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PRESENTATIONFULL-YEAR 2018 RESULTS

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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

economic conditions in the property markets relevant to us.

These expectations, estimates and projections are generally

identifiable by statements containing words such as

“expects,” “believes,” “estimates,” “targets,” “plans,”

“outlook” or similar expressions.

There are numerous risks and uncertainties, many of which

are beyond our control, that could cause our actual results

to differ materially from the forward-looking information and

statements made in this presentation and which could affect

our ability to achieve any or all of our stated targets. The

important factors that could cause such differences include,

among others:

– business risks associated with the volatile economic

environment and political conditions

– costs associated with natural disasters affecting our

properties

– changes in governmental regulations

– changes in currency exchange and interest rates, and

– such other factors as may be discussed from time to time

in prospectuses

Although we believe that its expectations reflected in any

such forward-looking statement are based upon reasonable

assumptions, it can give no assurance that those

expectations will be achieved. This presentation contains

non-GAAP measures of performance. We provide

definitions of these measures and reconciliations between

these measures and their IFRS counterparts as we believe

are appropriate.

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AGENDAAPRIL 3, 2019

▪ Key achievements

▪ Financials FY 2018

▪ Portfolio and growth strategy

▪ Outlook

▪ Q&A

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TODAY’S SPEAKERS

■ Delegate of the Board of

Directors, Varia US

Properties AG

■ Head of US Investments

of Stoneweg SA,

the Asset Manager of

Varia US Properties AG

PATRICK RICHARDMANUEL LEUTHOLD

■ Chairman,

Varia US Properties AG

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KEY ACHIEVEMENTS

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2018 KEY ACHIEVEMENTS (1/2)

■ BUYOUT OF NON-CONTROLLING INTEREST (NCI)

■ Got full ownership on 100% of portfolio

■ Got full control on asset management and strategy implementation

■ Got full control on financial data

■ PORTFOLIO OVERALL GROWTH AND VALUE-ADD IMPLEMENTATION

■ Acquisition of 9 assets

■ Exchange of 6 assets against 30 minority interests participation

■ Successful sale of 1 asset with a 30.5% net IRR

■ GREEN INITIATIVE LAUNCH

■ Water and energy conservation program

■ Benefit resident, investor and environment

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2018 KEY ACHIEVEMENTS (2/2)

■ TEAM REINFORCEMENT AND IMPROVED ORGANIZATION

■ 13 full time equivalent working in the US

■ 3 full time equivalent working in Geneva

■ New Yardi ERP system implemented

■ KEY FIGURES

■ Total income of USD 100.8 million (2017: USD 88.2 million)

■ EBITDA margin of 43.6% (2017: 40.3%)

■ Earnings per share of USD 2.79 (2017: USD 4.15)

■ Total portfolio value of USD 767.5 million (2017: USD 618 million)

■ Proposed distribution to the next AGM of CHF 2.50 per share

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FINANCIALS FY 2018

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2018 KEY FIGURES (1/2)

EFFECTIVE

GROSS

INCOME2017: USD 65.8 million

USD

million 86.0

FAIR VALUE

PORTFOLIO

ADJUSTMENT**2017: USD 22.4 million

USD

million 14.7

TOTAL

INCOME2017: USD 88.2 million

USD

million 100.8

TOTAL

OPERATING

EXPENSES2017: USD 39.2 million

USD

million 50.2

REPAIR,

MAINTENANCE AND

MINOR REPLACMENTS2017: USD 4.9 million

USD

million 5.9

YEAR I

CAPEX

INVESTED2017: USD 6.9 million

USD

million 11.9

** Including USD 3 million of realized gain on property sold

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2018 KEY FIGURES (2/2)

OPERATING

PROFIT2017: USD 48.9 million

USD

million 50.6

PROFIT

FOR THE

PERIOD2017: USD 34.9 million

USD

million 24.9

EBITDA 2017: USD 26.5 million

USD

million 38.9

NAV

PER SHARE2017: USD 34.38

USD 37.14

FUNDS FROM

OPERATION (FFO)(EBITDA LESS INTEREST

EXPENSES)2017: USD 12.9

USD 20.9

EARNINGS

PER SHARE2017: USD 4.15

USD 2.79

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PROFIT AND LOSS (CONSOLIDATED)

