Revenue during the quarter grew 19.22 percent to $49.42 million from $41.45 million in the previous year period.

Total expenses were $17.16 million for the quarter, up 8.89 percent or $1.40 million from year-ago period. Operating margin for the quarter expanded 330 basis points over the previous year period to 65.27 percent.

Operating income for the quarter was $32.26 million, compared with $25.69 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $39.69 million compared with $33.50 million in the prior year period. At the same time, adjusted EBITDA margin contracted 49 basis points in the quarter to 80.31 percent from 80.80 percent in the last year period.

Revenue from real estate activities during the quarter increased 19.22 percent or $7.97 million to $49.42 million.

Income from operating leases during the quarter rose 19.22 percent or $7.97 million to $49.42 million.

"We continued to advance on our growth strategy as demonstrated by our strong financial performance in the third quarter," said David A. Campbell, Chief Executive Officer of InfraREIT. "We remain comfortable with, and are reaffirming, our Non-GAAP EPS and CAD guidance ranges for 2016. We do not intend to update guidance beyond 2016 until after the conclusion of the rate case, primarily because the Preliminary Order creates potential uncertainty around the calculation of our lease payments and the mechanisms for updating lease payments to account for new assets placed in service. Over the course of the rate case, we will remain focused on achieving an outcome that includes an effective and efficient process for regulating Sharyland, SDTS, and the leases and is workable for our business."

The company has spent $179.76 million cash to meet investing activities during the nine month period as against cash outgo of $295.01 million in the last year period.

Cash flow from financing activities was $88.38 million for the nine month period, down 61.72 percent or $142.52 million, when compared with the last year period.

Cash and cash equivalents stood at $11.03 million as on Sep. 30, 2016, down 62.90 percent or $18.70 million from $29.72 million on Sep. 30, 2015.

Real estate inventory stood at $6.83 million as on Sep. 30, 2016. Net receivables were at $25.97 million as on Sep. 30, 2016, up 19.99 percent or $4.33 million from year-ago.

Total assets grew 12.79 percent or $205.62 million to $1,813 million on Sep. 30, 2016. On the other hand, total liabilities were at $881.90 million as on Sep. 30, 2016, up 28.33 percent or $194.70 million from year-ago.

Return on assets moved up 19 basis points to 1.82 percent in the quarter. At the same time, return on equity moved up 31 basis points to 1.83 percent in the quarter.