EASTGROUP PROPERTIES INC 10-K

ITEM 9A. CONTROLS AND PROCEDURES. (i) Disclosure Controls and Procedures. The Company carried out an evaluation, under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that, as of December 31, 2024, the Company’s disclosure controls and procedures were effective in timely alerting them to material information relating to the Company (including its consolidated subsidiaries) required to be included in the Company’s periodic SEC filings. (ii) Internal Control Over Financial Reporting. (a) Management’s report on internal control over financial reporting. Management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). EastGroup’s Management Report on Internal Control Over Financial Reporting is set forth in Part IV, Item 15 of this Form 10-K on page 43 and is incorporated herein by reference. (b) Report of the independent registered public accounting firm. The report of KPMG LLP, the Company’s independent registered public accounting firm, on the Company’s internal control over financial reporting is set forth in Part IV, Item 15 of this Form 10-K on page 44 and is incorporated herein by reference. (c) Changes in internal control over financial reporting. There was no change in the Company’s internal control over financial reporting during the Company’s fourth fiscal quarter ended December 31, 2024 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. ITEM 9B. OTHER INFORMATION. During the three months ended December 31, 2024 , none of the Company’s directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted, terminated or modified a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement (as such terms are defined in Item 408 of Regulation S-K). ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. Not applicable. 36 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE. The information required by Item 10 will be included in the Company’s definitive proxy statement to be filed with the SEC relating to the Company’s 2025 Annual Meeting of Stockholders and is incorporated herein by reference. We have adopted an insider trading policy governing the purchase, sale and other dispositions of our securities by our directors, officers and employees that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations, and any applicable listing standards. A copy of our insider trading policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K. In addition, with regard to the Company's trading in its own securities, it is the Company's policy to comply with the federal securities laws and the applicable exchange listing requirements. ITEM 11. EXECUTIVE COMPENSATION. The information required by Item 11 will be included in the Company’s definitive proxy statement to be filed with the SEC relating to the Company’s 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. The information required by Item 12 will be included in the Company’s definitive proxy statement to be filed with the SEC relating to the Company’s 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE. The information required by Item 13 will be included in the Company’s definitive proxy statement to be filed with the SEC relating to the Company’s 2025 Annual Meeting of Stockholders and is incorporated herein by reference. ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES. Our independent registered public accounting firm is KPMG LLP , Chicago, IL , Auditor Firm ID: 185 . The information required by Item 14 will be included in the Company’s definitive proxy statement to be filed with the SEC relating to the Company’s 2025 Annual Meeting of Stockholders and is incorporated herein by reference. 37 PART IV ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES. Financial Statements Page The following documents are filed as part of this Annual Report on Form 10-K: Report of Independent Registered Public Accounting Firm 41 Management Report on Internal Control Over Financial Reporting 43 Report of Independent Registered Public Accounting Firm 44 Consolidated Balance Sheets – December 31, 2024 and 2023 45 Consolidated Statements of Income and Comprehensive Income – Years ended December 31, 2024, 2023 and 2022 46 Consolidated Statements of Changes in Equity – Years ended December 31, 2024, 2023 and 2022 47 Consolidated Statements of Cash Flows – Years ended December 31, 2024, 2023 and 2022 48 Notes to Consolidated Financial Statements 49 Financial Statement Schedules Page The following documents are filed as part of this Annual Report on Form 10-K: Schedule III – Real Estate Properties and Accumulated Depreciation 73 All other schedules for which provision is made in the applicable accounting regulations of the SEC are not required under the related instructions or are inapplicable, and therefore have been omitted, or the required information is included in the Notes to Consolidated Financial Statements. 38 Exhibits The following exhibits are included in this Annual Report on Form 10-K for the fiscal year ended December 31, 2024: Exhibit Number Description 3.1 Articles of Amendment and Restatement of EastGroup Properties, Inc. (incorporated by reference to Exhibit 3.1 of the Company’s Current Report on Form 8-K filed May 28, 2021) . 3.2 Second Amended and Restated Bylaws of EastGroup Properties, Inc. (incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K filed on August 28, 2024) . 4.1 Description of Securities ( incorporated by reference to exhibit 4.1 to the Company’s Annual Report on Form 10-K filed February 16, 2022). 10.1* EastGroup Properties, Inc. 2023 Equity Incentive Plan ( incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed May 26, 2023 ). 10.2* EastGroup Properties, Inc. Director Compensation Program Including the Independent Director Compensation Policy, as amended and restated as of May 23, 2024, pursuant to the EastGroup Properties, Inc. 2023 Equity Incentive Plan ( incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed July 24, 2024 ). 10.3* Form of Severance and Change in Control Agreement entered into by and between the Company and each of Marshall A. Loeb, Brent W. Wood and John F. Coleman ( incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed May 18, 2016 ). 10.4* Form of Severance and Change in Control Agreement by and between the Company and each of Ryan M. Collins and R. Reid Dunbar ( incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed May 18, 2016 ). 10.5* Form of First Amendment to the Severance and Change in Control Agreement, entered into by and between the Company and each of R. Reid Dunbar and Ryan M. Collins (incorporated by reference to Exhibit 10.2 to the Company’s Quarterly Report on Form 10-Q filed October 28, 2020) . 10.6* Form of Second Amendment to the Severance and Change in Control Agreement, entered into by and between the Company and each of R. Reid Dunbar and Ryan M. Collins ( filed herewith ). 10.7* Form of Severance and Change in Control Agreement, entered into by and between the Company and Staci H. Tyler (incorporated by reference to Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q filed October 28, 2020) . 10.8* Form of First Amendment to the Severance and Change in Control Agreement, entered into by and between the Company and Staci H. Tyler ( filed herewith ). 10.9* Form of Indemnification Agreement entered into by and between the Company and each of its directors and executive officers ( incorporated by reference to Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q filed October 28, 2020 ). 10.10 Note Purchase Agreement, dated as of August 28, 2013, by and among EastGroup Properties, L.P., the Company and each of the Purchasers of the Notes party thereto ( incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August 30, 2013 ). 10.11 Note Purchase Agreement, dated as of August 17, 2020, among EastGroup Properties, L.P., the Company and the purchasers of the notes party thereto (including the form of the 2.61% Series A Senior Notes due October 14, 2030 and the 2.71% Series B Senior Notes due October 14, 2032) (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed August 21, 2020) . 10.12 Note Purchase Agreement, dated as of February 3, 2022, among EastGroup Properties, L.P., the Company and the purchasers of the notes party thereto (including the form of the 3.03% Senior Notes due April 20, 2032) (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K filed February 8, 2022) . 10.13 Note Purchase Agreement, dated as of August 16, 2022, among EastGroup Properties, L.P., the Company and the purchasers of the notes party thereto (including the forms of the 4.90% Series A Senior Notes due 2033 and the 4.95% Series B Senior Notes due 2034) ( incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed August 19, 2022 ). 10.14 Sixth Amended and Restated Credit Agreement, dated June 13, 2024, among EastGroup Properties, L.P.; EastGroup Properties, Inc.; PNC Bank, National Association, as Agent; Regions Bank, as Syndication Agent; Bank of America, N.A., U.S. Bank National Association, TD Bank, N.A., and JPMorgan Chase Bank, N.A., as Co-Documentation Agents; PNC Capital Markets LLC, as Sustainability Agent; PNC Capital Markets LLC, Regions Capital Markets, and BOFA Securities, Inc., as Joint Lead Arrangers; PNC Capital Markets LLC and Regions Capital Markets, as Joint Bookrunners; and the Lenders party thereto ( incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed June 13, 2024 ). 19.1 EastGroup Properties, Inc. Insider Trading Policy ( filed herewith ). 21.1 Subsidiaries of the Company ( filed herewith ). 39 Exhibit Number Description 23.1 Consent of KPMG LLP ( filed herewith ). 24.1 Powers of attorney ( included on signature page hereto ). 31.1 Rule 13a-14(a)/15d-14(a) Certifications (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) of Marshall A. Loeb, Chief Executive Officer ( filed herewith ). 31.2 Rule 13a-14(a)/15d-14(a) Certifications (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002) of Brent W. Wood, Chief Financial Officer ( filed herewith ). 32.1 Section 1350 Certifications (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002) of Marshall A. Loeb, Chief Executive Officer ( furnished herewith ). 32.2 Section 1350 Certifications (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002) of Brent W. Wood, Chief Financial Officer ( furnished herewith ). 97.1* EastGroup Properties, Inc. Compensation Recovery Policy ( incorporated by reference to Exhibit 97.1 to the Company’s Form 10-K filed February 14, 2024 ). 101.SCH Inline XBRL Taxonomy Extension Schema Document (filed herewith). 101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith). 101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document (filed herewith). 101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document (filed herewith). 101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith). 104 Cover Page Interactive Data File (formatted as inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*) (filed herewith). * Indicates a management contract or any compensatory plan, contract or arrangement. 40 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE STOCKHOLDERS AND THE BOARD OF DIRECTORS EASTGROUP PROPERTIES, INC.: Opinion on the Consolidated Financial Statements We have audited the accompanying consolidated balance sheets of EastGroup Properties, Inc. and subsidiaries (the Company) as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and financial statement schedule III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in conformity with U.S. generally accepted accounting principles. