What changed in this filing

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Item 1. Financial Statements

2024-10-24 compared with 2024-07-24 · 119 added, 78 removed, 679 unchanged (22% of the section changed)

4 unchanged sentences

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

September 30,

2024 December 31,

19 unchanged sentences

49,206,050 shares issued

and outstanding at June 30, 2024 and 47,700,432 at December 31, 2023

and outstanding at September 30, 2024 and 47,700,432 at December 31, 2023

Excess shares;

14 unchanged sentences

(IN THOUSANDS, EXCEPT PER SHARE DATA)

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

30 unchanged sentences

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

For the six months ended June 30, 2024:

For the nine months ended September 30, 2024:

Common Shares Additional

34 unchanged sentences

BALANCE, JUNE 30, 2024 5 3,112,554 ( 375,556 ) 29,687 257 2,766,947

Net income — — 55,180 — 14 55,194

Net unrealized change in fair value of interest rate swaps — — — ( 15,747 ) — ( 15,747 )

Common dividends declared — $ 1.40 per

— — ( 68,898 ) — — ( 68,898 )

Stock-based compensation, net of forfeitures

— 3,012 — — — 3,012

Issuance of 540,252 shares of common

stock, common stock offering, net of

— 92,210 — — — 92,210

Withheld 22 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock

— ( 3 ) — — — ( 3 )

Net distributions to noncontrolling interest — — — — ( 24 ) ( 24 )

BALANCE, SEPTEMBER 30, 2024 $ 5 3,207,773 ( 389,274 ) 13,940 247 2,832,691

See accompanying Notes to Consolidated Financial Statements (unaudited).

3 unchanged sentences

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

For the six months ended June 30, 2023:

For the nine months ended September 30, 2023:

Common Shares Additional

30 unchanged sentences

BALANCE, JUNE 30, 2023 4 2,535,996 ( 358,934 ) 36,311 344 2,213,721

Net income — — 48,896 — 14 48,910

Net unrealized change in fair value of interest rate swaps — — — 5,777 — 5,777

Common dividends declared — $ 1.27 per

— — ( 59,154 ) — — ( 59,154 )

Stock-based compensation, net of forfeitures

— 2,766 — — — 2,766

Issuance of 953,070 shares of common

stock, common stock offering, net of

— 167,315 — — — 167,315

Withheld 74 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock

— ( 13 ) — — — ( 13 )

Net distributions to noncontrolling interest — — — — ( 57 ) ( 57 )

BALANCE, SEPTEMBER 30, 2023 $ 4 2,706,064 ( 369,192 ) 42,088 301 2,379,265

See accompanying Notes to Consolidated Financial Statements (unaudited).

3 unchanged sentences

(IN THOUSANDS)

Six Months Ended June 30,

Nine Months Ended September 30,

OPERATING ACTIVITIES

53 unchanged sentences

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 June 30, 2024 and December 31, 2023, EastGroup had a 95 % controlling interest in a joint venture arrangement owning 6.5 acres of land in San Diego, known by the Company as Miramar Land.

As of September 30, 2024 and December 31, 2023, EastGroup had a 95 % controlling interest in a joint venture arrangement owning 6.5 acres of land in San Diego, known by the Company as Miramar Land.

During the year ended December 31, 2023, a joint venture, in which EastGroup owns a 99.5 % interest, acquired 29.3 acres of land in Denver, known by the Company as Arista 36 Business Park 1-3.

As of June 30, 2024 and December 31, 2023, EastGroup continued to hold a controlling interest in these two joint venture arrangements.

As of September 30, 2024 and December 31, 2023, EastGroup continued to hold a controlling interest in these two joint venture arrangements.

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 source of revenue is rental income from business distribution space.

The table below presents the components of Income from real estate operations for the three and six months ended June 30, 2024 and 2023:

The table below presents the components of Income from real estate operations for the three and nine months ended September 30, 2024 and 2023:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

10 unchanged sentences

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 value of the asset.

