Ad hoc announcement pursuant to Art. 53 LR
Media release
Zug, 28 May 2026
Varia US Properties achieves a strong operational start to 2026
Manuel Leuthold, Chairman of the Board of Directors of Varia US Properties, stated: “Our Company continued to make meaningful progress on its strategic objectives during the first quarter of 2026. These objectives include optimizing the portfolio by selling properties of a certain vintage, freeing up capital from assets with high ongoing expenditure requirements, and improving the long-term growth profile of Varia US.”
Consequently, Varia US completed the disposition of three older assets with an average vintage of 1977 in the reporting period. As a result, the operating result including revaluation increased to a profit of USD 2.2 million for Q1 2026 (Q1 2025: loss of USD 0.3 million). Normalized EBITDA decreased to USD 5.6 million (Q1 2025: USD 8.7 million) primarily due to the reduced portfolio size and relatively fixed corporate costs. Normalized Funds from Operations (FFO) remained relatively constant at USD 2.0 million during the first quarter of 2026 (Q1 2025: USD 2.1 million). The previously mentioned property sales also contributed to a 3.4% decrease in total operating expenses to USD 20.5 million for the three months ending March 31, 2026 (USD 21.3 million in Q1 2025).
Total financing costs decreased to USD 11.0 million in Q1 2026 compared to USD 12.1 million in Q1 2025, which was due to the repayment of the CHF 50.0 million bond (VAR21) that significantly reduced the Company’s foreign currency exposure on borrowings in CHF. Additionally, higher interest rate property level debt was repaid in conjunction with the three dispositions during the reporting period, thereby reducing the weighted average interest rate across the remaining properties to approximately 4.36%, which is well below current market rates. Overall and after considering an income tax benefit of USD 2.4 million (Q1 2025: USD 3.0 million), the Company concluded the reporting period with a loss of USD 6.3 million (Q1 2025: loss of USD 9.5 million).
Varia US strengthened its balance sheet during Q1 2026 with the CHF 19.5 million partial repayment on the short-term loan. Shortly after the reporting period, the remaining CHF 5.5 million of this short-term loan was repaid using the proceeds from two additional strategic dispositions. The first transaction was closed at the end of April, and the second transaction is expected to be closed today, 28 May 2026.
At property level, net operating income on a like-for-like property level increased by 4.6% to USD 12.4 million as of Q1 2026 (Q1 2025: USD 11.9 million), driven primarily by significant insurance savings that will benefit property performance throughout the remainder of 2026, alongside modest total revenue growth. Monthly rent per unit on a like-for-like basis increased from USD 1,292 as of December 2025 to USD 1,300 as of March 2026. Economic occupancy on a like-for-like basis remained relatively stable at 90% (Q1 2025: 91%). The overall portfolio value decreased from USD 1.046 billion to USD 947.2 million due to the three dispositions during the quarter, while the like-for-like portfolio value remaining relatively constant compared to December 2025.
Outlook
The U.S. multifamily real estate market continued to show signs of improvement while navigating an extended period of normalization during the first quarter of 2026. This is following on several years of elevated construction activity and macroeconomic volatility. Ongoing affordability challenges in the homeownership market underpins rental demand, particularly in workforce housing segments where Varia US Properties is present. While near ‑ term rent growth overall is expected to remain moderate across most markets, the Company anticipates gradual improvement as 2026 progresses, with stronger and more sustained rent growth emerging in 2027 as supply pressures subside. Varia US has been positioned to capitalize on this trend given the diverse footprint of the portfolio.
Operationally, Varia US will continue to prioritize non ‑ discretionary capital expenditures across the existing portfolio to preserve asset quality and protect long ‑ term cashflow generation, while also ramping up to execute select value add capital expenditures later this year. The Company expects strong leasing velocity, consistent with typical summer seasonality, to further support performance throughout the second half of the year and into 2027.
As previously announced, the Company is currently pursuing a recapitalization to support value ‑ accretive expansion. The process has been met with robust interest from a wide range of potential capital partners, putting Varia US in an excellent position to secure an advantageous path forward with an expected closing before year end. Matthew Levy, Managing Partner Americas at Stoneweg, the external asset manager of Varia US Properties, commented: “With a healthier baseline portfolio, reduced leverage, and improved financial flexibility, Varia US expects to be well positioned to return to growth mode as transaction activity increases and fundamentals continue to strengthen, timing this transition ahead of a broader return to market equilibrium.”
