Helvetia (CH) Swiss Property Fund posts pleasing half-year results

Helvetia (CH) Swiss Property Fund reported a successful first half of the 2024/2025 financial year as at 31 March 2025. The fund increased net income by 18% over the 2023/2024 half-year to CHF 13.54 million. This positive development is primarily attributable to current net income paid in on issued units due to the capital increase at the end of March 2025, as well as lower rent defaults. Continued demand for residential space, the attractive location of the properties coupled with good property quality and active letting management are behind the reduction in rent defaults. As a result, the portfolio’s already very low rent default rate fell again from 2.06% as at 30 September 2024 to 1.26% as at 31 March 2025. This can also be considered below average in comparison with the competition.
 
Expanded real estate portfolio as growth driver
Compared to the last annual financial statements as at 30 September 2024, the property portfolio has increased from 46 to 50 properties and the market value from CHF 1,081 million to CHF 1,307 million, equating to an increase of CHF 226 million or 21%. The most important driver of this pleasing developmentwas the purchase of a real estate portfolio worth around CHF 252 million from the holding of Helvetia Schweizerische Lebensversicherungsgesellschaft AG. This real estate portfolio comprises seven valuableCore/Core+ properties with a very high residential share in the cantons of Zurich, St. Gallen, Basel-Stadt and Neuchâtel. The transaction was secured by a capital increase of CHF 166 million as well as the raising of additional debt capital. In addition, capital gains of CHF 0.71 million were generated with the disposal of three properties no longer compatible with the strategy in Sion, Romanel-sur-Lausanne and Basel with a fair value of CHF 26.25 million as at 30 September 2024.
 
Fund portrait
The Helvetia (CH) Swiss Property Fund is a contractual investment fund under Swiss law of the type real estate fund. The fund was launched on 3 June 2020 and listed on the SIX Swiss Exchange on 25 June 2024. It invests directly in high-quality real estate with a focus on residential properties in large cities, medium-sized towns and their agglomerations throughout Switzerland. The main part of the portfolio (around 80%) is invested in residential use, supplemented by mixed-use and commercial properties. The focus of the portfolio strategy is on optimising current income, realising the potential of the portfolio and actively managing the portfolio. The fund is broadly diversified in terms of location, building age and tenant structure.