(RTTNews) - Real estate investment trust CapLease, Inc. (LSE: News ) reported Wednesday a profit in the second quarter, despite a fall in revenues, mainly reflecting a gain on extinguishment of debt. Funds from operations or FFO increased from the prior year. The company also reiterated its previous outlook for the full year.

For the second quarter, net income allocable to common stockholders was $5.95 million or $0.12 per share, compared with a net loss of $1.24 million or $0.03 per share in the previous year. Funds From Operations or FFO increased to $19.29 million or $0.40 a share from $12.19 million or $0.27 a share. The results of the latest quarter included $6.59 million of gain on extinguishment of debt.

Excluding items, FFO rose to $13.28 million or $0.28 per share from $12.00 million or $0.27 per share in the year-ago quarter.

On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.33 per share in the second quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter dipped to $44.56 million from $45.63 million, as rental revenue increased marginally to $33.89 million from $33.87 million. Interest income from loans and securities decreased to $7.83 million from $8.69 million, while property expense recoveries came down to $2.69 million from $2.84 million in the comparable quarter of fiscal 2008. Analysts were expecting revenue of $47.11 million in the second quarter.

For the the first six-month period, net income allocable to common stockholders was $1.31 million or $0.03 per share, compared to loss of $3.79 million or $0.09 per share in fiscal 2008. FFO increased to $28.10 million or $0.59 a share from $23.05 million or $0.51 a share. Adjusted FFO was $26.52 million or $0.55 per share compared with $24.92 million or $0.56 per share.
Revenues for the six-month period decreased to $89.80 million from $91.62 million in the same period last year.

Looking ahead to the full year, CapLease reaffirmed its earlier guidance, expecting FFO to range from $0.91 to $0.96 per share and loss to range between $0.16 and $0.11 per share.

Analysts currently forecast earnings of $0.94 per share on revenue of 178.69 million for fiscal 2009.

LSE is currently trading at $3.28, down $0.04 or 1.23%, on the NYSE.

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by RTT Staff Writer

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