Mid-America Apartment Communities, Inc. (MAA) has reported an 8.13 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $84.28 million, or $1.12 a share in the quarter, compared with $91.73 million, or $1.22 a share for the same period last year.
Revenue during the quarter grew 5.69 percent to $276.90 million from $262 million in the previous year period.
Cost of revenue rose 5.92 percent or $4.49 million during the quarter to $80.28 million. Gross margin for the quarter contracted 6 basis points over the previous year period to 71.01 percent.
Total expenses were $203.11 million for the quarter, up 7.54 percent or $14.25 million from year-ago period. Operating margin for the quarter contracted 127 basis points over the previous year period to 26.65 percent.
Operating income for the quarter was $73.79 million, compared with $73.14 million in the previous year period.
Revenue from real estate activities during the quarter increased 5.69 percent or $14.90 million to $276.90 million.
Income from operating leases during the quarter rose 6.05 percent or $14.49 million to $254.16 million.
Revenue from other real estate activities during the quarter was $22.74 million, up 1.83 percent or $0.41 million from year-ago period.
Eric Bolton, Chairman and Chief Executive Officer, said, "Results for the quarter were at the top end of our prior guidance reflecting continued solid leasing conditions across the portfolio. During the quarter we were successful in closing on opportunistic acquisitions of two recently developed properties. In addition, we completed the disposition of seven older properties in line with our strategy of steadily recycling capital and strengthening our long-term earnings profile."
Accounts payable declined 13.60 percent or $1.43 million to $9.08 million on Sep. 30, 2016.
Total assets were almost stable over the past one year at $6,881.31 million on Sep. 30, 2016. On the other hand, total liabilities were almost stable over the past one year at $3,724.37 million on Sep. 30, 2016.
Return on assets moved down 9 basis points to 1.76 percent in the quarter. At the same time, return on equity moved down 21 basis points to 2.68 percent in the quarter.
Debt remains almost stable
Total debt was almost stable over the past one year at $3,434.16 million on Sep. 30, 2016. Shareholders equity stood at $3,147.58 million as on Sep. 30, 2016, down 0.98 percent or $31.01 million from year-ago. As a result, debt to equity ratio went up 1 basis points to 1.09 percent in the quarter.
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