Varia US Properties: Loss despite operational growth
Varia US Properties AG reports an increase in rental income of 10.3% to USD 34.1 million for the first quarter. EBITDA even increased by 20.7% to USD 18.1 million.
However, a slightly lower portfolio valuation of USD 45 million - a decrease of USD 2.6% - led to a net loss of USD 34 million. In the first quarter of 2022, the company had reported a profit of USD 101 million. "The pressure on portfolio valuations is expected to continue due to the expected further increase in weighted average capitalization rates," writes Varia in a statement. However, the operating business is expected to remain strong, according to Patrick Richard, executive member of the Board of Directors.
The higher interest rate level was also reflected in the normalized funds from operations in the Varia figures: These fell from CHF 6.8 million to CHF 4.9 million. According to the company, this decline was largely due to interest rate increases on variable-interest debt, with the remainder due to new borrowing for the growth of the portfolio.
The portfolio was most recently valued at USD 1.659 billion (December 31, 2022: CHF 1.704 billion). (aw)
