Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading

Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading

Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

Continue Reading

Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

Continue Reading

Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Categorized | Property

Property group Helical bucks trend with positive results


Posted on November 24, 2016

Helical, the commercial property company whose share price has been hardest hit in the sector since the Brexit vote, surprised the market on Thursday with positive first-half results.

Unlike larger peers, which have suffered declines in the value of their assets after the EU referendum, Helical said its net asset value per share had risen by 3 per cent in the first half. This was boosted by the group’s London office portfolio, where valuations were up 5.3 per cent.

Shares in Helical rose 11 per cent on Thursday morning, making it the best performer in the FTSE All-Share index and reversing part of the 35 per cent drop since the June EU vote. 

Gerald Kaye, chief executive, acknowledged “a background of some uncertainty in the UK real estate market and widespread debate as to whether the ‘property cycle’ has peaked or is merely pausing”. 

But he added: “I am confident that we will continue to attract occupiers.”

Helical, which has a market capitalisation of £310m, announced that it had pre-let 59,000 square feet at its The Bower development in the Old Street area of London to WeWork, the fast-expanding co-working provider.

Analysts had listed Helical as one of the property companies at risk from any drop in demand for London offices, with London accounting for almost half of its portfolio. The fear is that businesses may halt expansion plans or relocate staff elsewhere as the UK’s status in Europe changes. 

But Helical said it had increased its net rental income by 18 per cent from a year ago to £24.6m in the six months to the end of September. 

Pre-tax profits stood at £31.1m, down from £85.9m a year earlier as a result of losses on development projects. 

Larger peers such as British Land, Land Securities and Great Portland Estates — another London-focused property developer — have all reported declines in their net asset values since the EU referendum.