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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Eastgroup Properties Inc | NYSE:EGP | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-1.28 | -0.80% | 158.58 | 160.78 | 157.62 | 160.78 | 186,831 | 22:10:13 |
MARYLAND
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13-2711135
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(State or other jurisdiction
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(I.R.S. Employer
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of incorporation or organization)
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Identification No.)
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190 EAST CAPITOL STREET
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SUITE 400
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JACKSON, MISSISSIPPI
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39201
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(Address of principal executive offices)
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(Zip code)
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Registrant’s telephone number: (601) 354-3555
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Large Accelerated Filer (x)
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Accelerated Filer ( )
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Non-accelerated Filer ( )
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(Do not check if a smaller reporting company)
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Smaller Reporting Company ( )
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Emerging Growth Company ( )
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Page
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Common Stock
|
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Additional
Paid-In Capital
|
|
Distributions in Excess of Earnings
|
|
Accumulated Other Comprehensive Income
|
|
Noncontrolling Interest in Joint Ventures
|
|
Total
|
|||||||
BALANCE, DECEMBER 31, 2016
|
$
|
3
|
|
|
949,318
|
|
|
(313,655
|
)
|
|
1,995
|
|
|
4,205
|
|
|
641,866
|
|
Net income
|
—
|
|
|
—
|
|
|
65,593
|
|
|
—
|
|
|
329
|
|
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65,922
|
|
|
Net unrealized change in fair value of cash flow hedges
|
—
|
|
|
—
|
|
|
—
|
|
|
650
|
|
|
—
|
|
|
650
|
|
|
Common dividends declared – $1.88 per share
|
—
|
|
|
—
|
|
|
(64,330
|
)
|
|
—
|
|
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—
|
|
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(64,330
|
)
|
|
Stock-based compensation, net of forfeitures
|
—
|
|
|
5,653
|
|
|
—
|
|
|
—
|
|
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—
|
|
|
5,653
|
|
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Issuance of 1,037,605 shares of common stock, common stock offering, net of expenses
|
—
|
|
|
78,956
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78,956
|
|
|
Issuance of 2,097 shares of common stock, dividend reinvestment plan
|
—
|
|
|
170
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
170
|
|
|
Withheld 33,695 shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock
|
—
|
|
|
(2,505
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)
|
|
—
|
|
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—
|
|
|
—
|
|
|
(2,505
|
)
|
|
Distributions to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
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(308
|
)
|
|
(308
|
)
|
|
Contributions from noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
100
|
|
|
100
|
|
|
BALANCE, SEPTEMBER 30, 2017
|
$
|
3
|
|
|
1,031,592
|
|
|
(312,392
|
)
|
|
2,645
|
|
|
4,326
|
|
|
726,174
|
|
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Nine Months Ended September 30,
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|||||
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2017
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2016
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|||
OPERATING ACTIVITIES
|
|
|
|
|||
Net income
|
$
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65,922
|
|
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80,723
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
|
|
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Depreciation and amortization
|
62,101
|
|
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57,756
|
|
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Stock-based compensation expense
|
4,266
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|
|
3,959
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|
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Gain, net of loss, on sales of real estate investments and non-operating real estate
|
(21,815
|
)
|
|
(43,046
|
)
|
|
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
Accrued income and other assets
|
881
|
|
|
2,061
|
|
|
Accounts payable, accrued expenses and prepaid rent
|
10,586
|
|
|
5,221
|
|
|
Other
|
765
|
|
|
278
|
|
|
NET CASH PROVIDED BY OPERATING ACTIVITIES
|
122,706
|
|
|
106,952
|
|
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INVESTING ACTIVITIES
|
|
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|
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Real estate development
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(80,462
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)
|
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(94,781
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)
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Purchases of real estate
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(36,739
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)
|
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(24,955
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)
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Real estate improvements
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(18,378
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)
|
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(17,591
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)
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Net proceeds from sales of real estate investments and non-operating real estate
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39,934
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|
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77,298
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|
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Repayments on mortgage loans receivable
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96
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|
|
91
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|
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Changes in accrued development costs
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2,032
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|
