In order to trim down its variable bank rate borrowings,
Mississippi based real estate investment trust (REIT),
) announced it had closed an unsecured term loan worth $80.0
The term loan, which is scheduled to mature after six years, bears
an annual interest rate equivalent to LIBOR plus 1.90%.
The company also entered into an interest rate swap to convert
the term loan LIBOR rate to a fixed interest rate. The transaction
will provide the EastGroup a fixed interest rate of 2.92% per annum
as of closing.
On a separate development, EastGroup declared the acquisition of a
distribution building -- Wiegman Distribution Center II -- located
in California, for $7.5 million. The 100% leased, property in
Hayward spans 84,000 square feet. The acquisition transaction
points to the fact that the company's overall property span in San
Francisco area will cover over $1.0 million square feet.
EastGroup engages in the development, acquisition and operation of
industrial properties in major Sunbelt markets across the United
States mainly in 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
As of June 30, 2012, the company's debt-to-total market
capitalization ratio was 33.8% and it had total debt of $795.0
million. EastGroup's portfolio currently includes properties
spanning over 30.5 million square feet of space situated across
major markets of U.S.
The company, which competes with
Lexington Realty Trust
), carries a Zacks #3 Rank signifying a short-term Hold rating. We
presently have a long-term Neutral recommendation on the stock.
EASTGROUP PPTYS (EGP): Free Stock Analysis
LEXINGTON PPTY (LXP): Free Stock Analysis
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