What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-04-26 compared with 2022-10-26 · 136 added, 281 removed, 544 unchanged (43% of the section changed)

4 unchanged sentences

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

September 30,

2023 December 31,

4 unchanged sentences

3,824,300 3,783,607

Real estate assets held for sale — 5,695

Unconsolidated investment 7,507 7,230

13 unchanged sentences

70,000,000 shares authorized;

43,573,951 shares issued and outstanding at September 30, 2022 and 41,268,846 at December 31, 2021

44,242,699 shares issued and outstanding at March 31, 2023 and 43,575,539 at December 31, 2022

Excess shares;

14 unchanged sentences

(IN THOUSANDS, EXCEPT PER SHARE DATA)

Three Months Ended Nine Months Ended

September 30, September 30,

2022 2021 2022 2021

Three Months Ended

Income from real estate operations $ 133,964 112,952

14 unchanged sentences

COMMON STOCKHOLDERS 44,690 63,580

Other comprehensive income - interest rate swaps 17,157 1,325 39,826 8,276

Other comprehensive income (loss) - interest rate swaps ( 10,262 ) 15,828

TOTAL COMPREHENSIVE INCOME $ 34,428 79,408

12 unchanged sentences

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

For the nine months ended September 30, 2022:

For the three months ended March 31, 2023:

Common Shares Additional

14 unchanged sentences

— ( 4,836 ) — — — ( 4,836 )

Net distributions to noncontrolling interest — — — — ( 58 ) ( 58 )

BALANCE, MARCH 31, 2022 4 1,956,328 ( 300,429 ) 17,130 1,356 1,674,389

Net income — — 46,139 — 26 46,165

Net unrealized change in fair value of interest rate swaps — — — 6,841 — 6,841

Common dividends declared – $ 1.10 per

— — ( 48,034 ) — — ( 48,034 )

Stock-based compensation, net of forfeitures

— 3,062 — — — 3,062

Issuance of 1,868,809 shares of common

stock, net of expenses, in the purchase of real estate

— 303,682 — — — 303,682

Net distributions to noncontrolling interest — — — — ( 31 ) ( 31 )

BALANCE, JUNE 30, 2022 4 2,263,072 ( 302,324 ) 23,971 1,351 1,986,074

Net income — — 37,792 — 25 37,817

Net unrealized change in fair value of interest rate swaps — — — 17,157 — 17,157

Common dividends declared – $ 1.25 per

— — ( 54,531 ) — — ( 54,531 )

Stock-based compensation, net of forfeitures

— 2,855 — — — 2,855

Issuance of 6,368 shares of common

stock, common stock offering, net of

— 1,010 — — — 1,010

Withheld 46 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock

1 unchanged sentence

Net distributions to noncontrolling interest — — — — ( 40 ) ( 40 )

BALANCE, SEPTEMBER 30, 2022 $ 4 2,266,831 ( 319,063 ) 41,128 1,286 1,990,186

See accompanying Notes to Consolidated Financial Statements (unaudited).

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

For the nine months ended September 30, 2021:

BALANCE, MARCH 31, 2023 $ 4 2,355,476 ( 345,622 ) 26,109 415 2,036,382

For the three months ended March 31, 2022:

Common Shares Additional

Paid-In Capital Distributions in Excess of Earnings Accumulated Other Comprehensive Loss Noncontrolling Interest in Joint Ventures Total

Paid-In Capital Distributions in Excess of Earnings Accumulated Other Comprehensive Income Noncontrolling Interest in Joint Ventures Total

BALANCE, DECEMBER 31, 2021 $ 4 1,886,820 ( 318,056 ) 1,302 1,390 1,571,460

14 unchanged sentences

BALANCE, MARCH 31, 2022 $ 4 1,956,328 ( 300,429 ) 17,130 1,356 1,674,389

Net income — — 27,558 — 20 27,578

Net unrealized change in fair value of interest rate swaps — — — ( 1,263 ) — ( 1,263 )

Common dividends declared – $ 0.79 per

— — ( 31,981 ) — — ( 31,981 )

Stock-based compensation, net of forfeitures

— 2,893 — — — 2,893

Issuance of 370,177 shares of common

stock, common stock offering, net of

— 59,318 — — — 59,318

Net distributions to noncontrolling interest — 5 — — ( 17 ) ( 12 )

BALANCE, JUNE 30, 2021 4 1,714,661 ( 338,423 ) ( 3,801 ) 890 1,373,331

Net income — — 30,771 — 21 30,792

Net unrealized change in fair value of interest rate swaps — — — 1,325 — 1,325

Common dividends declared –$ 0.90 per

— — ( 36,726 ) — — ( 36,726 )

Stock-based compensation, net of forfeitures

— 2,461 — — — 2,461

Issuance of 278,893 shares of common

stock, common stock offering, net of

— 48,626 — — — 48,626

Net distributions to noncontrolling interest — — — — ( 69 ) ( 69 )

BALANCE, SEPTEMBER 30, 2021 $ 4 1,765,748 ( 344,378 ) ( 2,476 ) 842 1,419,740

See accompanying Notes to Consolidated Financial Statements (unaudited).

