Varia announces today ongoing successful business development in the first quarter 2018 – full deployment of new equity raised in capital increase in January 2018

  • Swift investment of new capital raised with four acquisitions for USD 81.5 million – two more properties under contract
  • Non-controlling interests transfer of the former Peak Capital Partners portfolio near completion
  • Increase of Effective Gross Income from USD 12.7 million to USD 18.7 million
  • Net Operating Income up from USD 7.0 million to USD 10.2 million

Full Media Release

The main focus of Varia US Properties in the first quarter 2018 was on further acquisitions as
well as on the transfer of the non-controlling interests of the initial portfolio. Varia swiftly started
to deploy the newly equity raised during the January capital increase and acquired four
properties in the States New Mexico, Arizona and Tennessee for USD 81.5 million and with a
total of 1,250 units. In addition, Varia placed two more properties in Ohio under contract with a
total of 588 units. Once these two transactions are closed, all the new equity will have been
invested. The resulting portfolio, as of 31 March 2018, consisted of 48 properties totalizing
8,574 units.

In December 2017, Varia signed an agreement with Peak Capital Partners to take full
ownership and control of its assets and to liquidate the non-controlling interest position in its
financial statements. As of 1 March 2018, Varia was able to change the property management
for all properties previously managed by Peak. The transfer of the loans is ongoing and should
be completed by the end of June 2018 at the latest. This transfer will is expected to allow Varia
to save yearly about USD 0.6 million in asset management fees and retain 100% of the profit
of the wholly owned portfolio.