Varia US Properties : Half-year Report 2023

2023HALF YEAR REPORT

VARIA US PROPERTIES AG I HALF YEAR REPORT 2023 I CONTENTS

CONTENTS

KEY FIGURES HY1/2023

4

CONSOLIDATED IFRS FINANCIAL STATEMENTS

18

PORTFOLIO

SUMMARY

6

CONTACT

40

SHAREHOLDER LETTER

8

3

MANAGED BY

VARIA US PROPERTIES AG I HALF YEAR REPORT 2023 I KEY FIGURES

KEY FIGURES HY 1/2023

RENTAL

INCOME

HY 2022: USD 62.0 million

USD 67.0

million

FAIR VALUE

PORTFOLIO

ADJUST-

MENT

4 HY 2022: USD 178.4 million

USD -57.2

million

NORMALIZED

FFO PER

SHARE

HY 2022: USD 0.91

USD 0.78

EBITDA2

HY 2022: USD 45.5 million

USD 27.9

million

TOTAL

INCOME

HY 2022: USD 248.9 million

USD 22.4

million

OPERATING (LOSS) PROFIT

(including revaluation)

HY 2022: USD 203.4 million

USD -35.1

million

EARNINGS PER SHARE

HY 2022: USD 14.37

USD -4.64

EBITDA

MARGIN

(without revaluation) HY 2022: 50.0%

32.7 %

EFFECTIVE GROSS INCOME (EGI)1

HY 2022: USD 91.1 million

USD 85.3

million

(LOSS) PROFIT FOR THE PERIOD

HY 2022: USD 145.5 million

USD -46.9

million

NAV PER

SHARE4

December 31, 2022: USD 60.13

USD 51.87

NORMALIZED FFO3

HY 2022: USD 9.2 million

USD7.9 million

MANAGED BY

1 EGI defined as total income less unrealized revaluation.

2 EBITDA defined as operating profit less unrealized revaluation.

• Normalized FFO defined as FFO less debt cost amortization, insurance proceeds, foreign exchange gain or loss, and other non-cash items.

4 NAV excluding distribution payable is USD 54.09 at June 30, 2023, USD 61.22 at December 31, 2022.

VARIA US PROPERTIES AG I HALF YEAR REPORT 2023 I KEY FIGURES

SUMMARY PAGE OF KEY FIGURES

RESULTS (For the Period Ended)

Rental Income

Rental Income like for like*

Other Income and Insurance Proceeds

Total Realized Income (total income less unrealized valuation) Realized Gains on disposal of properties

Unrealized (Losses) Gains on revaluation of properties Net (Loss) Gain on revaluation of properties

Revaluation of properties like for like*

Total Income

Unit

USD mio USD mio USD mio USD mio USD mio USD mio USD mio USD mio USD mio

June 30, 2023

67.0

47.3

12.6

85.3

5.8

-62.9-57.2-59.6 22.4

June 30, 2022

62.0

44.1

8.5

91.1

20.6

157.9

178.4

134.4

248.9

Change

8.1%

7.2%

47.6%

-6.3%-72.0%

-139.9%

-132.0%

-144.4%

-91.0%

Operating Expenses

Operating (Loss) Profit incl. revaluation

Operating Margin1

EBITDA (Operating Profit less unrealized revalulation)

EBITDA Margin

Normalized EBITDA (EBITDA less insurance proceeds)

Normalized EBITDA Margin

Net (Loss) Profit before tax Net (Loss) Profit

Funds from Operations (FFO) (net profit excluding fair value gain or loss and transaction costs, tax effected)

Normalized FFO (FFO less debt cost amortization, insurance proceeds, foreign exchange gain or loss, and other non-cash items)

USD mio USD mio

%

USD mio

%

USD mio

%

USD mio USD mio USD mio

USD mio

57.4

-35.1

N/A

27.9

32.7

25.8

30.3

-63.4

-46.9 6.3

7.9

45.6

203.4

81.7

45.5

50.0

45.3

49.7

187.7

145.5

13.7

9.2

26.1%

-117.2%

N/A

-38.8%

-17.3%

-42.9%-19.4%

-133.8%

-132.3%

-54.2%

-14.6%

5

BALANCE SHEET (As of)	Unit	June 30, 2023	December 31, 2022
Total Assets	USD mio	1,561.7	1,798.8
Equity	USD mio	525.3	608.9
Equity ratio	%	33.6	33.9
Interest bearing Debt	USD mio	897.6	1042.5
Interest bearing Debt ratio	%	57.5	58.0
Average interest of debt at the property level	%	4.5	4.5
Average maturity of debt at the property level	years	6.8	7.1

Change

-13.2%

-13.7%

- 0.2% -13.9%

- 0.5%

0.1%

-3.7%

PORTFOLIO	Unit	June 30, 2023	December 31, 2022
Properties	number	33	41
Units as of	number	9,170	11,042
Units Like for Like as of**	number	9,170	9,170
Units Like for Like as of the Month Ending***	number	9,170	9,170
Portfolio value	USD mio	1,460.1	1,703.8
Portfolio Value Like for Like as of**	USD mio	1,460.1	1,508.5
Market value per unit	USD	159,226	154,297
Gross Potential Income (Market per Colliers)	USD mio	148.6	169.2
Monthly rent per unit held for the full month ending	USD	1,192	1,134
Monthly rent per unit Like for Like as of the Month Ending***	USD	1,192	1,160
Occupancy rate as of	%	92.3%	93.1%
Occupancy rate Like for Like as of the Month Ending***	%	92.3%	93.0%

Change

-19.5%

-17.0%

0.0%

0.0%

-14.3%

-3.2%

3.2%

-12.2%

5.1%

2.8%

- 0.8%

- 0.7%

SHARE INFORMATION	Unit	2023
Market capitalization - June 30, 2023 and December 31, 2022	CHF mio	377.7
Earnings per share (EPS) - June 30, 2023 and 2022	USD / share	-4.64
NAV - June 30, 2023 and December 31, 2022	USD / share	51.87
NAV excluding deferred taxes - June 30, 2023 and December 31, 2022	USD / share	60.72
NAV excluding distribution payable - June 30, 2023 and December 31, 2022	USD / share	54.09
Share price - June 30, 2023 and December 31, 2022	CHF/ share	37.30
Funds from Operations (FFO) (net profit excluding fair value gain and transaction	USD / share	0.62
costs, tax effected) - June 30, 2023 and 2022
Normalized FFO (FFO less debt cost amortization, insurance proceeds, foreign	USD / share	0.78
exchange gain or loss, and other non-cash items) - June 30, 2023 and 2022

2022

466.8

14.37

60.13

70.76

61.22

46.10

1.35

0.91

Change

-19.1%

-132.3%

-13.7%

-14.2%

-11.6%

-19.1%

-54.2%

-14.6%

1 Operating Margin is calculated as Operating Profit (Loss) including revaluation divided by Total Income. Operating Margin for the six months ended June 30, 2023 is not applicable as an operating loss was incurred during the first half of the year.

*	Like for Like compares assets that were held for the full periods of Q1 and Q2 2022 and Q1 and Q2 2023.
**	Like for Like as of compares assets that were on hand on the last day of the period presented.
***	Like for Like as of the Month Ending compares assets that were held for the last full month of the period presented.	MANAGED BY
Note: Some amounts above may not add due to rounding.