JACKSON,
Miss., May 30, 2024 /PRNewswire/ -- EastGroup
Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or
"EastGroup") announced today its recent business activity.
Commenting on the Company's activity, Marshall Loeb, CEO, stated, "We continue to be
pleased by the resiliency of the Sunbelt, shallow bay industrial
market. The trends we saw during the first quarter are carrying
over to date. Meanwhile, given the volatility and uncertainty in
the capital markets, we continue to opportunistically improve the
strength and flexibility of our balance sheet, which allows us to
take advantage of any market opportunities that arise."
In May, EastGroup acquired a 275,000 square foot newly
constructed industrial property in Raleigh for approximately $54,000,000. This property, which is 100% leased
to three tenants, represents the Company's entry into the
Raleigh-Durham market, which has
been a target market for EastGroup for several years due to its
population growth, diversified economic base, and prominent
universities.
As of May 30, 2024, EastGroup's
portfolio was 97.7% leased and 97.0% occupied. During the second
quarter of 2024 to date, 1,232,000 square feet of new and renewal
leases were signed with rental rate increases averaging 69.6% on a
straight-line basis and 49.0% on a cash basis.
During the second quarter of 2024 to date, the Company settled
outstanding forward equity sale agreements that were previously
entered into under its continuous common equity offering program by
issuing 420,370 shares of common stock in exchange for net proceeds
of approximately $76,000,000.
In addition, during the second quarter of 2024 to date,
EastGroup entered into forward equity sale agreements with respect
to 135,662 shares of common stock with an approximate gross total
of $23,000,000. These shares of
common stock are available for settlement until May 2025.
Management is scheduled to present at Nareit's REITweek: 2024
Investor Conference on Wednesday, June 5,
2024, at 2:00 p.m. Eastern
Time. The presentation will be broadcast live and is
accessible through the registration link on the Company's website
at www.eastgroup.net. An online replay of the webcast will be
available at the same location. During the conference, 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. Presentation
materials that may be referenced during the EastGroup presentation
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 60 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," "plans" and variations
of such words and 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 or 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;
how and when pending forward equity sales may settle; 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.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/eastgroup-properties-announces-recent-business-activity-and-presentation-at-nareits-reitweek-302160010.html
SOURCE EastGroup Properties