DEBT

Secured debt decreased $9,555,000 during the six months ended June 30, 2016. The decrease primarily resulted from regularly scheduled principal payments of $9,376,000.

Properties encumbered by EastGroup's Secured debt were disclosed in the Company's Form 10-K for the year ended December 31, 2015. During the six months ended June 30, 2016, the Company closed collateral substitutions for two of its secured loans. The first collateral substitution was for a loan previously secured by America Plaza, Central Green, Glenmont, West Loop, World Houston 3-9, Interstate I-III, Rojas, Stemmons Circle and Venture. Colorado Crossing in Austin and Steele Creek 1 & 2 in Charlotte were substituted for America Plaza, Central Green, Glenmont and West Loop in Houston.

The second collateral substitution was for a loan previously secured by 40th Avenue, Beltway Crossing V, Centennial Park, Executive Airport, Ocean View, Techway Southwest IV, Wetmore 5-8 and World Houston 26, 28, 29 and 30. Interchange Park I in Charlotte was substituted for Techway Southwest IV in Houston.

Unsecured debt increased $64,464,000 during the six months ended June 30, 2016, primarily due to a $65 million senior unsecured term loan which closed on April 1, 2016. The loan has a seven-year term and interest only payments. It bears interest at the annual rate of LIBOR plus an applicable margin (currently 1.65%) 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 LIBOR rate component to a fixed interest rate for the entire term of the loan providing a total effective fixed interest rate of 2.863%.

Unsecured bank credit facilities decreased $114,321,000 during the six months ended June 30, 2016, mainly due to repayments of $282,802,000 exceeding proceeds of $168,283,000 during the period.

In connection with the adoption of ASU 2015-03, which is described in further detail in Note 17, the Company presents debt issuance costs as reductions of Secured debt, Unsecured debt and Unsecured bank credit facilities on the Consolidated Balance Sheets as detailed below.



	June 30, 2016			December 31, 2015
	(In thousands)
Secured debt, carrying amount	$	342,008		351,401
Unamortized debt issuance costs	(1,278		)	(1,116	)
Secured debt	340,730			350,285

Unsecured debt, carrying amount	595,000			530,000
Unamortized debt issuance costs	(2,326		)	(1,790	)
Unsecured debt	592,674			528,210

Unsecured bank credit facilities, carrying amount	36,317			150,836
Unamortized debt issuance costs	(1,224		)	(1,422	)
Unsecured bank credit facilities	35,093			149,414

Total debt	$	968,497		1,027,909

Scheduled principal payments on long-term debt, including Secured debt and Unsecured debt (not including Unsecured bank credit facilities), as of June 30, 2016 are as follows:



Years Ending December 31,	(In thousands)
Remainder of 2016	$	83,412
2017	58,239
2018	141,316
2019	130,569
2020	114,097
2021 and beyond	409,375
Total	$	937,008