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 12, 2025 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting. Basis for Opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. Critical Audit Matter The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Estimated relative fair value assigned to land in an asset acquisition As discussed in Note 1(j) to the consolidated financial statements, the Company acquired $390,011,000 of assets, net of liabilities assumed, related to real estate property acquisitions during 2024 that were accounted for as asset acquisitions, of which $41,815,000 of the acquisition cost was allocated to land. The acquisition cost in an asset acquisition is allocated among the individual components of both tangible and intangible assets and liabilities acquired based on their relative fair values. We identified the estimated fair value of land as a critical audit matter. Specifically, evaluating the relevance of comparable land sales used in the Company’s determination of the estimated fair value involved subjective auditor judgment. Professionals with specialized skills and knowledge were utilized to evaluate the relevance of a selection of the comparable land sales. The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness over the Company’s control to review identified publicly available comparable land sales used to estimate fair value of land in an asset acquisition. We evaluated the Company’s estimate of fair value of land by comparing to 41 our independently established ranges of comparable land sales developed using publicly available market data and involved valuation professionals with specialized skills and knowledge who assisted in this evaluation for a selection of acquisitions. /s/ KPMG LLP We have served as the Company’s auditor since 1970. Chicago, Illinois February 12, 2025 42 MANAGEMENT REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING EastGroup’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, EastGroup conducted an evaluation of the effectiveness of internal control over financial reporting based on the framework in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. The design of any system of internal control over financial reporting is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Based on EastGroup’s evaluation under the framework in Internal Control – Integrated Framework (2013) , management concluded that our internal control over financial reporting was effective as of December 31, 2024. /s/ EASTGROUP PROPERTIES, INC. Ridgeland, Mississippi February 12, 2025 43 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM TO THE STOCKHOLDERS AND BOARD OF DIRECTORS EASTGROUP PROPERTIES, INC.: Opinion on Internal Control Over Financial Reporting We have audited EastGroup Properties, Inc. and subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2024 and 2023, the related consolidated statements of income and comprehensive income, changes in equity, and cash flows for each of the years in the three-year period ended December 31, 2024, and the related notes and financial statement schedule III (collectively, the consolidated financial statements), and our report dated February 12, 2025 expressed an unqualified opinion on those consolidated financial statements. Basis for Opinion The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Definition and Limitations of Internal Control Over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. /s/ KPMG LLP Chicago, Illinois February 12, 2025 44 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS December 31, 2024 2023 (In thousands, except share and per share data) ASSETS Real estate properties $ 5,503,444 4,853,548 Development and value-add properties 674,472 639,647 6,177,916 5,493,195 Less accumulated depreciation ( 1,415,576 ) ( 1,273,723 ) 4,762,340 4,219,472 Unconsolidated investment 7,448 7,539 Cash and cash equivalents 17,529 40,263 Other assets 290,159 251,939 TOTAL ASSETS $ 5,077,476 4,519,213 LIABILITIES AND EQUITY LIABILITIES Unsecured bank credit facilities, net of debt issuance costs $ ( 3,595 ) ( 1,520 ) Unsecured debt, net of debt issuance costs 1,507,157 1,676,347 Accounts payable and accrued expenses 147,342 146,337 Other liabilities 134,028 89,415 Total Liabilities 1,784,932 1,910,579 EQUITY Stockholders’ Equity: Common stock; $ 0.0001 par value; 70,000,000 shares authorized; 51,825,798 shares issued and outstanding at December 31, 2024 and 47,700,432 at December 31, 2023 5 5 Excess shares; $ 0.0001 par value; 30,000,000 shares authorized; no shares issued — — Additional paid-in capital 3,673,393 2,949,907 Distributions in excess of earnings ( 403,172 ) ( 366,473 ) Accumulated other comprehensive income 21,953 24,888 Total Stockholders’ Equity 3,292,179 2,608,327 Noncontrolling interest in joint ventures 365 307 Total Equity 3,292,544 2,608,634 TOTAL LIABILITIES AND EQUITY $ 5,077,476 4,519,213 See accompanying Notes to Consolidated Financial Statements. 45 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended December 31, 2024 2023 2022 (In thousands, except per share data) REVENUES Income from real estate operations $ 638,035 566,179 486,817 Other revenue 2,199 4,412 208 640,234 570,591 487,025 EXPENSES Expenses from real estate operations 174,212 154,030 133,915 Depreciation and amortization 189,411 171,078 153,638 General and administrative 20,619 16,757 16,362 Indirect leasing costs 785 582 546 385,027 342,447 304,461 OTHER INCOME (EXPENSE) Interest expense ( 38,956 ) ( 47,996 ) ( 38,499 ) Gain on sales of real estate investments 8,751 17,965 40,999 Other 2,805 2,435 1,210 NET INCOME 227,807 200,548 186,274 Net income attributable to noncontrolling interest in joint ventures ( 56 ) ( 57 ) ( 92 ) NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS 227,751 200,491 186,182 Other comprehensive income (loss) – interest rate swaps ( 2,935 ) ( 11,483 ) 35,069 TOTAL COMPREHENSIVE INCOME $ 224,816 189,008 221,251 BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders $ 4.67 4.43 4.37 Weighted average shares outstanding — Basic 48,803 45,224 42,599 DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Net income attributable to common stockholders $ 4.66 4.42 4.36 Weighted average shares outstanding — Diluted 48,911 45,331 42,712 See accompanying Notes to Consolidated Financial Statements. 46 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY Common Shares Additional Paid-In Capital Distributions In Excess Of Earnings Accumulated Other Comprehensive Income Noncontrolling Interest in Joint Ventures Total (In thousands, except share and per share data) BALANCE, DECEMBER 31, 2021 $ 4 1,886,820 ( 318,056 ) 1,302 1,390 1,571,460 Net income — — 186,182 — 92 186,274 Net unrealized change in fair value of interest rate swaps — — — 35,069 — 35,069 Common dividends declared – $ 4.70 per share — — ( 203,024 ) — — ( 203,024 ) Stock-based compensation, net of forfeitures — 10,802 — — — 10,802 Issuance of 393,406 shares of common stock, common stock offering, net of expenses — 75,375 — — — 75,375 Issuance of 1,868,809 shares of common stock, net of expenses in the purchase of real estate — 303,682 — — — 303,682 Withheld 34,251 shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock — ( 7,265 ) — — — ( 7,265 ) Withheld 770 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock — ( 111 ) — — — ( 111 ) Net distributions to noncontrolling interest — — — — ( 220 ) ( 220 ) Purchase of noncontrolling interest in joint venture — ( 17,782 ) — — ( 821 ) ( 18,603 ) BALANCE, DECEMBER 31, 2022 4 2,251,521 ( 334,898 ) 36,371 441 1,953,439 Net income — — 200,491 — 57 200,548 Net unrealized change in fair value of interest rate swaps — — — ( 11,483 ) — ( 11,483 ) Common dividends declared – $ 5.04 per share — — ( 232,066 ) — — ( 232,066 ) Stock-based compensation, net of forfeitures — 11,777 — — — 11,777 Issuance of 4,094,896 shares of common stock, common stock offering, net of expenses 1 691,477 — — — 691,478 Withheld 31,254 shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock — ( 4,836 ) — — — ( 4,836 ) Withheld 184 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock — ( 32 ) — — — ( 32 ) Net distributions to noncontrolling interest — — — — ( 191 ) ( 191 ) BALANCE, DECEMBER 31, 2023 5 2,949,907 ( 366,473 ) 24,888 307 2,608,634 Net income — — 227,751 — 56 227,807 Net unrealized change in fair value of interest rate swaps — — — ( 2,935 ) — ( 2,935 ) Common dividends declared – $ 5.34 per share — — ( 264,450 ) — — ( 264,450 ) Stock-based compensation, net of forfeitures — 12,493 — — — 12,493 Issuance of 4,071,536 shares of common stock, common stock offering, net of expenses — 717,152 — — — 717,152 Withheld 33,381 shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock — ( 6,125 ) — — — ( 6,125 ) Withheld 192 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock — ( 34 ) — — — ( 34 ) Contributions from noncontrolling interest — — — — 175 175 Net distributions to noncontrolling interest — — — — ( 173 ) ( 173 ) BALANCE, DECEMBER 31, 2024 $ 5 3,673,393 ( 403,172 ) 21,953 365 3,292,544 See accompanying Notes to Consolidated Financial Statements. 47 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS Years Ended December 31, 2024 2023 2022 (In thousands) OPERATING ACTIVITIES Net income $ 227,807 200,548 186,274 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 189,411 171,078 153,638 Stock-based compensation expense 10,476 8,965 8,292 Gain on sales of real estate investments ( 8,751 ) ( 17,965 ) ( 40,999 ) Gain on sales of non-operating real estate ( 362 ) ( 446 ) — Gain on involuntary conversion and business interruption claims ( 1,708 ) ( 4,187 ) — Changes in operating assets and liabilities: Accrued income and other assets ( 13,410 ) ( 15,415 ) ( 9,291 ) Accounts payable, accrued expenses and prepaid rent 11,130 ( 5,922 ) 17,176 Other 1,994 1,546 1,411 NET CASH PROVIDED BY OPERATING ACTIVITIES 416,587 338,202 316,501 INVESTING ACTIVITIES Development and value-add properties ( 245,033 ) ( 388,213 ) ( 494,073 ) Purchases of real estate ( 390,011 ) ( 165,116 ) ( 2,049 ) Real estate improvements ( 59,288 ) ( 51,116 ) ( 40,851 ) Net proceeds from sales of real estate investments and non-operating real estate 17,659 41,539 51,006 Leasing commissions ( 32,154 ) ( 32,004 ) ( 37,272 ) Proceeds from involuntary conversion on real estate assets 2,450 5,029 — Changes in accrued development costs ( 17,170 ) 12,163 4,211 Changes in other assets and other liabilities ( 795 ) 7,660 ( 2,120 ) NET CASH USED IN INVESTING ACTIVITIES ( 724,342 ) ( 570,058 ) ( 521,148 ) FINANCING ACTIVITIES Proceeds from unsecured bank credit facilities 64,968 471,624 942,173 Repayments on unsecured bank credit facilities ( 64,968 ) ( 641,624 ) ( 981,383 ) Proceeds from unsecured debt — 100,000 525,000 Repayments on unsecured debt ( 170,000 ) ( 115,000 ) ( 75,000 ) Repayments on secured debt — ( 1,970 ) ( 60,096 ) Debt issuance costs ( 3,178 ) ( 1,818 ) ( 2,067 ) Distributions paid to stockholders (not including dividends accrued) ( 252,794 ) ( 225,625 ) ( 193,936 ) Proceeds from common stock offerings 717,659 692,312 75,622 Common stock offering related costs ( 507 ) ( 834 ) ( 247 ) Other ( 6,159 ) ( 5,002 ) ( 29,756 ) NET CASH PROVIDED BY FINANCING ACTIVITIES 285,021 272,063 200,310 INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ( 22,734 ) 40,207 ( 4,337 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 40,263 56 4,393 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 17,529 40,263 56 SUPPLEMENTAL CASH FLOW INFORMATION Cash paid for interest, net of amounts capitalized of $ 19,823 , $ 16,235 , and $ 12,393 for 2024, 2023 and 2022, respectively $ 37,185 47,228 34,110 Cash paid for operating lease liabilities 2,406 2,042 1,793 Common stock issued in the purchase of real estate — — 303,682 Debt assumed in the purchase of real estate — — 60,000 NON-CASH OPERATING ACTIVITY Operating lease liabilities arising from obtaining right of use assets $ 21,836 2,379 559 See accompanying Notes to Consolidated Financial Statements. 