Company: EGP
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000049600-25-000065
Chunk: 109

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 8
Chunk 109
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ization is included in Depreciation and amortization expense.  Capitalized leasing costs for the three months ended March 31, 2025 and 2024 were as follows:

  Three Months EndedMarch 31, Estimated Useful Life20252024  (In thousands)Development and value-addLease term$2,087 1,991 New tenantsLease term4,414 4,051 Renewal tenantsLease term4,068 2,523 Total capitalized leasing costs (1) $10,569 8,565 Amortization of leasing costs $6,994 6,038 

(1)Reconciliation of Total capitalized leasing costs to Leasing commissions on the Consolidated Statements of Cash Flows:

 Three Months Ended March 31,20252024(In thousands)Total capitalized leasing costs$10,569 8,565 Change in leasing commissions payables516 (2,270)Leasing commissions on the Consolidated Statements of Cash Flows$11,085 6,295 

LIQUIDITY AND CAPITAL RESOURCES

The Company anticipates that its current cash balance, operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt and/or proceeds from the issuance of equity instruments will be adequate for (i) operating and administrative expenses, (ii) normal repair and maintenance expenses at its properties, (iii) debt service obligations, (iv) maintaining compliance with its debt covenants, (v) distributions to stockholders, (vi) capital improvements, (vii) purchases of properties, (viii) development, and (ix) any other normal business activities of the Company, both in the short-term and long-term. The Company expects liquidity sources and needs in the coming year to be consistent in nature with those for the three months ended March 31, 2025.

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 believes its current operating cash flow and unsecured bank credit facilities provide the capacity to fund the operations of the Company.  The Company also believes it can obtain debt financing and issue common and/or preferred equity.  

For future debt issuances, the Company intends to issue primarily unsecured fixed-rate debt, including variable-rate debt that has been swapped