Select Income REIT (SIR) has reported an 122.71 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $24.22 million, or $0.27 a share in the quarter, compared with $10.88 million, or $0.12 a share for the same period last year.
Revenue during the quarter went up marginally by 0.04 percent to $114.84 million from $114.79 million in the previous year period.
Cost of revenue rose 10.78 percent or $1.10 million during the quarter to $11.31 million. Gross margin for the quarter contracted 96 basis points over the previous year period to 90.15 percent.
Total expenses were $70.22 million for the quarter, up 14.35 percent or $8.81 million from year-ago period. Operating margin for the quarter contracted 766 basis points over the previous year period to 38.85 percent.
Operating income for the quarter was $44.61 million, compared with $53.38 million in the previous year period.
Revenue from real estate activities during the quarter was almost stable at $114.84 million, when compared with the previous year period.
Income from operating leases during the quarter was almost stable at $96.50 million, when compared with the previous year period. Revenue from tenant reimbursements was $18.33 million for the quarter, up 1.60 percent or $0.29 million from year-ago period.
David Blackman, president and chief operating officer of SIR, made the following statement, "During the fourth quarter of 2016, Select Income REIT continued with steady execution of its operating strategy, generating normalized funds from operations of $0.71 per diluted share, a two cents per share increase over the previous quarter ended September 30, 2016. We saw continued momentum in leasing activity during the quarter, with leases executed for approximately 353,000 square feet, which resulted in rents that were 32.0% higher than previous rents for the same space, 17.4 years of weighted average lease term, and leasing capital commitments of only $0.01 per square foot per lease year."
Receivables move up
Net receivables were at $124.09 million as on Dec. 31, 2016, up 24.95 percent or $24.78 million from year-ago.
Total assets went down marginally by 0.95 percent or $44.66 million to $4,639.68 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,565.72 million as on Dec. 31, 2016, down 0.84 percent or $21.67 million from year-ago.
Return on assets moved up 31 basis points to 0.97 percent in the quarter. At the same time, return on equity moved up 65 basis points to 1.17 percent in the quarter.
Debt remains almost stable
Total debt was at $2,351.32 million as on Dec. 31, 2016, down 0.52 percent or $12.29 million from year-ago. Shareholders equity stood at $2,073.96 million as on Dec. 31, 2016, down 1.10 percent or $23 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 1.13 percent in the quarter.
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