Helvetia (CH) Swiss Property Fund posts strong result for the 2021 financial year
Property income solid and rent default rate low
Rental income amounted to CHF 22.2 million, while the rent default rate was reduced to a low 2.5% within the space of a year. The EBIT margin increased to 66.3% and the fund operating expense ratio (TERREF GAV) was down to almost 0.8%. Net income generated in the 2021 financial year amounted to CHF 12.8 million, or CHF 2.84 per unit.
Encouraging price trend and strong performance
Low interest rates and stable income on the Swiss property market ensured the continuing appeal of the real estate asset class and strong demand for investment properties in 2021 as well. Real estate investments with a high residential component profited in particular. In the period from 30.9.2020 to 30.9.2021 the Helvetia (CH) Swiss Property Fund reported a performance of 18.9% based on the price trend in over-the-counter trading, beating the benchmark SXI® Real Estate Funds Broad TR (relevant for listed Swiss real estate funds), which achieved a performance of 15.3% in the same period.
Increase in net asset value and high dividend yield
Last year the net asset value per unit increased by 5.5% from CHF 98.03 to CHF 103.40. The market value of the properties rose by around CHF 12.2 million (2.3%). After the decision not to distribute accrued income in the short first financial year, the initial distribution per unit was set at CHF 3.55. Based on the over-the-counter price of CHF 126.00 per unit, this represents a dividend yield of 2.8% as at the end of the 2021 financial year.
Further expansion of real estate portfolio planned
The fund management company intends to expand the real estate portfolio substantially in the 2022 financial year. To this end, it is planning a new capital increase of approximately CHF 200 million as at end March 2022. The proceeds of the issue will again be used to purchase a broadly diversified real estate portfolio with a high residential component from Helvetia Group’s portfolio. A listing on SIX Swiss Exchange is planned in one to three years.
Fund information
| Name | Helvetia (CH) Swiss Property Fund |
| Security / ISIN | Security: 51383832 / ISIN: CH0513838323 |
| Legal form | Contractual real estate fund under Swiss law |
| Fund domicile | Switzerland |
| Investor group | Limited to qualified investors pursuant to Art. 10 para. 3 CISA and Art. 10 para. 3ter CISA |
| Income use | distributed |
| Launch date | 3 June 2020 |
| Fund manager | Helvetia Asset Management Ltd, Basel |
| Portfolio management | Helvetia Asset Management Ltd, Basel |
| Custodian bank | Zürcher Kantonalbank, Zurich |
| Over-the-counter trading | Bank J. Safra Sarasin AG, Zurich |
| Audit firm | KPMG AG, Zurich |
| Valuation expert | Wüest Partner AG, Zurich |
Philipp Schüpbach
Head of Investor Relations
Phone: +41 58 280 59 23
investor.relations@helvetia.ch