Revenue during the quarter went up marginally by 2.42 percent to $172.51 million from $168.42 million in the previous year period.

Cost of revenue rose 12.73 percent or $0.90 million during the quarter to $7.97 million. Gross margin for the quarter contracted 42 basis points over the previous year period to 95.38 percent.

Total expenses were $154.71 million for the quarter, down 3.02 percent or $4.82 million from year-ago period. Operating margin for the quarter expanded 504 basis points over the previous year period to 10.32 percent.

Operating income for the quarter was $17.80 million, compared with $8.90 million in the previous year period.

Thomas H. Nolan, Jr., chairman and chief executive officer stated, "During the third quarter, we continued to grow and strengthen our portfolio, acquiring 102 properties with an investment value of $216 million and an overall initial yield of 7.50%. We also continue to proactively manage our portfolio, disposing of $69 million of properties at an overall capitalization rate of 6.18% for occupied properties. Subsequent to quarter-end, we closed on the sale of 108 properties to 84 Lumber Company for $205.7 million, including a $5 million amendment fee. Finally, having previously achieved investment grade ratings from S&P and Fitch, we received an investment grade rating from Moody's and completed our inaugural Senior Unsecured debt offering in the quarter, raising $300 million of capital to partially retire $322 million of high coupon mortgage debt. As a result, we have significantly lowered our cost of capital and increased our balance sheet flexibility."

Total assets went down marginally by 1.03 percent or $81.23 million to $7,811 million on Sep. 30, 2016. On the other hand, total liabilities were at $4,045.06 million as on Sep. 30, 2016, down 6.73 percent or $291.95 million from year-ago.

Return on assets moved up 1 basis points to 0.12 percent in the quarter. At the same time, return on equity moved up 31 basis points to 0.73 percent in the quarter.