HSC real estate funds: profit increase in the first half of the year
The Helvetica Swiss Commercial (HSC) real estate fund reported total income of CHF 11 million for the first half of 2019, over 20% more than the same period last year.
Net income before liquidation taxes was CHF 8.9 million, compared with CHF 7.4 million in the same period last year, according to Helvetica Property Investors. The increase of 1.5 million, or 19.6%, resulted primarily from higher rental income due to the acquisition of new properties, the HSC fund management company says. Total income for the biennium was reportedly 11 million as of June 30, 2019, up 1.9 million or 21.1% from the same period last year.
The operating profit margin decreased by 11.2% from 77.6% as of June 30, 2018 to 66.4% due to accrued investments, the statement added. In the first half of the year, 1.5 million was invested in maintenance and repairs, compared with only 0.1 million in the same period last year, it said.
Fund assets crack 500 million mark
With the funds from the capital increase in March, HSC acquired two properties, bringing the portfolio to 24 properties. Total fund assets amount to 513 million, compared with 373 million in the prior-year period.
The market value of the portfolio is estimated at 487 million as of June 30, 2019, up from 264 million in the first half of 2018. The average lease term increased by 37% from 3.3 years to 4.5 years.
According to Helvetica Property Investors, rental income was around 12.94 million. In the same period of the previous year, the figure was around 6.88 million.
In July, the fund resold a property in Vevey, which it had acquired in July 2018 for 6.2 million, for 8.9 million. The gain of 2.6 million was included in the valuation as of June 30, it adds.
In September, the fund management company plans to carry out a capital increase for the HSC, with the proceeds to be used to purchase additional properties. The listing of the fund on the SIX Swiss Exchange is also planned for the fourth quarter. (ah)
