Varia US: earnings growth in the third quarter

Varia US Properties said rental income increased by $7.4% to $26.7m in the third quarter of 2021. On a like-for-like basis, they increased by 6.8% to 21.2M. Net operating income reportedly increased by 12.1% to 15.0M, and net operating margin increased by 1.6 percentage points to 49.9%. The average occupancy rate was 95.9%.

According to Patrick Richard, executive director of Varia US, the company has benefited from the positive market conditions since the beginning of the year and divested smaller, remote or low-yielding properties with a total of 584 residential units. In turn, Varia US has acquired larger properties in strong markets, it said. These were reportedly two properties in Indianapolis, Indiana (256 residential units) and Fayetteville, North Carolina (360 residential units). As of September 30, the total portfolio included 42 properties with a total of 10,902 residential units.

The real estate company invested the proceeds from its bond issue in the acquisition of the LC Mathews property with 600 residential units in Louisville (Kentucky). Two further acquisitions are to be completed and two smaller properties sold by the end of the year. (ah)