Helical

Website: Helical
Index: FTSE Small Cap
EPIC: HLCL
Supersector: Real Estate
Sector: Real Estate Investment and Services
Subsector: Real Estate Holding and Development
Market Cap: £233.1M
Payout Frequency: Semi-Annual

Helical Dividend Analysis and Summary

Declared dividend and key dates

Interim dividend: 1.50p per share (unchanged YoY)
Type: Entirely a PID under the REIT regime
Ex-dividend date: 04/12/2025
Record date: 05/12/2025
Payment date: 14/01/2026
DRIP: Available via Equiniti (www.shareview.co.uk/info/drip)
Last paid final dividend: 3.50p (paid in the period). If maintained, the ordinary FY DPS would imply c.5.0p total for the year.
Cash cost of the interim: c.£1.84m (company estimate)

Coverage and financial support

EPRA EPS (H1): 2.4p vs interim 1.50p — coverage ~1.6x. IFRS EPS (1.5p) gives ~1.0x cover, but EPRA is the more relevant REIT metric.
Liquidity remains solid: £192.4m cash and undrawn facilities (see-through); 100% of drawn investment debt hedged; average cost of investment debt 3.5%.
Leverage increased with development spend: see-through LTV 28.2% (from 20.9%); see-through net gearing 38.9%.
Operating cash flow in H1 was negative (c.£2.6m) as activity focused on development; interim dividend size remains modest relative to liquidity.

Dividend sustainability and growth outlook

Sustainability: The interim is covered by EPRA earnings and supported by ample liquidity and hedged debt, despite lower rental income post disposals and higher vacancy.
Growth trajectory: Ordinary DPS is flat YoY (1.50p interim; prior 3.50p final). With major schemes completing in 2026 and management guiding to 4–5% rental growth on best-in-class offices, medium-term income growth potential improves, but near-term ordinary DPS likely remains stable pending lettings.
Additional returns: On completion of the forward sale of 100 New Bridge Street (expected April 2026), the Board expects to recommend returning at least 50% of realised JV net profits to shareholders. This suggests potential special distribution/buyback in FY26, separate from the ordinary dividend.

Strategic and structural developments relevant to dividends

Forward sale: 100 New Bridge Street (£333m gross; completion targeted April 2026) underpins the planned capital return.
Development pipeline: 10 King William Street (PC Dec 2026), Brettenham House (PC Q3 2026), Paddington (PC Q3 2028) — expected to deliver into a supply-constrained market; mainly equity-light/JV structures.
RCF extension exercised (to Sept 2028) and all investment debt hedged — supportive for cash flow visibility.
No share consolidation/M&A announced. DRIP remains available.

Risks and flags for dividend stability

Income base: See-through net rental income fell; vacancy 22.4% and short WAULT to break (2.8 years) increase near-term income risk until leasing improves (management notes a pickup at The Bower).
Execution/timing risk: Dividend progression is sensitive to 2026 leasing outcomes and timely completions; development debt costs are elevated (7.6% see-through, JV) albeit hedged.
Balance sheet drift: LTV up to 28.2% and negative operating cash in H1 reflect development phase; headroom remains but reduces flexibility if markets soften.
Market/macro: London prime offices show strong demand but wider macro uncertainty persists; valuation sensitivity to yields and ERVs remains a factor.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
05/12/2024	15/01/2025	Interim	1.50p	GBX
26/06/2025	04/08/2025	Final	3.50p	GBX

Total (Annual Dividends Per Share): 5.00p

Dividend Yield = Annual Dividends Per Share (5.00p) ÷ Share Price (189p) = 2.65%

Ex Dividend Date	Payment Date	Type	Amount	Currency
04/12/2025	14/01/2026	Interim	1.5000p	GBX
26/06/2025	04/08/2025	Final	3.50p	GBX
05/12/2024	15/01/2025	Interim	1.50p	GBX
27/06/2024	02/08/2024	Final	1.78p	GBX
30/11/2023	12/01/2024	Interim	3.05p	GBX
22/06/2023	28/07/2023	Final	8.70p	GBX
01/12/2022	13/01/2023	Interim	3.05p	GBX
23/06/2022	29/07/2022	Final	8.25p	GBX
02/12/2021	31/12/2021	Interim	2.90p	GBX
24/06/2021	26/07/2021	Final	7.40p	GBX
03/12/2020	31/12/2020	Interim	2.70p	GBX
25/06/2020	27/07/2020	Final	6.00p	GBX
28/11/2019	31/12/2019	Interim	2.70p	GBX
13/06/2019	19/07/2019	Final	7.50p	GBX
29/11/2018	31/12/2018	Interim	2.60p	GBX
14/06/2018	20/07/2018	Final	7.00p	GBX
23/11/2017	22/12/2017	Interim	2.50p	GBX
22/06/2017	21/07/2017	Final	6.20p	GBX
01/12/2016	30/12/2016	Interim	2.40p	GBX
30/06/2016	29/07/2016	Final	0.72p	GBX
10/03/2016	04/04/2016	2nd Interim	5.15p	GBX
03/12/2015	30/12/2015	Interim	2.30p	GBX
02/07/2015	31/07/2015	Final	5.15p	GBX
11/12/2014	30/12/2014	Interim	2.10p	GBX
02/07/2014	30/07/2014	Final	4.75p	GBX
04/12/2013	27/12/2013	Interim	2.00p	GBX
03/07/2013	26/07/2013	Final	3.70p	GBX
28/11/2012	28/12/2012	Interim	1.85p	GBX

Year	Interim	Final	Currency	Total	Change
2024	1.500	1.780	GBX	3.280	-72.080
2023	3.050	8.700	GBX	11.750	3.980
2022	3.050	8.250	GBX	11.300	9.700
2021	2.900	7.400	GBX	10.300	18.390
2020	2.700	6.000	GBX	8.700	-14.700
2019	2.700	7.500	GBX	10.200	6.250
2018	2.600	7.000	GBX	9.600	10.340
2017	2.500	6.200	GBX	8.700	5.190
2016	2.400	0.720	GBX	8.270	11.000
2015	2.300	5.150	GBX	7.450	8.750
2014	2.100	4.750	GBX	6.850	20.170
2013	2.000	3.700	GBX	5.700	208.100
2012	1.850		GBX	1.850

Number of Shares:

Payment	Paid	Amount
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