What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2024-10-24 compared with 2024-07-24 · 165 added, 154 removed, 360 unchanged (47% of the section changed)

12 unchanged sentences

• fluctuations of occupancy or rental rates;

• potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the impacts of inflation;

• disruption in supply and delivery chains;

• construction costs could increase as a result of inflation impacting the costs to develop properties;

• acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections or to materialize at all;

• increased construction and development costs;

• acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all;

• potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, real estate investment trust (“REIT”) or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance;

2 unchanged sentences

• pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic;

• availability of financing and capital, increase in interest rates, and ability to raise equity capital on attractive terms;

• the availability of financing and capital, increases in interest rates, and our ability to raise equity capital on attractive terms;

• financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all;

17 unchanged sentences

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

During the six months ended June 30, 2024, economic uncertainty and stock market volatility have continued due to a number of factors, including sustained inflation, interest rate uncertainty and geopolitical conflict.

During the nine months ended September 30, 2024, economic uncertainty and stock market volatility have continued due to a number of factors, including periods of sustained inflation, interest rate uncertainty and geopolitical conflict.

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

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Direct Common Stock Issuance Activity

During the six months ended June 30, 2024, EastGroup sold, and subsequently settled the issuance of, 218,929 shares of common stock directly through sales agents under its current at-the-market common stock offering program (“Current 2023 ATM Program”) at a weighted average price of $168.62 per share, providing aggregate net proceeds to the Company of $36,547,000.

Excluded from this activity are 77,650 shares sold on June 28, 2024, at a weighted average price of $168.63 per share, providing aggregate net proceeds to the Company of $12,963,000, which were not deemed to be issued and outstanding until settlement in July 2024.

During the nine months ended September 30, 2024, EastGroup sold, and subsequently settled the issuance of, 458,679 shares of common stock directly through sales agents under its current at-the-market common stock offering program (“Current 2023 ATM Program”) at a weighted average price of $174.43 per share, providing aggregate net proceeds to the Company of $79,210,000.

Forward Equity Offering Activity

During the six months ended June 30, 2024, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under the Current 2023 ATM Program with respect to 886,724 shares of common stock with an initial weighted average forward price of $171.60 per share.

During the nine months ended September 30, 2024, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under the Current 2023 ATM Program with respect to 1,986,336 shares of common stock with an initial weighted average forward price of $179.46 per share.

The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time we entered into forward equity sale agreements.

Also during the six months ended June 30, 2024, the Company settled outstanding forward equity sale agreements that were previously entered into under the Current 2023 ATM Program by issuing 692,712 shares of common stock in exchange for net proceeds of approximately $125,564,000.

Also during the nine months ended September 30, 2024, the Company settled outstanding forward equity sale agreements that were previously entered into under the Current 2023 ATM Program by issuing 993,214 shares of common stock in exchange for net proceeds of approximately $175,146,000.

Additionally, on June 13, 2024, the Company amended its unsecured bank credit facilities to extend the maturity date by three years to July 31, 2028.

1 unchanged sentence

The Company’s primary source of revenue is rental income.

During the six months ended June 30, 2024, EastGroup executed new and renewal leases on 4,312,000 square feet (representing 7.7% of the operating portfolio’s total square footage of

For new and renewal leases signed during the first six months of 2024, average rental rates increased by 58.8% as compared to the former leases on the same spaces.

During the nine months ended September 30, 2024, EastGroup executed new and renewal leases on 6,617,000 square feet (representing 11.6% of the operating portfolio’s total square footage of 56,840,000).

For new and renewal leases signed during the first nine months of 2024, average rental rates increased by 55.9% 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 $2.37 for the six months ended June 30, 2024, compared to $1.99 for the same period of 2023, a 19.1% increase.

Common Stockholders was $3.49 for the nine months ended September 30, 2024, compared to $3.06 for the same period of 2023, a 14.1% increase.

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 period from January 1, 2023 through June 30, 2024), increased 5.1% for the six months ended June 30, 2024, as compared to the same period in 2023.

EastGroup’s operating portfolio was 97.4% leased and 97.1% occupied as of June 30, 2024, compared to 98.5% and 98.2%, respectively, at June 30, 2023.

As of July 23, 2024, the operating portfolio was 97.2% leased and 96.9% occupied.

As of June 30, 2024, leases approximating 3.8% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2024.

This percentage was reduced to 3.1% as of July 23, 2024.

Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire period from January 1, 2023 through September 30, 2024), increased 5.2% for the nine months ended September 30, 2024, as compared to the same period in 2023.

EastGroup’s operating portfolio was 96.9% leased and 96.5% occupied as of September 30, 2024, compared to 98.5% and 97.7%, respectively, at September 30, 2023.