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7,469
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|
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Changes in other assets and other liabilities
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(11,240
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)
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(11,588
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)
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NET CASH USED IN INVESTING ACTIVITIES
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(104,757
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)
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(64,057
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)
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FINANCING ACTIVITIES
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Proceeds from unsecured bank credit facilities
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281,342
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|
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444,314
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|
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Repayments on unsecured bank credit facilities
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(255,988
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)
|
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(388,569
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)
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Proceeds from unsecured debt
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—
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|
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105,000
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|
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Repayments on unsecured debt
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—
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|
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(80,000
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)
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Repayments on secured debt
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(55,478
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)
|
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(89,295
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)
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Debt issuance costs
|
(129
|
)
|
|
(1,165
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)
|
|
Distributions paid to stockholders (not including dividends accrued on unvested restricted stock)
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(64,623
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)
|
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(60,418
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)
|
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Proceeds from common stock offerings
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78,956
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|
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29,643
|
|
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Proceeds from dividend reinvestment plan
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170
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|
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179
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|
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Other
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(2,711
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)
|
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(2,599
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)
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NET CASH USED IN FINANCING ACTIVITIES
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(18,461
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)
|
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(42,910
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)
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DECREASE IN CASH AND CASH EQUIVALENTS
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(512
|
)
|
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(15
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)
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CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
522
|
|
|
48
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|
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CASH AND CASH EQUIVALENTS AT END OF PERIOD
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$
|
10
|
|
|
33
|
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SUPPLEMENTAL CASH FLOW INFORMATION
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Cash paid for interest, net of amount capitalized of $4,242 and $3,737
for 2017 and 2016, respectively |
$
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24,978
|
|
|
25,977
|
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(1)
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BASIS OF PRESENTATION
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(2)
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PRINCIPLES OF CONSOLIDATION
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(3)
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USE OF ESTIMATES
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(4)
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REAL ESTATE PROPERTIES
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
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(In thousands)
|
|||||
Real estate properties:
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|
|
|
|||
Land
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$
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341,141
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|
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308,931
|
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Buildings and building improvements
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1,569,982
|
|
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1,435,309
|
|
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Tenant and other improvements
|
394,894
|
|
|
368,833
|
|
|
Development
|
204,197
|
|
|
293,908
|
|
|
|
2,510,214
|
|
|
2,406,981
|
|
|
Less accumulated depreciation
|
(732,566
|
)
|
|
(694,250
|
)
|
|
|
$
|
1,777,648
|
|
|
1,712,731
|
|
(5)
|
DEVELOPMENT
|
(6)
|
REAL ESTATE PROPERTY ACQUISITIONS AND ACQUIRED INTANGIBLES
|
(7)
|
REAL ESTATE SOLD AND HELD FOR SALE/DISCONTINUED OPERATIONS
|
(8)
|
OTHER ASSETS
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Leasing costs (principally commissions)
|
$
|
70,322
|
|
|
65,521
|
|
Accumulated amortization of leasing costs
|
(26,266
|
)
|
|
(26,340
|
)
|
|
