Corporate Office Properties Trust (OFC) has reported a 58.34 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $24.73 million, or $0.22 a share in the quarter, compared with $59.36 million, or $0.59 a share for the same period last year.
Revenue during the quarter went down marginally by 0.93 percent to $141.99 million from $143.32 million in the previous year period.
Cost of revenue rose 7.57 percent or $4.26 million during the quarter to $60.53 million. Gross margin for the quarter contracted 337 basis points over the previous year period to 57.37 percent.
Total expenses were $104.55 million for the quarter, down 15.19 percent or $18.72 million from year-ago period. Operating margin for the quarter expanded 1238 basis points over the previous year period to 26.37 percent.
Operating income for the quarter was $37.44 million, compared with $20.06 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $76.78 million compared with $79.72 million in the prior year period. At the same time, adjusted EBITDA margin contracted 155 basis points in the quarter to 54.07 percent from 55.62 percent in the last year period.
For financial year 2017, Corporate Office Properties Trust projects diluted earnings per share to be in the range of $0.59 to $0.67.
For the first-quarter, Corporate Office Properties Trust projects diluted earnings per share to be in the range of $0.14 to $0.16.
Revenue from real estate activities during the quarter declined 4.82 percent or $6.48 million to $128 million.
Income from operating leases during the quarter dropped 6.20 percent or $6.66 million to $100.85 million.
Revenue from other real estate activities during the quarter was $27.15 million, up 0.69 percent or $0.19 million from year-ago period.
Other income during the quarter was $13.99 million, up 58.14 percent or $5.14 million from year-ago period.
"We executed well on all aspects of our 2016 plan, achieving or slightly exceeding our guidance for key earnings and leverage metrics," stated Stephen E. Budorick, COPT's president & chief executive officer. "We also implemented important changes to our portfolio, balance sheet and organization that position us to capitalize on the rising demand for efficient, secure real estate solutions throughout our Defense/IT locations. The federal government is signaling broad support for increased investment in cybersecurity and national security-related defense initiatives, and our portfolio and personnel are uniquely aligned to provide real estate solutions for government and defense contractor tenants supporting these missions."
Receivables move up
Net receivables were at $86.72 million as on Dec. 31, 2016, up 12.56 percent or $9.67 million from year-ago.
Total assets declined 3.29 percent or $128.43 million to $3,780.88 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,163.24 million as on Dec. 31, 2016, down 4.85 percent or $110.29 million from year-ago.
Return on assets was at 0.52 percent in the quarter against a negative 0.04 percent in the last year period. At the same time, return on equity moved down 213 basis points to 1.32 percent in the quarter.
Debt comes down
Total debt was at $1,904 million as on Dec. 31, 2016, down 8.36 percent or $173.75 million from year-ago. Shareholders equity stood at $1,594.66 million as on Dec. 31, 2016, down 1.35 percent or $21.90 million from year-ago. As a result, debt to equity ratio went down 9 basis points to 1.19 percent in the quarter.
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