Equity One posts rise in funds from operations

NORTH MIAMI BEACH, Fla. - Shopping-center owner Equity One Inc. said Tuesday its third-quarter funds from operations slightly beat Wall Street expectations, though the company swung to a net loss and occupancy dropped.

Excluding a charge, funds from operations from the quarter rose to $22.9 million, or 31 cents per share, up slightly from $22.2 million, or 30 cents per share, in the year-earlier period. Analysts surveyed by Thomson Reuters, on average, expected FFO of 30 cents per share.

FFO, a widely used gauge of real estate operating performance, adds depreciation and amortization expenses, as well as other items, to net income.

The company posted a net loss of $21.4 million, or 29 cents per share, in the quarter, compared with net income of $10.7 million, or 14 cents per share, a year earlier.

During the quarter, Equity One took a $32.7 million charge to write down the value of an investment in DIM Vastgoed N.V., a Dutch company that invests in shopping centers in the U.S.

As of Sept. 30, Equity One's total occupancy was 92.3 percent, down 1.1 percentage points from a year earlier.

The company also lowered its guidance to FFO of $1.35 to $1.37 per share for the year ending Dec. 31, down from earlier FFO guidance of $1.36 to $1.40 per share.

Revenue fell 8 percent to $56.7 million from $61.6 million. Analysts had expected revenue of $59.6 million.

Shares declined 3 cents to $16.99 in regular trading.

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