Varia US Properties increases revenue and profit
The residential real estate company, which focuses on the U.S. market, is satisfied with its performance in the first three quarters of 2022 given the difficult environment.
Varia US Properties reported rental income of $93.5 million for Q1-Q3 2022. This is an increase on a comparable basis of 7.5% (prev. yr: 78.8m). EBITDA (operating profit less unrealized revaluations) increased from $64.2 million to $71.0 million.
Further, Varia reported a jump in profits from $100.1 million to $163.9 million. The increase was mainly due to a further rise in portfolio value, the company said. The value of the total portfolio increased by 17.5% to $1.65 billion from $1.41 billion at the end of 2021.
Vacancy rate increases slightly
At an average monthly rent of $1,082/unit (YoY: $932/unit; +16%), occupancy was 92.7% (end-2021: 94.6%). The decline was due to "the implementation of pricing to optimize yield" and increased renovation work, Varia informs.
Varia is currently conducting a so-called portfolio rotation, selling older and more remote properties in order to acquire newer properties in more desirable areas of larger metropolitan areas. In the third quarter, four properties were sold and two properties were purchased in this way, the company says.
For fiscal 2022, the Board of Directors expects the slowdown in the increase in net operating income to continue, as well as the further increase in capitalization interest rates. This will have an impact on portfolio value, he said. However, in the longer term and as soon as interest rates stabilize again, the market is expected to recover. (ah)
