W. P. Carey Inc (WPC) has reported a marginal increase of 0.08 percent in profit for the quarter ended Mar. 31, 2017. The company has earned $57.48 million, or $0.53 a share, compared with $57.44 million or $0.54 a share, a year ago. Revenue during the quarter dropped 18.94 percent to $219.06 million from $270.24 million in the previous year period.
Cost of revenue rose 18.71 percent or $4.87 million during the quarter to $30.92 million. Gross margin for the quarter contracted 448 basis points over the previous year period to 85.88 percent.
Total expenses were $121.96 million for the quarter, down 26.86 percent or $44.79 million from year-ago period. Operating margin for the quarter expanded 603 basis points over the previous year period to 44.33 percent.
Operating income for the quarter was $97.10 million, compared with $103.49 million in the previous year period.
“For the 2017 first quarter, we generated AFFO per diluted share of $1.25, which reflects a number of the proactive steps we took over the last year, including planned real estate dispositions, financing activities that lowered our overall cost of debt and our focus on operational efficiency,” said Mark J. DeCesaris, Chief Executive Officer of W. P. Carey. “We also raised our quarterly cash dividend to 99.5 cents per share, while maintaining a conservative payout ratio. As has been the case since we converted to a REIT in 2012, the vast majority of the earnings that support our dividend were generated through our core competency of net lease investing for our Owned Real Estate portfolio.”
Net receivables were at $106.11 million as on Mar. 31, 2017, up 72.41 percent or $44.56 million from year-ago.
Total assets declined 5.81 percent or $505.42 million to $8,197.83 million on Mar. 31, 2017. On the other hand, total liabilities were at $4,740.21 million as on Mar. 31, 2017, down 8.33 percent or $430.59 million from year-ago.
Return on assets moved down 1 basis points to 1.24 percent in the quarter. At the same time, return on equity moved up 4 basis points to 1.66 percent in the quarter.
Debt comes down
Total debt was at $4,173.35 million as on Mar. 31, 2017, down 8.55 percent or $390.31 million from year-ago. Shareholders equity stood at $3,456.65 million as on Mar. 31, 2017, down 2.12 percent or $74.84 million from year-ago. As a result, debt to equity ratio went down 8 basis points to 1.21 percent in the quarter.
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