HEL HELICAL AL HAL HALF Y YEA EAR RESUL R RESULTS S to o 30 - - PowerPoint PPT Presentation

1 Helical Half Year Results Helical Half Year Results

HEL HELICAL AL

HAL HALF Y YEA EAR RESUL R RESULTS S

to

• 30 Se

Septemb mber 2 r 2016

2 Helical Half Year Results Helical Half Year Results

AGEND ENDA On One Hi High ghligh ghts ts

Ger Geral ald K Kaye

Tw Two Fin inan ancials ials

Tim M Murph rphy

Thre ree Portf

• rtfol
• lio

Matthe hew B Bonni nning ng-Snook an and Duncan an Wal alker er

Fo Four Ou Outl tlook

• ok

Ger Geral ald K Kaye

Five ve Q Q & A A

3 Helical Half Year Results Helical Half Year Results

Highlight ighlights

Ger Gerald ald K Kaye

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RESUL ESULTS HI S HIGHL HLIGHT HTS S

Pr Profit it Before Tax ax £ £31. 1.1m 1m

(201 (2015 - £85 85.9 .9m)

EPR PRA NAV P Per S Shar are 471p 1p

In Increas ease o e of 1 15p (3.3% 3.3%) ) fr from 4 456p 6p (a (adj djusted) d)

Div ivide idend P d Per S Shar are 2.4p p

In Increas eased ed 4. 4.3% % from

• m 2.3p

2.3p

Net R t Renta tal I Income

• me

£2 £24. 4.6m – up up 18.3% 8.3%

Valuation G Gain

£28.6 28.6m (+4 (+4.0% 0%)

Loan an To V Valu alue

53% 3% (pr (pro-forma 4 a 49%) %)

C Space

5 Helical Half Year Results Helical Half Year Results

STRA TRATE TEGY

• Continued focus - London offices, Manchester offices, Logistics
• Value enhancement by:

− letting vacant space − asset management opportunities

• Bring forward new opportunities e.g. King Street, Hammersmith and Drury Lane
• Manage LTV to between 40 – 50%

The Bower

6 Helical Half Year Results Helical Half Year Results

OP OPER ERATIONAL ONAL HI HIGHL HLIGHT HTS S – LETTING NGS S TO D O DATE E

Lon

• ndon
• n

The L Loom

• om

24,724 sq ft

Lon

• ndon
• n O

Offi fice: 102 02,246 sq sq ft

Lon

• ndon
• n

C S Spac pace 15,387 sq ft

Burton-on-Trent Power Road Studios Cortonwood

Regio ional al Offic ice: 26,129 sq sq ft Logist stics: s: 93,364 sq sq ft Retail: ail: 87,46 ,461 sq sq ft

TOTAL L LETTI TTINGS 309 09,200 00 SQ FT FT

95 95,66 669 9 sq sq ft ft pr pre 23 23rd

rd June

une 21 213,5 3,531 31 sq sq ft ft pos post 23 t 23rd

rd June

une 96,754 SQ FT LONDON POST 23rd JUNE

Manchester, Churchgate and Lee House

Lon

• ndon
• n

The T e Tower er, The B e Bower er 59,000 sq ft

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OP OPER ERATIONAL ONAL HI HIGHL HLIGHT HTS S – SAL ALES ES TO D O DATE

TOTAL L SALE LES £1 £145m

£18.6 8.6m pr pre 23 23rd

rd June

une £126 26.4 .4m pos post 23 t 23rd

rd June

une

Lon

• ndon
• n O

Offi fice: £34.5 4.5m

One King Street, Hammersmith

Regio ional O al Offic ice: £ £7.0 .0m Logist stics: s: £ £53.8m Retail: ail: £ £49 49.4m .4m

Stevenage Huddersfield Cheadle

8 Helical Half Year Results Helical Half Year Results

London Office, £611.2m, 49.3% London - Residential, £60.0m, 4.8% Regional - Industrial, £210.5m, 17.0% Regional Offices, £103.5m 8.4% Regional Retail, £142.6m 11.5% Other, £8.7m 0.7% Retirement Villages, £103.5m, 8.3% London Office, £673.3m, 53.9% London - Residential, £67.8m, 5.4% Regional - Industrial, £205.5m, 16.5% Regional Offices, £102.2m, 8.2% Regional Retail, £96.9m, 7.7% Other, £6.0m, 0.5% Retirement Villages, £97.8m, 7.8%

POR ORTFOL OLIO AL O ALLOC OCATION ON

TOTAL V VAL ALUE E MAR ARCH 2 2016: £1 £1.24bn TOTAL V VAL ALUE E SEP EPT 2016: £1 £1.25bn

+4.6 4.6%

• 3.8

.8%

• 0.

