Lexington Realty Trust (LXP) has reported 14.97 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $42.04 million, or $0.17 a share in the quarter, compared with $49.44 million, or $0.20 a share for the same period last year. Revenue during the quarter dropped 13.64 percent to $96.10 million from $111.28 million in the previous year period.
Cost of revenue for the quarter was almost stable at $12.12 million, when compared with the previous year period. Gross margin for the quarter contracted 175 basis points over the previous year period to 87.39 percent.
Total expenses were $38.26 million for the quarter, down 16.76 percent or $7.70 million from year-ago period. Operating margin for the quarter expanded 149 basis points over the previous year period to 60.18 percent.
Operating income for the quarter was $57.84 million, compared with $65.31 million in the previous year period.
For financial year 2017, Lexington Realty Trust expects diluted earnings per share to be in the range of $0.57 to $0.61.
Revenue from real estate activities during the quarter declined 13.64 percent or $15.18 million to $96.10 million.
Income from operating leases during the quarter dropped 14.11 percent or $14.57 million to $88.65 million. Revenue from tenant reimbursements was $7.44 million for the quarter, down 7.60 percent or $0.61 million from year-ago period.
T. Wilson Eglin, Chief Executive Officer and President of Lexington Realty Trust, commented, “During the quarter, property and loan disposition volume totaled $188 million. Consistent with our strategy, these transactions further simplified our portfolio by addressing vacancy, considerably reduced our loan portfolio and contributed to increasing the weighted-average lease term of our office portfolio by almost 6% to 7.6 years. Sale proceeds are expected to be used to acquire industrial assets and to fund office and industrial build-to-suit projects. We continue to be well-positioned to act on investment opportunities as they arise over the balance of the year and expect to be most active in the industrial sector."
Net receivables were at $42.43 million as on Mar. 31, 2017, down 63.38 percent or $73.43 million from year-ago.
Total assets declined 9.92 percent or $379.36 million to $3,446.70 million on Mar. 31, 2017. On the other hand, total liabilities were at $2,016.71 million as on Mar. 31, 2017, down 14.64 percent or $345.80 million from year-ago.
Return on assets moved down 12 basis points to 1.78 percent in the quarter. At the same time, return on equity moved down 44 basis points to 2.82 percent in the quarter.
Debt comes down
Total debt was at $1,853.35 million as on Mar. 31, 2017, down 15.86 percent or $349.25 million from year-ago. Shareholders equity stood at $1,429.99 million as on Mar. 31, 2017, down 2.29 percent or $33.55 million from year-ago. As a result, debt to equity ratio went down 21 basis points to 1.30 percent in the quarter.
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