As of October 23, 2024, the operating portfolio was 96.5% leased and 95.9% occupied.

As of September 30, 2024, leases approximating 1.4% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2024.

This percentage was reduced to 1.1% as of October 23, 2024.

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, 2024, EastGroup acquired 34.3 acres of development land in Atlanta for $3,302,000.

The Company also began construction of three development projects containing a total of 473,000 square feet in Orlando, Tampa and San Antonio.

EastGroup also transferred three development projects (427,000 square feet) in Miami, Dallas and Greenville from Development and value-add propertie s to Real estate properties , with costs of $62,286,000 at the date of transfer.

As of June 30, 2024, EastGroup’s development and value-add program consisted of 18 projects (4,123,000 square feet) located in 12 markets.

The projected total investment for the development projects, which were collectively 37.1% leased as of July 23, 2024, is $584,400,000, of which $156,179,000 remained to be invested as of June 30, 2024.

During the six months ended June 30, 2024, EastGroup acquired two operating properties in Las Vegas and Raleigh containing 505,000 square feet for $107,804,000.

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

The Company also began construction of five development projects, containing a total of 783,000 square feet in five markets.

EastGroup also transferred six development projects (1,162,000 square feet) in six markets from Development and value-add propertie s to Real estate properties , with costs of $157,567,000 at the date of transfer.

As of September 30, 2024, EastGroup’s development and value-add program consisted of 17 projects (3,698,000 square feet) located in 12 markets.

The projected total investment for the development projects, which were collectively 31.3% leased as of October 23, 2024, is $527,700,000, of which $135,309,000 remained to be invested as of September 30, 2024.

During the nine months ended September 30, 2024, EastGroup acquired operating properties in Austin, Las Vegas and Raleigh, containing 684,000 square feet for $143,585,000.

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

During the six months ended June 30, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet and 3.9 acres of land in San Francisco, generating gross sales proceeds of $18,050,000.

The Company recognized $8,751,000 in Gain on sales of real estate investments and $222,000 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, 2024.

During the nine months ended September 30, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market, containing 159,000 square feet and 3.9 acres of land in San Francisco, generating gross sales proceeds of $18,050,000.

The Company typically initially funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed in Liquidity and Capital Resources ).

12 unchanged sentences

FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S.

generally accepted accounting principles (“GAAP”), excluding gains and losses from sales of real estate property (including other assets

incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures.

generally accepted accounting principles (“GAAP”), excluding gains and losses from sales of real estate property (including other assets incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and

after adjustments for unconsolidated partnerships and joint ventures.

FFO is not considered as an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, nor is it a measure of the Company’s liquidity or indicative of funds available to provide for the Company’s cash needs, including its ability to make distributions.

6 unchanged sentences

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

For the three and six months ended June 30, 2024, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through June 30, 2024.

For the three and nine months ended September 30, 2024, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through September 30, 2024.

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.

4 unchanged sentences

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, 2024 and 2023.

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, 2024 and 2023.

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

22 unchanged sentences

SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS $ 103,835 98,442 307,573 292,306

PNOI was calculated as follows for the three and six months ended June 30, 2024 and 2023.

PNOI was calculated as follows 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

5 unchanged sentences

PROPERTY NET OPERATING INCOME (“PNOI”) $ 118,990 103,961 344,128 303,369

Income from real estate operations is comprised of rental income, net of reserves for uncollectible rent, expense reimbursement pass-through income and other real estate income including lease termination fees.

Income from real estate operations is comprised of rental income, net of reserves of uncollectible rent, expense reimbursement pass-through income and other real estate income including lease termination fees.

Expenses from real estate operations is comprised of property taxes, insurance, utilities, repair and maintenance expenses, management fees and other operating costs.

5 unchanged sentences

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, 2024 and 2023.

Common Stockholders to FFO Attributable to Common Stockholders 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

16 unchanged sentences

• Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders for the three and six months ended June 30, 2024 was $55,287,000 ($1.15 per basic and $1.14 per diluted share) and $113,931,000 ($2.37 per basic and diluted share), respectively, compared to $43,450,000 ($0.97 per basic and diluted share) and $88,140,000 ($1.99 per basic and diluted share) for the same periods in 2023.

Common Stockholders for the three and nine months ended September 30, 2024 was $55,180,000 ($1.13 per basic and diluted share) and $169,111,000 ($3.50 per basic and $3.49 per diluted share), respectively, compared to $48,896,000 ($1.07 per basic and diluted share) and $137,036,000 ($3.07 per basic and $3.06 per diluted share) for the same periods in 2023.

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, 2024, FFO was $2.09 per share compared with $1.91 per share for the same period of 2023, an increase of 9.4%.

For the six months ended June 30, 2024, FFO was $4.07 per share compared with $3.75 per share for the same period of 2023, an increase of 8.5%.