3 unchanged sentences

(IN THOUSANDS)

Nine Months Ended September 30,

Three Months Ended March 31,

OPERATING ACTIVITIES

4 unchanged sentences

Gain on sales of real estate investments ( 4,809 ) ( 30,352 )

Gain on sales of non-operating real estate ( 81 ) —

Gain on casualties and involuntary conversion on real estate assets ( 1,027 ) —

Changes in operating assets and liabilities:

1 unchanged sentence

Accounts payable, accrued expenses and prepaid rent 9,674 9,380

Other 602 1,263

NET CASH PROVIDED BY OPERATING ACTIVITIES 93,461 82,264

1 unchanged sentence

Development and value-add properties ( 64,112 ) ( 127,112 )

Purchases of real estate ( 2,049 ) ( 104,006 )

Real estate improvements ( 15,777 ) ( 9,840 )

15 unchanged sentences

Other ( 4,824 ) ( 7,372 )

NET CASH PROVIDED BY FINANCING ACTIVITIES 109,458 79,575

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ( 19,304 ) 33,206

INCREASE IN CASH AND CASH EQUIVALENTS 9,334 1,325

5 unchanged sentences

Cash paid for operating lease liabilities 569 515

Common stock issued in the purchase of real estate 303,682 —

Debt assumed in the purchase of real estate 60,000 —

NON-CASH OPERATING ACTIVITY

Operating lease liabilities arising from obtaining right of use assets $ 398 13,056

See accompanying Notes to Consolidated Financial Statements (unaudited).

11 unchanged sentences

(2) PRINCIPLES OF CONSOLIDATION

The consolidated financial statements include the accounts of EastGroup, its wholly owned subsidiaries and its investment in any joint ventures in which the Company has a controlling interest.

As of September 30, 2022 and December 31, 2021, EastGroup held a controlling interest in two joint venture arrangements.

In 2019, the Company acquired 6.5 acres of land in San Diego, known by the Company as the Miramar land.

Also in 2019, the Company acquired 41.6 acres of land in San Diego, known by the Company as the Otay Mesa land.

During the year ended December 31, 2021, EastGroup began construction of Speed Distribution Center, a 519,000 square foot building on the Otay Mesa land, which was completed and transferred to the Company’s operating portfolio during the three months ended March 31, 2022.

As of September 30, 2022 and December 31, 2021, EastGroup had a 95 % controlling interest in the Miramar land and a 99 % controlling interest in Speed Distribution Center.

The consolidated financial statements include the accounts of EastGroup, its wholly owned subsidiaries and the investee of any joint ventures in which the Company has a controlling interest.

As of March 31, 2023 and December 31, 2022, EastGroup had a 95 % controlling interest in one joint venture arrangement, which owns 6.5 acres of land in San Diego, known by the Company as the Miramar land.

During the year ended December 31, 2022, EastGroup acquired the 1 % noncontrolling interest in Speed Distribution Center, a 519,000 square foot building in San Diego, in which the Company held a 99 % controlling interest.

The Company continues to control and own 100 % of the property.

The Company records 100 % of the assets, liabilities, revenues and expenses of the buildings and land held in joint ventures with the noncontrolling interests provided for in accordance with the joint venture agreements.

6 unchanged sentences

The Company’s primary revenue is rental income from business distribution space.

The table below presents the components of Income from real estate operations for the three and nine months ended September 30, 2022 and 2021:

Three Months Ended

September 30, Nine Months Ended September 30,

2022 2021 2022 2021

The table below presents the components of Income from real estate operations for the three months ended March 31, 2023 and 2022:

Three Months Ended March 31,

(In thousands)

8 unchanged sentences

Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows (including estimated future expenditures necessary to substantially complete the asset) expected to be generated by the asset.

If the carrying amount of an asset exceeds its estimated

If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset.

During the nine month periods ended September 30, 2022 and 2021, the Company did not identify any impairment charges which should be recorded.

value of the asset.

During the three month periods ended March 31, 2023 and 2022, the Company did not identify any impairment charges which should be recorded.

Depreciation of buildings and other improvements is computed using the straight-line method over estimated useful lives of generally 40 years for buildings and 3 to 15 years for improvements.

1 unchanged sentence

Significant renovations and improvements that improve or extend the useful life of the assets are capitalized.

Depreciation expense was $ 32,052,000 and $ 92,159,000 for the three and nine months ended September 30, 2022, respectively, and $ 26,599,000 and $ 77,604,000 for the same periods in 2021.

The Company’s Real estate properties and Development and value-add properties at September 30, 2022 and December 31, 2021 were as follows:

September 30,

Depreciation expense was $ 33,846,000 and $ 29,392,000 for the three months ended March 31, 2023 and 2022, respectively.

The Company’s Real estate properties and Development and value-add properties at March 31, 2023 and December 31, 2022 were as follows:

2023 December 31,

15 unchanged sentences

Acquired properties meeting either of the following two conditions are considered value-add properties:

(1) Less than 75 % occupied as of the acquisition date (or will be less than 75% occupied within one year of acquisition date based on near term lease roll), or (2) 20 % or greater of the acquisition cost will be spent to redevelop the property.

(1) Less than 75% occupied as of the acquisition date (or will be less than 75% occupied within one year of the acquisition date based on near term lease termination), or (2) 20% or greater of the acquisition cost will be spent to redevelop the property.

(6) DEVELOPMENT AND VALUE-ADD PROPERTIES

12 unchanged sentences

Criteria considered in grouping similar assets include geographic location, market and operational risks and the physical characteristics of the assets.

EastGroup determined that its real estate property acquisitions in 2021 and the first nine months of 2022 are considered to be acquisitions of groups of similar identifiable assets;

EastGroup determined that its real estate property acquisitions in 2022 are considered to be acquisitions of groups of similar identifiable assets;

therefore, the acquisitions are not considered to be acquisitions of a business.

As a result, the Company capitalized acquisition costs related to its 2022 acquisitions.

There were no real estate property acquisitions during the three months ended March 31, 2023.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

therefore, the acquisitions are not considered to be acquisitions of a business.

As a result, the Company capitalized acquisition costs related to its 2021 and 2022 acquisitions.

The FASB Codification also provides guidance on how to properly determine the allocation of the purchase price among the individual components of both the tangible and intangible assets based on their respective fair values.

4 unchanged sentences

The purchase price is also allocated among the following categories of intangible assets:

the above or below market component of in-place leases, the value of in-place leases, and the value of customer relationships.

the above or below market component of in-place leases and the value of leases in-place at the time of acquisition.

The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate reflecting the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be paid pursuant to the lease over its remaining term and (ii) management’s estimate of the amounts that would be paid using current market rents over the remaining term of the lease.

The amounts allocated to above and below market lease intangibles are included in Other assets and Other liabilities , respectively, on the Consolidated Balance Sheets and are amortized to rental income over the remaining terms of the respective leases.

The total amount of intangible assets is further allocated to in-place lease values and customer relationship values based upon management’s assessment of their respective values.

Factors considered by management in the allocation include an estimate of foregone rents and avoided leasing costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.

These intangible assets are included in Other assets on the Consolidated Balance Sheets and are amortized over the remaining term of the existing lease or the anticipated life of the customer relationship, as applicable.

Amortization expense for in-place lease intangibles was $ 2,541,000 and $ 7,204,000 for the three and nine months ended September 30, 2022, respectively, and $ 1,647,000 and $ 4,385,000 for the same periods in 2021.

Amortization of above and below market lease intangibles increased rental income by $ 605,000 and $ 1,957,000 for the three and nine months ended September 30, 2022, respectively, and $ 230,000 and $ 704,000 for the same periods in 2021.

In-place lease intangibles are valued based upon management’s assessment of factors such as an estimate of foregone rents and avoided leasing costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.

These intangible assets are included in Other assets on the Consolidated Balance Sheets and are amortized over the remaining term of the existing lease.

Amortization expense for in-place lease intangibles was $ 1,962,000 and $ 2,465,000 for the three months ended March 31, 2023 and 2022, respectively.

Amortization of above and below market lease intangibles increased rental income by $ 599,000 and $ 845,000 for the three months ended March 31, 2023 and 2022, respectively.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During the nine months ended September 30, 2022, EastGroup acquired the following properties:

There were no real estate property acquisitions during the three months ended March 31, 2023.

During 2022, EastGroup acquired the following properties:

REAL ESTATE PROPERTIES ACQUIRED IN 2022

27 unchanged sentences

The acquisition date fair value of the loan assumed was $ 60,000,000 , and the acquisition date fair value of the common shares, which was based on the closing share price on the acquisition date, was $ 303,756,000 .

(4) Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use.

Acquired properties meeting either of the following two conditions are considered value-add properties:

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which was acquired during the nine months ended September 30, 2022.

ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2022

(In thousands)

Land $ 127,402

Buildings and building improvements 335,335

Tenant and other improvements 11,502

Total real estate properties acquired 474,239

In-place lease intangibles (1)

Below market lease intangibles (2)

Total assets acquired, net of liabilities assumed $ 482,051

(1) In-place lease intangibles and above market lease intangibles are each included in Other assets on the Consolidated Balance Sheets.

These costs are amortized over the remaining lives of the associated leases in place at the time of acquisition.

(2) Below market lease intangibles are included in Other liabilities on the Consolidated Balance Sheets.

These costs are amortized over the remaining lives of the associated leases in place at the time of acquisition.

The leases in the properties acquired during the nine months ended September 30, 2022 had a weighted average remaining lease term at acquisition of approximately 3.9 years.

Also during the nine months ended September 30, 2022, the Company acquired 286.0 acres of development land in nine cities for $ 77,645,000 .

The land acquisitions in San Francisco and Sacramento were acquired in connection with the Company’s acquisition of Tulloch Corporation in June 2022.

(4) Value-add properties are defined in Note 5.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

During 2021, EastGroup acquired the following properties:

REAL ESTATE PROPERTIES ACQUIRED IN 2021 Location Size Date

Acquired Cost (1)

(Square feet) (In thousands)

Operating properties acquired (2)

Southpark Distribution Center 2 Phoenix, AZ 79,000 06/10/2021 $ 9,177

DFW Global Logistics Centre Dallas, TX 611,000 08/26/2021 89,829

Progress Center 3 Atlanta, GA 50,000 09/23/2021 5,000

Texas Avenue Austin, TX 20,000 10/15/2021 4,143

Total operating property acquisitions 760,000 108,149

Value-add properties acquired (3)

Access Point 1 Greenville, SC 156,000 01/15/2021 10,501

Northpoint 200 Atlanta, GA 79,000 01/21/2021 6,516

Access Point 2 Greenville, SC 159,000 05/19/2021 10,743

Cherokee 75 Business Center 2 Atlanta, GA 105,000 06/17/2021 8,837

Siempre Viva Distribution Center 3-6 San Diego, CA 547,000 12/01/2021 134,479

Total value-add property acquisitions 1,046,000 171,076

Total acquired assets 1,806,000 $ 279,225

(1) Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs.

