VEREIT, Inc. (VER) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $14.44 million in the quarter, against a net loss of $113.09 million in the last year period. Revenue during the quarter dropped 5.69 percent to $348.03 million from $369.02 million in the previous year period.
Cost of revenue went down marginally by 2.29 percent or $0.80 million during the quarter to $34.02 million. Gross margin for the quarter contracted 34 basis points over the previous year period to 90.23 percent.
Total expenses were $269.19 million for the quarter, down 37.71 percent or $162.98 million from year-ago period. Operating margin for the quarter period stood at positive 22.65 percent as compared to a negative 17.11 percent for the previous year period.
Operating income for the quarter was $78.84 million, compared with an operating loss of $63.15 million in the previous year period.
Revenue from real estate activities during the quarter declined 5 percent or $16.89 million to $320.90 million.
Income from operating leases during the quarter dropped 6.44 percent or $20.23 million to $293.74 million. Revenue from tenant reimbursements was $26.73 million for the quarter, up 14.97 percent or $3.48 million from year-ago period.
Revenue from other real estate activities during the quarter was $0.43 million, down 23.90 percent or $0.14 million from year-ago period.
Other income during the quarter was $27.13 million, down 13.13 percent or $4.10 million from year-ago period.
Glenn J. Rufrano, chief executive officer, stated, "First quarter results were in-line with our expectations and provide a solid foundation for 2017. We successfully executed on acquisitions and dispositions - which reduced Red Lobster exposure to 7.4% - as well as maintained a strong and liquid balance sheet. Our ongoing accomplishments resulted in Moody's and S&P both upgrading the Company, and we are now investment grade with all three major ratings agencies. The size and diversity of our portfolio, combined with a single-tenant focus, have us well-positioned for today's evolving business environment."
Receivables remain almost stable
Net receivables stood at $37.55 million as on Mar. 31, 2017. Investments stood at $77.54 million as on Mar. 31, 2017.
Total assets stood at $15,356.54million as on Mar. 31, 2017. On the other hand, total liabilities were at $6,874.91 million as on Mar. 31, 2017.
Return on assets was at 0.50 percent in the quarter. At the same time, return on equity was at 0.17 percent in the quarter.
Total debt was at $6,287.40 million as on Mar. 31, 2017. Shareholders equity was at $8,481.63 million as on Mar. 31, 2017. Meanwhile, debt to equity ratio was at 0.74 percent in the quarter.
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