FFO increased during the three and six months ended June 30, 2024, as compared to the same periods in 2023, primarily due to the increase in PNOI and the decrease in interest expense.

• For the three months ended June 30, 2024, PNOI increased by $12,437,000, or 12.3%, as compared to the same period in 2023.

For the three months ended September 30, 2024, FFO was $2.13 per share compared with $2.00 per share for the same period of 2023, an increase of 6.5%.

For the nine months ended September 30, 2024, FFO was $6.19 per share compared with $5.75 per share for the same period of 2023, an increase of 7.7%.

FFO increased during the three and nine months ended September 30, 2024, as compared to the same periods in 2023, primarily due to the increase in PNOI and the decrease in interest expense, partially offset by an increase in general and administrative expense.

• For the three months ended September 30, 2024, PNOI increased by $15,029,000, or 14.5%, as compared to the same period in 2023.

PNOI increased $6,917,000 from same property operations, $4,897,000 from newly developed and value-add properties, and $3,978,000 from 2023 and 2024 acquisitions;

PNOI decreased $792,000 from operating properties sold in 2023 and 2024.

For the six months ended June 30, 2024, PNOI increased by $25,730,000, or 12.9%, as compared to the same period in 2023.

PNOI increased $9,902,000 from newly developed and value-add properties, $9,775,000 from same property operations, and $7,121,000 from 2023 and 2024 acquisitions;

For the nine months ended September 30, 2024, PNOI increased by $40,759,000, or 13.4%, as compared to the same period in 2023.

PNOI increased $16,692,000 from same property operations, $14,799,000 from newly developed and value-add properties, and $11,099,000 from 2023 and 2024 acquisitions;

PNOI decreased $1,956,000 from operating properties sold in 2023 and 2024.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2023 through June 30, 2024.

Same PNOI, excluding income from lease terminations, increased 5.3% and 5.1% for the three and six months ended June 30, 2024, as compared to the same periods in 2023.

during the entire current and prior year reporting periods (January 1, 2023 through June 30, 2024).

Same property average occupancy was 96.9% for the three months ended June 30, 2024, compared to 98.1% for the same period of 2023.

Same property average occupancy was 97.2% for the six months ended June 30, 2024, compared to 98.3% for the same period of 2023.

• 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, 2023 through June 30, 2024).

The same property average rental rate was $8.18 and $8.12 per square foot for the three and six months ended June 30, 2024, respectively, compared to $7.70 and $7.65 per square foot for the same periods of 2023.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2023 through September 30, 2024.

Same PNOI, excluding income from lease terminations, increased 5.5% and 5.2% for the three and nine months ended September 30, 2024, as compared to the same periods in 2023.

• 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, 2023 through September 30, 2024).

Same property average occupancy was 96.7% for the three months ended September 30, 2024, compared to 97.9% for the same period of 2023.

Same property average occupancy was 97.0% for the nine months ended September 30, 2024, compared to 98.2% for the same period of 2023.

The same property average rental rate was $8.28 and $8.17 per square foot for the three and nine months ended September 30, 2024, respectively, compared to $7.79 and $7.69 per square foot for the same periods of 2023.

• 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, 2024 was 97.1%.

Quarter-end occupancy ranged from 97.7% to 98.2% over the previous four quarters ended June 30, 2023 to March 31, 2024.

Occupancy at September 30, 2024 was 96.5%.

Quarter-end occupancy ranged from 97.1% to 98.2% over the previous four quarters ended September 30, 2023 to June 30, 2024.

• 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 59.7% for the three months ended June 30, 2024.

For the six months ended June 30, 2024, rental rate increases on new and renewal leases (7.7% of the operating portfolio’s total square footage) averaged 58.8%.

Rental rate increases on new and renewal leases (4.1% of the operating portfolio’s total square footage) averaged 50.9% for the three months ended September 30, 2024.

For the nine months ended September 30, 2024, rental rate increases on new and renewal leases (11.6% of the operating portfolio’s total square footage) averaged 55.9%.

• 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, 2024 was $65,000 and $212,000, respectively, compared to $256,000 and $311,000 for the same periods of 2023.

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

Lease termination fee income for the three and nine months ended September 30, 2024 was $1,745,000 and $1,957,000, respectively, compared to $221,000 and $532,000 for the same periods of 2023.

• The Company records reserves of 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 $646,000 and $1,421,000 for the three and six months ended June 30, 2024, compared to $386,000 and $755,000 for the same periods of 2023.

The Company recorded net reserves of uncollectible rent of $1,113,000 and $2,534,000 for the three and nine months ended September 30, 2024, respectively, compared to $446,000 and $1,201,000 for the same periods of 2023.

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, 2024.

