Corporate Office Properties Trust (OFC) has reported 69.60 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $27.30 million, or $0.25 a share in the quarter, compared with $89.80 million, or $0.91 a share for the same period last year. Revenue during the quarter dropped 5.73 percent to $142.10 million from $150.74 million in the previous year period.
Cost of revenue dropped 7.28 percent or $4.74 million during the quarter to $60.29 million. Gross margin for the quarter expanded 71 basis points over the previous year period to 57.57 percent.
Total expenses were $130.58 million for the quarter, up 9.96 percent or $11.83 million from year-ago period. Operating margin for the quarter contracted 1311 basis points over the previous year period to 8.11 percent.
Operating income for the quarter was $11.52 million, compared with $31.99 million in the previous year period.
Revenue from real estate activities during the quarter went down marginally by 2.04 percent or $2.73 million to $130.95 million.
Income from operating leases during the quarter dropped 4.70 percent or $5.12 million to $103.96 million.
Revenue from other real estate activities during the quarter was $27 million, up 9.72 percent or $2.39 million from year-ago period.
Other income during the quarter was $11.15 million, down 34.64 percent or $5.91 million from year-ago period.
“As the third quarter demonstrated, we are executing well on all aspects of our 2016 plan, and key performance metrics were in-line with our guidance and expectations,” stated Stephen E. Budorick, COPT’s President & Chief Executive Officer. “Same office cash NOI grew 1.1% in the quarter and 4.1% for the first nine months of the year, and we have completed over $300 million of asset sales to date.” He added, “Demand throughout our portfolio is steady and provides solid momentum for 2017.”
Receivables move up
Net receivables were at $76.91 million as on Sep. 30, 2016, up 9.05 percent or $6.38 million from year-ago. Total assets declined 7.25 percent or $284.28 million to $3,634.19 million on Sep. 30, 2016. On the other hand, total liabilities were at $2,110.56 million as on Sep. 30, 2016, down 8.99 percent or $208.40 million from year-ago.
Return on assets was negative at 0.13 percent in the quarter against a positive 2.41 percent in the last year period. At the same time, return on equity moved down 388 basis points to 1.58 percent in the quarter.
Debt comes down
Total debt was at $1,873.84 million as on Sep. 30, 2016, down 11.40 percent or $241.02 million from year-ago. Shareholders equity stood at $1,500.79 million as on Sep. 30, 2016, down 5.01 percent or $79.12 million from year-ago. As a result, debt to equity ratio went down 9 basis points to 1.25 percent in the quarter.
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