Already fortified with £62m of first-half gains on the sale of two major London projects, Helical Bar's (HLCL) book value received an additional £45m boost at the full-year mark from revaluation gains and sales within the investment portfolio. In all, adjusted net asset value rose 19 per cent to 313p.
The group has achieved its 75:25 target balance between an income-producing portfolio and development stock, and may over time may shift to an even less risky 80:20 split. "I like the fact we are degearing by crystallising development gains," explained veteran chief executive Mike Slade. He added that larger development projects will almost certainly involve a joint-venture partner putting up a majority stake of the capital. Co-investment in this way means the group receives a 'waterfall' payment, whereby it takes a greater profit share than the original investment, depending on the profitability of the project.
A total of £200m was spent acquiring new assets, with £70m sold. Together with an 8.1 per cent revaluation, the group's total portfolio - including property held in joint ventures - rose from £626m to £802m. This expansion helped keep the loan-to-value ratio steady at 46 per cent.
Analysts at broker Peel Hunt are forecasting adjusted book value in March 2015 of 358p.
| HELICAL BAR (HLCL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 382p | MARKET VALUE: | £451m | |
| TOUCH: | 380-383p | 12-MONTH HIGH: | 392p | LOW: 240p |
| DIVIDEND YIELD: | 1.8% | TRADING PROPERTIES: | £98.2m | |
| PREMIUM TO NAV: | 31% | NET DEBT: | 92% | |
| INVESTMENT PROPERTIES: | £556m* | |||
| Year to 31 Mar | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 228 | 7.9 | 9.1 | 4.75 |
| 2011 | 218 | -6.3 | -3.6 | 4.9 |
| 2012 | 217 | 7.4 | 6.5 | 5.15 |
| 2013 | 217 | 5.0 | 5.0 | 5.55 |
| 2014 | 292 | 102 | 75.0 | 6.75 |
| % change | +35 | +1,940 | +1,400 | +22 |
Ex-div: 2 Jul Payment: 30 Jul *Including £63m in joint ventures | ||||
