Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 97

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 1
Chunk 97
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 of December 31, 2024.

During 2024, EastGroup increased its holdings in real estate properties through its acquisition and development programs.  The Company acquired 2,474,000 square feet of operating properties and 61.1 acres of land for a total of $403,773,000.  Also during 2024, the Company began construction of 10 development projects containing 1,585,000 square feet and transferred seven projects, which contain 1,519,000 square feet and had costs of $199,971,000 at the date of transfer, from its development and value-add program to real estate properties.     

During 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market, containing 159,000 square feet and disposed of 5.4 acres of land in two markets, generating gross sales proceeds of $18,311,000.

In the near term, the Company funds its development and acquisition programs through its $675,000,000 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 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 short-term bank borrowings.  Moody’s Investors Service has assigned EastGroup an issuer rating of Baa2 with a stable outlook.  A security rating is not a recommendation to buy, sell, or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating.  For future debt issuances, the Company intends to issue primarily unsecured fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps.  The Company may also access the public debt market in the future as a means to raise capital.

EastGroup plans to hold its properties as long-term investments but may determine to sell certain properties that no longer meet its investment criteria.  The Company may provide financing to a prospective purchaser in connection with such sales of property if market conditions require.  In addition, the Company may provide financing to a partner or co-owner in connection with an acquisition of real estate in certain situations.

Subject to the requirements necessary to maintain EastGroup’s qualifications as a REIT, the Company may acquire securities