Details of annual result 2020
The HSL Fund was able to build up an attractive residential property portfolio during its first extended fiscal year 2020 (6 November 2019 to 31 December 2020) - despite the COVID-19 pandemic. The market value of the portfolio amounted to CHF 204.3 million as of 31 December 2020. With the transfer of ownership of an additional property on 1 January 2021, the portfolio now totals 517 apartments and a value of CHF 221.5 million as per the beginning of 2021. The annual target rental income of the portfolio properties lies at CHF 9.7 million as of 1 January 2021 (as of 31 December 2020: CHF 8.9 million).
Income statement financial year 2020
Rental income generated in the financial year 2020 amounted to CHF 4.6 million. The HSL Fund generates about 90% of its target rental income from residential use as well as associated ancillary uses and around 9% of rental income from office and retail space. Due to the high volume of residential use, the portfolio withstood potentially negative impacts caused by the COVID-19 pandemic. As a result, no COVID-19-related defaults were recorded in the financial year 2020 and no rent reductions had to be granted.
Through intensive "hands on" management of the properties acquired as well as successful re-letting campaigns, the vacancy rate of various properties was reduced, in some cases significantly, so that the portfolio achieved an occupancy rate of 89.2% by the end of 2020.
Net income amounted to CHF 4.7 million in the financial year 2020. The valuation of the property portfolio by the independent valuation expert Wüest Partner AG resulted in an unrealized gain of CHF 5.4 million. The fund recorded a total income of CHF 9.0 million.
Balance Sheet per 31 December 2020
Total fund assets per 31 December 2020 amounted to CHF 225.1 million. With 24 properties in the cantons Aargau, Basel-Land, Fribourg, Schaffhausen, Solothurn, St. Gallen, Thurgau, Valais and Zurich, the property portfolio valued at CHF 204.3 million (per 1 January 2021: CHF 221.5 million) has grown to an attractive size and is broadly diversified. The net asset value amounted to CHF 148.5 million. The debt financing ratio was 35.5%. As of 31 December 2020, the net asset value per share was CHF 108.31, which corresponds to a return on investment of 8.3% since the fund's initial offering in November 2019.
Distribution of CHF 3.10 per share
For the financial year 2020, a total amount of CHF 4.3 million will be distributed which corresponds to the distribution of CHF 3.10 per share and a payout ratio of 90.2%. The ex-date of the distribution will be 27 April 2021 and the distribution will be paid out on 29 April 2021.
The fund management company Helvetica Property Investors AG is optimistic about the year 2021. In particular, the launch of the vaccination program offers reason to be confident that the COVID-19 situation will improve during the course of the year. The fund management company is convinced that the Swiss real estate market is highly attractive in the long-term and aims to further expand its existing residential real estate portfolio in 2021. In this context, the fund management company is planning another capital increase in the course of 2021. In addition, the listing of the HSL Fund on the SIX Swiss Exchange by the end of 2022 is under consideration.
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.
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 HSL Fund is approved by the Swiss Financial Market Supervisory Authority, FINMA.