Apartment Investment and Management Company (AIV) has reported 47.43 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $13.70 million, or $0.07 a share in the quarter, compared with $26.06 million, or $0.15 a share for the same period last year.
Revenue during the quarter went up marginally by 0.10 percent to $246.48 million from $246.24 million in the previous year period.
Cost of revenue for the quarter was almost stable at $89.10 million, when compared with the previous year period. Gross margin for the quarter expanded 14 basis points over the previous year period to 63.85 percent.
Total expenses were $188.69 million for the quarter, up 3.28 percent or $5.99 million from year-ago period. Operating margin for the quarter contracted 236 basis points over the previous year period to 23.45 percent.
Operating income for the quarter was $57.79 million, compared with $63.53 million in the previous year period.
For the second-quarter, Apartment Investment and Management Company expects diluted earnings per share to be $0.08. It projects diluted earnings per share to be in the range of $0.06 to $0.10 for the same period.
Revenue from real estate activities during the quarter was almost stable at $246.48 million, when compared with the previous year period.
Income from operating leases during the quarter went up marginally by 0.96 percent or $2.31 million to $243.79 million.
Revenue from other real estate activities during the quarter was $2.69 million, down 43.44 percent or $2.07 million from year-ago period.
Chairman and chief executive officer Terry Considine comments: "Aimco had a solid first quarter and we are on track to meet our 2017 plan. Operating results were on target with strong renewal lease rates and lower costs offsetting somewhat softer than expected new lease rates in Denver and at Aimco’s higher price point communities in Los Angeles. Average monthly revenue per apartment home was nearly $2,000, up 7% compared to first quarter 2016. Redevelopment activities are on plan and we have completed the lease-up of our One Canal community in Boston. The Aimco balance sheet remains strong with abundant liquidity and limited exposure to capital markets. For the fifth consecutive year, Aimco was recognized by The Denver Post as one of Colorado's Top Workplaces."
Total assets went up marginally by 0.74 percent or $45.23 million to $6,187.44 million on Mar. 31, 2017. On the other hand, total liabilities were at $4,249.46 million as on Mar. 31, 2017, down 1.65 percent or $71.49 million from year-ago.
Return on assets moved down 10 basis points to 1.06 percent in the quarter. At the same time, return on equity moved down 71 basis points to 0.63 percent in the quarter.
Debt moves up marginally
Total debt was at $3,971.04 million as on Mar. 31, 2017, up 1.36 percent or $53.45 million from year-ago. Shareholders equity stood at $1,836.38 million as on Mar. 31, 2017, up 5.84 percent or $101.31 million from year-ago. As a result, debt to equity ratio went down 10 basis points to 2.16 percent in the quarter.
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