Helvetica funds increase distribution
The three real estate funds of Helvetica Property Investors performed well in the 2022 financial year. The fund management increases the distributions at HSO Fund, HSC Fund and HSL Fund by five centimes each.
HSO Fund grows through acquisitions
The Helvetica Swiss Opportunity Fund (HSO Fund) grew significantly in the financial year and currently comprises a portfolio of 17 properties with a market value of CHF 322 million (+38%). In the past year, six properties with a total of around 37,500 sqm of rental space were added. Thanks to the new acquisitions, actual rental income (annualized) increased by 35.5% to CHF 16.8 million (previous year: CHF 12.4 million). The occupancy rate at the end of 2022 was 97.6% (previous year: 96.7%).
Net income increased from CHF 8.23 million to CHF 10.24 million, but total income slumped from CHF 18.72 million to CHF 8.03 million. The distribution yield is 5.4% as of 12/31/2022, and the investment yield reaches 4.4%. The distribution for 2022 is expected to increase from CHF 6.10 to CHF 6.15 per unit.
The fund management is planning further growth for 2023. According to Helvetica Property Investors, there are currently several attractive properties in the pipeline, the acquisitions of which could further significantly increase the quality and distributive capacity of the portfolio. If market conditions are good, a further capital increase will be considered.
HSC Fund expands overall success
Although the Helvetica Swiss Commercial Fund (HSC Fund) did not make any acquisitions in fiscal year 2022, it nevertheless increased rental income and boosted portfolio value.
The fair value of the portfolio increased by 0.9% to CHF 756.2 million (previous year: CHF 749.8 million), and the occupancy rate reached 95.1% compared to 93.1% in the previous year. Due to a noticeable increase in demand for rental space, annual rental and building lease income would have increased by CHF 0.7 million to CHF 42.7 million.
The Fund's net income increased from CHF 27.74 million to CHF 29.30 million, and total income increased from CHF 25.91 million to CHF 28.03 million. The distribution yield was 5.5%; and the investment yield reached 5.8%. The distribution for the fiscal year will be CHF 5.35 per unit, up five centimes from the previous year. In 2023, it is expected to increase by a further five centimes to CHF 5.40.
HSL Fund increases fund assets by over 300 million
The residential-focused Helvetica Swiss Living Fund (HSL Fund) increased its portfolio by 63% from CHF 501 million to CHF 818 million during 2022. Currently, the fund holds 62 residential properties with 1,850 residential units in its portfolio (PY: 41 properties). Annualized rental income increased by 58% from CHF 18.3 million to CHF 28.9 million. The rent default rate decreased from 7.73% to 5.80%.
The net income of the fund increased from CHF 11.98 million to CHF 15.03 million and the total income increased from CHF 19.74 million to CHF 24.35 million. The investment return reached 5.9%, and for fiscal year 2022 the distribution is expected to increase from CHF 3.40 to CHF 3.45 per unit.
The fund management company expects rental income to rise in 2023 and intends to remain on a growth path. Further capital raisings are targeted, Helvetica Property Investors said. In 2023, the distribution is expected to increase to CHF 3.50 per fund unit, and a listing of the HSL Fund on the SIX Swiss Exchange is targeted by the end of 2024. (ah)
