HELICAL PLC

("Helical" or the "Group")

Trading Update for the Period Since 1 October 2024

Helical today provides an update covering its trading activity for the period 1 October 2024 to 10 April 2025 ("the Period") in advance of the publication of its Full Year results, which will be announced on Wednesday 21 May 2025.

Commenting on the Group's activities, Matthew Bonning-Snook, Chief Executive, said:

"I am pleased to report on a period of significant activity across the portfolio, which has seen us progress schemes through funding, unlock value via planning milestones and achieve a number of sales, culminating in today's announcement of the forward sale of our prime City office scheme at 100 New Bridge Street, EC4, to an undisclosed party for £333m. This 195,000 sq ft, carbon friendly redevelopment of an existing office building, in joint venture with Orion Capital Managers, will be the first scheme in our current development pipeline to complete its cycle of purchase, planning, funding, construction, letting and sale.

"In early November 2024, we announced the sale of our 50% share in The JJ Mack Building, EC1, noting the positive impact on our finances as it released sufficient cash to ensure the equity requirements of our development pipeline were fully funded. The sale of 100 New Bridge Street, EC4 enables us to reward Shareholders for their patience in recent years and we can confirm that, in addition to our regular dividends out of the income earnings of the business, we anticipate returning capital to shareholders following receipt of the net proceeds of the sale when it completes in April 2026. We expect to recommend a minimum return to Shareholders of 50% of the realised net profits from the joint venture, and will give serious consideration to paying up to 100% of the realised net profits from the joint venture, subject to the requirements of the business.

"In addition to these two major sales, Helical has made progress across the whole of its development pipeline. At 10 King William Street, EC4, we have signed the building contract and entered into a £125m development financing agreement with HSBC. Work continues as planned at Brettenham House, W2, for the delivery of this 128,000 sq ft scheme in April 2026. At Southwark, SE1, we have recently secured planning approval for our 429 student accommodation scheme with 44 affordable units and are due to start on site in 2026. At Paddington, W2, we have secured a further planning consent to improve the building's amenities and are on track to acquire the site in January 2026, with works starting shortly thereafter."

Sales

100 New Bridge Street, EC4

Helical and a vehicle managed by Orion Capital Managers have exchanged contracts with an undisclosed party for the forward sale of Helical Bicycle 3 Limited, the corporate entity that owns 100 New Bridge Street, EC4, for the purchaser's own occupation. The property forward sale net price of £333m (Helical share: £166.5m) reflects a capital value of £1,712 psf, which represents a capitalisation yield of 5.0%, before deducting corporate sale costs and a notional rent free allowance. The purchaser is an S&P 500 listed global business, with net assets of over $10bn and is rated A to AA category rating across three agencies.

On completion of the sale, the amount drawn under the £155m (Helical share: £77.5m) development facility, will be repaid. The estimated consideration payable for the purchase of the shares of Helical Bicycle 3 Limited is £104m (Helical share: £52m) and surplus funds will be paid out to each joint venture partner in accordance with the terms of the joint venture agreement signed in May 2024.

Upon successful delivery of the completed development to the purchaser, Helical anticipates receiving a share of net profits from the joint venture of at least £27m, which is in line with expectations noted in our Half Year presentation to investors in November 2024.

The JJ Mack Building, EC1

On 1 November 2024, we announced the completion of the sale of our 50% interest in The JJ Mack Building to our joint venture partner, AshbyCapital, with a value of £139.2m reflecting our 50% share of the property. The net proceeds of £71.4m ensured that the equity requirements of our development pipeline are fully funded. The notional NIY on sale of 5.35% agreed with the purchaser, was increased by 50bps to 5.85% to reflect the sale of a 50% share in the building.

The Power House, W4

During the Period, we also sold our freehold interest in The Power House to Riverside Capital's private investor syndicate for £7.0m, reflecting a net initial yield of 7.3%.

Development Pipeline

On Site

·    100 New Bridge Street, EC4 - 100 New Bridge Street will deliver 195,000 sq ft best-in-class office space, targeting the highest sustainability, technology and wellbeing standards including EPC A, BREEAM Outstanding, NABERS 5*, WELL Shell and Core Platinum and WiredScore Platinum. The existing eight storey building is undergoing a comprehensive refurbishment, stripping it back to its frame, recladding and adding two additional floors. The completed development will include an exceptional eighth floor terrace of 7,450 sq ft, which will provide magnificent views of St. Paul's Cathedral and across Central London.

·    Brettenham House, WC2 - Work continues on a comprehensive refurbishment of this 1930s heritage office building located on the Thames between The Savoy and Somerset House at Waterloo Bridge. Occupying a prime location on the 'elbow' of the River Thames with river views on each floor, the scheme will provide c.128,000 sq ft of office and retail space incorporating enhanced amenities which include new ninth floor terraces and adjacent office space, marble clad stair cores, triple height reception space and a new separate entrance accessed via Savoy Street. The building will be targeting EPC A, BREEAM Outstanding, NABERS 5* and WELL Shell and Core Platinum. Helical has committed to contributing £12.5m during the construction phase to April 2026, when practical completion of the works is due. This 'equity-light' scheme is generating development management fees during this construction phase, which will total £2.5m, and a profit share based on rental performance once the building is successfully let.

