Helical (HLCL) H1 2026 earnings summary

Executive summary

• Strategic focus on delivering best-in-class central London office projects, leveraging joint ventures and equity-light structures for enhanced returns, with significant progress on 100 New Bridge Street, Brettenham House, and 10 King William Street, all completing in 2026.

• Robust pipeline supported by partnerships, notably with Places for London, including new offices in Farringdon and PBSA in White City and Southwark.

• Active capital recycling and disciplined balance sheet management, with over £620 million of assets sold in five years.

• Market-defining sale of 100 New Bridge Street to State Street for £333 million, the largest London office sale in 2025, completed a year ahead of schedule.

• Market conditions support the strategy, with a supply-constrained environment and rental growth forecasted at 4-5% per annum for best-in-class space.

Financial highlights

• Profit after tax for the half-year was £1.8 million, down from £4.7 million year-over-year.

• EPRA earnings per share rose to 2.4p (2024: 2.3p); EPRA NTA per share increased to 349p (31 March 2025: 348p).

• Net rental income declined to £7.7 million due to prior asset sales; development income rose to £2.9 million, offset by £1.4 million in costs.

• Portfolio value grew to £583.3 million from £540.4 million at March 2025; net asset value at £422.8 million.

• Interim dividend maintained at 1.50p per share, fully covered by EPRA EPS.

Outlook and guidance

• Targeting total accounting returns in excess of 10%, with profits of £85 million+ from the current pipeline, rising to £140 million with 10% rental growth.

• Focus on finalizing Paddington debt facility, completing 100 New Bridge Street sale, and structuring funding for new opportunities.

• Minimum return of 50% of realized net profits from the 100 New Bridge Street joint venture expected to be returned to shareholders after completion in April 2026.

• All major schemes are fully funded, with further opportunities anticipated through joint ventures.