Helvetica Property Investors AG
Helvetica Swiss Opportunity Fund – Occupancy rate at a very high level
Helvetica Property
/ Key word(s): Half Year Results/Real Estate
Press release August 22, 2023 Zurich, August 22, 2023 – The Helvetica Swiss Opportunity Fund (HSO Fund) was again successful in a challenging market environment in the first half of 2023. The portfolio's market value grew by 3.3 percent to approximately 332.5 million Swiss francs. Annualized rental income increased by 1.4 million Swiss francs to a total of CHF 18.2 million. The portfolio now consists of 18 high-quality properties in good locations.
New acquisition and consistency in challenging market environment Despite the existing uncertainty in the market, the Helvetica Swiss Opportunity Fund showed consistency in the first half of 2023. In January, a logistics property in Studen in the canton of Berne was acquired with the remaining proceeds from the capital increase carried out in the 2022 financial year. The property with creditworthy tenants, long-term secured rental income of around 1.0 million Swiss francs and a gross actual yield of 6.9 percent ideally complements the portfolio. The fund now has a solid portfolio of 18 properties. Annual rental income grew by 1.4 million Swiss francs from 16.8 million Swiss francs to 18.2 million Swiss francs. During the reporting period, rent adjustments due to increases in the national consumer price index totaled around CHF 0.4 million annually. Overall, the portfolio grew by 3.3 percent from 321.8 million Swiss francs to 332.5 million Swiss francs. The occupancy rate is currently at a consistently high level of 97.4 percent. This high occupancy rate is evidence of Asset Management's active efforts to maintain first-class tenant relationships and continued commitment to outstanding property management and illustrates the robust performance of the Helvetica Swiss Opportunity Fund in a challenging market environment.
Income statement – higher revenues also offset by higher costs In the reporting period, rental and building lease income of CHF 8.9 million was generated, which corresponds to an increase of 2.5 million Swiss francs. The increase is attributable to the properties acquired in the previous year and at the beginning of the year. In the first half of 2023, expenses of 3.9 million Swiss francs were incurred, corresponding to an increase of 1.5 million Swiss francs. The increase is due to higher interest costs on interest-bearing liabilities, which bore an average interest rate of 1.89 percent in the reporting period. The increase compared to the previous period is due to the interest rate increases of the Swiss National Bank SNB in 2022 and 2023. In unrealized capital gains, devaluations on the portfolio of 2.9 million Swiss francs were recognized, while in the first half of 2022 revaluations of 1.0 million Swiss francs were recognized.
Statement of assets and liabilities – market values increased thanks to additions to the portfolio Total fund assets amounted to 340.5 million Swiss francs as of the reporting date. The market values of the properties increased by CHF 10.7 million to 332.5 million Swiss francs due to the purchase of the Studen property (notarization already in 2022, transfer of ownership in 2023), while cash and cash equivalents decreased by 12.0 million Swiss francs to just under 1.9 million Swiss francs due to the purchase and the distributions. Other assets increased by 0.3 million Swiss francs to 2.9 million Swiss francs. After deduction of liabilities of 142.9 million Swiss francs and liquidation taxes of 15.7 million Swiss francs, net fund assets were 7.5 million Swiss francs lower than in the previous year at 181.8 million Swiss francs. The debt financing ratio is 41.05 percent.
Performance – pressure from the market noticeable The net asset value per unit decreased by CHF 4.77 from CHF 121.15 to CHF 116.38 as of June 30, which, taking into account the 2022 distribution of CHF 6.15, corresponds to an investment return of 1.19 percent, a decrease of 1.75 percentage points compared to the first half of 2022. The return on equity decreased by 1.67 percentage points to 1.13 percent, mainly due to devaluations.
Outlook – Merger of HSO Fund and HSC Fund as a strategic option The HSO Fund was able to benefit from rising rents for commercial rental space in the first half of 2023. Due to inflation, rent adjustments of 0.4 million Swiss francs were implemented in the reporting period. The continued positive economic development in Switzerland and a very high indexation rate of over 98 percent lead us to expect further growth in rental income, which will have a positive impact on the fund's earnings. With regard to future interest rate developments, the fund management shares the prevailing view that there will be at most one more interest rate step in 2023, after which the yield curve will flatten out. Therefore, stabilization on the transaction market and increased activity in 2024 compared with the current year are assumed.
In view of the prevailing market conditions, the fund management company has decided not to carry out any further capital increase for the time being. As part of its ongoing efforts to optimize the portfolio, the Company is considering, subject to FINMA approval, the merger of the HSC Fund with the HSO Fund. This merger could create a larger, more diversified business and commercial real estate fund with a portfolio of over CHF 1 billion. Helvetica is currently conducting a feasibility study to assess the benefits of this strategy.
The Half-Year Report 2023 of the HSO Fund is available on the company’s website as well as on Swiss Fund Data. Media contacts
About Helvetica About Helvetica Swiss Opportunity Fund Ticker Symbol HSO; security 43 472 505; ISIN CH0434725054 Disclaimer
End of Media Release |
Language: | English |
Company: | Helvetica Property |
Brandschenkestrasse 47 | |
8002 Zürich | |
Switzerland | |
Phone: | +41 43 544 7080 |
E-mail: | office@helvetica.com |
Internet: | www.helvetica.com |
ISIN: | CH0495275668 |
Valor: | 49527566 |
Listed: | SIX Swiss Exchange |
EQS News ID: | 1708199 |
End of News | EQS News Service |