Vereit Inc (NYSE:VER) felt the wrath of the Street after posting lower than expected revenues for the second quarter. The phoenix based real estate investment trust posted revenues of $311.4 million for the three months ending June 30, below Wall Street projections of $323.3 million. Revenue was down by $28.7 million in the quarter compared to the same period last year.
Q2 Earnings Report
Net loss because of a decrease in revenue increased by $3.2 million to $111.9 million compared to a net loss of $108.7 million posted the same period last year. During the quarter, the real estate investment trust paid down $225 million on its revolving line of credit. Its debt under the credit line facility now stands at $55 million.
As of the end of the second quarter, Vereit says its portfolio consisted of 4,291 properties, boasting of a total portfolio occupancy of 97.7%. The investment grade tenancy stood at 42.7% with a weighted remaining lease term of 10.2 years. During the quarter, the company sold 87 properties generating $175.4 million in the process at an average cash cap rate of 7.1%. The gain on sales in the quarter compared to the same quarter last year was $13.5 million.
CEO, Glenn J Rufrano has reiterated his belief in the company’s long-term prospects even failing to beat Wall Street expectations on the revenue front. The executive sentiments are based on the fact that sales have soared to more than $2 billion over the past one year, total debt holdings having reduced by $3 billion in the process.
Vereit Inc (NYSE:VER) has already redeemed its $1.3 billion debt due in February next year having tapped into the capital market with a $1 billion bond offer.
Amidst the turmoil on the earnings front, Vereit says its board of director has approved a $0.1375 per share dividend to be paid in the third quarter. The dividend is to be paid on October 17, 2016, to shareholders of record as of September 30, 2016.