U.S. REIT Unwinds Swaps
Duke Realty, an Indianapolis-based Real Estate Investment Trust (REIT), has unwound two interest-rate swaps, totaling USD150 million, 30 days prior to their maturity. Gene Zink, cfo in Indianapolis, said the six-month trades were entered into at the beginning of the year as an interest rate hedge in anticipation of issuing a bond in the summer. The REIT then decided against the debt offering.
The swaps entailed two fixed-to-floating rate exchanges, said Zink declining to specify the exact rates the REIT paid and received. Banc of America Securities and JPMorgan were the swap counterparties.