What changed in this filing

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Item 2. Management’s Discussion and Analysis

2023-10-25 compared with 2023-07-26 · 155 added, 154 removed, 353 unchanged (47% of the section changed)

31 unchanged sentences

• environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us.

The risks included herein are not exhaustive, and investors should be aware that there may be other factors that could adversely affect our business and financial performance.

New risk factors emerge from time to time and it is not possible for our management to predict all risk factors, nor can we assess the impact of all risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

All forward-looking statements should be read in light of the risks identified in Part I, Item 1A.

Risk Factors within the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

Risk Factors within the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, as such factors may be updated from time to time in the Company’s periodic filings and current reports filed with the Securities and Exchange Commission.

EastGroup’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location-sensitive customers (primarily in the 20,000 to 100,000 square foot range).

1 unchanged sentence

The Company’s core markets are in the states of Florida, Texas, Arizona, California and North Carolina.

During the six months ended June 30, 2023, economic uncertainty and stock market volatility have increased due to a number of factors, including rising inflation, increasing interest rates, and lingering supply chain disruptions.

During the nine months ended September 30, 2023, economic uncertainty and stock market volatility have increased due to a number of factors, including rising inflation, increasing interest rates, and lingering supply chain disruptions.

While these factors have not had a significant adverse impact on EastGroup to date, they may adversely impact the Company in the future.

4 unchanged sentences

EastGroup believes its current operating cash flow and unsecured bank credit facilities provide the capacity to fund the operations of the Company, and the Company also believes it can issue common and/or preferred equity and obtain debt financing on currently acceptable terms.

During the six months ended June 30, 2023, EastGroup sold, and subsequently settled the issuance of, 1,793,603 shares of common stock through its continuous common equity offering program at a weighted average price of $166.88 per share, providing aggregate net proceeds to the Company of $295,876,000.

Included in this activity are 75,016 shares sold on June 29 and June 30, 2023, at a weighted average price of $172.42, providing aggregate net proceeds to the Company of $12,806,000, which were deemed to be issued and outstanding upon settlement in July 2023.

Also during the six months ended June 30, 2023, the Company closed a $100,000,000 senior unsecured term loan with an effectively fixed interest rate of 5.27%.

During the nine months ended September 30, 2023, EastGroup sold, and subsequently settled the issuance of, 2,725,021 shares of common stock through its continuous common equity offering program at a weighted average price of $170.39 per share, providing aggregate net proceeds to the Company of $459,179,000.

Included in this activity are 53,364 shares sold on September 28 and September 29, 2023, providing aggregate net proceeds to the Company of $8,794,000, which were deemed to be issued and outstanding upon settlement in October 2023.

Also during the nine months ended September 30, 2023, the Company closed a $100,000,000 senior unsecured term loan with an effectively fixed interest rate of 5.27%.

Additionally, the Company amended its unsecured bank credit facilities, effective January 2023, to expand the total capacity on its unsecured bank credit facilities from $475,000,000 to $675,000,000 and to replace LIBOR with Secured Overnight Financing Rate (“SOFR”) as the benchmark interest rate.

2 unchanged sentences

The Company’s primary revenue is rental income.

During the six months ended June 30, 2023, EastGroup executed new and renewal leases on 3,842,000 square feet (7.2% of the operating portfolio’s total square footage of 53,194,000).

For new and renewal leases signed during the first six months of 2023, average rental rates increased by 51.0% as compared to the former leases on the same spaces.

During the nine months ended September 30, 2023, EastGroup executed new and renewal leases on 6,159,000 square feet (11.3% of the operating portfolio’s total square footage of 54,581,000).

For new and renewal leases signed during the first nine months of 2023, average rental rates increased by 52.7% as compared to the former leases on the same spaces.

On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders was $1.99 for the six months ended June 30, 2023, compared to $2.62 for the same period of 2022, a 24.0% decrease.

Common Stockholders was $3.06 for the nine months ended September 30, 2023, compared to $3.48 for the same period of 2022, a 12.1% decrease.

See the Company’s analysis of performance trends below for further details.

Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire current and prior year reporting periods – January 1, 2022 through June 30, 2023), increased 6.8% for the six months ended June 30, 2023 as compared to the same period in 2022.

EastGroup’s operating portfolio was 98.5% leased and 98.2% occupied as of June 30, 2023, compared to 99.1% and 98.5%, respectively, at June 30, 2022.

As of July 25, 2023, the operating portfolio was 98.1% leased and 97.8% occupied.

Leases scheduled to expire for the remainder of 2023 were 4.4% of the operating portfolio on a square foot basis at June 30, 2023, and this percentage was reduced to 3.5% as of July 25, 2023.

Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire current and prior year reporting periods – January 1, 2022 through September 30, 2023), increased 6.5% for the nine months ended September 30, 2023, as compared to the same period in 2022.

EastGroup’s operating portfolio was 98.5% leased and 97.7% occupied as of September 30, 2023, compared to 99.0% and 98.5%, respectively, at September 30, 2022.

As of October 24, 2023, the operating portfolio was 98.4% leased and 97.9%

Leases scheduled to expire for the remainder of 2023 were 2.0% of the operating portfolio on a square foot basis at September 30, 2023, and this percentage was reduced to 1.6% as of October 24, 2023.

The Company generates new sources of leasing revenue through its acquisitions and also its development and value-add program.

The Company mitigates risks associated with development through a Board-approved maximum level of land held for development and by adjusting development start dates according to leasing activity.

During the six months ended June 30, 2023, EastGroup acquired 116.7 acres of development land in Tampa, San Antonio and Phoenix for $17,754,000.

The Company also began construction of seven development projects containing 1,398,000 square

feet in five markets.

