INDEPENDENCE REALTY TRUST, INC (IRT) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $40.98 million, or $ 0.61 a share in the quarter, against a net profit of $4.12 million, or $0.09 a share in the last year period.

Revenue during the quarter dropped 4.23 percent to $38.03 million from $39.71 million in the previous year period.

Cost of revenue rose 3.61 percent or $0.07 million during the quarter to $1.95 million. Gross margin for the quarter contracted 39 basis points over the previous year period to 94.87 percent.

Total expenses were $27.39 million for the quarter, down 14.79 percent or $4.76 million from year-ago period. Operating margin for the quarter expanded 893 basis points over the previous year period to 27.98 percent.

Operating income for the quarter was $10.64 million, compared with $7.56 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $18.54 million compared with $19.72 million in the prior year period. At the same time, adjusted EBITDA margin contracted 90 basis points in the quarter to 48.76 percent from 49.66 percent in the last year period.

For financial year 2017, the company projects diluted earnings per share to be in the range of $0.40 to $0.44.

Revenue from real estate activities during the quarter declined 4.23 percent or $1.68 million to $38.03 million.

Income from operating leases during the quarter dropped 4.48 percent or $1.60 million to $34.14 million. Revenue from tenant reimbursements was $3.89 million for the quarter, down 1.92 percent or $0.08 million from year-ago period.

Scott Schaeffer, IRT’s chairman and chief executive officer said, "2016 was transformative for IRT. The deleveraging coupled with the newly internalized management team provides us with flexibility along with a reduced cost structure. We are excited about the opportunities ahead."

Net receivables were at $5.21 million as on Dec. 31, 2016, up 55 percent or $1.85 million from year-ago.

Total assets declined 7.05 percent or $98.18 million to $1,294.24 million on Dec. 31, 2016. On the other hand, total liabilities were at $765.55 million as on Dec. 31, 2016, down 23.63 percent or $236.84 million from year-ago.

Return on assets was negative at 2.70 percent in the quarter against a positive 1.05 percent in the last year period. Return on equity was negative at 7.75 percent in the quarter against a positive 1.06 percent in the last year period.