48 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2024, 2023 and 2022 (1) SIGNIFICANT ACCOUNTING POLICIES (a) Principles of Consolidation The consolidated financial statements include the accounts of EastGroup Properties, Inc. (“EastGroup” or “the Company”), its wholly owned subsidiaries and the investee of any joint ventures in which the Company has a controlling interest. The Company records 100% of the assets, liabilities, revenues and expenses of the properties held in joint ventures with the noncontrolling interests provided for in accordance with the joint venture agreements. As of December 31, 2024 , 2023 and 2022, 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 December 31, 2024 and 2023, EastGroup continued to hold a controlling interest in these two joint venture arrangements. During the year ended December 31, 2022, EastGroup acquired the 1 % noncontrolling interest in Speed Distribution Center, a 519,000 square foot building in San Diego, in which the Company held a 99 % controlling interest. As of December 31, 2024 , 2023 and 2022, the Company continued to control and own 100 % of the property. The equity method of accounting is used for the Company’s 50 % undivided tenant-in-common interest in Industry Distribution Center 2. All significant intercompany transactions and accounts have been eliminated in consolidation. (b) Income Taxes EastGroup, a Maryland corporation, has qualified as a real estate investment trust (“REIT”) under Sections 856-860 of the Internal Revenue Code and intends to continue to qualify as such. To maintain its status as a REIT, the Company is required to, among other things, distribute at least 90% of its ordinary taxable income to its stockholders. If the Company has a capital gain, it has the option of (i) deferring recognition of the capital gain through a tax-deferred exchange, (ii) declaring and paying a capital gain dividend on any recognized net capital gain resulting in no corporate level tax, or (iii) retaining and paying corporate income tax on its net long-term capital gain, with the shareholders reporting their proportional share of the undistributed long-term capital gain and receiving a credit or refund of their share of the tax paid by the Company. The Company distributed all of its 2024, 2023 and 2022 taxable income to its stockholders. Accordingly, no significant provisions for income taxes were necessary. The Company’s income tax treatment of share distributions is based on its taxable income, calculated in accordance with the Internal Revenue Code, which differs from U.S. generally accepted accounting principles (“GAAP”). The following table summarizes the federal income tax treatment for all distributions by the Company for the years ended December 31, 2024 , 2023 and 2022. Federal Income Tax Treatment of Share Distributions Years Ended December 31, 2024 2023 2022 Common Share Distributions: (Per share) Ordinary dividends $ 5.21028 5.02083 4.53746 Nondividend distributions — — — Unrecaptured Section 1250 capital gain — — — Other capital gain — — — Total Common Share Distributions (1) $ 5.21028 5.02083 4.53746 (1) Pursuant to Internal Revenue Code of 1986, as amended, Section 857(b)(9), cash distributions made on January 15, 2025 with a record date of December 31, 2024 were treated as received by shareholders on December 31, 2024 to the extent of 2024 undistributed earnings and profits. Cash distributions made on January 12, 2024 with a record date of December 29, 2023 were treated as received by shareholders on December 31, 2023 to the extent of 2023 undistributed earnings and profits. Cash distributions made on January 13, 2023 with a record date of December 30, 2022 were treated as received by shareholders on December 31, 2022 to the extent of 2022 undistributed earnings and profits. EastGroup applies the principles of Financial Accounting Standards Board “FASB” Accounting Standards Codification “ASC” 740, Income Taxes, when evaluating and accounting for uncertainty in income taxes. With few exceptions, the Company’s 49 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 2020 and earlier tax years are closed for examination by U.S. federal, state and local tax authorities. In accordance with the provisions of ASC 740, the Company had no significant uncertain tax positions as of December 31, 2024 and 2023. (c) Income Recognition The Company’s primary source of revenue is rental income from business distribution space. Minimum rental income from real estate operations is recognized on a straight-line basis, when collectability is probable. The straight-line rent calculation on leases includes the effects of rent concessions and scheduled rent increases, and the calculated straight-line rent income is recognized over the terms of the individual leases. The Company assesses the collectability of rent receivables, with a focus on identifying tenant defaults and bankruptcies that could affect collection of outstanding and future receivables. Management specifically analyzes the age of receivables, the payment history and financial condition of the tenant, on a tenant-by-tenant basis. If deemed uncollectible, revenue is recognized only when lease payments are received, or until such time that collection of future rent is deemed to be probable in accordance with ASC 842, Leases . The Company’s primary source of revenue is rental income from business distribution space; as such, the Company is a lessor on a significant number of leases. The Company applies the principles of ASC 842, Leases. Initial indirect costs (primarily legal costs related to lease negotiations) are expensed rather than capitalized. EastGroup recorded Indirect leasing costs of $ 785,000 , $ 582,000 and $ 546,000 on the Consolidated Statements of Income and Comprehensive Income during the years ended December 31, 2024, 2023 and 2022, respectively. As permitted by ASC 842, Leases , EastGroup made an accounting policy election by class of underlying asset to not separate non-lease components (such as common area maintenance) of a contract from the lease component to which they relate when specific criteria are met. The Company believes its leases meet the criteria. The table below presents the components of Income from real estate operations for the years ended December 31, 2024, 2023 and 2022: Years Ended December 31, 2024 2023 2022 (In thousands) Lease income — operating leases $ 477,647 424,063 364,957 Variable lease income (1) 160,388 142,116 121,860 Income from real estate operations $ 638,035 566,179 486,817 (1) Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. Future Minimum Rental Receipts Under Non-Cancelable Leases The Company’s leases with its customers may include various provisions such as scheduled rent increases, renewal options and termination options. The majority of the Company’s leases include defined rent increases rather than variable payments based on an index or unknown rate. In calculating the disclosures presented below, the Company included the fixed, non-cancelable terms of the leases. The following schedule indicates approximate future minimum rental receipts under non-cancelable leases for real estate properties by year as of December 31, 2024: Years Ending December 31, (In thousands) 2025 $ 497,772 2026 459,499 2027 372,124 2028 295,519 2029 221,056 Thereafter 446,149 Total minimum receipts $ 2,292,119 The Company recognizes gains on sales of real estate in accordance with the principles set forth in the Codification. For each transaction, the Company evaluates whether the guidance in ASC 606, Revenue from Contracts with Customers, or ASC 610, Other Income — Gains and Losses from the Derecognition of Nonfinancial Assets, is applicable. Upon closing of real estate transactions, the provisions of the Codification require consideration of whether the seller has a controlling financial interest in the entity that holds the nonfinancial asset after the transaction. In addition, the seller evaluates whether a contract exists under ASC 606 and whether the counterparty obtained control of each nonfinancial asset that is sold. If a contract exists and the 50 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS counterparty obtained control of each nonfinancial asset, the seller derecognizes the assets at the close of the transaction with resulting gains or losses reflected on the Consolidated Statements of Income and Comprehensive Income. (d) Real Estate Properties EastGroup has one reportable segment – industrial properties, consistent with the Company’s manner of internal reporting, measurement of operating results and allocation of the Company’s resources. The Company's properties are primarily in the 20,000 to 100,000 square foot range. The majority of the Company’s leases are triple net leases, in which the tenant is responsible for their pro rata share of operating expenses during the lease term, including real estate taxes, insurance and common area maintenance. The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who uses Net income as the primary measure of operating results in making decisions. Net income is computed in accordance with U.S. generally accepted accounting principles (“GAAP”). Net income is used to evaluate the performance of the Company’s investments in real estate assets and its operating results and to allocate resources in acquiring or developing industrial properties. The following income and significant expense categories are regularly provided to the Company’s CODM as components of Net income , which are presented on the Consolidated Statements of Income and Comprehensive Income: Income from real estate operations , Expenses from real estate operations , General and administrative and Interest expense . The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows (including estimated future expenditures necessary to substantially complete the asset) expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated 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 years ended December 31, 2024, 2023 and 2022, the Company did not identify any impairment charges which should be recorded. Depreciation of buildings and other improvements is computed using the straight-line method over estimated useful lives of generally 40 years for buildings and 3 to 15 years for improvements. Building improvements are capitalized, while maintenance and repair expenses are charged to expense as incurred. Significant renovations and improvements that improve or extend the useful life of the assets are capitalized. Depreciation expense was $ 155,240,000 , $ 141,003,000 and $ 125,199,000 for 2024, 2023 and 2022, respectively. (e) Development and Value-Add Properties Development and value-add properties consists of properties in lease-up and under construction and prospective development (primarily land). Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use. 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 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. Included in these costs are management’s estimates for the portions of internal costs (primarily personnel costs) deemed related to such development activities. The internal costs are allocated to specific development projects based on development activity. As the property becomes occupied, depreciation commences on the occupied portion of the building, and costs are capitalized only for the portion of the building that remains vacant. The Company transfers properties from Development and value-add properties to Real estate properties as follows: (i) for development properties, at the earlier of 90% occupancy or one year after completion of the shell construction, and (ii) for value-add properties, at the earlier of 90% occupancy or one year after acquisition. Upon the earlier of 90% occupancy or one year after completion/value-add acquisition date of the shell construction, capitalization of development costs, including interest expense, property taxes and internal personnel costs, ceases and depreciation commences on the entire property (excluding the land). (f) Real Estate Sold and Held for Sale The Company considers a real estate property to be held for sale when it meets the criteria established under ASC 360, Property, Plant and Equipment, including when it is probable that the property will be sold within a year. 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 December 31, 2024 or 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 51 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS sale or other than by sale. In addition, the Company would provide additional disclosures about both discontinued operations and the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements. EastGroup performs an analysis of properties sold to determine whether the sales qualify for discontinued operations presentation. Results of operations and gains and losses on sales for properties sold are reported in continuing operations on the Consolidated Statements of Income and Comprehensive Income. The gains and losses on sales of operating properties are included in Gain on sales of real estate investments . The Company did not consider its sales in 2024, 2023, or 2022 to be disposals of a component of an entity or a group of components of an entity representing a strategic shift that has (or will have) a major effect on the entity’s operations and financial results. (g) Derivative Instruments and Hedging Activities EastGroup applies ASC 815, Derivatives and Hedging , which requires all entities with derivative instruments to disclose information regarding how and why the entity uses derivative instruments and how derivative instruments and related hedged items affect the entity’s financial position, financial performance and cash flows. See Note 12 for a discussion of the Company’s derivative instruments and hedging activities. (h) Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amounts approximate fair value due to the short maturity of those instruments. (i) Amortization Debt origination costs are deferred and amortized over the term of each loan using the effective interest method, and the amortization is included in Interest Expense . Amortization of debt issuance costs was $ 1,914,000 , $ 1,943,000 and $ 1,357,000 for 2024, 2023 and 2022, respectively. Amortization of facility fees was $ 1,012,000 , $ 1,005,000 and $ 713,000 for 2024, 2023 and 2022, respectively. Leasing costs are deferred and amortized using the straight-line method over the term of the lease. The related amortization expense is included in Depreciation and amortization . Leasing costs amortization expense was $ 25,522,000 , $ 22,133,000 and $ 18,950,000 for 2024, 2023 and 2022, respectively. Amortization expense for in-place lease intangibles is disclosed below in Real Estate Property Acquisitions and Acquired Intangibles . (j) Real Estate Property Acquisitions and Acquired Intangibles Upon acquisition of real estate properties, EastGroup applies the principles of ASC 805, Business Combinations. The FASB Codification provides a framework for determining whether transactions should be accounted for as acquisitions of assets or businesses. Under the guidance, companies are required to utilize an initial screening test to determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set is not a business. 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 2024, 2023 and 2022 are considered to be acquisitions of groups of similar identifiable assets; therefore, the acquisitions are not considered to be acquisitions of a business. As a result, the Company has capitalized acquisition costs related to its 2024, 2023 and 2022 acquisitions. The FASB Codification also provides guidance on how to properly determine the allocation of the purchase price among the individual components of both the tangible and intangible assets based on their relative fair values. The allocation to tangible assets (land, building and improvements) is based upon management’s determination of the value of the property as if it were vacant using discounted cash flow models. Land is valued using comparable land sales specific to the applicable market, provided by a third-party. The Company determines whether any financing assumed is above or below market based upon comparison to similar financing terms for similar properties. The cost of the properties acquired may be adjusted based on indebtedness assumed from the seller that is determined to be above or below market rates. The purchase price is also allocated among the following categories of intangible assets: the above or below market component of in-place leases and the value of in-place leases at the time of the acquisition. The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate reflecting the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be paid pursuant to the lease 52 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS over its remaining term, and (ii) management’s estimate of the amounts that would be paid using current market rents over the remaining term of the lease. The amounts allocated to above and below market lease intangibles are included in Other assets and Other liabilities , respectively, on the Consolidated Balance Sheets and are amortized to rental income over the remaining terms of the respective leases. In-place lease intangibles are valued based upon management’s assessment of factors such as an estimate of foregone rents and avoided leasing costs during the expected lease-up periods considering current market conditions and costs to execute similar leases. These intangible assets are included in Other assets on the Consolidated Balance Sheets and are amortized over the remaining term of the existing lease. Amortization of above and below market lease intangibles, which increased rental income by $ 2,916,000 , $ 2,483,000 and $ 2,565,000 in 2024, 2023 and 2022, respectively, is included in Income from real estate operations . Amortization expense for in-place lease intangibles, which was $ 8,649,000 , $ 7,942,000 and $ 9,489,000 for 2024, 2023 and 2022, respectively, is included in Depreciation and amortization . Projected amortization of in-place lease intangibles for the next five years as of December 31, 2024 is as follows: Years Ending December 31, (In thousands) 2025 $ 12,066 2026 9,356 2027 6,364 2028 3,907 2029 2,949 Thereafter 4,016 Total projected amortization of in-place lease intangibles $ 38,658 EastGroup acquired real estate properties during 2024, 2023 and 2022 as discussed in Note 2. The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the real estate property acquisitions during the years ended December 31, 2024, 2023 and 2022. Costs Incurred During the Years Ended December 31, ACQUIRED ASSETS AND ASSUMED LIABILITIES 2024 2023 2022 (In thousands) Land $ 41,815 44,676 127,402 Buildings and building improvements 312,911 111,082 335,335 Tenant and other improvements 27,049 4,346 11,502 Right of use assets — Ground leases (operating) 21,836 — — Total real estate properties acquired 403,611 160,104 474,239 In-place lease intangibles (1) 27,102 7,242 11,871 Above market lease intangibles (1) 121 — — Below market lease intangibles (2) ( 18,987 ) ( 2,230 ) ( 4,059 ) Operating lease liabilities — Ground leases (3) ( 21,836 ) — — Total assets acquired, net of liabilities assumed $ 390,011 165,116 482,051 (1) In-place lease intangibles and above market lease intangibles are each included in Other assets on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. (2) Below market lease intangibles are included in Other liabilities on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. (3) Operating lease liabilities - Ground leases are included in Other liabilities on the Consolidated Balance Sheets. 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 2024, 2023 and 2022 had a weighted average remaining lease term at acquisition of approximately 4.1 years, 8.0 years and 3.9 years, respectively. 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 and other intangibles existed during the years ended December 31, 2024, 2023 and 2022. 53 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (k) Stock-Based Compensation EastGroup applies the provisions of ASC 718, Compensation – Stock Compensation , to account for its stock-based compensation plans. ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The cost for market based awards and awards that only require service are expensed on a straight-line basis over the requisite service periods. The cost for performance based awards is determined using the graded vesting attribution method which recognizes each separate vesting portion of the award as a separate award on a straight-line basis over the requisite service period. This method accelerates the expensing of the award compared to the straight-line method. 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. The Company accrues dividends on shares granted and unvested and holds the certificates for the shares, and the employee can vote the shares once performance based or market based conditions are met. Share certificates and dividends are delivered to the employee as they vest. Forfeitures of awards are recognized as they occur. (l) Equity Offerings Underwriting commissions and offering costs incurred in connection with common stock offerings and at-the-market equity offering programs have been reflected as a reduction of Additional paid-in capital . Under relevant accounting guidance, sales of common stock under forward equity sale agreements (as discussed in Note 9 Common Stock Activity ) are not deemed to be liabilities, and furthermore, meet the derivatives and hedging guidance scope exception to be accounted for as equity instruments based on the following assessment: (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. (m) Earnings per Share The Company applies ASC 260, Earnings Per Share , which requires companies to present basic and diluted earnings per share (“EPS”). Basic EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period. 