0.2%

• 0.5%

+0.6 .6%

• 0.5%

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GROWING NG RENT ENTAL AL S STREAM EAM INT NTO T O THE F HE FUT UTUR URE

*Post Half Year Sales included

Regional Offices Retail Industrial London Offices Regional London Offices The Bower Phase 1 London Offices The Bower Phase 1 London Offices London Offices London Offices The Bower Phase 2 The Bower Phase 2 £0 £10 £20 £30 £40 £50 £60 £70 £80 Passing Rent as at Nov 2016 Contracted Rent H2 2016/2017 Contracted Rent H1 2017/2018 Contracted Rent H2 2017/2018 2018/2019 Reversionary Rent Unlet Space

Millions ERV = V = £ £ 72.9 .9 m m

Passing Rent as at 24 Nov 2016

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201 2016 201 2017 201 2018 201 2015

Sq ft

LOND ONDON P ON PROG OGRAM AMME E COM OMPLETION ON DATES ES

C-SPACE THE WAREHOUSE THE STUDIO THE LOOM ONE CREECHURCH PLACE 25 CHARTERHOUSE SQUARE POWER ROAD STUDIOS 90 BARTHOLOMEW CLOSE THE TOWER ONE BARTHOLOMEW CLOSE

50,000 100,000 150,000 200,000 250,000 300,000 Oct Nov Nov Sept Nov Mar Aug Sept June Aug

Space to Let – Forward Funded Space to Let Let Space Let Since March 2016

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Growth 21.6% 7.4% 12.7% 4.3% Growth 18.6% 23.0% 18.4% 3.3%

STRONG ONG T TRACK R K REC ECOR ORD OF OF VAL ALUE C UE CREA EATION ON

Final Interim

264p 313p 385p 456p 471p 100 200 300 400 500 600 03/13 03/14 03/15 03/16 09/16

pence

EPRA net assets per share (pence)

1.85p 2.00p 2.10p 2.30p 2.40p 5.55p 6.75p 7.25p 8.17p 2 4 6 8 10 2013 2014 2015 2016 2017

pence

Dividend per ordinary share (pence)

12 Helical Half Year Results Helical Half Year Results

MAR ARKE KET C COM OMMENT ENT

• Market slowed down pre-Brexit and during post-Brexit uncertainty
• Investment volumes down in Q2 and Q3. Anticipated to pick up in Q4
• Take up in City and Tech Belt below last three years and equivalent to 2012
• Total occupational demand above average. Decisions taking longer/delayed
• Availability increasing but not over supply

– start of some schemes delayed

• Rents holding firm – rent free periods increasing by a few months in some cases

“London wa was the g greatest ci city in the w world b before 2 23rd

rd

June an and s still is ill is af after 2 23rd

rd Jun

une.”

Blake H Hut utchi hins nson President and d CEO Oxf xford Prope perties 01/ 1/11/ 11/2016 16

“We a are co committed to t the UK a and exci cited to co continue

• ur

ur inv nvestment nt in o

• ur new K

King’s Cross campus us.”

Sund undar Pic ichai Chie ief E Executiv ive at G Google le 16 16/11/ 11/2016 16

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SUM SUMMAR ARY

• Lettings – de-risking
• Sales
• Continued focus
• Recycle capital
• Manage LTV
• Upside potential