During the six month periods ended June 30, 2024 and 2023, the Company did not identify any impairment charges which should be recorded.

During the nine month periods ended September 30, 2024 and 2023, the Company did not identify any impairment charges which should be recorded.

EASTGROUP PROPERTIES, INC.

4 unchanged sentences

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

Depreciation expense was $ 37,646,000 and $ 74,851,000 for the three and six months ended June 30, 2024, respectively, and $ 34,690,000 and $ 68,536,000 for the same periods in 2023.

The Company’s Real estate properties and Development and value-add properties at June 30, 2024 and December 31, 2023 were as follows:

Depreciation expense was $ 40,046,000 and $ 114,897,000 for the three and nine months ended September 30, 2024, respectively, and $ 35,031,000 and $ 103,567,000 for the same periods in 2023.

The Company’s Real estate properties and Development and value-add properties at September 30, 2024 and December 31, 2023 were as follows:

September 30,

2024 December 31,

17 unchanged sentences

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:

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

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

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

Costs associated with development (i.e., land, construction costs, interest expense, property taxes and other costs associated with development) are aggregated into the total capitalized costs of the property.

11 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 2023 and the first six months of 2024 are considered to be acquisitions of groups of similar identifiable assets;

EastGroup determined that its real estate property acquisitions in 2023 and the first nine months of 2024 are considered to be acquisitions of groups of similar identifiable assets;

EASTGROUP PROPERTIES, INC.

14 unchanged sentences

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

Amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $ 546,000 and $ 1,153,000 for the three and six months ended June 30, 2024, respectively, and $ 696,000 and $ 1,295,000 for the same periods in 2023.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 1,893,000 and $ 3,819,000 for the three and six months ended June 30, 2024, respectively, and $ 2,174,000 and $ 4,136,000 for the same periods in 2023.

During the six months ended June 30, 2024, EastGroup acquired the following properties:

Amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $ 612,000 and $ 1,765,000 for the three and nine months ended September 30, 2024, respectively, and $ 560,000 and $ 1,855,000 for the same periods in 2023.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 2,009,000 and $ 5,828,000 for the three and nine months ended September 30, 2024, respectively, and $ 1,895,000 and $ 6,031,000 for the same periods in 2023.

During the nine months ended September 30, 2024, EastGroup acquired the following properties:

REAL ESTATE PROPERTIES ACQUIRED IN 2024

6 unchanged sentences

147 Exchange Raleigh, NC 274,000 05/03/2024 52,945

Hays Commerce Center 3 & 4 Austin, TX 179,000 08/19/2024 35,781

Total operating property acquisitions 684,000 $ 143,585

3 unchanged sentences

(3) Excludes acquired development land as discussed below.

There were no value-add acquisitions during the six months ended June 30, 2024.

There were no value-add acquisitions during the nine months ended September 30, 2024.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

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 were acquired during the six months ended June 30, 2024.

ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2024

12 unchanged sentences

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

The leases in the properties acquired during the six months ended June 30, 2024 had a weighted average remaining lease term at acquisition of approximately 5.9 years.

Also during the six months ended June 30, 2024, EastGroup purchased 34.3 acres of development land in Atlanta for $ 3,302,000 .

The leases in the properties acquired during the nine months ended September 30, 2024 had a weighted average remaining lease term at acquisition of approximately 5.7 years.

Also during the nine months ended September 30, 2024, EastGroup purchased 34.3 acres of development land in Atlanta for $ 3,302,000 .

During 2023, EastGroup acquired the following properties:

35 unchanged sentences

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 six month periods ended June 30, 2024 and 2023.

No impairment of goodwill or other intangibles existed during the three and nine month periods ended September 30, 2024 and 2023.

(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 June 30, 2024 and December 31, 2023.

The Company did not classify any properties as held for sale as of September 30, 2024 and December 31, 2023.

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.

6 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

A summary of Gain on sales of real estate investments for the six months ended June 30, 2024 and the year ended December 31, 2023 follows:

A summary of Gain on sales of real estate investments for the nine months ended September 30, 2024 and the year ended December 31, 2023 follows:

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

8 unchanged sentences

The table above includes sales of operating properties.