EastGroup also transferred six development and value-add projects (1,107,000 square feet) in five markets from its development and value-add program to real estate properties, with costs of $143,531,000 at the date of transfer.

As of June 30, 2023, EastGroup’s development and value-add program consisted of 21 projects (4,272,000 square feet) located in 12 markets.

The projected total investment for the development and value-add projects, which were collectively 37.7% leased as of July 25, 2023, is $536,600,000, of which $190,771,000 remained to be invested as of June 30, 2023.

During the six months ended June 30, 2023, EastGroup acquired a 156,000 square foot operating property in Las Vegas for $34,365,000.

During the nine months ended September 30, 2023, EastGroup acquired 210.1 acres of development land in Tampa, Dallas, San Antonio, Phoenix and Denver for $44,468,000.

The Company also began construction of 10 development projects containing 2,191,000 square feet in seven markets.

EastGroup also transferred 12 development and value-add projects (2,241,000 square feet) in 10 markets from its development and value-add program to real estate properties, with costs of $258,319,000 at the date of transfer.

As of September 30, 2023, EastGroup’s development and value-add program consisted of 18 projects (3,931,000 square feet) located in 12 markets.

The projected total investment for the development and value-add projects, which were collectively 17.6% leased as of October 24, 2023, is $548,100,000, of which $230,650,000 remained to be invested as of September 30, 2023.

During the nine months ended September 30, 2023, EastGroup acquired two operating properties in Las Vegas containing 410,000 square feet for $87,338,000.

There were no value-add property acquisitions during the period.

During the six months ended June 30, 2023, EastGroup sold a 125,000 square foot operating property and 11.9 acres of land, generating gross sales proceeds of $14,350,000.

The Company recognized $4,809,000 in Gain on sales of real estate investments and $446,000 in gains on sales of non-operating real estate (included in Other on the Consolidated Statements of Income and Comprehensive Income) during the six months ended June 30, 2023.

During the nine months ended September 30, 2023, EastGroup sold a 125,000 square foot operating property and 11.9 acres of land, generating gross sales proceeds of $14,350,000.

The Company typically initially funds its development and acquisition programs through its unsecured bank credit facilities, the total capacity of which was increased in January 2023 by $200,000,000, from $475,000,000 to $675,000,000 (as discussed in Liquidity and Capital Resources ).

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Properties sold during the current or prior year reporting periods are also excluded.

For the three and six months ended June 30, 2023, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2022 through June 30, 2023.

For the three and nine months ended September 30, 2023, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2022 through September 30, 2023.

The Company presents Same PNOI and Same PNOI Excluding Income from Lease Terminations as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis.

FFO and PNOI are supplemental industry reporting measurements used to evaluate the performance of the Company’s investments in real estate assets and its operating results.

The Company believes that the exclusion of depreciation and

amortization in the calculations of PNOI and FFO provides supplemental indicators of the properties’ performance since real estate values have historically risen or fallen with market conditions.

The Company believes that the exclusion of depreciation and amortization in the calculations of PNOI and FFO provides supplemental indicators of the properties’ performance since real estate values have historically risen or fallen with market conditions.

PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs.

1 unchanged sentence

These non-GAAP figures should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP.

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI Excluding Income from Lease Terminations for the three and six months ended June 30, 2023 and 2022.

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI Excluding Income from Lease Terminations for the three and nine months ended September 30, 2023 and 2022.

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2023 2022 2023 2022

22 unchanged sentences

SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS $ 86,561 81,685 256,450 240,807

PNOI was calculated as follows for the three and six months ended June 30, 2023 and 2022.

PNOI was calculated as follows for the three and nine months ended September 30, 2023 and 2022.

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2023 2022 2023 2022

9 unchanged sentences

Tenant leases may be net leases in which the total operating expenses are recoverable, modified gross leases in which some of the operating expenses are recoverable, or gross leases in which no expenses are recoverable (gross leases represent only a small portion of the Company’s total leases).

Increases in property operating expenses are fully recoverable under net leases and recoverable to a

high degree under modified gross leases.

Increases in property operating expenses are fully recoverable under net leases and recoverable to a high degree under modified gross leases.

Modified gross leases often include base year amounts, and expense increases over these amounts are recoverable.

1 unchanged sentence

The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders to FFO Attributable to Common Stockholders for the three and six months ended June 30, 2023 and 2022.

Common Stockholders to FFO Attributable to Common Stockholders for the three and nine months ended September 30, 2023 and 2022.

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2023 2022 2023 2022

13 unchanged sentences

• Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders for the three and six months ended June 30, 2023 was $43,450,000 ($0.97 per basic and diluted share) and $88,140,000 ($1.99 per basic and diluted share), respectively, compared to $46,139,000 ($1.09 per basic and diluted share) and $109,719,000 ($2.63 per basic share and $2.62 per diluted share) for the same periods in 2022.

Common Stockholders for the three and nine months ended September 30, 2023 was $48,896,000 ($1.07 per basic and diluted share) and $137,036,000 ($3.07 per basic and $3.06 per diluted share), respectively, compared to $37,792,000 ($0.87 per basic and diluted share) and $147,511,000 ($3.49 per basic share and $3.48 per diluted share) for the same periods in 2022.

See Results of Operations for further analysis.

• The change in FFO per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year.

For the three months ended June 30, 2023, FFO was $1.91 per share compared with $1.72 per share for the same period of 2022, an increase of 11.0%.

For the six months ended June 30, 2023, FFO was $3.75 per share compared with $3.41 per share for the same period of 2022, an increase of 10.0%.

FFO increased during the three and six months ended June 30, 2023, as compared to the same periods in 2022, primarily due to the increase in PNOI partially offset by the increase in interest expense.

• For the three months ended June 30, 2023, PNOI increased by $15,109,000, or 17.5%, as compared to the same period in 2022.

