Strong 2020 results for Varia US Properties AG – sharp increase of total income (+9%) and EBITDA (+47%) – portfolio value at record level (USD 928 million)

Despite the COVID-19 pandemic, Varia US Properties performed very well in the 2020 business year and delivered strong results. Since the beginning of the pandemic in March 2020, Varia US focused on how to best serve the tenants, while maximizing rent collections and reducing costs. The Company not only demonstrated its resilience but also its capacity to buy, manage and sell properties with superior performances in the US multifamily housing sector. Varia US continued to optimize its carefully compiled portfolio by targeting investments and executing the value-add strategy. Green initiatives also remained a priority across the portfolio. Overall, the full-year 2020 results underline the Company’s good positioning in the multifamily housing sector and the successful execution of Varia US’s strategy.

  • In 2020, Varia US demonstrated the resilience and the strength of its portfolio, as well as its ability to buy and sell opportunistically in challenging times
  • Total income of USD 152.4 million (+9.2%)
  • Effective gross income of USD 109.8 million (+10.5%)
  • Net gain from fair value adjustment on investment property of USD 42.5 million
  • EBITDA of USD 60.3 million (+47.4%)
  • EBITDA margin of 46.5% (2019: 40.8%)
  • Operating profit with revaluation of USD 83.0 million (2019: USD 80.1 million)
  • Property portfolio value of USD 928.2 million as of 31 December 2020 (+1.4%)
  • NAV per share growth up to USD 38.48 (2019: USD 37.36)
  • Earnings per share of USD 3.91 (2019: USD 4.75)
  • Successful private placement of 1,125 million new shares in December 2020
  • Dividend distributed increased by CHF 2.9 million compared to 2019, with a total distribution of CHF 2.70 per share for those already outstanding at the last Shareholder meeting and of CHF 1.70 per share for the shares issued in December 2020.

Manuel Leuthold, Chairman of the Board of Directors for Varia US Properties, said: “We are very pleased with the positive business development of Varia US Properties in these challenging times. The strong 2020 results demonstrate the resilience and solidity of our growing portfolio in a demanding business year characterized by the COVID-19 pandemic. The multifamily housing sector has been one of the most resilient segments in the US real estate market. In addition, our markets in the Southeast, Midwest and Southwest were the ones that received the largest positive migration and were the less impacted by the downturn of the US economy. These fundamental changes supported at best the strategy adopted by Varia US. Based on the experiences in the unprecedented market conditions of last year, we are very confident to further expand our business and real estate portfolio, and to generate added value for all our stakeholders.

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