The Company followed its normal process for recording reserves of uncollectible rent during the three and nine months ended September 30, 2024.

FINANCIAL CONDITION

EastGroup’s Total Assets were $4,714,693,000 at June 30, 2024, an increase of $195,480,000 from December 31, 2023.

EastGroup’s Total Assets were $4,754,065,000 at September 30, 2024, an increase of $234,852,000 from December 31, 2023.

Total Liabilities increased $10,795,000 to $1,921,374,000, and Total Equity increased $224,057,000 to $2,832,691,000 during the same period.

1 unchanged sentence

Real Estate Properties

Real estate properties increased $185,651,000 during the six months ended June 30, 2024, primarily due to:

(i) the acquisitions of two operating properties;

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

Real estate properties increased $330,509,000 during the nine months ended September 30, 2024, primarily due to:

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

(ii) the acquisition of operating properties;

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

and (iv) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below.

The increases were partially offset by the sale of a group of operating properties.

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

The increases were partially offset by the sale of operating properties.

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

REAL ESTATE PROPERTIES ACQUIRED IN 2024

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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

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(3) Excludes acquired development land as discussed below.

During the six months ended June 30, 2024, the Company made capital improvements of $29,634,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

During the nine months ended September 30, 2024, the Company made capital improvements of $47,183,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

Also, the Company incurred costs of $3,009,000 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, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet, generating gross sales proceeds of $14,050,000.

The Company recognized $8,751,000 in Gain on sales of real estate investments during the six months ended June 30, 2024.

During the nine months ended September 30, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet, generating gross sales proceeds of $14,050,000.

The Company recognized $8,751,000 in Gain on sales of real estate investments during the nine months ended September 30, 2024.

Development and Value-Add Properties

EastGroup’s investment in Development and value-add properties at June 30, 2024 consisted of projects in lease-up and under construction of $428,221,000 and prospective development (primarily land) of $264,851,000.

The Company’s total investment in Development and value-add properties at June 30, 2024 was $693,072,000 compared to $639,647,000 at December 31, 2023.

Total capital invested for development during the first six months of 2024 was $122,898,000, which consisted of improvement costs of $117,916,000 on development and value-add properties, $3,302,000 for new land investments, and costs of $1,680,000 on properties subsequent to transfer to Real estate properties.

EastGroup’s investment in Development and value-add properties at September 30, 2024 consisted of projects in lease-up and under construction of $392,391,000 and prospective development (primarily land) of $261,701,000.

The Company’s total investment in Development and value-add properties at September 30, 2024 was $654,092,000 compared to $639,647,000 at December 31, 2023.

Total capital invested for development during the first nine months of 2024 was $181,353,000, which consisted of improvement costs of $175,042,000 on development and value-add properties, $3,302,000 for new land investments, and costs of $3,009,000 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 $2,032,000 and $4,255,000 for the three and six months ended June 30, 2024, respectively, compared to $2,357,000 and $4,812,000 for the same periods of 2023.

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

During the six months ended June 30, 2024, the Company acquired 34.3 acres of development land in Atlanta for $3,302,000.

The Company capitalized internal development costs of $1,903,000 and $6,158,000 for the three and nine months ended September 30, 2024, respectively, compared to $3,171,000 and $7,983,000 for the same periods of 2023.

The decrease was due to starting fewer development projects in the nine months ended September 30, 2024, as compared to the same period of 2023.

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

During the nine months ended September 30, 2024, the Company acquired 34.3 acres of development land in Atlanta for $3,302,000.

Costs associated with this acquisition are included in the Development and Value-Add Properties table.

These increases were offset by the transfer of three development and value-add projects to Real estate properties during the six months ended June 30, 2024 with a total investment of $62,286,000 as of the date of transfer.

During the six months ended June 30, 2024, EastGroup sold 3.9 acres of land in San Francisco, generating gross sales proceeds of $4,000,000.

The Company recognized $222,000 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, 2024.

A summary of the Company's Development and Value-Add Properties for the six months ended June 30, 2024 follows:

These increases were offset by the transfer of six development and value-add projects to Real estate properties during the nine months ended September 30, 2024 with a total investment of $157,567,000 as of the date of transfer.

During the nine months ended September 30, 2024, EastGroup sold 3.9 acres of land in San Francisco, generating gross sales proceeds of $4,000,000.

A summary of the Company's Development and Value-Add Properties for the nine months ended September 30, 2024 follows:

Actual or Estimated Building Size Cumulative Costs Incurred as of 9/30/2024

5 unchanged sentences

Prospective development (primarily land) 10,270,000 261,701

Total Development and value-add properties as of June 30, 2024

Total Development and value-add properties as of September 30, 2024

13,968,000 $ 654,092

Total Development and value-add properties transferred to Real estate

properties during the six months ended June 30, 2024

properties during the nine months ended September 30, 2024

1,162,000 $ 157,567 (1)

1 unchanged sentence

Accumulated Depreciation

Accumulated depreciation on real estate, development and value-add properties increased $62,812,000 during the six months ended June 30, 2024, primarily due to depreciation expense, partially offset by the sale of operating properties.

