Strong 2022 results for Varia US Properties despite volatile market developments – increased rental income (+17.3%), EBITDA (+9.3%) and portfolio value (+20.7%)

  • Rental income grew to USD 126.5 million (2021: 107.9 million)
  • Total realized income at USD 188.4 million (2021: USD 163.6 million)
  • Total income was USD 297.7 million (2021: USD 320.0 million)
  • EBITDA grew to USD 88.2 million (2021: USD 80.7 million)
  • Net Gain on revaluation of properties at USD 153.7 million (2021: USD 197.4 million)
  • Operating profit incl. revaluation was at USD 197.6 million (2021: USD 237.1 million)
  • Portfolio value increased to USD 1.704 billion (2021: 1.412 billion)
  • NAV per share increased to USD 60.13 (2021: USD 50.79)
  • Earnings per share of USD 12.11 (2021: USD 15.41)
  • Proposed dividend of CHF 3.20 per share
  • Meaningful ESG progress achieved; full ESG report 2022 to follow

    Manuel Leuthold, Chairman of the Board of Directors of Varia US Properties AG, said: “The strong results of Varia US achieved in 2022 are due to the high quality of the portfolio and the effectiveness of its repositioning. It also demonstrates once more the solidity of the US workforce housing sector in the States where the company invests. For 2023, the Board anticipates a slight decrease of its portfolio valuation, but also anticipates strong operating results that will continue to benefit its investors.

    The US real estate market has been very volatile in 2022. The year started at a multi-year high with a frenetic market and still low capitalization and interest rates. As the year progressed, the Federal Reserve increased interest rates at the fastest pace ever observed which drove greater and greater capitalization rate expansion and resulted in fewer transactions in the marketplace. Hence, Varia US has only been marginally impacted so far by this complete market shift, due to the quality of its assets and its high proportion of fixed rate debt.

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