VEREIT, Inc. (VER) has reported a 291.75 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $29.50 million, or $0.01 a share in the quarter, compared with $7.53 million, or $0.01 a share for the same period last year.
Revenue during the quarter dropped 5.73 percent to $362.92 million from $384.95 million in the previous year period.
Cost of revenue went down marginally by 1.33 percent or $0.53 million during the quarter to $39.45 million. Gross margin for the quarter contracted 48 basis points over the previous year period to 89.13 percent.
Total expenses were $277.24 million for the quarter, down 3.41 percent or $9.78 million from year-ago period. Operating margin for the quarter contracted 183 basis points over the previous year period to 23.61 percent.
Operating income for the quarter was $85.67 million, compared with $97.93 million in the previous year period.
Revenue from real estate activities during the quarter declined 7.15 percent or $25.56 million to $331.85 million.
Income from operating leases during the quarter dropped 9.10 percent or $30.38 million to $303.38 million. Revenue from tenant reimbursements was $27.97 million for the quarter, up 21.69 percent or $4.99 million from year-ago period.
Revenue from other real estate activities during the quarter was $0.49 million, down 25.04 percent or $0.17 million from year-ago period.
Other income during the quarter was $31.07 million, up 12.79 percent or $3.52 million from year-ago period.
Glenn J. Rufrano, chief executive officer, stated, “Through the first three quarters, we have continued to execute on our business plan. We have achieved more than $800 million of dispositions year-to-date, surpassing the low-end of our 2016 guidance. From a balance sheet perspective, the successful $1 billion bond offering in May provides a well-laddered debt maturity schedule and the $700 million stock offering in August allowed us to reach investment grade metrics earlier than expected. The upgrade by S&P, along with our transactional and operational infrastructure; large, stabilized portfolio; and sizable market opportunity within the net-lease sector, provides the ability to acquire assets on a leverage-neutral basis.”
Net receivables were at $43.90 million as on Sep. 30, 2016, down 58.97 percent or $63.09 million from year-ago.
Investments stood at $88.88 million as on Sep. 30, 2016, down 14.29 percent or $14.82 million from year-ago.
Total assets declined 14.15 percent or $2,647.07 million to $16,057.82 million on Sep. 30, 2016. On the other hand, total liabilities were at $7,170.12 million as on Sep. 30, 2016, down 25.68 percent or $2,477.54 million from year-ago.
Return on assets moved down 5 basis points to 0.51 percent in the quarter. At the same time, return on equity moved up 25 basis points to 0.33 percent in the quarter.
Debt comes down significantly
Total debt was at $6,553.07 million as on Sep. 30, 2016, down 25.94 percent or $2,295.44 million from year-ago. Shareholders equity stood at $8,887.70 million as on Sep. 30, 2016, down 1.87 percent or $169.53 million from year-ago. As a result, debt to equity ratio went down 24 basis points to 0.74 percent in the quarter.
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