REAL ESTATE PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2016

The Company’s Real estate properties and Development at December 31, 2016 and 2015 were as follows:



	December 31,
	2016			2015
	(In thousands)
Real estate properties:
Land	$	308,931		301,435
Buildings and building improvements	1,435,309			1,393,688
Tenant and other improvements	368,833			353,884
Development	293,908			170,441
	2,406,981			2,219,448
Less accumulated depreciation	(694,250		)	(657,454	)
	$	1,712,731		1,561,994

Gain, net of loss, on Sales of Real Estate

A summary of Gain, net of loss, on sales of real estate investments for the years ended December 31, 2016, 2015 and 2014 follows:



Real Estate Properties	Location	Size (in Square Feet)	Date Sold	Net Sales Price		Basis	Recognized Gain
				(In thousands)
2016
Northwest Point Distribution and Service Centers	Houston, TX	232,000	02/12/2016	$	15,189	5,080	10,109
North Stemmons III	Dallas, TX	60,000	03/04/2016	3,131		1,908	1,223
North Stemmons II	Dallas, TX	26,000	04/12/2016	1,203		765	438
Lockwood Distribution Center	Houston, TX	392,000	04/18/2016	14,024		4,154	9,870
West Loop Distribution Center 1 & 2	Houston, TX	161,000	04/19/2016	13,154		3,564	9,590
America Plaza	Houston, TX	121,000	04/28/2016	7,938		3,378	4,560
Interstate Commons Distribution Center 1 & 2	Phoenix, AZ	142,000	05/31/2016	9,906		3,568	6,338
Castilian Research Center ⁽¹⁾	Santa Barbara, CA	30,000	06/28/2016	7,698		7,513	185
Memphis I	Memphis, TN	92,000	12/16/2016	1,482		1,625	(143	)
Total for 2016				$	73,725	31,555	42,170
2015
Ambassador Row Warehouse	Dallas, TX	185,000	04/13/2015	$	4,998	2,095	2,903
2014
Northpoint Commerce Center	Oklahoma City, OK	58,000	03/28/2014	$	3,471	3,376	95
Tampa West Distribution Center VI	Tampa, FL	9,000	07/08/2014	682		446	236
Clay Campbell Distribution Center	Houston, TX	118,000	09/30/2014	7,690		2,826	4,864
Kirby Business Center	Houston, TX	125,000	09/30/2014	5,306		2,989	2,317
Ambassador Row Warehouses	Dallas, TX	132,000	12/30/2014	3,358		1,682	1,676
Total for 2014				$	20,507	11,319	9,188


(1)	EastGroup owned 80% of Castilian Research Center through a joint venture. The information shown for this transaction also includes the 20% attributable to the Company's noncontrolling interest partner.

