U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
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FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
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For Quarter Ended: March 31, 1997
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Commission File Number: 1 - 7094
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EASTGROUP PROPERTIES
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(Exact name of Registrant specified in its charter)
Maryland 13-2711135
- ------------------------------- ---------------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
300 One Jackson Place
188 East Capitol Street
P.O. Box 22728
Jackson, Mississippi 39201-2195
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(Address of principal executive offices) Zip Code
Issuer's telephone number, including area code (601) 354-3555
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- -----------------------------------------------------------------
Former name, former address and former fiscal year,
if changed since last report
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (
or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
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12,674,234 shares of beneficial interest ($1.00 par value) were
outstanding at May 12, 1997.
EASTGROUP PROPERTIES
FORM 10-Q
TABLE OF CONTENTS
FOR THE QUARTER ENDED MARCH 31, 1997
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Pages
Part I. Financial Information
Item 1. Consolidated financial statements
Consolidated balance sheets, March 31,
1997 and December 31, 1996 3
Consolidated statements of income for the
three months ended March 31, 1997 and 1996 4
Consolidated statements of cash flow for the
three months ended March 31, 1997 and 1996 5
Consolidated statements of changes in
shareholders' equity for the three months
ended March 31, 1997 and 1996 7
Notes to consolidated financial statements 8
Item 2. Management's discussion and analysis of
financial condition and results of operations 10
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K 17
Signatures
Authorized signatures
CONSOLIDATED BALANCE SHEETS
(In thousands, except per
share data)
March 31, December 31,
1997 1996
----------- ----------
(Unaudited)
Assets
Real estate properties:
Industrial $ 188,589 186,908
Industrial Development 3,933 1,925
Office Buildings 39,256 38,912
Apartments 37,624 37,494
------------ ----------
269,402 265,239
Less accumulated depreciation (24,832) (22,703)
------------ ----------
244,570 242,536
Real estate held for sale:
Land 585 585
Operating properties 14,323 14,293
less accumulated depreciation (969) (859)
Investment in joint venture 4,384 4,367
------------ ----------
18,323 18,386
Mortgage loans 11,871 12,503
Land purchase-leasebacks 527 527
Investment in real estate
investment trusts 2,912 934
Cash and cash equivalents 8,291 438
Other assets 6,617 6,131
------------ ---------
$ 293,111 281,455
============ =========
Liabilities and Shareholders' Equity
Liabilities
Mortgage notes payable $ 104,542 115,116
Notes payable to banks 881 13,962
Accounts payable and accrued expenses 1,963 2,893
Minority interests 3,215 3,141
Other liabilities 1,039 1,017
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111,640 136,129
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Shareholders' Equity
Shares of beneficial interest, par
value $1.00 per share; authorized
20,000,000 shares; issued 12,673,503
shares in 1997 and 10,548,965 in 1996 12,674 10,549
Additional paid-in-capital 158,582 123,780
Undistributed earnings 9,945 10,997
Unrealized gain on securities 270 -
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181,471 145,326
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$ 293,111 281,455
============ =========
See accompanying notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
--------------------------
1997 1996
----------- ----------
Revenues
Income from real estate operations $ 11,197 $ 6,853
Interest:
Mortgage loans 520 246
Other 85 -
Other 187 313
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11,989 7,412
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Expenses
Operating expenses from
real estate operations 3,332 2,741
Interest expense 2,436 1,527
Depreciation and amortization 2,394 1,424
Minority interests in joint ventures 158 32
General and administrative expenses 694 512
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9,014 6,236
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Income before gains on investments 2,975 1,176
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Gains on investments
Real estate 112 1,353
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Net Income $ 3,087 $ 2,529
=========== ==========
Net Income per share of
beneficial interest $ .26 $ .40
=========== ==========
Weighted average shares outstanding 11,722 6,353
=========== ==========
See accompanying notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF CASH FLOW (Unaudited)
(In thousands)
Three Months Ended
March 31,
--------------------------
1997 1996
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Operating Activities
Net income $ 3,087 $ 2,529
Adjustments to reconcile
net income to net cash provided
by operating activities:
