Varia US Properties AG · SIX:VARN
Varia US Properties — FY2022 Earnings Presentation
26 slides from Varia US Properties's earnings presentation, Mar 30, 2023
Slide 1: 2022 Annual Report Media & Analysts Presentation
2022 ANNUAL REPORT Media & Analysts Presentation March 30, 2023
Slide 2: Important Notice
Important Notice This presentation includes forward-looking information and statements, including statements concerning the outlook for our business. These statements are based on current expectations, estimates and projections about the factors that may affect our future performance, including the
Slide 3: Agenda
Agenda 1. Key achievements 2022 2. Financials 3. Portfolio and growth strategy 4. ESG 5. Outlook 2023 6. Q&A 3
Slide 4: Today's Speakers
TODAY’S SPEAKERS MANUEL LEUTHOLD PATRICK RICHARD ■ Chairman, ■ Executive Member of the Board of Varia US Properties AG Directors,Varia US Properties AG ■ Founder and CEO of Stoneweg US, LLC 4
Slide 5: Key achievements 2022
Y VARIA US PROPERTIES Key achievements 2022 . susvceo av sTonEWes GA)
Slide 6: 2022 Key Achievements (1/2)
2022 Key Achievements (1/2) Key Outcomes • Corporate activities and operations • Strong results despite challenging market development • Significant increase of rental income and EBITDA • Portfolio value increased by 20.7% • Improved quality of Company portfolio along with reduced risks related to t
Slide 7: 2022 Key Achievements (2/2)
2022 Key Achievements (2/2) Key Outcomes • Key Figures • Rental income grew to USD 126.5 million (2021: 107.9 million) • Total realized income at USD 188.4 million (2021: USD 163.6 million) • Total income was USD 297.7 million (2021: USD 320.0 million) • EBITDA grew to USD 88.2 million (2021: USD 80
Slide 8: Financials
Y VARIA US PROPERTIES Financials . susvceo av sTonEWes GA)
Slide 9: Consolidated Statement of Profit and Loss
Consolidated Statement of Profit and Loss In USD million As of December 31, 2022 As of December 31, 2021 Rental income 126,548,336 107,920,005 Other income 16,912,347 13,065,619 Insurance proceeds 592,519 1,621,993 Net gain from fair value adjustment on invest. property 153,693,947 197,371,103 Total
Slide 10: Consolidated Statement of Financial Position (1/2)
Consolidated Statement of Financial Position (1/2) 10
Slide 11: Consolidated Statement of Financial Position (2/2)
Consolidated Statement of Financial Position (2/2) 11
Slide 12: Financials 6-Year-Comparison (1/2)
Financials 6-Year-Comparison (1/2) Rental Income in Mio Total Income in Mio Rental Income Like for Like in Mio * Rental Income in Mio 1 Total Income in Mio 140 126.5 350 320.0 120 300 297.7 107.9 98.4 100 88.9 250 80 76.3 200 59.9 139.5 152.4 60 150 88.2 100.8 40 76.5 100 70.8 20 50 0 0 2017 2018 20
Slide 13: Financials 6-Year-Comparison (2/2)
Financials 6-Year-Comparison (2/2) Debt in Mio Portfolio Value Portfolio Value Like for Like Portfolio Value Mortages Balance of interest bearing loans and borrowings LTV Debt Ratio 1200 1’043 70% 1,704 935 1000 869 60% 1,412 760 800 601 50% 915 928 600 516 567 545 768 455 455 372 372 40% 618 400 1’
Slide 14: Portfolio Development
Y VARIA US PROPERTIES Portfolio Development . susvceo av sTonEWes GA)
Slide 15: 2022 Portfolio Development
2022 Portfolio Development Geographic breakdown of Varia Properties as of December 31, 2022 • Portfolio value of USD 1.704 billion (2021: USD 1.412 billion) • 41 properties • 11,042 units • 14 different States in the US • Geographical diversification: • Regionally balanced strategy • 16% of the prop
Slide 16: 2022 Portfolio Key Figures
2022 Portfolio Key Figures AVERAGE GROSS EFFECTIVE MONTHLY RENT POTENTIAL GROSS PER UNIT INCOME 1 INCOME 1 2021: USD 932 2021: USD 147.4 million 2021: USD 138.0 million 1,134 USD million 169.2 USD million 158.1 AVERAGE OCCUPANCY LOAN-TO- MARKET VALUE RATE VALUE 2021: 94.6% PER UNIT 2021: 54.27% 2021
Slide 17: Portfolio 6-Year-Comparison
Portfolio 6-Year-Comparison Number of Units Number of Assets 11’887 52 53 50 10’896 11’042 10’269 9’737 44 43 41 8’245 2017 2018 2019 2020 2021 2022 2017 2018 2019 2020 2021 2022 Occupancy Portfolio Value (USDm) 96.0% Portfolio Value Like for Like * Portfolio Value 95.5% Effective 95.4% Like for Lik
Slide 18: Portfolio Development - Dispositions
Portfolio Development - Dispositions • In 2022, the Company disposed seven properties. • The Company intends to pursue its strategy of disposing of older, smaller and not best located assets, in order to continue improving the quality and decrease the risk of the portfolio. 18
Slide 19: Portfolio Development - Acquisitions
Portfolio Development - Acqusitions • In 2022, the Company acquired five new assets. • These additions to the portfolio are in line with the strategy put in place over the last 18-24 months. 19
Slide 20: ESG
Y VARIA US PROPERTIES ESG . susvceo av sTonEWes GA)
Slide 21: Key Achievements 2022 (1/2)
Key Achievements 2022 (1/2) ESG Progress • ESG Committee at Board level formed in 2022 • Launch of new section of the Company’s website dedicated to ESG information. • The company participated for the first time in the real estate industry's leading ESG assessment GRESB, achieving strong results com
Slide 22: Key Achievements 2022 (2/2)
Key Achievements 2022 (2/2) ESG Progress • 8 Communities received “ENERGY STAR® Performance Certifications” in 2022 demonstrating superior energy efficiency compared to similar buildings • Stoneweg, on behalf of Varia US, is pleased to have been named as a “Freddie Mac Multifamily Impact Sponsor” •
Slide 23: Outlook 2023
Y VARIA US PROPERTIES Outlook 2023 . susvceo av sTonEWes GA)
Slide 24: Outlook 2023
OUTLOOK 2023 • Varia US looks forward to a successful but challenging 2023. The Board of Directors expects strong operating results but lower valuations due to expanded cap rates. • It is expected that during the first half of the year the market should continue to be somewhat uncertain and slow. Ho
Slide 25: Information
Information Investor Information Contact Information Listing: SIX Swiss Exchange Juerg Staehelin, IRF Currency: USD Investor Relations / Corporate Ticker symbol: VARN Communications ISIN: CH 030 528 529 5 Phone: +41 43 244 81 51 Listing date: December 8, 2016 E-mail: investors@variausproperties.com
Slide 26: Q&A
Y VARIA US PROPERTIES Q&A . susvceo av sTonEWes GA)