Irvine Apartments Takes 2nd-Quarter Charge
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Irvine Apartment Communities Inc. said a plan to refinance some of its debt will result in a charge of $42 million, or 94 cents a share, for the second quarter but will increase the company’s annual funds from operations.
The Newport Beach real estate investment trust said Thursday that its unsecured tax-exempt debt offer was priced at $334 million, with an average interest rate of 4.93%. The company plans to use the proceeds from the offer to refinance existing tax-exempt mortgage debt.
Irvine Apartments said the refinancing will lower the interest rate of its total debt to 5.75% from 6.17%. The transaction will also increase annual funds from operations per share by 4 cents a year, the company said.
Analysts estimated that Irvine Apartments would earn 55 cents a share for the second quarter, according to a First Call survey. For the second quarter ended June 30, 1997, the company earned $6.8 million, or 34 cents a share.
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