Total assets of the Helvetica Swiss Opportunity Fund continue to grow in the first half year to CHF 309 million

Press release August 24, 2022

Press release (PDF)

• Acquisition of three attractive properties worth CHF 48.1 million
• Real estate portfolio grew by 21.3% to CHF 283.8 million
• Target rental income (annualized) of CHF 15 million 
• Net income increased by 67.9% to CHF 5.2 million compared to H1 2021
• Total fund assets increased by 25.6% to CHF 309.1 million compared to year-end 2021
• High occupancy rate of 97.1% and remaining lease term of 6.8 years 
• Net asset value per unit at CHF 119.43 as of June 30, 2022 

Details on the first half of 2022
Due to the high investor demand, the fund management of the Helvetica Swiss Opportunity Fund carried out a further capital increase of around CHF 40 million in the first half of the year. The real estate portfolio was increased to a value of CHF 283.8 million (31.12.2021: CHF 234.0 million) through the purchase of three properties worth CHF 48.1 million. The total remaining lease term of the acquired properties is 8.5 years. The fair value of the real estate portfolio thus increased by 21.3% to CHF 283.8 million compared to year-end 2021 (31.12.2021: CHF 234.0 million).

As of the balance sheet date June 30, the annual target rental income of the real estate portfolio amounted to CHF 15 million (30.06.2021: CHF 11.4 million). The occupancy rate of 97.1% is at a very high level (30.06.2021: 95.9%). The fund has various long-term rental agreements with the most important anchor tenants and was able to extend contracts for 1,100m² of rental space by 5 years. The remaining term of the leases as of June 30 was 6.8 years (30.06.2021: 7.7 years). 

Income statement
As a result of the further portfolio growth, rental income increased by 97% to CHF 6.4 million in the reporting period compared to the first half of 2021 (30.06.2021: CHF 3.3 million). The acquisition of the three properties mentioned above contributes annual rental income of around CHF 2.2 million. Accordingly, income could be increased by 70.9% to CHF 7.6 million (30.06.2021: CHF 4.4 million), also compared to the same period of the previous year. Finally, net income increased by 67.9% year-on-year to CHF 5.2 million (30.06.2021: CHF 3.1 million). 

Balance sheet
The total assets of the HSO Fund reached CHF 309.1 million as of June 30, 2022, an increase of 25.6% compared to year-end 2021 (31.12.2021: CHF 246.1 million). After deducting liabilities of CHF 107.2 million (31.12.2021: CHF 79.0 million) and estimated liquidation taxes of CHF 15.2 million (31.12.2021: CHF 14.4 million), the net assets of the fund amounted to CHF 186.6 million (31.12.2021: CHF 152.6 million). The net asset value per fund unit was CHF 119.43 as of 30.06.2022.

The market value of the property portfolio grew by 21.3% to CHF 283.8 million as of mid-year (31.12.2021: CHF 234.0 million). The geographical distribution of the properties is mainly in the Zurich area (34%) and in Northwestern Switzerland (39%). The remainder is distributed across southern (18%) and eastern Switzerland (9%).

Outlook
The fund management intends to further expand the portfolio in the current year and has an appealing property pipeline. Three additional properties with a market value of CHF 40 million were acquired in July. Due to the high occupancy rate, the focus is on lease extensions - negotiations are underway for current lease extensions for 1,600m² over 5 years. It is expected that thanks to the built-in inflation protection of 99% of the rental income, the long-term returns will be higher than previously assumed. Further growth steps will be critically analyzed and investments will only be made if returns in line with the market can continue to be achieved. If market conditions continue to develop well, a further capital increase will be reviewed. 

An attractive distribution is also expected for the 2022 financial year.

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¹⁾ The key figures were calculated in accordance with AMAS "Fachinformation Kennzahlen von Immobilienfonds" dated September 13, 2016 (as of May 31, 2022).
²⁾ If the rent reductions were taken into account, the rent default rate would be 3.18%.

The Helvetica Swiss Opportunity Fund semi-annual report is available on the fund management company's website or also on Swiss Fund Data.

All media releases can also be found at https://www.Helvetica.com

About Helvetica
Helvetica Property Investors AG is a leading real estate fund management company and asset management firm. We deliver sustainable value to our clients through active, long-term ownership of safe and stable real estate investments. With a fully integrated real estate investment platform, we are able to provide both standardized investment products and customized investment plans. We are proud of our longstanding reputation for outstanding client service and dedication to responsible ownership. Our firm is approved and regulated by the Swiss Financial Market Supervisory Authority FINMA.

Zurich, August 24, 2022 – The Helvetica Swiss Opportunity Fund (HSO Fund) added three properties in the first half of the year, expanding its real estate portfolio by 21%.

About Helvetica Swiss Opportunity Fund
The HSO Fund is a Swiss real estate fund open exclusively to qualified investors. The HSO Fund invests in special purpose properties in the Swiss economic centers. The focus is on fully let properties with long-term leases and few tenants generating stable income. The investment objective is mainly the long-term preservation of value and the distribution of reasonable profits. The fund share units can be traded over the counter. The HSO Fund is approved by the Swiss Financial Market Supervisory Authority, FINMA.

Ticker Symbol HSO; Valor 43 472 505; ISIN CH0434725054

Disclaimer
This press release does neither constitute an issuance prospectus in the sense of art. 652a or art. 1156 of the Swiss Code of Obligations nor a prospectus, a simplified prospectus or a basic information leaflet (key investor information document; KIID) in the sense of the Swiss Act on Collective Investment Schemes. It constitutes neither an offer nor a recommendation to subscribe to or redeem fund units, but is intended solely for information purposes. Historical performance is not a 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 shares. The documents that are solely relevant for an investment decision, the prospectus and the simplified prospectus, can be obtained from Helvetica Property Investors free of charge. This press release is not addressed to persons resident and/or incorporated outside Switzerland. It 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 US.