For the three months ended September 30, 2023, FFO was $2.00 per share compared with $1.77 per share for the same period of 2022, an increase of 13.0%.

For the nine months ended September 30, 2023, FFO was $5.75 per share compared with $5.18 per share for the same period of 2022, an increase of 11.0%.

FFO increased during the three and nine months ended September 30, 2023, as compared to the same periods in 2022, primarily due to the increase in PNOI and other revenue, partially offset by the increase in interest expense.

• For the three months ended September 30, 2023, PNOI increased by $13,134,000, or 14.5%, as compared to the same period in 2022.

PNOI increased $7,333,000 from newly developed and value-add properties, $5,061,000 from same property operations, $546,000 from 2022 and 2023 acquisitions and $134,000 from operating properties sold in 2022 and 2023.

For the six months ended June 30, 2023, PNOI increased by $31,003,000, or 18.4%, as compared to the same period in 2022.

For the nine months ended September 30, 2023, PNOI increased by $44,137,000, or 17.0%, as compared to the same period in 2022.

PNOI increased $22,762,000 from newly developed and value-add properties, $13,665,000 from same property operations and $7,862,000 from 2022 and 2023 acquisitions;

PNOI decreased $126,000 from operating properties sold in 2022 and 2023.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2022 through June 30, 2023).

Same PNOI, excluding income from lease terminations, increased 5.9% and 6.8% for the three and six months ended June 30, 2023, as compared to the same periods in 2022.

during the entire current and prior year reporting periods (January 1, 2022 through June 30, 2023).

Same property average occupancy was 98.4% for both the three months ended June 30, 2023 and 2022.

Same property average occupancy was 98.6% for the six months ended June 30, 2023, compared to 97.9% for the same period of 2022.

• The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2022 through June 30, 2023).

The same property average rental rate was $7.55 and $7.50 per square foot for the three and six months ended June 30, 2023, respectively, compared to $7.08 and $6.99 per square foot for the same periods of 2022.

Same PNOI, excluding income from lease terminations, increased 6.0% and 6.5% for the three and nine months ended September 30, 2023, as compared to the same periods in 2022.

• Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2022 through September 30, 2023).

Same property average occupancy was 98.1% and 98.4% for the three and nine months ended September 30, 2023, respectively, compared to 98.5% and 98.1% for the same periods of 2022.

The same property average rental rate was $7.66 and $7.55 per square foot for the three and nine months ended September 30, 2023, respectively, compared to $7.19 and $7.06 per square foot for the same periods of 2022.

• Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period.

Occupancy at June 30, 2023 was 98.2%.

Quarter-end occupancy ranged from 97.9% to 98.5% over the previous four quarters ended June 30, 2022 to March 31, 2023.

Occupancy at September 30, 2023 was 97.7%.

Quarter-end occupancy ranged from 97.9% to 98.5% over the previous four quarters ended September 30, 2022 to June 30, 2023.

• Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space.

Rental rate increases on new and renewal leases (4.1% of the operating portfolio’s total square footage) averaged 52.8% for the three months ended June 30, 2023.

For the six months ended June 30, 2023, rental rate increases on new and renewal leases (7.2% of the operating portfolio’s total square footage) averaged 51.0%.

Rental rate increases on new and renewal leases (4.2% of the operating portfolio’s total square footage) averaged 55.4% for the three months ended September 30, 2023.

For the nine months ended September 30, 2023, rental rate increases on new and renewal leases (11.3% of the operating portfolio’s total square footage) averaged 52.7%.

• Lease termination fee income is included in Income from real estate operations.

Lease termination fee income for the three and six months ended June 30, 2023 was $256,000 and $311,000, respectively, compared to $979,000 and $2,373,000 for the same periods of 2022.

Lease termination fee income for the three and nine months ended September 30, 2023 was $221,000 and $532,000, respectively, compared to $24,000 and $2,397,000 for the same periods of 2022.

• The Company records reserves for uncollectible rent as reductions to Income from real estate operations ;

recoveries for uncollectible rent are recorded as additions to Income from real estate operations .

The Company recorded net reserves for uncollectible rent of $386,000 and $755,000 for the three and six months ended June 30, 2023, compared to net reserves for uncollectible rent of $36,000 and net recoveries of uncollectible rent of $70,000 for the same periods of 2022.

The Company recorded net reserves for uncollectible rent of $446,000 and $1,201,000 for the three and nine months ended September 30, 2023, compared to net reserves for uncollectible rent of $198,000 and $128,000 for the same periods of 2022.

We evaluate the collectability of rents and other receivables for individual leases at each reporting period based on factors including, among others, tenant payment history, the financial condition of the tenant, business conditions and trends in the industry in which the tenant operates and economic conditions in the geographic area where the property is located.

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If our judgment or estimation regarding probability of collection changes we may adjust or record additional rental revenue in the period such conclusion is reached.

The Company followed its normal process for recording reserves for uncollectible rent during the three and six months ended June 30, 2023.

The Company followed its normal process for recording reserves for uncollectible rent during the three and nine months ended September 30, 2023.

FINANCIAL CONDITION

EastGroup’s Total Assets were $4,204,128,000 at June 30, 2023, an increase of $168,291,000 from December 31, 2022.

EastGroup’s Total Assets were $4,354,854,000 at September 30, 2023, an increase of $319,017,000 from December 31, 2022.

Total Liabilities decreased $106,809,000 to $1,975,589,000, and Total Equity increased $425,826,000 to $2,379,265,000 during the same period.