(2) Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio;

included in Real estate properties on the Consolidated Balance Sheets.

(3) Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use.

Acquired properties meeting either of the following two conditions are considered value-add properties:

The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which were acquired during the year ended December 31, 2022.

4 unchanged sentences

Tenant and other improvements 11,502

Right of use assets — Ground leases (operating) 12,708

Total real estate properties acquired 474,239

In-place lease intangibles (1)

Above market lease intangibles (1)

Below market lease intangibles (2)

Operating lease liabilities — Ground leases (3)

Total assets acquired, net of liabilities assumed $ 482,051

3 unchanged sentences

These costs are amortized over the remaining lives of the associated leases in place at the time of acquisition.

(3) Operating lease liabilities - Ground leases are included in Other liabilities on the Consolidated Balance Sheets.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The leases in the properties acquired during the year ended December 31, 2022 had a weighted average remaining lease term at acquisition of approximately 3.9 years.

Also during 2021, the Company acquired 365.8 acres of development land in Austin, Houston, Charlotte, Greenville and Atlanta for $ 41,065,000 .

Also during 2022, EastGroup purchased 456.3 acres of development land in 10 cities for $ 123,717,000 .

The land acquisitions in San Francisco and Sacramento were acquired in connection with the Company’s acquisition of Tulloch Corporation in June 2022.

Also in the year ended December 31, 2022, the Company acquired the 1 % noncontrolling partnership interest in Speed Distribution Center in San Diego for $ 18,599,000 .

EastGroup continues to control and own 100 % of the property.

The Company periodically reviews the recoverability of goodwill (at least annually) and the recoverability of other intangibles (on a quarterly basis) for possible impairment.

No impairment of goodwill or other intangibles existed during the three and nine month periods ended September 30, 2022 and 2021.

No impairment of goodwill or other intangibles existed during the three month periods ended March 31, 2023 and 2022.

(8) REAL ESTATE SOLD AND HELD FOR SALE

1 unchanged sentence

Real estate properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale.

The Company did not classify any properties as held for sale as of September 30, 2022.

As of December 31, 2021, the Company owned one operating property that was classified as held for sale on the December 31, 2021 Consolidated Balance Sheet.

The property was sold, and a gain on the sale was recorded in the three months ended March 31, 2022.

The Company did not classify any properties as held for sale as of March 31, 2023 and December 31, 2022.

In accordance with ASC 360 and ASC 205, Presentation of Financial Statements , the Company would report a disposal of a component of an entity or a group of components of an entity in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component or group of components meets the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than by sale.

1 unchanged sentence

EastGroup performs an analysis of properties sold to determine whether the sales qualify for discontinued operations presentation.

The Company sold operating properties during the nine months ended September 30, 2022, as shown in the table below.

The results of operations and gains and losses on sales for the properties sold are reported in continuing operations on the Consolidated Statements of Income and Comprehensive Income.

The Company sold an operating property during the three months ended March 31, 2023, as shown in the table below.

The results of operations and gains and losses on sales for the property sold are reported in continuing operations on the Consolidated Statements of Income and Comprehensive Income.

The gains and losses on sales are included in Gain on sales of real estate investments.

The Company did not consider its sales in 2022 to be disposals of a component of an entity or a group of components of an entity representing a strategic shift that has (or will have) a major effect on the entity’s operations and financial results.

A summary of Gain on sales of real estate investments for the nine months ended September 30, 2022 and the year ended December 31, 2021 follows:

The Company did not consider its sale in 2023 to be a disposal of a component of an entity or a group of components of an entity representing a strategic shift that has (or will have) a major effect on the entity’s operations and financial results.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

A summary of Gain on sales of real estate investments for the three months ended March 31, 2023 and the year ended December 31, 2022 follows:

REAL ESTATE PROPERTIES SOLD Location Size Date Sold Net Sales Price Basis Recognized Gain

(In square feet) (In thousands)

World Houston 23 Houston, TX 125,000 03/31/2023 $ 9,327 4,518 4,809

Metro Business Park Phoenix, AZ 189,000 01/06/2022 $ 32,851 5,880 26,971

3 unchanged sentences

Total for 2022 287,000 $ 51,006 10,007 40,999

Jetport Commerce Park Tampa, FL 284,000 11/09/2021 $ 44,260 5,401 38,859

(1) Cypress Creek Business Park is located on a ground lease.

In conjunction with the sale of the property, the Company fully amortized the associated right-of-use asset and liability of $ 1,745,000 .

The Company had no sales during the nine months ended September 30, 2021.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The table above includes sales of operating properties.

During the three months ended March 31, 2023, the Company also sold a 2.0 acre parcel of land in Forth Worth, TX, for $ 1,550,000 and recognized a gain on the sale of $ 81,000 .

The gains on sales of non-operating real estate are included in Other on the Consolidated Statements of Income and Comprehensive Income.

(9) OTHER ASSETS

A summary of the Company’s Other assets follows:

September 30,

2023 December 31,

14 unchanged sentences

Escrow deposits and prepaid costs for pending transactions 2,866 2,522

Prepaid insurance 3,826 7,793

Goodwill 990 990

Receivable for tenant improvement cost reimbursements 619 7,680

Prepaid insurance 1,693 2,681

Receivable for insurance proceeds 6,098 2,828

Prepaid expenses and other assets 11,615 11,327

1 unchanged sentence

$ 239,264 244,944

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company’s debt is detailed below:

September 30,

2023 December 31,

12 unchanged sentences

(1) These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Until June 29, 2021, EastGroup had $ 350 million and $ 45 million unsecured bank credit facilities with margins over London Interbank Offered Rate (“LIBOR”) of 100 basis points, facility fees of 20 basis points and maturity dates of July 30, 2022 .

