Helvetica Swiss Living Fund experiences rising tenant demand in financial year 2023

suburban locations reduce rent default rate

Helvetica Property / Key word(s): Annual Results Helvetica Swiss Living Fund experiences rising tenant demand in financial year 2023: suburban locations reduce rent default rate 05.03.2024 / 06:30 CET/CEST Press release, 5 March 2024 Press release (PDF)

Zurich, 5 March 2024 – The Helvetica Swiss Living Fund (HSL Fund) has closed financial year 2023 with a stable result compared to the previous year. The fund benefits from the ongoing demand for housing.

• Rental incomes increase by 21%.
• Rent default rate drops to 5.3%. 
• The “Suburbia” investment strategy is in line with the ongoing immigration and supply deficit.

Portfolio management
As a result of six property sales at the market value of CHF 42 million, the market value of the portfolio – taking into account a market-related valuation adjustment of 2.5% – fell by 8% to CHF 756 million. No real estate purchases were made during the reporting period. At the end of the 2023 financial year, the fund had 56 residential properties in easily accessible locations in regional and national economic centres with strong population growth, of which 89% are located in German-speaking Switzerland and 87% generate rental income from residential use. The rent default rate was reduced to 5.3%, partly thanks to the negotiating skills of Helvetica’s Asset Management team. At the end of 2023, the occupancy rate is 96%. The increase in rental income of 21% or CHF 5 million is also attributable to the active adjustments in rents due to the increased reference interest rate and to purchases made in 2022. The increasing attractiveness of the suburban locations due to the high demand for housing, coupled with a decline in construction activity, supports the fund’s investment strategy.