Revenue during the quarter grew 9.20 percent to $50.61 million from $46.35 million in the previous year period.

Cost of revenue went down marginally by 2.87 percent or $0.64 million during the quarter to $21.58 million. Gross margin for the quarter expanded 530 basis points over the previous year period to 57.37 percent.

Total expenses were $38.63 million for the quarter, up 0.68 percent or $0.26 million from year-ago period. Operating margin for the quarter expanded 646 basis points over the previous year period to 23.68 percent.

Operating income for the quarter was $11.98 million, compared with $7.98 million in the previous year period.

Revenue from real estate activities during the quarter increased 9.20 percent or $4.26 million to $50.61 million.

Income from operating leases during the quarter rose 9.53 percent or $3.99 million to $45.86 million. Revenue from tenant reimbursements was $4.75 million for the quarter, up 6.07 percent or $0.27 million from year-ago period.

Chief executive officer Tim Mihalick commented, "We are pleased with our fiscal second quarter results, highlighted by a 15.0% increase in NOI for our multifamily portfolio, which reflects the significant value we are creating with the transformation of our company to a premier, Midwest focused multifamily REIT." Mr. Mihalick continued, "While several of our markets continue to work through challenges due to volatile energy markets and increased supply, our overall portfolio enjoys healthy fundamentals and continues to drive robust revenue growth. With our development pipeline now substantially completed and providing meaningful NOI, IRET is positioned to create significant shareholder value as we lease-up properties and drive organic growth. Our new dividend policy will augment organic growth as well. Further, with the pending sale of the remaining senior housing portfolio expected to provide approximately $170 million in net proceeds to IRET and our recent redemption of our Preferred A Shares, our balance sheet is well-positioned to opportunistically support our strategic goal to grow our cash flow with high quality multifamily investments. As we move into calendar year 2017, we remain focused on executing on our strategic initiatives, which we believe will create long-term shareholder value."

Net receivables were at $9.82 million as on Oct. 31, 2016, up 143.97 percent or $5.79 million from year-ago.

Total assets declined 5.76 percent or $102.63 million to $1,679.32 million on Oct. 31, 2016. On the other hand, total liabilities were at $1,019.52 million as on Oct. 31, 2016, down 5.25 percent or $56.46 million from year-ago.

Return on assets moved up 27 basis points to 0.75 percent in the quarter. At the same time, return on equity moved down 63 basis points to 1.34 percent in the quarter.

Shareholders equity stood at $651.22 million as on Oct. 31, 2016, down 6.82 percent or $47.66 million from year-ago. As a result, debt to equity ratio went up 15 basis points to 1.40 percent in the quarter.