Leasing costs (principally commissions), net of accumulated amortization
|
44,056
|
|
|
39,181
|
|
|
|
|
|
|
|||
Straight-line rents receivable
|
30,739
|
|
|
28,369
|
|
|
Allowance for doubtful accounts on straight-line rents receivable
|
(158
|
)
|
|
(76
|
)
|
|
Straight-line rents receivable, net of allowance for doubtful accounts
|
30,581
|
|
|
28,293
|
|
|
|
|
|
|
|||
Accounts receivable
|
3,907
|
|
|
6,824
|
|
|
Allowance for doubtful accounts on accounts receivable
|
(566
|
)
|
|
(809
|
)
|
|
Accounts receivable, net of allowance for doubtful accounts
|
3,341
|
|
|
6,015
|
|
|
|
|
|
|
|||
Acquired in-place lease intangibles
|
21,814
|
|
|
21,231
|
|
|
Accumulated amortization of acquired in-place lease intangibles
|
(9,664
|
)
|
|
(8,642
|
)
|
|
Acquired in-place lease intangibles, net of accumulated amortization
|
12,150
|
|
|
12,589
|
|
|
|
|
|
|
|||
Acquired above market lease intangibles
|
1,549
|
|
|
1,594
|
|
|
Accumulated amortization of acquired above market lease intangibles
|
(738
|
)
|
|
(736
|
)
|
|
Acquired above market lease intangibles, net of accumulated amortization
|
811
|
|
|
858
|
|
|
|
|
|
|
|||
Mortgage loans receivable
|
4,656
|
|
|
4,752
|
|
|
Interest rate swap assets
|
4,183
|
|
|
4,546
|
|
|
Goodwill
|
990
|
|
|
990
|
|
|
Prepaid expenses and other assets
|
7,731
|
|
|
7,606
|
|
|
Total
Other assets
|
$
|
108,499
|
|
|
104,830
|
|
(9)
|
DEBT
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Unsecured bank credit facilities - variable rate, carrying amount
|
$
|
137,374
|
|
|
112,020
|
|
Unsecured bank credit facilities - fixed rate, carrying amount
(1)
|
80,000
|
|
|
80,000
|
|
|
Unamortized debt issuance costs
|
(731
|
)
|
|
(1,030
|
)
|
|
Unsecured bank credit facilities
|
216,643
|
|
|
190,990
|
|
|
|
|
|
|
|||
Unsecured debt - fixed rate, carrying amount
(1)
|
655,000
|
|
|
655,000
|
|
|
Unamortized debt issuance costs
|
(1,822
|
)
|
|
(2,162
|
)
|
|
Unsecured debt
|
653,178
|
|
|
652,838
|
|
|
|
|
|
|
|||
Secured debt - fixed rate, carrying amount
(1)
|
203,093
|
|
|
258,594
|
|
|
Unamortized debt issuance costs
|
(915
|
)
|
|
(1,089
|
)
|
|
Secured debt
|
202,178
|
|
|
257,505
|
|
|
|
|
|
|
|||
Total debt
|
$
|
1,071,999
|
|
|
1,101,333
|
|
(1)
|
These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps.
|
Years Ending December 31,
|
|
(In thousands)
|
||
Remainder of 2017
|
|
$
|
2,736
|
|
2018
|
|
61,316
|
|
|
2019
|
|
130,569
|
|
|
2020
|
|
114,096
|
|
|
2021
|
|
129,563
|
|
|
2022 and beyond
|
|
419,813
|
|
|
Total
|
|
$
|
858,093
|
|
(10)
|
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Property taxes payable
|
$
|
31,408
|
|
|
14,186
|
|
Development costs payable
|
11,876
|
|
|
9,844
|
|
|
Property capital expenditures payable
|
3,924
|
|
|
2,304
|
|
|
Interest payable
|
4,329
|
|
|
3,822
|
|
|
Dividends payable on unvested restricted stock
|
1,237
|
|
|
1,530
|
|
|
Book overdraft
(1)
|
7,565
|
|
|
14,452
|
|
|
Other payables and accrued expenses
|
6,491
|
|
|
6,563
|
|
|
Total
Accounts payable and accrued expenses
|
$
|
66,830
|
|
|
52,701
|
|
(11)
|
OTHER LIABILITIES
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Security deposits
|
$
|
16,361
|
|
|
14,782
|
|
Prepaid rent and other deferred income
|
8,702
|
|
|
9,795
|
|
|
|
|
|
|
|||
Acquired below-market lease intangibles
|
4,071
|
|
|
4,012
|
|
|
Accumulated amortization of below-market lease intangibles
|
(1,968
|
)
|
|
(1,662
|
)
|
|
Acquired below-market lease intangibles, net of accumulated amortization
|
2,103
|
|
|
2,350
|
|
|
|
|
|
|
|||
Interest rate swap liabilities
|
1,552
|
|
|
2,578
|
|
|
Prepaid tenant improvement reimbursements
|
256
|
|
|
343
|
|
|
Other liabilities
|
16
|
|
|
16
|
|
|
Total
Other liabilities
|
$
|
28,990
|
|
|
29,864
|
|
(12)
|
COMPREHENSIVE INCOME
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS):
|
|
|
|
|||||||||
Balance at beginning of period
|
$
|
2,421
|
|
|
(12,315
|
)
|
|
1,995
|
|
|
(3,456
|
)
|
Change in fair value of interest rate swaps - cash flow hedges
|
224
|
|
|
2,606
|
|
|
650
|
|
|
(6,253
|
)
|
|
Balance at end of period
|
$
|
2,645
|
|
|
(9,709
|
)
|
|
2,645
|
|
|
(9,709
|
)
|
(13)
|
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
|
Interest Rate Derivative
|
|
Notional Amount as of September 30, 2017
|
|
Notional Amount as of December 31, 2016
|
|
|
(In thousands)
|
||
Interest Rate Swap
|
|
$80,000
|
|
$80,000
|
Interest Rate Swap
|
|
$75,000
|
|
$75,000
|
Interest Rate Swap
|
|
$75,000
|
|
$75,000
|
Interest Rate Swap
|
|
$65,000
|
|
$65,000
|
Interest Rate Swap
|
|
$60,000
|
|
$60,000
|
Interest Rate Swap
|
|
$40,000
|
|
$40,000
|
Interest Rate Swap
|
|
$15,000
|
|
$15,000
|
|
Derivatives
As of September 30, 2017
|
|
Derivatives
As of December 31, 2016
|
||||||||
|
Balance Sheet Location
|
|
Fair Value
|
|
Balance Sheet Location
|
|
Fair Value
|
||||
|
(In thousands)
|
||||||||||
Derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
||||
Interest rate swap assets
|
Other assets
|
|
$
|
4,183
|
|
|
Other assets
|
|
$
|
4,546
|
|
Interest rate swap liabilities
|
Other liabilities
|
|
1,552
|
|
|
Other liabilities
|
|
2,578
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS
|
|
|
|
|
|
|
|
|||||
Interest Rate Swaps:
|
|
|
|
|
|
|
|
|||||
Amount of income (loss) recognized in
Other comprehensive income (loss)
on derivatives
|
$
|
(102
|
)
|
|
1,550
|
|
|
(996
|
)
|
|
(9,279
|
)
|
Amount of loss reclassified from
Accumulated other comprehensive income (loss)
into
Interest expense
|
326
|
|
|
1,056
|
|
|
1,646
|
|
|
3,026
|
|
(14)
|
EARNINGS PER SHARE
|
(15)
|
STOCK-BASED COMPENSATION
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||
Award Activity:
|
September 30, 2017
|
|
September 30, 2017
|
||||||||||
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
|
Shares
|
|
Weighted Average Grant Date Fair Value
|
||||||
Unvested at beginning of period
|
152,748
|
|
|
$
|
63.18
|
|
|
162,191
|
|
|
$
|
51.98
|
|
Granted
(1)
|
282
|
|
|
88.86
|
|
|
93,567
|
|
|
76.74
|
|
||
Forfeited
|
—
|
|
|
—
|
|
|
(16,000
|
)
|
|
36.98
|
|
||
Vested
|
—
|
|
|
—
|
|
|
(86,728
|
)
|
|
61.62
|
|
||
Unvested at end of period
|
153,030
|
|
|
$
|
63.22
|
|
|
153,030
|
|
|
$
|
63.22
|
|
(16)
|
FAIR VALUE OF FINANCIAL INSTRUMENTS
|
|
September 30, 2017
|
|
December 31, 2016
|
|||||||||
|
Carrying Amount
(1)
|
|
Fair Value
|
|
Carrying Amount
(1)
|
|
Fair Value
|
|||||
|
(In thousands)
|
|||||||||||
Financial Assets:
|
|
|
|
|
|
|
|
|||||
Cash and cash equivalents
|
$
|
10
|
|
|
10
|
|
|
522
|
|
|
522
|
|
Mortgage loans receivable
|
4,656
|
|
|
4,657
|
|
|
4,752
|
|
|
4,747
|
|
|
Interest rate swap assets
|
4,183
|
|
|
4,183
|
|
|
4,546
|
|
|
4,546
|
|
|
Financial Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured bank credit facilities - variable rate
(2)
|
137,374
|
|
|
137,380
|
|
|
112,020
|
|
|
111,923
|
|
|
Unsecured bank credit facilities - fixed rate
(2)
|
80,000
|
|
|
80,002
|
|
|
80,000
|
|
|
79,998
|
|
|
Unsecured debt
(2)
|
655,000
|
|
|
644,834
|
|
|
655,000
|
|
|
623,147
|
|
|
