Helvetica funds increase rental income

The Helvetica Swiss Opportunity Fund (HSO Fund) purchased three properties worth CHF 48.1 million in the first half of 2022, increasing the fair value of the portfolio to CHF 283.3 million (end of 2021: 234.0 million). The net income of the fund reached CHF 5.2 million compared to CHF 3.1 million in the same period of the previous year. As a result of the acquisitions, rental income almost doubled: it increased by 97 percent from CHF 3.3 million to CHF 6.4 million compared to the first half of 2021. The three newly acquired properties contributed CHF 2.2 million.

The annual target rental income of the real estate portfolio is CHF 15 million (previous year: 11.4 million), and Helvetica Property Investors puts the occupancy rate at 97.1 percent (previous year: 95.9%). As of the balance sheet date on June 30, the remaining term of the rental contracts was 6.8 years; the remaining contract term of the purchased properties is 8.5 years.

In the second half of the year, the fund management wants to further expand the portfolio and has an "interesting property pipeline", the fund management informs. In July, the HSO Fund acquired three properties with a market value of CHF 40 million. Currently, the focus is also on lease extensions. Negotiations on contract extensions for 1,600 sqm2 over five years are underway. Helvetica believes that thanks to the built-in inflation protection of 99 percent of rental income, long-term earnings will be higher than previously assumed. Further growth steps will be analyzed critically: "Investments will only be made if returns in line with the market can continue to be achieved," says the fund management.

Occupancy rate of the HSC Fund increases

The Helvetica Swiss Commercial Fund (HSC Fund), which invests in commercial investment properties, did not purchase any properties in the first half of the year, but nevertheless increased its rental income: it climbed by almost three percent to CHF 21.3 million. At 93.4 percent, the occupancy rate was slightly higher than at the end of 2021 (93.1%).

The fair value of the existing portfolio, which comprises 35 properties, increased to CHF 752.9 million (end of 2021: CHF 749.8 million). The gross actual return remained stable at 5.7 percent, while the gross target return is six percent. The HSC Fund reported net income of CHF 15.1 million, up 4.6 percent from the previous year (14.4 million). Total income was CHF 15.7 million - an increase of 24 percent over the previous year.

By the end of the financial year, the fund management wants to increase the occupancy rate to over 94 percent. It says it is currently negotiating a five-year lease extension for a 2,200-square-meter space in Zurich. In terms of inflation, Helvetica Property Investors says 98 percent of rental income is indexed. This means that income could be slightly higher in the long term than previously assumed.

HSL Fund purchases 13 properties at

The Helvetica Swiss Living Fund added 13 residential properties with a total value of 210 million CHF to its portfolio in the first half of 2022. It now comprises 54 properties with 1,630 apartments and has a market value of CHF 715 million. Helvetica Property Investors puts the market value at CHF 715.1 million, an increase of 43 percent compared to the end of 2021 (500.8 million).

Due to the portfolio expansion, rental income increased significantly: it climbed by 135 percent to CHF 11 million (previous year: CHF 4.7 million). Annual actual rental income reached CHF 25.1 million, up from CHF 18.3 million in the previous year. The occupancy rate remained stable at 94.9 percent. Net income in the first half of 2022 was 8.9 million (previous year: 3.5 million). Total income amounted to CHF 11.6 million in the reporting period, compared to CHF 5.7 million in the same period of the previous year.

In the second half of the year, the fund management intends to further expand the portfolio. In June, the purchase agreement for a property with 48 apartments in Biel was notarized (purchase price 16 million), and the transfer of ownership is scheduled for the fourth quarter. (ah)