XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.22.4

UNSECURED AND SECURED DEBT | 12 Months Ended
--- | ---
Dec. 31, 2022
Debt Disclosure [Abstract] |
UNSECURED AND SECURED DEBT | UNSECURED AND SECURED DEBT The Company’s debt is detailed below:
| December 31,
| 2022 |  | 2021
| (In thousands)
Unsecured bank credit facilities - variable rate, carrying amount | $ | 170,000 |  |  | 209,210 |
Unamortized debt issuance costs | (1,546) |  |  | (2,144) |
Unsecured bank credit facilities, net of debt issuance costs | 168,454 |  |  | 207,066 |
Unsecured debt - fixed rate, carrying amount (1) | 1,695,000 |  |  | 1,245,000 |
Unamortized debt issuance costs | (3,741) |  |  | (2,430) |
Unsecured debt, net of debt issuance costs | 1,691,259 |  |  | 1,242,570 |
Secured debt - fixed rate, carrying amount (1) | 2,041 |  |  | 2,156 |
Unamortized debt issuance costs | (10) |  |  | (14) |
Secured debt, net of debt issuance costs | 2,031 |  |  | 2,142 |
Total debt, net of debt issuance costs | $ | 1,861,744 |  |  | 1,451,778 |
(1)These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps. A summary of the carrying amount of Unsecured debt follows:
|  |  |  |  |  |  | Balance at December 31,
| Margin |  | Interest Rate |  | Maturity Date |  | 2022 |  | 2021
|  |  |  |  |  |  | (In thousands)
$75 Million Unsecured Term Loan (1) | 1.40% |  | 3.03% |  | 02/28/2022 |  | $ | — |  |  | 75,000 |
$65 Million Unsecured Term Loan (1) | 1.10% |  | 2.31% |  | 04/01/2023 |  | 65,000 |  |  | 65,000 |
$70 Million Senior Unsecured Notes: |  |  |  |  |  |  |  |  |
$50 Million Notes | Not applicable |  | 3.80% |  | 08/28/2023 |  | 50,000 |  |  | 50,000 |
$20 Million Notes | Not applicable |  | 3.80% |  | 08/28/2025 |  | 20,000 |  |  | 20,000 |
$60 Million Senior Unsecured Notes | Not applicable |  | 3.46% |  | 12/13/2024 |  | 60,000 |  |  | 60,000 |
$100 Million Senior Unsecured Notes: |  |  |  |  |  |  |  |  |
$60 Million Notes | Not applicable |  | 3.48% |  | 12/15/2024 |  | 60,000 |  |  | 60,000 |
$40 Million Notes | Not applicable |  | 3.75% |  | 12/15/2026 |  | 40,000 |  |  | 40,000 |
$25 Million Senior Unsecured Notes | Not applicable |  | 3.97% |  | 10/01/2025 |  | 25,000 |  |  | 25,000 |
$50 Million Senior Unsecured Notes | Not applicable |  | 3.99% |  | 10/07/2025 |  | 50,000 |  |  | 50,000 |
$60 Million Senior Unsecured Notes | Not applicable |  | 3.93% |  | 04/10/2028 |  | 60,000 |  |  | 60,000 |
$80 Million Senior Unsecured Notes | Not applicable |  | 4.27% |  | 03/28/2029 |  | 80,000 |  |  | 80,000 |
$35 Million Senior Unsecured Notes | Not applicable |  | 3.54% |  | 08/15/2031 |  | 35,000 |  |  | 35,000 |
$75 Million Senior Unsecured Notes | Not applicable |  | 3.47% |  | 08/19/2029 |  | 75,000 |  |  | 75,000 |
$100 Million Unsecured Term Loan (2) (3) | 0.95% |  | 2.10% |  | 10/10/2026 |  | 100,000 |  |  | 100,000 |
$100 Million Unsecured Term Loan (2) (4) | 0.95% |  | 1.80% |  | 03/25/2027 |  | 100,000 |  |  | 100,000 |
$100 Million Senior Unsecured Notes | Not applicable |  | 2.61% |  | 10/14/2030 |  | 100,000 |  |  | 100,000 |
$75 Million Senior Unsecured Notes | Not applicable |  | 2.71% |  | 10/14/2032 |  | 75,000 |  |  | 75,000 |
$50 Million Unsecured Term Loan (2) (5) | 1.10% |  | 1.58% |  | 03/18/2025 |  | 50,000 |  |  | 50,000 |
$125 Million Senior Unsecured Notes | Not applicable |  | 2.74% |  | 06/10/2031 |  | 125,000 |  |  | 125,000 |
$100 Million Unsecured Term Loan (2) | 1.40% |  | 3.06% |  | 09/29/2028 |  | 100,000 |  |  | — |
$150 Million Senior Unsecured Notes | Not applicable |  | 3.03% |  | 04/20/2032 |  | 150,000 |  |  | — |
$125 Million Unsecured Term Loans (2): |  |  |  |  |  |  |  |  |
$50 Million Loan | 0.95% |  | 4.09% |  | 08/30/2024 |  | 50,000 |  |  | — |
$75 Million Loan | 0.95% |  | 4.00% |  | 08/31/2027 |  | 75,000 |  |  | — |
$150 Million Senior Unsecured Notes: |  |  |  |  |  |  |  |  |
$75 Million Notes | Not applicable |  | 4.90% |  | 10/12/2033 |  | 75,000 |  |  | — |
$75 Million Notes | Not applicable |  | 4.95% |  | 10/12/2034 |  | 75,000 |  |  | — |
|  |  |  |  |  |  | $ | 1,695,000 |  |  | 1,245,000 |
(1)The interest rates on these unsecured term loans are comprised of LIBOR plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings. The Company entered into interest rate swap agreements (further described in Note 12) to convert the loans’ LIBOR rates to effectively fixed interest rates. The interest rates in the table above are the effectively fixed interest rates for the loans, including the effects of the interest rate swaps, as of December 31, 2022. (2)The interest rates on these unsecured term loans are comprised of Term Secured Overnight Financing Rate (“SOFR”) plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings. The Company entered into interest rate swap agreements (further described in Note 12) to convert the loans’ Term SOFR rates to effectively fixed interest rates. The interest rates in the table above are the effectively fixed interest rates for the loans, including the effects of the interest rate swaps, as of December 31, 2022. (3)This term loan was refinanced effective October 10, 2021. The margin above LIBOR was reduced by 65 basis points, changing the effectively fixed rate from 2.75% to 2.10%. Also, effective August 31, 2022, the loan was amended to replace LIBOR with Term SOFR. (4)This term loan was amended and refinanced effective March 25, 2022. The margin was reduced by