Washington Prime Group Inc (WPG) has reported 35.62 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $4.87 million, or $0.01 a share in the quarter, compared with $7.56 million, or $0.02 a share for the same period last year. Revenue during the quarter dropped 3.15 percent to $209.92 million from $216.74 million in the previous year period.
Total expenses were $171.50 million for the quarter, down 3.90 percent or $6.97 million from year-ago period. Operating margin for the quarter expanded 65 basis points over the previous year period to 18.30 percent.
Operating income for the quarter was $38.42 million, compared with $38.27 million in the previous year period.
For fiscal year 2016, the company expects diluted earnings per share to be in the range of $0.21 to $0.23.
Revenue from real estate activities during the quarter went down marginally by 1.84 percent or $3.86 million to $205.24 million.
Income from operating leases during the quarter went down marginally by 1.13 percent or $1.67 million to $145.23 million. Revenue from tenant reimbursements was $60.01 million for the quarter, down 3.52 percent or $2.19 million from year-ago period.
Other income during the quarter was $4.69 million, down 38.73 percent or $2.96 million from year-ago period.
Lou Conforti, Chief executive officer and Director stated: “We’ve been busy grinding it out operationally and financially. As discussed last quarter, culling noncore assets was a primary objective and we are now under contract to sell the remaining four. By year end, and ahead of schedule, we will have disposed of all seven noncore assets previously identified. Evidencing price discovery, we have entered into our second joint venture with O’Connor Mall Partners for seven assets of which we will retain majority ownership as well as management and leasing responsibilities. Net proceeds will be utilized to retire indebtedness, meaningfully improving our financial metrics. As we evaluate strategy, every viable option is under consideration as we continue to work towards increasing shareholder value.”
Receivables move up marginally
Net receivables were at $89.39 million as on Sep. 30, 2016, up 0.70 percent or $0.62 million from year-ago. Total assets declined 7.52 percent or $421.35 million to $5,180.56 million on Sep. 30, 2016. On the other hand, total liabilities were at $3,902.59 million as on Sep. 30, 2016, down 3.11 percent or $125.19 million from year-ago.
Return on assets moved up 4 basis points to 0.72 percent in the quarter. At the same time, return on equity moved down 15 basis points to 0.11 percent in the quarter.
Debt comes down marginally
Total debt was at $3,543.55 million as on Sep. 30, 2016, down 2.79 percent or $101.80 million from year-ago. Shareholders equity stood at $1,272.76 million as on Sep. 30, 2016, down 18.83 percent or $295.24 million from year-ago. As a result, debt to equity ratio went up 46 basis points to 2.78 percent in the quarter.
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