Zug, 31 March 2026
Varia US Properties achieves increased rental income on a like-for-like basis as well as continuously high and stable occupancy rate in 2025- Rental income lower by 9.4% at USD 98.3 million due to smaller overall property portfolio
- Rental income "like for like" 3.1% higher at USD 91.5 million due to strong tenant management and high demand of multifamily housing
- Occupancy rate remained stable at 93.2% (2024: 93.7%)
- Strategic sale of five portfolio assets generated USD 122.9 million and an IRR of 6.3%
- Total portfolio value came slightly down at USD 1,046 billion (2024: USD 1,194 billion)
- Quality of units and properties were further improved in the reporting year, e.g. by solar installations and targeted maintenance works
- NAV was slightly lower at USD 31.91 per share (2024: USD 35.13)
- EPS of USD was at -3.14 (2024: USD -1.73)
- Company is looking for strategic joint-venture partner to recapitalize the existing portfolio and provide significant additional growth capital
Manuel Leuthold, Chairman of the Board of Directors of Varia US Properties, says: "2025 was another dynamic year for US real estate, yet underlying multifamily fundamentals proved resilient once again, as reflected in the 2025 results for Varia US. Throughout the reporting year, the Company's asset manager, Stoneweg, remained focused on operational excellence and successfully executing Varia US' disposition plan which facilitated the repayment of the CHF 50 million bond and funding of both non-discretionary and select discretionary capital improvements. We also generated additional value for investors by the strategic sale of five portfolio assets. These actions further strengthened the long-term quality and competitiveness of the portfolio and, as a result, the Company's financial position."
After successfully completing the initiatives set out in 2024 and 2025 to reduce the overall leverage of the Varia US Properties and increase the overall quality of its portfolio, the Company is well positioned to return to growth during the coming market cycle. Strategically, the focus has shifted from yield towards growth, as Varia US anticipates favorable multifamily market dynamics at both a micro and macro level over the coming years. In order to create maximum shareholder value, improve the balance sheet, and create liquidity, the Company has engaged a premier Capital Markets Advisory firm to arrange a large, strategic joint-venture partner to recapitalize the existing portfolio and provide significant additional growth capital. Given the current discount in the share price versus the NAV, Varia US Properties views this as the optimal strategy to recover the discount and ultimately crystalize the maximum value for shareholders.
2025 unfolded as a transitional period for the real estate sector, marked by shifting macroeconomic conditions and early signs of market recalibration. While interest rates remained above long term norms for much of the year, the outlook began to improve toward year end as infl ation moderated and central banks signaled a gradual move toward policy normalization in 2026. Investor sentiment strengthened accordingly, supported by stabilizing property valuations across key U.S. multifamily markets. Construction pipelines continued to contract, with new starts trending well below historical averages - a dynamic expected to tighten supply and reinforce rent growth fundamentals over the medium term.
Financial development: demonstrating continued strength on operating levelThe 2025 financial results demonstrate the continued strength of the Company's operating business during a challenging phase of the real estate cycle. Total income excluding the net loss from fair value adjustment decreased to USD 81.5 million (2024: USD 93.8 million). However, rental income on a like for like basis increased by 3.1% to USD 91.5 million (2024: USD 88.7 million), and property level Net Operating Income (NOI) increased by 4.4% on a like for like basis.
Total operating expenses decreased to USD 77.2 million (2024: USD 80.3 million). Total finance costs increased to USD 47.1 million (2024: USD 37.0 million) driven by the strengthening of the CHF against the USD resulting in a USD 8.1 million foreign exchange loss in 2025 (2024: foreign exchange gain of USD 4.6 million). At the same time, interest expense decreased due to the disposal of five properties and the subsequent paydown of property mortgages.
The Normalized Funds From Operations (FFO) decreased to USD 9.7 million in 2025 (2024: USD 10.9 million), as it excludes the impact of the foreign exchange gain, loan amortization and insurance proceeds. The overall loss for the period totaled USD 31.8 million (loss of USD 17.5 million in 2024). Consequently, the Net Asset Value (NAV) per share ended the period at USD
31.91 (2024: USD 35.13) and Earnings Per Share (EPS) were at USD -3.14 (2024: -1.73).
Portfolio development: smaller, but with higher qualityIn 2025, the Company continued its strategy of improving the quality of its portfolio and reducing risks related to location and vintage, thereby selling five assets comprising 1,166 units for a total of USD 122.9 million and an Internal Rate of Return (IRF) of 6.3%. The sale of these more older assets has increase the average vintage of the portfolio to 1992 in the reporting year (from 1990 in the previous year). Furthermore, selling more capital-intensive assets will reduce future costs for maintenance and repairs.
