Resource Capital Corporation (RSO) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $45.62 million, or $ 1.69 a share in the quarter, against a net profit of $14.72 million, or $0.21 a share in the last year period.
Revenue during the quarter dropped 3.28 percent to $25.09 million from $25.94 million in the previous year period.
Total expenses were $50.65 million for the quarter, up 240.39 percent or $35.77 million from year-ago period. Operating margin for the quarter stood at negative 101.83 percent as compared to a positive 42.65 percent for the previous year period.
Operating loss for the quarter was $25.55 million, compared with an operating income of $11.07 million in the previous year period.
On September 8, 2016, Resource America, Inc., the parent company of Resource Capital Corp.'s ("RSO" or the "Company") external manager, was acquired by C-III Capital Partners LLC ("C-III"), a leading commercial real estate investment management and services company engaged in a broad range of activities. In conjunction with the closing, Robert C. Lieber has succeeded Jonathan Z. Cohen as chief executive officer and president of RSO. Andrew L. Farkas and Jeffrey P. Cohen joined the board of directors, replacing Edward E. Cohen and Jonathan Z. Cohen, who have stepped down.
Receivables move up
Net receivables were at $51.22 million as on Sep. 30, 2016, up 11.30 percent or $5.20 million from year-ago.
Real estate investments stood at $88.15 million as on Sep. 30, 2016. Investments stood at $162.39 million as on Sep. 30, 2016, down 38.76 percent or $102.79 million from year-ago.
Total assets declined 22.56 percent or $628.56 million to $2,157.48 million on Sep. 30, 2016. On the other hand, total liabilities were at $1,438.92 million as on Sep. 30, 2016, down 25.55 percent or $493.85 million from year-ago.
Return on assets was negative at 2.11 percent in the quarter against a positive 1.14 percent in the last year period. Return on equity was negative at 7.18 percent in the quarter against a positive 0.79 percent in the last year period.
Debt comes down significantly
Total debt was at $1,401.84 million as on Sep. 30, 2016, down 25.47 percent or $479.05 million from year-ago. Shareholders equity stood at $718.56 million as on Sep. 30, 2016, down 15.79 percent or $134.72 million from year-ago. As a result, debt to equity ratio went down 25 basis points to 1.95 percent in the quarter.
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