Media release
Basel, 13 December 2021

The Helvetia (CH) Swiss Property Fund is reporting a very encouraging result for the second financial year. Underpinned by solid net income and an appreciation in the property portfolio, total income in 2021 came to CHF 24.2 million, representing an attractive investment yield of 5.5%.

After transaction costs from the purchase of the initial portfolio of 29 properties impacted on the short first financial year (3.6.2020 to 30.9.2020), the 2021 financial year revealed the portfolio's strong earning power over the twelve-month period. On the strength of the dominant residential component of 83% of the target rental income, the portfolio of the Helvetia (CH) Swiss Property Fund remained largely unscathed by the adverse effects of the COVID-19 pandemic in the second financial year too.

Property income solid and rent default rate low
Rental income amounted to CHF 22.2 million, while the rent default rate was reduced to a low 2.5% within the space of a year. The EBIT margin increased to 66.3% and the fund operating expense ratio (TER_REF GAV) was down to almost 0.8%. Net income generated in the 2021 financial year amounted to CHF 12.8 million, or CHF 2.84 per unit.

Encouraging price trend and strong performance
Low interest rates and stable income on the Swiss property market ensured the continuing appeal of the real estate asset class and strong demand for investment properties in 2021 as well. Real estate investments with a high residential component profited in particular. In the period from 30.9.2020 to 30.9.2021 the Helvetia (CH) Swiss Property Fund reported a performance of 18.9% based on the price trend in over-the-counter trading, beating the benchmark SXI(R) Real Estate Funds Broad TR (relevant for listed Swiss real estate funds), which achieved a performance of 15.3% in the same period.

Increase in net asset value and high dividend yield 
Last year the net asset value per unit increased by 5.5% from CHF 98.03 to CHF 103.40. The market value of the properties rose by around CHF 12.2 million (2.3%). After the decision not to distribute accrued income in the short first financial year, the initial distribution per unit was set at CHF 3.55. Based on the over-the-counter price of CHF 126.00 per unit, this represents a dividend yield of 2.8% as at the end of the 2021 financial year.

Further expansion of real estate portfolio planned
The fund management company intends to expand the real estate portfolio substantially in the 2022 financial year. To this end, it is planning a new capital increase of approximately CHF 200 million as at end March 2022. The proceeds of the issue will again be used to purchase a broadly diversified real estate portfolio with a high residential component from Helvetia Group's portfolio. A listing on SIX Swiss Exchange is planned in one to three years.

Fund information

About Helvetia Asset Management AG
Helvetia Asset Management AG is regulated by the Swiss Financial Market Supervisory Authority, FINMA, and provides fund management and asset management services. It offers collective investment schemes and is an independent fund manager operating in the interests of its investors. The company also handles investment advice and asset management, client representation and transaction management for employee benefit institutions, namely for real estate portfolios. Helvetia Asset Management AG has its registered office in Basel, Switzerland, and is a wholly owned subsidiary of Helvetia Holding AG, St. Gallen, Switzerland.

Cautionary note
This document was prepared by Helvetia Asset Management AG and may not be copied, altered, offered, sold or otherwise distributed to any other person by any recipient without the consent of Helvetia Asset Management AG. The German version of this document is decisive and binding. Versions of the document in other languages are made available purely for information purposes. Although all reasonable effort has been made to ensure that the facts stated herein are correct and the opinions contained herein are fair and reasonable, where any information and statistics are quoted from any external source such information or statistics should not be interpreted as having been adopted or endorsed as accurate by Helvetia Asset Management AG. Neither Helvetia Asset Management AG nor any of its directors, officers, employees and advisors nor any other person shall have any liability whatsoever for loss howsoever arising, directly or indirectly, from any use of this information. The facts and information contained in this document are as up to date as is reasonably possible but may be subject to revision in the future. Neither Helvetia Asset Management AG nor any of its directors, officers, employees or advisors nor any other person makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained in this document.