Irvine Apartment’s Net Income Up 25%

NEWPORT BEACH — Irvine Apartment Communities, taking advantage of strong apartment rental markets, reported that fourth-quarter net income grew 25% on a 19% increase in revenue.

“A thriving economy and accelerating job growth in California throughout 1997 produced the strongest rental market we’ve seen since the company’s initial public offering four years ago,” said William H. McFarland, president and chief executive officer of the real estate investment trust.

Net income for the three months rose to $7 million, or 35 cents a share, from $5.6 million, or 30 cents a share. Revenue increased to $50.1 million from $42 million.

Net income for 1997 rose 41% to $26.4 million, or $1.33 a share, from $18.7 million, or $1.05 a share, for 1996. Revenue was up 18% to $186.9 million from $158.7 million.

Within Irvine Apartment’s existing portfolio--properties owned and stabilized more than two years--net operating income rose 6.1% in 1997 to $94.6 million from $89.2 million in 1996. The increase was largely the result of a 6.2% increase in average rental rates, partially offset by a decrease in average occupancy. Average monthly rent per unit rose to $1,078 in 1997 from $1,015 in the prior year. Physical occupancy averaged 94.6% versus 95.0% a year ago.