Lexington Realty Trust (LXP) has reported 54.09 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $16 million, or $0.06 a share in the quarter, compared with $34.85 million, or $0.14 a share for the same period last year.
Revenue during the quarter dropped 10.60 percent to $95.33 million from $106.63 million in the previous year period.
Cost of revenue dropped 10.98 percent or $1.54 million during the quarter to $12.51 million. Gross margin for the quarter expanded 6 basis points over the previous year period to 86.87 percent.
Total expenses were $63.18 million for the quarter, down 2.76 percent or $1.79 million from year-ago period. Operating margin for the quarter contracted 535 basis points over the previous year period to 33.72 percent.
Operating income for the quarter was $32.15 million, compared with $41.66 million in the previous year period.
For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.64 to $0.67.
Revenue from real estate activities during the quarter declined 10.60 percent or $11.30 million to $95.33 million.
Income from operating leases during the quarter dropped 11.80 percent or $11.67 million to $87.26 million. Revenue from tenant reimbursements was $8.06 million for the quarter, up 4.85 percent or $0.37 million from year-ago period.
T. Wilson Eglin, chief executive officer and President of Lexington Realty Trust, commented "Positive fourth quarter activity rounded out a highly successful year for Lexington. Sales during the quarter brought total 2016 consolidated disposition volume to $663 million at GAAP and cash cap rates of 10.2% and 5.1%, respectively. We used the proceeds to complete $390 million of new investment activity at favorable spreads and to improve our balance sheet, which brought our leverage to 5.2x net debt to Adjusted EBITDA, its lowest level in recent years. Our investments were more focused in the industrial area during the quarter, and this represents a trend that is expected to continue in 2017."
Net receivables were at $133.18 million as on Dec. 31, 2016, down 30.13 percent or $57.43 million from year-ago.
Total assets declined 10.15 percent or $388.77 million to $3,441.47 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,028.98 million as on Dec. 31, 2016, down 14.31 percent or $338.73 million from year-ago.
Return on assets moved down 44 basis points to 1.05 percent in the quarter. At the same time, return on equity moved down 125 basis points to 1.02 percent in the quarter.
Debt comes downTotal debt was at $1,860.60 million as on Dec. 31, 2016, down 14.74 percent or $321.77 million from year-ago. Shareholders equity stood at $1,412.49 million as on Dec. 31, 2016, down 3.42 percent or $50.04 million from year-ago. As a result, debt to equity ratio went down 17 basis points to 1.32 percent in the quarter.
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