UNSECURED BANK CREDIT FACILITIES

12 Months Ended

Dec. 31, 2024

Line of Credit Facility [Abstract]

UNSECURED BANK CREDIT FACILITIES

UNSECURED BANK CREDIT FACILITIES

The Company’s borrowings on unsecured bank credit facilities are detailed below:

	December 31,
	2024		2023
	(In thousands)
Unsecured bank credit facilities — variable rate, carrying amount	$	—	—
Unamortized debt issuance costs	(3,595)		(1,520)
Unsecured bank credit facilities, net of debt issuance costs	$	(3,595)	(1,520)

On June 13, 2024, EastGroup entered into amended and restated credit agreements related to its $625,000,000 and $50,000,000

unsecured bank credit facilities, to extend the maturity dates from July 30, 2025 to July 31, 2028. There were no other material

changes to the credit facilities, which are outlined below.

The Company has a $625,000,000 unsecured bank credit facility with a group of 10 banks, which has a maturity date of July 31, 2028. The credit facility contains options for two six-month extensions (at the Company’s election) and an additional $625,000,000 accordion (with agreement by all parties). The interest rate on each tranche is reset on a monthly basis and as of December 31, 2024, was Term Secured Overnight Financing Rate (“SOFR”) plus 76.5 basis points with an annual facility fee of 15 basis points. As of December 31, 2024, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 5.222%. The Company has two standby letters of credit totaling $2,655,000 pledged on this facility, which reduces borrowing capacity under the credit facility.

The Company also has a $50,000,000 unsecured bank credit facility with a maturity date of July 31, 2028, or such later date as designated by the bank; the Company also has two six-month extensions available if the extension options in the $625,000,000 facility are exercised. The interest rate is reset on a daily basis and as of December 31, 2024, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points. As of December 31, 2024, the interest rate was 5.335% with no outstanding balance.

For both facilities, the margin and facility fee are subject to changes in the Company’s credit ratings. Although the Company’s current credit rating is Baa2, given the strength of the Company’s key credit metrics, initial pricing for the credit facilities is based on the BBB+/Baa1 credit ratings level. This favorable pricing level will be retained provided that the Company’s consolidated leverage ratio, as defined in the applicable agreements, remains less than 32.5%.

The $625,000,000 facility also includes a sustainability-linked pricing component, pursuant to which the applicable interest rate margin is adjusted if the Company meets a certain sustainability performance target. This sustainability metric is evaluated annually and was achieved for the years ended December 31, 2024, 2023, and 2022, which allowed for the interest rate reduction in each of the years subsequent to achieving the metric. The margin was effectively reduced on this unsecured bank credit facility for the years ended December 31, 2024 and 2023, by one basis point, from 77.5 to 76.5 basis points.

Average unsecured bank credit facilities borrowings were $1,776,000 in 2024, $49,384,000 in 2023 and $182,478,000 in 2022, with weighted average interest rates (excluding amortization of facility fees and debt issuance costs) of 6.25% in 2024, 5.68% in 2023 and 2.32% in 2022.  Amortization of facility fees was $1,012,000, $1,005,000 and $713,000 for 2024, 2023 and 2022, respectively.  Amortization of debt issuance costs for the Company’s unsecured bank credit facilities was $1,036,000, $1,003,000 and $650,000 for 2024, 2023 and 2022, respectively.

The Company’s unsecured bank credit facilities have certain restrictive covenants, such as maintaining minimum 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, 2024 and 2023.