HSL Fund presents first half-year results
Since its launch, the Helvetica Swiss Living Fund (HSL Fund) has built up a real estate portfolio worth CHF 100.8 million.
Helvetica Swiss Living Fund (HSL Fund), which was launched in November 2019, has presented its first half-year results. According to the results, the fund has now built up a portfolio of 14 residential properties with 242 apartments and one small commercial property worth CHF 100.8 million.
The annual target rental income is 4.5 million, of which 93% is from residential use. Because of this high proportion, the portfolio is extremely resilient to any potential negative impact on rental income related to the Covid 19 pandemic, according to fund management. To date, there have been no requests for rent deferrals nor for permanent rent reductions, it said.
In the extended first half of the year, the fund recorded rental income of 1.8 million. Vacancy in the acquired properties decreased from around 15% to 13.1%. The occupancy rate as of June 30, 2020 is put at 86.9%. As of September, the existing portfolio is expected to have an occupancy rate of over 90%, the fund management company said.
Net income for the reporting period was reported at 2.0 million. The valuation of the property portfolio resulted in an unrealized gain of 2.3 million. The fund recorded a total profit of 4.1 million.
The fund management announces its intention to further expand the residential real estate portfolio. To this end, a capital increase is to be carried out in the fourth quarter. Even though the impact of the Corona crisis on the Swiss economy cannot yet be clearly assessed from today's perspective, it is assumed that the HSL Fund with its distinctive residential real estate portfolio will not be negatively affected. (ah)
