Steadfast Apartment REIT, Inc. (SFAR) saw its loss narrow to $9.89 million, or $0.20 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $14.22 million, or $0.58 a share.
Revenue during the quarter surged 85.01 percent to $37.36 million from $20.19 million in the previous year period.
Cost of revenue surged 89.11 percent or $6.99 million during the quarter to $14.84 million. Gross margin for the quarter contracted 86 basis points over the previous year period to 60.28 percent.
Total expenses were $40.70 million for the quarter, up 34.21 percent or $10.37 million from year-ago period. Operating margin for the quarter stood at negative 8.95 percent as compared to a negative 50.18 percent for the previous year period.
Operating loss for the quarter was $3.34 million, compared with an operating loss of $10.13 million in the previous year period.
Revenue from real estate activities during the quarter surged 85.01 percent or $17.17 million to $37.36 million.
Income from operating leases during the quarter surged 85.43 percent or $15.39 million to $33.40 million. Revenue from tenant reimbursements was $3.96 million for the quarter, up 81.54 percent or $1.78 million from year-ago period.
"The Emerging Trends in Real Estate 2017 survey by PricewaterhouseCoopers LLP and Urban Land Institute, pointed out that Austin, Texas now offers the most attractive real estate investment opportunity of any major U.S. market followed by Dallas/Ft. Worth," said Ella Neyland, president of the Company. "Both of these markets were Steadfast target markets when we started investing for our shareholders because we believed both markets exemplify our business plan to buy in neighborhoods that have a vibrant, diverse economy."
Receivables remain almost stable
Net receivables stood at $1.56 million as on Sep. 30, 2016.
Total assets jumped 50.67 percent or $501.24 million to $1,490.46 million on Sep. 30, 2016. On the other hand, total liabilities were at $986.49 million as on Sep. 30, 2016, up 43.55 percent or $299.26 million from year-ago.
Return on assets for the quarter stood at negative 0.22 percent as compared to a negative 1.02 percent for the previous year period. Return on equity for the quarter stood at negative 2.06 percent as compared to a negative 4.81 percent for the previous year period.
Debt increases substantially
Total debt was at $951.47 million as on Sep. 30, 2016, up 42.56 percent or $284.06 million from year-ago. Shareholders equity stood at $480.82 million as on Sep. 30, 2016, up 62.58 percent or $185.09 million from year-ago. As a result, debt to equity ratio went down 28 basis points to 1.98 percent in the quarter.
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