At the end of 2025, the portfolio comprised 22 properties in nine states (2024: 27 properties in eleven states). In terms of geographical breakdown and based on appraised values by Colliers, the largest concentrations are in Kentucky (21%), Arizona (17%), North Carolina (15%) and Texas (15%).
The total value of the portfolio per Colliers is USD 1.046 billion as of December 31, 2025 (2024: USD 1.194 billion). The occupancy rate remained stable at 93.2% (2024: 93.7%).
AGM 2026: maintain healthy cash positionIn view of the Company's objectives, the uncertain market conditions and the results for the financial year 2025, the Board of Directors of Varia US Properties will not propose the payment of a dividend for the financial year 2025 at the 2026 Annual General Meeting. The Board of Directors intends to maintain a healthy cash position in order to facilitate the financing non-discretionary capital improvements, the repayment of a short-term loan (CHF 25 million), and the targeted growth through new acquisitions of properties. However, the Board of Directors will continue to monitor the Company's liquidity and review the decision regarding a dividend if appropriate.
Full Year 2025 key financial figuresIn USD | As of 31 Dec 2025 | As of 31 Dec 2024 | Δ in % |
Total Income | 81.5 million | 93.8 million | (13.1)* |
Operating expenses | 77.2 million | 80.3 million | (3.7) |
Net loss | (31.8) million | (17.5) million | 81.3 |
Earnings per share | (3.14) | (1.73) | 81.5 |
Total assets | 1,077.3 million | 1,253.8 million | (14.1) |
Total liabilities | 754.3 million | 898.1 million | (19.1) |
Total equity | 323.1 million | 355.8 million | (10.1) |
* Total income presented gains in 2024 and losses as well as reduced income/gains in 2025, which represents income decline relative to 2024. This increase in loss is represented with a negative percentage change.
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 Annual Report 2025 report (pages 109-111).
In USD million | As of 31 Dec 2025 | As of 31 Dec 2024 | Δ in % |
Rental income | 98.3 | 108.6 | (9.4) |
Rental income "like for like" | 91.5 | 88.7 | 3.1 |
Net Loss on revaluation of properties | (34.0) | (35.6) | (4.6)* |
Operating margin excluding revaluation of properties (in %)** | 33.1 | 38.0 | (4.9) |
Operating profit incl. revaluation | 4.2 | 13.5 | (68.8)*** |
EBITDA (operating profit or loss less unrealized revaluation) | 32.1 | 50.7 | (36.7) |
EBITDA margin (in %) | 29.3 | 38.7 | (9.4) |
Normalized Funds From Operations (FFO less debt cost amortization, insurance proceeds, foreign exchange gain or loss, and other non-cash items) | 9.7 | 10.9 | (10.7) |
Net Asset Value per share (in USD) | 31.91 | 35.13 | (9.2) |
* Relative to 2024, the loss for 2025 increased which represents income decline relative to the comparative year.
** Calculated as Operating Profit less Net Gain on revaluation of properties divided by Total Income less Net Gain on revaluation of properties.
*** Operating Profit including revaluation presented gains in 2024 and losses as well as reduced income/gains in 2025, which represents income decline relative to the prior year. This increase in loss is represented with a negative percentage change.
2026 Outlook: resuming disciplined growthMatthew Levy, Managing Partner Americas at Stoneweg, the external asset manager of Varia US Properties, says: "We remain confident in the positioning of Varia US Properties as the market continues to recalibrate, and we see meaningful opportunities emerging in the quarters ahead. In 2026, we will continue advancing the strategic repositioning of the portfolio by divesting older, more capital-intensive assets and using the proceeds to deleverage the Company via the repayment of the short-term loan, as well as strategically investing in primarily non-discretionary capital expenditures to strengthen the existing portfolio. Once these priorities are achieved, we look forward to supporting Varia US in resuming disciplined growth through the acquisition of higher quality, growth oriented properties."
Additional informationThe Annual Report 2025 and the corresponding investor presentation (as well as a separate leaflet summarizing the report in German) are available for download on Varia US' website at https://variausproperties.com/investors/financial-statements/.
Financial calendarAGM 2026 30 April 2026
Q1 2026 Update 28 May 2026
Half-year results 2026 31 August 2026
Q3 2026 Update 30 November 2026
Annual Report 2026 31 March 2027
AGM 2027 30 April 2027
Contact informationJuerg Staehelin, IRF Reputation
Phone: +41 43 244 81 51, E-mail: investors@variausproperties.com
About Varia US Properties AGVaria 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: https://www.variausproperties.com
DisclaimerThis 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.
info@variausproperties.com • variausproperties.com