EastGroup Properties, Inc. (EGP) has reported a 40.96 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $12.82 million, or $0.38 a share in the quarter, compared with $21.71 million, or $0.67 a share for the same period last year.
Revenue during the quarter grew 7.41 percent to $66.15 million from $61.59 million in the previous year period.
Cost of revenue rose 6.66 percent or $1.19 million during the quarter to $19.01 million. Gross margin for the quarter expanded 20 basis points over the previous year period to 71.27 percent.
Total expenses were $44.71 million for the quarter, up 5.71 percent or $2.42 million from year-ago period. Operating margin for the quarter expanded 109 basis points over the previous year period to 32.42 percent.
Operating income for the quarter was $21.44 million, compared with $19.30 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $41.92 million compared with $38.76 million in the prior year period. At the same time, adjusted EBITDA margin improved 43 basis points in the quarter to 63.36 percent from 62.93 percent in the last year period.
For fiscal year 2017, EastGroup Properties, Inc. forecasts net income to be in the range of $60.61 million to $64 million. The company projects diluted earnings per share to be in the range of $1.79 to $1.89.
For the second-quarter 2017, EastGroup Properties, Inc. forecasts net income to be in the range of $14.76 million to $15.44 million. The company projects diluted earnings per share to be in the range of $0.43 to $0.45.
Revenue from real estate activities during the quarter increased 7.42 percent or $4.57 million to $66.14 million.
Commenting on EastGroup’s performance, Marshall Loeb, chief executive officer, stated, "We are happy with a strong start to the year. Our 8.8% increase in quarterly FFO means that we've now achieved FFO per share growth in 23 of the past 24 quarters, truly a long term trend. Adding further emphasis to the trend, during first quarter we signed 2.8 million square feet of leases, our quarterly record high. The high leasing volume was complemented by GAAP re-leasing spreads of 17.4%, also a quarterly record. Overall, we still have lots of work to do in 2017 but are happy with how it's starting."
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