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Real Estate Properties

Real estate properties increased $198,505,000 during the six months ended June 30, 2023, primarily due to:

(i) the transfer of six projects from Development and value-add properties to Real estate properties (as detailed under Development and Value-Add Properties below);

(ii) the acquisition of one operating property;

Real estate properties increased $380,383,000 during the nine months ended September 30, 2023, primarily due to:

(i) the transfer of 12 projects from Development and value-add properties to Real estate properties ;

(ii) the acquisition of two operating properties;

(iii) capital improvements at the Company’s properties;

1 unchanged sentence

The increases were partially offset by the sale of one operating property and the transfer of one property from Real estate properties to Development and value-add propertie s.

During six months ended June 30, 2023, EastGroup acquired the following property:

REAL ESTATE PROPERTY ACQUIRED IN 2023

During the nine months ended September 30, 2023, EastGroup acquired the following properties:

REAL ESTATE PROPERTIES ACQUIRED IN 2023

Location Size Date

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(Square feet) (In thousands)

Operating property acquired (2)

Operating properties acquired (2)

Craig Corporate Center

Las Vegas, NV 156,000 04/18/2023 $ 34,365

Blue Diamond Business Park Las Vegas, NV 254,000 09/05/2023 52,973

Total operating property acquisitions 410,000 $ 87,338

(1) Cost is calculated in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs.

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included in Real estate properties on the Consolidated Balance Sheets.

During the six months ended June 30, 2023, the Company made capital improvements of $28,924,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

During the nine months ended September 30, 2023, the Company made capital improvements of $43,054,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

Also, the Company incurred costs of $14,429,000 on development and value-add properties subsequent to transfer to Real estate properties ;

the Company records these expenditures as development and value-add costs on the Consolidated Statements of Cash Flows.

During the six months ended June 30, 2023, EastGroup sold a 125,000 square foot operating property, generating gross sales proceeds of $9,600,000.

The Company recognized $4,809,000 in Gain on sales of real estate investments during the six months ended June 30, 2023.

During the nine months ended September 30, 2023, EastGroup sold a 125,000 square foot operating property, generating gross sales proceeds of $9,600,000.

The Company recognized $4,809,000 in Gain on sales of real estate investments during the nine months ended September 30, 2023.

Development and Value-Add Properties

EastGroup’s investment in Development and value-add properties at June 30, 2023 consisted of projects in lease-up and under construction of $345,829,000 and prospective development (primarily land) of $213,279,000.

The Company’s total investment in Development and value-add properties at June 30, 2023 was $559,108,000 compared to $538,449,000 at December 31, 2022.

Total capital invested for development during the first six months of 2023 was $172,940,000, which primarily consisted of improvement costs of $145,931,000 on development and value-add properties and costs of $9,255,000 on properties subsequent to transfer to Real estate properties.

EastGroup’s investment in Development and value-add properties at September 30, 2023 consisted of projects in lease-up and under construction of $317,450,000 and prospective development (primarily land) of $235,011,000.

The Company’s total investment in Development and value-add properties at September 30, 2023 was $552,461,000 compared to $538,449,000 at December 31, 2022.

Total capital invested for development during the first nine months of 2023 was $286,256,000, which consisted of improvement costs of $227,359,000 on development and value-add properties, $44,468,000 for new land investments, and costs of $14,429,000 on properties subsequent to transfer to Real estate properties.

The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs).

The Company capitalized internal development costs of $2,357,000 and $4,812,000 for the three and six months ended June 30, 2023, respectively, compared to $2,617,000 and $5,086,000 for the same periods of 2022.

There were no value-add acquisitions during the six months ended June 30, 2023.

Also during the six months ended June 30, 2023, the Company acquired 116.7 acres of development land in Tampa, San Antonio and Phoenix for $17,754,000.

The Company capitalized internal development costs of $3,171,000 and $7,983,000 for the three and nine months ended September 30, 2023, respectively, compared to $2,388,000 and $7,474,000 for the same periods of 2022.

There were no value-add acquisitions during the nine months ended September 30, 2023.

During the nine months ended September 30, 2023, the Company acquired 210.1 acres of development land in Tampa, Dallas, San Antonio, Phoenix and Denver for $44,468,000.

Costs associated with these acquisitions are included in the Development and Value-Add Properties table.

These increases were offset by the transfer of six development and value-add projects to Real estate properties during the six months ended June 30, 2023 with a total investment of $143,531,000 as of the date of transfer.

These increases were offset by the transfer of 12 development and value-add projects to Real estate properties during the nine months ended September 30, 2023 with a total investment of $258,319,000 as of the date of

The Company also transferred one operating property to Development and value-add properties with a total investment of $4,553,000 as of the date of transfer.

During the six months ended June 30, 2023, EastGroup sold 11.9 acres of land, generating gross sales proceeds of $4,750,000.

The Company recognized $446,000 in gains on sales of non-operating real estate (included in Other on the Consolidated Statements of Income and Comprehensive Income) during the six months ended June 30, 2023.

A summary of the Company's Development and Value-Add Properties for the six months ended June 30, 2023 follows:

During the nine months ended September 30, 2023, EastGroup sold 11.9 acres of land, generating gross sales proceeds of $4,750,000.

A summary of the Company's Development and Value-Add Properties for the nine months ended September 30, 2023 follows:

Actual or Estimated Building Size Cumulative Costs Incurred as of 9/30/2023

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Prospective development (primarily land) 9,850,000 235,011

Total Development and value-add properties as of June 30, 2023

Total Development and value-add properties as of September 30, 2023

13,781,000 $ 552,461

Total Development and value-add properties transferred to Real estate

properties during the six months ended June 30, 2023

properties during the nine months ended September 30, 2023

2,241,000 $ 258,319 (1)

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Accumulated Depreciation

Accumulated depreciation on real estate, development and value-add properties increased $62,043,000 during the six months ended June 30, 2023, primarily due to depreciation expense, partially offset by the sale of one operating property.