During the six months ended June 30, 2024, the Company also sold 3.9 acres of land in San Francisco for $ 4,000,000 and recognized a gain on the sale of $ 222,000 .

During the nine months ended September 30, 2024, the Company also sold 3.9 acres of land in San Francisco for $ 4,000,000 and recognized a gain on the sale of $ 222,000 .

During the year ended December 31, 2023, the Company sold 11.9 acres of land in Houston and Fort Worth for $ 4,750,000 and recognized gains on the sales of $ 446,000 .

3 unchanged sentences

A summary of the Company’s Other assets follows:

September 30,

2024 December 31,

24 unchanged sentences

The Company’s debt is detailed below:

September 30,

2024 December 31,

13 unchanged sentences

The credit facility contains options for two six-month extensions (at the Company's election) and an additional $ 625,000,000 accordion (with agreement by all parties).

The interest rate on each tranche is reset on a monthly basis and as of June 30, 2024, was Secured Overnight Financing Rate (“SOFR”) plus 76.5 basis points with an annual facility fee of 15 basis points.

As of June 30, 2024, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 6.202 %.

The interest rate on each tranche is reset on a monthly basis and as of September 30, 2024, was Secured Overnight Financing Rate (“SOFR”) plus 76.5 basis points with an annual facility fee of 15 basis points.

As of September 30, 2024, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 5.711 %.

The Company has two standby letters of credit totaling $ 2,655,000 pledged on this facility, which reduces borrowing capacity under the credit facility.

1 unchanged sentence

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 June 30, 2024, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of June 30, 2024, the interest rate was 6.205 % with no outstanding balance.

The interest rate is reset on a daily basis and as of September 30, 2024, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of September 30, 2024, the interest rate was 5.835 % with no outstanding balance.

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

4 unchanged sentences

The margin was effectively reduced on this unsecured bank credit facility by one basis point, from 77.5 to 76.5 basis points.

In August 2024, EastGroup repaid a $ 50,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 4.08 %.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Scheduled principal payments on long-term debt, including Unsecured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs ), as of June 30, 2024, are as follows:

Years Ending December 31, (In thousands)

MATURITY DATES Principal Payments Maturing

(In thousands)

2024 — Remainder of year $ 120,000

3 unchanged sentences

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

September 30,

2024 December 31,

11 unchanged sentences

A summary of the Company’s Other liabilities follows:

September 30,

2024 December 31,

16 unchanged sentences

Total Comprehensive Income is comprised of net income plus all other changes in equity from non-owner sources and is presented on the Consolidated Statements of Income and Comprehensive Income.

The components of Accumulated other comprehensive income are presented in the Company’s Consolidated Statement of Changes in Equity and are summarized below.

The components of Accumulated other comprehensive income are presented in the Company’s Consolidated Statements of Changes in Equity and are summarized below.

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

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

12 unchanged sentences

Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the term of the agreements without exchange of the underlying notional amount.

As of June 30, 2024, the Company had seven interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans.

As of September 30, 2024, the Company had six 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.

7 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of June 30, 2024 and December 31, 2023, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk:

Notional Value of Interest Rate Derivatives June 30,

As of September 30, 2024 and December 31, 2023, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk:

NOTIONAL VALUE OF INTEREST RATE DERIVATIVES September 30,

2024 December 31,

7 unchanged sentences

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 June 30, 2024 and December 31, 2023.

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, 2024 and December 31, 2023.

See Note 18 for additional information on the fair value of the Company’s interest rate swaps.

