Helvetia (CH) Swiss Property Fund with significant increase in income
However, the overall performance of the real estate fund in the 2022/23 financial year is significantly below the previous year's figure.
The Helvetia (CH) Swiss Property Fund significantly increased its net income in its fourth financial year - from CHF 17.94 million to CHF 22.59 million. This corresponds to net income per unit of CHF 2.78, according to Helvetia. Rental income rose to CHF 36.93 million (previous year: CHF 27.36 million) and the rental loss rate fell to 2.48% (previous year: 2.53%).
Total income amounted to CHF 0.16 million and was therefore significantly lower than the previous year's figure of CHF 22.86 million. According to Helvetia, the reason for the decline is the devaluation of the property portfolio: unrealized capital losses amounted to CHF -22.02 million, after unrealized capital gains of CHF +8.45 million in the 2021/22 financial year. The value adjustment is due to the rise in interest rates and the resulting increase in discount rates. Despite the higher financing costs, the distribution remains stable at CHF 2.75 per share.
Rising rental income expected
For the current financial year, the fund expects additional rental income of CHF 1.12 million due to the reference interest rate increase, which is an increase of CHF 2.95% compared to the target rental income. The further increase in the interest rate on December 1 of this year should also have a positive impact on rental income, Helvetia forecasts.
The market value of the portfolio has exceeded the billion threshold this year with the purchase of eight properties from Helvetia Insurance, reaching CHF 1.078 billion. According to Helvetia, this creates the conditions for a listing on the SIX Swiss Exchange "under favorable market conditions". This is planned for the first half of 2024. (ah)
