PS Business Parks Inc. said its earnings and revenue increased in the first quarter due to increasing rental revenue as occupancy rates declined. The Glendale real estate investment trust reported net income of $25 million (35 cents a share) in the quarter ended March 31, compared to $21.8 million (14 cents) in the same period a year earlier. Revenue rose 4.1 percent to $88.1 million. The company also reported funds from operations of $1.20 a share, up from $1.17 a year earlier. The figure fell short of the $1.22 average estimate of two analysts polled by Thomson/First Call. FFO is a key REIT metric that adds amortization and depreciation expenses back into net income to get a better picture of cash flow. PS Business Parks develops and operates multi-tenant flex, office and industrial properties. At the end of December, the company owned 28.3 million rentable square feet in eight states. On March 14, the company issued 4.4 million additional preferred shares. The company used the proceeds to reduce a $90 million loan. In midday trading, shares were up $1.51 or 2 percent to $83.30 on the Nasdaq.