Life Storage, Inc (SSS) swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $4.74 million, or $ 0.10 a share in the quarter, against a net profit of $31.50 million, or $0.88 a share in the last year period. Revenue during the quarter surged 33.92 percent to $127.80 million from $95.43 million in the previous year period.
Cost of revenue surged 37.36 percent or $11.28 million during the quarter to $41.48 million. Gross margin for the quarter contracted 81 basis points over the previous year period to 67.54 percent.
Total expenses were $119.02 million for the quarter, up 115.28 percent or $63.73 million from year-ago period. Operating margin for the quarter contracted 3519 basis points over the previous year period to 6.87 percent.
Operating income for the quarter was $8.78 million, compared with $40.14 million in the previous year period.
For the fourth-quarter, Sovran Self Storage projects revenue to grow in the range of 4 percent to 4.50 percent. Sovran Self Storage projects revenue to grow in the range of 5 percent to 6 percent for the financial year 2016. The company projects operating income to grow in the range of 5.50 percent to 6.50 percent for the fourth-quarter. For fiscal year 2016, the company projects operating income to grow in the range of 2.50 percent to 3.50 percent.
Revenue from real estate activities during the quarter surged 33.84 percent or $30.32 million to $119.91 million.
Income from operating leases during the quarter surged 34.35 percent or $30.25 million to $118.32 million.
Income from management fees during the quarter increased 4.27 percent or $0.06 million to $1.59 million.
Other income during the quarter was $7.89 million, up 35.20 percent or $2.05 million from year-ago period.
Receivables move up marginally
Net receivables were at $6.72 million as on Sep. 30, 2016, up 3.70 percent or $0.24 million from year-ago. Total assets jumped 82.65 percent or $1,741.30 million to $3,848.12 million on Sep. 30, 2016. On the other hand, total liabilities were at $1,728.65 million as on Sep. 30, 2016, up 83.88 percent or $788.58 million from year-ago.
Return on assets moved down 170 basis points to 0.25 percent in the quarter. Return on equity was negative at 0.23 percent in the quarter against a positive 2.74 percent in the last year period.
Debt increases substantially
Total debt was at $1,637.25 million as on Sep. 30, 2016, up 89.05 percent or $771.22 million from year-ago. Shareholders equity stood at $2,101.47 million as on Sep. 30, 2016, up 82.73 percent or $951.43 million from year-ago. As a result, debt to equity ratio went up 3 basis points to 0.78 percent in the quarter.
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