approximately 60 basis points, changing the effectively fixed rate from 2.39% to 1.80%, and LIBOR was replaced with Term SOFR. (5)This term loan was amended effective December 19, 2022 to replace LIBOR with Term SOFR. In January 2022, the Company and a group of lenders agreed to terms on the private placement of $150,000,000 of senior unsecured notes with a fixed interest rate of 3.03% and a 10-year term. The notes were issued and sold on April 20, 2022 and require interest-only payments. The notes will not be and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. In February 2022, EastGroup repaid a $75,000,000 unsecured term loan at maturity with an effectively fixed interest rate of 3.03%. In March 2022, the Company closed a $100,000,000 senior unsecured term loan with a 6.5-year term and interest only payments, which bears interest at an annual rate of the SOFR plus an applicable margin (1.40% as of December 31, 2022) based on the Company’s senior unsecured long-term debt rating. The Company also entered into an interest rate swap agreement to convert the loan’s SOFR rate component to a fixed interest rate for the entire term of the loan providing a total effectively fixed interest rate of 3.06%. Also during March 2022, the Company closed on the refinance of a $100,000,000 senior unsecured term loan with five years remaining. The amended term loan provides for interest only payments currently at an interest rate of SOFR plus 95 basis points, based on the Company’s current credit ratings and consolidated leverage ratio, which is a 60 basis point reduction in the credit spread compared to the original term loan. The Company has an interest rate swap agreement which converts the loan’s SOFR rate component to a fixed interest rate for the entire term of the loan, providing a total effectively fixed interest rate of 1.80%. In June 2022, the Company assumed a $60,000,000 loan in connection with the acquisition of Tulloch Corporation, the owner of an industrial real estate portfolio comprised of 14 operating properties and two parcels of land, which was immediately repaid with no penalty during June 2022. In August 2022, the Company closed a $125,000,000 senior unsecured term loan with interest only payments, bearing interest at the annual rate of SOFR plus an applicable margin (0.95% as of December 31, 2022) based on the Company’s senior unsecured long-term debt rating and consolidated leverage ratio. The loan has a $75,000,000 tranche with a five-year term and a $50,000,000 tranche with a two-year term. The Company also entered into interest rate swap agreements to convert the loans’ SOFR rate components to fixed interest rates for the entire term of the loans, providing total effectively fixed interest rates of 4.00% and 4.09% on the $75,000,000 and $50,000,000 tranches, respectively. These term loans also include a sustainability-linked pricing component pursuant to which, if the Company meets certain sustainability performance targets, the applicable interest margin will be reduced by one basis point. In July 2022, the Company and a group of lenders agreed to terms on the private placement of two senior unsecured notes totaling $150,000,000. One note for $75,000,000 has an 11-year term and a fixed interest rate of 4.90% with semi-annual interest-only payments. The other $75,000,000 note has a 12-year term and a fixed interest rate of 4.95% with semi-annual interest-only payments. The notes, dated August 16, 2022, were issued and sold on October 12, 2022. The notes will not be and have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. During the year ended December 31, 2021, EastGroup closed on a total of $175,000,000 of new unsecured debt with a weighted average effectively fixed interest rate of 2.40%, refinanced a $100,000,000 unsecured term loan reducing the interest rate by 65 basis points, and repaid a $40,000,000 unsecured term loan with an effectively fixed interest rate of 2.34%. The Company’s unsecured debt instruments have certain restrictive covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage, and the Company was in compliance with all of its financial debt covenants at December 31, 2022 and 2021. A summary of the carrying amount of Secured debt follows:
|  | Interest Rate |  | Monthly Principal & Interest Payment |  | Maturity Date |  | Carrying Amount of Securing Real Estate at December 31, 2022 |  | Balance at December 31,
Property |  |  |  |  |  | 2022 |  | 2021
|  |  |  |  |  |  |  | (In thousands)
Ramona Distribution Center |  | 3.85% |  | $ | 16,287 |  |  | 11/30/2026 |  | $ | 8,333 |  |  | 2,041 |  |  | 2,156 |
The Company currently intends to repay its debt obligations, both in the short-term and long-term, through its operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt (primarily unsecured), and/or proceeds from the issuance of equity instruments. Scheduled principal payments on long-term debt, including Unsecured debt, net of debt issuance costs and Secured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs), as of December 31, 2022 are as follows:
Years Ending December 31, |  | (In thousands)
2023 |  | $ | 115,119 |
2024 |  | 170,122 |
2025 |  | 145,128 |
2026 |  | 141,672 |
2027 |  | 175,000 |

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for long-term debt. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_LongTermDebtTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration