JACKSON,
Miss., Nov. 9, 2023 /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, "Our portfolio
remains highly leased and resilient in a volatile environment. This
dynamic climate is continuing to provide attractive investments.
One such opportunity allowed our expansion into Nashville, another fast-growing Sunbelt
market. We're pleased with the quality of the buildings and our
ability to push rents to market as leases mature in time."
In November, EastGroup acquired Park at Myatt in Nashville, Tennessee, which represents the
Company's first acquisition in this market. With a population
exceeding 2 million and an industrial market of 215 million square
feet, Nashville has been a target
market for EastGroup. High barriers to entry and limited shallow
bay industrial product further increase the appeal of the market.
Developed in 2022, the property contains two buildings totaling
171,000 square feet and is 100% leased. Park at Myatt was
acquired for approximately $31,000,000 and is located in the Northeast/I-65N
Corridor submarket.
As of November 8, 2023,
EastGroup's portfolio was 98.4% leased and 98.2% occupied. Rental
rates on new and renewal leases signed during fourth quarter to
date increased an average of 74% on a straight-line basis and 50%
on a cash basis.
During the fourth quarter of 2023 to date, EastGroup sold
257,592 shares of common stock under its continuous common equity
offering program at a weighted average price of $169.21 per share, providing aggregate gross
proceeds to the Company of approximately $43,588,000. Year to date, the Company has sold
2,982,613 shares at a weighted average price of $170.28 per share, providing aggregate gross
proceeds to the Company of approximately $507,893,000. During October, the Company's
continuous common equity offering program was modified to add the
ability to enter into forward equity sale agreements with certain
financial institutions acting as forward purchasers whereby, at our
discretion, the forward purchasers may borrow and sell shares of
our common stock. The use of a forward equity sale agreement
provides the ability to lock in a share price on the sale of shares
of our common stock but defer settling the forward equity sale
agreements and receiving the proceeds from the sale of shares until
a later date.
Management is scheduled to participate in Nareit's REITworld:
2023 Annual Conference in Los
Angeles November 14-15, 2023.
Conference registration is available at www.reit.com. 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. 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 59.1 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" 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 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