NorthStar Realty Europe Corporation (NRE) saw its loss narrow to $15.35 million, or $0.28 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $28.98 million, or $0.49 a share.
Revenue during the quarter dropped 26.19 percent to $30.73 million from $41.63 million in the previous year period.
Cost of revenue dropped 20.68 percent or $1.91 million during the quarter to $7.32 million. Gross margin for the quarter contracted 165 basis points over the previous year period to 76.17 percent.
Total expenses were $40.61 million for the quarter, up 8.68 percent or $3.24 million from year-ago period. Operating margin for the quarter stood at negative 32.17 percent as compared to a positive 10.23 percent for the previous year period.
Operating loss for the quarter was $9.89 million, compared with an operating income of $4.26 million in the previous year period.
Revenue from real estate activities during the quarter declined 15.25 percent or $0.93 million to $5.16 million.
Income from operating leases during the quarter dropped 26.69 percent or $9.30 million to $25.54 million.
Other income during the quarter was $0.03 million, down 95.87 percent or $0.67 million from year-ago period.
Mahbod Nia, chief executive officer, commented, "We are pleased to report strong earnings and real estate operating results for the first quarter of 2017. During and subsequent to the first quarter, we signed new leases for 12,500 sqm of primarily office space, increasing both the occupancy and remaining lease term across the portfolio. This includes the leasing of five floors in the Trianon tower that were vacated late last year to Deutsche Bundesbank, the German central bank."
Net receivables were at $5.71 million as on Mar. 31, 2017, down 32.06 percent or $2.69 million from year-ago.
Investments stood at $12.91 million as on Mar. 31, 2017, down 1.69 percent or $0.22 million from year-ago.
Total assets declined 28.03 percent or $720.45 million to $1,849.42 million on Mar. 31, 2017. On the other hand, total liabilities were at $1,257.73 million as on Mar. 31, 2017, down 29.55 percent or $527.44 million from year-ago.
Return on assets for the quarter stood at negative 0.49 percent as compared to a negative 0.65 percent for the previous year period. Return on equity for the quarter stood at negative 2.60 percent as compared to a negative 3.70 percent for the previous year period.
Debt comes down significantlyTotal debt was at $1,166.92 million as on Mar. 31, 2017, down 29.01 percent or $476.89 million from year-ago. Shareholders equity stood at $590.06 million as on Mar. 31, 2017, down 24.65 percent or $193.01 million from year-ago. As a result, debt to equity ratio went down 12 basis points to 1.98 percent in the quarter.
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