Extra Space Cuts 1Q Guidance

Extra Space said it now expects first-quarter funds from operations of 24 cents or 25 cents per share, down from its previous estimate of 26 cents or 27 cents per share.

Analysts polled by Thomson Financial expect FFO of 27 cents per share for the quarter.

FFO, which the real estate industry uses to gauge operating performance, adds depreciation and amortization expenses, as well as other non-operating items, back to net income.

Extra Space said the liquidation represents a loss of $2.6 million, $1.4 million of which will be reflected in the first quarter.

The company said it's taking legal action to recover the loss from the broker-dealer from whom it originally bought the securities.

For the full year, Extra Space said it still expects to post FFO of $1.17 to $1.21 per share.

Analysts, on average, expect FFO of $1.19 per share for the year.

Extra space shares fell 50 cents, or 3.1 percent, to close at $15.85.