- Rental income like for like increased by almost 4% to USD 28.1 million (Q1 2023:
- USD 27.1 million)
- Operating margin (excluding revaluation of properties) was stable at 44.3% (Q1 2023:
- 45.0%)
- Net loss for the period (USD 7.0 million) significantly lower compared to Q1 2023 net loss (USD 34.0 million)
- Portfolio value was slightly lower at USD 1.283 billion (end of 2023: USD 1.300 billion)
- Occupancy rate slightly higher at 92.5% (end of 2023: 92.2%)
- Post-period, one property with a fair value of USD 20.2 million was sold.
Patrick Richard, Executive Member of the Board of Directors of Varia US Properties, said: “Despite a generally strong US economy and a solid labor market, the macro-economic conditions for real estate remained challenging. Hence, thanks to the successful execution of our strategy, we achieved strong operational results in Q1 2024, demonstrated i.e. by the increased like for like rental income and the slightly higher occupancy rate”.
With respect to the US multi-family housing sector, the increase in supply across major Sun Belt markets continued to put pressure on both rent growth (in absolute figures) and occupancy rate during Q1 2024. There is a trade-off between these two metrics, and the Board of Directors of Varia US Properties pushed to find the best balance between occupancy rate and rent growth. This strategy has been successfully implemented over the last few months, as the like for like rent grew by almost 4% and the occupancy rate increased slightly during the reporting period. On the insurance side, the market did stabilize at the beginning of the year and the capacity increased allowing better terms for the year to come.