Secured debt
(2)
|
203,093
|
|
|
210,880
|
|
|
258,594
|
|
|
266,585
|
|
|
Interest rate swap liabilities
|
1,552
|
|
|
1,552
|
|
|
2,578
|
|
|
2,578
|
|
(17)
|
RISKS AND UNCERTAINTIES
|
(18)
|
RECENT ACCOUNTING PRONOUNCEMENTS
|
(19)
|
SUBSEQUENT EVENTS
|
ITEM 2.
|
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
Income from real estate operations
|
$
|
68,712
|
|
|
63,178
|
|
|
202,704
|
|
|
186,628
|
|
Expenses from real estate operations
|
(20,109
|
)
|
|
(18,552
|
)
|
|
(59,360
|
)
|
|
(54,130
|
)
|
|
Noncontrolling interest in PNOI of consolidated 80% joint ventures
|
(145
|
)
|
|
(190
|
)
|
|
(493
|
)
|
|
(618
|
)
|
|
PNOI from 50% owned unconsolidated investment
|
224
|
|
|
231
|
|
|
673
|
|
|
676
|
|
|
PROPERTY NET OPERATING INCOME (PNOI)
|
$
|
48,682
|
|
|
44,667
|
|
|
143,524
|
|
|
132,556
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands)
|
|||||||||||
NET INCOME
|
$
|
15,972
|
|
|
14,800
|
|
|
65,922
|
|
|
80,723
|
|
Gain on sales of real estate investments
|
—
|
|
|
—
|
|
|
(21,855
|
)
|
|
(42,313
|
)
|
|
(Gain) loss on sales of non-operating real estate
|
—
|
|
|
(590
|
)
|
|
40
|
|
|
(733
|
)
|
|
Interest income
|
(62
|
)
|
|
(63
|
)
|
|
(185
|
)
|
|
(191
|
)
|
|
Other income
|
(34
|
)
|
|
(12
|
)
|
|
(90
|
)
|
|
(68
|
)
|
|
Interest rate swap ineffectiveness
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
Depreciation and amortization
|
21,011
|
|
|
19,361
|
|
|
62,101
|
|
|
57,756
|
|
|
Company's share of depreciation from unconsolidated investment
|
31
|
|
|
31
|
|
|
93
|
|
|
93
|
|
|
Interest expense
|
8,704
|
|
|
8,841
|
|
|
26,405
|
|
|
27,078
|
|
|
General and administrative expense
|
3,205
|
|
|
2,328
|
|
|
11,586
|
|
|
10,663
|
|
|
Acquisition costs
|
—
|
|
|
161
|
|
|
—
|
|
|
161
|
|
|
Noncontrolling interest in PNOI of consolidated 80% joint ventures
|
(145
|
)
|
|
(190
|
)
|
|
(493
|
)
|
|
(618
|
)
|
|
PROPERTY NET OPERATING INCOME
|
$
|
48,682
|
|
|
44,667
|
|
|
143,524
|
|
|
132,556
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
(In thousands, except per share data)
|
|||||||||||
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS
|
$
|
15,884
|
|
|
14,661
|
|
|
65,593
|
|
|
80,285
|
|
Depreciation and amortization
|
21,011
|
|
|
19,361
|
|
|
62,101
|
|
|
57,756
|
|
|
Company's share of depreciation from unconsolidated investment
|
31
|
|
|
31
|
|
|
93
|
|
|
93
|
|
|
Depreciation and amortization from noncontrolling interest
|
(56
|
)
|
|
(49
|
)
|
|
(160
|
)
|
|
(159
|
)
|
|
Gain on sales of real estate investments
|
—
|
|
|
—
|
|
|
(21,855
|
)
|
|
(42,313
|
)
|
|
FUNDS FROM OPERATIONS (FFO) ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
|
36,870
|
|
|
34,004
|
|
|
105,772
|
|
|
95,662
|
|
Net income attributable to common stockholders per diluted share
|
$
|
.46
|
|
|
.45
|
|
|
1.93
|
|
|
2.47
|
|
Funds from operations (FFO) attributable to common stockholders
per diluted share
|
$
|
1.08
|
|
|
1.04
|
|
|
3.12
|
|
|
2.94
|
|
Diluted shares for earnings per share and funds from operations
|
34,290
|
|
|
32,823
|
|
|
33,905
|
|
|
32,519
|
|
•
|
The FFO change per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year. FFO per share for the
third
quarter of
2017
was
$1.08
per share compared with
$1.04
per share for the same period of
2016
, an increase of 3.8%. For the
nine
months ended
September 30, 2017
, FFO was
$3.12
per share compared with
$2.94
per share for the same period of
2016
, an increase of 6.1%.
|
•
|
For the three months ended
September 30, 2017
, PNOI increased by $4,015,000, or 9.0%, compared to the same period in
2016
. PNOI increased $2,483,000 from newly developed and redeveloped properties, $1,342,000 from same property operations and $917,000 from 2016 and 2017 acquisitions; PNOI decreased $658,000 from operating properties sold in 2016 and 2017.
|
•
|
The same property net operating income change represents the PNOI increase or decrease for the same operating properties owned during the entire current period and prior year reporting period. PNOI from same properties increased 3.1% for the three months ended
September 30, 2017
, and increased 2.5% for the
nine
months ended
September 30, 2017
, compared to the same periods in
2016
.
|
•
|
Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current period and prior year reporting period. Same property average occupancy was 96.4% for the three months ended
September 30, 2017
, compared to 96.1% for the same period of
2016
. Same property average occupancy for the
nine
months ended
September 30, 2017
, was 96.6% compared to 96.3% for the same period of
2016
.
|
•
|
Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period. Occupancy at
September 30, 2017
, was 95.6%. Quarter-end occupancy ranged from 94.9% to 96.8% over the previous four quarters ended
September 30, 2016
to June 30, 2017.
|
•
|
Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space. Rental rate increases on new and renewal leases (4.6% of total square footage) averaged 20.9% for the
third
quarter of
2017
. For the
nine
months ended
September 30, 2017
, rental rate increases on new and renewal leases (17.6% of total square footage) averaged 17.1%.
|
•
|
Lease termination fee income is included in
Income from real estate operations.
Lease termination fee income for the
three and nine
months ended
September 30, 2017
was $65,000 and $198,000 respectively, compared to $316,000 and $754,000 for the same periods of
2016
.
|
•
|
Bad debt expense is included in
Expenses from real estate operations.
The Company recorded bad debt expense of $134,000 and $332,000 for the
three and nine
months ended
September 30, 2017
, respectively, compared to $306,000 and $764,000 for the same periods of 2016.
|
REAL ESTATE PROPERTIES ACQUIRED IN 2017
|
|
Location
|
|
Size
|
|
Date
Acquired
|
|
Cost
(1)
|
|||
|
|
|
|
(Square feet)
|
|
|
|
(In thousands)
|
|||
Shiloh 400
|
|
Atlanta, GA
|
|
238,000
|
|
|
02/07/2017
|
|
$
|
18,712
|
|
Broadmoor Commerce Park
|
|
Atlanta, GA
|
|
84,000
|
|
|
04/26/2017
|
|
5,363
|
|
|
Southpark Corporate Center 5-7
|
|
Austin, TX
|
|
99,000
|
|
|
05/12/2017
|
|
9,590
|
|
|
Total Acquisitions
|
|
|
|
421,000
|
|
|
|
|
$
|
33,665
|
|
(1)
|
Total cost of the properties acquired was
$36,475,000
, of which
$33,665,000
was allocated to Real estate properties as indicated above. The Company allocated
$5,700,000
of the total purchase price to land using third party land valuations for the Atlanta and Austin markets. The market values are considered to be Level 3 inputs as defined by ASC 820, Fair Value Measurement (see Note 16 in the Notes to Consolidated Financial Statements for additional information on ASC 820). Intangibles associated with the purchases of real estate were allocated as follows:
$3,016,000
to in-place lease intangibles and
$114,000
to above market leases (both included in Other assets on the Consolidated Balance Sheets), and
$320,000
to below market leases (included in Other liabilities on the Consolidated Balance Sheets).