The Company amended and restated these credit facilities on June 29, 2021, expanding their capacities to $ 425 million and $ 50 million, respectively, as detailed below.

The $ 425 million unsecured bank credit facility is with a group of nine banks and has a maturity date of July 30, 2025 .

The credit facility contains options for two six-month extensions (at the Company's election) and a $ 325 million accordion (with agreement by all parties).

The interest rate on each tranche is reset on a monthly basis and as of September 30, 2022, was LIBOR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of September 30, 2022, the Company had $ 120,000,000 of variable rate borrowings on this unsecured bank credit facility with a weighted average interest rate of 3.752 %.

The Company's $ 50 million unsecured bank credit facility has a maturity date of July 30, 2025 , or such later date as designated by the bank;

the Company also has two six-month extensions available if the extension options in the $ 425 million facility are exercised.

The interest rate is reset on a daily basis and as of September 30, 2022, was LIBOR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of September 30, 2022, the interest rate was 3.918 % on a balance of $ 35,883,000 .

Until January 10, 2023, EastGroup had $ 425,000,000 and $ 50,000,000 unsecured bank credit facilities with margins over London Interbank Offered Rate (“LIBOR”) of 77.5 basis points, facility fees of 15 basis points and maturity dates of July 30, 2025 .

The Company amended and restated these credit facilities effective January 10, 2023, expanding the total capacity on its unsecured bank credit facilities from $ 475,000,000 to $ 675,000,000 and replacing LIBOR with SOFR as the benchmark interest rate.

The Company’s $ 625,000,000 unsecured bank credit facility, which was increased in January 2023 by $ 200,000,000 from $ 425,000,000 , is with a group of 11 banks and has a maturity date of July 30, 2025 .

The credit facility contains options for two six-month extensions (at the Company's election) and an additional $ 125,000,000 accordion (with agreement by all parties).

The interest rate on each tranche is reset on a monthly basis and as of March 31, 2023, was SOFR plus 76.5 basis points with an annual facility fee of 15 basis points.

As of March 31, 2023, the Company had $ 55,000,000 of variable rate borrowings on this unsecured bank credit facility with a weighted average interest rate of 5.682 %.

The Company has a standby letter of credit of $ 67,000 pledged on this facility, which reduces borrowing capacity under the credit facility.

The Company's $ 50,000,000 unsecured bank credit facility has a maturity date of July 30, 2025 , or such later date as designated by the bank;

the Company also has two six-month extensions available if the extension options in the $ 625,000,000 facility are exercised.

The interest rate is reset on a daily basis and as of March 31, 2023, was SOFR plus 76.5 basis points with an annual facility fee of 15 basis points.

As of March 31, 2023, the interest rate was 5.745 % on a balance of $ 17,027,000 .

For both facilities, the margin and facility fee are subject to changes in the Company's credit ratings.

1 unchanged sentence

This favorable pricing level will be retained provided that the Company’s consolidated leverage ratio, as defined in the applicable agreements, remains less than 32.5 %.

The facilities also include a sustainability-linked pricing component pursuant to which the applicable interest margin will be reduced by one basis point if the Company meets certain sustainability performance targets.

In January 2022, the Company and a group of lenders agreed to terms on the private placement of $ 150 million of senior unsecured notes with a fixed interest rate of 3.03 % and a 10 -year term.

The notes were issued and sold on April 20, 2022 and require interest-only payments.

The notes will not be and have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

In February 2022, EastGroup repaid a $ 75 million unsecured term loan at maturity with an effectively fixed interest rate of 3.03 %.

In March 2022, the Company closed a $ 100 million senior unsecured term loan with a 6.5 -year term and interest only payments, which bears interest at an annual rate of the Secured Overnight Financing Rate (“SOFR”) plus an applicable margin ( 1.30 % as of September 30, 2022) based on the Company’s senior unsecured long-term debt rating.

The facilities also include a sustainability-linked pricing component pursuant to which the applicable interest margin is reduced by one basis point if the Company meets a certain sustainability performance target.

This sustainability metric is evaluated annually and was achieved for the year ended December 31, 2022, which effectively reduced the margin on the unsecured bank credit facilities during 2023 by one basis point from 77.5 to 76.5 basis points.

In January 2023, the Company closed a $ 100,000,000 senior unsecured term loan with a seven -year term and interest only payments, which bears interest at the annual rate of SOFR plus an applicable margin ( 1.35 % as of March 31, 2023) based on the Company’s senior unsecured long-term debt rating.

The Company also entered into an interest rate swap agreement to convert the loan’s SOFR rate component to a fixed interest rate for the entire term of the loan providing a total effectively fixed interest rate of 5.27 %.

Also during March 2022, the Company closed on the refinance of a $ 100 million senior unsecured term loan with five years remaining.

The amended term loan provides for interest only payments currently at an interest rate of SOFR plus 85 basis points, based on the Company’s current credit ratings and consolidated leverage ratio, which is a 60 basis point reduction in the credit spread compared to the original term loan.

