UPDATE 1-CapitalSource Q2 profit falls on lower interest income

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Tue Aug 5, 2008 7:48am EDT

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Aug 5 (Reuters) - Real estate investment trust CapitalSource Inc (CSE.N) posted a lower second-quarter profit, but met analysts' estimates, as interest income fell 18 percent and the provision for loan losses rose.

Net income fell to $60.1 million, or 25 cents per share, from $84.3 million, or 45 cents per share, last year.

Adjusted earnings fell to $29.1 million, or 12 cents per share, from $128.4 million, or 68 cents per share.

Analysts expected the Chevy Chase, Maryland-based company to earn 12 cents a share, according to Reuters Estimates.

Interest income fell $57.0 million to $254.2 million for the quarter.

Provision for loan losses rose to $31.7 million from $17.4 million in the year-ago quarter.

Net investment income fell to $159.6 million from $178.1 million last year.

Shares of the company closed at $11.18 Monday on the New York Stock Exchange. (Reporting by Amiteshwar Singh in Bangalore; Editing by Bernard Orr)

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