Property group Helical Bar (HLCL) delivered another strong performance in the year to March 2015, with both capital gains and higher rental income helping to boost adjusted net asset value per share by 23 per cent to 385p.
The group has now completed its rotation out of secondary shopping centres and into distribution warehouses, regional offices and out-of-town parks. But around half of the total investment portfolio is in the London office market, which received a 27 per cent valuation uplift to £370m. Of the current office development pipeline of around 1.24m sq ft, nearly a third of this has already been pre-let or pre-sold. Crucially, the estimated rental value - which is the income if all rents were marked to market - grew by over 20.4 per cent to £28.1m, significantly ahead of the passing rent of £9.3m.
Group net rental income grew by 40 per cent to £34.2m, and profits were also boosted by a revaluation uplift on the portfolio of £96.6m, double the previous year. The fall in headline profits was mainly the result of two big sales that boosted the previous year's numbers. However, there was also an increase in net finance costs, including an £8.4m swing on derivative instruments.
Analysts at Stifel are forecasting adjusted net asset value of 413p by March 2016.
| HELICAL BAR (HLCL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 415p | MARKET VALUE: | £490m | |
| TOUCH: | 414-416p | 12-MONTH HIGH: | 420p | LOW: 320p |
| DIVIDEND YIELD: | 1.7% | TRADING PROPERTIES: | £92.6m | |
| PREMIUM TO NAV: | 17% | |||
| INVESTMENT PROP: | £773m* | NET DEBT: | 126% | |
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 218 | -6.3 | -3.6 | 4.90 |
| 2012 | 217 | 7.4 | 6.5 | 5.15 |
| 2013 | 217 | 5.0 | 5.0 | 5.55 |
| 2014 | 292 | 102 | 75.0 | 6.75 |
| 2015 | 353 | 87.4 | 64.6 | 7.25 |
| % change | +21 | -14 | -14 | +7 |
Ex-div: 2 Jul Payment: 31 Jul *Including £72m in joint ventures | ||||