The Company has an interest rate swap agreement which converts the loan’s SOFR rate component to a fixed interest rate for the entire term of the loan, providing a total effectively fixed interest rate of 1.80 %.

In June 2022, the Company assumed a $ 60 million loan in connection with the acquisition of Tulloch Corporation, the owner of an industrial real estate portfolio comprised of 14 operating properties and two parcels of land, which was immediately repaid with no penalty during June 2022.

In August 2022, the Company closed a $ 125 million senior unsecured term loan with interest only payments, bearing interest at the annual rate of SOFR plus an applicable margin based on the Company’s senior unsecured long-term debt rating and consolidated leverage ratio.

The loan has a $ 75 million tranche with a five -year term and a $ 50 million tranche with a two -year term.

The Company also entered into interest rate swap agreements to convert the loans’ SOFR rate components to fixed interest rates for the entire term of the loans, providing total effectively fixed interest rates of 4.00 % and 4.09 % on the $ 75 million and $ 50 million tranches, respectively.

In July 2022, the Company and a group of lenders agreed to terms on the private placement of two senior unsecured notes totaling $ 150 million.

One note for $ 75 million has an 11 -year term and a fixed interest rate of 4.90 % with semi-annual

EASTGROUP PROPERTIES, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

interest-only payments.

The other $ 75 million note has a 12 -year term and a fixed interest rate of 4.95 % with semi-annual interest-only payments.

The notes, dated August 16, 2022, were issued and sold on October 12, 2022.

The notes will not be and have not been registered under the Securities Act, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

Scheduled principal payments on long-term debt, including Unsecured debt, net of debt issuance costs and Secured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs ), as of September 30, 2022, are as follows:

On March 31, 2023, EastGroup repaid a $ 65,000,000 senior unsecured term loan with a total effectively fixed interest rate of 2.31 %.

The loan, which was scheduled to mature on April 1, 2023, was repaid with no penalty.

Years Ending December 31, (In thousands)

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A summary of the Company’s Accounts payable and accrued expenses follows:

September 30,

2023 December 31,

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A summary of the Company’s Other liabilities follows:

September 30,

2023 December 31,

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Interest rate swap liabilities 4,120 1,981

Tenant improvement cost liabilities 1,816 2,796

Other liabilities 834 1,586

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See Note 14 for information regarding the Company’s interest rate swaps.

Three Months Ended

September 30, Nine Months Ended September 30,

2022 2021 2022 2021

Three Months Ended March 31,

(In thousands)

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Balance at beginning of period $ 36,371 1,302

Other comprehensive income - interest rate swaps 17,157 1,325 39,826 8,276

Other comprehensive income (loss) - interest rate swaps ( 10,262 ) 15,828

Balance at end of period $ 26,109 17,130

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of September 30, 2022, the Company had seven interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans.

All of the Company’s interest rate swaps convert the related loans’ LIBOR or SOFR rate components to effectively fixed interest rates, and the Company has concluded that each of the hedging relationships is highly effective.

As of March 31, 2023, the Company had seven interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans.

All of the Company’s interest rate swaps convert the related loans’ SOFR rate components to effectively fixed interest rates, and the Company has concluded that each of the hedging relationships is highly effective.

The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Other comprehensive income (loss) and are subsequently reclassified into earnings through Interest expense as interest payments are made or received on the Company’s variable-rate debt in the period that the hedged forecasted transaction affects earnings.

The Company estimates that an additional $ 14,448,000 will be reclassified from Other comprehensive income (loss) as a decrease to Interest expense over the next twelve months.

The Company’s valuation methodology for over-the-counter (“OTC”) derivatives is to discount cash flows based on Overnight Index Swap (“OIS”) rates.

Uncollateralized or partially-collateralized trades are discounted at OIS rates but include appropriate economic adjustments for funding costs (i.e., a LIBOR-OIS basis adjustment to approximate uncollateralized cost of funds) and credit risk.

The Company’s valuation methodology for over-the-counter (“OTC”) derivatives is to discount cash flows based on SOFR market data.

Uncollateralized or partially-collateralized trades include appropriate economic adjustments for funding costs and credit risk.

The Company calculates its derivative valuations using mid-market prices.

In July 2017, the Financial Conduct Authority announced it intended to stop compelling banks to submit rates for the calculation of LIBOR after 2021.

In March 2021, the ICE Benchmark Administration, the administrator of LIBOR, announced its intention to cease publication of certain LIBOR settings after 2021, while continuing to publish overnight and one-, three-, six-, and twelve-month U.S.

dollar LIBOR rates through June 30, 2023.

While this announcement extended the transition period to June 2023, the United States Federal Reserve Board and other regulatory bodies concurrently issued guidance encouraging banks and other financial market participants to cease entering into new contracts that use U.S.

dollar LIBOR as a reference rate as soon as practicable and in any event no later than December 31, 2021.

The Financial Conduct Authority announced it intended to stop compelling banks to submit rates for the calculation of LIBOR after June 30, 2023.

In the U.S., the Alternative Reference Rates Committee, which was convened by the Federal Reserve Board and the Federal Reserve Bank of New York, has recommended SOFR plus a recommended spread adjustment as its preferred alternative to USD-LIBOR.

There are significant differences between LIBOR and SOFR, such as LIBOR being an unsecured lending rate while SOFR is a secured rate, and SOFR is an overnight rate while LIBOR reflects term rates at different maturities.