Development



DEVELOPMENT		Costs Incurred							Anticipated Building Conversion Date
DEVELOPMENT		Costs Transferred in 2016 ⁽¹⁾			For the Year Ended 12/31/16		Cumulative as of 12/31/16	Estimated Total Costs ⁽²⁾	Anticipated Building Conversion Date
		(In thousands)
	(Unaudited)							(Unaudited)	(Unaudited)
LEASE-UP	Building Size (Square feet)
Eisenhauer Point 1 & 2, San Antonio, TX	201,000	$	—		9,016		15,776	17,000	01/17
South 35th Avenue, Phoenix, AZ ⁽³⁾	124,000	—			493		1,664	1,900	01/17
Parc North 1-4, Dallas, TX ⁽⁴⁾	446,000	—			32,120		32,120	35,500	02/17
Jones Corporate Park, Las Vegas, NV ⁽⁵⁾	416,000	—			39,540		39,540	43,700	04/17
Ten Sky Harbor, Phoenix, AZ	64,000	—			1,613		5,265	6,200	04/17
Steele Creek VI, Charlotte, NC	137,000	—			4,102		7,006	8,200	07/17
Madison IV & V, Tampa, FL	145,000	1,069			6,456		7,525	9,600	10/17
Total Lease-Up	1,533,000	1,069			93,340		108,896	122,100
UNDER CONSTRUCTION
Alamo Ridge III, San Antonio, TX	135,000	—			8,179		10,559	12,200	02/17
Horizon V, Orlando, FL	141,000	2,891			1,544		4,435	9,900	07/17
Horizon VII, Orlando, FL	109,000	2,344			4,547		6,891	8,300	01/18
Alamo Ridge IV, San Antonio, TX	97,000	843			4,102		4,945	6,000	02/18
Country Club V, Tucson, AZ	300,000	—			3,295		3,295	24,200	02/18
CreekView 121 1 & 2, Dallas, TX	193,000	3,481			8,374		11,855	16,700	02/18
Eisenhauer Point 3, San Antonio, TX	71,000	808			1,940		2,748	5,400	04/18
Eisenhauer Point 4, San Antonio, TX	85,000	777			1,876		2,653	5,200	04/18
SunCoast 4, Ft. Myers, FL	93,000	4,287			1,968		6,255	8,700	04/18
Weston, Ft. Lauderdale, FL ⁽⁶⁾	134,000	—			14,281		14,281	15,900	05/18
Total Under Construction	1,358,000	15,431			50,106		67,917	112,500
PROSPECTIVE DEVELOPMENT (PRIMARILY LAND)	Estimated Building Size (Square feet)
Phoenix, AZ	261,000	—			406		3,893
Tucson, AZ	70,000	—			—		417
Ft. Myers, FL	570,000	(4,287		)	72		13,643
Miami, FL	850,000	—			27,244		27,244
Orlando, FL	662,000	(5,235		)	993		16,129
Tampa, FL	148,000	(1,069		)	111		3,681
Jackson, MS	28,000	—			—		706
Charlotte, NC	756,000	—			4,882		9,303
Dallas, TX	718,000	(3,481		)	7,677		12,322
El Paso, TX	251,000	—			—		2,444
Houston, TX	1,476,000	—			(3,213	)	21,374
San Antonio, TX	544,000	(2,428		)	4,687		5,939
Total Prospective Development	6,334,000	(16,500		)	42,859		117,095
	9,225,000	$	—		186,305		293,908
DEVELOPMENTS COMPLETED AND TRANSFERRED TO REAL ESTATE PROPERTIES DURING 2016	Building Size (Square feet)								Building Conversion Date
Alamo Ridge I, San Antonio, TX	96,000	$	—		26		7,378		02/16
Alamo Ridge II, San Antonio, TX	62,000	—			28		4,167		02/16
Madison II & III, Tampa, FL	127,000	—			(14	)	7,403		02/16
West Road III, Houston, TX	78,000	—			57		4,839		03/16
Ten West Crossing 7, Houston, TX	68,000	—			91		4,163		04/16
West Road IV, Houston, TX	65,000	—			642		5,327		06/16
Horizon III, Orlando, FL	109,000	—			1,217		7,332		07/16
Kyrene 202 VI, Phoenix, AZ	123,000	—			631		7,651		09/16
ParkView 1-3, Dallas, TX	276,000	—			2,594		19,850		10/16
Total Transferred to Real Estate Properties	1,004,000	$	—		5,272		68,110	⁽⁷⁾


(1)	Represents costs transferred from Prospective Development (primarily land) to Under Construction during the period. Negative amounts represent land inventory costs transferred to Under Construction.


(2)	Included in these costs are development obligations of $25.5 million and tenant improvement obligations of $6.1 million on properties under development.


(3)	This property was redeveloped from a manufacturing building to a multi-tenant distribution building.


(4)	This project, which was recently developed by the seller, was acquired by EastGroup on 7/8/16 and is considered to be in the lease-up phase.


(5)	This project, which was recently developed by the seller, was acquired by EastGroup on 11/15/16 and is considered to be in the lease-up phase.


(6)	This project was acquired by EastGroup on 11/1/16 and is being redeveloped.


(7)	Represents cumulative costs at the date of transfer.

Future Minimum Rental Receipts Under Non-cancelable Leases

The following schedule indicates approximate future minimum rental receipts under non-cancelable leases for real estate properties by year as of December 31, 2016:

Future Minimum Rental Receipts Under Non-Cancelable Leases



Years Ending December 31,	(In thousands)
2017	$	186,783
2018	159,858
2019	128,487
2020	96,423
2021	62,837
Thereafter	132,642
Total minimum receipts	$	767,030

Future Minimum Ground Lease Payments

The following schedule indicates approximate future minimum ground lease payments for these properties by year as of December 31, 2016:

Future Minimum Ground Lease Payments



Years Ending December 31,	(In thousands)
2017	$	756
2018	756
2019	756
2020	756
2021	756
Thereafter	10,430
Total minimum payments	$	14,210