Investors Real Estate Trust (IRET) has reported 41.93 percent plunge in profit for the quarter ended Jan. 31, 2017. The company has earned $23.11 million, or $0.16 a share in the quarter, compared with $39.80 million, or $0.30 a share for the same period last year.    

Revenue during the quarter grew 5.72 percent to $51.17 million from $48.41 million in the previous year period.

Cost of revenue rose 11.11 percent or $2.28 million during the quarter to $22.80 million. Gross margin for the quarter contracted 216 basis points over the previous year period to 55.45 percent.

Total expenses were $40.44 million for the quarter, up 11.74 percent or $4.25 million from year-ago period. Operating margin for the quarter contracted 426 basis points over the previous year period to 20.98 percent.

Operating income for the quarter was $10.73 million, compared with $12.22 million in the previous year period.      

Revenue from real estate activities during the quarter increased 5.72 percent or $2.77 million to $51.17 million.

Income from operating leases during the quarter rose 5.14 percent or $2.26 million to $46.28 million. Revenue from tenant reimbursements was $4.90 million for the quarter, up 11.50 percent or $0.50 million from year-ago period.

Chief executive officer Tim Mihalick commented, "Our third fiscal quarter was marked by tremendous progress on our ongoing evolution to a focused multifamily company despite some operational challenges. Our non-same store newly developed and acquired assets continued to drive multifamily portfolio NOI, though our same-store multifamily portfolio felt the impact of supply growth in certain of our markets as well as continued challenges in our energy-impacted markets. Compounding these factors, we experienced near-record snowfall in North Dakota, which affected both revenue and expenses during the quarter. However, our revenue management system as well as our utility reimbursement program helped to drive healthy 3.4% rate growth across our same store multifamily portfolio, excluding our energy impacted markets, and we have an opportunity to drive occupancy as we enter the stronger leasing season in the spring. Further, we are continuing with our value-add program which has resulted in attractive 11.5% rate growth in the 993 units which have been refreshed this fiscal year to date."

Net receivables were at $3.88 million as on Jan. 31, 2017, down 24.23 percent or $1.24 million from year-ago. 

Total assets declined 5.11 percent or $86.72 million to $1,609.09 million on Jan. 31, 2017. On the other hand, total liabilities were almost stable over the past one year at $980.59 million on Jan. 31, 2017.

Return on assets moved down 9 basis points to 0.76 percent in the quarter. At the same time, return on equity moved down 212 basis points to 3.09 percent in the quarter.