Ad hoc announcement pursuant to Art. 53 LR
Media release
Zug, 27 November 2025
Varia US Properties’ Q3 2025 results pave the way for growth and a return to profitability
Matthew Levy, Managing Director Americas of Stoneweg, the external asset manager of Varia US Properties, commented: “The US multifamily real estate market continued to navigate through a period of transition during the third quarter of 2025. However, it is well positioned for renewed growth opportunities as we look ahead to 2026. Varia US’ operations performed strong despite these challenging conditions. Market fundamentals support a more favorable environment in the coming quarters and multifamily housing remains a fundamental need. We are confident in the sector’s ability to perform in the years ahead, which then will also have a positive impact on our Company. There is a clear path forward for growth and a return to profitability for Varia US”.
Varia US Properties concluded the reporting period from January-September 2025 (“Q3 results”) strong with total income increasing 22.0% from USD 75.4 million for the nine months ending 30 September 2024 to USD 91.9 million for the nine months ending 30 September 2025. Like-for-like rental income increased to USD 71.4 million, representing a 3.5% increase from the comparative period, while total rental income decreased by 9.5% to USD 75.0 million (Q3 2024: USD 82.9 million). The Company achieved a net gain on revaluation of properties of USD 3.9 million for the first nine months of 2025 (first nine months of 2024: net loss of USD 23.6 million) with like-for-like portfolio value increasing 1.4% to USD 1.110 billion as of 30 September 2025. This increase was driven by higher appraised net operating income while capitalization rates remained materially consistent.
After considering the increase in income and decrease in operating expenses, operating profit including revaluation increased from USD 14.4 million for the nine months ending 30 September 2024 to USD 33.9 million as per the end of September 2025.
The Company continued its strategy of disposing older vintage assets to position itself for future growth, closing on the sale of four assets so far in 2025. This contributed to a 5.0% decrease in total operating expenses from USD 61.0 million through September 2024 to USD 58.0 million through September 2025 as well as to a decrease in portfolio value from USD 1.194 billion as of 31 December 2024 to USD 1.110 billion as per the end of September 2025.
Total financing costs increased to USD 37.3 million in the reporting period (as per end of September 2024: USD 32.3 million) due to a USD 7.3 million increase in foreign currency loss, which was offset by a USD 2.3 million decrease in interest expense. Additionally, as part of its strategic initiative to reduce leverage and strengthen its financial position, Varia US repaid its CHF 50 million bond (VAR21) at the beginning of October 2025 using available cash reserves and a CHF 25 million private loan with flexible repayment terms. This reduced the Company’s exposure to foreign currency risk and will help limit foreign currency losses in future periods.
As a result of these developments, Varia US Properties concluded the reporting period with a loss for the nine months ending 30 September 2025 of just USD 3.5 million (nine months ending September 30, 2024: loss of USD 12.5 million).
At the property level, the monthly rent per unit on a like-for-like basis increased from USD 1,250 as of December 2024 to USD 1,280 as of September 2025. The Company believes moderate rent growth in some of its Midwest assets will continue, while many Sunbelt markets are still working through absorption of new housing supply. The so-called economic occupancy (the percentage of potential rental income collected after considering physical vacancy, concessions, other discounts, bad debts, and down units which are temporarily unavailable for occupancy due to maintenance, renovations, or repairs) on a like-for-like basis increased from 89% as of September 2024 to 92% as of September 2025. This improvement was primarily driven by lower concessions (generally in the form of reduced rent for a temporary period to attract or retain residents), a decrease in physical vacancy during the period, and the increase in rents.
“As we move into the closing of 2025 and prepare already for 2026, Varia US remains focused on executing its strategic priorities to position the portfolio for long-term growth and resilience. While near-term market conditions require disciplined management, we believe the combination of improving fundamentals, easing capital costs, and a significant reduction in new multifamily housing supply will create a favorable environment for multifamily performance. Our commitment to operational excellence, prudent capital allocation, as well as sustainability leadership continues to guide our decisions and strategy. We are confident that these efforts will drive value creation for our shareholders and strengthen the position of our Company in the years ahead” , concluded Manuel Leuthold, Chairman of the Board of Directors of Varia US Properties.
Q3 2025 key financial figures
|
(unaudited) in USD |
January-September 2025 |
January-September 2024 |
D % |
|
Total income |
91.9 million |
75.4 million |
22.0 |
|
Operating expenses |
58.0 million |
61.0 million |
(5.0) |
|
Net (loss) for the period |
(3.5) million |
(12.5) million |
(71.5)* |
|
Earnings per share |
USD (0.35) |
USD (1.23) |
(71.5)* |
|
|
As of 30 September 2025 |
As of 31 December 2024 |
|
|
Total assets |
1,191.8 million |
1,253.8 million |
(4.9) |
|
Total liabilities |
840.4 million |
898.0 million |
(6.4) |
|
Total equity |
351.4 million |
355.8 million |
(1.2) |
* Relative to Q3 2024, the loss for Q3 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 Q3 2025 report (pages 28-30).
|
(unaudited) in USD |
January-September 2025 |
January-September 2024 |
D % |
|
Rental income |
75.0 million |
82.9 million |
(9.5) |
|
Rental income “like-for-like” 1 |
71.4 million |
69.0 million |
3.5 |
|
EBITDA (operating profit/(loss) less unrealized revaluation) |
25.7 million |
39.4 million |
(34.7) |
|
Funds from Operations 2 |
(3.6) million |
8.7 million |
(140.6) |
|
|
As of 30 September 2025 |
As of 31 December 2024 |
|
|
Properties |
23 |
27 |
(14.8) |
|
Units as of |
6,835 |
7,728 |
(11.6) |
|
Portfolio value |
1.110 billion |
1.194 billion |
(7.1) |
|
Monthly rent per unit held for the full month ending |
USD 1,280 |
USD 1,250 |
2.4 |
|
Occupancy rate as of |
93.3% |
93.8% |
(0.5) |
1
“like-for-like” compares assets that were held for the full periods of Q3 2025 and Q3 2024
2
Funds from Operations (FFO) is defined as net profit/(loss) excluding fair value gain or loss and transaction costs, tax effected
Note: Some amounts above may not add due to rounding
The Q3 2025 Report of Varia US Properties is available for download on the Company’s website at variausproperties.com/investors/quarterly-updates/ .
Key dates
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. This English version is decisive.