Education Realty Trust (EDR) has reported 4.33 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $14.13 million, or $0.19 a share in the quarter, compared with $14.77 million, or $0.27 a share for the same period last year.
Revenue during the quarter grew 11.53 percent to $84.22 million from $75.52 million in the previous year period.
Cost of revenue rose 5.35 percent or $1.84 million during the quarter to $36.27 million. Gross margin for the quarter expanded 252 basis points over the previous year period to 56.94 percent.
Total expenses were $66.09 million for the quarter, up 18.73 percent or $10.43 million from year-ago period. Operating margin for the quarter contracted 476 basis points over the previous year period to 21.53 percent.
Operating income for the quarter was $18.13 million, compared with $19.86 million in the previous year period.
For financial year 2017, Education Realty Trust projects net income to be in the range of $50.90 million to $58.40 million. For fiscal year 2017, the company expects diluted earnings per share to be in the range of $0.66 to $0.76.
Revenue from real estate activities during the quarter increased 11.78 percent or $8.65 million to $82.10 million.
Income from operating leases during the quarter rose 12.06 percent or $8.66 million to $80.44 million.
Income from management fees during the quarter increased 6.17 percent or $0.06 million to $1.03 million. Revenue from other real estate activities during the quarter was $0.64 million, down 9.40 percent or $0.07 million from year-ago period.
"I am proud of the way we finished 2016," stated Randy Churchey, EdRs chairman and chief executive officer. "We produced solid internal results, with same-community NOI growth of 3.3%, and our investment in new communities, both through development and acquisition, contributed an additional 16% growth in community NOI. With our low leverage and equity capital from completed and unsettled ATM sales, our embedded external growth in collegiate housing assets of 46% is already funded, putting us in a great position to make 2017 another year with strong growth."
Total assets grew 25.19 percent or $504.35 million to $2,506.18 million on Dec. 31, 2016. On the other hand, total liabilities were at $665.80 million as on Dec. 31, 2016, down 10.44 percent or $77.61 million from year-ago.
Return on assets moved up 17 basis points to 0.44 percent in the quarter. At the same time, return on equity moved down 40 basis points to 0.78 percent in the quarter.
Debt comes down Total debt was at $517.20 million as on Dec. 31, 2016, down 19.02 percent or $121.51 million from year-ago. Shareholders equity stood at $1,801.44 million as on Dec. 31, 2016, up 44.71 percent or $556.57 million from year-ago. As a result, debt to equity ratio went down 23 basis points to 0.29 percent in the quarter.
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