EastGroup Properties, Inc. (EGP) closed a $250 million senior unsecured term loan on December 8 2025, structured as a $100 million tranche maturing April 30 2030 and a $150 million tranche maturing March 14 2031. The loan carries a weighted‑average fixed rate of 4.15%, achieved through interest‑rate swap agreements that convert the floating SOFR‑based rate to a fixed rate for the entire term.
The financing provides EGP with additional liquidity to fund its development pipeline and potential acquisitions, while the fixed‑rate structure mitigates interest‑expense volatility in a rising‑rate environment. The loan aligns with the company’s strategy of building and acquiring high‑quality distribution facilities in Sunbelt shallow‑bay markets, where demand for location‑sensitive, low‑to‑mid‑size warehouses remains strong.
EGP’s balance sheet remains robust after the transaction. The debt‑to‑EBITDA ratio is 3.0x, down from 3.20x in the third quarter of 2024 and 4.2x in 2023, reflecting disciplined capital allocation and a focus on high‑growth markets. Interest coverage stands at 16.8x, compared with 15.9x for the nine months ended September 30 2025, underscoring the company’s ability to service debt comfortably even as it expands its portfolio.
CEO Marshall Loeb said the new debt placement “further fuels growth opportunities” and highlighted the company’s confidence in a declining industrial construction pipeline and rising demand. He also noted that the financing complements a $1 billion at‑market equity program announced earlier in December and an amendment to the $625 million unsecured credit facility that removed a 0.10% upward adjustment for SOFR loans.
While no specific analyst reaction was documented, the transaction signals management’s confidence in long‑term growth prospects and provides a cushion against interest‑rate swings. The fixed‑rate structure and strong financial ratios position EGP to capture opportunities in its core Sunbelt markets as demand for shallow‑bay distribution space continues to outpace supply.
The $250 million term loan strengthens EastGroup’s balance sheet, giving it the flexibility to accelerate development and acquisition plans while maintaining a healthy debt profile in a low‑interest‑rate climate.
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