Varia US Properties Ltd

Latest Results (09.11.2025):

For the first half of 2025 (ending June 30, 2025), Varia US Properties Ltd reported mixed financial results. The company experienced a notable increase in total income driven by improved property revaluations while facing pressure on core rental and operating earnings. Although like-for-like rental income improved modestly, overall rental income and realized income declined, and key performance measures such as EBITDA and normalized Funds from Operations deteriorated compared to the same period last year.

Income Performance

Varia US Properties Ltd’s rental income fell by 9.5% year-over-year, even as like-for-like rental income rose by 3.6%, reflecting solid organic performance. Overall, total realized income decreased by 16%, yet total income surged by 90.6% due to significant revaluation effects.

Operating Results

During the first half of 2025, the company reversed its previous operating loss by recording an operating profit of USD 25.5 million (including revaluation gains). However, EBITDA declined by 41.9%, with margins dropping from 44.3% to 30.7%, highlighting challenges in sustaining core operational profitability.

Revaluation Impact and Earnings

The report shows a dramatic turnaround in revaluation figures, with the net gain on revaluation shifting to a positive USD 6.4 million from a loss of USD 32.7 million in the prior period. This improved revaluation outcome contributed to a less negative earnings per share, from –1.33 USD in the comparable period to –0.28 USD in H1 2025.

Balance Sheet and Portfolio

On the balance sheet, total assets and equity saw slight declines (–3.9% and –1.0% respectively), and the portfolio was modestly streamlined, with the number of properties decreasing from 27 to 24 and units from 7,728 to 7,120. Occupancy rates and other key portfolio metrics remained stable, underpinning a resilient market position.