Varia US Properties with record quarterly earnings
With gross revenues of $27.2 million and net operating income of $12.9 million, Varia US Properties said it posted the best quarterly results in the company's history.
Effective gross income increased by $17.7% to $27.2 million compared to the same period last year, while rental income increased by $16.3% to $24.3 million, Varia US Properties reported. On a like-for-like basis, er rental income increased by 5.8% year-on-year to 21.9 million, it said.
Net operating income increased by $19.4% year-on-year to $12.9 million (Q1 2019: $10.8 million), according to company data. Net operating income less finance costs was 7.6 million, up 25%.
The occupancy rate in Q1 2020 remained at 93.1%, roughly the same level as in the same period last year (Q1 2019: 93.3%).
Patrick Richard, executive member of Varia's board of directors, said the Covid 19 pandemic will certainly impact the coming quarters. However, he said the company is "well positioned to manage this particular situation and quickly return to its usual strength.
back". While takeover and divestment activities in the U.S. have come to a standstill due to the pandemic, real estate experts believe that - once the crisis is overcome - attractive investment opportunities will arise.
The pandemic outbreak has had little impact on Varia so far: In April 2020, the company said it had collected 96% of the total budgeted revenue for the month, and as of May 11, it had already collected 87% of the total budgeted revenue. However, it said rental income is expected to decline in the coming months, which is why it has implemented a 1.1 million cost-cutting program. This is expected to at least partially offset the potential losses. Varia plans to provide an update on the business impact of Covid-19 at its annual general meeting on June 26, 2020. (ah)
