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Helvetica Property
/ Key word(s): Annual Results/Merger
Helvetica Swiss Opportunity Fund shows net asset value in financial year 2023: significant increase in rental income
05.03.2024 / 06:30 CET/CEST
Zurich, 5 March 2024 – The Helvetica Swiss Opportunity Fund (HSO Fund) has closed financial year 2023 with a stable result. The preliminary application for a merger with the Helvetica Swiss Commercial Fund (HSC Fund) has been submitted to the FINMA.
- Rental incomes increase by 21%.
- Rent default rate is at a low 3.6 per cent.f
- The remaining term of existing tenancies (WAULT) remains at a high level of 5.65 years.
- The preliminary application for a merger with the HSC Fund was submitted to FINMA in February 2024.
Portfolio management
Taking into account a market-related valuation adjustment of -2.9 per cent, the market value of the portfolio grew by 1.3 per cent overall to CHF 326 million. In the reporting period, a commercial property in the Berne region was acquired for CHF 13 million, contributing CHF 0.9 million to rental income. At the end of financial year 2023, the fund had a portfolio of 18 existing commercial properties, 95 per cent of which are located in German-speaking Switzerland, with 66 per cent generating rental income from retail, commercial and office use, 14 per cent from storage space and 9 per cent from logistics space and educational facilities. As a result of Helvetica’s active management, including the conclusion of new or rental agreements or the extension of existing ones, the adjustment of rents to the rise in the national consumer price index and the acquisition of the aforementioned property, rental income increased by 21 per cent or CHF 3 million to just under CHF 18 million in financial year 2023. Gross actual return subsequently increased to 5.70 per cent. The low rent default rate of 3.6 per cent and the high WAULT of 5.65 years underline the demand and intrinsic value of the property portfolio.
Financing strategy
In accordance with the financing strategy adapted to the current market opportunities, new long-term liabilities have been concluded. 9 per cent of liabilities have now been tied up with a term of more than one year. Planned sales in the current year should bring the debt financing ratio of 40 per cent within the target range of 25 to 28 per cent.
Distribution of dividend
The distribution of dividend for financial year 2023 is CHF 5.50 per share, corresponding to a sound distribution yield of 5.34%. The distribution will be made with a value date of 26 April 2024 (ex-date 24 April 2024).
Fund shares
323,927 shares were cancelled at the end of financial year 2023, which corresponds to 21 per cent of the shares in circulation. The shares cancelled as per 31 December 2023 will be repaid no later than March 2025.
Events after the balance sheet date
The sale of a property in Wädenswil (ZH) which was notarised as at the end of 2023 will reduce the debt financing ratio to around 37 per cent. Further strategic property sales are planned.
Merger with Helvetica Swiss Commercial Fund
With the decision of the Board of Directors of Helvetica Property Investors AG on 10 August 2023, which was also made known to the public on 1 November 2023, the HSC Fund (acquiring fund) and the HSO Fund (transferring fund) are to be merged. Implementation is planned up to the end of the second quarter of 2024, subject to the approval of FINMA. The preliminary application for the merger was submitted to FINMA in February 2024. A prior listing of the shares of HSO Fund is currently no longer planned, although Helvetica – in consultation with FINMA – reserves the right to make adjustments with regard to the planned procedure and timetable for the merger. Depending on market developments, the fund management reserves the right to merge the two funds at a later date.