One Creechurch Place

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Fina Financia ncials ls

Tim M Murph rphy

15 Helical Half Year Results Helical Half Year Results

SEE EE-THR HROUG UGH I H INCOME STATEM EMEN ENT Sep 2 2014 014 Sept 2015 015 Sept pt 2016 016 Net rental income £18.8m £20.8m £24.6m +18% Development profits / (losses) £15.6m £18.7m (£2.6m) Gain on sale and revaluation of investment properties £34.8m £68.1m £25.8m IFRS profit before tax £42.9m £85.9m £31.1m EPRA earnings £6.5m £14.9m £5.0m EPRA earnings per share 5.3p 13.0p 4.4p Interim dividend per share 2.1p 2.3p 2.4p +4.3%

Notes: 1 All figures include share of joint ventures 2 Ratio of secured debt to total property portfolio 3 Adjusted for £91.5m of sales since the half year end

SEE EE-THROUGH BAL BALANC ANCE SHEET EET Mar 2015 015 Mar 2016 016 Sep Sept 2016 016 Pr Pro-Forma ma3 Total portfolio at fair value £1,021m £1,240m £1,250m £1,160m EPRA net asset value per share 385p 456p 471p +3.3% 471p Net Debt £532m £682m £664m £569m Loan to value ratio

• Secured2
• Overall

34% 52% 40% 55% 39% 53% 34% 49%

HEAD HEADLINE NUM NE NUMBER ERS

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INC NCOM OME E STATEM EMENT ENT

• Net rents have increased by 18%
• Development profits of £4m were offset by stock

provisions of £6.6m

• EPRA earnings of £5.0m equate to 4.4p per share
• Revaluation gains of £28.6m, primarily in London, were offset by losses on sale of £2.8m

£24.6m £5.0m £2.6m £5.9m £11.7m £0.6m £25.8m £0.3m £31.1m 5 10 15 20 25 30 35 Net Rents Development losses Administration Net finance costs Other EPRA earnings Net gain on sale and revaluation Other IFRS profit before tax

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EPRA PRA NE NET ASSE SETS S PER ER SHAR SHARE

• Adjustment to opening NAV per share from full

adoption of IAS 40 – Investment Property

• Development surpluses realised relate mainly to Cortonwood Retail Park and Retirement Villages

460.8p 455.7p 5.1p 4.4p 21.7p 4.9p 4.8p 0.7p 471.4p 375 400 425 450 475 500 31 March 2016 Lease incentives Adjusted 31 March 2016 EPRA EPS Investment gains Development surpluses realised Other Dividends 30 Sept 2016 p

18 Helical Half Year Results Helical Half Year Results

Mar arch 2016 016 £m £m Sept 2016 016 £m £m

Total facilities £881.7m £897.6m Gross debt £775.1m £742.2m Unutilised facilities £106.5m £155.4m Percentage of unsecured debt 23% 24% Uncharged properties £153m £93m Gearing: LTV ratio 55% 53% NAV 456p 471p

DEB EBT SUM SUMMAR ARY

50 100 150 200 250 300 350 400 450 500 < 1 1 - 2 2 - 3 3 - 4 4 - 5 5 - 6 6 - 10

£m Years

Loan Maturity

Unsecured Bonds Secured

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Mar arch 2016 016 Sept 2016 016

Average interest rate 4.16% 4.33% Average interest rate (fully utilised) 3.75% 3.99% Proportion of drawn down facilities at fixed rate or hedged 82% 88% Average maturity of borrowings 4.5 yrs 4.0 yrs

Mar arch 2016 016 £m £m Sept 2016 016 £m £m

Secured bank loans 595.1 562.2 Unsecured bonds (nominal value) 180.0 180.0 Total facilities drawn 775.1 742.2

DEBT F FACILIT ILITIE IES

100 200 300 400 500 600 700 800 900 1,000 Mar 17 Mar 18 Mar 19 Mar 20 Mar 21

Interest Rate Protection (fixed rates)

Other Fixed Rate Borrowings Convertible Bond Retail Bond

£m

20 Helical Half Year Results Helical Half Year Results

March 2 2016 016 £m £m Sept 2016 016 £m £m

Cash from operations 38.5 (7.4) Acquisitions (377.1)

• Capex

(28.0) (26.0) Joint ventures 94.1 0.7 Disposal proceeds 121.8 54.9 Dividends paid (14.4) (0.8) Other cash flow movements (0.4) (0.3) Increase/reduction in net borrowing 138.1 (42.0) Shares purchased (18.9) (0.9) Net increase in cash (46.3) (21.8) Cash at start of period 121.0 74.7 Cas Cash at e t end of p peri riod 74.7 52.9

