Piedmont Office Realty Trust, Inc (PDM) has reported a 75.97 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $30.19 million, or $0.21 a share in the quarter, compared with $125.64 million, or $0.84 a share for the same period last year.     

Revenue from real estate activities during the quarter increased 3.19 percent or $4.45 million to $143.91 million.

Cost of revenue rose 5.20 percent or $2.84 million during the quarter to $57.50 million. Gross margin for the quarter contracted 76 basis points over the previous year period to 60.05 percent.

Total expenses were $117.28 million for the quarter, up 6.11 percent or $6.75 million from year-ago period. Operating margin for the quarter contracted 224 basis points over the previous year period to 18.51 percent.

Operating income for the quarter was $26.63 million, compared with $28.94 million in the previous year period.

For fiscal year 2017, Piedmont Office Realty Trust, Inc expects net income to be in the range of $105 million to $213 million.

Income from operating leases during the quarter rose 3.41 percent or $3.95 million to $119.56 million. Revenue from tenant reimbursements was $23.96 million for the quarter, up 2.38 percent or $0.56 million from year-ago period.

Income from management fees during the quarter dropped 12.07 percent or $0.05 million to $0.39 million.

Commenting on 2016 results, Donald A. Miller, CFA, president and chief executive officer, said, "We are pleased with our 2016 results from all perspectives - financial, leasing and transactional. Although net income declined due to the large gain on the sale of Aon Center last year, the fact that we are reporting approximately 4% growth in Core FFO per share, despite having been a net seller of significant assets over the last two years, is a testament to the hard work of both our leasing and transactional teams. Given a relatively low expiration schedule, the completion of two million square feet of leasing during 2016 resulted in positive net absorption for the portfolio and, combined with our net transactional activity for the year, allowed us to end the year over 94% leased."

Net receivables were at $26.49 million as on Dec. 31, 2016, down 63.07 percent or $45.25 million from year-ago.

Real estate investments stood at $7.36 million as on Dec. 31, 2016, down 2.86 percent or $0.22 million from year-ago.

Total assets were almost stable over the past one year at $4,449.35 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,270.46 million as on Dec. 31, 2016, up 1.45 percent or $32.37 million from year-ago.

Return on assets moved down 5 basis points to 0.61 percent in the quarter. At the same time, return on equity moved down 433 basis points to 1.39 percent in the quarter.