Ad hoc announcement pursuant to Art. 53 LR
Media release
Zug, 28 August 2025
Varia US Properties achieves significant progress in the first half of 2025
Varia US Properties looks back on a successful half-year 2025 where it achieved significant increases and improvements in various financial and portfolio indicators. In particular, these include an almost doubled total income, a growth in rental income “like for like”, reaching a net operating profit, and an almost 80% lower net loss for the reporting period. In addition, the Company achieved for the first time since Q3 2022 a net gain on the revaluation of its properties. Furthermore, Varia US has continued to increase its occupancy rate and recorded a stable portfolio value.
These strong results were achieved despite challenging market conditions, particularly around capital markets and transaction liquidity. However, the Company’s long-term conviction in the fundamentals of multifamily housing remains intact, supported by persistent demand, structural undersupply and affordability constraints in the for-sale housing market.
Matthew Levy, Managing Director US of Stoneweg, the external asset manager of Varia US Properties, commented: “The increased rental income underpins our strategy to continuously improve our portfolio quality. We will pursue this strategy along with the continued rotation of any non-strategic properties within the portfolio. This creates a strong position to benefit immediately as the overall US multifamily market rebounds.”
Financial highlights
In the first half of 2025, Varia US Properties continued to benefit from increases in “like for like” rental income, which increased 3.6% relative to the comparative period, while total rental income decreased by 9.5% to USD 51.0 million (first half of 2024: USD 56.3 million) due to the decrease in property count. For the first time in many periods, the Company once again achieved a net gain on revaluation of properties of USD 6.4 million for the six months ending at the end of June 2025 (30 June 2024: net loss of USD 32.7 million).
Total operating expenses for the first half of 2025 slightly increased to USD 40.3 million (USD 38.6 million for the comparative 2024 period). This was driven by an increase in repairs, maintenance and minor replacements of USD 1.9 million, predominantly on repairs to older vintage properties related to flooring, plumbing, heating, ventilation, and air conditioning (HVAC), turnover costs, and other required building maintenance. In addition, there were higher transaction costs due to the disposition of three properties in the reporting period.
Financing costs increased in the first half of 2025 from USD 16.3 million to USD 27.7 million mainly due to the net foreign currency loss of USD 7.8 million (first half of 2024: gain of USD 4.4 million). This is primarily driven by the impact of the weakening USD with respect to CHF and its effect on the CHF 50 million bond payable in October 2025.
Total Net Operating Income and EBITDA trended downward overall during the first half of the year due to the smaller portfolio size. However, Net Operating Income (NOI) rose notably in Q2 2025 compared to Q1 2025, driven by the higher Rental Income and a decline in insurance costs. EBITDA declined in the first quarter of 2025 due to an increase in minor replacements in older buildings. This trend continued in the second quarter for the same reasons but was partially offset by an increase in minor replacements.
During the first half of 2025, a loss of USD 2.8 million was incurred (first half of 2024: loss of USD 13.4 million). Despite this net loss, the Company profited USD 6.7 million in Q2 2025 after considering financing costs and income taxes (Q2 2024: loss of USD 6.4 million).
Portfolio development
During the first six months of 2025, the Company sold three properties comprising 608 units in total across Memphis (Tennessee), Shawnee (Kansas), and Bellevue (Nebraska) for total gross proceeds of USD 62.4 million. An estimated gross Internal Rate of Return (IRR) of 14.6% and gross multiple of 1.63x was achieved across the disposition of all three properties. These strategic dispositions reflect the Company’s strategy to enhance the portfolio’s asset quality and decrease operational costs associated with older vintage assets. Additionally, these sales facilitated exits from markets where newer developments intensified competition and contributed to increased vacancies.
The sales resulted in a decrease in the total portfolio value by 4.3%, while the “like for like” real estate value increased by 1.1% to USD 1,143 billion as of June 30, 2025, compared to USD 1,130 million at the end of December 2024.
The physical occupancy rate grew slightly to 94.3% from 93.7% at the end of 2024. The average monthly rate per unit came to USD 1,266 from USD 1,250.
At the end of H1 2025, the portfolio consisted of 24 properties, totaling 7,120 units across ten U.S. states, reflecting a regionally balanced and diversified footprint.
ESG achievements
In the first half of 2025, the Company initiated two BREEAM certifications, received four ENERGY STAR® performance certifications, and sought two IREM Certified Sustainable Property (CSP) certifications for the first time. Such certifications, which are awarded by independent third parties, give Varia US Properties access to sustainable financing instruments while also increasing the attractiveness of the portfolio. This has a positive impact on capitalization rates and liquidity.
Varia US Properties expects to receive its fourth consecutive GRESB assessment in September and its second CDP rating in December 2025.
Encouraging results are also evident in the social sphere: resident satisfaction at its properties remains high. Based on 2,670 evaluations, the Company achieved an overall satisfaction rating of 3.93 by July 2025, which is close to the Kingsley Index benchmark.
Outlook
The Board of Directors of Varia US Properties will continue to evaluate all options regarding the underlying financing of the Company, for instance related to portfolio management of its highly effective Fannie Mae & Freddie Mac Credit Facilities. The Board also continues to evaluate opportunities to provide additional resources for the Company which would improve the ability to enhance performance and ultimately grow the portfolio when attractive opportunities are presented.
