HSL Fund Demonstrates Strong Performance Amid Rising Rental Demand in 2023

The Helvetica Swiss Living Fund (HSL Fund) has reported a stable financial performance for the year 2023, marking a significant phase in its operations. This period has seen a noteworthy increase in tenant demand, particularly for properties in suburban areas, which has played a crucial role in minimizing the rent default rate. Rental incomes have seen a robust increase of 21%, while the rent default rate has been efficiently lowered to 5.3%.

A strategic shift towards investments in "Suburbia," aligned with trends of continuous immigration and a deficit in supply, has been instrumental for the fund. This strategy, alongside skilled negotiations by Helvetica's Asset Management team, has led to an attractive 96% occupancy rate. Despite the sale of six properties resulting in a value dip to CHF 756 million, the fund's focus on residential properties in growing economic centers has bolstered its financial health.

The fund's financing strategy has also been adapted to leverage current market opportunities, leading to optimistic prospects for reducing the debt financing ratio. Additionally, the HSL Fund announced a dividend distribution of CHF 2.20 per share for 2023, reflecting a distribution yield of 2.06%. The fund has also decided to cancel 267,390 shares, marking a significant step towards optimizing its share structure.

Looking ahead, the HSL Fund has already made strategic property sales that are expected to further improve its financial metrics. These moves underscore the fund's adaptability and strategic approach towards enhancing shareholder value while navigating the complex real estate market landscape.