EastGroup Properties Announces Recent Business Activity and Participation in Upcoming Conferences
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.