|
|
|
|
Costs Incurred
|
|
|
|
Anticipated Building Conversion Date
|
||||||||||
DEVELOPMENT ACTIVITY
|
|
|
Costs Transferred in 2017
(1)
|
|
For the Nine Months Ended
9/30/2017
|
|
Cumulative as of 9/30/2017
|
|
Estimated Total Costs
|
|
|||||||
|
|
|
(In thousands)
|
|
|
||||||||||||
LEASE-UP
|
Building Size (Square feet)
|
|
|
|
|
|
|
|
|
|
|
||||||
Alamo Ridge IV, San Antonio, TX
|
97,000
|
|
|
$
|
—
|
|
|
1,073
|
|
|
6,018
|
|
|
6,600
|
|
|
03/18
|
Eisenhauer Point 3, San Antonio, TX
|
71,000
|
|
|
—
|
|
|
2,107
|
|
|
4,855
|
|
|
5,900
|
|
|
06/18
|
|
SunCoast 4, Ft. Myers, FL
|
93,000
|
|
|
—
|
|
|
2,390
|
|
|
8,645
|
|
|
9,100
|
|
|
06/18
|
|
Weston, Ft. Lauderdale, FL
(2)
|
134,000
|
|
|
—
|
|
|
1,009
|
|
|
15,290
|
|
|
15,900
|
|
|
07/18
|
|
Steele Creek VII, Charlotte, NC
|
120,000
|
|
|
2,393
|
|
|
5,195
|
|
|
7,588
|
|
|
8,600
|
|
|
09/18
|
|
Total Lease-Up
|
515,000
|
|
|
2,393
|
|
|
11,774
|
|
|
42,396
|
|
|
46,100
|
|
|
|
|
UNDER CONSTRUCTION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Country Club V, Tucson, AZ
|
300,000
|
|
|
—
|
|
|
4,098
|
|
|
7,393
|
|
|
24,200
|
|
|
03/18
|
|
Horizon XII, Orlando, FL
|
140,000
|
|
|
3,825
|
|
|
5,163
|
|
|
8,988
|
|
|
12,100
|
|
|
11/18
|
|
Oak Creek VII, Tampa, FL
|
116,000
|
|
|
2,153
|
|
|
3,725
|
|
|
5,878
|
|
|
7,200
|
|
|
11/18
|
|
Kyrene 202 III, IV & V, Phoenix, AZ
|
166,000
|
|
|
2,280
|
|
|
4,248
|
|
|
6,528
|
|
|
13,800
|
|
|
01/19
|
|
CreekView 121 3 & 4, Dallas, TX
|
158,000
|
|
|
3,701
|
|
|
3,458
|
|
|
7,159
|
|
|
14,200
|
|
|
02/19
|
|
Eisenhauer Point 5, San Antonio, TX
|
98,000
|
|
|
1,253
|
|
|
2,515
|
|
|
3,768
|
|
|
7,500
|
|
|
03/19
|
|
Eisenhauer Point 6, San Antonio, TX
|
85,000
|
|
|
878
|
|
|
1,750
|
|
|
2,628
|
|
|
5,200
|
|
|
03/19
|
|
Horizon X, Orlando, FL
|
104,000
|
|
|
2,101
|
|
|
168
|
|
|
2,269
|
|
|
8,000
|
|
|
04/19
|
|
Total Under Construction
|
1,167,000
|
|
|
16,191
|
|
|
25,125
|
|
|
44,611
|
|
|
92,200
|
|
|
|
|
PROSPECTIVE DEVELOPMENT (PRIMARILY LAND)
|
Estimated Building Size (Square feet)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Phoenix, AZ
|
96,000
|
|
|
(2,280
|
)
|
|
120
|
|
|
1,733
|
|
|
|
|
|
||
Tucson, AZ
(3)
|
—
|
|
|
—
|
|
|
(417
|
)
|
|
—
|
|
|
|
|
|
||
Ft. Myers, FL
|
570,000
|
|
|
—
|
|
|
361
|
|
|
14,004
|
|
|
|
|
|
||
Miami, FL
|
850,000
|
|
|
—
|
|
|
2,511
|
|
|
29,755
|
|
|
|
|
|
||
Orlando, FL
|
418,000
|
|
|
(5,926
|
)
|
|
791
|
|
|
10,994
|
|
|
|
|
|
||
Tampa, FL
|
32,000
|
|
|
(2,153
|
)
|
|
17
|
|
|
1,545
|
|
|
|
|
|
||
Atlanta, GA
|
107,000
|
|
|
—
|
|
|
675
|
|
|
675
|
|
|
|
|
|
||
Jackson, MS
|
28,000
|
|
|
—
|
|
|
—
|
|
|
706
|
|
|
|
|
|
||
Charlotte, NC
|
748,000
|
|
|
(2,393
|
)
|
|
1,357
|
|
|
8,267
|
|
|
|
|
|
||
Austin, TX
|
340,000
|
|
|
—
|
|
|
5,825
|
|
|
5,825
|
|
|
|
|
|
||
Dallas, TX
|
491,000
|
|
|
(3,701
|
)
|
|
538
|
|
|
9,159
|
|
|
|
|
|
||
El Paso, TX
|
251,000
|
|
|
—
|
|
|
—
|
|
|
2,444
|
|
|
|
|
|
||
Houston, TX
(4)
|
1,476,000
|
|
|
—
|
|
|
(227
|
)
|
|
21,147
|
|
|
|
|
|
||
San Antonio, TX
|
965,000
|
|
|
(2,131
|
)
|
|
7,128
|
|
|
10,936
|
|
|
|
|
|
||
Total Prospective Development
|
6,372,000
|
|
|
(18,584
|
)
|
|
18,679
|
|
|
117,190
|
|
|
|
|
|
|
|
|
8,054,000
|
|
|
$
|
—
|
|
|
55,578
|
|
|
204,197
|
|
|
|
|
|
|
DEVELOPMENTS COMPLETED AND TRANSFERRED TO REAL ESTATE PROPERTIES DURING 2017
|
Building Size (Square feet)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Building Conversion Date
|
||
Eisenhauer Point 1 & 2, San Antonio, TX
|
201,000
|
|
|
$
|
—
|
|
|
19
|
|
|
15,795
|
|
|
|
|
01/17
|
|
South 35th Avenue, Phoenix, AZ
(5)
|
125,000
|
|
|
—
|
|
|
—
|
|
|
1,664
|
|
|
|
|
01/17
|
||
Alamo Ridge III, San Antonio, TX
|
135,000
|
|
|
—
|
|
|
28
|
|
|
10,587
|
|
|
|
|
02/17
|
||
Parc North 1-4, Dallas, TX
(6)
|
446,000
|
|
|
—
|
|
|
132
|
|
|
32,252
|
|
|
|
|
02/17
|
||
Madison IV & V, Tampa, FL
|
145,000
|
|
|
—
|
|
|
549
|
|
|
8,074
|
|
|
|
|
03/17
|
||
Jones Corporate Park, Las Vegas, NV
(7)
|
416,000
|
|
|
—
|
|
|
275
|
|
|
39,815
|
|
|
|
|
04/17
|
||
Ten Sky Harbor, Phoenix, AZ
|
64,000
|
|
|
—
|
|
|
100
|
|
|
5,365
|
|
|
|
|
04/17
|
||
Steele Creek VI, Charlotte, NC
|
137,000
|
|
|
—
|
|
|
519
|
|
|
7,525
|
|
|
