WELLTOWER INC. (HCN) has reported 134.05 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $349.39 million, or $0.91 a share in the quarter, compared with $149.28 million, or $0.37 a share for the same period last year. Revenue during the quarter grew 4.74 percent to $1,078.32 million from $1,029.48 million in the previous year period.
Cost of revenue rose 12.79 percent or $56.10 million during the quarter to $494.84 million. Gross margin for the quarter contracted 327 basis points over the previous year period to 54.11 percent.
Operating loss for the quarter was $357.65 million, compared with an operating loss of $314.75 million in the previous year period.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $2.65 to $2.75.
Revenue from real estate activities during the quarter increased 4.86 percent or $48.56 million to $1,046.72 million.
Income from operating leases during the quarter dropped 5.82 percent or $24.07 million to $389.37 million.
Revenue from other real estate activities during the quarter was $657.34 million, up 12.42 percent or $72.63 million from year-ago period.
Other income during the quarter was $31.60 million, up 0.89 percent or $0.28 million from year-ago period.
"Welltower delivered 2016 results at the top end of our guidance and ended the year with another strong quarter. We are pleased to be guiding similar 2%-3% same store growth in our best in class total portfolio for 2017," commented chief executive officer Tom DeRosa. "We begin the year with the lowest levered balance sheet in our peer group, 93% of revenues from private pay sources, and a corporate reorganization that includes a projected $30 million reduction in G A from a year ago. Welltowers premium health care real estate and dynamic operating platform is uniquely positioned to capture significant efficiencies and growth opportunities as health care delivery transitions from a fee-for-service to a value based model."
Total assets went down marginally by 0.55 percent or $158.66 million to $28,865.18 million on Dec. 31, 2016. On the other hand, total liabilities were at $13,185.28 million as on Dec. 31, 2016, down 3.51 percent or $479.60 million from year-ago.
Return on assets moved up 10 basis points to 0.96 percent in the quarter. At the same time, return on equity moved up 130 basis points to 2.18 percent in the quarter.
Debt comes down marginally
Total debt was at $12,358.24 million as on Dec. 31, 2016, down 4.70 percent or $609.44 million from year-ago. Shareholders equity stood at $15,281.47 million as on Dec. 31, 2016, up 0.70 percent or $105.59 million from year-ago. As a result, debt to equity ratio went down 5 basis points to 0.81 percent in the quarter.
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