HELICAL PLC

("Helical" or the "Company")

Trading Update for the Period Since 1 April 2022

14 July 2022

Ahead of its Annual General Meeting ("AGM") which will take place at 9:00am today, Helical provides an update covering its trading activity for the period 1 April 2022 to 13 July 2022 ("the Period").

Commenting on the Company's activities, Gerald Kaye, Chief Executive, said:

"Helical has had a strong start to the financial year, releasing equity from investment sales of 55 Bartholomew, EC1 and Trinity, our last asset in Manchester, as well as selling six residential units at Barts Square, with just a further eight to be sold.

"We have made good progress on letting our vacant space at rents at or above 31 March 2022 ERVs and we are focused on letting up our remaining vacant space.  To that vacant space, we shall shortly add the The JJ Mack Building, our new development at 33 Charterhouse Street, EC1. Soft marketing of this 205,369 sq ft building has recently started ahead of the scheduled completion of the development in September and we are confident that demand for this highly sustainable building will be strong. Our pipeline of new schemes continues following the acquisition, earlier this year, of 100 New Bridge Street, EC4 where a planning application will be submitted later this summer.

"Despite the current political uncertainty and headwinds affecting the global economy, London continues to prosper and was recently given a strong boost with the opening of the Elizabeth Line, bringing an extra 1.5m people within a 45-minute journey of central London. All but one of our buildings (99% by value) are within 12 minutes of an Elizabeth Line station and current tenants have started to see the additional benefit from their proximity to this new transport connection.

"With our best-in-class offices meeting the highest sustainability criteria and offering top-quality amenities we believe our portfolio will be much in demand as the office sector continues to bifurcate between the best and the rest. This portfolio, our strong balance sheet and an experienced management team gives us confidence that we can continue to deliver good returns for shareholders."

Operational Performance

Portfolio Matters

·      On 20th May 2022 we simultaneously exchanged and completed contracts on the sale of Trinity in Manchester, to clients of Mayfair Capital, for £34.55m (£590 psf), reflecting a net initial yield of 5%. The sale represents a premium to 31 March 2022 book value of c.£2m, net of rental top ups.

·    We completed the sale of 55 Bartholomew, EC1 on 14^th June 2022 to a private European investor for £16.5m (our share £7.6m), reflecting a net initial yield of 4.5%. Originally three Victorian townhouses, the building was comprehensively refurbished to provide 10,976 sq ft of office space, let to five office tenants at an average rent of £72.17 psf.

·     We have completed four new lettings, totalling 19,891 sq ft, in the Period delivering contracted rent of £1.3m (our share £1.2m):

o   The 12^th floor at The Tower, EC1, comprising 9,572 sq ft, has been let to financial technology business, Stenn International, at a rent of £80.00 psf in line with 31 March 2022 ERV and the building returns to being fully let.

o   A further retail unit at Barts Square, EC1, comprising 4,922 sq ft, has been let to Restaurant St. Barts who will open for trading in late Summer.

o   We have completed one further letting at The Loom, E1 of 3,496 sq ft at a rent of £60.00 psf, representing a 9.2% premium to 31 March 2022 ERV.

o   We have let the last remaining 1,808 sq ft unit at 25 Charterhouse Square, EC1 to natural stone purveyors, Solid Nature, in line with 31 March 2022 ERV.

·    We have completed the sale of a further four apartments at Barts Square, EC1. Two further apartments are under offer, leaving just eight apartments, out of 236, available for sale.

·     Practical completion of The JJ Mack Building at 33 Charterhouse Street, EC1, a 205,369 sq ft BREEAM "Outstanding" office development is on track for September 2022.

·    At 100 New Bridge Street, EC4, we are continuing to develop our design proposals in anticipation of submitting a planning application over the Summer. The sustainable refurbishment of the building to create a new carbon friendly building is due to commence in late 2023 once vacant possession is achieved.

Sustainability

On 24 May 2022, Helical published its "Net Zero Carbon Pathway" setting out its commitment to becoming a net zero carbon business by 2030.

Financing

At 13 July 2022, the Group had £59m of cash, £460m of investment facilities of which £400m was drawn down and £79m of development facilities (Helical's share) of which £51m was drawn down.

Helical as a Real Estate Investment Trust ("REIT")

As previously notified, Helical became a REIT on 1 April 2022 and it is the Board's intention that there will be no material changes to the Group's investment policy or strategy on becoming a REIT.

Dividend

The final dividend for the year ended 31 March 2022 of 8.25p, if approved by Shareholders at the AGM later today, will be paid on 29 July 2022. This will take the total dividend for the year to 11.15p (2021: 10.10p). This final dividend will be paid out of distributable reserves generated from the Group's activities prior to its conversion into a REIT.

Board Matters

As previously announced, at today's Annual General Meeting ("AGM") our Chairman, Richard Grant, will step down from the Board after ten years' service. Richard will be replaced as Chairman by Richard Cotton, our current Senior Independent Director ("SID") with Sue Clayton, who has been on the Board for six years, replacing Richard Cotton as SID.

For further information, please contact:

[email protected]