REAL ESTATE PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2017

The Company’s Real estate properties and Development at December 31, 2017 and 2016 were as follows:



	December 31,
	2017			2016
	(In thousands)
Real estate properties:
Land	$	345,424		308,931
Buildings and building improvements	1,587,130			1,435,309
Tenant and other improvements	402,905			368,833
Development	242,014			293,908
	2,577,473			2,406,981
Less accumulated depreciation	(749,601		)	(694,250	)
	$	1,827,872		1,712,731

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, 2017, 2016 and 2015 follows:



Real Estate Properties	Location	Size (in Square Feet)	Date Sold	Net Sales Price		Basis	Recognized Gain
				(In thousands)
2017
Stemmons Circle	Dallas, TX	99,000	05/12/2017	$	5,051	1,329	3,722
Techway Southwest I-IV	Houston, TX	415,000	06/19/2017	32,506		14,373	18,133
Total for 2017				$	37,557	15,702	21,855
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


(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 ACTIVITY		Costs Incurred							Anticipated Building Conversion Date
DEVELOPMENT ACTIVITY		Costs Transferred in 2017 ⁽¹⁾			For the Year Ended 12/31/17		Cumulative as of 12/31/17	Estimated Total Costs ⁽²⁾	Anticipated Building Conversion Date
		(In thousands)
	(Unaudited)							(Unaudited)	(Unaudited)
LEASE-UP	Building Size (Square feet)
Alamo Ridge IV, San Antonio, TX	97,000	$	—		2,152		7,097	8,300	03/18
Weston, Ft. Lauderdale, FL ⁽³⁾	134,000	—			1,239		15,520	16,000	03/18
Oak Creek VII, Tampa, FL	116,000	2,153			3,978		6,131	7,500	04/18
Progress Center 1 & 2, Atlanta, GA ⁽⁴⁾	132,000	—			10,333		10,333	11,100	04/18
Eisenhauer Point 3, San Antonio, TX	71,000	—			3,411		6,159	6,800	06/18
SunCoast 4, Ft. Myers, FL	93,000	—			2,865		9,120	10,000	06/18
Steele Creek VII, Charlotte, NC	120,000	2,393			5,404		7,797	8,600	09/18
Horizon XII, Orlando, FL	140,000	3,825			7,405		11,230	12,100	12/18
Total Lease-Up	903,000	8,371			36,787		73,387	80,400
UNDER CONSTRUCTION
Country Club V, Tucson, AZ	300,000	—			10,656		13,951	24,200	04/18
Kyrene 202 III, IV & V, Phoenix, AZ	166,000	2,280			9,263		11,543	13,800	02/19
CreekView 121 3 & 4, Dallas, TX	158,000	3,701			6,610		10,311	14,200	03/19
Eisenhauer Point 5, San Antonio, TX	98,000	1,253			4,551		5,804	7,500	03/19
Eisenhauer Point 6, San Antonio, TX	85,000	878			3,172		4,050	5,200	03/19
Horizon X, Orlando, FL	104,000	2,101			1,449		3,550	8,000	04/19
Falcon Field, Phoenix, AZ	96,000	1,733			1,214		2,947	9,000	05/19
Airport Commerce Center 3, Charlotte, NC	96,000	1,653			80		1,733	7,300	07/19
Settlers Crossing 1, Austin, TX	77,000	1,494			62		1,556	7,400	10/19
Settlers Crossing 2, Austin, TX	83,000	1,606			67		1,673	8,000	10/19
Total Under Construction	1,263,000	16,699			37,124		57,118	104,600
PROSPECTIVE DEVELOPMENT (PRIMARILY LAND)	Estimated Building Size (Square feet)
Phoenix, AZ	—	(4,013		)	120		—
Tucson, AZ ⁽⁵⁾	—	—			(417	)	—
Ft. Myers, FL	570,000	—			469		14,112
Miami, FL	850,000	—			3,632		30,876
Orlando, FL	418,000	(5,926		)	917		11,120
Tampa, FL	32,000	(2,153		)	32		1,560
Atlanta, GA	196,000	—			1,207		1,207
Jackson, MS	28,000	—			—		706
Charlotte, NC	655,000	(4,046		)	1,472		6,729
Austin, TX	180,000	(3,100		)	6,120		3,020
Dallas, TX	491,000	(3,701		)	975		9,596
El Paso, TX ⁽⁶⁾	—	—			(2,444	)	—
Houston, TX ⁽⁷⁾	1,476,000	—			(184	)	21,190
San Antonio, TX	965,000	(2,131		)	7,585		11,393
Total Prospective Development	5,861,000	(25,070		)	19,484		111,509
	8,027,000	$	—		93,395		242,014
COMPLETED DEVELOPMENT AND TRANSFERRED TO REAL ESTATE PROPERTIES DURING 2017	Building Size (Square feet)								Building Conversion Date
Eisenhauer Point 1 & 2, San Antonio, TX	201,000	$	—		19		15,795		01/17
South 35th Avenue, Phoenix, AZ ⁽⁸⁾	125,000	—			—		1,664		01/17
Alamo Ridge III, San Antonio, TX	135,000	—			28		10,587		02/17
Parc North 1-4, Dallas, TX ⁽⁹⁾	446,000	—			132		32,252		02/17
Madison IV & V, Tampa, FL	145,000	—			549		8,074		03/17
Jones Corporate Park, Las Vegas, NV ⁽¹⁰⁾	416,000	—			275		39,815		04/17
Steele Creek VI, Charlotte, NC	137,000	—			519		7,525		04/17
Ten Sky Harbor, Phoenix, AZ	64,000	—			100		5,365		04/17
Horizon V, Orlando, FL	141,000	—			4,814		9,249		05/17
Horizon VII, Orlando, FL	109,000	—			1,375		8,266		06/17
Eisenhauer Point 4, San Antonio, TX	85,000	—			2,544		5,197		07/17
CreekView 121 1 & 2, Dallas, TX	193,000	—			4,464		16,319		08/17
Total Transferred to Real Estate Properties	2,197,000	$	—		14,819		160,108	⁽¹¹⁾

Footnotes for the Development Activity table are on the following page.


(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 $29.0 million and tenant improvement obligations of $5.8 million on properties under development.


(3)	This project was acquired by EastGroup on 11/1/16 and underwent redevelopment.


(4)	This project was acquired by EastGroup on 12/12/17 during the lease-up phase.


(5)	Negative amount represents land inventory costs transferred to Real Estate Properties for storage yard and parking lot expansion.


(6)	Negative amount represents land sold on 11/3/17.


(7)	Negative amount represents West Road retention ponds and infrastructure conveyed to West Harris County Municipal Utility District.


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


(9)	This project was acquired by EastGroup on 7/8/16 during the lease-up phase.


(10)	This project was acquired by EastGroup on 11/15/16 during the lease-up phase.


(11)	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, 2017:



Years Ending December 31,	(In thousands)
2018	$	204,614
2019	177,110
2020	139,791
2021	100,559
2022	74,092
Thereafter	147,960
Total minimum receipts	$	844,126

Future Minimum Ground Lease Payments

The following schedule indicates approximate future minimum ground lease payments for these properties by year as of December 31, 2017:

Future Minimum Ground Lease Payments



Years Ending December 31,	(In thousands)
2018	$	761
2019	761
2020	761
2021	761
2022	761
Thereafter	9,729
Total minimum payments	$	13,534