Helical (HLCL) outpeformed peers and the market by delivering an increase in net asset value (NAV) for the six months to September compared with the March 2016 year-end, and the shares rose a tenth on results day. Adjusted NAV edged up 3 per cent to 471p a share, although headline profit was affected by a valuation mark down in its joint ventures.
A revaluation of the investment portfolio, growing net rental income and net gains on disposals were the principle pillars of support behind the higher valuation. Net rental income rose by 20 per cent to £23.9m as more development projects were completed and started generating income. This steady crystallisation of reversionary potential is set to continue, and while passing rents (rent collected at any one particular time) stood at £39m, the estimated rental value (that's if all rents were marked to market) is an impressive £78m.
The company announced late in November that a third of the second phase of its Old Street property, the Bower, has been pre-let, which effectively derisks the group's largest ever development.
Analysts at Peel Hunt are forecasting adjusted NAV at the March 2017 year-end of 434.5p (from 461p a year earlier).
| HELICAL (HLCL) | ||||
|---|---|---|---|---|
| ORD PRICE: | 284.5p | MARKET VALUE: | £336m | |
| TOUCH: | 284.5-286p | 12-MONTH HIGH: | 476p | LOW: 228p |
| DIVIDEND YIELD: | 2.9% | TRADING PROPERTIES: | £88m | |
| DISCOUNT TO NAV: | 36% | NET DEBT: | 124% | |
| INVESTMENT PROPERTIES: | £1.06bn* | |||
| Half-year to 30 Sep | Net asset value (p) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 400 | 85.9 | 66.1 | 2.3 |
| 2016 | 445 | 31.1 | 27.8 | 2.4 |
| % change | +11 | -64 | -58 | +4 |
Ex-div: 1 Dec Payment: 30 Dec *Includes joint ventures | ||||