Other assets increased $9,589,000 during the six months ended June 30, 2023.

Accumulated depreciation on real estate, development and value-add properties increased $95,498,000 during the nine months ended September 30, 2023, primarily due to depreciation expense, partially offset by the sale of one operating property.

Other assets increased $19,771,000 during the nine months ended September 30, 2023.

See Note 9 in the Notes to Consolidated Financial Statements for further details.

Unsecured bank credit facilities, net of debt issuance costs decreased $170,456,000 during the six months ended June 30, 2023, mainly due to repayments of $445,080,000 and new debt issuance costs incurred during the period, partially offset by borrowings of $275,080,000 and the amortization of debt issuance costs during the period.

Unsecured bank credit facilities, net of debt issuance costs decreased $170,214,000 during the nine months ended September 30, 2023, mainly due to repayments of $504,230,000 and new debt issuance costs incurred during the period, partially offset by borrowings of $334,230,000 and the amortization of debt issuance costs during the period.

The Company’s credit facilities are described in greater detail under Liquidity and Capital Resources .

Unsecured debt, net of debt issuance costs increased $34,765,000 during the six months ended June 30, 2023, primarily due to the closing of a $100,000,000 senior unsecured term loan in January and the amortization of debt issuance costs, partially offset by the repayment of a $65,000,000 term loan in March and new debt issuance costs incurred during the period.

Unsecured debt, net of debt issuance costs decreased $15,128,000 during the nine months ended September 30, 2023, primarily due to the repayment of a $65,000,000 term loan in March, the $50,000,000 principal repayment on its senior unsecured notes in August and new debt issuance costs incurred during the period.

These decreases were partially offset by the closing of a $100,000,000 senior unsecured term loan in January and the amortization of debt issuance costs.

The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources .

Accounts payable and accrued expenses increased $41,579,000 during the six months ended June 30, 2023.

Accounts payable and accrued expenses increased $81,131,000 during the nine months ended September 30, 2023.

Refer to Note 11 in the Notes to Consolidated Financial Statements for further details.

Other liabilities increased $2,178,000 during the six months ended June 30, 2023.

Other liabilities decreased $567,000 during the nine months ended September 30, 2023.

See Note 12 in the Notes to Consolidated Financial Statements for further details.

Additional paid-in capital increased $284,475,000 during the six months ended June 30, 2023, primarily due to the issuance of common stock under the Company’s continuous common equity offering program (as discussed in Liquidity and Capital Resources) and activity related to stock-based compensation (as discussed in Note 16 in the Notes to Consolidated Financial Statements).

During the six months ended June 30, 2023, EastGroup sold, and subsequently settled the issuance of, 1,718,587 shares of common stock through its continuous common equity offering program at a weighted average price of $166.63 per share, providing aggregate net proceeds to the Company of $283,070,000.

For the six months ended June 30, 2023, Distributions in excess of earnings increased $24,036,000 as a result of dividends on common stock of $112,176,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Additional paid-in capital increased $454,543,000 during the nine months ended September 30, 2023, primarily due to the issuance of common stock under the Company’s continuous common equity offering program (as discussed in Liquidity and Capital Resources) and activity related to stock-based compensation (as discussed in Note 16 in the Notes to Consolidated Financial Statements).

During the nine months ended September 30, 2023, EastGroup issued 2,671,657 shares of common stock through its continuous common equity offering program at a weighted average price of $170.46 per share, providing aggregate net proceeds to the Company of $450,385,000.

For the nine months ended September 30, 2023, Distributions in excess of earnings increased $34,294,000 as a result of dividends on common stock of $171,330,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders of $137,036,000.

Accumulated other comprehensive income decreased $60,000 during the six months ended June 30, 2023.

The decrease resulted from the change in fair value of the Company’s interest rate swaps (cash flow hedges) which are further discussed in Notes 13 and 14 in the Notes to Consolidated Financial Statements.

Accumulated other comprehensive income increased $5,717,000 during the nine months ended September 30, 2023.

The increase resulted from the change in fair value of the Company’s interest rate swaps (cash flow hedges) which are further discussed in Notes 13 and 14 in the Notes to Consolidated Financial Statements.

RESULTS OF OPERATIONS

Net Income Attributable to EastGroup Properties, Inc.

The following paragraphs provide further details with respect to these changes:

• EastGroup had no operating property sales during the three months ended June 30, 2023.

The Company recognized Gains on sales of real estate investments of $4,809,000 ($0.11 per diluted share) during the six months ended June 30, 2023.

EastGroup recognized gains on sales of real estate investments of $10,647,000 ($0.25 per diluted share) and $40,999,000 ($0.98 per diluted share) during the three and six months ended June 30, 2022, respectively.

• EastGroup had no operating property sales during the three months ended September 30, 2023.

The Company recognized Gains on sales of real estate investments of $4,809,000 ($0.11 per diluted share) during the nine months ended September 30, 2023.

EastGroup recognized Gains on sales of real estate investments of $40,999,000 ($0.97 per diluted share) during the nine months ended September 30, 2022.

There were no sales during the three months ended September 30, 2022.

The Company’s 2022 and 2023 sales transactions are described in Note 8 of the Notes to Consolidated Financial Statements .

• Depreciation and amortization expense increased by $4,834,000 ($0.11 per diluted share) and $9,507,000 ($0.21 per diluted share) during the three and six months ended June 30, 2023, respectively, as compared to the same periods in 2022.

• Depreciation and amortization expense increased by $3,244,000 ($0.07 per diluted share) and $12,751,000 ($0.28 per diluted share) during the three and nine months ended September 30, 2023, respectively, as compared to the same periods in 2022.

