Irvine Co.’s New REIT Stock Drops After Big Board Debut

In its first day of trading, stock in Irvine Co.’s new real estate investment trust declined slightly.

In Wednesday’s New York Stock Exchange trading, Irvine Apartment Communities Inc. fell 25 cents a share to close at $17.25. Trading in the REIT stock was heavy, as is typical in the early days of trading for a newly public company.

The new issue was popular with individual investors in California, especially in Los Angeles, said Richard Moran, chief financial officer for Irvine Apartment Communities. Institutional demand from around the world was also strong, especially from pension and mutual funds, he said. He would not be more specific.

The REIT, which is composed of 43 Orange County apartment properties, had hoped to sell shares for between $19.50 and $21.50 each, but a recent decline in the REIT market and concern about Southern California real estate pushed the initial price down.