Investors Real Estate Trust (IRET) has reported an 175.20 percent jump in profit for the quarter ended Apr. 30, 2017. The company has earned $30.28 million, or $0.23 a share in the quarter, compared with $11 million, or $0.07 a share for the same period last year. Revenue during the quarter grew 12 percent to $54.34 million from $48.52 million in the previous year period.
Cost of revenue rose 22.94 percent or $5.31 million during the quarter to $28.45 million. Gross margin for the quarter contracted 466 basis points over the previous year period to 47.64 percent.
Total expenses were $46.92 million for the quarter, up 15.67 percent or $6.36 million from year-ago period. Operating margin for the quarter contracted 274 basis points over the previous year period to 13.66 percent.
Operating income for the quarter was $7.43 million, compared with $7.96 million in the previous year period.
Revenue from real estate activities during the quarter increased 12 percent or $5.82 million to $54.34 million.
Income from operating leases during the quarter rose 12.82 percent or $5.65 million to $49.72 million. Revenue from tenant reimbursements was $4.63 million for the quarter, up 3.84 percent or $0.17 million from year-ago period.
chief executive officer Mark Decker commented, “During our fiscal fourth quarter, we continued to make substantial progress on our strategic transformation into a premier, focused multifamily REIT. Our total portfolio revenue and NOI increased by 12.0% and 14.3%, respectively, driven primarily by our developments which are performing strongly. Several of our legacy markets were still impacted by weakness in the oil sector and construction activity, however we recorded a year-over-year increase in same store revenue during the quarter, and with quarter-end occupancies still above 94%, we believe we are on track for further improvement. On the investment front, we are pleased with our recent acquisition of Oxb Apartments, a brand new Class A multifamily community in St. Paul, Minnesota. We were able to efficiently redeploy a portion of the proceeds from our recent non-core property sales, and we continue to pursue additional investments which we believe will add the quality of our portfolio and enhance our long term growth profile. Finally, we added talent to our management team, bringing in executives with substantial public company and multifamily industry expertise. As we look ahead to fiscal 2018, we are motivated and energized as we continue to implement our strategic initiatives, and drive value for our shareholders.”
Receivables increase substantially
Net receivables were at $2.60 million as on Apr. 30, 2017, up 70.60 percent or $1.08 million from year-ago. Total assets declined 16.23 percent or $285.66 million to $1,474.51 million on Apr. 30, 2017. On the other hand, total liabilities were at $831.24 million as on Apr. 30, 2017, down 19.64 percent or $203.15 million from year-ago.
Return on assets moved down 17 basis points to 0.96 percent in the quarter. At the same time, return on equity moved up 327 basis points to 4.40 percent in the quarter.
Debt comes down
Total debt was at $760.83 million as on Apr. 30, 2017, down 16.58 percent or $151.20 million from year-ago. Shareholders equity stood at $636.09 million as on Apr. 30, 2017, down 11.44 percent or $82.17 million from year-ago. As a result, debt to equity ratio went down 7 basis points to 1.20 percent in the quarter.
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