|
|
04/17
|
||
Horizon V, Orlando, FL
|
141,000
|
|
|
—
|
|
|
4,814
|
|
|
9,249
|
|
|
|
|
05/17
|
||
Horizon VII, Orlando, FL
|
109,000
|
|
|
—
|
|
|
1,375
|
|
|
8,266
|
|
|
|
|
06/17
|
||
Eisenhauer Point 4, San Antonio, TX
|
85,000
|
|
|
—
|
|
|
2,544
|
|
|
5,197
|
|
|
|
|
07/17
|
||
CreekView 121 1 & 2, Dallas, TX
|
193,000
|
|
|
—
|
|
|
4,464
|
|
|
16,319
|
|
|
|
|
08/17
|
||
Total Transferred to Real Estate Properties
|
2,197,000
|
|
|
$
|
—
|
|
|
14,819
|
|
|
160,108
|
|
|
(8)
|
|
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Leasing costs (principally commissions)
|
$
|
70,322
|
|
|
65,521
|
|
Accumulated amortization of leasing costs
|
(26,266
|
)
|
|
(26,340
|
)
|
|
Leasing costs (principally commissions), net of accumulated amortization
|
44,056
|
|
|
39,181
|
|
|
|
|
|
|
|||
Straight-line rents receivable
|
30,739
|
|
|
28,369
|
|
|
Allowance for doubtful accounts on straight-line rents receivable
|
(158
|
)
|
|
(76
|
)
|
|
Straight-line rents receivable, net of allowance for doubtful accounts
|
30,581
|
|
|
28,293
|
|
|
|
|
|
|
|||
Accounts receivable
|
3,907
|
|
|
6,824
|
|
|
Allowance for doubtful accounts on accounts receivable
|
(566
|
)
|
|
(809
|
)
|
|
Accounts receivable, net of allowance for doubtful accounts
|
3,341
|
|
|
6,015
|
|
|
|
|
|
|
|||
Acquired in-place lease intangibles
|
21,814
|
|
|
21,231
|
|
|
Accumulated amortization of acquired in-place lease intangibles
|
(9,664
|
)
|
|
(8,642
|
)
|
|
Acquired in-place lease intangibles, net of accumulated amortization
|
12,150
|
|
|
12,589
|
|
|
|
|
|
|
|||
Acquired above market lease intangibles
|
1,549
|
|
|
1,594
|
|
|
Accumulated amortization of acquired above market lease intangibles
|
(738
|
)
|
|
(736
|
)
|
|
Acquired above market lease intangibles, net of accumulated amortization
|
811
|
|
|
858
|
|
|
|
|
|
|
|||
Mortgage loans receivable
|
4,656
|
|
|
4,752
|
|
|
Interest rate swap assets
|
4,183
|
|
|
4,546
|
|
|
Goodwill
|
990
|
|
|
990
|
|
|
Prepaid expenses and other assets
|
7,731
|
|
|
7,606
|
|
|
Total
Other assets
|
$
|
108,499
|
|
|
104,830
|
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Property taxes payable
|
$
|
31,408
|
|
|
14,186
|
|
Development costs payable
|
11,876
|
|
|
9,844
|
|
|
Property capital expenditures payable
|
3,924
|
|
|
2,304
|
|
|
Interest payable
|
4,329
|
|
|
3,822
|
|
|
Dividends payable on unvested restricted stock
|
1,237
|
|
|
1,530
|
|
|
Book overdraft
(1)
|
7,565
|
|
|
14,452
|
|
|
Other payables and accrued expenses
|
6,491
|
|
|
6,563
|
|
|
Total
Accounts payable and accrued expenses
|
$
|
66,830
|
|
|
52,701
|
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Security deposits
|
$
|
16,361
|
|
|
14,782
|
|
Prepaid rent and other deferred income
|
8,702
|
|
|
9,795
|
|
|
|
|
|
|
|||
Acquired below-market lease intangibles
|
4,071
|
|
|
4,012
|
|
|
Accumulated amortization of below-market lease intangibles
|
(1,968
|
)
|
|
(1,662
|
)
|
|
Acquired below-market lease intangibles, net of accumulated amortization
|
2,103
|
|
|
2,350
|
|
|
|
|
|
|
|||
Interest rate swap liabilities
|
1,552
|
|
|
2,578
|
|
|
Prepaid tenant improvement reimbursements
|
256
|
|
|
343
|
|
|
Other liabilities
|
16
|
|
|
16
|
|
|
Total
Other liabilities
|
$
|
28,990
|
|
|
29,864
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||||||||
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|||||||
|
(In thousands)
|
|||||||||||||||||
VARIABLE RATE INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Unsecured bank credit facilities interest - variable rate
(excluding amortization of facility fees and debt issuance costs)
|
$
|
591
|
|
|
228
|
|
|
363
|
|
|
1,681
|
|
|
1,001
|
|
|
680
|
|
Amortization of facility fees - unsecured bank credit facilities
|
169
|
|
|
169
|
|
|
—
|
|
|
501
|
|
|
502
|
|
|
(1
|
)
|
|
Amortization of debt issuance costs - unsecured bank credit facilities
|
113
|
|
|
113
|
|
|
—
|
|
|
339
|
|
|
337
|
|
|
2
|
|
|
Total variable rate interest expense
|
873
|
|
|
510
|
|
|
363
|
|
|
2,521
|
|
|
1,840
|
|
|
681
|
|
|
FIXED RATE INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Unsecured bank credit facilities interest - fixed rate
(1)