NE NET C CASH F SH FLOW MOVEM VEMENT ENTS

10 20 30 40 50 60 70 80 2017 2018 2019

£m

Forecast Capital Expenditure

Investment Residential/Retirement Villages

21 Helical Half Year Results Helical Half Year Results

LOAN AN TO V O VAL ALUE UE

• Current LTV 53% (proforma 49%)
• Capex programme will increase LTV
• Will seek to manage LTV to range

between 40% - 50%

45% 46% 52% 55% 53% 49%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% £0 £200 £400 £600 £800 £1,000 £1,200 £1,400 2013 2014 2015 2016 H1 2017 H1 2017 2017 2018

Value of trading and development stock Value of Investment portfolio Loan to value including unsecured debt

Range

Proforma

£m

22 Helical Half Year Results Helical Half Year Results

• Growing income stream as the reversion on the investment portfolio is captured
• £10m+ of contracted rents start to flow by June 2017
• Finance costs contained with over 88% of debt hedged for almost 4 years
• Debt maturity of 4.0 years with no secured loans repayable before November

2019

• LTV will be managed between 40% and 50%

Power Road Studios

SUM SUMMAR ARY OF OF KEY KEY FINANC NANCIAL ALS

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Portf

• rtfol
• lio

Matth tthew Bonni nning ng-Sn Snook

• ok | D

Duncan W Walker

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C SP SPACE, EC E, EC1

• 62,000 sq ft offices – fully let
• 75% pre let to MullenLowe. 25% let to NeuLion
• Contracted rents £3.64m pa

25 Helical Half Year Results Helical Half Year Results

THE HE WARE REHO HOUSE USE & T THE HE STUD UDIO, T THE HE BOW OWER, EC EC1

Phase 1 se 1

• The Studio – 18,363 sq ft fully let - £980,000 (one office tenant - £45psf)
• The Warehouse – 121,923 sq ft fully let - £8,050,000 (five office tenants £50.25 - £68psf)

26 Helical Half Year Results Helical Half Year Results

THE HE TOWER ER, T , THE HE BO BOWE WER, EC , EC1

Ph Phase 2 2

• 171,158 sq ft offices
• Levels 1 – 6, 59,000 sq ft pre let to WeWork
• 17 floors (9,500 – 11,300 sq ft floors)
• 7,200 sq ft over two ground floor retail/restaurant units
• Under construction
• Completion due Q2 2018

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ONE ONE CREEC EECHUR HURCH P H PLACE, EC E, EC3

• 272,555 sq ft offices (17 floors)
• Completed November 2016
• City of London F/H. Funded development

with HOOPP. Helical 10% ownership

• Assuming market incentives and letting

within 12 months, profit share expectation: £60 psf overall - £18m £65 psf overall - £23m £70 psf overall - £28m

28 Helical Half Year Results Helical Half Year Results

Ph Phase 2 2

• 78,627 sq ft residential (92 apartments), 11,817 sq ft retail.

Demolition commences November 2016

• Gross Development Value (excluding retail) £136m at an

average of £1,766 psf

• Completion of construction in early 2019

BA BARTS SQU SQUAR ARE, EC E, EC1

Ph Phase 1 1

• 123,579 sq ft residential (144 apartments), 3,101 sq ft retail.

Under construction

• Sales:

– 144 units launched with total value of £195m – Contracted sales: 108 units exchanged – Average sales price to date £1,578 psf

• Residents’ concierge, bar and screening room. 26 car

spaces and 176 bicycle spaces

• Building works to complete on sectional basis with the

final building to be completed by Q3 2017

29 Helical Half Year Results Helical Half Year Results

90 0 BAR ARTHOL HOLOM OMEW EW C CLOSE, OSE, EC EC1

• 23,508 sq ft offices over floors and

5,673 sq ft restaurant

• Completion September 2017
• Retained facades

30 Helical Half Year Results Helical Half Year Results

ONE B ONE BAR ARTHOL HOLOM OMEW EW CLOSE, EC OSE, EC1

• 213,858 sq ft offices
• On site, due to complete August 2018
• Funding Partners - Ashby Capital LLP
• Baupost/Helical to receive profit share based
• n fixed yield, variable on rent

