Welltower Inc. (HCN) has reported a 77.05 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $351.26 million, or $0.93 a share in the quarter, compared with $198.40 million, or $0.52 a share for the same period last year.
Revenue during the quarter grew 10.23 percent to $1,079.13 million from $979 million in the previous year period.
Cost of revenue rose 15.90 percent or $64.98 million during the quarter to $473.68 million. Gross margin for the quarter contracted 215 basis points over the previous year period to 56.11 percent.
Operating income for the quarter was $321.02 million, compared with $318.21 million in the previous year period.
For financial year 2016, Welltower Inc. forecasts diluted earnings per share to be in the range of $3.74 to $3.80.
Revenue from real estate activities during the quarter increased 10.12 percent or $96.62 million to $1,051.17 million.
Income from operating leases during the quarter went up marginally by 2.90 percent or $11.86 million to $421.15 million.
Revenue from other real estate activities during the quarter was $630.02 million, up 15.55 percent or $84.76 million from year-ago period.
Other income during the quarter was $27.96 million, up 14.36 percent or $3.51 million from year-ago period.
"Once again, our strong quarterly results reflect Welltower's strategy of owning high quality, modern health care real estate in high barrier to entry markets, our unique relationship model with the leading senior care providers and health systems, and maintaining a low leverage position," said Tom DeRosa, chief executive officer of Welltower. "As will be announced today, we have taken a major step toward enhancing our ability to drive long term shareholder value by redeploying capital to high quality, private pay senior care and outpatient medical real estate and further improving our balance sheet to REIT industry leading levels. This will solidify Welltower's position as the premier owner of quality health care real estate."
Total assets grew 8.94 percent or $2,450.32 million to $29,856.34 million on Sep. 30, 2016. On the other hand, total liabilities were at $14,198.57 million as on Sep. 30, 2016, up 17.30 percent or $2,094.49 million from year-ago.
Return on assets moved down 8 basis points to 1.08 percent in the quarter. At the same time, return on equity moved up 99 basis points to 2.19 percent in the quarter.
Debt moves up
Total debt was at $13,430.89 million as on Sep. 30, 2016, up 17.63 percent or $2,013.46 million from year-ago. Shareholders equity stood at $15,264.24 million as on Sep. 30, 2016, up 0.84 percent or $127.06 million from year-ago. As a result, debt to equity ratio went up 13 basis points to 0.88 percent in the quarter.
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