EastGroup Executes Capital Actions - Analyst Blog

By
A A A

EastGroup Properties Inc . ( EGP ), an equity real estate investment trust, declared the closure of its formerly announced issuance of senior unsecured notes worth $100 million through private placement, having a fixed rate of interest of 3.8%. Further, a semi-annual interest has to be paid on these notes along with the repayment of principal amount of $30 million on Aug 30, 2020, $50 million on Aug 30, 2023 and $20 million on Aug 30, 2025.

From Jun 30, 2013, EastGroup, under its Continuous Equity Program, has sold 296,435 common shares at an average price of $60.34 per share. The gross proceeds from the sale were $17.9 million.  

Alongside, EastGroup declared two new developments. The company plans to construct 2 buildings at World Houston International Business Center - World Houston 39 and World Houston 40. World Houston 39 would be a cross-dock business distribution building spanning over 94,000 square feet with a total estimated investment of $5.7 million. The construction of the building is slated for completion in the second quarter of 2014 and would be offering a multi-tenant space.

Additionally, EastGroup would construct another building - World Houston 40 - spanning over 202,000 square feet with an estimated total investment of $11.7 million. Moreover, it would be 100% leased to a single user and occupied in the third quarter of 2014.

Further, EastGroup plans to construct another multi-tenant business distribution building - Rampart IV - at Denver, adjoining Rampart 3. The building will span over 84,000 square feet with an estimated total investment of $8.3 million. Moreover, the construction of the building is expected to be completed in the second quarter of 2014.

EastGroup engages in the development, acquisition and operation of industrial properties in major Sunbelt markets across the United States, mainly in the supply-constrained submarkets of Florida, Texas, Arizona, California and North Carolina. The company's growth strategy is mainly based on acquiring leading distribution facilities located near major transportation centers for catering to local customers.

EastGroup currently carries a Zacks Rank #2 (Buy). Some other stocks worth considering in the same industry include CubeSmart ( CUBE ), Douglas Emmett Inc ( DEI ) and Getty Realty Corp . ( GTY ). All these carry a Zacks Rank #2 (Buy).



CUBESMART (CUBE): Free Stock Analysis Report

DOUGLAS EMMETT (DEI): Free Stock Analysis Report

EASTGROUP PPTYS (EGP): Free Stock Analysis Report

GETTY REALTY CP (GTY): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CUBE , DEI , EGP , GTY

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

How to Fire Your Adviser
How to Fire Your Adviser            

Stocks

Referenced

Most Active by Volume

75,750,465
  • $16.77 ▲ 0.36%
59,791,764
  • $101.58 ▲ 0.71%
38,720,622
  • $42.59 ▼ 0.28%
37,416,417
  • $46.52 ▼ 0.51%
35,101,793
  • $16.28 ▲ 0.74%
34,987,975
  • $99.53 ▲ 0.15%
33,760,830
  • $3.63 ▲ 0.69%
32,148,671
  • $17.61 ▲ 0.57%
As of 9/17/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com