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 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. The Company calculates diluted EPS by dividing Net Income Attributable to EastGroup Properties, Inc. Common Stockholders by the weighted average number of common shares outstanding plus the effect of any dilutive securities including shares issuable under forward equity sale agreements and unvested restricted stock using the treasury stock method. Any anti-dilutive securities are excluded from the diluted EPS calculation. See Note 13 for details. (n) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period and to disclose material contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. (o) Risks and Uncertainties The state of the overall economy can significantly impact the Company’s operational performance and thus impact its financial position. Should EastGroup experience a significant decline in operational performance, it may affect the Company’s ability to make distributions to its shareholders, service debt or meet other financial obligations. 54 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (p) Recent Accounting Pronouncements EastGroup has evaluated all FASB Accounting Standards Updates ( “ASU” ) recently released by the FASB through the date the financial statements were issued and determined that the following ASUs apply to the Company. In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses , and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date . ASU 2024-03 requires additional disclosure of the nature of expenses included in the income statement as well as disclosures about specific types of expenses included in the expense captions presented in the income statement. ASU 2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Amendments should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date, or (2) retrospectively to all prior periods presented in the financial statements. EastGroup does not expect the adoption to have a material impact on its financial condition, results of operations or disclosures. (q) Classification of Book Overdraft on Consolidated Statements of Cash Flows The Company classifies changes in book overdraft in which the bank has not advanced cash to the Company to cover outstanding checks as an operating activity. Such amounts are included in Accounts payable, accrued expenses and prepaid rent in the Operating Activities section on the Consolidated Statements of Cash Flows. (2) REAL ESTATE PROPERTIES AND DEVELOPMENT AND VALUE-ADD PROPERTIES The Company’s Real estate properties and Development and value-add properties at December 31, 2024 and 2023 were as follows: December 31, 2024 2023 (In thousands) Real estate properties: Land $ 888,140 814,364 Buildings and building improvements 3,815,850 3,336,615 Tenant and other improvements 761,061 684,573 Right of use assets — Ground leases (operating) (1) 38,393 17,996 Development and value-add properties (2) 674,472 639,647 6,177,916 5,493,195 Less accumulated depreciation ( 1,415,576 ) ( 1,273,723 ) $ 4,762,340 4,219,472 (1) See Ground Leases discussion below for information regarding the Company’s right of use assets for ground leases. (2) Value-add properties are defined in Note 1(e). 55 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A summary of real estate properties acquired for the years ended December 31, 2024, 2023 and 2022 follows: (Unaudited) REAL ESTATE PROPERTIES ACQUIRED Location Size Date Acquired Cost (1) (Square feet) (In thousands) 2024 OPERATING PROPERTIES ACQUIRED Spanish Ridge Industrial Park Las Vegas, NV 231,000 01/23/2024 $ 54,859 147 Exchange Raleigh, NC 274,000 05/03/2024 52,945 Hays Commerce Center 3 & 4 Austin, TX 179,000 08/19/2024 35,781 Riverpoint Industrial Park Atlanta, GA 779,000 11/12/2024 87,576 DFW Global Logistics Centre 5-8 (2) Dallas, TX 492,000 11/21/2024 75,852 Akimel Gateway (2) Phoenix, AZ 519,000 12/26/2024 82,998 Total operating property acquisitions (3) 2,474,000 390,011 Total value-add property acquisitions (4) — — Total acquired assets in 2024 (5) 2,474,000 $ 390,011 2023 OPERATING PROPERTIES ACQUIRED Craig Corporate Center Las Vegas, NV 156,000 04/18/2023 $ 34,365 Blue Diamond Business Park Las Vegas, NV 254,000 09/05/2023 52,973 McKinney Logistics Center Dallas, TX 193,000 10/02/2023 25,739 Park at Myatt Nashville, TN 171,000 11/03/2023 30,793 Pelzer Point Commerce Center 1 Greenville, SC 213,000 12/21/2023 21,246 Total operating property acquisitions (3) 987,000 165,116 Total value-add property acquisitions (4) — — Total acquired assets in 2023 (5) 987,000 $ 165,116 2022 OPERATING PROPERTIES ACQUIRED Cebrian Distribution Center and Reed Distribution Center (6) Sacramento, CA 329,000 06/01/2022 $ 49,726 6 th Street Business Center, Benicia Distribution Center 1-5, Ettie Business Center, Laura Alice Business Center, Preston Distribution Center, Sinclair Distribution Center, Transit Distribution Center and Whipple Business Center (6) San Francisco, CA 1,377,000 06/01/2022 309,404 Total operating property acquisitions (3) 1,706,000 359,130 VALUE-ADD PROPERTIES ACQUIRED Cypress Preserve 1 & 2 Houston, TX 516,000 03/28/2022 54,462 Zephyr Distribution Center San Francisco, CA 82,000 04/08/2022 29,017 Mesa Gateway Commerce Center Phoenix, AZ 147,000 04/15/2022 18,315 Access Point 3 Greenville, SC 299,000 07/12/2022 21,127 Total value-add property acquisitions (4) 1,044,000 122,921 Total acquired assets in 2022 (5) 2,750,000 $ 482,051 (1) Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs. (2) This operating property is located on land subject to a ground lease. See Ground Leases discussion below for information regarding the Company’s right of use assets for ground leases. (3) Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets . (4) Value-add properties are defined in Note 1(e). (5) Excludes acquired development land as detailed below. (6) The Company acquired these operating properties along with two land parcels, also in Sacramento, CA and San Francisco, CA, in connection with its acquisition of Tulloch Corporation in June 2022. Size and cost are presented on an aggregate basis for the properties located in Sacramento, CA and San Francisco, CA, respectively. In consideration for this acquisition, the Company assumed a $60,000,000 loan and issued 1,868,809 shares of the Company’s common stock. The acquisition date fair value of the loan assumed was $60,000,000, and the acquisition date fair value of the common shares, which was based on the closing share price on the acquisition date, was $303,756,000. 56 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Also during 2024, EastGroup purchased 61.1 acres of development land in two markets for $ 13,762,000 . During 2023, EastGroup purchased 328.3 acres of development land in seven markets for $ 70,664,000 . During 2022, EastGroup purchased 456.3 acres of development land in 10 markets for $ 123,717,000 . Sales of Real Estate A summary of operating properties sold during for the years ended December 31, 2024, 2023 and 2022 follows: (Unaudited) REAL ESTATE PROPERTIES SOLD Location Size Date Sold Net Sales Price Basis Recognized Gain (Square feet) (In thousands) 2024 Interchange Business Park and Metro Airport Commerce Center Jackson, MS 159,000 03/05/2024 $ 13,614 4,863 8,751 2023 World Houston 23 Houston, TX 125,000 03/31/2023 $ 9,327 4,518 4,809 Ettie Business Center San Francisco, CA 29,000 11/20/2023 11,638 8,845 2,793 Los Angeles Corporate Center Los Angeles, CA 77,000 12/29/2023 16,006 5,643 10,363 Total for 2023 231,000 $ 36,971 19,006 17,965 2022 Metro Business Park Phoenix, AZ 189,000 01/06/2022 $ 32,851 5,880 26,971 Cypress Creek Business Park (1) Fort Lauderdale, FL 56,000 03/31/2022 5,282 1,901 3,381 World Houston 15 East Houston, TX 42,000 05/11/2022 12,873 2,226 10,647 Total for 2022 287,000 $ 51,006 10,007 40,999 (1) Cypress Creek Business Park is located on a ground lease. In conjunction with the sale of the property, the Company fully amortized the associated right-of-use asset and liability of $ 1,745,000 . The table above includes sales of operating properties. During the year ended December 31, 2024, the Company also sold 5.4 acres of land in two markets for $ 4,261,000 and recognized gains on the sales of $ 362,000 . During the year ended December 31, 2023, the Company also sold 11.9 acres of land in two markets for $ 4,750,000 and recognized gains on the sales of $ 446,000 . The Company did not sell any land during the year ended December 31, 2022. The gains on sales of non-operating real estate are included in Other on the Consolidated Statements of Income and Comprehensive Income. Development and Value-Add Properties As of December 31, 2024, the Company’s development and value-add program consisted of projects in lease-up, under construction and prospective development (primarily land), as detailed in the table below. Costs incurred include capitalization of interest costs during the period of construction. The interest costs capitalized on development projects for 2024 were $ 19,823,000 , compared to $ 16,235,000 for 2023 and $ 12,393,000 for 2022. In addition, EastGroup capitalized internal development costs of $ 8,181,000 during 2024, compared to $ 10,472,000 during 2023 and $ 9,985,000 in 2022. Total capital invested for development and value-add properties during 2024 was $ 245,033,000 , which primarily consisted of improvement costs of $ 227,487,000 on development and value-add properties, $ 13,762,000 for new land investments, and costs of $ 3,784,000 on properties subsequent to transfer to Real estate propertie s. The capitalized costs incurred on development and value-add projects 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). 57 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A summary of the Company’s Development and Value-Add Properties for the year ended December 31, 2024 follows: (Unaudited) (Unaudited) Actual or Estimated Building Size Cumulative Costs Incurred as of 12/31/2024 Projected Total Costs (Square feet) (In thousands) Lease-up 1,721,000 $ 223,889 $ 239,400 Under construction 2,422,000 200,179 369,300 Total lease-up and under construction 4,143,000 424,068 $ 608,700 Prospective development (primarily land) 9,919,000 250,404 Total Development and value-add properties as of December 31, 2024 14,062,000 $ 674,472 Total Development and value-add properties transferred to Real estate properties during the year ended December 31, 2024 1,519,000 $ 199,971 (1) (1) Represents cumulative costs at the date of transfer. Ground Leases EastGroup applies ASC 842, Leases , for its ground leases, which are classified as operating leases. As of December 31, 2023, the Company had operating properties subject to ground leases in Florida, Texas and Arizona. In November and December 2024, EastGroup assumed ground leases in connection with the acquisitions of DFW Global Logistics Centre 5-8 in Dallas and Akimel Gateway in Phoenix; we recorded right of use assets and liabilities of $ 10,795,000 and $ 11,041,000 , respectively. As of December 31, 2024 and 2023, the unamortized balances of the Company’s right of use assets for its ground leases were $ 38,393,000 and $ 17,996,000 , respectively. The right of use assets for ground leases are included in Real estate properties on the Consolidated Balance Sheets. The ground leases have terms of 40 to 65 years and renewal options of 15 to 35 years, except for one lease in Arizona which is automatically and perpetually renewed annually. With the renewal options included, expiration