As of June 30, 2024

As of September 30, 2024

As of December 31, 2023

Balance Sheet Location Fair Value Balance Sheet Location Fair Value

DERIVATIVES DESIGNATED AS CASH FLOW HEDGES Balance Sheet Location Fair Value Balance Sheet Location Fair Value

(In thousands)

Derivatives designated as cash flow hedges:

Interest rate swap assets Other assets $ 17,339 Other assets $ 27,366

Interest rate swap liabilities Other liabilities 3,399 Other liabilities 2,478

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 six months ended June 30, 2024 and 2023:

The table below presents the effect of the Company’s derivative financial instruments (interest rate swaps) on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2024 and 2023:

Three Months Ended

June 30, Six Months Ended June 30,

2024 2023 2024 2023

(In thousands)

September 30, Nine Months Ended September 30,

DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS 2024 2023 2024 2023

Interest Rate Swaps:

Amount of income recognized in Other comprehensive income (loss)

(In thousands)

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

on derivatives

7 unchanged sentences

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.

As of June 30, 2024, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements.

As of September 30, 2024, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements.

If the Company had breached any of these provisions, it would be required to settle its obligations under the agreements at their termination value.

2 unchanged sentences

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

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

Common Stockholders by the weighted average number of common shares outstanding.

The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock.

Outstanding forward equity sale agreements are potentially dilutive securities excluded from the basic EPS

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Properties, Inc.

Common Stockholders by the weighted average number of common shares outstanding.

The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock.

These unvested restricted shares, although classified as issued and outstanding, are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested.

calculation until the agreements are settled, shares issued and proceeds received.

Although unvested restricted shares are classified as issued and outstanding, they are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested.

Diluted EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period and to each share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period.

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

16 unchanged sentences

On October 25, 2023, we established an at-the-market common stock offering program pursuant to which we are able to sell, from time to time, shares of our common stock having an aggregate gross sales price of up to $ 750,000,000 (the “Current 2023 ATM Program”).

The Current 2023 ATM Program replaces our previous $ 750,000,000 ATM program, which was established on December 16, 2022, under which we had sold shares of our common stock having an aggregate gross sales price of $ 464,305,000 through October 25, 2023.

The Current 2023 ATM Program replaced our previous $ 750,000,000 ATM program, which was established on December 16, 2022, under which we had sold shares of our common stock having an aggregate gross sales price of $ 464,305,000 through October 25, 2023.

In connection with the Current 2023 ATM Program, we may sell shares of our common stock directly through sales agents or through certain financial institutions acting as forward counterparties whereby, at our discretion, the forward counterparties, or their agents or affiliates, may borrow from third parties and subsequently sell shares of our common stock.

5 unchanged sentences

Direct Common Stock Issuance Activity

The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the six months ended June 30, 2024 and the year ended December 31, 2023:

The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the nine months ended September 30, 2024 and the year ended December 31, 2023:

Weighted Average Price Gross Proceeds Net Proceeds

4 unchanged sentences

218,929 168.62 36,916 36,547

Six months ended June 30, 2024 (2)

Three months ended September 30, 2024

239,750 179.74 43,093 42,663

Nine months ended September 30, 2024

458,679 $ 174.43 $ 80,009 $ 79,210

Twelve months ended December 31, 2023

1 unchanged sentence

(1) Excludes shares of common stock sold on a forward basis as described below.

(2) Excludes 77,650 shares sold on June 28, 2024, at a weighted average price of $168.63, providing net proceeds to the Company of $12,963,000.

These shares were not deemed to be issued and outstanding until settlement, subsequent to June 30, 2024, as disclosed in Note 22.

Forward Equity Offering Activity

The following table presents the Company’s forward equity offering activity during the three and six months ended June 30, 2024:

The following table presents the Company’s forward equity offering activity during the three and nine months ended September 30, 2024:

Common Stock Weighted Average Price Gross Proceeds

14 unchanged sentences

600,053 $ 166.65 $ 100,000

Forward sale agreements settled — shares issued and proceeds

( 300,502 ) 166.39 ( 50,000 )

New forward sale agreements (2)

1,099,612 185.80 204,306

Forward Sale Agreements Outstanding at September 30, 2024

1,399,163 $ 181.76 $ 254,306

(1) EastGroup settled outstanding forward equity sale agreements by issuing 272,342 shares of common stock in exchange for net proceeds of approximately $ 49,364,000 .

