First Potomac Realty Trust (FPO) saw its loss narrow to $1.65 million, or $0.03 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $38.12 million, or $0.72 a share.
Revenue during the quarter dropped 9.59 percent to $38.97 million from $43.10 million in the previous year period.
Cost of revenue dropped 4.16 percent or $0.60 million during the quarter to $13.89 million. Gross margin for the quarter contracted 202 basis points over the previous year period to 64.36 percent.
Total expenses were $34.66 million for the quarter, down 66.15 percent or $67.72 million from year-ago period. Operating margin for the quarter period stood at positive 11.07 percent as compared to a negative 137.51 percent for the previous year period.
Operating income for the quarter was $4.31 million, compared with an operating loss of $59.27 million in the previous year period.
For financial year 2017, the company forecasts diluted loss per share to be in the range of $0.18 to $0.14.
Revenue from real estate activities during the quarter declined 9.59 percent or $4.13 million to $38.97 million.
Income from operating leases during the quarter dropped 10.14 percent or $3.54 million to $31.41 million. Revenue from tenant reimbursements was $7.56 million for the quarter, down 7.22 percent or $0.59 million from year-ago period.
Bob Milkovich, chief executive officer of First Potomac Realty Trust stated, “A year ago we announced our strategic plan to de-risk our portfolio, de-lever our balance sheet and maximize value for our shareholders, and I am pleased with the progress we have made to date. While there was an intense focus on executing the Strategic Plan, we were also able to deliver very strong operational and financial results in 2016. As we look forward, we know there is plenty of work to be done in 2017, including completing our targeted non-core asset dispositions and executing on our redevelopment projects, but we are prepared for those objectives and look forward to continuing to deliver value for our shareholders."
Receivables move up
Net receivables were at $49.64 million as on Dec. 31, 2016, up 6.16 percent or $2.88 million from year-ago.
Total assets declined 13.11 percent or $190.12 million to $1,260.25 million on Dec. 31, 2016. On the other hand, total liabilities were almost stable over the past one year at $795.62 million on Dec. 31, 2016.
Return on assets was at 0.39 percent in the quarter against a negative 2.30 percent in the last year period. Return on equity for the quarter stood at negative 0.38 percent as compared to a negative 6.59 percent for the previous year period.
Debt moves up marginally
Total debt was at $737.17 million as on Dec. 31, 2016, up 1.81 percent or $13.13 million from year-ago. Shareholders equity stood at $436.38 million as on Dec. 31, 2016, down 30.22 percent or $188.94 million from year-ago. As a result, debt to equity ratio went up 53 basis points to 1.69 percent in the quarter.
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