Depreciation and amortization 2,394 1,424
Gain on investments, net (112) (1,353)
Other (44) -
Changes in operating assets
and liabilities:
Accrued income and other assets (1,606) (1,145)
Accrued payable, accrued expenses
and other liabilities (545) (592)
----------- ----------
Net cash provided by
operating activities 3,174 863
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Investing Activities
Payments on mortgage loans receivable,
net of amortization of loan discounts 632 -
Sale of real estate investments - 4,146
Real estate development (2,008) -
Purchases of real estate (1,083) -
Purchases of real estate investment
trust shares (1,708) -
Purchases of real estate improvements (1,101) (1,249)
Return of capital dividends - -
Change in other investment assets 918 -
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Net cash (used in) provided by
investing activities (4,350) 2,897
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Financing Activities
Proceeds from bank borrowings 18,605 5,119
Proceeds from mortgage notes payable 9,250 -
Principal payments on bank borrowings (31,686) (3,438)
Principal payments on mortgage notes
payable (19,823) (3,456)
Distributions paid to shareholders (4,139) (1,995)
Purchases of shares of beneficial
interest (150) -
Net proceeds from issuance of shares
of beneficial interest 36,654 -
Proceeds on exercise of stock options 254 128
Proceeds from dividend
reinvestment plan 64 -
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Net cash provided by (used in)
financing activities 9,029 (3,642)
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Increase in cash and cash equivalents 7,853 118
Cash and cash equivalents at
beginning of period 438 26
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Cash and cash equivalent at
end of period $ 8,291 $ 144
=========== ==========
Supplemental Cash Flow Information:
Cash paid for interest 2,453 1,434
See accompanying notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
(Unaudited)
(In thousands, except for per share data)
Three Months Ended
March 31,
--------------------------
1997 1996
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Shares of beneficial interest,
$1.00 par value
Balance at beginning $ 10,549 $ 6,347
Issuance of shares 2,100 -
Exercise of options 23 11
Purchase and retirement
of shares (8) -
Issuance of shares,
incentive compensation 7 10
Issuance of shares in
dividend reinvestment plan 3 -
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Balance at end of period 12,674 6,368
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Additional paid-in-capital
Balance at beginning 123,780 66,229
Issuance of shares 34,554 -
Exercise of options 232 117
Purchase and retirement
of shares (142) -
Issuance of shares,
incentive compensation 97 117
Issuance of shares in
dividend reinvestment plan 61 -
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Balance at end of period 158,582 66,463
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Undistributed earnings
Balance at beginning of period 10,997 9,657
Net income 3,087 2,529
Cash dividends declared:
$.33 per share in 1997, and
$.32 per share in 1996 (4,139) (1,995)
----------- ----------
Balance at end of period 9,945 10,191
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Unrealized gain on securities
Balance at beginning of period - 667
Change in unrealized gain 270 1,156
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Balance at end of period 270 1,823
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Total shareholders' equity $ 181,471 $ 84,845
=========== ==========
See accompanying notes to consolidated financial statements
Notes to Consolidated Financial Statements (Unaudited)
(1) Basis of Presentation
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X.
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals)
considered necessary for a fair presentation have been included.
The financial statements should be read in conjunction with the
annual report and the notes thereto.
(2) Reclassifications
Certain reclassifications have been made in the fiscal 1996
financial statements to conform to the fiscal 1997
classifications.
(3) Share Split
On March 20, 1997, the Trust announced that its Board of
Trustees approved a three-for-two share split in the form of a
share dividend of one share for every two shares outstanding.
The share dividend will be distributed on April 7, 1997 to
shareholders of record as of March 31, 1997. All share and per
share amounts have been restated to recognize the split.
(4) Subsequent Events
The Trust purchased the following industrial properties
subsequent to March 31, 1997:
Date Purchase
Property Location Size acquired price
- ----------- ---------- -------------- -------- ----------
Palm River I Tampa, FL 72,000 sq. ft. 4-30-97 $2,660,000
Palm River II
- land Tampa, FL - 4-30-97 652,000
West Loop II Houston, TX 77,000 sq. ft. 5-02-97 2,960,000
Lockwood Houston, TX 392,000 sq. ft 5-09-97 6,200,000
-----------
$12,472,000
===========
The Trust has entered into contracts to purchase three industrial
properties located in Jackson, Mississippi, Tucson, Arizona and
Fort Lauderdale, Florida. The total investment in these
properties is estimated to be $13,178,000 and the closings are
scheduled for June 1997.