31 Helical Half Year Results Helical Half Year Results

25 25 CHAR HARTER ERHOUSE SQU HOUSE SQUAR ARE, E, EC EC1

• 38,500 sq ft offices, 5,100 sq ft retail/restaurant
• Under construction, due for completion – Mar 2017
• Profit share – Helical 15% priority return, thereafter

50/50 share with Charterhouse

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DRUR URY LANE, W ANE, WC2 2

• Conditional purchase contract (subject to

planning and viability)

• Resolution to grant planning, pending

completion of S.106

• 68 apartments, 16,000 sq ft retail. GDV £157m
• Alternative office scheme (70,000 sq ft) plus

retail now being pursued

33 Helical Half Year Results Helical Half Year Results

HAM HAMMER ERSM SMITH T H TOWN HAL N HALL, , W6

• Dev Agreement with H&F BC in a 50/50 JV with

Grainger

• S.73 planning amendment now consented
• 196 residential units, cinema, restaurants and council
• ffice. GDV £205m
• Phase 1 (152 units & office) out to tender with contractors

34 Helical Half Year Results Helical Half Year Results

THE HE LOOM OOM, E1 , E1

• 110,000 sq ft offices
• Refurbishment complete September 2016
• Average rent at purchase £18 psf
• New lettings £50+ psf
• 14,000 sq ft let since refurbishment completed,

6,000 sq ft under offer, 23,000 sq ft vacant

• Highly reversionary

35 Helical Half Year Results Helical Half Year Results

THE HE SHE SHEPHE HERD RDS B S BUI UILDING, W14

• 150,100 sq ft offices, fully let
• Contracted rent £6.3m
• Rent review agreed at £54 psf
• Average rents now £44 psf+
• Continued strong occupational demand

36 Helical Half Year Results Helical Half Year Results

ONE ONE KING NG STREET EET, W , W6

• Acquired February 2012 for £14.1m
• 3 floors refurbished and 1 floor added
• Office rents at acquisition £24.50 psf,

£52.50 psf at sale

• Capex of £4.6m
• Sold for £34.5m (post half year) at

March 2016 book value. £17.8m profit, 37% IRR

37 Helical Half Year Results Helical Half Year Results

POWER ER R ROAD AD STUD UDIOS, OS, W4

• Acquired December 2015 for £34.2m. 4.4% NIY
• 62,000 sq ft multi let office on 2 acre site
• Average rents at acquisition £24.50psf
• New lettings at £40 psf
• Planning application soon to be submitted for

45,000 sq ft of extra space

• 16,000 sq ft being refurbished
• Optionality to add new space

Mas aster P Plan an

38 Helical Half Year Results Helical Half Year Results

THE HE REG EGIONS: L ONS: LOG OGISTICS

• Strong occupational demand
• Strong cash on cash returns
• Little obsolescence
• 10 properties sold (£46.6m) at an 8.3%

premium to March 2016 fair value

Po Portb rtbury ry, B Bri risto tol

39 Helical Half Year Results Helical Half Year Results

THE HE REG EGIONS: OF ONS: OFFICES ES

• Focus on Manchester. Good

fundamentals

• Provide high quality, economic space to

a “London” standard

• 23,000 sq ft let at Churchgate House

since March with a further 12,000 sq ft under offer

• Booth Street and Dale House

refurbishments progressing

Manches ester er, Chur hurchg hgate

40 Helical Half Year Results Helical Half Year Results

THE HE REG EGIONS: R ONS: RET ETAI AIL

• £49.2m of retail warehousing sold since March 2016
• Continued retail sales in next 6 months likely

Car ardiff, The Hay ayes

41 Helical Half Year Results Helical Half Year Results

RETIREMENT NT V VILLAGES

• Dramatic improvement in performance post

substantial reorganisation. Overheads reduced by 86%

• Sales rate tripled, prices increased
• 56 units sold since March 2016: £23m
• Care home land sold at Liphook £2.5m
• Substantial profit to come over 4 years

Durrants V Villa illage, Fay aygat ate Millb illbrook V Villa illage, E Exeter

42 Helical Half Year Results Helical Half Year Results

RETIREMENT NT V VILLAGES

Durra rrants ts Villa illage, Fay aygat ate

Asse sset No.