The increase is primarily due to the operating properties acquired by the Company in 2022 and 2023 and the properties transferred from Development and value-add properties in 2022 and 2023, partially offset by operating properties sold in 2022 and 2023.

• Interest expense increased by $3,605,000 ($0.08 per diluted share) and $8,520,000 ($0.19 per diluted share) during the three and six months ended June 30, 2023, respectively, as compared to the same periods of 2022.

• Interest expense increased by $1,517,000 ($0.03 per diluted share) and $10,037,000 ($0.22 per diluted share) during the three and nine months ended September 30, 2023, respectively, as compared to the same periods of 2022.

See the table below for details.

• PNOI increased by $15,109,000 ($0.34 per diluted share), or 17.5%, for the three months ended June 30, 2023, as compared to the same period in 2022.

• PNOI increased by $13,134,000 ($0.29 per diluted share), or 14.5%, for the three months ended September 30, 2023, as compared to the same period in 2022.

Lease termination fee income was $256,000 and $979,000 for the three month periods ended June 30, 2023 and 2022, respectively.

The Company recorded net reserves for uncollectible rent of $386,000 and $36,000 for the three months ended June 30, 2023 and 2022, respectively.

Straight-lining of rent increased PNOI by $2,963,000 and $1,450,000 for the three months ended June 30, 2023 and 2022, respectively.

PNOI increased by $31,003,000 ($0.70 per diluted share), or 18.4%, for the six months ended June 30, 2023, as compared to the same period in 2022.

Lease termination fee income was $221,000 and $24,000 for the three month periods ended September 30, 2023 and 2022, respectively.

The Company recorded net reserves for uncollectible rent of $446,000 and $198,000 for the three months ended September 30, 2023 and 2022, respectively.

Straight-lining of rent increased PNOI by $2,343,000 and $2,764,000 for the three months ended September 30, 2023 and 2022, respectively.

PNOI increased by $44,137,000 ($0.99 per diluted share), or 17.0%, for the nine months ended September 30, 2023, as compared to the same period in 2022.

PNOI increased $22,762,000 from newly developed and value-add properties, $13,665,000 from same property operations, and $7,862,000 from 2022 and 2023 acquisitions;

PNOI decreased $126,000 from operating properties sold in 2022 and 2023.

Lease termination fee income was $311,000 and $2,373,000 for the six month periods ended June 30, 2023 and 2022, respectively.

The Company recorded net reserves for uncollectible rent of $755,000 and net recoveries of uncollectible rent of $70,000 for the six months ended June 30, 2023 and 2022, respectively.

Straight-lining of rent increased PNOI by $6,444,000 and $3,890,000 for the six months ended June 30, 2023 and 2022, respectively.

• During the three and six months ended June 30, 2023, EastGroup recognized a gain on casualties and involuntary conversion of $1,042,000 ($0.02 per diluted share) and $2,069,000 ($0.05 per diluted share), respectively.

There were no gains on casualties and involuntary conversions during the three and six months ended June 30, 2022.

EastGroup entered into 22 leases with certain rent concessions on 626,000 square feet during the three months ended June 30, 2023, with total rent concessions of $1,099,000 over the lives of the leases.

Lease termination fee income was $532,000 and $2,397,000 for the nine month periods ended September 30, 2023 and 2022, respectively.

The Company recorded net reserves for uncollectible rent of $1,201,000 and $128,000 for the nine months ended September 30, 2023 and 2022, respectively.

Straight-lining of rent increased PNOI by $8,787,000 and $6,654,000 for the nine months ended September 30, 2023 and 2022, respectively.

• During the three and nine months ended September 30, 2023, EastGroup recognized gains on involuntary conversion and business interruption claims of $2,118,000 ($0.05 per diluted share) and $4,187,000 ($0.09 per diluted share), respectively.

There were no gains on involuntary conversion and business interruption claims during the three and nine months ended September 30, 2022.

EastGroup entered into 22 leases with certain rent concessions on 515,000 square feet during the three months ended September 30, 2023, with total rent concessions of $863,000 over the lives of the leases.

During the same period of 2022, the Company entered into 24 leases with certain rent concessions on 1,178,000 square feet with total rent concessions of $2,293,000 over the lives of the leases.

EastGroup entered into 40 leases with certain rent concessions on 1,822,000 square feet during the six months ended June 30, 2023, with total rent concessions of $4,267,000 over the lives of the leases.

EastGroup entered into 62 leases with certain rent concessions on 2,337,000 square feet during the nine months ended September 30, 2023, with total rent concessions of $5,130,000 over the lives of the leases.

During the same period of 2022, the Company entered into 90 leases with certain rent concessions on 3,824,000 square feet with total rent concessions of $6,126,000 over the lives of the leases.

The Company’s percentage of leased square footage for the operating portfolio was 98.5% at June 30, 2023, compared to 99.1% at June 30, 2022.

Occupancy for the Company’s operating portfolio at June 30, 2023 was 98.2% compared to 98.5% at June 30, 2022.

The following table presents the components of Interest expense for the three and six months ended June 30, 2023 and 2022:

The Company’s percentage of leased square footage for the operating portfolio was 98.5% at September 30, 2023, compared to 99.0% at September 30, 2022.

Occupancy for the Company’s operating portfolio at September 30, 2023 was 97.7% compared to 98.5% at September 30, 2022.

The following table presents the components of Interest expense for the three and nine months ended September 30, 2023 and 2022:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2023 2022 Increase

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(1) Includes interest on the Company’s unsecured debt with fixed interest rates per the debt agreements or effectively fixed interest rates due to interest rate swaps, as discussed in Note 14 in the Notes to Consolidated Financial Statements.

