EQS-Adhoc HSC Fund - Successful business year 2020 with a return on investment of 6.9%
EQS Group-Ad-hoc: Helvetica Property / Key word(s): Real Estate
Press release 31 March 2021
Zurich, 31 March 2021 - The Helvetica Swiss Commercial Fund (HSC Fund) grew its real estate portfolio to CHF 744 million in the 2020 business year and generated an investment return of 6.9%. In April 2021, a distribution of CHF 5.10 per share will be paid, corresponding to a distribution yield of 4.7%.
Details to the financial year 2020
The HSC Fund successfully expanded its real estate portfolio in the 2020 financial year - despite the COVID-19 pandemic and the weak economy that arose as a result - and reported a favorable result for 2020. The portfolio was expanded by over CHF 110 million through the acquisition of five attractive properties in the cantons of Geneva, Fribourg and Thurgau. This further improved the already good diversification of the portfolio and rental income. The market value of the portfolio increased by 18% year-on-year and stood at CHF 743.9 million as of 31 December 2020 (31 December 2019: CHF 628.9 million). Annual target rental income increased by 16% to CHF 45.4 million (31.12.2019: CHF 39.0 million). The real estate portfolio reflects a high occupancy rate of 94.6%, compared to 94.1% in the previous year.
Rental income increased by 33% to CHF 38.7 million in the financial year 2020 (FY 2019: CHF 29.2 million). The increase is mainly due to the acquisitions made in the reporting years 2019 and 2020. Three of the properties acquired in 2020 in Versoix/GE, Arbon/TG and Fribourg/FR with an annual target rental income of approximately CHF 5.0 million were added to the portfolio as of 1 May, 1 July and 1 October 2020 and contributed a total of CHF 2.1 million to the rental income since acquisition. These three properties will only develop their full earnings potential (for 12 months) in the reporting year 2021.