Helvetica examines merger of HSC with Opportunity Fund
Helvetica's Swiss Commercial Fund wants to reduce its debt ratio through real estate sales and could merge with its sister fund HSO. This was announced by the fund management company together with the semi-annual figures for the commercial fund.
The annualized rental income of the Helvetica Swiss Commercial Fund grew by CHF 0.5 million to CHF 43.8 million in the first half of the year, excluding acquisitions. Rent adjustments and a slight increase in the occupancy rate were responsible for the increase. On its own, rental income for the half-year rose by CHF 0.1 million to CHF 21.3 million and other income from CHF 0.2 million to CHF 0.3 million, resulting in an increase in total income from CHF 21.4 million to CHF 21.7 million. On the other hand, expenses also increased, by CHF 1.5 million to CHF 7.9 million, mainly due to higher financing costs for interest-bearing liabilities, which were subject to an average interest rate of 1.56 %.
Devaluation by 6.8 million
In the first half of the year, the fund devalued its portfolio by 0.8 % or CHF 6.8 million to CHF 750.0 million. Market value adjustments less capitalized investments were responsible for this. After deducting liabilities and liquidation taxes, net fund assets amounted to CHF 491.5 million, which corresponds to a decrease of CHF 17.4 million compared to the previous year. The debt ratio rose slightly to 30.71 %.
Investment return at 1.19%
In the first half of the year, the price of the fund units fell by CHF 9.2% gross from CHF 98.00 to CHF 89.00. Taking into account the distribution of CHF 5.35 for the 2022 financial year paid out in the first half of the year, this corresponds to a net performance of -4.0%. The discount on the net asset value is 21.4 %. The return on equity fell from % 3.12 to % 1.14 compared to the first half of 2022, while the return on investment amounted to 1.19 % - a decrease of 2.08 percentage points compared to the same period of the previous year.
Sales for 30 million planned
In order to reduce the leverage ratio, the fund management company plans to sell properties worth CHF 30 million. The aim is to reduce the leverage ratio to around CHF 281,000 by the end of the year in a first step and then to reduce it to CHF 251,000 in a further step with additional sales. The fund management expects the distribution for the 2023 financial year to be on a par with previous years.
Merger with HSO under review
Helvetica has also announced that the HSC Fund could merge with the Helvetica Swiss Opportunity Fund. This measure would create "a more diversified, listed commercial fund of over CHF 1 billion". HSO invests in Swiss logistics properties, data centers and specialist stores. HSO's existing portfolio is currently worth CHF 332.5 million. (aw)