Other assets increased $20,225,000 during the six months ended June 30, 2024.

Accumulated depreciation on real estate, development and value-add properties increased $102,475,000 during the nine months ended September 30, 2024, primarily due to depreciation expense, which increased due to operating properties acquired in 2023 and 2024 and properties transferred to Real estate properties .

This increase was partially offset by the sale of operating properties.

Other assets increased $16,049,000 during the nine months ended September 30, 2024.

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

Unsecured bank credit facilities, net of debt issuance costs decreased $2,580,000 during the six months ended June 30, 2024, mainly due to repayments of $31,863,000 and new debt issuance costs incurred during the period, offset by borrowings of $31,863,000 and the amortization of debt issuance costs during the period.

Unsecured bank credit facilities, net of debt issuance costs decreased $2,328,000 during the nine months ended September 30, 2024, mainly due to repayments of $55,262,000 and new debt issuance costs incurred during the period, offset by borrowings of $55,262,000 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 $452,000 during the six months ended June 30, 2024, primarily due to the amortization of debt issuance costs during the period.

Unsecured debt, net of debt issuance costs decreased $49,329,000 during the nine months ended September 30, 2024, primarily due to the repayment of a $50,000,000 term loan in August.

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 $42,500,000 during the six months ended June 30, 2024.

Accounts payable and accrued expenses increased $58,983,000 during the nine months ended September 30, 2024.

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

Other liabilities decreased $3,205,000 during the six months ended June 30, 2024.

Other liabilities increased $3,469,000 during the nine months ended September 30, 2024.

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

Additional paid-in capital increased $162,647,000 during the six months ended June 30, 2024, primarily due to the issuance of common stock under the Company’s Current 2023 ATM Program (as discussed in Note 16 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 17 in the Notes to Consolidated Financial Statements).

For the six months ended June 30, 2024, Distributions in excess of earnings increased $9,083,000 as a result of dividends on common stock of $123,014,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Additional paid-in capital increased $257,866,000 during the nine months ended September 30, 2024, primarily due to the issuance of common stock under the Company’s Current 2023 ATM Program (as discussed in Note 16 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 17 in the Notes to Consolidated Financial Statements).

For the nine months ended September 30, 2024, Distributions in excess of earnings increased $22,801,000 as a result of dividends on common stock of $191,912,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders of $169,111,000.

Accumulated other comprehensive income increased $4,799,000 during the six months ended June 30, 2024.

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.

Accumulated other comprehensive income decreased $10,948,000 during the nine months ended September 30, 2024.

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.

RESULTS OF OPERATIONS

Net Income Attributable to EastGroup Properties, Inc.

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

• PNOI increased by $12,437,000 ($0.26 per diluted share), or 12.3%, for the three months ended June 30, 2024, as compared to the same period in 2023.

• PNOI increased by $15,029,000 ($0.31 per diluted share), or 14.5%, for the three months ended September 30, 2024, as compared to the same period in 2023.

PNOI increased $6,917,000 from same property operations, $4,897,000 from newly developed and value-add properties, and $3,978,000 from 2023 and 2024 acquisitions;

PNOI decreased $792,000 from operating properties sold in 2023 and 2024.

Lease termination fee income was $65,000 and $256,000 for the three month periods ended June 30, 2024 and 2023, respectively.

The Company recorded net reserves for uncollectible rent of $646,000 and $386,000 for the three months ended June 30, 2024 and 2023, respectively.

Straight-lining of rent increased Income from real estate operations by $3,256,000 and $2,925,000 for the three months ended June 30, 2024 and 2023, respectively.

PNOI increased by $25,730,000 ($0.53 per diluted share), or 12.9%, for the six months ended June 30, 2024, as compared to the same period in 2023.

PNOI increased $9,902,000 from newly developed and value-add properties, $9,775,000 from same property operations, and $7,121,000 from 2023 and 2024 acquisitions;

Lease termination fee income was $1,745,000 and $221,000 for the three month periods ended September 30, 2024 and 2023, respectively.

The Company recorded net reserves of uncollectible rent of $1,113,000 and $446,000 for the three months ended September 30, 2024 and 2023, respectively.

Straight-lining of rent increased Income from real estate operations by $3,354,000 and $2,343,000 for the three months ended September 30, 2024 and 2023, respectively.

PNOI increased by $40,759,000 ($0.84 per diluted share), or 13.4%, for the nine months ended September 30, 2024, as compared to the same period in 2023.

