FOR MORE INFORMATION, CONTACT:
David H. Hoster II, President and Chief Executive Officer
N. Keith McKey, Chief Financial Officer
(601) 354-3555
Jackson, Mississippi, September 7, 2006– EastGroup Properties (NYSE-EGP) announced today that it has agreed to sell 1.25 million shares of common stock to Citigroup Global Markets, Inc. The Company intends to use the proceeds of approximately $60 million to repay borrowings under its credit facility.
EastGroup Properties, Inc. has granted the underwriter a thirty-day option to purchase up to 187,500 additional shares to cover over-allotments, if any.
Citigroup Global Markets, Inc. acted as sole book running manager for the offering. This communication shall not constitute an offer to sell nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration on qualification under the securities laws of any such state or other jurisdiction. A copy of the prospectus relating to these securities may be obtained, when available, from Citigroup Global Markets Inc., Attn: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220.
EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, California and Arizona. The Company’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup’s portfolio currently includes 21.5 million square feet with an additional 1,364,000 square feet of properties under development.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
P.O. Box 22728, Jackson, MS 39225-2728
Telephone: 601/354-3555 Fax: 601/352-1441