Q1 2026 key financial figures
|
(unaudited) |
Q1 2026 (in USD) |
Q1 2025 (in USD) |
D % |
|
Total Income |
22.7 million |
20.9 million |
8.7 |
|
Total operating expenses |
20.5 million |
21.3 million |
(3.4) |
|
Net loss |
(6.4) million |
(9.5) million |
(32.9)* |
|
Earnings per share |
(0.63) |
(0.94) |
(33.0)* |
|
|
As of Mar 31, 2026 |
As of Dec 31, 2025 |
|
|
Total current assets |
76.8 million |
178.8 million |
(57.1) |
|
Total noncurrent assets |
896.5 million |
898.5 million |
(0.2) |
|
Total current liabilities |
63.9 million |
160.3 million |
(60.1) |
|
Total noncurrent liabilities |
592.5 million |
593.9 million |
(0.2) |
|
Total equity |
316.8 million |
323.1 million |
(1.9) |
*
Relative to Q1 2025, the loss during Q1 2026 decreased which represents income growth relative to the comparative year.
Note: Some amounts above may not add due to rounding.
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 Q1 2026 report (pages 28-30).
|
(unaudited) |
Q1 2026 (in USD) |
Q1 2025 (in USD) |
D % |
|
Rental Income |
22.3 million |
25.7 million |
(13.1) |
|
Rental Income like for like* |
20.3 million |
20.2 million |
0.4 |
|
EBITDA (operating profit less unrealized revaluation) |
5.8 million |
8.7 million |
(33.0) |
|
|
As of Mar 31, 2026 |
As of Dec 31, 2025 |
|
|
Properties |
19 |
22 |
(13.6) |
|
Units as of |
5,769 |
6,571 |
(12.2) |
|
Portfolio Value |
947.2 million |
1.046 billion |
(9.5) |
|
Monthly rent per unit for the full month ending |
USD 1,300 |
USD 1,277 |
1.8 |
|
Occupancy rate as of |
92.7% |
93.2% |
(0.5) |
* Like for Like compares assets that were held for the full periods of Q1 2025 and Q1 2026.
Note: Some amounts above may not add due to rounding.
The Q1 2026 Report of Varia US Properties is available for download on the Company’s website at
Varia US Properties achieves a strong operational start to 2026
Manuel Leuthold, Chairman of the Board of Directors of Varia US Properties, stated: “Our Company continued to make meaningful progress on its strategic objectives during the first quarter of 2026. These objectives include optimizing the portfolio by selling properties of a certain vintage, freeing up capital from assets with high ongoing expenditure requirements, and improving the long-term growth profile of Varia US.”
Consequently, Varia US completed the disposition of three older assets with an average vintage of 1977 in the reporting period. As a result, the operating result including revaluation increased to a profit of USD 2.2 million for Q1 2026 (Q1 2025: loss of USD 0.3 million). Normalized EBITDA decreased to USD 5.6 million (Q1 2025: USD 8.7 million) primarily due to the reduced portfolio size and relatively fixed corporate costs. Normalized Funds from Operations (FFO) remained relatively constant at USD 2.0 million during the first quarter of 2026 (Q1 2025: USD 2.1 million). The previously mentioned property sales also contributed to a 3.4% decrease in total operating expenses to USD 20.5 million for the three months ending March 31, 2026 (USD 21.3 million in Q1 2025).
Total financing costs decreased to USD 11.0 million in Q1 2026 compared to USD 12.1 million in Q1 2025, which was due to the repayment of the CHF 50.0 million bond (VAR21) that significantly reduced the Company’s foreign currency exposure on borrowings in CHF. Additionally, higher interest rate property level debt was repaid in conjunction with the three dispositions during the reporting period, thereby reducing the weighted average interest rate across the remaining properties to approximately 4.36%, which is well below current market rates. Overall and after considering an income tax benefit of USD 2.4 million (Q1 2025: USD 3.0 million), the Company concluded the reporting period with a loss of USD 6.3 million (Q1 2025: loss of USD 9.5 million).
Varia US strengthened its balance sheet during Q1 2026 with the CHF 19.5 million partial repayment on the short-term loan. Shortly after the reporting period, the remaining CHF 5.5 million of this short-term loan was repaid using the proceeds from two additional strategic dispositions. The first transaction was closed at the end of April, and the second transaction is expected to be closed today, 28 May 2026.
