Upcoming AWS Coverage on Gaming and Leisure Properties Post-Earnings Results
LONDON, UK / ACCESSWIRE / December 20, 2016 / Active Wall St. announces its post-earnings coverage on Investors Real Estate Trust (NYSE: IRET). The Company released its second quarter fiscal 2017 financial results on December 12, 2016. The real estate investment trust posted a y-o-y increase in revenue and Funds from Operations (FFO). Register with us now for your free membership at: http://www.activewallst.com/register/.
One of Investors Real Estate Trust's competitors within the REIT - Diversified space, Gaming and Leisure Properties, Inc. (NASDAQ: GLPI), reported on November 08, 2016, its results for the quarter ended September 30, 2016. AWS will be initiating a research report on Gaming and Leisure Properties in the coming days.
Today, AWS is promoting its earnings coverage on IRET; touching on GLPI. Get our free coverage by signing up to:
http://www.activewallst.com/registration-3/?symbol=IRET
http://www.activewallst.com/registration-3/?symbol=GLPI
Earnings Reviewed
For the three months ended October 31, 2016, Investors Real Estate Trust reported total revenue of $50.6 million, up 9.2% from Q2 FY17. The company's revenue numbers surpassed analyst estimate of revenue of $49.2 million.
For Q2 FY17, Investors Real Estate Trust posted net income available to shareholders of $8.7 million compared to net income of $13.8 million for Q2 FY16. The decline in net income was primarily attributed to gains on sales recorded in the comparable year earlier quarter. The Company reported FFO of $16.5 million, or $0.12 per share and unit, for Q2 FY17 compared to $8.1 million, or $0.06 per share and unit, for the prior year's comparable period. The increase in FFO per share was primarily due to the loss on extinguishment of debt and default interest that was recognized in Q2 FY16. The Company's FFO matched Wall Street's expectations of $0.12 per share.
NOI Improves
During Q2 FY17, Investors Real Estate Trust's net operating income (NOI) from all properties increased by $2.6 million, or 10.0%, compared to the same period one year ago. The Company's non-same-store properties, provided for an increase in NOI of $3.1 million while same-store NOI decreased by approximately $486,000 for Q2 FY17 compared to the year ago period.
Investors Real Estate Trust's multifamily (including non-same-store) NOI increased by approximately $2.7 million, or 15.0%, for Q2 FY17 compared to the same period one year ago. The Company's operating margins of same-store multifamily NOI to gross revenues, fell 35 basis points on a y-o-y basis to 56.42% for Q2 FY17 compared to the same period in the prior fiscal year.
Key Financial Metrics
Acquisition: During Q2 FY17, Investors Real Estate Trust acquired the remaining 41.41% minority interest in the joint venture entity that owns the Red 20 multifamily property for a purchase price totaling $4.9 million.
Development Project in Progress: Investors Real Estate Trust is developing Monticello Crossings, which is a 202 unit, $31.8 million multifamily development project in Monticello, Minnesota. As of October 31, 2016, 65.9% of the units are leased or committed. Construction is expected to be completed in the Q4 FY17.
Disposition: During Q2 FY17, Investors Real Estate Trust disposed eight senior housing properties and one parcel of unimproved land in Idaho for a sale price of $43.9 million. Additionally, the company announced that it has entered into six separate sales agreements for the planned disposition of 26 of its senior housing properties, and one multifamily property, for a total of approximately $236.0 million. The company expects these sales to close in calendar year 2017.
Liquidity: At October 31, 2016, Investors Real Estate Trust had $68.7 million cash on hand and $52.5 million available on its line of credit, which matures September 01, 2017.
Quarterly Distributions
On October 03, 2016, Investors Real Estate Trust paid a quarterly distribution of $0.13 per common share and unit of the Company's properties. The Company also paid on September 30, 2016, a quarterly distribution of $0.5156 per share on its Series A preferred shares and a quarterly distribution of $0.4968 per share on its Series B preferred shares.
Investors Real Estate Trust's Board of Trustees declared quarterly distributions in the aggregate amount of $0.13 per share/unit, payable on January 17, 2017 to common shareholders and unit-holders of record at the close of business on January 03, 2017. The distributions consist of a regular quarterly distribution of $0.07 per share/unit and a special distribution of $0.06 per share/unit associated with capital gains from property disposition transactions.
Additionally, the Board of Trustees declared a distribution of $0.496875 per share on the 7.95% Series B Cumulative Redeemable Preferred Shares (NYSE: IRET PRB), payable on January 02, 2017 to holders of record at the close of business on December 23, 2016.
Share Repurchase Authorization
In a separate press release on December 07, 2016, the Company's Board of Trustees authorized a share repurchase program of up to $50 million worth of its common shares and/or Series B preferred shares over a one-year period.
Outlook
For FY17, Investors Real Estate Trust's management revised estimates of FFO to a range of $0.48 to $0.52 per share/unit from the previous range of $0.48 to $0.54 per share/unit. The change in the outlook reflects the company's view of current market conditions, and its assumption of same-store multifamily NOI negative growth of (1.0)% to (3.0)%, which was earlier expected to grow 2.0% to 4.0%.
Stock Performance
Investors Real Estate Trust's share price finished yesterday's trading session at $6.96, rising 2.96%. A total volume of 1.07 million shares exchanged hands, which was higher than the 3 months average volume of 691.00 thousand shares. The stock has advanced 20.83% and 12.74% in the last three months and past six months, respectively. The stock has a dividend yield of 4.02% and currently has a market cap of $843.23 million.
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SOURCE: Active Wall Street