Profit jumps at Helical as London recovers
Helical has delivered what its chief executive called “a strong set of results” after navigating two years of the Covid-19 pandemic.
The developer posted a profit of £88.9m in the year to 31 March, soaring from the previous year’s £17.9m.
Its total property return stood at 10.7%, compared to the MSCI Central London Offices Total Return Index of 7.9%, with a total accounting return of 15%, well ahead of its target range. Net asset value rose by 13% to £687m, with a 7% valuation lift in the portfolio to almost £1.1bn.
Helical has delivered what its chief executive called “a strong set of results” after navigating two years of the Covid-19 pandemic.
The developer posted a profit of £88.9m in the year to 31 March, soaring from the previous year’s £17.9m.
Its total property return stood at 10.7%, compared to the MSCI Central London Offices Total Return Index of 7.9%, with a total accounting return of 15%, well ahead of its target range. Net asset value rose by 13% to £687m, with a 7% valuation lift in the portfolio to almost £1.1bn.
Chief executive Gerald Kaye warned of the economic outlook but said he was confident of Helical’s positioning.
“The geopolitical and economic backdrop has deteriorated since we reported on our half-year results in November 2021,” he said. “With events in Eastern Europe ongoing and growing inflationary pressures accompanying a slowing economy leading to fears of stagflation, it is right to be concerned for the performance of UK businesses over the next year. Despite these concerns, the fundamentals of our business remain strong, and we believe our experience and reputation will enable us to secure new opportunities as they arise.”
Alongside the results, Helical announced two disposals. It has offloaded Trinity, its final building in Manchester, to Mayfair Capital for £34.6m, reflecting a net initial yield of 5%, and sold its office scheme at 55 Bartholomew Close, EC1, to a private European investor for £16.5m.
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