Helvetica Swiss Living Fund increases its real estate portfolio to CHF 101 million in the first half of 2020

• Good first half of 2020 with acquisitions of 14 residential properties with over 240 apartments and one small commercial property
• Real estate portfolio at CHF 100.8 million as of 30 June 2020
• Total fund assets at CHF 124.8 million
• Target rental income (annualised) of CHF 4.5 million
• Net asset value of CHF 104.83 per share as of 30 June 2020
• Portfolio expanded to a market value of over CHF 124 million through the acquisition of a further residential property in Erlen as of 1 July 2020

Details regarding the first half of 2020
The Helvetica Swiss Living Fund (HSL Fund) was launched in the fourth quarter of 2019 with a highly successful first issuance and payment date on 6 November 2019. The first extended half-year 2020 therefore covers the period from 6 November 2019 to 30 June 2020. With the funds from the initial offering and a further capital increase in March 2020, an attractive portfolio of 14 residential properties (with 242 apartments) and one small commercial property was built up. As of the balance sheet date of 30 June 2020, the real estate portfolio of the HSL Fund amounts to CHF 100.8 million.  

Income statement 06.11.2019 – 30.06.2020
The rental income in the extended first half of 2020 amounted to CHF 1.8 million. In terms of target rental income, the HSL Fund has a proportion of around 93% from residential use (including secondary use in connection with residential) and only around 7% from commercial use. Due to the high proportion of residential use, the portfolio was resistant to possible negative influences on rental income in connection with the COVID-19 crisis. To date, the fund management company has not received any requests for rent deferral or permanent rent reductions.

Intensive "hands-on" management of the acquired properties reduced the vacancy rate from around 15% to 13.1%. In some properties, vacancies fell by more than 50% after the acquisition of the property. The occupancy rate as of 30 June 2020 was 86.9%. Various re-letting activities are still underway, so that the fund management company expects an occupancy rate of over 90% in the existing portfolio as of September 2020.

Net income for the reporting period amounted to CHF 2.0 million. The value of the real estate portfolio by the independent valuation expert Wüest Partner AG resulted in an unrealized gain of CHF 2.3 million. The fund recorded total income of CHF 4.1 million in the extended first half of 2020. 

Balance sheet as of 30.06.2020
As of 30 June 2020, total fund assets amounted to CHF 124.8 million, reflecting the capital raised and property acquisitions of the first half of the year. The value of the real estate portfolio was CHF 100.8 million and the debt financing ratio was 33.9%. The net asset value amounted to CHF 88.8 million as of 30 June 2020. The net asset value per share reached CHF 104.83 as of 30 June 2020, corresponding to an increase of 4.8% since the initial issue.

Event after balance sheet date - Expansion of the real estate portfolio to over CHF 124 million
On 1 July 2020, a residential property in Erlen, Canton Thurgau, with a total of 44 apartments in five different apartment buildings was acquired. The property is located on a plot of land of almost 9,000 square metres and has a rentable area of around 4,570 square metres. The target rental income is just over CHF 0.9 million per year, the occupancy rate per 30 June 2020 is at 97%. The market value of the property was around CHF 23.5 million. This acquisition increases the value of the real estate portfolio to over CHF 124 million and the target annual rental income to around CHF 5.4 million.

Outlook
The fund management company intends to expand the existing residential real estate portfolio in accordance with the investment strategy. Although the effects of the COVID-19 crisis on the global and Swiss economy cannot be clearly assessed yet, the fund management company assumes that the HSL Fund with its distinctive residential real estate portfolio will not be negatively affected by COVID-19. A further capital increase, which is currently planned for the fourth quarter of 2020, will raise the necessary funds to further diversify the portfolio in terms of property size, location and tenants. Details of the planned capital increase will be published in a separate press release in due course.    

Media contact
Michael Müller                                                                  Peter R. Vogel
Chief Executive Officer                                                      Chief Financial Officer
T +41 43 544 70 80                                                          +41 43 544 70 84
mm@remove-this.Helvetica.com                                                          prv@remove-this.Helvetica.com

The semi-annual report 2020 of HSL Fund is available on the fund management company's website at https://www.helvetica.com/en/products/helvetica-swiss-living-fund/publications or also under www.swissfunddata.ch

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www.Helvetica.com