The Company’s variable rate interest expense increased by $448,000 and $1,168,000 for the three and six months ended June 30, 2023, respectively, as compared to the same periods in 2022 primarily due to an increase in the Company’s weighted average variable interest rates on its unsecured bank credit facilities, partially offset by a decrease in average borrowings, as shown in the following table:

The Company’s variable rate interest expense decreased by $1,333,000 and $165,000 for the three and nine months ended September 30, 2023, respectively, as compared to the same periods in 2022, primarily due to a decrease in average borrowings, partially offset by an increase in the Company’s weighted average variable interest rates on its unsecured bank credit facilities, as shown in the following table:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2023 2022 Increase

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6.09 % 3.36 % 5.56 % 1.84 %

The Company’s fixed rate interest expense increased by $4,336,000 and $10,022,000 for the three and six months ended June 30, 2023, as compared to the same periods in 2022 as a result of the unsecured debt and secured debt activity described below.

Interest expense from fixed rate unsecured debt increased by $4,285,000 and $9,880,000 during the three and six months ended June 30, 2023, as compared to the same periods in 2022.

The Company’s fixed rate interest expense increased by $3,529,000 and $13,551,000 for the three and nine months ended September 30, 2023, as compared to the same periods in 2022, primarily as a result of the unsecured debt activity described below.

Interest expense from fixed rate unsecured debt increased by $3,466,000 and $13,346,000 during the three and nine months ended September 30, 2023, as compared to the same periods in 2022.

The increases resulted from the Company’s unsecured debt activity described below.

The details of the unsecured debt obtained in 2022 and 2023 as of June 30, 2023 are shown in the following table:

The details of the unsecured debt obtained in 2022 and 2023 as of September 30, 2023 are shown in the following table:

NEW UNSECURED DEBT IN 2022 AND 2023

Effectively Fixed Interest Rate Date Obtained Maturity Date Amount

Margin Effectively Fixed Interest Rate Date Obtained Maturity Date Amount

(In thousands)

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0.95% 2.61% 03/31/2022 09/29/2028 $ 100,000

$150 Million Senior Unsecured Notes 3.03% 04/20/2022 04/20/2032 150,000

$150 Million Senior Unsecured Notes Not applicable 3.03% 04/20/2022 04/20/2032 150,000

$50 Million Senior Unsecured Term Loan (1)

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0.95% 4.00% 08/31/2022 08/31/2027 75,000

$75 Million Senior Unsecured Notes 4.90% 10/12/2022 10/12/2033 75,000

$75 Million Senior Unsecured Notes 4.95% 10/12/2022 10/12/2034 75,000

$75 Million Senior Unsecured Notes Not applicable 4.90% 10/12/2022 10/12/2033 75,000

$75 Million Senior Unsecured Notes Not applicable 4.95% 10/12/2022 10/12/2034 75,000

$100 Million Senior Unsecured Term Loan (1)

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3.98% $ 625,000

(1) The interest rate on this unsecured term loan is comprised of Term SOFR plus 140 basis points subject to a pricing grid for changes in the Company’s coverage ratings.

The Company entered into an interest rate swap to convert the loan’s Term SOFR rate to a fixed interest rate, providing the Company an effectively fixed interest rate on the term loan of 3.06% as of June 30, 2023.

See Note 14 in the Notes to Consolidated Financial Statements for additional information on the interest rate swaps.

(2) The interest rate on this unsecured term loan is comprised of Term SOFR plus 95 basis points subject to a pricing grid for changes in the Company’s coverage ratings.

See Note 14 in the Notes to Consolidated Financial Statements for additional information on the interest rate swaps.

(3) The interest rate on this unsecured term loan is comprised of Term SOFR plus 95 basis points subject to a pricing grid for changes in the Company’s coverage ratings.

See Note 14 in the Notes to Consolidated Financial Statements for additional information on the interest rate swaps.

(4) The interest rate on this unsecured term loan is comprised of Term SOFR plus 135 basis points subject to a pricing grid for changes in the Company’s coverage ratings.

See Note 14 in the Notes to Consolidated Financial Statements for additional information on the interest rate swaps.

(1) The interest rates on these unsecured term loans are comprised of Term SOFR plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings.

The Company entered into interest rate swap agreements (further described in Note 14) to convert the loans’ Term SOFR rates to effectively fixed interest rates.

The interest rates in the table above are the effectively fixed interest rates for the loans, including the effects of the interest rate swaps, as of September 30, 2023.

(2) This term loan was amended and refinanced effective September 29, 2023.

The margin was reduced by approximately 45 basis points, changing the effectively fixed rate from 3.06% to 2.61%.

The increase in interest expense from the new unsecured debt was partially offset by the repayment of the following unsecured debt during 2022 and 2023:

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$65 Million Senior Unsecured Term Loan 2.31% 03/31/2023 65,000

$50 Million Senior Unsecured Notes 3.80% 08/28/2023 50,000

Weighted Average/Total Amount for 2022 and 2023

2.99% $ 190,000

Also during 2022, the Company assumed a $60,000,000 loan in the acquisition of operating properties and development land, which was repaid with no penalty during the same period.

EastGroup did not obtain or repay any other secured debt during 2022 and 2023.

Interest costs during the period of construction of real estate properties are capitalized and offset against interest expense.

Capitalized interest increased $1,179,000 and $2,670,000 during the three and six months ended June 30, 2023, as compared to the same periods of 2022, due to increased borrowing rates and changes in development spending.

Capitalized interest increased $679,000 and $3,349,000 during the three and nine months ended September 30, 2023, as compared to the same periods of 2022, due to increased borrowing rates and changes in development spending.

Real Estate Improvements

Real estate improvements for EastGroup’s operating properties for the three and six months ended June 30, 2023 and 2022 were as follows:

Real estate improvements for EastGroup’s operating properties for the three and nine months ended September 30, 2023 and 2022 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2023 2022 2023 2022

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(1) Reconciliation of Total real estate improvements to Real estate improvements on the Consolidated Statements of Cash Flows:

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

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The costs are amortized over the terms of the associated leases, and the amortization is included in Depreciation and amortization expense.

