NorthStar Realty Finance Corporation (NRF) saw its loss narrow to $79.29 million, or $0.56 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $105.05 million, or $0.69 a share.
Revenue during the quarter dropped 9.07 percent to $496.72 million from $546.25 million in the previous year period.
Cost of revenue dropped 6.71 percent or $29.38 million during the quarter to $408.13 million. Gross margin for the quarter contracted 207 basis points over the previous year period to 17.83 percent.
Total expenses were $576.29 million for the quarter, up 1.27 percent or $7.23 million from year-ago period. Operating margin for the quarter stood at negative 16.02 percent as compared to a negative 4.18 percent for the previous year period.
Operating loss for the quarter was $79.58 million, compared with an operating loss of $22.81 million in the previous year period.
Revenue from real estate activities during the quarter declined 4.73 percent or $23.04 million to $463.66 million.
Jonathan A. Langer, chief executive officer, commented, “In addition to our efforts in completing the tri-party merger, we have continued to remain focused on asset monetization opportunities. In particular, we are extremely pleased to partner with Taikang Insurance Group, one of China’s leading insurance companies, in our overall healthcare real estate portfolio. Taikang shares our vision regarding the long-term value proposition represented by investing in a diversified U.S. healthcare real estate portfolio and we look forward to a fruitful relationship with them. When also factoring in the liquidity from the medical office building portfolio sale, we have again dramatically enhanced an already attractive liquidity profile which provides for significant financial flexibility and future earnings potential. As powerful as this liquidity position is, our currently un-invested cash of over $1 billion has resulted in a significant drag on this quarter’s earnings. Additionally, while the majority of our owned real estate again exhibited solid performance in the third quarter, our hotels continued to be impacted by displacement of room revenue resulting from planned renovations and sluggish hospitality market conditions.”
Net receivables were at $266.85 million as on Sep. 30, 2016, up 222 percent or $183.98 million from year-ago.
Investments stood at $875.50 million as on Sep. 30, 2016, down 49.82 percent or $869.18 million from year-ago.
Total assets declined 28.23 percent or $5,258.03 million to $13,364.89 million on Sep. 30, 2016. On the other hand, total liabilities were at $9,989.87 million as on Sep. 30, 2016, down 25.46 percent or $3,411.86 million from year-ago.
Return on assets was negative at 0.62 percent in the quarter against a positive 0.26 percent in the last year period. Return on equity for the quarter stood at negative 2.97 percent as compared to a negative 2.42 percent for the previous year period.
Debt comes down significantly
Total debt was at $7,791.49 million as on Sep. 30, 2016, down 36.55 percent or $4,488.20 million from year-ago. Shareholders equity stood at $3,375.02 million as on Sep. 30, 2016, down 35.36 percent or $1,846.16 million from year-ago. As a result, debt to equity ratio went down 4 basis points to 2.31 percent in the quarter.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