• .

Units ts No.

• .

Built ilt No.

• .

Sol Sold No.

• .

Reserved Sta tatu tus Antic icip ipat ated Co Comple letio ion Pro rofit t to to C Come Liphook 191 151 151 7 Phases 1-3 complete. Phase 4, 40 cottages underway 2018 £6.1m Faygate 173 105 86 13 Phase 3 under construction 2019 £6.4m Exeter 164 81 44 18 Construction ongoing 2018 £4.9m Great Alne 164 6 Construction started. Delivery of first units January 2017. Sales launched 2020 £4.7m TO TOTA TAL 692 692 337 37 281 44 44 £22.1m

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Outl tlook

• ok

Ger Gerald ald K Kaye

@helicalplc

44 Helical Half Year Results Helical Half Year Results

Q&A Q&A

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Appe ppendix ndix

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Prope

• perty

rty Par artner er HB HB Sh Share Sta Statu tus Com

• mpl

pleti tion

• n

Poten ential al Helic lical P l Profit it to C

• Com
• me

The Bower, Old Street London EC1 100% Phase 1 – Completed Completed £20m 0m Phase 2 – Under construction Q2 2018 25 Charterhouse Square London EC1 100% Under construction Q1 2017 £6 £6m Barts Square London EC1 Baupost 43.8% Phase 1 – Under construction Phase 1 – Q2 2017 £10m 0m Phase 3 – Planning consent Phase 3 – Q1 2019 One Bartholomew Close London EC1 Ashby Capital Profit Scheme Under construction Q3 2018 £5m - £10m 0m One Creechurch Place London EC3 HOOPP 10% + profit share Space to let Completed £20m 0m King Street, Hammersmith London W6 Grainger 50% Planning consent Phase 1 - Q4 2019 £15m Phase 2 – Q4 2021 Drury Lane and Dryden Street Covent Garden WC2 Savills Conditional Purchase contract Resolution to grant planning obtained Q2 2019 £15m Investm tment t Portf rtfolio

Sol Sold/3rd

Party rty Fund unding ng Fut utur ure Dev evel elopmen ent

Residenti ntial

LONDON DEVELOPMENT SCHEME REVIEW

47 Helical Half Year Results Helical Half Year Results

Helical Bar plc

% of

• f Portf
• rtfol
• lio
• (HB S

Share) e) Valuation Chan ange ge EP EPRA Toppe pped U d Up p Net et In Initial Yield Revers rsion

• nary

ry Yield

London Offices 61.5% 5.3% 3.3% 5.7% Retail 8.4%

• 3.7%

6.2% 6.7% Logistics 19.5% 0.9% 7.1% 7.1% Regional Offices 9.5% 2.7% 6.3% 7.5% Other 1.1%

• TOTA

TAL 100% 00% 3.0 .0% 4.6% 6% 6. 6.2% 2%

Note: Valuation movements include Barts Square (investment element) Valuation increase of 3.0% in half year to September, including capex, sales and purchase for assets held as investments

INVESTMENT PORTFOLIO – KEY STATISTICS

48 Helical Half Year Results Helical Half Year Results

Helical Bar plc

Tota

• tal P

Portf

• rtfol
• lio

Mar ar 12 12 Mar 13 13 Mar 14 14 Mar 15 15 Mar 16 16 Se Sept 1 pt 16 Cha Chang nge since M e Mar ar 16 London 26.3% 27.9% 34.2% 41.6% 54.1% 59.3% 5.2% Regions 73.7% 72.1% 65.8% 58.4% 45.9% 40.7%

• 5.2%

TOTA TAL £57 572.7m £6 £626.4m 4m £801 801.7m £1.02bn 2bn £1 £1.24b 4bn £1.25 .25bn bn

HELICAL LONDON EXPOSURE – CHANGES OVER TIME (FAIR VALUE)

0% 10% 20% 30% 40% 50% 60% 70% 80% Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 London Regions Sept-16

