- Total income up 31.2% to USD 43.3 million – rental income up 50.4%
to USD 26.2 million - Significant 50% rise in effective gross income to USD 28.4 million
Net operating income of USD 13.5 million - Value of property portfolio tops USD 500 million and consists of 47 properties
- Gross potential income increased to USD 71.1 million
- Substantial gain from portfolio value adjustment of USD 14.9 million
- Further solid financial results in US Dollars expected for 2017
Varia US Properties, a Swiss based real estate company exclusively investing in US multifamily housing with a main focus on secondary and tertiary markets, saw its business activities perform positively in the first half of 2017. After the capital raise and the successful IPO of the Company at SIX Swiss Exchange in December 2016, the first six months were, as planned, dedicated to investments and consolidation. Overall, the half year results are very positive and line with the expectations in a growing portfolio.
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Sustainable portfolio development secures future income growth
The resulting portfolio, as of 30 June 2017, consisted of 47 properties totalizing 7,289 units, representing USD 508.1 million of real estate value. The occupancy rate stood at 95.3%. In the first six months 2017, the portfolio generated a rental income of USD 26.2 million, compared to USD 17.4 million during the period from 28 September 2015 through 30 June 2016, and a total income of 43.3 million (previous year USD 33.0 million). The gross potential income as of 30 June 2017 increased to up to USD 71.1 million.
The net gain from fair value adjustment on investment property amounted to USD 14.9 million and reflects the execution of the value-add strategy of Varia US Properties.
Total operating expenses were USD 18.2 million (previous year USD 19.8 million), which results in an operating profit of USD 25.1 million (previous year USD 13.2 million). After deduction of the finance cost and the income tax provision, the profit for the period is USD 15.0 million (previous year USD 6.5 million), of which USD 12.2 million (previous year USD 2.9 million) are attributable to Varia.
With regard to the realized operating results, the effective gross income is USD 28.4 million and the total operating expenses is USD 14.9 million which give a net operating income of USD 13.5 million.