DJ The total fund assets of the Helvetica Swiss Living Fund grew by 129% in financial year 2021
Helvetica Property / Key word(s): Annual Results The total fund assets of the Helvetica Swiss Living Fund grew by 129% in financial year 2021 2022-03-21 / 07:15
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Press release
Press release (PDF)
Zurich, March 21, 2022 - The HSL Fund looks back on a very strong growth year: 19 residential properties were acquired, increasing the market value of properties to approximately . Total fund assets increased by 129% to CHF 516.3 million as of December 31, 2021 . Market value of properties increased by 145 % to CHF 500.8 million at year-end . Proceeds from two capital increases were successfully invested in the acquisition of 19 properties with afair market value of approximately CHF 291 million . Target rental income (annualized) increased by 115% to CHF 19.2 million within one year . Net asset value per share increased by 7.7% to CHF 113.31 at the end of 2021 . Above-average performance of +11.6% compared to the benchmark of SXI Real Estate Funds Broad (+7.32%) . Distribution to be increased by around 10% from CHF 3.10 to 3.40 per share due to the good result
Details to the financial year 2021
The success story of the fund launched in 2019, which focuses exclusively on residential uses, has continued in 2021. Thanks to strong investor demand, the fund management company was able to carry out two capital increases in the past year. Both the May and November capital increases were significantly oversubscribed and generated proceeds of CHF 37.6 million and CHF 117.5 million respectively. The market value of the portfolio more than doubled within the year from CHF 204.3 million to CHF 500.8 million.
A total of 19 properties were purchased, bringing the portfolio to a total of 41 properties with 1'176 residential units. The fund is mainly invested in growth regions in the German-speaking part of Switzerland, the residential portion with related ancillary uses and parking spaces accounts for 93% of the target rental income. The remaining 7% includes target rental income from commercial, retail and offices. The acquired properties had a positive impact on the occupancy rate which increased from 89.2% to 95.2% at the end of 2021.
Income statement
Due to the substantially expanded portfolio, annual rental income increased to CHF 11.4 million (previous year: CHF 4.6 million). This is a significant increase of almost 150%. By contrast, expenses totaled CHF 5.1 million, an increase of CHF 2.7 million compared to 2020. The full earnings potential of the newly acquired properties will be realized in the current year. In addition to the increase from operations, revaluations of CHF 9.1 million could be booked under the position "unrealized capital gains". After deducting the change in liquidation taxes, total income increased to CHF 19.7 million (previous year: CHF 9.0 million).
Balance sheet
The total fund assets of CHF 516.3 million (previous year: CHF 225.1 million) reflect the acquisitions and the capital increases over the past twelve months. The property portfolio worth CHF 500.8 million is broadly diversified and consists of 41 properties. These are mainly located in German-speaking Switzerland with an emphasis on the main economic areas. After deducting liabilities and liquidity taxes, the net fund assets reach a value of CHF 310.7 million (previous year: CHF 148.5 million). The debt financing ratio is 38.6%.
Distribution and performance
Last year, the net asset value per share rose by 4.62% to CHF 113.31. Adjusted by the distribution, this corresponds to a pleasing return on investment of 7.7%. The trading price of the fund shares rose even more sharply by 8.45% to CHF 115.50. Also adjusted by the distribution, the performance came to 11.59%, 4.27% above the benchmark of SXI Real Estate Funds Broad, which achieved a performance of 7.32% in the same period. Due to the good results, the fund management company decided to increase the distribution from CHF 3.10 to CHF 3.40 per share. The distribution yield is 2.9%. The ex-date for the distribution is April 27, 2022 and the distribution will be paid on April 29, 2022.
Outlook In January, the legal transfer of ownership of six high-quality residential properties with 170 apartments in Zweidlen and Wattwil, which were notarized in December 2021, took place. The properties have a fair market value of CHF 74 million and will contribute to the 2022 earnings in full. The successful transactions of the past financial year have shown that investor demand and confidence in the fund are high. While the asset management team focuses on value-creating measures and on increasing the occupancy rate, the fund's growth strategy will be advanced. The aim is to further expand the portfolio in the current year with high-quality residential properties to a portfolio size of at least CHF 800 million. To achieve this and further strengthen diversification, a capital increase is planned in the first half of the year. A listing on the SIX Swiss Exchange is targeted for 2022 / 2023 given good market conditions, with an adequate portfolio size being one of the prerequisites.
Media contacts Mirjam Nägeli Peter R. Vogel Lucas Schlageter Media Relations Chief Financial Officer Head Portfolio Management T +41 43 444 77 92 T +41 43 544 70 84 T +41 43 544 70 91 mn@helvetica.com prv@helvetica.com ls@helvetica.com KEY FINANCIAL FIGURES Balance sheet Per 31.12.2021 Per 31.12.2020 Market value of the properties CHF 500 787 000 204 347 000 Weighted real discount rate % 2.73 3.03 Gross asset value (GAV) CHF 516 277 921 225 118 403 Net asset value (NAV) CHF 310 741 745 148 512 490 Debt financing ratio % 38.60 35.47 Debt ratio % 39.81 34.02 Interest rate debt financing % 0.11 0.04 Residual term debt financing Years 0.10 0.01 Net asset value per share CHF 113.31 108.31 Outstanding shares Number 2 742 310 1 371 155 Income statement 01.01.-31.12.2021 06.11.2019-31.12.2020 Rental income CHF 11 370 234 4 609 479 Vacancy rate % 7.73 12.17 Net income CHF 11 979 559 4 710 711 Total income CHF 19 740 837 9 031 621 Operating profit margin % 68.41 72.35
The annual report 2021 of the HSL Fund is available on the fund management company's website or also under Swiss Fund Data.
About Helvetica Helvetica Property Investors AG is a leading real estate fundmanagement companyand 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.
About Helvetica Swiss Living Fund The HSL Fund is a Swiss real estate fund open exclusively to qualified investors. The HSL Fund invests in residential real estate throughout Switzerland, primarily where regional and national economic centers are easily accessible. The investment focus of the fund is on older and newer properties with stable and sustainable revenues. The investment objective is primarily to preserve the fund's long-term value and to distribute reasonable profits. The fund share units can be traded over-the-counter. The HSLFund is approved by the Swiss Financial Market Supervisory Authority, FINMA.
Ticker Symbol HSL; Valor 49 527 566; ISIN CH0495275668
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 does 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.
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End of Media Release
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Language: English
Company: Helvetica Property
Brandschenkestrasse 47
8002 Zürich
Switzerland
Phone: +41 43 544 7080
E-mail: office@helvetica.com
Internet: www.helvetica.com
ISIN: CH0495275668
Valor: 49527566
EQS News ID: 1307025
End of News EQS News Service
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1307025 2022-03-21
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March 21, 2022 02:15 ET (06:15 GMT)