PNOI increased $16,692,000 from same property operations, $14,799,000 from newly developed and value-add properties, and $11,099,000 from 2023 and 2024 acquisitions;

PNOI decreased $1,956,000 from operating properties sold in 2023 and 2024.

Lease termination fee income was $212,000 and $311,000 for the six month periods ended June 30, 2024 and 2023, respectively.

The Company recorded net reserves for uncollectible rent of $1,421,000 and $755,000 for the six months ended June 30, 2024 and 2023, respectively.

Straight-lining of rent increased Income from real estate operations by $5,739,000 and $6,367,000 for the six months ended June 30, 2024 and 2023, respectively.

• EastGroup had no operating property sales during the three months ended June 30, 2024 and 2023.

The Company recognized Gains on sales of real estate investments of $8,751,000 ($0.18 per diluted share) and $4,809,000 ($0.11 per diluted share) during the six months ended June 30, 2024 and 2023, respectively.

Lease termination fee income was $1,957,000 and $532,000 for the nine month periods ended September 30, 2024 and 2023, respectively.

The Company recorded net reserves of uncollectible rent of $2,534,000 and $1,201,000 for the nine months ended September 30, 2024 and 2023, respectively.

Straight-lining of rent increased Income from real estate operations by $9,093,000 and $8,787,000 for the nine months ended September 30, 2024 and 2023, respectively.

• EastGroup had no operating property sales during the three months ended September 30, 2024 and 2023.

The Company recognized Gains on sales of real estate investments of $8,751,000 ($0.18 per diluted share) and $4,809,000 ($0.11 per diluted share) during the nine months ended September 30, 2024 and 2023, respectively.

The Company’s 2023 and 2024 sales transactions are described in Note 8 of the Notes to Consolidated Financial Statements .

• Depreciation and amortization expense increased by $3,368,000 ($0.07 per diluted share) and $7,523,000 ($0.16 per diluted share) during the three and six months ended June 30, 2024, respectively, as compared to the same periods in 2023.

• Depreciation and amortization expense increased by $6,396,000 ($0.13 per diluted share) and $13,919,000 ($0.29 per diluted share) during the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023.

The increase is primarily due to the operating properties acquired by the Company in 2023 and 2024 and the properties transferred from Development and value-add properties in 2023 and 2024, partially offset by operating properties sold in 2023 and 2024.

• Interest expense decreased by $2,743,000 ($0.06 per diluted share) and $5,707,000 ($0.12 per diluted share) during the three and six months ended June 30, 2024, as compared to the same periods of 2023.

• Interest expense decreased by $1,417,000 ($0.03 per diluted share) and $7,124,000 ($0.15 per diluted share) during the three and nine months ended September 30, 2024, as compared to the same periods of 2023.

Refer to the table below for additional details.

• EastGroup recognized gains on involuntary conversion and business interruption claims of $1,708,000 ($0.04 per diluted share) and $1,042,000 ($0.02 per diluted share) during the three months ended June 30, 2024 and 2023, respectively.

During the six months ended June 30, 2024 and 2023, the Company recognized gains on involuntary conversion and business interruption claims of $1,708,000 ($0.04 per diluted share) and $2,069,000 ($0.05 per diluted share), respectively.

• There were no gains on involuntary conversion and business interruption claims during the three months ended September 30, 2024.

EastGroup recognized gains on involuntary conversion and business interruption claims of $2,118,000 ($0.05 per diluted share) during the three months ended September 30, 2023.

During the nine months ended September 30, 2024 and 2023, the Company recognized gains on involuntary conversion and business interruption claims of $1,708,000 ($0.04 per diluted share) and $4,187,000 ($0.09 per diluted share), respectively.

Gains on involuntary conversion and business interruption claims are included in Other revenue on the Consolidated Statements of Income and Comprehensive Income.

EastGroup entered into 33 leases with certain rent concessions on 1,293,000 square feet during the three months ended June 30, 2024, with total rent concessions of $3,549,000 over the terms of the leases.

• Weighted average shares outstanding increased by 3,211,000 and 3,653,000, on a diluted basis, during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023.

The increase is primarily due to issuance of shares through common stock offerings, as discussed in Liquidity and Capital Resources .

EastGroup entered into 33 leases with certain rent concessions on 1,109,000 square feet during the three months ended September 30, 2024, with total rent concessions of $2,801,000 over the terms of the leases.

During the same period of 2023, the Company entered into 22 leases with certain rent concessions on 515,000 square feet with total rent concessions of $863,000 over the terms of the leases.

EastGroup entered into 66 leases with certain rent concessions on 2,835,000 square feet during the six months ended June 30, 2024, with total rent concessions of $6,118,000 over the terms of the leases.

