UNSECURED AND SECURED DEBT

12 Months Ended

Dec. 31, 2022

The Company’s debt is detailed below:


	December 31,
	2022		2021
	(In thousands)
Unsecured bank credit facilities - variable rate, carrying amount	$	170,000	209,210
Unamortized debt issuance costs	(1,546)		(2,144)
Unsecured bank credit facilities, net of debt issuance costs	168,454		207,066

Unsecured debt - fixed rate, carrying amount (1)	1,695,000		1,245,000
Unamortized debt issuance costs	(3,741)		(2,430)
Unsecured debt, net of debt issuance costs	1,691,259		1,242,570

Secured debt - fixed rate, carrying amount (1)	2,041		2,156
Unamortized debt issuance costs	(10)		(14)
Secured debt, net of debt issuance costs	2,031		2,142

Total debt, net of debt issuance costs	$	1,861,744	1,451,778

(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	2022		2021
				(In thousands)

$75 Million Unsecured Term Loan (1)	1.40%	3.03%	02/28/2022	$	—	75,000
$65 Million Unsecured Term Loan (1)	1.10%	2.31%	04/01/2023	65,000		65,000
$70 Million Senior Unsecured Notes:
$50 Million Notes	Not applicable	3.80%	08/28/2023	50,000		50,000
$20 Million Notes	Not applicable	3.80%	08/28/2025	20,000		20,000
$60 Million Senior Unsecured Notes	Not applicable	3.46%	12/13/2024	60,000		60,000
$100 Million Senior Unsecured Notes:
$60 Million Notes	Not applicable	3.48%	12/15/2024	60,000		60,000
$40 Million Notes	Not applicable	3.75%	12/15/2026	40,000		40,000
$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
$60 Million Senior Unsecured Notes	Not applicable	3.93%	04/10/2028	60,000		60,000
$80 Million Senior Unsecured Notes	Not applicable	4.27%	03/28/2029	80,000		80,000
$35 Million Senior Unsecured Notes	Not applicable	3.54%	08/15/2031	35,000		35,000
$75 Million Senior Unsecured Notes	Not applicable	3.47%	08/19/2029	75,000		75,000
$100 Million Unsecured Term Loan (2) (3)	0.95%	2.10%	10/10/2026	100,000		100,000
$100 Million Unsecured Term Loan (2) (4)	0.95%	1.80%	03/25/2027	100,000		100,000
$100 Million Senior Unsecured Notes	Not applicable	2.61%	10/14/2030	100,000		100,000
$75 Million Senior Unsecured Notes	Not applicable	2.71%	10/14/2032	75,000		75,000
$50 Million Unsecured Term Loan (2) (5)	1.10%	1.58%	03/18/2025	50,000		50,000
$125 Million Senior Unsecured Notes	Not applicable	2.74%	06/10/2031	125,000		125,000
$100 Million Unsecured Term Loan (2)	1.40%	3.06%	09/29/2028	100,000		—
$150 Million Senior Unsecured Notes	Not applicable	3.03%	04/20/2032	150,000		—
$125 Million Unsecured Term Loans (2):
$50 Million Loan	0.95%	4.09%	08/30/2024	50,000		—
$75 Million Loan	0.95%	4.00%	08/31/2027	75,000		—
$150 Million Senior Unsecured Notes:
$75 Million Notes	Not applicable	4.90%	10/12/2033	75,000		—
$75 Million Notes	Not applicable	4.95%	10/12/2034	75,000		—
				$	1,695,000	1,245,000

(1)The interest rates on these unsecured term loans are 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 loans’ LIBOR 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, 2022.

(2)The interest rates on these unsecured term loans are comprised of Term Secured Overnight Financing Rate (“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, 2022.

(3)This term loan was refinanced effective October 10, 2021. The margin above LIBOR was reduced by 65 basis points, changing the effectively fixed rate from 2.75% to 2.10%. Also, effective August 31, 2022, the loan was amended to replace LIBOR with Term SOFR.

(4)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.

(5)This term loan was amended effective December 19, 2022 to replace LIBOR with Term SOFR.

In January 2022, the Company and a group of lenders agreed to terms on the private placement of $150,000,000 of senior unsecured notes with a fixed interest rate of 3.03% and a 10-year term. The notes were issued and sold on April 20, 2022 and require interest-only payments. The notes will not be and have not been registered under the Securities Act of 1933, as amended

(the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

In February 2022, EastGroup repaid a $75,000,000 unsecured term loan at maturity with an effectively fixed interest rate of 3.03%.

In March 2022, the Company closed a $100,000,000 senior unsecured term loan with a 6.5-year term and interest only payments, which bears interest at an annual rate of the SOFR plus an applicable margin (1.40% as of December 31, 2022) 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 3.06%.

Also during March 2022, 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 60 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 1.80%.

In June 2022, the Company assumed a $60,000,000 loan in connection with the acquisition of Tulloch Corporation, the owner of an industrial real estate portfolio comprised of 14 operating properties and two parcels of land, which was immediately repaid with no penalty during June 2022.

In August 2022, the Company closed a $125,000,000 senior unsecured term loan with interest only payments, bearing interest at the annual rate of SOFR plus an applicable margin (0.95% as of December 31, 2022) based on the Company’s senior unsecured long-term debt rating and consolidated leverage ratio. The loan has a $75,000,000 tranche with a five-year term and a $50,000,000 tranche with a two-year term. The Company also entered into interest rate swap agreements to convert the loans’ SOFR rate components to fixed interest rates for the entire term of the loans, providing total effectively fixed interest rates of 4.00% and 4.09% on the $75,000,000 and $50,000,000 tranches, respectively. These term loans also include a sustainability-linked pricing component pursuant to which, if the Company meets certain sustainability performance targets, the applicable interest margin will be reduced by one basis point.

In July 2022, the Company and a group of lenders agreed to terms on the private placement of two senior unsecured notes totaling $150,000,000. One note for $75,000,000 has an 11-year term and a fixed interest rate of 4.90% with semi-annual interest-only payments. The other $75,000,000 note has a 12-year term and a fixed interest rate of 4.95% with semi-annual interest-only payments. The notes, dated August 16, 2022, were issued and sold on October 12, 2022. The notes will not be and have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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, 2022 and 2021.

A summary of the carrying amount of Secured debt follows:


	Interest Rate	Monthly Principal & Interest Payment		Maturity Date	Carrying Amount of Securing Real Estate at December 31, 2022		Balance at December 31,
Property							2022	2021
					(In thousands)


Ramona Distribution Center	3.85%	$	16,287	11/30/2026	$	8,333	2,041	2,156

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 and Secured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs), as of December 31, 2022 are as follows:


Years Ending December 31,	(In thousands)
2023	$	115,119
2024	170,122
2025	145,128
2026	141,672
2027	175,000