In USD million As of December 31, 2018 As of December 31, 2017

Rental income 76.3 59.9

Other income including insurance proceeds 9.8 5.8

Net gain from fair value adjustment (realized) 3.0 -

Net gain from fair value adjustment on invest. property 11.7 22.4

Total income 100.8 88.2

Total operating expenses (50.2) (39.2)

Operating profit 50.6 48.9

Financing expenses (18.0) (13.2)

Profit before income tax 32.6 35.7

Income tax (7.7) (0.8)

Profit for the period 24.9 34.9

Profit attributable to:

Varia US Properties AG shareholders (in USD million) 24.9 28.1

Non-controlling interests (in USD million) - 6.8

NAV & Earnings per share

Net asset value (NAV) per share (in USD) 37.14 34.38

Basic and diluted earnings per share (in USD) 2.79 4.15

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EARNINGS PER SHARE

2018 2017

Operating profit less fair value adjustment 4.01 3.92

Realized gain on property 0.34 -

Unrealized gain on properties 1.32 3.31

Debt costs (2.02) (1.95)

Taxes (0.86) (0.13)

NCI - (1.01)

EPS 2.79 4.15

2018 2017

Operating profit less fair value adjustment 4.01 3.92

Realized gain on property 0.34 -

Unrealized gain on properties

Debt costs (2.02) (1.95)

Taxes

NCI - (1.01)

EPS 2.33 0.96

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FINANCIAL POSITION (CONSOLIDATED)

Assets in USD million As of December 31, 2018 As of December 31, 2017

Total current assets 47.8 94.7

Total non-current assets 776.7 573.5

Total assets 824.5 668.2

Liabilities and equity in USD million As of December 31, 2018 As of December 31, 2017

Total current liabilities 17.2 47.3

Total non-current liabilities 472.9 350.6

Total liabilities 490.1 397.9

Equity attributable to Varia US Properties AG

shareholders

334.3 247.6

Non-controlling interest (NCI) - 22.8

Total equity 334.3 270.4

Total liabilities and equity 824.5 668.2

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PORTFOLIO AND GROWTH STRATEGY

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PORTFOLIO DEVELOPMENT IN 2018

■ Portfolio value of USD 767.5 million

■ 52 assets

■ 9,737 units

■ 19 different States in the US

■ Florida down to 15% (2017: 24%)

■ Most of new properties are located in

markets where Varia was already

present, thus consolidating its

footprint in selected markets

■ Larger assets

■ Closer to metropolitan areas with a

proven value-add strategy

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PORTFOLIO 2018 KEY FIGURES

AVERAGE

MONTHLY

RENT PER UNIT**2017: USD 716

USD 760

GROSS

POTENTIAL

INCOME*2017: USD 83.9 million

USD

million 101.0

AVERAGE MARKET

VALUE PER UNIT2017: USD 74,950

USD 78,823

OCCUPANCY

RATE2017: 94.3%

93.7%

• According to Colliers International, appraiser of the Company’s investments

** This average does not include the property Brookwood that was acquired in December 2018

EFFECTIVE GROSS

INCOME*2017: USD 78.1 million

94.0

LOAN-TO-

VALUE2017: 60.52%

59.73%

USD

million

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9 NEW ACQUISITIONS EXECUTED OVER THE PERIOD

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POSITIVE EARLY PERFORMANCE OF THE NEW ASSETS

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ADDING VALUE TO THE PORTFOLIO

▪ In 2018, a total of 600 units have been rehabbed for the amount of more than USD 2.7 million

▪ The average rehab cost per unit is USD 4,489

▪ Investing in the common areas and in the unit rehab works

▪ An average rent increase of USD 98 per month has been achieved

▪ Average ROCE of 26%

▪ An additional USD 8.3 million has been spent in various deferred maintenance and property

enhancement projects in common areas.

