Company: EGP
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000049600-25-000065
Chunk: 108

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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 refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%. The loan, which previously had five years remaining, now has a three-year maturity with two one-year extension options, at the Company's election.

EastGroup did not obtain any unsecured debt during 2024 or during the first three months of 2025.  EastGroup’s financing and debt maturities are further described in Liquidity and Capital Resources.

Interest costs during the period of construction of real estate properties are capitalized and offset against interest expense. Capitalized interest increased $307,000 during the three months ended March 31, 2025, as compared to the same period of 2024, due to changes in development activity and spending.

Real Estate Improvements

Real estate improvements for EastGroup’s operating properties for the three months ended March 31, 2025 and 2024 were as follows:

  Three Months EndedMarch 31, Estimated Useful Life20252024  (In thousands)Upgrade on acquisitions40 years$52 37 Tenant improvements:  New tenants                                            Lease term5,507 2,337 Renewal tenants                                            Lease term1,411 835 Other:   Building improvements5-40 years5,532 3,075 Roofs                                            5-15 years5,793 3,810 Parking lots                                            3-5 years800 759 Other                                            5 years1,158 838 Total real estate improvements (1) $20,253 11,691 

(1)Reconciliation of Total real estate improvements to Real estate improvements on the Consolidated Statements of Cash Flows:

 Three Months Ended March 31,20252024(In thousands)Total real estate improvements$20,253 11,691 Change in real estate property payables(1,356)(649)Change in construction in progress898 3,787 Real estate improvements on the Consolidated Statements of Cash Flows$19,795 14,829 

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Capitalized Leasing Costs

The Company’s leasing costs (principally commissions) are capitalized and included in Other assets. The costs are amortized over the terms of the associated leases, and the amort