JACKSON, Miss., Nov. 8, 2021 — EastGroup Properties, Inc. (NYSE: EGP) (the “Company” or “EastGroup”) announced today its recent business activity.
EastGroup is under contract to purchase four multi-tenant business distribution buildings totaling 547,000 square feet for $135 million in the Otay Mesa submarket of San Diego. The buildings, known as Siempre Viva Distribution Center III, are 66% leased and are located adjacent to the Company’s Siempre Viva Distribution Center I and II properties, which are 100% leased. The acquisition is expected to close in late November.
In November, EastGroup began construction of LakePort 4 & 5 in the Flower Mound submarket of Dallas, Texas, which will contain 177,000 square feet and have a projected total cost of $22 million. These buildings will adjoin the Company’s LakePort 1-3 properties, which are 100% leased.
The Company executed a lease with a customer that will fully occupy World Houston 47 in Houston, Texas upon completion. The construction of this property, which will contain 139,000 square feet and has a projected total cost of $19 million, is expected to commence in first quarter 2022.
Also, the Company is under contract to sell Jetport Commerce Park in Tampa, an 11-building park totaling 284,000 square feet, for $45 million. The sale will generate a gain, which will be included in gain on sales of real estate investments; this gain will be excluded from funds from operations. This transaction is expected to close in mid-November.
Commenting on the Company’s activity, Marshall Loeb, CEO, stated, “We began the year with a 42-acre development site in south San Diego. We, thankfully, found a user and are under construction for a 100% pre-leased development. We then began searching for a new land site or existing vacancy opportunity. We are pleased that we are under contract to purchase these four adjacent buildings and that we were able to raise the percent leased from 53% to 66% prior to closing. I’m also excited to add to our prospective 2022 development starts a 100% pre-leased project within our World Houston Business Park.”
As of November 5, 2021, EastGroup’s portfolio was 98.5% leased and 97.6% occupied.
During the fourth quarter of 2021 to date, the Company has issued and sold 182,473 shares of common stock under its continuous common equity offering program at an average price of $199.53 per share, providing gross proceeds to the Company of approximately $36 million.
About EastGroup Properties, Inc.
EastGroup, an S&P MidCap 400 company, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 15,000 to 70,000 square foot range). The Company’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup’s portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 50.7 million square feet.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.