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GREEN INITIATIVE

■ Varia is committed to deploy a portfolio wide green program that will improve the energy scorecard

of the portfolio

■ Main purpose of this initiative is to save between 25% and 35% of the water and electricity

consumption

■ This initiative will benefit the residents, the investors and the environment

■ To achieve this goal,

■ Varia will replace shower heads, toilet tanks and faucets with water conservation efficient

solutions

■ Varia will implement an electricity conservation program which includes replacing regular

bulbs with LED products as well as old appliances as refrigerators and dishwashers with

more efficient ones

■ Investments will be financed with equity or with the proceed of refinancing

■ The green initiative will be further evaluated and implemented in the next few years

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GREEN INITIATIVE

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OUTLOOK

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THE MARKET IN 2019

■ Positive market for multifamily investments and especially for workforce housing

According to CBRE: “The multifamily sector will continue to attract high levels of investments and

debt capital, and workforce housing will remain an appealing investment strategy given its

favorable supply/demand balance”.

■ Rental organic growth of 2.5 – 3% with sustained 94 – 95% occupancy

■ Investors are not expecting a significant increase of interest rates in 2019, but volatility may

appear on a short-term basis

■ Currency should remain pretty stable in 2019 with again some volatility, but no big changes

expected in 2019

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OUTLOOK 2019

MANAGEMENT → Optimization of portfolio management

→ Reduce the number of property management companies to increase

efficiency and organizational leverage

→ Focus on increasing rents to market, reducing vacancies and limiting

controllable expenses

PORTFOLIO → Divestment of non strategic assets (small, remote and below distribution

average)

→ Opportunistic acquisitions in strategic markets

→ Continued deployment of Year 1 capex

→ Transitioning of LIHTC properties towards market

→ Implementation of green initiative throughout the portfolio

FINANCIALS → Possible bond issuance

→ Delivery of solid results in US dollar

→ Quarterly distribution starting August 2019

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FINANCIAL CALENDAR

■ Annual General Meeting 2019

■ Half-Year Results 2019

30 April 2019

29 August 2019

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Q&A

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APPENDIX

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9 ACQUISITIONS IN 2018 (1/3)

CITY STATE ACQUISITION DATE

Tucson Arizona January 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

300 212,074 m2 2,560,200 USD

RIVER OAKS TIERRA POINTE

CITY STATE ACQUISITION DATE

Albuquerque New Mexico January 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

352 217,250 m2 3,122,896 USD

CITY STATE ACQUISITION DATE

Albuquerque New Mexico March 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

398 187,426 m2 3,067,140 USD

CINNAMON TREE

CITY STATE ACQUISITION DATE

Memphis Tennessee March 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

200 191,200 m2 1,831,900 USD

MEADOWS

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9 ACQUISITIONS IN 2018 (2/3)

CITY STATE ACQUISITION DATE

Cincinnati Ohio May 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

336 254,600 m2 3,070,051 USD

WOODRIDGE VILLAGE AT MAYFIELD

CITY STATE ACQUISITION DATE

Cleveland Ohio June 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

252 276,165 m2 3,804,500 USD

CITY STATE ACQUISITION DATE

Memphis Tennessee August 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

196 19,885 m2 2,429,976 USD

CORDOVA CREEK

CITY STATE ACQUISITION DATE

Cincinnati Ohio August 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

223 19,666 m2 2,641,965 USD

860 EAST

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9 ACQUISITIONS IN 2018 (3/3)

CITY STATE ACQUISITION DATE

Tucson Arizona December 2018

NUMBER OF

UNITS

NET RENTABLE

AREA

GROSS

POTENTIAL INCOME

272 19,211 m2 2,467,420 USD

BROOKWOOD

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SUMMARY

MARKET

PEOPLE

COMPANY

▪ Well-performing multifamily property portfolio in the U.S.

▪ Promising acquisition pipeline in growing urban submarkets

▪ Board of Directors with broad experience in real estate and financial services

▪ Reputable Swiss asset manager optimizing performance with tailored investment

strategies

▪ Strong rental income growth and low vacancy rates in multifamily housing

▪ Investment focus on B and C properties, in low to moderate income neighborhoods

located in greater metro areas with increasing populations and job growth

▪ Shift from home ownership to renting in the U.S. with demand for rented properties

outpacing supply

▪ Cash flow optimization through attractive financing and rehabilitation as well as

solid cash flow generation allowing for high distribution to shareholders