49 Helical Half Year Results Helical Half Year Results Convertible Bond Issue Retail Bond Issue

HELICAL'S PORTFOLIO – CHANGES TO FAIR VALUE

Millio illions

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PRO PROPE PERTY TY POR ORTFOL OLIO O – HEL HELICAL AL’S ’S SHAR SHARE

Fair V ir Valu lue % V % Value ue

London Offices £673.3m 53.9% London Residential £67.8m 5.4% Regional Offices £102.2m 8.2% Logistics £205.5m 16.5% Retail £96.9m 7.7% Retirement Villages £97.8m 7.8% Land £6.0m 0.5% TOTA TAL £1. 1.25bn bn 100% 00%

51 Helical Half Year Results Helical Half Year Results

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INVES NVESTMENT ENT P POR ORTFOL OLIO

Cap apital al V Val alue e psf sf £ Vac acan ancy R Rat ate (f (floor a

• or area)

) % WAULT LT Year ears London Offices − Completed − Being redeveloped/refurbished − Held for future development/refurbishment 868 575 621 9.5 n/a 7.4 6.7

• 0.1

TOTAL LONDON 763 9.3 6.8 Regional Offices Regional Logistics Regional Retail 204 57 239 10.9 3.5

• 5.5

4.7 4.9 TOTAL REGIONAL 91 4.0 5.0 TOTA TAL 197 97 4. 4.6 5. 5.8 Note: Vacancy rates exclude assets held vacant for refurbishment / redevelopment

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INVES NVESTMENT ENT POR ORTFOL OLIO: L O: LEA EASE SE EX EXPIRIES ES

Lease se Ex Expir irie ies s and T Tenant B t Break Option ions 201 017 201 018 201 019 2020 2021

Percentage of Rent Roll 8.5% 11.8% 14.4% 8.7% 6.9% Number of Leases 72 109 73 41 21 Average Rent per Lease £61,700 £56,500 £102,800 £110,300 £171,000

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ASSE SET M MANA ANAGEM EMENT ENT OVER VERVI VIEW EW MAR ARCH 20 H 2016 16 T TO O SEP SEPTEM EMBER ER 20 2016 16

Re Rent

Rent lost at break/expiry

• £1.0m

New lettings and uplifts at lease renewal £1.7m Rent reviews £0.4m Net et I Increa ease £1. 1.1m 1m

54 Helical Half Year Results Helical Half Year Results

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TOP OP T TENANT ENANTS

Top 10 tenants account for 31.3% of the rent roll Ra Rank nk Ten enan ant Ten enan ant Indu dustry try Re Rent (Helic lical) l) % Re Rent Ro Roll 1

Endemol UK Limited Media £4.0m 7.5%

2

MullenLowe Limited Media Marketing Communications £2.6m 4.9%

3

Gopivotal (UK) Limited Technology £2.0m 3.8%

4

Farfetch UK Limited Online Retail £1.9m 3.5%

5

Sainsbury's Supermarkets Limited Food Retail £1.2m 2.3%

6

CBS Interactive Limited Media £1.0m 2.0%

7

DSG Retail Limited Retail £1.0m 2.0%

8

Allegis Group Limited Recruitment £1.0m 1.9%

9

Economic Solutions Limited Employment and Skills Training £1.0m 1.8%

10

Stripe Payments UK Limited Technology £0.8m 1.6%

TOTA TAL £16 16.5m 31 31.3%

55 Helical Half Year Results

• There has been a steady churn of transactions

following the referendum result, with 34 deals happening in October

• However, the average size of the transactions

has gradually been decreasing

• October saw 188,608 sq ft going under-offer,

which is 21% down on the annual average amount

• Yet, total demand remains above average at

10.2m sq ft for requirements for either City or Central London locations

CITY AND AND TEC ECH H BEL ELT T TAKE AKE-UP UP

SO SOURC URCE: E: SAVILLS LLS – 31 O OCT CT 2016

Sq ft 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Ci City ty ta take-up ( p (sq f q ft) Q1 Q2 Q3 Q4 LT Avg

• 1,000,000

2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 9,000,000 10,000,000 Jan-93 Jul-93 Jan-94 Jul-94 Jan-95 Jul-95 Jan-96 Jul-96 Jan-97 Jul-97 Jan-98 Jul-98 Jan-99 Jul-99 Jan-00 Jul-00 Jan-01 Jul-01 Jan-02 Jul-02 Jan-03 Jul-03 Jan-04 Jul-04 Jan-05 Jul-05 Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16

