Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 153

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 3
Chunk 153
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 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 the heading Liquidity and Capital Resources in Part II, Item 7 of this Annual Report on Form 10-K.  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 12 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 December 31, 2024.

 20252026202720282029ThereafterTotalFair ValueUnsecured bank credit facilities — variable rate (in thousands)$— — — — (1)— — — — (2)  Weighted average     interest rate— — — 5.28%(3)— — 5.28% Unsecured debt — fixed     rate (in thousands) $145,000 140,000 175,000 160,000 155,000 735,000 1,510,000 1,403,754 (4)Weighted average interest rate3.13%2.56%2.74%3.10%3.88%3.61%3.34% 

(1)The variable rate unsecured bank credit facilities mature in July 2028, and as of December 31, 2024, the Company had no borrowings on both the $625,000,000 unsecured bank credit facility and the $50,000,000 unsecured bank credit facility.  These balances fluctuate based on Company operations and capital activity, as discussed in Liquidity and Capital Resources.

(2)The fair value of the Company’s variable rate debt is estimated by discounting expected cash flows at current market rates, excluding the effects of debt issuance costs.  

(3