Helvetica Swiss Living Fund experiences rising tenant demand in financial year 2023: suburban locations reduce rent default rate

Press release, 5 March 2024


Press release (PDF)

Zurich, 5 March 2024 – The Helvetica Swiss Living Fund (HSL Fund) has closed financial year 2023 with a stable result compared to the previous year. The fund benefits from the ongoing demand for housing.

• Rental incomes increase by 21%.
• Rent default rate drops to 5.3%. 
• The “Suburbia” investment strategy is in line with the ongoing immigration and supply deficit.

Portfolio management
As a result of six property sales at the market value of CHF 42 million, the market value of the portfolio – taking into account a market-related valuation adjustment of 2.5% – fell by 8% to CHF 756 million. No real estate purchases were made during the reporting period. At the end of the 2023 financial year, the fund had 56 residential properties in easily accessible locations in regional and national economic centres with strong population growth, of which 89% are located in German-speaking Switzerland and 87% generate rental income from residential use. The rent default rate was reduced to 5.3%, partly thanks to the negotiating skills of Helvetica’s Asset Management team. At the end of 2023, the occupancy rate is 96%. The increase in rental income of 21% or CHF 5 million is also attributable to the active adjustments in rents due to the increased reference interest rate and to purchases made in 2022. The increasing attractiveness of the suburban locations due to the high demand for housing, coupled with a decline in construction activity, supports the fund’s investment strategy.

Financing strategy
In accordance with the financing strategy adapted to the current market opportunities, new long-term liabilities have been concluded. In the meantime, 11% of liabilities have been tied up with a term of more than one year. Sales in the current year are expected to reduce the debt financing ratio from 43% to below the regulatory figure of 33%.

Distribution of dividend
In view of future investment planning, the distribution of dividend for financial year 2023 is CHF 2.20 per share, corresponding to a distribution yield of 2.06%. The distribution will be made with a value date of 26 April 2024 (ex-date 24 April 2024).

Fund shares
At the end of financial year 2023, 267,390 shares were cancelled. This corresponds to 7% 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
As a result of the sale of properties in Wittenbach (Canton of St. Gallen) and La Chaux-de-Fonds (Canton of Neuchâtel), which had already been notarised at the end of 2023, the debt financing ratio at the end of 2023 will decline by one percentage point. Further strategic property sales are planned.

For more details, facts and figures, see the 2023 Annual Report of the HSL Fund: https://www.helvetica.com/en/products/download-center 

Ticker Symbol HSL; Valor 49 527 566; ISIN CH0495275668

Media contacts

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 Living Fund
The HSL Fund is a Swiss real estate fund open only to qualified investors. 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 as-new properties with stable and sustainable income. The investment objective is mainly to maintain the value of the properties over the long term and to distribute appropriate income. The fund units are tradable over-the-counter. The HSL Fund is authorized by the Swiss Financial Market Supervisory Authority FINMA. Ticker Symbol HSL; Valor 49 527 566; ISIN CH0495275668

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.