JACKSON,
Miss., Sept. 7, 2023 /PRNewswire/
-- EastGroup Properties, Inc. (NYSE: EGP) (the
"Company" or "EastGroup") announced today its recent business
activity.
Commenting on the Company's activity, Marshall Loeb, CEO, stated, "We continue to be
pleased by both the strength and resiliency of the Sunbelt, shallow
bay industrial market. Operationally it's been a positive, steady
year in an unsteady capital markets environment. Given the
volatility in the capital markets, we continue to opportunistically
improve the strength and flexibility of our balance sheet. This
strength allows us to make strategic investments such as the ones
detailed below."
In September, EastGroup acquired Blue Diamond Business Park,
which contains two recently developed buildings totaling 255,000
square feet, for approximately $53,000,000. The buildings are located in the
Southwest submarket of Las Vegas
and are 100% leased. This acquisition increased the Company's
ownership in Las Vegas to
approximately 1,165,000 square feet, which is currently 100%
leased.
Also during September, the Company closed on the acquisition of
Crossroad Logistics Land for approximately $15,000,000. The parcel is comprised of 44 acres
of development land at the intersection of I-4 and I-75 in
East Tampa. This site will
accommodate the future development of three buildings containing
approximately 500,000 square feet.
During the third quarter of 2023 to date, EastGroup began
construction of two development projects located in Atlanta and Charlotte which will contain
approximately 430,000 square feet and have projected total costs of
$51,500,000.
As of August 31, 2023, EastGroup's
portfolio was 98.1% leased and 97.7% occupied. Rental rates on new
and renewal leases signed during third quarter to date increased an
average of 56.1% on a straight-line basis and 40.1% on a cash
basis.
During the third quarter of 2023 to date, EastGroup sold 759,650
shares of common stock under its continuous common equity offering
program at a weighted average price of $177.71 per share, providing aggregate gross
proceeds to the Company of approximately $134,996,000. Year to date, the Company has
sold 2,553,253 shares at a weighted average price of $170.10 per share, providing aggregate gross
proceeds to the Company of approximately $434,306,000.
Management is scheduled to participate in two upcoming
conferences:
- The 15th Annual Evercore ISI Real Estate Conference
on Friday, September 8, 2023
- Bank of America Securities 2023 Global Real Estate Conference
scheduled for Tuesday, September 12,
2023 through Wednesday, September 13,
2023
During the conferences, EastGroup executives may discuss the
Company's transaction activity, leasing environment, market trends
and conditions, financial matters and other business that may be
affecting the Company. EastGroup's presentation materials that may
be referenced during the conferences are available on the "Investor
Relations" page of the Company's website.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 1000
Indexes, is a self-administered equity real estate investment trust
focused on the development, acquisition and operation of industrial
properties in major Sunbelt markets throughout the United States with an emphasis in the
states of Florida, Texas, Arizona, California and North
Carolina. The Company's goal is to maximize shareholder
value by being a leading provider in its markets of functional,
flexible and quality business distribution space for location
sensitive customers (primarily in the 20,000 to 100,000 square foot
range). The Company's strategy for growth is based on ownership of
premier distribution facilities generally clustered near major
transportation features in supply-constrained submarkets.
EastGroup's portfolio, including development projects and value-add
acquisitions in lease-up and under construction, currently includes
approximately 58.2 million square feet.
EastGroup Properties, Inc. press releases are available at
www.eastgroup.net.
Forward-Looking Information
The statements and certain other information contained herein,
which can be identified by the use of forward-looking terminology
such as "may," "will," "seek," "expects," "anticipates,"
"believes," "targets," "intends," "should," "estimates," "could,"
"continue," "assume," "projects," "goals" or "plans" and variations
of such words or similar expressions or the negative of such words,
constitute "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended, and are
subject to the safe harbors created thereby. These forward-looking
statements reflect the Company's current views about its plans,
intentions, expectations, strategies and prospects, which are based
on the information currently available to the Company and on
assumptions it has made. Although the Company believes that its
plans, intentions, expectations, strategies and prospects as
reflected in or suggested by those forward-looking statements are
reasonable, the Company can give no assurance that such plans,
intentions, expectations, strategies and prospects will be attained
or achieved. Furthermore, these forward-looking statements should
be considered as subject to the many risks and uncertainties that
exist in the Company's operations and business environment. Such
risks and uncertainties could cause actual results to differ
materially from those projected. These uncertainties include, but
are not limited to: international, national, regional and local
economic conditions; disruption in supply and delivery chains;
construction costs could increase as a result of inflation
impacting the costs to develop properties; the competitive
environment in which the Company operates; fluctuations of
occupancy or rental rates; potential defaults (including
bankruptcies or insolvency) on or non-renewal of leases by tenants,
or our ability to lease space at current or anticipated rents,
particularly in light of the impacts of inflation; potential
changes in the law or governmental regulations and interpretations
of those laws and regulations, including changes in real estate
laws or real estate investment trust ("REIT") or corporate income
tax laws, potential changes in zoning laws, or increases in real
property tax rates, and any related increased cost of compliance;
our ability to maintain our qualification as a REIT; acquisition
and development risks, including failure of such acquisitions and
development projects to perform in accordance with projections;
natural disasters such as fires, floods, tornadoes, hurricanes and
earthquakes; pandemics, epidemics or other public health
emergencies, such as the coronavirus pandemic; availability of
financing and capital, increase in interest rates, and ability to
raise equity capital on attractive terms; financing risks,
including the risks that our cash flows from operations may be
insufficient to meet required payments of principal and interest,
and we may be unable to refinance our existing debt upon maturity
or obtain new financing on attractive terms or at all; our
ability to retain our credit agency ratings; our ability to comply
with applicable financial covenants; credit risk in the event of
non-performance by the counterparties to our interest rate swaps;
lack of or insufficient amounts of insurance; litigation, including
costs associated with prosecuting or defending claims and any
adverse outcomes; our ability to attract and retain key personnel;
risks related to the failure, inadequacy or interruption of our
data security systems and processes; potentially catastrophic
events such as acts of war, civil unrest and terrorism; and
environmental liabilities, including costs, fines or penalties that
may be incurred due to necessary remediation of contamination of
properties presently owned or previously owned by us. All
forward-looking statements should be read in light of the risks
identified in Part I, Item 1A. Risk Factors within the Company's
most recent Annual Report on Form 10-K, as such factors may be
updated from time to time in the Company's periodic filings and
current reports filed with the SEC. The Company assumes no
obligation to update publicly any forward-looking statements,
whether as a result of new information, future events or
otherwise.
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SOURCE EastGroup Properties