Vatican reports good profit on investments and real estate as the pope tackles a financial crisis
The Vatican has been running a 50 million to 60 million euro structural deficit for years and is facing a 1 billion euro pension fund shortfall, a critical scenario that represents one of the greatest challenges facing Leo at the start of his pontificate. The Chicago-born math major, though, is said to have a head for numbers, and his agenda in his first weeks in office has been filled with meetings of the Vatican's various financial entities.
The Vatican has 4234 real estate properties in Italy and 1200 more in London, Paris, Geneva, and Lausanne, Switzerland. Only about one-fifth are rented at fair market value. Some 70 percent generate no income because they house Vatican or other church offices; the remaining 11 percent are rented at reduced rents to Vatican employees. In 2024, these properties only generated 35 million euros in profit, essentially equaling the profit of 2023. Financial analysts have long identified such undervalued real estate as a source of potential revenue, but APSA has little money to invest in renovations necessary to justify higher market rents. The report blamed the flat results on higher costs maintaining the properties, with 3.8 million euros spent in 2024 on maintenance alone.
___ Associated Press religion coverage receives support through the AP's collaboration with The Conversation US, with funding from Lilly Endowment Inc. The AP is solely responsible for this content.
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