Strong operational results with higher total income, EBITDA and operating margin – lower net loss on revaluation of properties

  • Rental income like for like increased by 4.3% at USD 55.6 million (H1 2023: USD 53.3 million)
  • Total income improved by 54.4% at USD 34.6 million (H1 2023: USD 22.4 million)
  • EBITDA: USD 30.7 million (H1 2023: USD 27.9 million)
  • Net loss on revaluation of properties: USD 32.7 million (H1 2023: net loss of USD 57.2 million)
  • Operating margin excluding revaluation: 42.7% (H1 2023: 27.8%)
  • Portfolio value at USD 1.257 billion (as per end of 2023: USD 1.300 billion)
  • NAV per share: USD 35.57 (as per end of 2023: USD 39.23)

The first six months of 2024 have seen the beginning of a stabilization in the US real estate market, with Fed rates remaining constant, insurance markets were gaining both capacity and price stability, and inflation decreasing steadily. Varia US continued to pursue its strategy in the reporting period and achieved strong operational results: Occupancy rates improved, like for like rental income grew consistently with past performances, and valuations decreased slightly on a like for like basis since the beginning of the year, which is a significant improvement compared to the first half of 2023. One non-strategic property was sold during H1 2024 and a further two post period, in July.

Patrick Richard, Executive Member of the Board of Directors of Varia US Properties, commented: “These results are reflecting the beginning of the stabilization of the US multifamily real estate market. The fair value loss is less significant compared to the first half of 2023, and our Company continues to perform well on the operating side. The portfolio is getting stronger, and its quality keeps improving with the sale of non-strategic properties. Stoneweg, the Asset Manager of Varia US Properties, is positioning the portfolio to benefit from the expected market rebound”.

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