Equity Residential (EQR) has reported 35.58 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $277.25 million, or $0.75 a share in the quarter, compared with $204.49 million, or $0.55 a share for the same period last year. Revenue during the quarter dropped 13.89 percent to $605.49 million from $703.19 million in the previous year period.
Cost of revenue dropped 12.43 percent or $27.48 million during the quarter to $193.58 million. Gross margin for the quarter contracted 53 basis points over the previous year period to 68.03 percent.
Total expenses were $381.42 million for the quarter, down 8.34 percent or $34.72 million from year-ago period. Operating margin for the quarter contracted 382 basis points over the previous year period to 37.01 percent.
Operating income for the quarter was $224.07 million, compared with $287.06 million in the previous year period.
The company projects diluted earnings per share to be in the range of $0.32 to $0.36 for the first-quarter. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.92 to $2.02.
Revenue from real estate activities during the quarter declined 13.89 percent or $97.70 million to $605.49 million.
Income from operating leases during the quarter dropped 13.68 percent or $95.95 million to $605.27 million.
Income from management fees during the quarter plunged 89.06 percent or $1.76 million to $0.22 million.
“Equity Residential continued its long and successful track record of investor centric capital allocation activity in 2016 with the sale of nearly 30,000 apartment units and the return of $4 billion to our shareholders in special dividends,” said David J. Neithercut, Equity Residential’s President and Chief executive officer. “These highly strategic sales capitalized on extraordinary investor demand for multifamily assets which enabled Equity Residential to maximize value for its shareholders while completing the transformation of its portfolio into one focused primarily on urban and highly walkable, close-in suburban assets.”
Total assets declined 10.59 percent or $2,453.18 million to $20,704.15 million on Dec. 31, 2016. On the other hand, total liabilities were at $9,801.07 million as on Dec. 31, 2016, down 17.60 percent or $2,093.12 million from year-ago.
Return on assets moved up 52 basis points to 1.92 percent in the quarter. At the same time, return on equity moved up 75 basis points to 2.64 percent in the quarter.
Debt comes downTotal debt was at $8,987.26 million as on Dec. 31, 2016, down 17.71 percent or $1,934.11 million from year-ago. Shareholders equity stood at $10,460.98 million as on Dec. 31, 2016, down 2.20 percent or $235.37 million from year-ago. As a result, debt to equity ratio went down 16 basis points to 0.86 percent in the quarter.
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