1 unchanged sentence

(3) EastGroup settled outstanding forward equity sale agreements by issuing 420,370 shares of common stock in exchange for net proceeds of approximately $ 76,200,000 .

(4) EastGroup settled outstanding forward equity sale agreements by issuing 300,502 shares of common stock in exchange for net proceeds of approximately $ 49,582,000 .

(17) STOCK-BASED COMPENSATION

5 unchanged sentences

For awards with a performance condition, compensation expense is recognized when the performance condition is considered probable of achievement.

The total compensation expense for service and performance based awards is based upon the fair market value of the shares on the grant date.

The grant date fair value for awards that have been granted and are subject to a future market condition (total shareholder return) are determined using a Monte Carlo simulation pricing model developed to specifically accommodate the unique features of the awards.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The total compensation expense for service and performance based awards is based upon the fair market value of the shares on the grant date.

During the restricted period for awards no longer subject to contingencies, the Company accrues dividends and holds the certificates for the shares;

23 unchanged sentences

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 $ 2,472,000 and $ 6,448,000 for the three and six months ended June 30, 2024, respectively, of which $ 400,000 and $ 1,040,000 was capitalized as part of the Company’s development costs.

For the three and six months ended June 30, 2023, stock-based compensation cost for employees was $ 2,579,000 and $ 5,831,000 , respectively, of which $ 601,000 and $ 1,294,000 was capitalized as part of the Company’s development costs.

Stock-based compensation expense for directors was $ 172,000 and $ 343,000 for the three and six months ended June 30, 2024, respectively, and $ 192,000 and $ 417,000 for the same periods in 2023.

Stock-based compensation cost for employees was $ 2,801,000 and $ 9,249,000 for the three and nine months ended September 30, 2024, respectively, of which $ 486,000 and $ 1,526,000 was capitalized as part of the Company’s development costs.

For the three and nine months ended September 30, 2023, stock-based compensation cost for employees was $ 2,593,000 and $ 8,424,000 , respectively, of which $ 886,000 and $ 2,180,000 was capitalized as part of the Company’s development costs.

Stock-based compensation expense for directors was $ 211,000 and $ 554,000 for the three and nine months ended September 30, 2024, respectively, and $ 174,000 and $ 591,000 for the same periods in 2023.

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, 2024, the Company withheld 33,381 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

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 six months ended June 30, 2024, the Company withheld 33,381 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 six months ended June 30, 2024 was $ 9,702,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the six months ended June 30, 2024 was $ 14,995,000 .

September 30, 2024 was $ 12,081,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the nine months ended September 30, 2024 was $ 15,004,000 .

Award Activity:

Three Months Ended

June 30, 2024 Six Months Ended June 30, 2024

September 30, 2024 Nine Months Ended September 30, 2024

Weighted Average Grant Date Fair Value

13 unchanged sentences

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 June 30, 2024 and December 31, 2023.

June 30, 2024 December 31, 2023

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, 2024 and December 31, 2023.

September 30, 2024 December 31, 2023

Carrying Amount (1)

15 unchanged sentences

• 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, SOFR swap curves, observable

The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves, 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.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

• Unsecured debt:

19 unchanged sentences

(22) SUBSEQUENT EVENTS

On June 28, 2024, the Company sold 77,650 shares of common stock under the Current 2023 ATM Program at a weighted average price of $ 168.63 providing net proceeds to the Company of $ 12,963,000 .

These shares were not deemed to be issued and outstanding until settlement in July 2024.

Subsequent to September 30, 2024, EastGroup settled outstanding forward equity sale agreements under the Current 2023 ATM Program by issuing 299,551 shares of common stock in exchange for net proceeds of approximately $ 49,385,000 .

In October, the Company acquired 25.6 acres in Nashville, Tennessee for approximately $ 10,100,000 .

This site is expected to accommodate the future development of four buildings, containing approximately 350,000 square feet.

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