At property level, net operating income on a like-for-like property level increased by 4.6% to USD 12.4 million as of Q1 2026 (Q1 2025: USD 11.9 million), driven primarily by significant insurance savings that will benefit property performance throughout the remainder of 2026, alongside modest total revenue growth. Monthly rent per unit on a like-for-like basis increased from USD 1,292 as of December 2025 to USD 1,300 as of March 2026. Economic occupancy on a like-for-like basis remained relatively stable at 90% (Q1 2025: 91%). The overall portfolio value decreased from USD 1.046 billion to USD 947.2 million due to the three dispositions during the quarter, while the like-for-like portfolio value remaining relatively constant compared to December 2025.
Outlook
The U.S. multifamily real estate market continued to show signs of improvement while navigating an extended period of normalization during the first quarter of 2026. This is following on several years of elevated construction activity and macroeconomic volatility. Ongoing affordability challenges in the homeownership market underpins rental demand, particularly in workforce housing segments where Varia US Properties is present. While near ‑ term rent growth overall is expected to remain moderate across most markets, the Company anticipates gradual improvement as 2026 progresses, with stronger and more sustained rent growth emerging in 2027 as supply pressures subside. Varia US has been positioned to capitalize on this trend given the diverse footprint of the portfolio.
Operationally, Varia US will continue to prioritize non ‑ discretionary capital expenditures across the existing portfolio to preserve asset quality and protect long ‑ term cashflow generation, while also ramping up to execute select value add capital expenditures later this year. The Company expects strong leasing velocity, consistent with typical summer seasonality, to further support performance throughout the second half of the year and into 2027.
As previously announced, the Company is currently pursuing a recapitalization to support value ‑ accretive expansion. The process has been met with robust interest from a wide range of potential capital partners, putting Varia US in an excellent position to secure an advantageous path forward with an expected closing before year end. Matthew Levy, Managing Partner Americas at Stoneweg, the external asset manager of Varia US Properties, commented: “With a healthier baseline portfolio, reduced leverage, and improved financial flexibility, Varia US expects to be well positioned to return to growth mode as transaction activity increases and fundamentals continue to strengthen, timing this transition ahead of a broader return to market equilibrium.”
Q1 2026 key financial figures
|
(unaudited) |
Q1 2026 (in USD) |
Q1 2025 (in USD) |
D % |
|
Total Income |
22.7 million |
20.9 million |
8.7 |
|
Total operating expenses |
20.5 million |
21.3 million |
(3.4) |
|
Net loss |
(6.4) million |
(9.5) million |
(32.9)* |
|
Earnings per share |
(0.63) |
(0.94) |
(33.0)* |
|
|
As of Mar 31, 2026 |
As of Dec 31, 2025 |
|
|
Total current assets |
76.8 million |
178.8 million |
(57.1) |
|
Total noncurrent assets |
896.5 million |
898.5 million |
(0.2) |
|
Total current liabilities |
63.9 million |
160.3 million |
(60.1) |
|
Total noncurrent liabilities |
592.5 million |
593.9 million |
(0.2) |
|
Total equity |
316.8 million |
323.1 million |
(1.9) |
*
Relative to Q1 2025, the loss during Q1 2026 decreased which represents income growth relative to the comparative year.
Note: Some amounts above may not add due to rounding.
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 Q1 2026 report (pages 28-30).
|
(unaudited) |
Q1 2026 (in USD) |
Q1 2025 (in USD) |
D % |
|
Rental Income |
22.3 million |
25.7 million |
(13.1) |
|
Rental Income like for like* |
20.3 million |
20.2 million |
0.4 |
|
EBITDA (operating profit less unrealized revaluation) |
5.8 million |
8.7 million |
(33.0) |
|
|
As of Mar 31, 2026 |
As of Dec 31, 2025 |
|
|
Properties |
19 |
22 |
(13.6) |
|
Units as of |
5,769 |
6,571 |
(12.2) |
|
Portfolio Value |
947.2 million |
1.046 billion |
(9.5) |
|
Monthly rent per unit for the full month ending |
USD 1,300 |
USD 1,277 |
1.8 |
|
Occupancy rate as of |
92.7% |
93.2% |
(0.5) |
* Like for Like compares assets that were held for the full periods of Q1 2025 and Q1 2026.
Note: Some amounts above may not add due to rounding.
The Q1 2026 Report of Varia US Properties is available for download on the Company’s website at https://variausproperties.com/investors/quarterly-updates/ .
Key dates
Half-year results 2026 31 August 2026
Q3 2026 Update 30 November 2026
Annual Result 2026 31 March 2027
Contact information
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.
Key dates
Half-year results 2026 31 August 2026
Q3 2026 Update 30 November 2026
Annual Result 2026 31 March 2027
Contact information
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.