Varia US Properties increases earnings and rental income
Residential real estate investor Varia US Properties returned rental income to pre-pandemic levels in the third quarter. Effective gross income increased by more than 10%.
Varia US Properties reported third quarter effective gross income of $27.6 million, up $10.2% from the same period last year. Rental income increased by 9.9% to 24.9 million. On a comparable basis, the year-over-year increase was 5.0% to 22.4 million.
Net operating income reportedly increased by 12.4% from 11.9 million to 13.4 million compared to the third quarter of 2019. Net operating income margin improved by 1.0% to 48.3%. Net operating income less finance costs reached 7.9 million - an increase of over 16%, according to Varia. The occupancy rate increased year-on-year from 94.3% to 95.4%.
Varia further reported that after the end of the third quarter of 2020, rental income has returned to pre-Corona pandemic levels. October 2020 rental income was 96% of budgeted income for the month and 100% of rental income earned in March. Rental revenue for the fourth quarter is expected to be in line with the second and third quarters, although late payments could increase slightly by the end of the year, Varia added.
After the real estate company sold its Stonegate properties in Colorado and the Cardinal portfolio in Florida, there was a recent acquisition: Varia bought the Harrison Point Apartments in Indianapolis (Indiana), a property with 342 residential units. (ah)