(excluding amortization of facility fees and debt issuance costs)
|
407
|
|
|
208
|
|
|
199
|
|
|
1,208
|
|
|
208
|
|
|
1,000
|
|
|
Unsecured debt interest
(1)
(excluding amortization of debt issuance costs)
|
5,606
|
|
|
4,899
|
|
|
707
|
|
|
16,721
|
|
|
14,383
|
|
|
2,338
|
|
|
Secured debt interest
(excluding amortization of debt issuance costs)
|
2,904
|
|
|
4,158
|
|
|
(1,254
|
)
|
|
9,592
|
|
|
13,494
|
|
|
(3,902
|
)
|
|
Amortization of debt issuance costs - unsecured debt
|
119
|
|
|
336
|
|
|
(217
|
)
|
|
358
|
|
|
588
|
|
|
(230
|
)
|
|
Amortization of debt issuance costs - secured debt
|
79
|
|
|
114
|
|
|
(35
|
)
|
|
247
|
|
|
302
|
|
|
(55
|
)
|
|
Total fixed rate interest expense
|
9,115
|
|
|
9,715
|
|
|
(600
|
)
|
|
28,126
|
|
|
28,975
|
|
|
(849
|
)
|
|
Total interest
|
9,988
|
|
|
10,225
|
|
|
(237
|
)
|
|
30,647
|
|
|
30,815
|
|
|
(168
|
)
|
|
Less capitalized interest
|
(1,284
|
)
|
|
(1,384
|
)
|
|
100
|
|
|
(4,242
|
)
|
|
(3,737
|
)
|
|
(505
|
)
|
|
TOTAL INTEREST EXPENSE
|
$
|
8,704
|
|
|
8,841
|
|
|
(137
|
)
|
|
26,405
|
|
|
27,078
|
|
|
(673
|
)
|
(1)
|
Includes interest on the Company's unsecured bank credit facilities and unsecured debt with fixed interest rates per the debt agreements or effectively fixed interest rates due to interest rate swaps, as discussed in Note 13 in the Notes to Consolidated Financial Statements.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||||||||
|
2017
|
|
2016
|
|
Increase
(Decrease) |
|
2017
|
|
2016
|
|
Increase
(Decrease)
|
|||||||
|
(In thousands, except rates of interest)
|
|||||||||||||||||
Average borrowings on unsecured bank credit
facilities - variable rate
|
$
|
104,928
|
|
|
59,981
|
|
|
44,947
|
|
|
112,632
|
|
|
92,248
|
|
|
20,384
|
|
Weighted average variable interest rates
(excluding amortization of facility fees and debt issuance costs)
|
2.24
|
%
|
|
1.52
|
%
|
|
|
|
|
2.00
|
%
|
|
1.45
|
%
|
|
|
|
SECURED DEBT REPAID IN 2016 AND 2017
|
|
Interest Rate
|
|
Date Repaid
|
|
Payoff Amount
|
||
|
|
|
|
|
|
(In thousands)
|
||
Huntwood and Wiegman I
|
|
5.68%
|
|
08/05/2016
|
|
$
|
24,543
|
|
Alamo Downs, Arion 1-15 & 17, Rampart I-IV, Santan 10 I and
World Houston 16
|
|
5.97%
|
|
09/06/2016
|
|
51,194
|
|
|
Weighted Average/Total Amount for 2016
|
|
5.88%
|
|
|
|
$
|
75,737
|
|
Arion 16, Broadway VI, Chino, East University I & II, Northpark I-IV, Santan 10 II, 55th Avenue and World Houston 1 & 2, 21 & 23
|
|
5.57%
|
|
08/07/2017
|
|
45,069
|
|
|
Weighted Average/Total Amount for 2016 and 2017
|
|
5.76%
|
|
|
|
$
|
120,806
|
|
NEW UNSECURED DEBT IN 2016
|
|
Effective Interest Rate
|
|
Date Obtained
|
|
Maturity Date
|
|
Amount
|
||
|
|
|
|
|
|
|
|
(In thousands)
|
||
$65 Million Unsecured Term Loan
(1)
|
|
2.863%
|
|
04/01/2016
|
|
04/01/2023
|
|
$
|
65,000
|
|
$40 Million Unsecured Term Loan
(2)
|
|
2.335%
|
|
07/29/2016
|
|
07/30/2021
|
|
40,000
|
|
|
$60 Million Senior Unsecured Notes
|
|
3.480%
|
|
12/15/2016
|
|
12/15/2024
|
|
60,000
|
|
|
$40 Million Senior Unsecured Notes
|
|
3.750%
|
|
12/15/2016
|
|
12/15/2026
|
|
40,000
|
|
|
Weighted Average/Total Amount for 2016
|
|
3.114%
|
|
|
|
|
|
$
|
205,000
|
|
(1)
|
The interest rate on this unsecured term loan is comprised of LIBOR plus 165 basis points subject to a pricing grid for changes in the Company's coverage ratings. The Company entered into an interest rate swap to convert the loan's LIBOR rate to a fixed interest rate, providing the Company a weighted average effective interest rate on the term loan of 2.863% as of
September 30, 2017
. See Note 13 in the Notes to Consolidated Financial Statements for additional information on the interest rate swaps.
|
(2)
|
The interest rate on this unsecured term loan is comprised of LIBOR plus 110 basis points subject to a pricing grid for changes in the Company's coverage ratings. The Company entered into an interest rate swap to convert the loan's LIBOR rate to a fixed interest rate, providing the Company a weighted average effective interest rate on the term loan of 2.335% as of
September 30, 2017
. See Note 13 in the Notes to Consolidated Financial Statements for additional information on the interest rate swaps.