(5) Accounting Changes
In February 1997, the Financial Accounting Standards Board
(FASB) issued SFAS No. 128, "Earnings per Share". SFAS No. 128
establishes standards for computing and presenting earnings per
share and applies to entities with publicly held common stock or
potential common stock. This statement replaces the presentation
of primary earnings per share with a presentation of basic
earnings per share. It also requires dual presentation of basic
and diluted earnings per share on the face of the statement of
operations for all entities with complex capital structures and
requires a reconciliation between basic and diluted earnings per
share. SFAS No. 128 is effective for fiscal years ending after
December 15, 1997, the adoption of this statement is not expected
to have a material impact on the 1997 consolidated financial
statements.
Also in February 1997, the FASB issued SFAS No. 129,
"Disclosure of Information about Capital Structure". This
statement establishes standards for disclosing information about
an entity's capital structure. This statement is effective for
fiscal years ending after December 15, 1997. The adoption of
this statement is not expected to have a material impact on the
1997 consolidated financial statements.
(6) Forward Looking Statements
Certain statements contained in this Form 10-Q may be deemed
to be forward-looking statements within the meaning of the
federal securities laws. Although the Company believes that the
expectations reflected in such forward-looking statements are
based upon reasonable assumptions, it can give no assurance that
its expectations will be achieved. Factors that could cause
actual results to differ materially from the Company's current
expectations include general economic conditions, local real
estate conditions, the performance of properties that the Company
has acquired or may acquire and other risks, detailed from time
to time in the Company's past and future SEC reports.
EASTGROUP PROPERTIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION:
On March 20, 1997, the Trust announced that its Board of
Trustees approved a three-for-two share split in the form of a
share dividend of one share for every two shares outstanding.
The share dividend will be distributed on April 7, 1997 to
shareholders of record as of March 31, 1997. All shares and per
share amounts have been restated to recognize the split.
(Comments are for the balance sheet dated March 31, 1997,
compared to December 31, 1996.)
Assets of EastGroup Properties ("EastGroup" or the "Trust")
were $293,111,000 at March 31, 1997, an increase of $11,656,000
from December 31, 1996. Liabilities decreased $24,489,000 to
$111,640,000 during the same period. Book value per share
increased from $13.78 at December 31, 1996 to $14.32.
Real estate properties and real estate held for sale
increased $4,193,000 during the first quarter of 1997 as a result
of the following (in thousands):
Real estate acquired
Interchange A Distribution Center $1,082,000
Capital improvements on
Trust properties 1,101,000
Development costs
Rampart Distribution II 608,000
Chancellor Center 598,000
Walden Distribution-land 802,000
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$4,193,000
==========
The Trust acquired the Interchange A Distribution Center, a
33,000 square foot industrial complex in Jackson, Mississippi and
the Walden Distribution land in Tampa, Florida in March 1997.
The Trust will begin construction of the 122,300 square foot
Walden Distribution Center, the first building of a two building
complex in May 1997. In addition, the Trust is developing the
Rampart Distribution Center II, a 66,000 square foot industrial
building on land adjacent to Rampart Distribution Center I in
Denver, Colorado, at an estimated cost of approximately
$3,250,000, and the Chancellor Distribution Center, a 51,100
square foot industrial building on land adjacent to the rear of
Exchange Distribution Center in Orlando, Florida, at an estimated
cost of approximately $1,900,000.
Accumulated depreciation on real estate properties and real
estate held for sale increased due to depreciation expense of
$2,239,000.
Mortgage loans receivable decreased $632,000 during the
first quarter of 1997 as a result of the payoff of the Baygreen
mortgage note receivable (acquired in the Copley merger) of
$700,000 and principal payments received of $82,000. These
decreases were offset by the amortization of loan discounts of
$150,000.
Investments in real estate investment trusts increased from
$934,000 at December 31, 1996 to $2,912,000 at March 31, 1997.
This increase was due to $1,708,000 in purchases of stock in
another real estate investment trust. Also, the Trust recognized
an unrealized gain of $270,000 on the Trust's available-for-sale
securities in accordance with Statement of Financial Accounting
Standards No. 115, "Accounting for Certain Investments in Debt
and Equity Securities."
Mortgage notes payable decreased $10,574,000 during the
first quarter of 1997, as a result of regularly scheduled
principal payments of $538,000, and the payoff of the following
mortgages: $2,524,000 on the Nobel Center mortgage, $5,138,000 on
the Dominguez Distribution Center mortgage, $3,373,000 on the
Metro Business Park mortgage and $8,250,000 on the University
Business Center mortgage. These decreases were offset by the
placement of a $9,250,000 mortgage on the University Business
Center with an interest rate of 7.45%, monthly principal and
interest of $74,235 and a maturity date of February 28, 2002.
Notes payable to banks decreased from $13,962,000 at
December 31, 1996 to $881,000 at March 31, 1997, as a result of
borrowings of $18,605,000 and payments of $31,686,000. As of
March 31, 1997, the acquisition line had a balance of $0 and the
working capital line had a balance of $881,000. The interest rate
on both the working capital line and the acquisition line at
March 31, 1997 was LIBOR plus 1.85% (or 7.225%). On March 27,
1997, the Trust renegotiated the interest rate on both the
working capital line and the acquisition line and reduced the
rates effective April 9, 1997 to LIBOR plus 1.75%.
Shares of beneficial interest increased 2,124,538 shares as
a result of 2,100,000 shares issued under an existing shelf
registration, 22,875 stock options exercised, 8,268 shares
retired, 6,490 shares issued in payment of incentive compensation
and 3,441 shares issued in the Trust's dividend reinvestment
plan.
Unrealized gain on securities increased $270,000 as a result
of unrealized gain recorded on the Trust's investment in
accordance with Statement of Financial Accounting Standards No.
115, "Accounting for Certain Investments in Debt and Equity
Securities."
Undistributed earnings decreased from $10,997,000 at
December 31, 1996 to $9,945,000 at March 31, 1997, as a result of
dividends of $4,139,000 exceeding net income for financial
reporting purposes of $3,087,000.
RESULTS OF OPERATIONS:
(Comments are for the three months ended March 31, 1997, compared
to the three months ended March 31, 1996.
Net income for the three months ended March 31, 1997 was
$3,087,000 ($.26 per share), compared to net income for the three
months ended March 31, 1996 of $2,529,000 ($.40 per share).
Income before gains on investments was $2,975,000 and $1,176,000
for the three months ended March 31, 1997 and 1996. Gains on
investments were $112,000 and $1,353,000 for the three months
ended March 31, 1997 and 1996.
Property net operating income (PNOI) from real estate
properties, defined as income from real estate operations less
property operating expenses (before interest expense and
depreciation) increased by $3,753,000 or 91% for the three months
ended March 31, 1997, compared to the three months ended March
31, 1996.
Property net operating income (loss) and percentage leased
by property type were as follows:
PNOI Percent
Three Months Ended Leased
------------------ ------
1997 1996 1997
------ ------ ------
(In thousands)
Industrial $ 5,274 2,133 97%
Office Buildings 1,463 705 90%
Apartments 938 1,281 99%
Other 190 (7)
------- ------
Total PNOI $ 7,865 4,112
======= ======
PNOI from industrial properties increased $3,141,000 for the
three months ended March 31, 1997, compared to March 31, 1996.
Industrial properties held throughout the three months ended
March 31, 1997 and 1996, showed an increase in PNOI of 1.6% for
1997 compared to 1996. PNOI from industrial properties increased
$2,698,000 for the three months ended March 31, 1997, as a result
of the industrial properties received in the mergers with LNH and
Copley. Also contributing to this increase in PNOI from
industrial properties was the acquisition of Walnut Business
Center, a 234,070 square foot industrial complex in Fullerton,
California, in August 1996 and Braniff Park West, a 259,352
square foot industrial complex in Tulsa, Oklahoma, in September
1996.
PNOI from the Trust's office buildings increased $758,000
for the three months ended March 31, 1997, compared to March 31,
1996. The increase for the three months ended March 31, 1997 is
due primarily to the PNOI of $625,000 from the office buildings
received in the merger with Copley, and the increase of 18.9% in
PNOI from office properties held throughout the three months
ended March 31, 1997 and 1996.
PNOI from the Trust's apartment properties decreased
$343,000 for the three months ended March 31, 1997, compared to
March 31, 1996. This decrease is primarily attributable to the
sale of the Garden Villa Apartments in January 1996, the Pin Oaks
and EastGate Apartments in November 1996 and the Plantation
Apartments in December 1996. Apartment properties held
throughout the three months ended March 31, 1997 and 1996 showed
an increase in PNOI of 1.4%.
Interest income on mortgage loans increased $274,000 for the
three months ended March 31, 1997 compared to 1996. The
following is a breakdown of interest income for the three months
ended March 31, 1997 compared to 1996:
March 31,
---------------------
1997 1996
--------- --------
(In thousands)
Interest income from:
Land mortgage loans $ 225 -
Apartment mortgage loans 131 129
Motel mortgage loans 93 108
Other mortgage loans 68 5
25% joint venture
mortgage loans 3 4
------- -------
$ 520 246
======= =======
Interest income from land mortgage loans increased as a result of
interest income on loans received in the merger with LNH. The LNH
loans were discounted to present value at the merger date. This
discount is being amortized over the life of the loans and
amounted to $101,000 for the three months ended March 31, 1997
and is included in interest income. Due to uncertainty of
collection, interest income from the motel mortgage loans is
recorded as received, and the notes have been written down to
their net realizable value. Other mortgage loans increased
primarily as a result of interest income on loans received in the
mergers with LNH and Copley.
Interest expense increased $909,000 for the three months
ended March 31, 1997 compared to 1996. Average bank borrowings
were $8,895,000 during the three months ended March 31, 1997
compared to $3,970,000 during the same period of 1996. Bank
interest rates at March 31, 1997 and 1996 were 7.225%(LIBOR plus
1.85%)and 7.0309% (LIBOR plus 2.0%), respectively. Interest
expense on real estate properties increased primarily as a result
of the new UBC mortgage and the mortgages assumed in the Copley
merger. This increase in interest expense was offset by the
payoff of the Nobel Center mortgage and the sale of the Garden
Villa Apartments and the Plantations Apartments in 1996.
Depreciation and amortization increased $970,000 for the
three months ended March 31, 1997 compared to 1996, primarily as
a result of the properties acquired in the Copley and LNH
mergers, offset by the sale of the Garden Villa Apartments, the
Pin Oaks Apartments, Plantations Apartments and the EastGate
Apartments.
The increase in general and administrative expenses from
$512,000 for the three months ended March 31, 1996 to $694,000
for the three months ended March 31, 1997 is primarily due to an
increase in costs as a result of the Copley and LNH mergers.
In March 1997, the Trust recognized deferred gains of
$112,000 from previous sales. In January 1996, the Trust sold
the Garden Villa Apartments in Seattle, Washington for a net
sales price of $4,068,000 and the assumption of debt of
$3,132,000, and for financial reporting purposes recognized a
gain of $1,353,000.
NAREIT has recommended supplemental disclosures concerning
capital expenditures, leasing costs, financing costs and straight-
line rents. The Trust expenses apartment unit turnover cost such
as carpet, painting and small appliances. Capital expenditures
for the three months ended March 31, 1997 and 1996 by category
are as follows:
March 31,
------------------
1997 1996
-------- -------
(In thousands)
Upgrades on acquisitions $ 197 76
New development 2,008 -
Major renovation 41 671
Tenant improvements:
New tenants 390 282
Renewal tenants 219 88
Other 254 132
------- -------
$ 3,109 1,249
======= =======
The Trust's leasing costs are capitalized and included in other
assets. The costs are amortized over the life of the lease and
are included in depreciation and amortization expense. A summary
of these costs is as follows:
Three Months Ended
March 31,
-----------------
1997 1996
------- -------
(In thousands)
Capitalized leasing costs:
New tenants (old space) $ 105 106
New tenants (first generation) 24 -
Renewal tenants 121 94
------ ------
$ 250 200
====== ======
Amortization of
leasing costs $ 154 131
====== ======
Liquidity and Capital Resources
Net cash provided by operating activities was $3,174,000 for
the three months ended March 31, 1997. The Trust distributed
$4,139,000 in dividends. Other sources of cash were collections
on mortgage loan receivables, mortgage borrowings and bank
borrowings. Primary uses of cash were for capital improvements
at the various properties, construction and development of
properties, purchases of real estate investments, bank debt
payments, mortgage note payments and purchases of real estate
investment trust shares. Total debt at March 31, 1997 is as
follows:
March 31,
-------------------
1997 1996
--------- --------
(In thousands)
Mortgage notes payable - fixed rate $ 104,542 63,747
Bank notes payable - floating rate 881 6,040
--------- --------
Total debt $ 105,423 69,787
========= ========
The Trust currently has a working capital line of credit of
$20,000,000 and an acquisition line of credit of $15,000,000
available for the acquisition of properties and other working
capital requirements. The interest rate on both the working
capital line and the acquisition line at March 31, 1997 was LIBOR
plus 1.85% (or 7.225%). On March 27, 1997, the Trust renegotiated
the interest rate on both the working capital line and the
acquisition line and reduced the rates effective April 9, 1997 to
LIBOR plus 1.75%. There is also a .125% fee on the unused amount
of the $20 million credit line and the $15 million acquisition
credit line. As of March 31, 1997, the acquisition line had a
balance of $0 and the working capital line had a balance of
$881,000. Also, the working capital line and the acquisition line
mature September 30, 1997 and April 30, 1999, respectively.
Budgeted capital expenditures for the year ending December
31, 1997 are as follows:
(In thousands)
--------------
Upgrades on acquisitions $ 372
Major renovations 216
New development 14,623
Tenant Improvements:
New tenants 1,935
New tenants - first generation 412
Renewal tenants 328
Other 1,087
-------------
$ 18,973
=============
The Trust anticipates that its current cash balance,
operating cash flows and borrowings (including borrowings under
the working capital line of credit) will be adequate to pay the
Trust's (i) operating and administrative expenses, (ii) debt
service obligations, (iii) distributions to shareholders, (iv)
capital improvements, (v) purchases of properties and (vi) normal
repair and maintenance expenses at its properties both in the
short and long term.
On February 4, 1997, the Trust announced the offering of
1,875,000 shares of Beneficial Interest under its existing shelf
registration statement. The shares were sold to institutional
investors. The net proceeds of the offering (approximately
$32,703,000, net of underwriting commissions and expenses) were
used for the repayment of approximately $30,000,000 of
outstanding indebtedness and to fund working capital
requirements, including the acquisition of industrial properties.
On February 28, 1997, the underwriter notified the Trust of its
intention to exercise its over-allotment option to purchase an
additional 225,000 shares. This transaction closed on February
28, 1997 and the Trust received net proceeds of $3,951,000 for
working capital requirements.
On March 20, 1997, the Trust purchased Interchange A (33,000
square feet) in Jackson, Mississippi for a total investment of
approximately $1,082,000.
On March 20, 1997, the Trust announced that its Board of
Trustees approved a three-for-two share split in the form of a
share dividend of one share for every two shares outstanding.
The share dividend will be distributed on April 7, 1997 to
shareholders of record as of March 31, 1997. All share and per
share amounts have been restated to recognize the split.
The Trust has entered into contracts to purchase three
industrial properties located in Jackson, Mississippi, Tucson,
Arizona and Fort Lauderdale, Florida. The total investment in
these properties is estimated to be $13,178,000 and the closings
are scheduled for June 1997.
EASTGROUP PROPERTIES
PART II. OTHER INFORMATION
Item 6. Exhibits and reports on Form 8-K
(a) Exhibit 27 - Financial Data Schedule attached
hereto.
(b) Reports on Form 8-K
None
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
DATED: May 15, 1997
EASTGROUP PROPERTIES
\s\ Diane W. Hayman
- ------------------------
Diane W. Hayman, CPA
Controller
\s\ N. Keith McKey
- ----------------------
N. Keith McKey, CPA
Executive Vice President,
Chief Financial Officer
and Secretary