Downey Expects Gains

NEWPORT BEACH — Downey Financial Corp. said Monday it expects to report a gain of $2.5 million, or 10 cents a share, in the first quarter of 1997, resulting from the sale of four joint venture retail shopping centers.

Financial terms of the cash sale by Downey’s DSL Service unit were not disclosed. Analysts estimated first-quarter earnings for the company of 37 cents a share. Downey reported net income of $10.6 million, or 62 cents a share, in the first quarter of 1996, after a $4.5-million gain.

Downey Financial, the holding company for Downey Savings & Loan Service, said the shopping center transaction will reduce the company’s investment in DSL Service by $11 million and free up capital to support future growth.