Hitting the Mark: Helvetica Swiss Opportunity Fund Registers Notable Growth in 2023

Zurich, 5 March 2024 - In a significant stride, the Helvetica Swiss Opportunity Fund (HSO Fund) has produced a stable annual performance for the financial year 2023, as divulged in their latest press statement. Marked by a sweeping 21% uplift in rental income, the fund reflects a consistent pattern of growth and robust asset management in the underlined period. Alongside an appealing low rent default rate of 3.6%, the detailed accounts showcase a balanced portfolio with a weighted average unexpired lease term (WAULT) maintained at a commendable 5.65 years.

The notable expansion in the fund's market value, pegged at a moderate increase of 1.3% to CHF 326 million, underscores a strategic acquisition spree—exemplified by the purchase of a commercial asset in the Berne region for CHF 13 million. This acquisition alone augmented the rental income by CHF 0.9 million. Meanwhile, the fund's proposal for a merger with Helvetica Swiss Commercial Fund (HSC Fund), which is in the submission phase to FINMA, hints at a strategic realignment to enhance operational scope and market footprint.

Moreover, in tune with an adaptive financing strategy, the fund has smartly navigated current market opportunities, resulting in new long-term liabilities. This maneuver is aimed at realigning the debt financing ratio within the targeted bracket of 25 to 28 percent post the planned property dispositions this year. Furthermore, the declaration of a dividend distribution of CHF 5.50 per share for the fiscal year 2023, slated for April end, offers a tangible return to the shareholders amidst the fund's resilient performance.

Beyond the fiscal sheets, strategic asset dispositions post the balance sheet date, like the sale of property in Wädenswil (ZH), fortify the fund's capital structure, promising a reduction in the debt financing ratio to a projected 37 percent. As the proposed merger with HSC Fund awaits FINMA's nod, slated for completion by the second quarter of 2024, stakeholders are keeping a keen eye on the evolving narrative around the HSO Fund's growth trajectory and strategic orientations.