We expect that all LIBOR settings relevant to us will cease to be published or will no longer be representative after June 30, 2023.

As a result, any of our LIBOR-based borrowings that extend beyond such date will need to be converted to a replacement rate.

Certain risks may arise in connection with transitioning contracts to SOFR or any other alternative variable rate, including any resulting value transfer that may occur.

The value of loans, securities or derivative instruments tied to LIBOR could also be impacted.

During the nine months ended September 30, 2022, the Company entered into two new term loans and three swap agreements which are indexed to SOFR.

Also, during the nine months ended September 30, 2022, EastGroup refinanced two existing term loans modifying the index from LIBOR to SOFR and concurrently amended the related swaps to reference SOFR rather than LIBOR.

The Company’s unsecured bank credit facilities and two of its senior unsecured term loans and interest rate swap contracts are indexed to LIBOR and include provisions for a replacement rate which we believe will be substantially equivalent to the all-in LIBOR-based interest rate in effect prior to its replacement.

Therefore, management believes the transition will not have a material impact on the Company’s consolidated financial statements.

The Company is continuously monitoring and evaluating the related risks, which include interest on loans and amounts received and paid on derivative instruments.

These risks arise in connection with transitioning contracts to a new alternative rate, including any resulting value transfer that may occur.

The value of loans or derivative instruments indexed to LIBOR could also be impacted if LIBOR is limited or discontinued as interest rates may be adversely affected.

While we expect LIBOR to be available in substantially its current form until June 30, 2023, it is possible that LIBOR will become unavailable prior to that point.

This could result, for example, if sufficient banks decline to make submissions to the LIBOR administrator.

In that case, the risks associated with the transition to an alternative reference rate will be accelerated and magnified.

As a result, all of the Company’s remaining borrowings which were LIBOR-based have been amended to modify the index from LIBOR to SOFR.

Concurrently, the related swaps were amended to reference SOFR rather than LIBOR.

The transition did not have a material impact on the Company’s consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848):

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Application of these expedients preserves the presentation of derivatives consistent with past presentation.

In December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 , which was issued to defer the sunset date of Topic 848 to December 31, 2024.

ASU 2022-06 is effective immediately for all companies.

ASU 2022-06 has no impact on the Company’s consolidated financial statements for the three months ended March 31, 2023.

The Company continues to evaluate the impact of the guidance and may apply other elections as applicable as additional changes in the market occur.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of September 30, 2022 and December 31, 2021, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk:

Interest Rate Derivative Notional Amount as of September 30, 2022

As of March 31, 2023 and December 31, 2022, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk:

Interest Rate Derivative Notional Amount as of March 31, 2023

Notional Amount as of December 31, 2022

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Interest Rate Swap $ 100,000 $ 100,000

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2022 and December 31, 2021.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2023 and December 31, 2022.

See Note 17 for additional information on the fair value of the Company’s interest rate swaps.

As of September 30, 2022

As of March 31, 2023

As of December 31, 2022

4 unchanged sentences

Interest rate swap liabilities Other liabilities 4,120 Other liabilities 1,981

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2022 and 2021:

The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2023 and 2022:

Three Months Ended

September 30, Nine Months Ended September 30,

2022 2021 2022 2021

(In thousands)

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Interest Rate Swaps:

Amount of income recognized in Other comprehensive income (loss) on derivatives

Amount of income (loss) recognized in Other comprehensive income (loss) on derivatives

$ ( 6,197 ) 14,952

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The Company has an agreement with its derivative counterparties containing a provision stating that the Company could be declared in default on its derivative obligations if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender.

If the Company breached any of these provisions it would be required to settle its obligations under the agreements at their termination value of $ 41,823,000 as of September 30, 2022.

If the Company breached any of these provisions it would be required to settle its obligations under the agreements at their termination value of $ 26,425,000 as of March 31, 2023.

(15) EARNINGS PER SHARE

The Company applies ASC 260, Earnings Per Share , which requires companies to present basic and diluted earnings per share (“EPS”).

Basic EPS represents the amount of earnings for the period attributable to each share of common stock outstanding

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

during the reporting period.

Basic EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period.

The Company’s basic EPS is calculated by dividing Net Income Attributable to EastGroup Properties, Inc.

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The dilutive effect of unvested restricted stock is determined using the treasury stock method.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Reconciliation of the numerators and denominators in the basic and diluted EPS computations is as follows:

Three Months Ended

September 30, Nine Months Ended September 30,

2022 2021 2022 2021

(In thousands)

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Restricted stock is granted to executive officers subject to both continued service and the satisfaction of certain annual performance goals and multi-year market conditions as determined by the Committee.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three -year period and the employee’s continued service as of the vesting dates.

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The certain Company performance measures for 2023 are:

(i) funds from operations (“FFO”) per share, (ii) cash same property net operating income change, (iii) debt-to-EBITDAre ratio, and (iv) fixed charge coverage.

(i) funds from operations (“FFO”) per share, (ii) cash same property net operating income change, (iii) debt-to-EBITDAre ratio,

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

and (iv) fixed charge coverage.

The Company begins recognizing expense for its estimate of the shares that could be earned pursuant to these awards on the grant date;

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The Company has adjusted its stock-based compensation expense to accelerate the recognition of expense for retirement-eligible employees.

