Company: EGP
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000049600-25-000065
Chunk: 136

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 2
Chunk 136
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%6.29 % 

The Company’s fixed rate interest expense decreased by $1,702,000 for the three months ended March 31, 2025, as compared to the same period in 2024, primarily as a result of the unsecured debt activity described below.

The following table presents the details of unsecured debt repayments during the three months ended March 31, 2025 and the year ended December 31, 2024:

UNSECURED DEBT REPAID IN 2024 AND 2025Interest RateDate RepaidPayoff Amount(In thousands)$50 Million Senior Unsecured Term Loan4.08%08/30/2024$50,000 $60 Million Senior Unsecured Notes3.46%12/13/202460,000 $60 Million Senior Unsecured Notes3.48%12/15/202460,000 $50 Million Senior Unsecured Term Loan1.58%03/18/202550,000 Weighted Average Effectively Fixed Interest Rate and Total Payoff                 Amount for 2024 and 20253.18%$220,000 

-31-

In January 2025, the Company 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