Increased effective gross income (+5.0%) and net operating income (+8.4%)
In Q1 2021, effective gross income reached USD 28.6 million, a 5.0% increase from Q1 2020. Rental income was up by 5.3% to USD 25.5 million. On a like for like basis*, rental income grew by 5.4% to USD 22.9 million. Net Operating Income (NOI) amounted to USD 14.0 million compared to USD 12.9 million (+8.4%) in Q1 2020. NOI margin improved 1.5% to 49.1% (Q1 2020: 47.6%). NOI less finance cost amounted to USD 8.3 million, an increase of 10.2%. The average occupancy rate increased at 95.8% in Q1 2021 (Q1 2020: 93.1%). This reflects the continued focus of the Company on operations and the value-add strategy.
Patrick Richard, Executive Member of the Board of Directors of Varia US Properties, said: “The first quarter of the year produced excellent financial results and overall portfolio performance. This is the result of our strong and resilient portfolio and of all the intense work done in the last several months even in the midst of the pandemic. The ongoing increase of our key figures underpins the efficiency of our strategy even in a challenging business environment. We continue to see interesting investment opportunities in our target markets and intend to benefit from the currently attractive growing suburban markets in the US in order to further strengthen our portfolio. Overall, we continue to believe we will produce solid financial results for the full year 2021.”