EastGroup entered into 99 leases with certain rent concessions on 3,944,000 square feet during the nine months ended September 30, 2024, with total rent concessions of $8,919,000 over the terms of the leases.

During the same period of 2023, the Company entered into 62 leases with certain rent concessions on 2,337,000 square feet with total rent concessions of $5,130,000 over the terms of the leases.

The Company’s percentage of leased square footage for the operating portfolio was 97.4% at June 30, 2024, compared to 98.5% at June 30, 2023.

Occupancy for the Company’s operating portfolio at June 30, 2024 was 97.1% compared to 98.2% at June 30, 2023.

The following table presents the components of Interest expense for the three and six months ended June 30, 2024 and 2023:

The Company’s percentage of leased square footage for the operating portfolio was 96.9% at September 30, 2024, compared to 98.5% at September 30, 2023.

Occupancy for the Company’s operating portfolio at September 30, 2024 was 96.5% compared to 97.7% at September 30, 2023.

The following table presents the components of Interest expense 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 Increase

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$ 35 155 (120) 101 2,260 (2,159)

Amortization of facility fees — unsecured bank credit facilities 252 253 (1) 504 495 9

Amortization of debt issuance costs — unsecured bank credit facilities 253 253 — 506 497 9

Amortization of facility fees — unsecured bank credit

254 255 (1) 758 750 8

Amortization of debt issuance costs — unsecured bank

credit facilities

265 253 12 771 750 21

Total variable rate interest expense 554 663 (109) 1,630 3,760 (2,130)

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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 decreased by $943,000 and $2,021,000 for the three and six months ended June 30, 2024, respectively, as compared to the same periods in 2023, 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:

The Company’s variable rate interest expense decreased by $109,000 and $2,130,000 for the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023, 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,

2024 2023 Increase

1 unchanged sentence

(In thousands, except rates of interest)

Average borrowings on unsecured bank credit facilities - variable rate $ 1,518 66,900 (65,382) 2,111 76,793 (74,682)

Average borrowings on unsecured bank credit

facilities - variable rate

$ 2,175 10,076 (7,901) 2,133 54,309 (52,176)

Weighted average variable interest rates

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6.32 % 6.09 % 6.30 % 5.56 %

The Company’s fixed rate interest expense decreased by $641,000 and $1,409,000 for the three and six months ended June 30, 2024, respectively, as compared to the same periods in 2023, primarily as a result of the unsecured debt activity described below.

During the three and six months ended June 30, 2024, EastGroup did not obtain, repay, or refinance any unsecured debt.

The following table presents the details of unsecured debt repayments during the year ended December 31, 2023:

UNSECURED DEBT REPAID IN 2023

The Company’s fixed rate interest expense decreased by $652,000 and $2,061,000 for the three and nine months ended September 30, 2024, respectively, as compared to the same periods in 2023, primarily as a result of the unsecured debt activity described below.

The following table presents the details of unsecured debt repayments during the nine months ended September 30, 2024 and the year ended December 31, 2023:

UNSECURED DEBT REPAID IN 2023 AND 2024

Interest Rate Date Repaid Payoff Amount

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

Weighted Average/Total Amount for 2023

$50 Million Senior Unsecured Term Loan 4.08% 08/30/2024 50,000

Weighted Average/Total Amount for 2023 and 2024

3.30% $ 165,000

During the three and nine months ended September 30, 2024, EastGroup did not obtain or refinance any unsecured debt.

In September 2023, the Company refinanced a $100,000,000 senior unsecured term loan, reducing the effectively fixed interest rate by approximately 45 basis points.

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The Company entered into an interest rate swap agreement (further described in Note 14 in the Notes to Consolidated Financial Statements) to convert the loan’s Term SOFR rate to an effectively fixed interest rate.

The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swap, as of June 30, 2024.

The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swap, as of September 30, 2024.

EastGroup’s financing and debt maturities are further described in Liquidity and Capital Resources .

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

Capitalized interest increased $1,159,000 and $2,277,000 during the three and six months ended June 30, 2024, respectively, as compared to the same periods of 2023, due to changes in development activity and spending.

Capitalized interest increased $656,000 and $2,933,000 during the three and nine months ended September 30, 2024, respectively, as compared to the same periods of 2023, due to changes in development activity and spending.

Real Estate Improvements

Real estate improvements for EastGroup’s operating properties for the three and six months ended June 30, 2024 and 2023 were as follows:

Real estate improvements for EastGroup’s operating properties for the three and nine months ended September 30, 2024 and 2023 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2024 2023 2024 2023

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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, 2024 and 2023 were as follows:

Capitalized leasing costs for the three and nine months ended September 30, 2024 and 2023 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2024 2023 2024 2023

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(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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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, 2024.

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, 2024.

As market conditions permit, EastGroup issues equity and/or employs fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace the short-term bank borrowings.

