Washington Prime Group Inc. (WPG) has reported a 6.55 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $12.81 million, or $0.05 a share in the quarter, compared with $12.02 million, or $0.05 a share for the same period last year.     

Revenue during the quarter dropped 3.64 percent to $202.39 million from $210.03 million in the previous year period.

Cost of revenue dropped 7.56 percent or $5.17 million during the quarter to $63.25 million. Gross margin for the quarter expanded 133 basis points over the previous year period to 68.75 percent.

Total expenses were $152.86 million for the quarter, down 1.16 percent or $1.79 million from year-ago period. Operating margin for the quarter contracted 189 basis points over the previous year period to 24.47 percent.

Operating income for the quarter was $49.53 million, compared with $55.38 million in the previous year period.

For fiscal year 2017, Washington Prime Group Inc. expects operating income to be in the range of $260.60 million to $263.90 million. The company projects diluted earnings per share to be in the range of $1.13 to $1.22. It company projects diluted earnings per share to be in the range of $1.64 to $1.70 on adjusted basis.

For the second-quarter 2017, Washington Prime Group Inc. projects diluted earnings per share to be in the range of $0.76 to $0.81. On an adjusted basis, the company projects diluted earnings per share to be in the range of $0.40 to $0.42. 

Revenue from real estate activities during the quarter declined 3.80 percent or $7.78 million to $196.74 million.

Income from operating leases during the quarter dropped 4.51 percent or $6.61 million to $139.95 million. Revenue from tenant reimbursements was $56.79 million for the quarter, down 2.01 percent or $1.17 million from year-ago period.

Other income during the quarter was $5.66 million, up 2.59 percent or $0.14 million from year-ago period.

Lou Conforti, chief executive officer and Director stated: "We increased guidance for fiscal 2017 net income and FFO to the midpoint of $1.17 per diluted share and $1.67 per diluted share, respectively. We are addressing the volatile retail environment with hard work and common sense. This includes replacing the static with the kinetic; acting in a proactive rather than reactive fashion; employing portfolio construction by replacing undifferentiated retailers to diversity tenant mix; and most importantly, respecting our guests by offering products, good and services which appeal to a particular demographic constituency. While our glasses are far from rose tinted, the hysteria has reached a fever pitch and it’s now time for more a rational assessment of the cash flow characteristics of WPG and our entire peer group. A binary path mindset is now pervasive within the space whereby eCommerce is pitted against physical space. The idea of ‘winner take all’ is just plain silly albeit valuation in many instances is akin to a de facto liquidating trust. There exists a symbiotic relationship between physical space and eCommerce which affords us an opportunity upon which we will continue to capitalize."

Total assets declined 6.48 percent or $347.76 million to $5,017.04 million on Mar. 31, 2017. On the other hand, total liabilities were at $3,791.02 million as on Mar. 31, 2017, down 5.45 percent or $218.41 million from year-ago.

Return on assets moved down 1 basis points to 0.94 percent in the quarter. At the same time, return on equity moved up 13 basis points to 0.76 percent in the quarter.