Helical PLC Reports Strong Half-Year Results Amid London Office Market Recovery

Helical’s half-year: building into a supply squeeze as London offices rebound

Helical PLC has delivered a steady set of half-year numbers while leaning hard into a development-led London office strategy. IFRS profit came in at £1.8m with basic EPS of 1.5p, EPRA EPS edged up to 2.4p, and the interim dividend is held at 1.50p per share. Under the bonnet, the story is about construction progress, a big pipeline arriving into a tight market, and a balance sheet positioned – and hedged – to fund it.

If you believe prime London offices are in short supply and rents can keep rising 4-5% per year, Helical is trying to be in the right place at the right time. The forward sale of 100 New Bridge Street to State Street Corporation remains the largest single-asset London office deal of 2025 and underlines liquidity for top quality space.

Headline numbers investors should know

Metric	Half year to 30 Sep 2025
IFRS profit	£1.8m (2024: £4.7m)
Basic EPS	1.5p (2024: 3.8p)
EPRA EPS (industry measure of recurring earnings)	2.4p (2024: 2.3p)
Interim dividend	1.50p per share
EPRA NTA per share (asset value metric)	349p (31 Mar 2025: 348p)
IFRS NAV	£422.8m (31 Mar 2025: £426.1m)
See-through LTV (loan to value)	28.2% (31 Mar 2025: 20.9%)
Cash and undrawn facilities (Group’s share)	£192.4m (31 Mar 2025: £244.5m)
Average cost of secured investment debt	3.5% (100% hedged)
Vacancy on completed assets	22.4% (31 Mar 2025: 21.3%)

Strategy in action: three prime offices landing in 2026

Helical is pushing ahead with best-in-class offices in core, well-connected locations. The core trio due in 2026 totals 464,500 sq ft:

• 100 New Bridge Street, EC4 – 194,500 sq ft HQ building, forward sold for a net £333m (£166.5m Helical’s share). Completion targeted April 2026.
• Brettenham House, WC2 – c.128,000 sq ft comprehensive refurbishment, completing Q3 2026, delivered via an equity-light structure alongside the existing landowner.
• 10 King William Street, EC4 – 142,000 sq ft new-build above the Bank station entrance, targeting practical completion December 2026. Encouraging pre-let interest.

Beyond 2026, the Paddington scheme (235,000 sq ft) is being accelerated, with main works expected to start Q1 2026 and completion targeted for Q3 2028. Initial credit approval is in place for its development facility, expected to be signed in Q1 2026. Helical also pivoted Southwark to PBSA – 429 studios plus 44 affordable homes – with heads of terms agreed for forward funding and forward sale respectively, both expected to exchange before year end.

Leasing pulse: The Bower warms up, The Loom still a grind

On the investment side, momentum is building at The Bower, EC1. Occupier interest has materially increased in the last three months, helped by limited City core supply and a resurgence in tech and AI demand for fitted, flexible space. Discussions are ongoing for all available space, and re-gear talks have started with tenants facing near-term lease events.

The Loom, E1 remains tougher. The largest tenant has extended to July 2036, which helps WAULT (weighted average unexpired lease term), but overall vacancy stands at 33.4%. Management remains focused on leasing with flexible terms.

Valuation and rental reversion: small upward nudge

Valuations were resilient: completed assets dipped 0.5% like-for-like, but the development portfolio rose 1.9%, delivering a net 0.3% gain overall. On a see-through basis, the portfolio stands at £572.6m. Importantly, contracted rents on completed assets are £19.8m against an ERV of £29.3m. That gap is the reversionary potential if Helical can lease up vacancy and capture prime rents.

Financing: hedged, extended and ready

Helical’s debt profile looks sensible for a developer-owner with major schemes under way:

• See-through LTV rose to 28.2% as capex went into developments – still conservative for the sector.
• Average maturity of secured investment debt: 3.0 years after exercising a one-year RCF extension to September 2028. One more extension is available to 2029.
• 100% of drawn debt is hedged to facility expiry; cost of secured investment facilities has fallen to 3.5%.
• Development debt costs 7.6% on average – not cheap, but margins step down post-letting.

Liquidity is solid at £192.4m of cash and undrawn facilities (Group’s share), though down from £244.5m in March as capex progressed. See-through net borrowings rose to £164.5m, and see-through gearing to 38.9% – both consistent with heightened build activity.

Why this matters: timing the supply crunch

Market data in the statement points to a classic flight-to-quality and a severe shortage of new best-in-class space, especially in the City and West End cores. Forecast prime rental growth of 4-5% per annum, record-low new-build vacancy in core submarkets, and stronger pre-letting are exactly the conditions Helical has been building for.

The key investment case is straightforward: deliver three high-spec City/West End offices into a thin 2026 pipeline, lease them well, crystallise profits, and recycle capital. The forward sale to State Street Corporation validates the product and provides visibility on a large cash inflow in April 2026, from which Helical expects to return a minimum of 50% of realised net profits from the joint venture to shareholders, subject to business needs.

Balanced view: the good, the watch-outs

Positives

• Big pipeline, arriving as supply tightens, with strong sustainability credentials (BREEAM Outstanding and NABERS targets).
• Forward sale of 100 New Bridge Street at a £333m net price – market-defining liquidity for large lot sizes.
• Reversionary potential: £19.8m contracted rent vs £29.3m ERV on completed assets.
• Debt fully hedged, cost of investment debt down to 3.5%, RCF extended to 2028.

Risks to manage

• Vacancy on completed assets is 22.4% and The Loom remains challenging.
• WAULT to break/expiry on the see-through portfolio is 2.8 years, with 56.2% of the rent roll expiring in 2028 – successful re-gears and new lettings matter.
• Net rental income fell 30% to £7.7m after prior-year disposals – near-term earnings rely more on development fees and valuations until new space leases.
• See-through LTV and gearing rose as capex ramps – expected, but execution needs to stay tight.

Sustainability edge: increasingly a leasing differentiator

10 King William Street and Brettenham House have Design Stage BREEAM Outstanding ratings, and 10 King William Street has a NABERS Design for Performance Reviewed Target Rating of 5*. WELL precertification has been received for both schemes. The Tower at The Bower retained an EPC B under tougher rules after upgrades – a useful signal for occupiers focused on energy costs and regulation.

Key dates and near-term catalysts

• Dividend: ex-div 4 December 2025, record 5 December 2025, pay 14 January 2026. DRIP available via Shareview.
• Southwark PBSA: forward funding and forward sale expected to exchange before year end; construction slated for H1 2026.
• Paddington: site acquisition January 2026; facility agreement targeted Q1 2026; main works to start Q1 2026.
• 100 New Bridge Street: practical completion and forward sale completion April 2026 – Helical plans to return at least 50% of realised JV profits thereafter, subject to requirements of the business.
• Results presentation and webcast: details at helical.co.uk and the live link here.

My take: a classic Helical cycle call

This is Helical doing what it does best – high-spec London offices delivered into an undersupplied window, backed by creative, equity-light structures with partners like Places for London. The mix of reversion on the existing portfolio, rising leasing interest at The Bower, and a pipeline timed for 2026/2028 gives the company multiple shots at value creation.

The flipside is the usual development execution risk, near-term income softness from disposals, and the need to fill vacancy and extend WAULT. With 100% of drawn debt hedged, costs trending down, and a meaningful capital return flagged after April 2026, the risk-reward looks attractive if leasing momentum in the City and West End holds.

In short: a steady half-year on the numbers, but a stronger one on positioning. If London’s prime office recovery continues, Helical is set up to benefit.