Varia US Properties: Earnings and revenue increase slightly
Varia US Properties reports a slight increase in both earnings and rental income for the first quarter of the current fiscal year.
Effective gross income reached $23.1 million in the first quarter of this year, up $0.2 million, or $1.1%, compared to the fourth quarter of 2018, according to Varia US Properties. Net operating income remained stable at 10.8 million. Net operating income less interest expense reached 6.0 million. This is 0.1 million or 1.9% more than in the fourth quarter of 2018. Rental income also increased slightly by 0.8% from 20.7 to 20.9 million in the period.
In terms of operating costs, Varia reported an increase of 1.4% to 12.3 million (Q4/2018: 12.1 million). The reason is that the winter season is always a cost-intensive time of year due to snowstorms and other weather-related events, the company said.
As of March 31, the portfolio comprised 52 properties with a total of 9,737 residential units. The occupancy rate was 93.3%. In the first quarter, one focus was on implementing the value enhancement strategy; this is to be continued in the following quarters. In addition to an environmental initiative, the focus is on bringing properties from the Low Income Housing Tax Credit (LIHTC) program up to their respective local market levels. In the first quarter of 2019, one of the LIHTC properties completed the program and was raised to local market rent levels, Varia said. (ah)
