28th Nov 2013 09:21
LONDON (Alliance News) - Property investment and development group Helical Bar PLC reported Thursday an increase in profit and revenue for the first half, boosted by acquisitions and its development properties.
The company, which recently bought a retail park in Huddersfield for GBP17 million, posted pretax profit of GBP68.9 million in the six months to September 30, up from GBP5.2 million a year earlier, boosted by development property profit of GBP60.9 million compared with just GBP4.7 million in the 2012 half.
Development properties includes building sites, developments in the course of construction, completed developments available for sale, and pre-sold developments.
Helical Bar also made a gain on the sale and revaluation of investment properties of GBP3.9 million, up from GBP557,000 a year earlier.
Revenue almost doubled to GBP87.9 million during the period, from GBP44.2 million in 2012, which it attributed to development property income of GBP73.1 million, up from just GBP31.1 million a year earlier.
Overall, like-for-like rents increased driven by new lettings of GBP881,000 and rental increases of GBP60,000 offset by losses at lease end or expiry of GBP447,000.
Helical Bar said 41 new leases were signed in the period with 71.6% of tenants retained at lease end or expiry, excluding breaks initiated by Helical for redevelopment.
In total ,the company made GBP69 million in new property purchases during the half, while a further GBP86 million in purchases have been completed since September 30. Helical Bar said contracts recently have been exchanged on the forward purchase of Clifton Street, London, for GBP21 million.
Diluted EPRA earnings per share, which is adjusted for performance related awards, rose to 282 pence from 264 pence in March.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
"We are long both in central London offices and in high yielding secondary regional assets, the former to provide capital growth and the other to generate income and cash flow," Chief Executive Michael Slade said in a statement.
"This has been our aim and strategy for the last three years and I firmly believe we are reaping the rewards as London continues to grow and investors move up the risk curve and into the regions," he added.
The board increased the interim dividend 8% to 2.00 pence per share from 1.85 pence per share a year earlier.
Shares were up 1.5% at 330.75p in morning trade Thursday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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