Excellent financial results with increased effective gross income (+17.7%) and net operating income (+19.4%) in the first quarter 2020 – strong rent collection for April and May despite Covid-19 pandemic.

  • Q1 2020 is the best quarter Varia ever had so far
  • Rental income up 16.3% to USD 24.3 million
  • Occupancy rate remained strong at 93.1%
  • Strong rent collections in April and early May with 96% of total budgeted income collected for April and 87% for May (as of May 11, 2020)
  • Update on Covid-19 pandemic impact to be provided at the Annual General Meeting on June 26, 2020

Q1 2020 Portfolio Performance Review

In Q1 2020, effective gross income reached USD 27.2 million, a 17.7% increase from Q1 2019. Rental income was up by 16.3% to USD 24.3 million. On a like for like basis*, rental income grew by 5.8% to USD 21.9 million. Net Operating Income (NOI) amounted to USD 12.9 million compared to USD 10.8 million (+19.4%) in Q1 2019. NOI less finance cost amounted to USD 7.6 million, an increase of more than 25%. The occupancy rate remained strong at 93.1% in Q1 2020 (Q1 2019: 93.3%).

Patrick Richard, Executive Member of the Board of Directors of Varia, said: “The first quarter of the year produced excellent financial results and overall portfolio performance. This is the result of all the work done in 2019 and of a strong portfolio. The pandemic will surely affect the future quarters but the Company is at best to face these particular times and to rebound at the earliest. Our strong cash position, as well as an experienced organization, allow us to be in the best position possible to face this extraordinary situation. While acquisition and disposition activity has paused in the United States as a result of Covid-19, real estate professionals are expecting to see attractive investment opportunities emerging in the next few months as the crisis lifts. Varia US Properties is well prepared to further proceed with its value-add strategy.”

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