Varia US Properties currently holds a CHF 50 million public bond which expires on 7 October 2025. So far, the Company has remained flexible in its approach regarding the full payoff versus partial or full refinancing of the bond. The Board of Directors is currently evaluating all its options to create the optimal long-term financing solution for the Company.
As communicated previously, the Board proposed that the Company forego quarterly dividend payments. The Board will assess the Company’s annual results, liquidity and strategy to determine whether it is appropriate to propose a dividend at the Company’s Annual General Meeting in 2026.
Matthew Levy, Managing Director US of Stoneweg, the external asset manager of Varia US Properties, concluded: “Through the ongoing year, Varia US Properties anticipates the US multifamily real estate market to continue to see improvements in its underlying fundamentals. These improvements will be driven forward by the stabilization and eventual decreasing of the broader interest rate environment and strong residential demand continuing the absorption of a reduced supply pipeline. During this period of positive market dynamics, Varia US Properties will look to bolster the operational performance of its currently owned properties and strive to increase performance over the remainder of 2025 and beyond. The Company’s main focus will be driving granular operational enhancements on a property-by-property basis within the portfolio to increase on-site operating margins and improve bottom-line Net Operating Income.”
H1 2025 key financial figures
|
In USD |
As of 30 June 2025 |
As of 30 June 2024 |
D % |
|
Total Income |
65.9 million |
34.6 million |
90.6 |
|
Total operating expenses |
40.3 million |
38.6 million |
4.6 |
|
Net loss |
(2.8) million |
(13.4) million |
(79.0)* |
|
Earnings per share |
(0.28) |
(1.33) |
(78.9)* |
|
|
As of 30 June 2025 |
As of 31 December 2024 |
|
|
Total assets |
1.205 billion |
1.253 billion |
(3.9) |
|
Total liabilities |
852.7 million |
898.0 million |
(5.0) |
|
Total equity |
352.3 million |
355.8 million |
(1.0) |
* Relative to Q2 2024, the loss for Q2 2025 decreased which represents income growth relative to the comparative period.
The following table provides a further overview of the further financial figures the Company considers relevant to assess its current financial performance. A detailed calculation can be found in the section “Alternative Performance Measures” of the Half-Year 2025 report (pages 34-36).
|
In USD million |
As of 30 June 2025 |
As of 30 June 2024 |
D % |
|
Rental income |
51.0 |
56.3 |
(9.5) |
|
Rental income “like for like” |
49.4 |
47.7 |
3.6 |
|
Net gain (loss) on revaluation of properties |
6.4 |
(32.7) |
(119.6)* |
|
Operating margin (in %) excluding revaluation** |
32.2% |
42.7% |
(10.5) |
|
Operating profit (loss) incl. revaluation |
25.5 |
(4.0) |
(740.0) * |
|
EBITDA (operating profit or loss less unrealized revaluation) |
17.8 |
30.7 |
( 41.9) |
|
EBITDA margin (in %) |
30.7% |
44.3% |
(13.6) |
|
Net loss |
( 2.8 ) |
(13.4) |
(79.0)*** |
|
Normalized Funds From Operations (FFO)**** |
4.8 |
6.2 |
(23.2) |
|
Earnings per share (in USD) |
(0.28) |
(1.33) |
(78.9)*** |
|
Net Asset Value per share (in USD)***** |
34.79 |
35.13 |
(1.0) |
* These figures presented a loss in 2024 and a gain in 2025, which represents income growth relative to the prior year. This decrease in loss is represented with a negative percentage change.
** Calculated as Operating Loss less Net Loss on revaluation of properties divided by Total Income less Net Loss on revaluation of properties.
***
Relative to Q2 2024, the loss for Q2 2025 decreased which represents income growth relative to the comparative period.
**** FFO less debt cost amortization, insurance proceeds, foreign exchange gain or loss, and other non-cash items).
***** as of 30 June 2025 and 31 December 2024.
Additional information
Varia US’ Half-Year 2025 Report and the H1 2025 investor presentation as well as a leaflet summarizing the report in German are available for download on the Company’s website at variausproperties.com/investors/financial-statements/ .
Key dates
Q3 2025 Update 27 November 2025
Annual Report 2025 31 March 2026
Ordinary General Meeting 2026 30 April 2026
Contact
Juerg Staehelin, IRF Reputation; Phone: +41 43 244 81 51, E-mail: investors@variausproperties.com
About Varia US Properties AG
Varia US Properties AG is a Swiss based real estate company exclusively investing in U.S. multifamily housing with a main focus on secondary and tertiary markets. Established in 2015, the Company acquires, holds, transitions and repositions properties in the boundaries of metropolitan regions of the U.S. in order to secure rental income and value growth. More information: www.variausproperties.com
Disclaimer
This communication expressly or implicitly contains certain forward-looking statements concerning Varia US Properties AG and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of Varia US Properties AG to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Varia US Properties AG is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise.
This media release is also published in French and German (see pdf-downloads at the top of this release). This English version is decisive.