Maguire posts drop in funds from operations

Maguire Properties Inc., a Los Angeles-based real estate investment trust, said funds from operations for the third quarter were $21.1 million, or 44 cents a share, compared with $24.1 million, or 55 cents, a year earlier. That fell short of the 48 cents a share estimated by analysts.

Funds from operations in the latest quarter were affected by a $3.8-million noncash loss from early extinguishment of debt related to the refinancing of the Gas Company Tower mortgage and repayment of $165 million of the term loan, Maguire said. Excluding that, funds from operations would have been 51 cents a share.

Funds from operations, or FFO, is a measure used by real estate investment trusts to define their operating performance. FFO is calculated by adding depreciation and amortization expenses to earnings. This gives an idea of the REIT’s cash performance, which is a better measure of the REIT’s performance than earnings, which often include large noncash items.

-- Bill Sing