Profit decline at Varia US Properties
Residential real estate investor Varia US Properties made less profit in the first half of 2020 than a year earlier, but increased rental income.
Varia US Properties held a portfolio of 53 properties totaling 10,896 residential units in 19 U.S. states as of June 30, 2020, valued by Colliers International at $919.0 million (year-end 2019: $915.1 million). The occupancy rate was 95.0% (end 2019: 93.3%).
In the first six months of the year, the portfolio generated effective gross income of 54.6 million (PY: 47.1 million) and total income of 52.4 million (PY: 66.1 million). Rental income on a like-for-like basis increased by 3.5% in the reporting period compared to the previous year. The revaluation resulted in a devaluation of 2.2 million, compared with a plus of 19.0 million in the previous year.
Total operating costs increased from 27.7 to 31.5 million in the first half of the year. Profit decreased from 22.2 to 6.8 million. EBITDA was 23.1 million, compared with 19.4 million in the previous year, and the operating result increased from 8.8 to 11.4 million.
After the end of the reporting period, Varia US Properties signed a 342-unit property in Indianapolis, Indiana. The deal is scheduled to close in October, the real estate company said. Varia put the Cardinal portfolio in Florida, acquired in 2015, up for sale in July. (ah)
