Company: EGP
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0000049600-25-000109
Chunk: 65

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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OUNCEMENTS

See Note 21 in the Notes to Consolidated Financial Statements. 

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

The Company is exposed to interest rate changes primarily as a result of its unsecured bank credit facilities and long-term debt maturities.  This debt is used to maintain liquidity and fund capital expenditures and expansion of the Company’s real estate investment portfolio and operations.  The Company’s objective for interest rate risk management is to limit the impact of interest rate changes on earnings and cash flows and to lower its overall borrowing costs.  The Company has two variable rate unsecured bank credit facilities as discussed under Liquidity and Capital Resources.  As market conditions permit, EastGroup issues equity and/or employs fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace the short-term bank borrowings.  The Company’s interest rate swaps are discussed in Note 14 in the Notes to Consolidated Financial Statements.  

The table below presents the principal payments due and weighted average interest rates, which include the impact of interest rate swaps, for both the fixed-rate and variable-rate debt as of September 30, 2025.

 October – December 20252026202720282029ThereafterTotalFair ValueUnsecured bank credit facilities — Variable rate (in thousands)$— — — 45,000(1)— — 45,00045,111 (2)   Weighted average interest rate— — — 5.00%(3)— — 5.00% Unsecured debt — Fixed rate        (in thousands)$75,000 140,000175,000160,000155,000735,0001,440,0001,368,579 (4)   Weighted average interest rate3.98%2.56%2.74%3.10%3.88%3.57%3.37% 

(1)The variable-rate unsecured bank credit facilities mature in July 2028 and, as of September 30, 2025, the $625,000,000 unsecured bank credit facility has a balance of $45,000,000, and the $50,000,000 unsecured bank credit facility has no outstanding balance. These balances fluctuate based on Company operations and capital activity, as discussed in Liquidity and Capital