Helvetica: Numerous sales of the two commercial funds

The Helvetica Swiss Commercial Fund (HSC Fund) reports a stable occupancy rate of 95 % for 2024 and a reduction in the leverage ratio to 18.36 %. The distribution of CHF 5.35 per unit is to remain the same as in the previous year. The strategic objectives have been achieved, according to the statement.

The reduction in debt financing was achieved through the sale of five properties with a market value of CHF 98 million.

These were the objects:

• Chiasso, Via Livio 1 and Via Motta 24,
• Sissach, Gelterkinderstrasse 30,
• Dättwil, Täfernstrasse 3/5,
• Arbon Industriestrasse 23 and
• Zurich, Max-Högger Strasse 6.

Discounts of CHF 9.7 million were accepted on the carrying amounts of the sales. In December 2024, the sale of the properties at Arbon, St. Gallerstrasse 15 and 17 and Triengen, Kantonsstrasse 115 was also notarized.

Black zero

The lower rental income led to a decline in net income from CHF 27.5 million to CHF 24.4 million. Realized income halved from CHF 30.1 million to around CHF 15 million as a result of the aforementioned sales loss (previous year: CHF +2.6 million). After a valuation loss of CHF 14.4 million (previous year: CHF -17.2 million), total net income amounted to CHF 0.3 million. In the previous year, there had been an overall profit of CHF 12.8 million. The value adjustments had already been recognized in the first half of 2024 and reflected additional maintenance costs and higher discount rates, according to Helvetica.

The market value of the portfolio fell by a total of CHF 106 million to CHF 614 million, mainly due to the sales. The fund also had to absorb redemptions of more than 28,000 units, of which a good 9,300 relate to investments in the sister fund Helvetica Swiss Opportunity Fund (HSO), with which the fund will be merged as reported.

HSO with a loss of 16.7 million francs

The HSO fund just mentioned shrank considerably in the 2024 financial year and as part of the preparations for the merger. The fair value of the portfolio fell by CHF 130 million to CHF 196 million, mainly as a result of disposals. Losses of CHF 21.4 million were realized as a result of the disposals, causing the realized profit to fall from CHF 9.9 million to CHF -12.5 million. The overall result was also affected by write-downs and tax effects totaling CHF -4.2 million (previous year: around CHF -10 million), which increased the previous year's loss from CHF 9.8 million to CHF -16.7 million. Write-downs on the existing portfolio amounted to CHF 4.9 million on a like-for-like basis and reflect - similar to the HSC fund - additional maintenance costs. The discount rates reportedly remained the same.

According to Helvetica, 2024 was a "solid year in operational terms". The occupancy rate had improved to 99 % with a WAULT of 4.5 years by the end of the year and the leverage ratio was massively reduced from 40.34 to 15.27 %. According to the fund management's announcement, the distribution remains constant at CHF 5.50 per unit. The net income reported by the fund decreased only moderately to CHF 8.8 million compared to the previous year (CHF 9.9 million).

The fund has sold the properties at Furtbachstrasse 16/18 in Buchs and Krummenaichstrasse and Steinacherstrasse 101 in Wädenswil-Au as well as a large commercial site in Pratteln, which IB has already reported on several times (e.g. here). (aw)