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||
|
Estimated Useful Life
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
|
|
(In thousands)
|
|||||||||||
Upgrade on Acquisitions
|
40 yrs
|
|
$
|
98
|
|
|
65
|
|
|
157
|
|
|
352
|
|
Tenant Improvements:
|
|
|
|
|
|
|
|
|
|
|
|
|||
New Tenants
|
Lease Life
|
|
2,906
|
|
|
3,470
|
|
|
8,189
|
|
|
7,379
|
|
|
Renewal Tenants
|
Lease Life
|
|
1,002
|
|
|
671
|
|
|
2,732
|
|
|
2,008
|
|
|
Other:
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Building Improvements
|
5-40 yrs
|
|
688
|
|
|
1,451
|
|
|
2,132
|
|
|
3,928
|
|
|
Roofs
|
5-15 yrs
|
|
1,209
|
|
|
680
|
|
|
3,421
|
|
|
2,512
|
|
|
Parking Lots
|
3-5 yrs
|
|
903
|
|
|
768
|
|
|
1,639
|
|
|
1,047
|
|
|
Other
|
5 yrs
|
|
696
|
|
|
273
|
|
|
933
|
|
|
606
|
|
|
Total Real Estate Improvements
(1)
|
|
|
$
|
7,502
|
|
|
7,378
|
|
|
19,203
|
|
|
17,832
|
|
(1)
|
Reconciliation of Total Real Estate Improvements to
Real estate improvements
on the Consolidated Statements of Cash Flows:
|
|
|
Nine Months Ended September 30,
|
|||||
|
2017
|
|
2016
|
||||
|
(In thousands)
|
||||||
Total Real Estate Improvements
|
|
$
|
19,203
|
|
|
17,832
|
|
Change in Real Estate Property Payables
|
|
(825
|
)
|
|
(241
|
)
|
|
Real Estate Improvements on the
Consolidated Statements of Cash Flows
|
|
$
|
18,378
|
|
|
17,591
|
|
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|||||||||
|
Estimated Useful Life
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|||||
|
|
|
(In thousands)
|
|||||||||||
Development
|
Lease Life
|
|
$
|
1,196
|
|
|
803
|
|
|
3,624
|
|
|
2,659
|
|
New Tenants
|
Lease Life
|
|
1,489
|
|
|
1,425
|
|
|
5,264
|
|
|
4,447
|
|
|
Renewal Tenants
|
Lease Life
|
|
829
|
|
|
1,491
|
|
|
3,926
|
|
|
3,710
|
|
|
Total Capitalized Leasing Costs
|
|
|
$
|
3,514
|
|
|
3,719
|
|
|
12,814
|
|
|
10,816
|
|
Amortization of Leasing Costs
|
|
|
$
|
2,587
|
|
|
2,450
|
|
|
7,576
|
|
|
7,281
|
|
|
September 30,
2017 |
|
December 31,
2016 |
|||
|
(In thousands)
|
|||||
Unsecured bank credit facilities - variable rate, carrying amount
|
$
|
137,374
|
|
|
112,020
|
|
Unsecured bank credit facilities - fixed rate, carrying amount
(1)
|
80,000
|
|
|
80,000
|
|
|
Unamortized debt issuance costs
|
(731
|
)
|
|
(1,030
|
)
|
|
Unsecured bank credit facilities
|
216,643
|
|
|
190,990
|
|
|
|
|
|
|
|||
Unsecured debt - fixed rate, carrying amount
(1)
|
655,000
|
|
|
655,000
|
|
|
Unamortized debt issuance costs
|
(1,822
|
)
|
|
(2,162
|
)
|
|
Unsecured debt
|
653,178
|
|
|
652,838
|
|
|
|
|
|
|
|||
Secured debt - fixed rate, carrying amount
(1)
|
203,093
|
|
|
258,594
|
|
|
Unamortized debt issuance costs
|
(915
|
)
|
|
(1,089
|
)
|
|
Secured debt
|
202,178
|
|
|
257,505
|
|
|
|
|
|
|
|||
Total debt
|
$
|
1,071,999
|
|
|
1,101,333
|
|
(1)
|
These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
|
|
October – December 2017
|
|
2018
|
|
2019
|
|
2020
|
|
2021
|
|
Thereafter
|
|
Total
|
|
Fair Value
|
||||||||||
Unsecured bank credit facilities - variable rate
(in thousands)
|
$
|
—
|
|
|
—
|
|
|
137,374
|
|
(1)
|
—
|
|
|
—
|
|
|
—
|
|
|
137,374
|
|
|
137,380
|
|
(2)
|
Weighted average interest rate
|
—
|
|
|
—
|
|
|
2.23
|
%
|
(3)
|
—
|
|
|
—
|
|
|
—
|
|
|
2.23
|
%
|
|
|
|
||
Unsecured bank credit facilities - fixed rate
(in thousands)
|
$
|
—
|
|
|
—
|
|
|
80,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80,000
|
|
|
80,002
|
|
(4)
|
Weighted average interest rate
|
—
|
|
|
—
|
|
|
2.02
|
%
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.02
|
%
|
|
|
|
||
Unsecured debt - fixed rate
(in thousands)
|
$
|
—
|
|
|
50,000
|
|
|
75,000
|
|
|
105,000
|
|
|
40,000
|
|
|
385,000
|
|
|
655,000
|
|
|
644,834
|
|
(4)
|
Weighted average interest rate
|
—
|
|
|
3.91
|
%
|
|
2.85
|
%
|
|
3.77
|
%
|
|
2.34
|
%
|
|
3.47
|
%
|
|
3.41
|
%
|
|
|
|
||
Secured debt - fixed rate
(in thousands)
|
$
|
2,736
|
|
|
11,316
|
|
|
55,569
|
|
|
9,096
|
|
|
89,563
|
|
|
34,813
|
|
|
203,093
|
|
|
210,880
|
|
(4)
|
Weighted average interest rate
|
5.20
|
%
|
|
5.21
|
%
|
|
7.01
|
%
|
|
4.43
|
%
|
|
4.55
|
%
|
|
4.08
|
%
|
|
5.18
|
%
|
|
|
|
(1)
|
The variable-rate unsecured bank credit facilities mature in July 2019 and as of
September 30, 2017
, have balances of $121,000,000 on the $300 million unsecured bank credit facility and $16,374,000 on the $35 million unsecured bank credit facility.
|
(2)
|
The fair value of the Company’s variable rate debt is estimated by discounting expected cash flows at current market rates, excluding the effects of debt issuance costs.
|
(3)
|
Represents the weighted average interest rate for the Company's variable rate unsecured bank credit facilities as of
September 30, 2017
.
|
(4)
|
The fair value of the Company’s fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, is estimated by discounting expected cash flows at the rates currently offered to the Company for debt of the same remaining maturities, as advised by the Company’s bankers, excluding the effects of debt issuance costs.
|
ITEM 4.
|
CONTROLS AND PROCEDURES.
|
ITEM 1A.
|
RISK FACTORS.
|
ITEM 4.
|
MINE SAFETY DISCLOSURES.
|
ITEM 6.
|
EXHIBITS.
|
|
EASTGROUP PROPERTIES, INC.
|
|
|
|
/s/ BRUCE CORKERN
|
|
Bruce Corkern, CPA
|
|
Senior Vice President, Chief Accounting Officer and Secretary
|
|
|
|
/s/ BRENT W. WOOD
|
|
Brent W. Wood
|
|
Executive Vice President, Chief Financial Officer and Treasurer
|
1 Year Eastgroup Properties Chart |
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