dates range from August 2051 to December 2085 . The Company has included renewal options in the lease terms for calculating the ground lease assets and liabilities as the Company is reasonably certain it will exercise these options. Total ground lease expenditures for the years ended December 31, 2024, 2023 and 2022 were $ 1,936,000 , $ 1,758,000 and $ 1,755,000 , respectively. Payments are subject to increases at 3 to 10 year intervals based upon the agreed or appraised fair market value of the leased premises on the adjustment date or the Consumer Price Index percentage increase since the base rent date. These future changes in payments will be considered variable payments and will not impact the assessment of the asset or liability unless there is a significant event that triggers reassessment, such as amendment with a change in the terms of the lease. The weighted-average remaining lease terms for the Company's ground leases were 47 years and 35 years as of December 31, 2024 and 2023, respectively. The following schedule indicates approximate future minimum ground lease payments, including renewal periods, for these properties by year as of December 31, 2024: Years Ending December 31, (In thousands) 2025 $ 2,821 2026 2,951 2027 2,968 2028 3,040 2029 3,102 Thereafter 152,366 Total minimum payments 167,248 Imputed interest (1) ( 127,861 ) Total ground lease liabilities $ 39,387 (1) As the Company’s leases do not provide an implicit rate, in order to calculate the present value of the remaining ground lease payments, the Company used its incremental borrowing rate, adjusted for a number of factors, including the long-term nature of the ground leases and the Company’s estimated borrowing costs, to determine the imputed interest for its ground leases. The weighted-average discount rates for the Company's ground leases were 6.82 % and 5.99 % as of December 31, 2024 and 2023, respectively. 58 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (3) UNCONSOLIDATED INVESTMENT The Company owns a 50 % undivided tenant-in-common interest in Industry Distribution Center II, a 309,000 square foot warehouse distribution building in the City of Industry (Los Angeles), California. The building was constructed in 1998 and is 100 % leased through December 2026 to a single tenant who owns the other 50 % interest in the property. This investment is accounted for under the equity method of accounting and had a carrying value of $ 7,448,000 at December 31, 2024, and $ 7,539,000 at December 31, 2023. (4) OTHER ASSETS A summary of the Company’s Other assets follows: December 31, 2024 2023 (In thousands) Leasing costs (principally commissions) $ 173,582 158,741 Accumulated amortization of leasing costs ( 63,179 ) ( 57,646 ) Leasing costs (principally commissions), net of accumulated amortization 110,403 101,095 Acquired in-place lease intangibles 59,101 39,600 Accumulated amortization of acquired in-place lease intangibles ( 20,443 ) ( 19,395 ) Acquired in-place lease intangibles, net of accumulated amortization 38,658 20,205 Acquired above market lease intangibles 564 482 Accumulated amortization of acquired above market lease intangibles ( 376 ) ( 318 ) Acquired above market lease intangibles, net of accumulated amortization 188 164 Straight-line rents receivable 83,722 72,360 Accounts receivable 10,033 9,984 Interest rate swap assets 21,953 27,366 Right of use assets — Office leases (operating) 2,228 2,828 Goodwill 990 990 Escrow deposits and prepaid costs for pending transactions 3,336 745 Prepaid insurance 6,469 7,208 Receivable for insurance proceeds 3,863 1,425 Prepaid expenses and other assets 8,316 7,569 Total Other assets $ 290,159 251,939 (5) UNSECURED BANK CREDIT FACILITIES The Company’s borrowings on unsecured bank credit facilities are detailed below: December 31, 2024 2023 (In thousands) Unsecured bank credit facilities — variable rate, carrying amount $ — — Unamortized debt issuance costs ( 3,595 ) ( 1,520 ) Unsecured bank credit facilities, net of debt issuance costs $ ( 3,595 ) ( 1,520 ) 59 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS On June 13, 2024, EastGroup entered into amended and restated credit agreements related to its $ 625,000,000 and $ 50,000,000 unsecured bank credit facilities, to extend the maturity dates from July 30, 2025 to July 31, 2028. There were no other material changes to the credit facilities, which are outlined below. The Company has a $ 625,000,000 unsecured bank credit facility with a group of 10 banks, which has a maturity date of July 31, 2028 . 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 December 31, 2024 , was Term Secured Overnight Financing Rate (“SOFR”) plus 76.5 basis points with an annual facility fee of 15 basis points. As of December 31, 2024 , the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 5.222 %. The Company has two standby letters of credit totaling $ 2,655,000 pledged on this facility, which reduces borrowing capacity under the credit facility. The Company also has a $ 50,000,000 unsecured bank credit facility with a maturity date of July 31, 2028 , or such later date as designated by the bank; the Company also has two six-month extensions available if the extension options in the $ 625,000,000 facility are exercised. The interest rate is reset on a daily basis and as of December 31, 2024 , was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points. As of December 31, 2024 , the interest rate was 5.335 % with no outstanding balance. For both facilities, the margin and facility fee are subject to changes in the Company’s credit ratings. Although the Company’s current credit rating is Baa2, given the strength of the Company’s key credit metrics, initial pricing for the credit facilities is based on the BBB+/Baa1 credit ratings level. This favorable pricing level will be retained provided that the Company’s consolidated leverage ratio, as defined in the applicable agreements, remains less than 32.5% . The $ 625,000,000 facility also includes a sustainability-linked pricing component, pursuant to which the applicable interest rate margin is adjusted if the Company meets a certain sustainability performance target. This sustainability metric is evaluated annually and was achieved for the years ended December 31, 2024 , 2023, and 2022, which allowed for the interest rate reduction in each of the years subsequent to achieving the metric. The margin was effectively reduced on this unsecured bank credit facility for the years ended December 31, 2024 and 2023, by one basis point, from 77.5 to 76.5 basis points. Average unsecured bank credit facilities borrowings were $ 1,776,000 in 2024, $ 49,384,000 in 2023 and $ 182,478,000 in 2022, with weighted average interest rates (excluding amortization of facility fees and debt issuance costs) of 6.25 % in 2024, 5.68 % in 2023 and 2.32 % in 2022. Amortization of facility fees was $ 1,012,000 , $ 1,005,000 and $ 713,000 for 2024, 2023 and 2022, respectively. Amortization of debt issuance costs for the Company’s unsecured bank credit facilities was $ 1,036,000 , $ 1,003,000 and $ 650,000 for 2024, 2023 and 2022, respectively. 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 December 31, 2024 and 2023. (6) UNSECURED DEBT The Company’s unsecured debt is detailed below: December 31, 2024 2023 (In thousands) Unsecured debt - fixed rate, carrying amount (1) $ 1,510,000 1,680,000 Unamortized debt issuance costs ( 2,843 ) ( 3,653 ) Unsecured debt, net of debt issuance costs $ 1,507,157 1,676,347 (1) These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps. 60 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A summary of the carrying amount of Unsecured debt follows: Balance at December 31, Margin Interest Rate Maturity Date 2024 2023 (In thousands) $50 Million Unsecured Term Loan (1) 0.94 % 4.08 % 08/30/2024 $ — 50,000 $60 Million Senior Unsecured Notes Not applicable 3.46 % 12/13/2024 — 60,000 $60 Million Senior Unsecured Notes Not applicable 3.48 % 12/15/2024 — 60,000 $50 Million Unsecured Term Loan (1) 1.10 % 1.58 % 03/18/2025 50,000 50,000 $20 Million Senior Unsecured Notes Not applicable 3.80 % 08/28/2025 20,000 20,000 $25 Million Senior Unsecured Notes Not applicable 3.97 % 10/01/2025 25,000 25,000 $50 Million Senior Unsecured Notes Not applicable 3.99 % 10/07/2025 50,000 50,000 $100 Million Unsecured Term Loan (1) 0.94 % 2.09 % 10/10/2026 100,000 100,000 $40 Million Senior Unsecured Notes Not applicable 3.75 % 12/15/2026 40,000 40,000 $100 Million Unsecured Term Loan (1) 0.95 % 1.80 % 03/25/2027 100,000 100,000 $75 Million Unsecured Term Loan (1) 0.94 % 3.99 % 08/31/2027 75,000 75,000 $60 Million Senior Unsecured Notes Not applicable 3.93 % 04/10/2028 60,000 60,000 $100 Million Unsecured Term Loan (1) (2) 0.95 % 2.61 % 09/29/2028 100,000 100,000 $80 Million Senior Unsecured Notes Not applicable 4.27 % 03/28/2029 80,000 80,000 $75 Million Senior Unsecured Notes Not applicable 3.47 % 08/19/2029 75,000 75,000 $100 Million Unsecured Term Loan (1) 1.35 % 5.27 % 01/13/2030 100,000 100,000 $100 Million Senior Unsecured Notes Not applicable 2.61 % 10/14/2030 100,000 100,000 $125 Million Senior Unsecured Notes Not applicable 2.74 % 06/10/2031 125,000 125,000 $35 Million Senior Unsecured Notes Not applicable 3.54 % 08/15/2031 35,000 35,000 $150 Million Senior Unsecured Notes Not applicable 3.03 % 04/20/2032 150,000 150,000 $75 Million Senior Unsecured Notes Not applicable 2.71 % 10/14/2032 75,000 75,000 $75 Million Senior Unsecured Notes Not applicable 4.90 % 10/12/2033 75,000 75,000 $75 Million Senior Unsecured Notes Not applicable 4.95 % 10/12/2034 75,000 75,000 $ 1,510,000 1,680,000 (1) The interest rates on these unsecured term loans are comprised of Term SOFR plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings. The Company entered into interest rate swap agreements (further described in Note 12) to convert the loans’ Term SOFR rates to effectively fixed interest rates. The interest rates in the table above are the effectively fixed interest rates for the loans, including the effects of the interest rate swaps, as of December 31, 2024. (2) This term loan was refinanced effective September 29, 2023. The margin was reduced by approximately 45 basis points, changing the effectively fixed rate from 3.06 % to 2.61 %. In August 2024, EastGroup repaid a $ 50,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 4.08 %. In December 2024, the Company made principal repayments of two senior unsecured notes totaling $120,000,000. Senior unsecured notes with a principal balance of $ 60,000,000 had a fixed interest rate of 3.46 %. The other senior unsecured notes with a principal balance of $ 60,000,000 had a fixed interest rate of 3.48 %. Both payments were made at maturity. The Company did not enter into or refinance any unsecured debt agreements during the year ended December 31, 2024 . During the year ended December 31, 2023, EastGroup closed on a $ 100,000,000 unsecured term loan with an effectively fixed interest rate of 5.27 %. The Company refinanced a $ 100,000,000 unsecured term loan, reducing the interest rate by 45 basis points. EastGroup repaid a $ 65,000,000 unsecured term loan with an effectively fixed interest rate of 2.31 %. The Company also made a scheduled $ 50,000,000 principal repayment on its senior unsecured notes with a fixed interest rate of 3.80 %. During the year ended December 31, 2022, EastGroup closed on a total of $ 525,000,000 of new unsecured debt with a weighted average effectively fixed interest rate of 3.82 %. The Company refinanced a $ 100,000,000 unsecured term loan, reducing the 61 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS interest rate by 60 basis points. EastGroup also repaid a $ 75,000,000 unsecured term loan with an effectively fixed interest rate of 3.03 %. The Company’s unsecured debt instruments have certain restrictive covenants, such as maintaining debt service coverage and leverage ratios and maintaining insurance coverage, and the Company was in compliance with all of its financial debt covenants at December 31, 2024 and 2023. The Company currently intends to repay its debt obligations, both in the short-term and long-term, through its operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt (primarily unsecured), and/or proceeds from the issuance of equity instruments. 