Retail Properties of America, Inc. (RPAI) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $9.10 million, or $ 0.05 a share in the quarter, against a net profit of $47.43 million, or $0.19 a share in the last year period. Revenue during the quarter dropped 3.33 percent to $143.69 million from $148.64 million in the previous year period.
Total expenses were $108.43 million for the quarter, down 1.40 percent or $1.54 million from year-ago period. Operating margin for the quarter contracted 148 basis points over the previous year period to 24.54 percent.
Operating income for the quarter was $35.26 million, compared with $38.67 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $88.74 million compared with $87.87 million in the prior year period. At the same time, adjusted EBITDA margin improved 264 basis points in the quarter to 61.76 percent from 59.12 percent in the last year period.
For fiscal year 2017, Retail Properties of America, Inc. expects diluted earnings per share to be in the range of $0.91 to $0.96.
Revenue from real estate activities during the quarter went up marginally by 1.42 percent or $0.43 million to $30.79 million.
Revenue from tenant reimbursements was $30.79 million for the quarter, up 1.42 percent or $0.43 million from year-ago period.
Other income during the quarter was $2.93 million, down 2.98 percent or $0.09 million from year-ago period.
"We are pleased to report another solid quarter of financial and operational results, highlighted by our strong blended re-leasing spreads of 10%, representing a record high for RPAI," stated Steve Grimes, president and chief executive officer. "While recent tenant bankruptcies have caused short-term disruption in our same store NOI growth assumption for 2017, we view this as a tremendous opportunity to significantly mark-to-market rents and strengthen our long-term underlying cash flows, which is a direct result of the strong tenant demand to lease space in our high quality portfolio. In addition, we continue to make excellent progress on our 2017 transactional goals with 75% of our targeted retail dispositions closed, under contract or in LOI."
Receivables remain almost stable
Net receivables stood at $71.70 million as on Mar. 31, 2017. Total assets stood at $4,466.62million as on Mar. 31, 2017. On the other hand, total liabilities were at $2,364.14 million as on Mar. 31, 2017.
Return on assets was at 1.71 percent in the quarter. Return on equity was negative at 0.55 percent in the quarter.
Total debt was at $2,077.70 million as on Mar. 31, 2017. Shareholders equity was at $2,102.48 million as on Mar. 31, 2017. Meanwhile, debt to equity ratio was at 0.99 percent in the quarter.
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