Varia US Properties publishes strong 2016 performances, a promising basis for the year to come.
The main figures for 2016:
- Total income of USD 64.6 million
- Effective gross income of USD 39.1 million and operating result before debt, taxes and exceptional of USD 17.4 million
- Property portfolio value of USD 343.5 million as of 31 December 2016
- Significant gain from portfolio value adjustment of USD 21.2 million
- Almost full deployment of newly raised capital of USD 124.7 million in Q1 2017
- Gross potential income increased to USD 49.7 million
- Proposed distribution to shareholders of CHF 1.35 per share
In its first weeks as a listed company after the Initial Public Offer (IPO) on SIX Swiss Exchange on 8 December 2016, Varia US Properties has progressed as planned. The Company swiftly started to deploy the newly raised equity; the proceeds from the IPO were used to make some highly promising acquisitions. A first deal priced of USD 28.7 million was already closed on 29 December 2016.
Rental income of USD 36.5 million – gross potential income up to USD 49.7 million
Manuel Leuthold, Chairman of the Board of Directors of Varia, said: “Varia has implemented its growth strategy as planned. The current results underpin the reliability of our investment strategy focused on secondary and tertiary markets targeting the low to medium income population in growing urban submarkets in the US. We have a promising basis for the future development of Varia US Properties and to create added value for shareholders who are looking for an income-generating strategy in a world of low interest rates.”
The accelerated dynamics from the IPO will continue to support the Company’s growth strategy. Thanks to a strong US market, with high demand in the multifamily sector and a growing number of tenants, the outlook for 2017 is positive.
Patrick Richard, Delegate of the Board of Directors of Varia, said: “The pace of the deployment of the new raised capital underscores our strategy. The quick acquisitions will allow us to generate and optimize returns in a faster way than expected. Besides the acquisitions of new properties, in the current year, we will focus to work on the existing portfolio, especially in terms of renovation, and increase rents and optimize returns. In view of the current progress and good market positions, we are confident that we will deliver solid results in 2017.”
Annual General Meeting
The General Meeting of Varia US Properties AG will be held on Tuesday, May 23, 2017 at 4.00 p.m. (Doors opening at 3.30 p.m.) at Haus zum Rüden, Constaffel room, Limmatquai 42, 8001 Zurich.
This General Meeting covers the first period of activity of the Company, starting at its inception in September 2015 and ending December 31, 2016.
A lot has been accomplished during these first 16 months and the General Meeting will be the right time to look back at what has been achieved and to share some views on future developments.
Invitation to the Annual General Meeting can be downloaded here