JACKSON,
Miss., Dec. 30, 2024 /PRNewswire/ -- EastGroup
Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or
"EastGroup") announced today its recent business activity.
In November, EastGroup acquired DFW Global Logistics Centre 5-8,
four multi-tenant business distribution buildings totaling 492,000
square feet, for approximately $76,000,000. These buildings, which are 100%
leased to 13 tenants, are located adjacent to the Company's DFW
Global Logistics Centre 1-4 buildings near the Dallas-Fort Worth
Airport. This acquisition increased the Company's ownership of
properties in the DFW Airport submarket to approximately 2,679,000
square feet, which is currently 99.3% leased.
In December, the Company acquired Akimel Gateway, which contains
four industrial buildings totaling 519,000 square feet in
Southeast Phoenix, for
approximately $83,000,000. This
property was developed in 2022 and is 100% leased to four tenants.
This acquisition increased the Company's ownership of operating
properties in Phoenix to
approximately 3,518,000 square feet, which is currently 98.6%
leased.
Commenting on the Company's activity, Marshall Loeb, CEO, stated, "We are happy to end
the year with two newer, fully leased, state of the art properties
located within existing submarkets. This clustering of assets
allows us greater flexibility to accommodate our tenants' growth
needs long term."
During the fourth quarter of 2024 to date, EastGroup sold
914,780 shares of common stock directly through its sales agents
under its continuous common equity offering program at a weighted
average price of $174.23 per share,
providing aggregate net proceeds to the Company of approximately
$158,000,000.
In addition, during the fourth quarter of 2024 to date,
EastGroup entered into forward equity sale agreements with respect
to 690,953 shares of common stock with an initial weighted
average forward price of $175.05 per
share and approximate gross sales proceeds of $121,000,000, based on the initial forward price.
The Company did not receive any proceeds from the sale of common
shares by the forward purchasers at the time it entered into
forward equity sale agreements. Also, during the fourth 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 1,704,863 shares of
common stock in exchange for net proceeds of approximately
$305,517,000.
About EastGroup Properties, Inc.
EastGroup, a member of the S&P Mid-Cap 400 and Russell 2000
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 63.1 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" or 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 or strategies 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; 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 recent
inflationary environment; disruption in supply and delivery
chains; increased construction and development costs; acquisition
and development risks, including failure of such acquisitions and
development projects to perform in accordance with our projections
or to materialize at all; 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; natural disasters such as
fires, floods, tornadoes, hurricanes and earthquakes; pandemics,
epidemics or other public health emergencies, such as the
coronavirus pandemic; the availability of financing and capital,
increases in interest rates, and our 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, including security breaches through
cyber attacks; 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
