- Total income of USD 88.2 million, plus 36.5%
- Effective gross income of USD 65.8 million (+ 68.0%)
- Significant gain from portfolio value adjustment of USD 22.4 million (including USD 6.9 million of capex invested)
- Net operating profit before debt, taxes and exceptional of USD 48.9 million, up 60%
- Earnings per share of USD 4.15 (2016: USD 3.37)
- Property portfolio value of USD 618 million as of 31 December 2017, plus 79.9%
- Total equity of USD 270.4 million
- Balance sheet total of USD 668.2 million
- Gross potential income increased to USD 83.9 million, up 68.8%
- NAV growth to USD 34.38 (USD 33.65 as of 31.12.16) after a total distribution in 2017 of CHF 3.45
- Targeted distribution of CHF 2.50 per share for the business year 2018 to be paid after the 2019 General Assembly
2017 was a very positive year for Varia US Properties. In its first full year as a listed company on SIX Swiss Exchange, Varia continued to be focused on further implementing its growth and value-add strategy. The business year was dedicated to additional promising investments and the consolidation of the business. Overall, the full-year results are above the expectations. They demonstrate the potential of the US multifamily housing for secondary and tertiary markets as well as the effectiveness of the strategy adopted by Varia.
Effective gross income of USD 65.8 million – gross potential income up to USD 83.9 million
The resulting portfolio, as of 31 December 2017, consisted of 50 properties totalizing 8,245 units in 18 states, representing USD 618 million of real estate value (2016: USD 343.5 million). The occupancy rate stood at 94.3% (2016: 95.5%). The portfolio generated in 2017 a yearly effective gross income of USD 65.8 million (2016: USD 39.1 million) and a total income of USD 88.2 million (2016: USD 64.6 million). Total operating expenses were USD 39.2 million (2016: USD 33.9 million), which results in a net operating profit of USD 48.9 million (2016: USD 30.6 million). After deduction of the finance cost and the income tax provision, the profit for the period is USD
34.9 million (2016: USD 16.2 million), of which USD 28.1 million are attributable to Varia (2016: USD 8.9 million).
The net gain from fair value adjustment on investment property amounted to USD 22.4 million (2016: USD 21.2 million) and reflects the capex investments as well as the execution of the value-add strategy of Varia US Properties.
Manuel Leuthold, Chairman of the Board of Directors of Varia, said: “Varia is outperforming expectations and has gained further profile in the last year. The very good results underscore the efficiency of our investment strategy focusing on secondary and tertiary markets in growing urban submarkets in the US. Our value-add strategy is working very well and brings additional revenues to the properties. This makes us confident about Varia’s further growth.”