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UNSECURED DEBT | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
UNSECURED DEBT | UNSECURED DEBT The Company’s unsecured debt is detailed below:
| December 31,
| 2023 |  | 2022
| (In thousands)
Unsecured debt - fixed rate, carrying amount (1) | $ | 1,680,000 |  |  | 1,695,000 |
Unamortized debt issuance costs | (3,653) |  |  | (3,741) |
Unsecured debt, net of debt issuance costs | $ | 1,676,347 |  |  | 1,691,259 |
(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 |  | 2023 |  | 2022
|  |  |  |  |  |  | (In thousands)
$65 Million Unsecured Term Loan (1) | 1.10% |  | 2.31% |  | 04/01/2023 |  | $ | — |  |  | 65,000 |
$50 Million Senior Unsecured Notes | Not applicable |  | 3.80% |  | 08/28/2023 |  | — |  |  | 50,000 |
$50 Million Unsecured Term Loan (2) | 0.95% |  | 4.09% |  | 08/30/2024 |  | 50,000 |  |  | 50,000 |
$60 Million Senior Unsecured Notes | Not applicable |  | 3.46% |  | 12/13/2024 |  | 60,000 |  |  | 60,000 |
$60 Million Senior Unsecured Notes | Not applicable |  | 3.48% |  | 12/15/2024 |  | 60,000 |  |  | 60,000 |
$50 Million Unsecured Term Loan (2) | 1.10% |  | 1.58% |  | 03/18/2025 |  | 50,000 |  |  | 50,000 |
$20 Million Senior Unsecured Notes | Not applicable |  | 3.80% |  | 08/28/2025 |  | 20,000 |  |  | 20,000 |
$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 |
$100 Million Unsecured Term Loan (2) | 0.95% |  | 2.10% |  | 10/10/2026 |  | 100,000 |  |  | 100,000 |
$40 Million Senior Unsecured Notes | Not applicable |  | 3.75% |  | 12/15/2026 |  | 40,000 |  |  | 40,000 |
$100 Million Unsecured Term Loan (2) (3) | 0.95% |  | 1.80% |  | 03/25/2027 |  | 100,000 |  |  | 100,000 |
$75 Million Unsecured Term Loan (2) | 0.95% |  | 4.00% |  | 08/31/2027 |  | 75,000 |  |  | 75,000 |
$60 Million Senior Unsecured Notes | Not applicable |  | 3.93% |  | 04/10/2028 |  | 60,000 |  |  | 60,000 |
$100 Million Unsecured Term Loan (2) (4) | 0.95% |  | 2.61% |  | 09/29/2028 |  | 100,000 |  |  | 100,000 |
$80 Million Senior Unsecured Notes | Not applicable |  | 4.27% |  | 03/28/2029 |  | 80,000 |  |  | 80,000 |
$75 Million Senior Unsecured Notes | Not applicable |  | 3.47% |  | 08/19/2029 |  | 75,000 |  |  | 75,000 |
$100 Million Unsecured Term Loan (2) | 1.35% |  | 5.27% |  | 01/13/2030 |  | 100,000 |  |  | — |
$100 Million Senior Unsecured Notes | Not applicable |  | 2.61% |  | 10/14/2030 |  | 100,000 |  |  | 100,000 |
$125 Million Senior Unsecured Notes | Not applicable |  | 2.74% |  | 06/10/2031 |  | 125,000 |  |  | 125,000 |
$35 Million Senior Unsecured Notes | Not applicable |  | 3.54% |  | 08/15/2031 |  | 35,000 |  |  | 35,000 |
$150 Million Senior Unsecured Notes | Not applicable |  | 3.03% |  | 04/20/2032 |  | 150,000 |  |  | 150,000 |
$75 Million Senior Unsecured Notes | Not applicable |  | 2.71% |  | 10/14/2032 |  | 75,000 |  |  | 75,000 |
$75 Million Senior Unsecured Notes | Not applicable |  | 4.90% |  | 10/12/2033 |  | 75,000 |  |  | 75,000 |
$75 Million Senior Unsecured Notes | Not applicable |  | 4.95% |  | 10/12/2034 |  | 75,000 |  |  | 75,000 |
|  |  |  |  |  |  | $ | 1,680,000 |  |  | 1,695,000 |
(1)The interest rates on this unsecured term loan was 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 loan's LIBOR rates to an effectively fixed interest rate. The interest rate in the table above is the effectively fixed interest rates for the loan, including the effects of the interest rate swaps, as of March 31, 2023, the payoff date. (2)The interest rates on these unsecured term loans are comprised of Term 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, 2023. (3)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. (4)This term loan was refinanced effective September 29, 2023. The margin was reduced by approximately 45 basis points, changing the effectively fixed rate from 3.06% to 2.61%. In January 2023, the Company closed a $100,000,000 senior unsecured term loan with a term of seven years and interest only payments, which bears interest at the annual rate of SOFR plus an applicable margin (1.35% as of December 31, 2023) 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 5.27%. On March 31, 2023, EastGroup repaid a $65,000,000 senior unsecured term loan with a total effectively fixed interest rate of 2.31%. The loan, which was scheduled to mature on April 1, 2023, was repaid with no penalty. In August 2023, the Company made a scheduled $50,000,000 principal repayment on its senior unsecured notes with a fixed interest rate of 3.80%. In September 2023, 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 45 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 2.61%. During the year ended December 31, 2022, EastGroup closed on a total of $525,000,000 of new unsecured debt with a weighted average effectively fixed interest rate of 3.82%. The Company refinanced a $100,000,000 unsecured term loan, reducing the interest rate by 60 basis points. EastGroup also repaid a $75,000,000 unsecured term loan with an effectively fixed interest rate of 3.03%. 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, 2023 and 2022. 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 (not including Unsecured bank credit facilities, net of debt issuance costs), as of December 31, 2023 are as follows:
Years Ending December 31, |  | (In thousands)
2024 |  | $ | 170,000 |
2025 |  | 145,000 |
2026 |  | 140,000 |
2027 |  | 175,000 |
2028 |  | 160,000 |
Thereafter |  | 890,000 |
Total unsecured debt, before amortization of debt issuance costs |  | $ | 1,680,000 |

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