Alexandria Real Estate Equities Inc. on Thursday said it had an improved fourth quarter due to higher rental revenue and lower operating costs, but projected 2010 performance would be a little below analysts’ expectations.

The Pasadena real estate investment trust, which specializes in life science properties, reported net income of $21.7 million (49 cents per share), compared with $19.2 million (60 cents) a year earlier. (The REIT issued stock during the year, so its per-share earnings fell.) Revenue fell 8 percent to less than $115 million.

Funds from operations, an industry performance metric, were $54.3 million ($1.09), compared with $47.2 million ($1.48) a year earlier.

Analysts surveyed by Thomson Reuters on average expected the REIT to report FFO of $1.08 per share on revenue of $115 million.

Health care industry landlords generally have fared better during the recession than general office REITS. Alexandria’s properties are 94 percent leased, it said, with rents on new or renewal leases an average of 1.5 percent higher than expiring ones.

Even so, the company expects full-year FFO of $4.42 per share, while analysts on average expected $4.46.

Shares were down $1, or 1.7 percent, to $56.34 in midday trading on the New York Stock Exchange.