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 December 31, 2024 are as follows: Years Ending December 31, (In thousands) 2025 $ 145,000 2026 140,000 2027 175,000 2028 160,000 2029 155,000 Thereafter 735,000 Total unsecured debt, before amortization of debt issuance costs $ 1,510,000 (7) ACCOUNTS PAYABLE AND ACCRUED EXPENSES A summary of the Company’s Accounts payable and accrued expenses follows: December 31, 2024 2023 (In thousands) Property taxes payable $ 11,528 9,508 Development costs payable 16,388 29,487 Retainage payable 10,920 14,992 Real estate improvements and capitalized leasing costs payable 8,753 5,275 Interest payable 8,351 8,493 Dividends payable 74,049 62,393 Incentive compensation payable 6,726 6,166 Other payables and accrued expenses 10,627 10,023 Total Accounts payable and accrued expenses $ 147,342 146,337 62 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (8) OTHER LIABILITIES A summary of the Company’s Other liabilities follows: December 31, 2024 2023 (In thousands) Security deposits $ 43,506 37,102 Prepaid rent and other deferred income 24,813 20,070 Operating lease liabilities — Ground leases 39,387 18,758 Operating lease liabilities — Office leases 2,269 2,882 Acquired below-market lease intangibles 29,198 11,451 Accumulated amortization of acquired below-market lease intangibles ( 6,781 ) ( 5,006 ) Acquired below-market lease intangibles, net of accumulated amortization 22,417 6,445 Interest rate swap liabilities — 2,478 Other liabilities 1,636 1,680 Total Other liabilities $ 134,028 89,415 (9) COMMON STOCK ACTIVITY The following table presents the common stock activity for the three years ended December 31, 2024, 2023, and 2022: Years Ended December 31, 2024 2023 2022 Common Stock (in shares) Shares outstanding at beginning of year 47,700,432 43,575,539 41,268,846 Common stock offerings 4,071,536 4,094,896 393,406 Common stock issued in the purchase of real estate — — 1,868,809 Incentive restricted stock granted 84,308 57,741 71,217 Incentive restricted stock forfeited ( 2,545 ) ( 1,015 ) — Director common stock awarded — — 161 Director restricted stock granted 5,040 4,134 5,696 Employee common stock awarded 600 575 2,425 Stock withheld for tax obligations ( 33,573 ) ( 31,438 ) ( 35,021 ) Shares outstanding at end of year 51,825,798 47,700,432 43,575,539 On October 25, 2024, we established an at-the-market common stock offering program (“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 $ 1,000,000,000 (the “Current ATM Program”). The Current ATM Program replaces our previous $ 750,000,000 ATM program (the “Prior ATM Program”), which was established on October 25, 2023, under which we had sold shares of our common stock having an aggregate gross sales price of $ 746,153,000 through October 25, 2024. In addition, we previously established a $ 750,000,000 ATM program 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. 63 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 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 years ended December 31, 2024, 2023 and 2022: Years Ended December 31, Common Stock Issued (1) Weighted Average Price Gross Proceeds Net Proceeds (In shares) (Per share) (In thousands) (In thousands) 2024 1,373,459 $ 174.30 $ 239,390 $ 236,996 2023 4,094,896 170.77 699,304 692,312 2022 393,406 194.17 76,386 75,622 (1) Excludes shares of common stock sold on a forward basis as described in the following paragraph. Forward Equity Offering Activity In connection with the Current ATM program, we may sell shares of our common stock through sales agents or through certain financial institutions acting as forward purchasers 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. The use of a forward equity sale agreement allows us to lock in a share price on the sale of shares of our common stock but defer settling and receiving the proceeds from the sale of shares until a later date. Additionally, the forward price that we expect to receive upon settlement of an agreement will be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends during the term of the agreement. The following table presents the Company’s forward equity offering activity during the years ended December 31, 2024 and December 31, 2023: Common Stock Weighted Average Price Gross Proceeds (In shares) (Per share) (In thousands) Forward Sale Agreements Outstanding at December 31, 2022 — N/A $ — Forward sale agreements settled — shares issued and proceeds received — N/A — New forward sale agreements (1) 406,041 183.92 74,679 Forward Sale Agreements Outstanding at December 31, 2023 406,041 $ 183.92 $ 74,679 Forward sale agreements settled — shares issued and proceeds received (2) ( 2,698,077 ) 179.63 ( 484,653 ) New forward sale agreements (1) 2,677,289 178.32 477,420 Forward Sale Agreements Outstanding at December 31, 2024 385,253 $ 175.07 $ 67,446 (1) The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time it entered into forward sale agreements. (2) EastGroup settled outstanding forward equity sale agreements by issuing 2,698,077 shares of common stock in exchange for net proceeds of approximately $480,663,000 . (10) STOCK-BASED COMPENSATION Equity Incentive Plan In April 2013, the Board of Directors adopted the EastGroup Properties, Inc. 2013 Equity Incentive Plan (the “2013 Equity Plan”) upon the recommendation of the Compensation Committee of the Company's Board of Directors (the “Committee”); the 2013 Equity Plan was approved by the Company’s stockholders and became effective May 29, 2013. The 2013 Equity Plan was further amended by the Board of Directors in March 2017. The 2013 Equity Plan permitted the grant of awards to employees and directors with respect to 2,000,000 shares of common stock. In April 2023, the Board of Directors adopted the EastGroup Properties, Inc. 2023 Equity Incentive Plan (the “2023 Equity Plan”) upon the recommendation of the Committee; the 2023 Equity Plan was approved by the Company’s stockholders and became effective May 25, 2023. The 2023 Equity Plan permits the grant of awards to employees and directors with respect to 1,500,000 shares of common stock. 64 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS There were 1,396,713 and 1,484,116 shares available for grant under the 2023 Equity Plan as of December 31, 2024 and 2023, respectively, and 1,422,437 shares available for grant under the 2013 Equity Plan as of December 31, 2022. Typically, the Company issues new shares to fulfill stock grants. Employee Equity Awards The Company’s restricted stock program is designed to provide incentives for management to achieve goals established by the Committee. The awards act as a retention device, as they vest over time, allowing participants to benefit from dividends on shares as well as potential stock appreciation. Equity awards align management’s interests with the long-term interests of shareholders. The Committee approves long-term and annual equity compensation awards for the Company’s executive officers. The vesting periods of the Company’s restricted stock plans vary, as determined by the Committee. Restricted stock is granted to executive officers subject to both continued service and the satisfaction of certain annual performance goals and multi-year market conditions as determined by the Committee. Long-term equity compensation awards The long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three-year period and the employee’s continued service as of the vesting dates. The total shareholder return component is subject to bright-line tests that compare the Company’s total shareholder return to the Nareit Equity Index and to the member companies of the Nareit industrial index. The following table summarizes the assumptions used in the Monte Carlo simulation pricing model used to determine the grant date fair value of the multi-year market conditions component of the long-term compensation awards for 2024, 2023 and 2022: 2024 Award 2023 Award 2022 Award Valuation date 2/26/2024 3/2/2023 3/3/2022 Risk-free interest rate 4.65 % 4.68 % 1.64 % Expected share price volatility for the Company 22.85 % 31.01 % 30.01 % Expected share price volatility for peer group companies - low end of range 20.46 % 27.31 % 26.32 % Expected share price volatility for peer group companies - high end of range 62.79 % 51.26 % 50.10 % Expected dividend yield 2.84 % 3.02 % 2.27 % Number of simulation paths 1,000,000 1,000,000 1,000,000 Grant date fair value (in thousands) $ 4,442 4,885 2,912 The risk-free interest rate is based on zero coupon risk-free rates matching the three-year time period of the market performance period. The expected share price volatilities are based on a mix of the historical and implied volatilities of the Company and the peer group companies. The expected dividend yield is based on the expected annual cash dividend as of the valuation date divided by the Company’s stock price on the valuation date. These market based awards are expensed on a straight-line basis over the requisite service period ( 75 % vests at the end of the three-year performance period and 25 % vests the following year). The following table presents the total shareholder return component of the long-term compensation awards for the four years ended December 31, 2024: 2024 Award 2023 Award 2022 Award 2021 Award Grant date 2/26/2024 3/2/2023 3/3/2022 2/25/2021 Performance period 1/1/24 - 12/31/26 1/1/23 - 12/31/25 1/1/22 - 12/31/24 1/1/21 - 12/31/23 Range of earnable shares - low end of range — — — — Range of earnable shares - high end of range 39,364 44,725 27,212 36,400 Shares determined N/A (1) N/A (1) N/A (1) 36,400 (1) The market conditions for this award have not yet been satisfied and the number of shares have not yet been determined. 