For more details, facts and figures, see the 2023 Annual Report of the HSO Fund: https://www.helvetica.com/en/products/download-center
Notes
Key Figures HSO Fund
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Key data
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Notes
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as of 31.12.2023
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as of 31.12.2022
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Securities number
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43472505
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43472505
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ISIN
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CH0434725054
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CH0434725054
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Initiation date
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29.11.2019
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29.11.2019
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Issued units
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Number
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-
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312 500
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Outstanding units
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Number
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1 562 500
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1 562 500
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Redeemed units
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Number
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-
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-
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Net asset value per unit1)
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CHF
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114.94
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121.15
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Discount rate (real / nominal)
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%
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3.50 / 4.80
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3.38 / 4.41
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Balance Sheet
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as of 31.12.2023
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as of 31.12.2022
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Market value of the properties
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CHF
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1
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326 070 000
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321 819 000
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Gross Asset Value (GAV)
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CHF
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332 101 994
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341 735 619
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Debt ratio2)
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%
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45.92
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44.61
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Residual term debt financing2)
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Years
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8
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0.46
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0.21
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Interest rate debt financing2)
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%
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8
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2.33
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1.60
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Net Asset Value (NAV)1)
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CHF
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179 596 611
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189 303 200
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Income statement
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as of 31.12.2023
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as of 31.12.2022
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Rental Income and Income from ground rent
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CHF
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17 863 318
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14 754 238
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Net income
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CHF
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9 876 193
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10 244 288
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Weighted average unexpired lease term (WAULT)2)
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Years
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5.65
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6.96
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Maintenance and repairs
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CHF
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500 976
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225 282
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Target rental income p.a.3)
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CHF
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18 584 084
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17 193 399
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Gross target yield
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%
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5.70
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5.34
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Gross actual yield
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%
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5.40
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5.21
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Key financial figures AMAS2)
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as of 31.12.2023
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as of 31.12.2022
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Return on investment
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%
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-0.05
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4.43
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Distribution yield
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%
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12
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5.34
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5.39
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Distribution per unit
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CHF
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12
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5.50
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6.15
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Payout-Ratio
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%
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12
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87.01
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93.80
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Return on equity (ROE)
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%
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-0.05
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4.21
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Return on invested capital (ROIC)
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%
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0.83
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2.73
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Premium/discount
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%
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-10.39
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-5.90
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unit price per fund unit
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CHF
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103.00
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114.00
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Operating profit margin (EBIT margin)
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%
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72.84
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73.88
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Debt financing ratio
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%
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40.34
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40.93
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Rent default rate
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%
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1
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3.61
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2.82
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Total expense ratio TERREF GAV
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%
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0.96
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0.96
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Total expense ratio TERREF MV
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%
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1.91
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1.67
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Performance
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%
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-4.36
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-2.37
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1) Values as at 31.12.2021: Net asset value per unit CHF 122.12 / net fund assets (NAV) CHF 152 648 197.
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2) The key figures were calculated in accordance with AMAS "Fachinformation Kennzahlen von Immobilienfonds" dated 13.09.2016 (as at 31.05.2022).
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3) Annualized value based on balance sheet date. As at the reporting date, 98.1 % of rental income is indexed and therefore linked to inflation.
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Past performance is no guarantee of future performance and does not take into account any commissions and costs charged on subscriptions and redemptions of units.
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Ticker Symbol HSO; security 43 472 505; ISIN CH0434725054.
About Helvetica
Helvetica Property Investors AG, founded in 2006, is a leading real estate fund and asset management corporation regulated by FINMA. We offer institutional investors and private investors lasting value through active and long-term ownership of secure and stable real estate assets with solid returns. With our fully integrated real estate asset platform, we cover the entire value chain, develop customer-specific investment solutions, and provide standardized investment products: The listed HSC Fund for commercial property, the HSO Fund for special commercial property, and the HSL Fund for residential property invest in attractive locations across Switzerland with good transport connections to regional economic centers. Our commitment to a sustainable future takes into account ESG requirements along the entire real estate life and investment cycle, and is formally integrated at fund level.
www.helvetica.com
Helvetica Swiss Opportunity Fund
The HSO Fund is a Swiss real estate fund open only to qualified investors. The HSO Fund invests in commercial special real estate in the Swiss economic centers. The focus is on fully leased properties with long-term leases and few tenants that generate stable income. The investment objective is mainly to preserve the value of the properties over the long term and to distribute appropriate income. The fund units are tradable over the counter. The HSO Fund is licensed by the Swiss Financial Market Supervisory Authority FINMA. Ticker Symbol HSO; Valor 43 472 505; ISIN CH0434725054
Helvetica Swiss Commercial Fund
The HSC Fund is a Swiss real estate fund listed on the SIX Swiss Exchange and open to all investors. The HSC Fund invests in commercial and industrial properties in the most important economic areas of Switzerland. The fund's portfolio is geared towards long-term value preservation and features high location and property quality as well as broad diversification. The investment objective is primarily the long-term preservation of substance and the distribution of appropriate income. The HSC Fund is authorized by the Swiss Financial Market Supervisory Authority FINMA. Listing SIX Swiss Exchange; ticker symbol HSC; Valor 33 550 793; ISIN CH0335507932
Disclaimer
This media release does not constitute a prospectus within the meaning of Art. 35 et seq. of the Federal Act on Financial Services or Art. 27 et seq. of the Listing Rules of SIX Swiss Exchange Ltd, nor a basic information sheet. It does not constitute an offer or a recommendation to subscribe for or redeem fund units but is intended solely for information purposes. This media release may contain forward-looking statements that are subject to uncertainties and risks and may change. Historical performance is no guarantee of current or future performance. The performance data do not take into account any commissions and costs charged on the subscription and redemption of units. The documents that are solely relevant for an investment decision, the prospectus with integrated fund contract as well as the current annual report can be obtained free of charge from the fund management company. This media release is not addressed to persons resident and/or domiciled outside Switzerland. In particular, this media release may not be made available or handed over to US persons within the meaning of the US Securities Act or US tax regulations, nor may it be distributed in the USA.
In case of doubt, the German version shall prevail.
End of Media Release
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