6 unchanged sentences
The Company’s interest rate swaps are discussed in Note 14 in the Notes to Consolidated Financial Statements.
−Removed: The table below presents the principal payments due and weighted average interest rates, which include the impact of interest rate swaps, for both the fixed-rate and variable-rate debt as of September 30, 2022.
−Removed: October – December 2022
+Added: The table below presents the principal payments due and weighted average interest rates, which include the impact of interest rate swaps, for both the fixed-rate and variable-rate debt as of March 31, 2023.
+Added: April – December 2023
2025 2026 2027 Thereafter Total Fair Value
10 unchanged sentences
Weighted average interest rate 3.85 % 3.85 % 3.85 % 3.85 % — — 3.85 %
−Removed: (1) The variable-rate unsecured bank credit facilities mature in July 2025 and as of September 30, 2022, have balances of $120,000,000 on the $425 million unsecured bank credit facility and $35,883,000 on the $50 million unsecured bank credit facility.
+Added: (1) The variable-rate unsecured bank credit facilities mature in July 2025 and as of March 31, 2023, have balances of $55,000,000 on the $625,000,000 unsecured bank credit facility and $17,027,000 on the $50,000,000 unsecured bank credit facility.
+Added: These balances fluctuate based on Company operations and capital activity, as discussed in Liquidity and Capital Resources .
(2) The fair value of the Company’s variable rate debt is estimated by discounting expected cash flows at current market rates, excluding the effects of debt issuance costs.
−Removed: (3) Represents the weighted average interest rate for the Company’s variable rate unsecured bank credit facilities as of September 30, 2022.
+Added: (3) Represents the weighted average interest rate for the Company’s variable rate unsecured bank credit facilities as of March 31, 2023.
(4) The fair value of the Company’s fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, is estimated by discounting expected cash flows at the rates currently offered to the Company for debt of the same remaining maturities, as advised by the Company’s bankers, excluding the effects of debt issuance costs.
−Removed: As the table above incorporates only those exposures that existed as of September 30, 2022, it does not consider those exposures or positions that could arise after that date.
+Added: As the table above incorporates only those exposures that existed as of March 31, 2023, it does not consider those exposures or positions that could arise after that date.
If the weighted average interest rate on the variable rate unsecured bank credit facilities, as shown above, changes by 10% or approximately 57 basis points, interest expense and cash flows would increase or decrease by approximately $411,000 annually.
This does not include variable-rate debt that has been effectively fixed through the use of interest rate swaps.
−Removed: The Company’s unsecured bank credit facilities and two of its unsecured term loans and related interest rate swaps are indexed to LIBOR.
−Removed: For a discussion of the risks associated with the discontinuation of LIBOR, see “Risk Factors—Financing Risks—The discontinuation of LIBOR and the replacement of LIBOR with an alternative reference rate may adversely affect our borrowing costs and could impact our business and results of operations” in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021.
Most of the Company’s leases include scheduled rent increases.
4 unchanged sentences
It may also impact the Company’s ability to (i) renew leases or re-lease space as leases expire, or (ii) lease development space.
−Removed: In addition, an economic downturn or recession could also lead to an increase in overall vacancy rates or a decline in
−Removed: rents the Company can charge to re-lease properties upon expiration of current leases.
+Added: In addition, an economic downturn or recession could also lead to an increase in overall vacancy rates or a decline in rents the Company can charge to re-lease properties upon expiration of current leases.
In all of these cases, EastGroup’s cash flows would be adversely affected.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.