchange. We create design-led, sustainable and inspiring spaces. We have a dynamic and experienced team with a broad skill set able to deliver optimal solutions and enhanced value through innovative thinking and in depth market knowledge. Our extensive track record in joint venture structuring and working in partnership underpins our reputation as one of London's leading development specialists.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.