Helical plc Reports Strong Q1 2026 Performance: 32,000 sq ft Let at The Bower, Completion of £333m 100 New Bridge Street Sale, and £12m Capital Return Plan

New Leases at The Bower EC1 Boost Occupancy to 96.6% and Extend WAULT to 6.4 Years

The update highlights ongoing leasing momentum at The Bower, Helical’s multi-building office campus in Clerkenwell, EC1. During the reporting period, Helical completed the letting of the 9,600 sq ft 12th floor of The Tower to Audio Network, a global music licensing and production company. This deal, announced on the AGM day, follows earlier lettings of the 10,000 sq ft 3rd floor of The Tower in April 2026 and the 12,400 sq ft 7th floor of The Warehouse in June 2026, collectively amounting to around 32,000 sq ft of new leases.

In addition to new leases, re-gears were secured across five floors totalling approximately 50,000 sq ft. These transactions have increased contracted rental income by £2.4 million, aligned with March 2026 estimated rental values, extended The Bower’s weighted average unexpired lease term (WAULT) to 6.4 years, and raised occupancy to 96.6%. These metrics are key indicators of income stability and quality for investors in REITs and commercial property.

£333 Million Sale of 100 New Bridge Street Completes, Delivering £31 Million Profit

On 20 May 2026, Helical completed the sale of its 195,000 sq ft office redevelopment at 100 New Bridge Street, EC4, to State Street Corporation for £333 million. Helical’s share of the proceeds was £166.5 million, reflecting its ownership stake. The transaction is one of the largest single lot deals in the London market in recent years, underscoring its significance amid broader City office investment conditions.

The sale realised a £31 million profit and is central to Helical’s capital return plans for the year. The 195,000 sq ft asset was a best-in-class office redevelopment that had achieved practical completion before sale. This disposal exemplifies Helical’s strategy of developing premium office space in central London and recycling capital by selling to institutional investors, reinforcing the company’s asset quality and development expertise despite pricing pressures in parts of the central London office market.

Brettenham House WC2 Redevelopment On Track for September 2026 Completion with Early Tenant Interest

Helical’s comprehensive 128,000 sq ft redevelopment of Brettenham House, a 1930s heritage building in WC2, remains on schedule for practical completion in September 2026. The company plans to intensify marketing efforts as completion nears, enabling prospective tenants to fully appreciate the building’s heritage features, views, and terraces. Early tenant interest is encouraging, although no specific lease details have been disclosed.

Brettenham House combines historic architecture with a full refurbishment to contemporary best-in-class office standards. Such heritage buildings with high-quality upgrades have attracted strong demand in central London, appealing to tenants seeking distinctive space with modern sustainability credentials. Completion in September 2026 positions Helical to showcase the asset soon, potentially accelerating leasing activity, which will be closely watched by investors given its impact on valuation and income timelines.

10 King William Street EC4 Office Development Aims for December 2026 Practical Completion

Helical’s 142,000 sq ft office development at 10 King William Street, EC4, is expected to reach practical completion in December 2026. The project features highly efficient and flexible 20,000 sq ft floorplates designed to attract a diverse range of occupiers. The building will emphasize occupier wellbeing and include three terraced levels, features increasingly sought after in the post-pandemic office market.

Helical is engaged in ongoing discussions with multiple potential tenants across various space requirements and remains optimistic about leasing progress prior to completion. While tenant identities, lease sizes, and targeted rents remain confidential, the positive tone and December 2026 timeline suggest leasing momentum will be a key focus for investors and analysts. The combination of efficient floorplates and strong amenities positions the building competitively amid limited supply of new, high-specification City office space.

Delta Paddington W2: 240,000 sq ft Development Underway with Mace Contract and £220 Million Debt Financing

At Delta Paddington in W2, Helical’s largest current development spanning 240,000 sq ft has commenced main construction following the signing of the contract with Mace and securing £220 million in debt finance. Construction is progressing well with practical completion targeted for Q3 2028, marking a significant medium-term milestone beyond the 2026 completions.

From a sustainability perspective, Delta Paddington has achieved a BREEAM Outstanding design stage rating with an exceptional 97.4% score—the second highest in the UK for a new build office. The project also targets WELL Shell and Core Platinum certification, EPC A rating, and a NABERS 5.5-star rating. These credentials appeal to institutional occupiers with ESG commitments and investors applying environmental and social governance criteria. With construction underway and financing secured, Delta Paddington represents a major future earnings and valuation catalyst for Helical.

