SANTA MONICA, Calif., Nov. 1, 2019 /PRNewswire/ -- Douglas Emmett, Inc. (DEI), a real estate investment trust (REIT), announced today that it has refinanced a $360 million loan previously scheduled to mature in June 2023. The new secured, non-recourse $400 million interest-only loan will mature in November 2026 and bears interest at Libor plus 1.15%. Douglas Emmett secured interest rate swaps that effectively fix the rate at 2.18% per annum through July 2021 and then at 2.31% per annum through October 2024.
Since May, Douglas Emmett has refinanced approximately $2 billion in debt. The new debt has added almost five years to the term and reduced the current interest rate by nearly 35 basis points to 2.63%. As previously announced, balance sheet activities completed in the third quarter reduced 2019 FFO by approximately $.04 per share due to one-time noncash and cash loan costs as well as equity dilution. Fourth quarter FFO will be reduced by approximately $.01 per share from loan costs associated with the refinancing announced today. This brings the reduction in 2019 FFO from strategic balance sheet activities to approximately $.05 per share.
Douglas Emmett has no remaining loan maturities before 2023, has fixed all of its floating rate debt, and has increased its pool of unencumbered properties available for future financings to 40% of its office portfolio. Douglas Emmett does not anticipate any further refinancing activity in 2019 but will continue to monitor interest rates and spreads into 2020 for further opportunities.
About Douglas Emmett, Inc.
Douglas Emmett, Inc. (DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in the premier coastal submarkets of Los Angeles and Honolulu. Douglas Emmett focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. For more information about Douglas Emmett, please visit our website at www.douglasemmett.com.
Safe Harbor Statement
Except as disclosed, Douglas Emmett's guidance does not include the impact of future property acquisitions or dispositions, financings, or other possible capital markets activities or impairment charges. Except for the historical facts, the statements in this press release regarding Douglas Emmett's business activities are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and we claim the protection of the safe harbor contained in the Private Securities Litigation Reform Act of 1995. Forward-looking statements presented in this press release, and those that we may make orally or in writing from time to time, are based on our beliefs and assumptions. Our actual results will be affected by known and unknown risks, trends, uncertainties and factors, some of which are beyond our control or ability to predict, including, but not limited to: adverse economic and real estate developments in Southern California and Honolulu; a general downturn in the economy; decreased rental rates or increased tenant incentives and vacancy rates; defaults on, and early terminations and non-renewal of, leases by tenants; increased interest rates and operating costs; failure to generate sufficient cash flows to service our debt; difficulties in acquiring properties; failure to successfully operate properties; failure to maintain our status as a REIT; possible adverse changes in rent control laws and regulations; environmental uncertainties; risks related to natural disasters; lack of or insufficient insurance; inability to successfully expand into new markets or submarkets; risks associated with property development; conflicts of interest with our officers; changes in real estate and zoning laws and increases in real property tax rates; possible future terrorist attacks; and other risks and uncertainties detailed in our Annual Report on Form 10-K and other documents filed with the SEC. Although we believe that our assumptions underlying our forward looking statements are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, our actual future results can be expected to differ from our expectations, and those differences may be material. Accordingly, please use caution in relying on any forward-looking statements in this press release or any previously reported forward-looking statements to anticipate future results or trends. This press release and all subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to release publicly any revisions to our forward-looking statements.
Stuart McElhinney, Vice President – Investor Relations