Helical (HLCL) H2 2025 earnings summary

Executive summary

• Achieved £245 million in asset sales, fully funding the development pipeline and focusing on large-scale, best-in-class office projects and alternative uses in central London.

• Strategic shift towards equity-light structures and joint ventures, notably with Places for London, to enhance shareholder returns and manage risk.

• Major asset sales included 50% interest in The JJ Mack Building (£139.2m), 25 Charterhouse Square (£43.5m), and The Power House (£7m).

• Reduced administrative costs by 25% through office relocation and headcount reduction.

• Planning approvals and forward sales secured for key developments, including 100 New Bridge Street and Southwark PBSA scheme.

Financial highlights

• EPRA Total Accounting Return of 6.3% and EPRA NTA per share of 348p, up 5.1% year-over-year.

• IFRS profit after tax of £27.9 million, driven by gains on sale and revaluation, mainly from 100 New Bridge Street.

• Net debt reduced to £112.8 million and LTV at a historic low of 20.9%.

• Total dividend per share increased to 5.00p (+3.5%), with a proposed final dividend of 3.5p.

• Cash and undrawn facilities at £244.5 million.

Outlook and guidance

• Anticipates over £95 million in future development profits, potentially rising to £135 million with 5% rental growth.

• Four new projects under review with Places for London and additional equity-light transactions being considered.

• Plans to reduce portfolio vacancy, secure pre-leasing for schemes under construction, forward fund Southwark, and obtain debt financing for Paddington.

• Dividend policy tweaked to distribute a proportion of realized earnings and development profits surplus to business requirements, resulting in potentially lumpy but higher total shareholder returns.