·    10 King William Street, EC4 - In February 2025, Helical and Places for London (the TfL property company) entered into a development financing arrangement with HSBC to provide £125m to fund the construction of 10 King William Street, the over-station development at Bank Tube station. With construction already underway, the joint venture simultaneously signed a building contract with McLaren and is aiming to achieve practical completion in December 2026. The first of three initial sites in Helical's joint venture with Places for London, this "best-in-class" eight-story office development will deliver 139,000 sq ft NIA of office space with 7,260 sq ft of terracing, 1,950 sq ft of ancillary retail and extensive occupier amenity provision. The building is targeting the highest ESG credentials, including EPC A, BREEAM Outstanding, NABERS 5* and WELL Shell and Core Platinum.

Future Schemes

·    Southwark PBSA, SE1 - In March 2025, Helical and Places for London secured a resolution to grant planning approval for 429 purpose built student accommodation ("PBSA") units and 44 affordable homes at their scheme above Southwark Jubilee Line Tube station, one of London's best-connected Zone 1 locations. This new planning approval replaces the previous planning approval for a 220,000 sq ft office scheme. The joint venture is targeting a 4.5 star Home Quality Mark for the scheme's affordable housing provision and BREEAM Outstanding for the PBSA. The scheme will also offer new retail space and community space including a shared garden. Building works at the new development are expected to start in 2026 and complete in 2028.

·    Paddington OSD, W2 - Situated close to the Elizabeth Line station at Paddington, this 19-storey building will provide 235,000 sq ft of office space. In the Period, we have obtained consent to improve the end of trip arrival facilities, have completed RIBA Stage 3 Design and negotiated an enabling works contract which is expected to commence in June 2025. We are due to acquire the site, in joint venture with Places for London, in January 2026, allowing works to start immediately after site drawdown.

Investment Portfolio

The Bower, EC1

The Bower, EC1, is a landmark scheme comprising 312,573 sq ft of office space across The Tower, The Warehouse and The Studio, together with 21,203 sq ft of restaurant and retail space. The estate is located adjacent to the Old Street roundabout where significant remodelling works have taken place, providing extensive additional public realm to occupiers.

The Tower

The Tower offers 171,432 sq ft of office space with a contemporary façade and innovatively designed interconnecting floors, along with 10,905 sq ft of retail space across two units, let to food and beverage operators Serata Hall and Wagamama. Lettings in the Period totalled 19,545 sq ft. Helical signed a five year lease with Recorded Future (9,499 sq ft) on the fourth floor at £72.50 psf and a five year lease renewal with OpenPayd Holdings Limited (10,046 sq ft) on the 13^th floor at £80 psf. Both lettings were in line with current ERVs. However, in addition, two floors have become available, totalling 20,903 sq ft. During the Period, Stenn International Limited, the tenant on the 12^th floor, entered administration, while Infosys Limited reached the end of their lease of the 15^th floor in December 2024. Following these movements in the Period, the vacancy rate currently stands at 27.7%. Works are underway to refresh and remarket these floors, which are already generating interest from potential new tenants.

The Warehouse and Studio

The Warehouse and The Studio comprise 141,141 sq ft of office space, with just one floor in The Warehouse currently vacant (8.2%). This vacant floor has been fully refurbished with viewings now ongoing. The Studio remains fully let. In addition, there is a further 10,298 sq ft of fully let retail space across the two buildings.

The Loom, E1

The Loom is a former Victorian wool warehouse offering 107,227 sq ft of office space plus a 1,313 sq ft café. Current vacancy is c.28%, down from 35% at 31 March 2024.

Financing

£210m Revolving Credit Facility ("RCF")

At 31 March 2025, the Group had drawn £175m of the RCF with an effective rate of 3.8% and a maturity of 2.5 years, extendable to 4.5 years by exercising two one year extension options. The RCF benefits from interest rate swaps at an average of 1.5% plus margin and fees on 100% of the drawn amount until October 2028.

£155m Development Facility - 100 New Bridge Street, EC4

This development facility (Helical share: £77.5m), in a 50:50 joint venture with Orion Capital Managers, funds the complete refurbishment of 100 New Bridge Street, EC4. The facility is for an initial four year term to May 2028, but will be repaid on completion of the sale of the development following practical completion, due in April 2026. As at 31 March 2025, the joint venture had drawn down £40.6m of the facility (Helical share: £20.3m).

£125m Development Facility - 10 King William Street, EC4

In February 2025, Helical and Places for London, the TfL property company, entered into a £125m development facility (Helical share: £63.75m) with HSBC to fund the construction of 10 King William Street, EC4, the over-station development at Bank Tube station. This four year facility, with a one-year extension option, will fund all remaining development costs. As at 31 March 2025, the joint venture had drawn down £1.0m of the facility (Helical share: £0.5m).

Cash, Net Debt and Undrawn Facilities

At 31 March 2025, the Group had c.£68.6m of cash and c.£195.8m of drawn facilities, resulting in a see-through net debt position of c.£127.2m at 31 March 2025 (2024: £261.6m). The Group had c.£165.5m of undrawn loan facilities.

Notice of Results

The Group confirms that it will announce its full year results for the 12 months ended 31 March 2025 on Wednesday 21 May 2025. There will be a presentation for analysts on the morning of the results, for further details, please contact FTI Consulting.

For further information, please contact:

Schelical@fticonsulting.com