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The Company may also access the public debt or convertible bond markets in the future as a means to raise capital.

As of June 30, 2024, EastGroup had total immediate liquidity of approximately $811,745,000, comprised of $39,400,000 of cash and cash equivalents, $672,345,000 of availability on our unsecured credit facilities, and approximately $100,000,000 of gross proceeds available on our outstanding forward equity sale agreements.

Net cash provided by operating activities was $239,761,000 for the six months ended June 30, 2024.

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

As of September 30, 2024, EastGroup had total immediate liquidity of approximately $943,608,000, comprised of $16,957,000 of cash and cash equivalents, $672,345,000 of availability on our unsecured credit facilities, and approximately $254,306,000 of gross proceeds available on our outstanding forward equity sale agreements.

See further details discussed below.

Net cash provided by operating activities was $362,693,000 for the nine months ended September 30, 2024.

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

1 unchanged sentence

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

The Company distributed $122,337,000 in common stock dividends during the six months ended June 30, 2024.

The Company distributed $184,030,000 in common stock dividends during the nine months ended September 30, 2024.

Other primary uses of cash were for the construction and development of properties;

purchases of real estate;

capital improvements at various properties;

and repayments on unsecured bank credit facilities.

As of June 30, 2024, the Company was contractually obligated to pay the dividend declared in May 2024, which was paid in July 2024.

An amount for dividends payable of $63,070,000 was included in Accounts payable and accrued expenses at June 30, 2024, which includes dividends payable on unvested restricted stock of $1,378,000, which are subject to continued service and will be paid upon vesting in future periods.

The following table summarizes certain information with respect to our indebtedness outstanding as of June 30, 2024:

UNSECURED DEBT (FIXED RATE) (1)

Weighted Average Interest Rate Principal Payments Maturing

repayments on unsecured bank credit facilities and unsecured debt;

and capital improvements at various properties.

As of September 30, 2024, the Company was contractually obligated to pay the dividend declared in August 2024, which was paid in October 2024.

An amount for dividends payable of $70,275,000 was included in Accounts payable and accrued expenses at September 30, 2024, which includes dividends payable on unvested restricted stock of $1,511,000, which are subject to continued service and will be paid upon vesting in future periods.

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 September 30, 2024, are as follows:

MATURITY DATES Weighted Average Interest Rate (1)

Principal Payments Maturing

(In thousands)

August 30, 2024 4.08% $ 50,000

December 13, 2024 3.46% $ 60,000

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Year 2029 and beyond 3.66% 890,000

Total Unsecured Debt (Fixed Rate) (1)

3.37% $ 1,680,000

Total Unsecured Debt 3.35% $ 1,630,000

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

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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 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 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.

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

The Company’s unsecured bank credit facilities have certain restrictive covenants, such as maintaining minimum debt service coverage and leverage ratios and maintaining insurance coverage, and the Company was in compliance with all of its financial debt covenants at June 30, 2024.

On October 25, 2023, we established the Current 2023 ATM 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.

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Direct Common Stock Issuance Activity

During the six months ended June 30, 2024, EastGroup sold, and subsequently settled the issuance of, 218,929 shares of common stock directly through sales agents under its Current 2023 ATM Program at a weighted average price of $168.62 per share, providing aggregate net proceeds to the Company of $36,547,000.

Excluded from this activity are 77,650 shares sold on June 28, 2024, at a weighted average price of $168.63 per share, providing aggregate net proceeds of $12,963,000, which were not deemed to be issued and outstanding until settlement in July 2024.

During the nine months ended September 30, 2024, EastGroup sold, and subsequently settled the issuance of, 458,679 shares of common stock directly through sales agents under its Current 2023 ATM Program at a weighted average price of $174.43 per share, providing aggregate net proceeds to the Company of $79,210,000.

Forward Equity Offering Activity

The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time it entered into forward equity sale agreements.

As of July 23, 2024, the Company had 600,053 shares of common stock, or approximately $100,000,000 of gross proceeds, available for settlement prior to the expiration of the applicable settlement period of June 2025.

Also during the nine months ended September 30, 2024, the Company settled outstanding forward equity sale agreements that were

previously entered into under the Current 2023 ATM Program by issuing 993,214 shares of common stock in exchange for net proceeds of approximately $175,146,000.

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

As of October 23, 2024, the Company had 1,099,612 shares of common stock, or approximately $204,306,000 of gross proceeds, available for settlement prior to the applicable settlement period expirations, ranging from August 2025 to September 2025.

Under the Current 2023 ATM Program, approximately $3,847,000 of common stock remains available to be sold.

Future sales, if any, will depend on a variety of factors, including among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us.

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, 2023, did not materially change during the six months ended June 30, 2024.

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.

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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