Sunstone Hotel Investors Inc.

The San Clemente real estate investment trust reported net income of $607,000, or 2 cents a share, for the second quarter, down from $5.8 million, or 15 cents a share, a year ago. Funds from operations dropped 13% to $13.6 million, or 33 cents a share, from $15.6 million, or 38 cents a share. Revenue rose 2% to $25.4 million.

The acquisition of Sunstone by SHP Acquisition LLC is expected to close during the fourth quarter.