SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

Subsequent Event [Line Items]

Subsequent Events [Text Block]

SUBSEQUENT EVENTS

In June, EastGroup executed a commitment letter for a $40 million senior unsecured term loan which is expected to close in late July. The loan has a five-year term and interest only payments. It bears interest at the annual rate of LIBOR plus an applicable margin (currently 1.10%) 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 2.335%.

Subsequent to quarter-end, EastGroup sold land in Houston (7 acres) and Dallas (8 acres) in separate transactions for a total of $2.6 million. In addition, the Company is under contract to sell 4 acres of land in Houston; this transaction is expected to close in July 2016. The Company expects to record gains on the sales in the third quarter of 2016.

Also subsequent to quarter-end, EastGroup acquired Parc North, a four-building complex in Fort Worth, Texas, for $32 million. The buildings, which contain 446,000 square feet and are currently 37% leased, were recently developed by the seller and are considered to be in the lease-up phase of development.