American Campus Communities (ACC) has reported a 10.46 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $25.39 million, or $0.19 a share in the quarter, compared with $28.36 million, or $0.25 a share for the same period last year.
Revenue during the quarter went up marginally by 0.88 percent to $203.97 million from $202.20 million in the previous year period.
Total expenses were $152.25 million for the quarter, up 2.54 percent or $3.78 million from year-ago period. Operating margin for the quarter contracted 121 basis points over the previous year period to 25.36 percent.
Operating income for the quarter was $51.72 million, compared with $53.72 million in the previous year period.
For financial year 2017, the company forecasts diluted earnings per share to be in the range of $0.83 to $0.93.
Revenue from real estate activities during the quarter went up marginally by 0.88 percent or $1.77 million to $203.97 million.
Income from operating leases during the quarter went up marginally by 1.19 percent or $2.34 million to $199.73 million.
Income from management fees during the quarter increased 20.57 percent or $0.46 million to $2.68 million. Revenue from other real estate activities during the quarter was $1.56 million, down 39.75 percent or $1.03 million from year-ago period.
"As we close out 2016, we are pleased to have completed the strategic disposition of our non-core assets, refining our best-in-class portfolio into one consisting almost exclusively of core Class A products located pedestrian to Tier 1 universities," said Bill Bayless, American Campus Communities chief executive officer. "Looking forward to 2017, we are excited about the opportunity for significant value creation through accelerating same store NOI growth, forecasted achievement of our 55 percent NOI margin goal and the continued expansion of our high-yielding development pipeline of core pedestrian assets."
Net receivables were at $8.43 million as on Dec. 31, 2016, down 54.38 percent or $10.05 million from year-ago.
Total assets went down marginally by 2.34 percent or $1740.33 million to $5,865.91 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,360.35 million as on Dec. 31, 2016, down 25.42 percent or $804.73 million from year-ago.
Return on assets moved down 16 basis points to 0.73 percent in the quarter. At the same time, return on equity moved down 28 basis points to 0.74 percent in the quarter.
Debt comes down significantly
Total debt was at $2,125.30 million as on Dec. 31, 2016, down 27.91 percent or $822.98 million from year-ago. Shareholders equity stood at $3,450.49 million as on Dec. 31, 2016, up 24.04 percent or $668.83 million from year-ago. As a result, debt to equity ratio went down 44 basis points to 0.62 percent in the quarter.
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