Helvetica Swiss Commercial Fund: successful financial year 2019; investment return of 6.3%

• Real estate portfolio +47% to CHF 628.9 million
• Total fund assets +47% to CHF 654.7 million
• Rental income +58% to CHF 29.3 million
• Investment return 2019 of 6.3%
• Distribution of CHF 5.00 per share corresponds to payout yield of 4.06%
• HSC Fund listed on SIX Swiss Exchange since 11 November 2019

The high-quality real estate portfolio was further diversified through the acquisition of 9 properties and reached a value of CHF 628.9 million by year-end 2019. The investment return in 2019 reached 6.3%. The distribution of CHF 5.00 per share, which will be paid out in April 2020, corresponds to a payout yield of 4.06% with a corresponding payout ratio of 87.6%.

Details to the results for financial year 2019

Income statement

Rental income increased by 58% to CHF 29.3 million in the reporting period 2019 (FY 2018: CHF 18.5 million). The occupancy rate as at 31 December 2019 remained stable compared to the previous year and amounted to 94.1% (FY 2018: 94.2%). Net income was increased to CHF 23.0 million (FY 2018: CHF 14.3 million). The divestment of a property in Vevey resulted in a non-recurring profit of CHF 2.3 million. The valuation of the portfolio by Wüest Partner AG, the independent real estate evaluator, led to a non-realised profit of CHF 4.9 million (FY 2018: CHF 3.3 million). Total comprehensive income for the reporting period 2019 rose by 77% to CHF 29.1 million (FY 2018: CHF 16.5 million).

Balance sheet

Total fund assets were CHF 654.7 million as of 31 December 2019 (31.12.2018: CHF 444.9 million). The value of the real estate portfolio was CHF 628.9 million as of year-end 2019 (31.12.2018: CHF 427.1 million). The increase of 47% is due to the acquisition of 9 attractive properties, located in Bischofszell/TG, Ittigen/BE, Lyssach/BE, Rorschach/SG, Thun/BE, Triengen/LU, Villars-sur-Glane/FR and Winterthur/ZH. After deduction of liabilities in the amount of CHF 153.8 million (31.12.2018: CHF 131.4 million) and estimated liquidation taxes of CHF 11.4 million (31.12.2018: CHF 7.7 million), the Net Asset Value increased by 60% to CHF 489.5 million (31.12.2018: CHF 305.7 million). The NAV per share amounted to CHF 112.71 as of 31 December 2019 (31.12.2018: CHF 110.00). The number of shares was increased during 2019 by 1,563,426 to 4,342,851 shares as a result of the capital increases in March and September 2019.

Distribution of CHF 5.00 per share

For the financial year ending 31 December 2019, a total amount of CHF 21.7 million will be distributed, representing CHF 5.00 per share and a distribution yield on the share price of 4.06%. The distribution for the financial year 2019 includes a one-off effect from the sale of a property in Vevey of CHF 0.54 per share. The total distribution is thus CHF 1.00 or 25% higher than in the previous year. The payout ratio is 87.6%. Without the one-off effect, the payout ratio is 84.1%. The ex-date is 27 April 2020 and the payout will take place on 29 April 2020.

Outlook

The fund management company is convinced about the attractivity of the real estate market Switzerland and plans to further develop the portfolio during 2020 in accordance with the investment strategy. The focus continues to be on properties with value appreciation potential in the most dynamic economic regions in Switzerland. Further capital increases to enable the purchase of additional, attractive properties are also planned in line with the growth strategy.

Key Figures Financial Year 2019

* including non-recurring effect from sale of property in Vevey

For more information

The Annual Report 2019 is available on the website of the fund management company at https://www.helveticaproperty.com/fonds/hsc/ Section “Publikationen” and can also be found at www.swissfunddata.ch