Southwark SE1 PBSA Scheme Forward Funded and Forward Sold, Aiming for Gateway 2 Approval in 2026

The Southwark scheme in SE1, which includes a 429-bed purpose-built student accommodation (PBSA) component, has been structured to minimise Helical’s balance sheet risk. The PBSA element has been forward funded to Places for London, while the affordable residential portion has been forward sold to Southwark Borough Council. This structure leaves the joint venture exposed only to delivery risk, eliminating occupational and market risks, and is expected to generate over a 3.0x return on investment.

The project is awaiting Gateway 2 approval under the Building Safety Act framework, with submission made and approval anticipated during 2026. Student accommodation delivery is targeted ahead of the 2029/30 academic year. The forward-funding and forward-sale arrangements significantly reduce lease-up and valuation risks, leaving construction execution as the primary variable. Achieving the projected return would substantially contribute to Helical’s capital generation, making Gateway 2 approval a key upcoming milestone.

Helical Proposes £12 Million B Share Capital Return and 100-for-105 Share Consolidation Pending General Meeting Approval

Helical has proposed returning approximately £12 million to shareholders via a new class of redeemable B Shares, expected to be redeemed at 9.72 pence per existing ordinary share, subject to approval at the General Meeting on 16 July 2026. This capital return is funded by profits realised from the 100 New Bridge Street sale and represents over half of the £31 million gain from that transaction.

Additionally, a 100-for-105 share consolidation of ordinary share capital is proposed, also subject to General Meeting approval, to maintain share price comparability following the capital return. Such consolidations are standard practice for UK-listed companies undertaking capital returns that adjust per-share economic value. This £12 million B Share return complements the previously announced £5 million share buyback programme, which began on 8 June 2026. As of the update, 1,109,980 shares have been repurchased at a weighted average price of 189.71p per share. Combined, these initiatives represent up to £17 million in shareholder returns from a single asset sale.

Final Dividend of 1.00p Per Share Proposed, Bringing Full-Year Total to 2.50p, Payable 3 August 2026

Helical has proposed a final dividend of 1.00 pence per share for the year ended 31 March 2026, subject to shareholder approval at the AGM on 16 July 2026. If approved, payment is scheduled for 3 August 2026, bringing the total dividend for the fiscal year to 2.50 pence per share, including interim and final payments.

Dividend payments remain a key component of total shareholder return for UK-listed property companies. The confirmed payment date provides near-term income certainty pending approval. The total annual dividend, combined with the capital return and buyback, reflects Helical’s disciplined capital allocation strategy. The company did not disclose dividend cover or forward dividend policy for the financial year starting April 2026 in this update. Income-focused investors will monitor whether distributions are maintained or increased alongside the company’s development and letting progress.

London Office Supply Shortage and Helical’s Development Pipeline Support Continued Leasing Strength

The update underscores a core investment thesis: a severe undersupply of prime, best-in-class office space in central London. CEO Matthew Bonning-Snook emphasised his belief that this shortage will persist for years. This structural dynamic, coupled with sustained demand from financial services, technology, and creative sectors, supports rental growth and low vacancy in top-tier London offices despite broader market headwinds.

Helical’s competitive edge stems from its experience navigating complex planning, strong contractor and lender relationships enabling accretive financing, and flexibility accessing new sites via partnerships. The pipeline—with assets completing in 2026 (Brettenham House and 10 King William Street) and longer-term projects (Delta Paddington and Southwark)—provides a steady flow of product over multiple years, spreading letting risk. However, significant speculative development exposure remains, with leasing outcomes at Brettenham House and 10 King William Street yet to be confirmed.

Share Price and Investor Outlook Following July 2026 Trading Update

The immediate impact of the trading update on Helical’s share price was unclear at the time of writing. The update contains several critical points for investors in Helical and the UK commercial property sector. Completion of the £333 million sale removes a major execution risk, while leasing progress at The Bower demonstrates strong portfolio performance with occupancy near full capacity and income growth. The proposed capital return and buyback reflect management’s confidence in the balance sheet and commitment to shareholder returns.

Risks include Helical’s significant speculative office development exposure, with major projects at 10 King William Street, Brettenham House, and Delta Paddington dependent on successful leasing to realise expected returns. Potential deterioration in occupier demand, macroeconomic conditions, or delays in planning and construction could impact timing and returns. The Gateway 2 approval process for the Southwark PBSA scheme also poses execution risk, with approval anticipated but not yet secured. The company did not provide updated net asset value, loan-to-value ratio, or valuation metrics in this update.