Varia US Properties expands portfolio

In the first quarter of 2017, Varia US Properties reported a net cash flow return of 11.2 percent. That compares to 8.4 percent in the fourth quarter of 2016. Property-level distribution yields increased to 9.5 percent (Q1/17) from 8.7 (Q4/16), the company said. Effective gross income was $12.7 million, according to company data. This represented an increase of 2.3 million compared to the fourth quarter of 2016, the company said.

This is attributable to the strong increase in rental income, the stable vacancy rate and the new acquisitions, Varia reports. As a result of lower operating costs, net operating income increased from 5.2 million (Q4/16) to 7.0 million (Q1/17), it said. Gross rental income increased by almost 20 percent to 12.5 million.

As of March 31, 2017, Immobilien-AG's portfolio consisted of 43 properties with a total of 6,480 residential units and a property value of 422 million. In the reporting period, the company acquired five properties with 1,127 residential units for a total of 95.2 million. The vacancy rate in the portfolio was unchanged at 4.7 percent.

Two of the newly acquired properties are located in the Dallas-Fort Worth area, and one each in Columbia (South Carolina), St. Louis (Missouri) and the greater Seattle area (Washington). All regions are "markets with strong demographic trends and employment prospects," Varia added.