Varia US Properties: profit and Ebitda increase
Varia US Properties reported a significant increase in total revenue, Ebitda and profit for the first half of 2019.
As of June 30, 2019, Varia US Properties' portfolio consisted of 52 properties with a total of 9,737 residential units in 19 U.S. states. It was valued by Colliers at $793.7 million ($767.5 million at the end of 2018).
The occupancy rate was 93.8%, slightly above the figure at the end of 2018 (93.7%). In the first six months of this year, the portfolio generated effective gross income of 47.0 million, up from 39.0 million a year earlier. Total income increased from 46.4 to 66.1 million within the year.
Varia puts the average rent per apartment unit at $802/month; at the end of 2018, the figure was $760/month. Rental income on a comparable basis increased by 3.5% in the first six months of 2019 compared to the same period last year.
After deducting financing costs and provisions for income taxes, Varia made a profit of 22.2 million in the reporting period. This is 10 million more than in the previous year.
Operating profit margin with revaluation amounted to 58.1% in the first half of 2019 (previous year: 51.3%). EBITDA increased by
18.4% to 19.4 million (previous year: 16.4 million). Meanwhile, the EBITDA margin excluding revaluation decreased fromTP2T 42.11 toTP2T 41.21.
Net income from fair value adjustments of the real estate portfolio increased from 7.4 to 19.0 million.
Varia plans to pay a dividend of CHF 2.60 for fiscal 2019. The goal of the Board of Directors is a regular distribution of 90% of the operating result, the company says. (ah)