Capitalized leasing costs for the three and six months ended June 30, 2023 and 2022 were as follows:

Capitalized leasing costs for the three and nine months ended September 30, 2023 and 2022 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2023 2022 2023 2022

7 unchanged sentences

(1) Reconciliation of Total capitalized leasing costs to Leasing commissions on the Consolidated Statements of Cash Flows:

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

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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 June 30, 2023 and December 31, 2022.

The Company did not classify any properties as held for sale as of September 30, 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 an operating property during the six months ended June 30, 2023, as discussed in Note 8 of the Notes to Consolidated Financial Statements .

The Company sold an operating property during the nine months ended September 30, 2023, as discussed in Note 8 of the Notes to Consolidated Financial Statements .

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.

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The Company anticipates that its current cash balance, operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt and/or proceeds from the issuance of equity instruments will be adequate for (i) operating and administrative expenses, (ii) normal repair and maintenance expenses at its properties, (iii) debt service obligations, (iv) maintaining compliance with its debt covenants, (v) distributions to stockholders, (vi) capital improvements, (vii) purchases of properties, (viii) development, and (ix) any other normal business activities of the Company, both in the short-term and long-term.

The Company expects liquidity sources and needs in the coming year to be consistent in nature with those for the six months ended June 30, 2023.

Net cash provided by operating activities was $178,779,000 for the six months ended June 30, 2023.

The primary other sources of cash were borrowings on unsecured bank credit facilities and unsecured debt;

proceeds from common stock offerings;

The Company expects liquidity sources and needs in the coming year to be consistent in nature with those for the nine months ended September 30, 2023.

Net cash provided by operating activities was $300,099,000 for the nine months ended September 30, 2023.

The primary other sources of cash were proceeds from common stock offerings;

borrowings on unsecured bank credit facilities and unsecured debt;

and net proceeds from sales of real estate investments and non-operating real estate.

The Company distributed $110,411,000 in common stock dividends during the six months ended June 30, 2023.

The Company distributed $166,960,000 in common stock dividends during the nine months ended September 30, 2023.

Other primary uses of cash were for repayments on unsecured bank credit facilities and unsecured debt;

3 unchanged sentences

and leasing commissions.

As of June 30, 2023, the Company was contractually obligated to pay the dividend declared in May 2023, which was paid in July 2023.

An amount for dividends payable of $57,717,000 was included in Accounts payable and accrued expenses at June 30, 2023, which includes dividends payable on unvested restricted stock of $1,168,000, which are subject to continued service and will be paid upon vesting in future periods.

As of September 30, 2023, the Company was contractually obligated to pay the dividend declared in August 2023, which was paid in October 2023.

An amount for dividends payable of $60,322,000 was included in Accounts payable and accrued expenses at September 30, 2023, which includes dividends payable on unvested restricted stock of $1,658,000, which are subject to continued service and will be paid upon vesting in future periods.

See Note 10 in the Notes to Consolidated Financial Statements for details summarizing the Company’s debt.

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The Company may also access the public debt market in the future as a means to raise capital.

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 June 30, 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%.

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 September 30, 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%.

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.

In August 2023, the Company made a $50,000,000 principal repayment on senior unsecured notes with a fixed interest rate of 3.80%.

In September 2023, EastGroup repaid a mortgage loan with a balance of $1,905,000, an interest rate of 3.85% and an original maturity date of November 30, 2026.

The Company has no remaining secured debt as of September 30, 2023.

Also in September 2023, the Company closed on the refinance of a $100,000,000 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 95 basis points, based on the Company’s current credit ratings and consolidated leverage ratio, which is a 45 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 2.61%.

On December 16, 2022, EastGroup entered into sales agreements with each of Robert W.

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and Wells Fargo Securities, LLC in connection with the establishment of a continuous common equity offering program pursuant to which the Company may sell shares of its common stock with an aggregate gross sales price of up to $750,000,000 from time to time.

As of July 26, 2023, the Company has sold an aggregate of 1,793,603 shares of common stock with gross proceeds of $299,309,000 under the sales agency financing agreements, and EastGroup may offer and sell additional shares of its common stock with an aggregate gross sales price of up to $450,691,000 through the sales agents.

During the six months ended June 30, 2023, EastGroup sold, and subsequently settled the issuance of, 1,793,603 shares of common stock under its continuous common equity offering program at a weighted average price of $166.88 per share with gross proceeds to the Company of $299,309,000.

The Company incurred offering-related costs of $3,433,000 during the six months, resulting in net proceeds to the Company of $295,876,000.

EastGroup’s other material cash requirements from known contractual and other obligations, including real estate property obligations, development and value-add obligations and tenant improvements as of December 31, 2022, did not materially change during the six months ended June 30, 2023.

As of October 25, 2023, the Company has sold an aggregate of 2,725,021 shares of common stock with gross proceeds of $464,305,000 under the sales agency financing agreements, and EastGroup may offer and sell additional shares of its common stock with an aggregate gross sales price of up to $285,695,000 through the sales agents.

During the nine months ended September 30, 2023, EastGroup sold, and subsequently settled the issuance of, 2,725,021 shares of common stock under its continuous common equity offering program at a weighted average price of $170.39 per share with gross proceeds to the Company of $464,305,000.

The Company incurred offering-related costs of $5,126,000 during the nine months, resulting in net proceeds to the Company of $459,179,000.

The Company has no material off-balance sheet arrangements that have had or are reasonably likely to have a material current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

21 unchanged sentences

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 2. Management’s Discussion and Analysis