Helical trading update: lettings grow as £17m shareholder return advances

A strong start built on lettings and disposals

Helical's latest trading update combines three things property investors generally want to see: rising occupancy, development progress and cash being returned to shareholders.

The London-focused developer and landlord let around 32,000 sq ft during the period from 1 April to 15 July 2026. It also agreed lease re-gears on a further approximately 50,000 sq ft. A re-gear changes or extends the terms of an existing lease, often improving income visibility for the landlord.

Meanwhile, the £333 million sale of 100 New Bridge Street completed in May, and Helical is proposing to return up to £17 million through a B Share Scheme and share buyback programme.

The overall update is encouraging, although plenty still depends on completing developments and converting tenant discussions into signed leases.

Helical's key figures

Measure	Update
Space let during the period	Approximately 32,000 sq ft
Space subject to lease re-gears	Approximately 50,000 sq ft
Additional contracted rental income at The Bower	£2.4 million
The Bower occupancy	96.6%
The Bower WAULT to expiry	6.4 years
100 New Bridge Street sale price	£333 million
Helical's share of sale proceeds	£166.5 million
Profit realised on the sale	£31 million
Proposed total shareholder return	Up to £17 million
Final dividend, subject to approval	1.00p per share
Total dividend for the year ended 31 March 2026	2.50p per share

The Bower is doing the heavy lifting on lettings

The most tangible operational progress comes from The Bower in EC1.

Helical has announced a 9,600 sq ft letting of the 12th floor of The Tower to Audio Network. This follows the letting of the 10,000 sq ft third floor of The Tower in April and the 12,400 sq ft seventh floor of The Warehouse in June.

Five floors covering approximately 50,000 sq ft have also been re-geared. Together, these transactions add £2.4 million of contracted rental income and were agreed in line with March 2026 estimated rental values, or ERVs.

Occupancy at The Bower has consequently increased to 96.6%, while its weighted average unexpired lease term, or WAULT, to expiry has extended to 6.4 years. WAULT measures the average time remaining on leases and gives investors an indication of income security.

This is a clear positive. Helical is not simply filling space by accepting terms below its previous assumptions. The company says the transactions are in line with March ERVs, while the lease re-gears improve the duration of contracted income.

Two office completions are approaching

Helical expects to complete two major London office schemes during 2026.

Brettenham House

The comprehensive redevelopment of the 128,000 sq ft Brettenham House is on track for completion in September 2026.

Helical plans to accelerate marketing as completion approaches, when prospective tenants can better assess the building's heritage features, views and terraces. Management described early tenant interest and ongoing discussions as encouraging.

However, no lettings have been announced and the terms under discussion were not disclosed. Investors will therefore want to see whether interest turns into signed agreements after completion.

10 King William Street

The 142,000 sq ft 10 King William Street development is due to reach practical completion in December 2026. Practical completion means the main construction work is sufficiently finished for the building to be handed over and occupied, subject to minor outstanding items.

The scheme will provide flexible floorplates of around 20,000 sq ft and three levels of terraces. Helical is holding discussions with several potential tenants across different space requirements and is optimistic about announcing letting progress before completion.

That would be helpful, but it remains an expectation rather than a completed deal. The approaching completion dates make leasing execution increasingly important.

Longer-term development pipeline moves forward

At Delta Paddington, the main construction contract has been signed with Mace and £220 million of debt finance is in place. Work is progressing, with practical completion of the 240,000 sq ft office scheme targeted for the third quarter of 2028.

The building achieved a 97.4% BREEAM Outstanding score at the design stage. BREEAM is a sustainability assessment used for buildings. Helical says this is the second-highest score achieved in the UK for a new-build office.

Delta Paddington is also targeting WELL Shell & Core Platinum, an EPC A energy rating and a NABERS 5.5-star rating. These certifications relate to wellbeing, energy efficiency and operational environmental performance.

The Southwark project is structured differently. Its 429-bed purpose-built student accommodation component has been forward funded to Places for London, while the affordable residential element has been forward sold to Southwark Borough Council.

Helical says the joint venture is consequently exposed only to delivery risk, rather than occupational or market risk. It expects the equity-light structure, which limits the amount of Helical capital committed, to generate a return on investment exceeding 3.0 times.

Gateway 2 approval has been submitted, with delivery targeted ahead of the 2029/30 academic year. Gateway 2 is a regulatory building safety approval required before construction can proceed on relevant higher-risk buildings.

Cash is heading back to shareholders

The completed sale of 100 New Bridge Street to State Street Corporation generated a £31 million profit. Helical is proposing to return more than half of that profit to shareholders.

The planned return comprises approximately £12 million through redeemable B Shares and a £5 million share buyback programme.

Subject to approval at the general meeting on 16 July, the B Shares are expected to be redeemed for cash at 9.72p per existing ordinary share. A proposed 100-for-105 share consolidation would follow, also subject to approval, to maintain share price comparability after the capital distribution.

The buyback began on 8 June 2026. Helical had acquired 1,109,980 shares at a weighted average price of 189.71p by the date of this update.

Separately, the proposed final dividend of 1.00p per share would be paid on 3 August 2026 if approved at the AGM. This would bring the total dividend for the year ended 31 March 2026 to 2.50p.

What investors should watch

The update shows real progress rather than relying solely on long-term development promises. The Bower's lettings have increased contracted rent, occupancy and lease duration, while the New Bridge Street disposal has crystallised profit and supported capital returns.

The development pipeline also has clear milestones, including Brettenham House in September, 10 King William Street in December and Delta Paddington in the third quarter of 2028.

The main uncertainty is leasing. Helical reports interest and discussions at its approaching office completions, but no tenants have yet been announced for Brettenham House or 10 King William Street in this update. Completion is only part of the job - securing occupiers on attractive terms will determine how quickly those projects begin generating income.

Construction and regulatory execution also remain relevant. Delta Paddington is not due to complete until 2028, while Southwark still requires Gateway 2 approval.

For now, Helical has delivered a constructive opening to its financial year. Investors have fresh rental income, a high level of occupancy at The Bower and up to £17 million of proposed capital returns. The next important test is whether management can carry this momentum into the leasing of its newly completed buildings.