Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 268

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 7
Chunk 268
---
460,000    Weighted Average Effectively Fixed Interest Rate and Total Payoff               Amount for 2023 and 20243.37%$285,000 

29

In September 2023, the Company refinanced a $100,000,000 senior unsecured term loan, reducing the effectively fixed interest rate by approximately 45 basis points.  

The decrease in interest expense from unsecured debt was partially offset by new unsecured debt obtained during the year ended December 31, 2023:

NEW UNSECURED DEBT IN 2023MarginEffectively Fixed Interest RateDate ObtainedMaturity DateAmount(In thousands)$100 Million Senior Unsecured Term Loan (1)1.35%5.27%01/13/202301/13/2030$100,000 

(1)  The interest rate on this unsecured term loan is comprised of Term Secured Overnight Financing Rate (“SOFR”) plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings. The Company entered into an interest rate swap agreement (further described in Note 12 in the Notes to Consolidated Financial Statements) to convert the loan’s Term SOFR rate to an effectively fixed interest rate. The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swap, as of December 31, 2024.  

During 2024, EastGroup did not enter into or refinance any unsecured debt agreements.  

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 by $3,588,000 for 2024 as compared to 2023, due to changes in development activity and spending.

Real Estate Improvements

Real estate improvements for EastGroup’s operating properties for the years ended December 31, 2024 and 2023 were as follows:

 Estimated Useful LifeYears Ended December 31,20242023 (In thousands)Upgrade on acquisitions                                               40 years$1,435 1,892 Tenant improvements:     New tenants                                               Lease Term18,540 16,352    Renewal tenants                                                Lease Term2,964 3,503 Other:     Building improvements