Rolling 12 month total take-up LT Average

56 Helical Half Year Results

• The City and Tech Belt vacancy rate remains low,

but has risen to 5.6% at the end of October 2016

• The supply/demand balance has risen to 15, and

remains well below the 20+ level than is normally associated with rental falls

• 2017, 2018 and 2019 are expected to see above

average levels of development and refurbishment completions, but 28% of the 2017-2020 pipeline is already pre-let

• Furthermore, we still expect some of the schemes

anticipated for 2019 and beyond will be delayed and pushed back

10 20 30 40 50 60

Jan-05 Aug-05 Mar-06 Oct-06 May-07 Dec-07 Jul-08 Feb-09 Sep-09 Apr-10 Nov-10 Jun-11 Jan-12 Aug-12 Mar-13 Oct-13 May-14 Dec-14 Jul-15 Feb-16 Sep-16

Mont nths of s sup upply

City ty o

• f London m

mark arket t bal alan ance (Su Supply ly/12m r rollin

• lling take-up)

p)

CITY AND AND TEC ECH H BEL ELT SUP SUPPLY/AVAI AILAB ABILITY

SO SOURC URCE: E: SAVILLS LLS – 31 O OCT CT 2016

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 2 4 6 8 10 12 14 16 Vac acan ancy Rat Rate Millio illion s sq f ft Grade A Grade B V Rate

1 2 3 4 5 6 7 8 9

1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Millio illion sq f ft Pre-Let completion Speculative completion

57 Helical Half Year Results

• Headline rents on Prime and Grade A property

in the City and Tech Belt have continued to rise – the average grade A rent for October was £64.16/sq ft

• Nearly 50% of the lettings this year have been

at rents in excess of £60/sq ft

• The average rent-free period on a 10 year lease

shortened from 21 months in Q1 2016 to 17 months in Q2, and rose to 19 months for Q3

• October saw £90/sq ft achieved on the 35th

floor of The Salesforce Tower

CITY AND AND TEC ECH H BEL ELT R RENT ENTAL AL TREND ENDS

SO SOUR URCE: SAVILLS LLS – 31 31 OCT 2 T 2016 16

£0.00 £10.00 £20.00 £30.00 £40.00 £50.00 £60.00 £70.00 Aver erage R e Ren ent (£/ £/sq ft) Average Grade A Rent Average Grade B Rent 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Numb mber of deal als 0-£19.99 £20-£29.99 £30-£39.99 £40-£49.99 £50-£59.99 £60-£69.99 >£70 £0.00 £20.00 £40.00 £60.00 £80.00 £100.00 £120.00 Q1/00 Q4/00 Q3/01 Q2/02 Q1/03 Q4/03 Q3/04 Q2/05 Q1/06 Q4/06 Q3/07 Q2/08 Q1/09 Q4/09 Q3/10 Q2/11 Q1/12 Q4/12 Q3/13 Q2/14 Q1/15 Q4/15 Q3/16 Rent t (£ (£/sq ft) t) City average prime City top rent

58 Helical Half Year Results 58

DIS ISCLA LAIM IMER Whilst we have taken all reasonable care to ensure that the information and material contained in this presentation is accurate at the time of its distribution, no representation or warranty, express or implied, is made as to its accuracy or completeness. The presentation should not be construed as the giving of advice or the making of a recommendation and should not be relied on as the basis for any decision or action. Nothing in this presentation constitutes an invitation or offer to invest or deal in the shares or

• ther listed securities in Helical plc.

The information in this presentation is being provided on a non-reliance basis, and neither the Helical Group nor any of its staff, advisors, agents or affiliates owe or assume any duty, liability

• r responsibility for any information or opinion contained in it (including inter alia projections

and forward-looking statements), or any omission from it. To the fullest extent permitted by law, we accept no liability for any loss or damage of any nature and howsoever arising, directly or indirectly, from any use of or reliance on this presentation or otherwise arising in connection herewith.

59 Helical Half Year Results 59

60 Helical Half Year Results 60

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