JACKSON,
Miss., Nov. 14, 2024 /PRNewswire/ -- EastGroup
Properties, Inc. (NYSE: EGP) (the "Company", "we", "us" or
"EastGroup") announced today its recent business activity.
In November, EastGroup acquired Riverpoint Industrial Park,
which contains three industrial buildings totaling 779,000 square
feet in Atlanta, for approximately
$88,000,000. This property was
developed in 2020 and is 100% leased to six tenants. This
acquisition increased the Company's ownership of operating
properties in Atlanta to
approximately 2,246,000 square feet, which is currently 98.1%
leased.
Also, in November, EastGroup is scheduled to close on a property
containing four industrial buildings, which are currently 100%
leased in the Dallas market, for
approximately $77,000,000.
As previously announced, during October, the Company acquired
approximately 26 acres of development land, known as Station 24
Commerce Center Land, in the Nashville market for approximately
$10,100,000. The site is expected to
accommodate the future development of four buildings totaling
approximately 350,000 square feet.
As of November 13, 2024,
EastGroup's portfolio was 96.3% leased and 95.7% occupied. During
the fourth quarter of 2024 to date, 1,208,000 square feet of new
and renewal leases were signed with rental rate increases averaging
53.1% on a straight-line basis and 30.9% on a cash basis.
In Charlotte, Conn's Inc. rejected their lease of 300,000 square
feet effective October 31, 2024, as
part of the Chapter 11 bankruptcy proceedings. They were
current on rent as of the termination date. The space is
divisible and their rent was approximately 20% below market.
During the fourth quarter of 2024 to date, EastGroup sold
876,709 shares of common stock directly through its sales agents
under its continuous common equity offering program at a weighted
average price of $174.22 per share,
providing aggregate net proceeds to the Company of approximately
$151,000,000. In addition, during the
fourth quarter of 2024 to date, EastGroup entered into forward
equity sale agreements with respect to 642,740 shares of
common stock with an initial weighted average forward price of
$175.12 per share and approximate
gross sales proceeds of $113,000,000,
based on the initial forward price.
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. We are excited to add new high-quality investments in
Atlanta and Dallas to the portfolio. Looking ahead, we are
excited to see the market environment being created by the rapid
decline in the industrial construction pipeline. To take advantage
of the potential opportunities and keep raising our portfolio
quality, we continue increasing the strength and flexibility of our
balance sheet."
Management is scheduled to participate in Nareit's REITworld:
2024 Annual Conference in Las
Vegas, November 18-21, 2024.
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. Presentation materials that may be
referenced during the EastGroup presentations 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 61.3 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