"It’s the first time in five or six years we can be really happy with what we’ve done," said Mike Slade, Helical Bar’s (HLCL) chief executive, as he unveiled the first increase in the half-year dividend since 2007. After years of decline, Helical's adjusted net asset value (NAV), which marks trading properties up to market value, rose 1 per cent over the half year to 252p.
That beat expectations. Most analysts had assumed Helical's high-yielding investment portfolio, which it keeps to cover administrative and interest costs as well as dividends, would fall with the market, dragging down NAV. But a spate of lettings and rent increases underpinned a slight valuation increase (up 0.2 per cent, on a like-for-like basis). That vindicates Helical's much-criticised acquisition of the shopping centre in Corby. "The trend was to say everything in retail is bad, but if you buy well you’ll do very well out of retail over time," scoffs Mr Slade. He insists the seller, Land Securities, "left a lot on the table".
Development profits of £4.7m (2011: £1.8m) mainly reflected the sale of a site at Fulham Wharf with planning permission for a Sainsbury’s and 463 homes. The pace of deal flow may now quicken. Helical received planning permission this week for a mixed-use scheme next to Barts Hospital in London, and it's also looking to pre-let an office project in the City’s insurance district.
HELICAL BAR (HLCL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 196p | MARKET VALUE: | £231m | |
| TOUCH: | 196-198p | 12-MONTH HIGH: | 208p | LOW: 162p |
| DIVIDEND YIELD: | 2.6% | TRADING PROP: | £86.8m | |
| DISCOUNT TO NAV: | 10% | |||
| INVESTMENT PROP: | £368m* | NET DEBT: | 104%* | |
| Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2011 | 218 | 4.11 | 3.40 | 1.75 |
| 2012 | 217 | 5.24 | 3.50 | 1.85 |
| % change | - | +27 | +3 | +6 |
Ex-div: 28 Nov Payment: 28 Dec *Including joint ventures | ||||
