NORTH MIAMI BEACH-Shopping center REIT Equity One Inc. is revising its projected funds from operations for the third quarter to 34 to 36 cents per diluted share. The company had previously projected funds from operations to be 40 to 43 cents per diluted share.

The adjustment to prior estimates is due to several circumstances, including a $2.8-million gain that will not be recognized in the third quarter due to the unwillingness of the buyer to close on a land sale, a $1.2-million write-off in the third quarter of deferred expenses related to a series of abandoned transactions, incremental costs of $800,000 and $1.3 million in the third and fourth quarters respectively due the previously announced hiring of a new chief executive officer and associated management changes, $1 million in costs related to delays in the completion of certain development and redevelopment projects and $1 million in costs related to lease-up delays. Equity One executive vice president and CFO Howard Sipzner tells GlobeSt.com that some of the conditions related to the revised projections are due to softening market conditions, while others are related to one-time circumstances. "It's really somewhat of a coincidence of many circumstances hitting all at once," Sipzner says.

The company is also adjusting funds from operations per diluted share for the full year from a previously projected $1.65 to $1.72 per share to a revised $1.54 to $1.58 per share.

Last month, the company announced that Jeffrey Olson will join the company as CEO and president. The company also announced that COO and president Doron Valero was leaving the company and current CEO Chaim Katzman will serve as chairman of the board after Olson starts with Equity. Olson was supposed to start Jan. 1, but instead started Sept. 5, which resulted in unanticipated costs, Sipzner says.