HSC fund yields 5.7%
Helvetica Swiss Commercial Fund (HSC) generated an investment return of 5.7% and a return on equity of 5.6% in the 2018 financial year, fund management company Helvetica Property Investors reports.
Helvetica Swiss Commercial (HSC) was launched at the end of 2016, making 2018 the fund's second full financial year. In the process, the portfolio grew by twelve to 22 properties with a market value of CHF 427 million (previous year: 199 million). According to Helvetica Property Investors, the properties are located in good Swiss economic regions and have sustainable earnings. It said it had benefited from a general increase in demand for office and commercial space in the regions covered by the HSC's investment strategy.
Total fund assets increased by 240 million to 445 million over the course of the year. As of the end of December 2018, the fund recorded a net asset value per unit of CHF 110.00.
Net income rose from around two-thirds or 5.7 million compared with the previous year to 14.3 million. Taking into account the adjusted figures for the previous year, this resulted in an increase of 8.7 million, according to the fund management company. According to the information, the main contributor to the positive result was the increase in rental income by 62.7% (7.1 million). The net fund assets amount to 306 million (previous year: 133 million ).
A dividend of CHF 4.00 per unit - totaling 11.1 million - is to be distributed for fiscal 2018 on March 28, 2019. This corresponds to a distribution yield of 3.60% with a payout ratio of 77.6%. In the previous year, the dividend was CHF 3.50.
For the 2019 financial year, an increase in the dividend and a listing of the HSC on the SIX Swiss Exchange are planned. In addition, the fund management company plans to further expand and diversify the portfolio; a focus is to be placed on property management and optimization in the portfolio. Further capital increases for the purchase of additional properties are also planned. (ah)
