Kite Realty Group Trust (KRG) has reported a 68.56 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $3.36 million, or $0.04 a share in the quarter, compared with $10.68 million, or $0.06 a share for the same period last year.
Revenue during the quarter went down marginally by 0.47 percent to $88.87 million from $89.30 million in the previous year period.
Cost of revenue dropped 6.33 percent or $1.55 million during the quarter to $22.98 million. Gross margin for the quarter expanded 162 basis points over the previous year period to 74.14 percent.
Total expenses were $71.29 million for the quarter, up 3.34 percent or $2.31 million from year-ago period. Operating margin for the quarter contracted 296 basis points over the previous year period to 19.78 percent.
Operating income for the quarter was $17.58 million, compared with $20.31 million in the previous year period.
For financial year 2017, the company projects diluted earnings per share to be in the range of $0.12 to $0.18. For financial year 2017, the company projects diluted earnings per share to be in the range of $2 to $2.06 on adjusted basis.
Revenue from real estate activities during the quarter was almost stable at $88.87 million, when compared with the previous year period.
Income from operating leases during the quarter went up marginally by 2.21 percent or $1.48 million to $68.62 million. Revenue from tenant reimbursements was $17.79 million for the quarter, down 3.01 percent or $0.55 million from year-ago period.
Revenue from other real estate activities during the quarter was $2.46 million, down 35.44 percent or $1.35 million from year-ago period.
“We finished a solid fourth quarter and full year 2016,” said John Kite, chief executive officer. “We executed our inaugural public debt offering at an attractive 4% coupon. We ended the year with $430 million of liquidity and only $90 million of debt maturing through 2020. We generated a 3.6% increase in same-property NOI for the quarter, or 4.5% excluding the impact of our 3-R program. Small shop leasing is approaching our 90% goal, as we increased another 130 basis points from last year. Our redevelopment efforts are progressing according to plan, as we were able to successfully complete four projects in the fourth quarter. By continuing to grow free cash flow, we were able to increase our quarterly cash dividend another 5.2% at the end of the year. As we look forward into 2017, we will focus on achieving our long-term strategic goals and will continue to provide value for our shareholders.”
Receivables move up marginally
Net receivables were at $53.09 million as on Dec. 31, 2016, up 3.89 percent or $1.99 million from year-ago.
Total assets went down marginally by 2.91 percent or $109.67 million to $3,656.37 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,923.94 million as on Dec. 31, 2016, down 1.18 percent or $23.03 million from year-ago.
Return on assets moved down 21 basis points to 0.48 percent in the quarter. At the same time, return on equity moved down 11 basis points to 0.20 percent in the quarter.
Debt remains almost stable
Total debt was almost stable over the past one year at $1,731.07 million on Dec. 31, 2016. Shareholders equity stood at $1,644.27 million as on Dec. 31, 2016, down 4.78 percent or $82.48 million from year-ago. As a result, debt to equity ratio went up 5 basis points to 1.05 percent in the quarter.
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