PS Business Parks, Inc. late Monday said its profit and funds from operations fell in the first quarter, primarily due to a decrease in rental rates and the repurchase of preferred equity.

After the markets closed, the Glendale real estate investment trust reported net income of $11.7 million (48 cents per share), compared with $32.6 million ($1.59) a year earlier.

FFO, a performance measure for REITs that removes the profit-reducing effect of depreciation, fell to 89 cent per share compared with $2.40 a year earlier. Revenues dropped nearly 3 percent to $67.3 million.

On average, analysts polled by Thomson Reuters expected the company to report FFO of 97 cents per share on revenues of $67.3 million.

Shares were down 92 cents, or 1.5 percent in Tuesday midday trading on the New York Stock Exchange.