Stock-based compensation cost for employees was $ 2,625,000 and $ 8,175,000 for the three and nine months ended September 30, 2022, of which $ 645,000 and $ 1,981,000 were capitalized as part of the Company’s development costs.

For the three and nine months ended September 30, 2021, stock-based compensation cost for employees was $ 2,458,000 and $ 6,791,000 , of which $ 632,000 and $ 1,661,000 were capitalized as part of the Company’s development costs.

Stock-based compensation expense for directors was $ 230,000 and $ 336,000 for the three and nine months ended September 30, 2022, respectively, and $ 3,000 and $ 710,000 for the same periods in 2021.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Stock-based compensation cost for employees was $ 3,252,000 for the three months ended March 31, 2023, of which $ 693,000 was capitalized as part of the Company’s development costs.

For the three months ended March 31, 2022, stock-based compensation cost for employees was $ 2,561,000 , of which $ 691,000 was capitalized as part of the Company’s development costs.

Stock-based compensation expense for directors was $ 225,000 for the three months ended March 31, 2023, and $ 33,000 for the same period in 2022.

Following is a summary of the total restricted shares granted, forfeited and delivered (vested) to participants with the related weighted average grant date fair value share prices.

Of the shares that vested in the nine months ended September 30, 2022, the Company withheld 34,251 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.

As of the grant dates, the fair value of shares that were granted during the nine months ended September 30, 2022 was $ 9,560,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the nine months ended September 30, 2022 was $ 17,132,000 .

Of the shares that vested in the three months ended March 31, 2023, the Company withheld 31,254 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.

As of the grant dates, the fair value of shares that were granted during the three months ended March 31, 2023 was $ 6,606,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the three months ended March 31, 2023 was $ 11,309,000 .

Award Activity:

Three Months Ended

September 30, 2022 Nine Months Ended September 30, 2022

Three Months Ended March 31, 2023

Weighted Average Grant Date Fair Value

Shares Weighted Average Grant Date Fair Value

Unvested at beginning of period 102,508 $ 133.29

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ASC 820 also provides guidance for using fair value to measure financial assets and liabilities.

The FASB Codification requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2) and significant valuation assumptions that are not readily observable in the market (Level 3).

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at September 30, 2022 and December 31, 2021.

September 30, 2022 December 31, 2021

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

or similar instruments in markets that are not active (Level 2) and significant valuation assumptions that are not readily observable in the market (Level 3).

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at March 31, 2023 and December 31, 2022.

March 31, 2023 December 31, 2022

Carrying Amount (1)

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Interest rate swap assets (included in Other assets on the Consolidated Balance Sheets):

The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves, LIBOR and SOFR swap curves and OIS curves,

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

observable for substantially the full term of the contract (Level 2 input).

The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves, LIBOR or SOFR swap curves, observable for substantially the full term of the contract (Level 2 input).

See Note 14 for additional information on the Company’s interest rate swaps.

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Interest rate swap liabilities (included in Other liabilities on the Consolidated Balance Sheets):

The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves, LIBOR and SOFR swap curves and OIS curves, observable for substantially the full term of the contract (Level 2 input).

See Note 14 for additional information on the Company’s interest rate swaps.

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(20) RECENT ACCOUNTING PRONOUNCEMENTS

EastGroup has evaluated all ASUs recently released by the FASB through the date the financial statements were issued and determined that ASU 2020-04, Reference Rate Reform (Topic 848):

EastGroup has evaluated all ASUs recently released by the FASB through the date the financial statements were issued and determined that the following ASUs apply to the Company.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

ASU 2020-04, Reference Rate Reform (Topic 848):

Facilitation of the Effects of Reference Rate Reform on Financial Reporting , applies to the Company.

See Note 14 in the Notes to Consolidated Financial Statements for the Company’s evaluation of ASU 2020-04.

Also, in December 2022, the FASB issued ASU 2022-06, Deferral of the Sunset Date of Topic 848 (“ASU 2022-06”) which was issued to defer the sunset date of Topic 848 to December 31, 2024.

ASU 2022-06 is effective immediately for all companies.

ASU 2022-06 had no impact on the Company’s consolidated financial statements for the three months ended March 31, 2023.

See Note 14 in the Consolidated Financial Statements for further evaluation of these ASUs.

(21) SUBSEQUENT EVENTS

Subsequent to September 30, 2022, EastGroup acquired 60.9 acres of development land in Atlanta for approximately $ 5.6 million.

The Company has future plans to construct five buildings totaling approximately 750,000 square feet.

Also subsequent to September 30, 2022, the Company closed on the acquisition of 87.5 acres of development land in Austin for approximately $ 30.1 million.

The Company has future plans to construct seven buildings totaling approximately 1,007,000 square feet.

On March 30 and 31, 2023, the Company sold 168,125 shares of common stock under its continuous common equity program at a weighted average price of $ 163.35 .

These shares were deemed to be issued and outstanding upon settlement in April 2023.

Subsequent to March 31, 2023, the Company closed on the acquisition of 58.8 acres of development land in the East submarket of Tampa, known by the Company as Lakeside Station Land, for approximately $ 6,600,000 .

In April, the Company closed on the acquisition of 48.7 acres of development land in San Antonio’s Northeast Submarket for approximately $ 6,100,000 .

Also in April, EastGroup acquired Craig Corporate Center, a 155,000 square foot building in Las Vegas, for approximately $ 34,200,000 .

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.

What changed 10-Q

Item 1. Financial Statements