Florida East Coast Industries Inc. reported a 10 percent increase in revenue from its Florida East Coast Railway LLC rail division and a 67 percent decrease in real estate sales at its Flagler Development Co. subsidiary in the first quarter of 2004.

Although total first-quarter 2004 revenues fell to $71.6 million from $75.8 million in 2003, net income at the company overall for the same period was up 20 percent.

Flagler reported real estate sales of $5 million in the first quarter compared to $14.9 million in the first quarter of 2003.

Citing expectations of continued economic recovery in Florida and nationwide, FECI revised its outlook for the full year 2004, raising expectations for its railway segment and revenue and operating profit growth "to upper single digits from low single digits."

Despite the decrease in realty sales, Flagler reported a 3 percent increase in occupancy rates at its properties over first quarter 2003 and an 8.5 percent increase in revenue from real estate services, from $15.8 million in the first quarter of 2003 to $17.2 million in the first quarter of 2004.