Monogram Residential Trust (MORE) has reported 85.80 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $4.45 million, or $0.03 a share in the quarter, compared with $31.36 million, or $0.19 a share for the same period last year. Revenue during the quarter grew 21.95 percent to $72.18 million from $59.19 million in the previous year period.
Cost of revenue surged 31.64 percent or $7.97 million during the quarter to $33.18 million. Gross margin for the quarter contracted 339 basis points over the previous year period to 54.04 percent.
Total expenses were $82.36 million for the quarter, up 26.09 percent or $17.04 million from year-ago period. Operating margin for the quarter stood at negative 14.10 percent as compared to a negative 10.35 percent for the previous year period.
Operating loss for the quarter was $10.18 million, compared with an operating loss of $6.13 million in the previous year period.
Monogram Residential Trust expects revenue to grow in the range of 2.40 percent to 2.70 percent for the financial year 2016. For fiscal year 2016, Monogram Residential Trust forecasts net income to grow in the range of $3 percent to $3.50 percent.
Revenue from real estate activities during the quarter increased 21.95 percent or $12.99 million to $72.18 million.
"Year to date, we are pleased with our ability to increase total portfolio NOI growth by 11.4% over the prior year as we grow revenue and de-risk our portfolio through the completion of our development program, having added three communities containing 983 units over the past nine months to our operating portfolio. During the third quarter, we stabilized two communities in our core coastal markets, Verge in San Diego and SoMa in Miami at yields at or above our original underwriting, and we are now 89% complete with our development program as outlined at the time of our listing. Further, we took an opportunity to realize value creation with the sale of Renaissance and an adjacent land parcel in Northern California and used the proceeds to pay down debt," stated Mark T. Alfieri, Chief Executive Officer of Monogram.
Accounts payable plunged 59.53 percent or $36.52 million to $24.83 million on Sep. 30, 2016.
Total assets declined 3.38 percent or $111.53 million to $3,190.78 million on Sep. 30, 2016. On the other hand, total liabilities were almost stable over the past one year at $1,630.52 million on Sep. 30, 2016.
Return on assets moved down 64 basis points to 0.29 percent in the quarter. At the same time, return on equity moved down 161 basis points to 0.29 percent in the quarter.
Debt moves up marginally
Total debt was at $1,527.63 million as on Sep. 30, 2016, up 2.14 percent or $32.07 million from year-ago. Shareholders equity stood at $1,531.18 million as on Sep. 30, 2016, down 7.13 percent or $117.53 million from year-ago. As a result, debt to equity ratio went up 9 basis points to 1 percent in the quarter.
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