65 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The long term awards subject only to continuing employment are expensed on a straight-line basis over the requisite service period ( 25 % vests in each of the following four years). The following table presents the service only component of the long-term compensation awards for the four years ended December 31, 2024: 2024 Award 2023 Award 2022 Award 2021 Award Grant date 2/26/2024 3/2/2023 3/3/2022 2/25/2021 Shares granted 8,436 9,583 5,830 7,801 Grant date share price $ 179.17 165.83 193.54 138.93 Annual equity compensation awards The annual equity compensation awards include components based on certain annual Company performance measures and individual annual performance goals over the upcoming year. The certain Company performance measures for 2024 are: (i) funds from operations “FFO” per share, (ii) cash same property net operating income change, (iii) debt-to-EBITDAre ratio, and (iv) fixed charge coverage. The Company begins recognizing expense for its estimate of the shares that could be earned pursuant to these awards on the grant date; the expense is adjusted to estimated performance levels during the performance period and to actual upon the determination of the awards. The shares are expensed using the graded vesting attribution method which recognizes each separate vesting portion of the award as a separate award on a straight-line basis over the requisite service period ( 34 % vests at the end of the one year performance period and 33 % vests in each of the following two years ). The following table presents the Company performance measures component of the annual equity compensation awards for the three years ended December 31, 2024: 2024 Award 2023 Award 2022 Award Grant date 2/26/2024 3/2/2023 3/3/2022 Performance period 1/1/24 - 12/31/24 1/1/23 - 12/31/23 1/1/22 - 12/31/22 Range of earnable shares - low end of range — — — Range of earnable shares - high end of range 18,548 21,438 13,289 Shares determined N/A (1) 21,438 12,761 Grant date share price $ 179.17 165.83 193.54 (1) The performance conditions for this award have not yet been satisfied and the number of shares have not yet been determined. Any shares issued pursuant to the individual annual performance goals are determined by the Committee in its discretion following the performance period. The Company begins recognizing the expense for the shares on the grant date and expenses on a straight-line basis over the remaining service period ( 34 % vests at the end of the one year performance period and 33 % vests in each of the following two years ). The following table presents the individual performance goals component of the annual equity compensation awards for the three years ended December 31, 2024: 2024 Award 2023 Award 2022 Award Grant date N/A (1) 2/14/2024 2/15/2023 Performance period 1/1/24 - 12/31/24 1/1/23 - 12/31/23 1/1/22 - 12/31/22 Range of earnable shares - low end of range — — — Range of earnable shares - high end of range 5,652 5,358 3,323 Shares determined N/A (1) 4,814 3,022 Grant date share price N/A (1) $ 183.46 168.90 (1) For this award, the performance conditions and grant date criteria under ASC 718, Compensation - Stock Compensation, have not yet been satisfied and the date of grant and resulting number of shares have not yet been determined. Equity compensation is also awarded to the Company’s non-executive officers, which are subject to service only conditions and expensed on a straight-line basis over the requisite service period ( 20 % vests in each of the following five years ). The total 66 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS compensation expense is based upon the fair market value of the shares on the grant date. The following table presents the compensation awards to non-executive officers for the three years ended December 31, 2024: 2024 Award 2023 Award 2022 Award Grant date 8/5/2024 6/20/2023 6/20/2022 Shares granted 12,150 11,325 11,225 Grant date share price $ 179.35 172.70 148.48 The Committee has adopted an Equity Award Retirement Policy (the “retirement policy”) which allows for accelerated vesting of unvested shares for retirement-eligible employees (defined as employees who meet certain age and years of service requirements). In order to qualify for accelerated vesting upon retirement, the eligible employees must provide required notification under the retirement policy and must retire from the Company. 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 $ 11,729,000 , $ 11,013,000 and $ 10,236,000 for 2024, 2023 and 2022, respectively, of which $ 2,017,000 , $ 2,812,000 and $ 2,510,000 were capitalized as part of the Company’s development costs for the respective years. As of December 31, 2024, there was $ 4,425,000 of unrecognized compensation cost related to unvested restricted stock compensation for employees and directors that is expected to be recognized over a weighted average period of 2.8 years. During the restricted period for granted and unvested awards, dividends are accrued based upon the number of shares expected to be awarded. As of December 31, 2024, 2023 and 2022, accrued dividends on unvested restricted stock were $ 1,617,000 , $ 1,921,000 and $ 1,610,000 , respectively. Of the shares that vested in 2024, 2023 and 2022, 33,381 shares, 31,254 shares and 34,251 shares, respectively, were withheld by the Company to satisfy the tax obligations for those employees who elected this option as permitted under the applicable equity plan. Following is a summary of the total restricted shares granted, forfeited and delivered (vested) to employees with the related weighted average grant date fair value share prices for 2024, 2023 and 2022. As of the grant dates, the aggregate fair value of shares that were granted during 2024, 2023 and 2022 was $ 11,270,000 , $ 8,562,000 and $ 8,654,000 , respectively. As of the vesting dates, the aggregate fair value of shares that vested during 2024, 2023 and 2022 was $ 14,324,000 , $ 11,304,000 and $ 17,124,000 , respectively. Restricted Stock Activity: Years Ended December 31, 2024 2023 2022 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 80,282 $ 153.43 96,708 $ 131.79 106,056 $ 116.37 Granted (1) (2) 84,308 133.68 57,741 148.28 71,217 121.52 Forfeited ( 2,545 ) 156.45 ( 1,015 ) 144.79 — — Vested ( 77,976 ) 124.12 ( 73,152 ) 120.87 ( 80,565 ) 102.42 Unvested at end of year 84,069 160.72 80,282 153.43 96,708 131.79 (1) Includes restricted shares granted during the year without performance or market conditions. Also includes restricted shares granted in previous years, for long-term and annual equity compensation awards for the Company's executive officers, for which performance based or market based conditions have been satisfied and the resulting number of shares have been determined during the year. (2) Does not include restricted shares subject to open performance periods. For the long-term equity compensation awards established in 2022 and 2023 and the long-term and annual equity compensation awards established in 2024, the number of shares depend on satisfaction of performance based or market based conditions, and the number of shares to be earned could range from zero to 135,501 . 67 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Following is a vesting schedule of the total unvested shares for employees as of December 31, 2024: Unvested Shares Vesting Schedule Number of Shares 2025 41,306 2026 22,978 2027 10,809 2028 6,546 2029 2,430 Total Unvested Shares 84,069 Directors Equity Awards The Board of Directors has adopted a policy under the 2023 Equity Plan pursuant to which awards will be made to non-employee Directors. The current policy provides that the Company shall automatically award an annual restricted share award to each non-employee Director who has been elected or re-elected as a member of the Board of Directors at the Annual Meeting. The number of shares shall be equal to $ 135,000 divided by the fair market value of a share on the date of such election. If a non-employee Director is elected or appointed to the Board of Directors other than at an Annual Meeting of the Company, the annual restricted share award shall be pro rated. The restricted shares vest in full on the earlier of the one-year anniversary of the date of grant or the next annual meeting of shareholders following the date of grant, subject to the non-employee director’s continued service on the Board through such vesting date, subject to certain exceptions. The shares are expensed on a straight-line basis over the service period. The policy also provides that each new non-employee Director appointed or elected will receive an automatic award of restricted shares of Common Stock on the effective date of election or appointment equal to $ 25,000 divided by the fair market value of the Company’s Common Stock on such date. These restricted shares will vest 25 % per year over a four -year period upon the performance of future service as a Director, subject to certain exceptions. The shares are expensed on a straight-line basis over the service period. Directors were granted 5,040 , 4,134 and 5,568 shares of common stock as annual restricted share awards during 2024, 2023 and 2022, respectively. Stock-based compensation expense for directors was $ 764,000 , $ 764,000 and $ 566,000 for 2024, 2023 and 2022, respectively. Following is a summary of the total restricted shares granted, forfeited and delivered (vested) to directors with the related weighted average grant date fair value share prices for 2024, 2023 and 2022. As of the grant dates, the aggregate fair value of shares that were granted during 2024, 2023 and 2022 was $ 811,000 , $ 661,000 and $ 906,000 , respectively. As of the vesting dates, the fair value of shares that vested during 2024, 2023 and 2022 was $ 680,000 , $ 904,000 and $ 8,000 , respectively. Restricted Stock Activity: Years Ended December 31, 2024 2023 2022 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Unvested at beginning of year 4,282 $ 160.15 5,800 $ 158.31 156 $ 120.39 Granted 5,040 160.87 4,134 159.79 5,696 159.00 Forfeited — — — — — — Vested ( 4,218 ) 159.58 ( 5,652 ) 158.00 ( 52 ) 120.39 Unvested at end of year 5,104 161.33 4,282 160.15 5,800 158.31 68 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (11) COMPREHENSIVE INCOME 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 for 2024, 2023 and 2022 are presented in the Company’s Consolidated Statements of Changes in Equity and are summarized below. See Note 12 for information regarding the Company’s interest rate swaps. Years Ended December 31, 2024 2023 2022 ACCUMULATED OTHER COMPREHENSIVE INCOME: (In thousands) Balance at beginning of year $ 24,888 36,371 1,302 Other comprehensive income (loss) - interest rate swaps ( 2,935 ) ( 11,483 ) 35,069 Balance at end of year $ 21,953 24,888 36,371 (12) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risk, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and, to a limited extent, the use of derivative instruments. Specifically, the Company has entered into derivative instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative instruments, described below, are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain of the Company’s borrowings. The Company’s objective in using interest rate derivatives is to change variable interest rates to fixed interest rates by using interest rate swaps. 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 December 31, 2024 , EastGroup 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’ Term SOFR rate components to effectively fixed interest rates, and the Company has concluded that each of the hedging relationships is highly effective. The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Other comprehensive income (loss) and are subsequently reclassified into earnings through Interest expense as interest payments are made or received on the Company’s variable rate debt in the period that the hedged forecasted transaction affects earnings. The Company estimates that an additional $ 9,821,000 will be reclassified from O ther comprehensive income (loss) as a decrease to Interest expense over the next twelve months. The Company’s valuation methodology for over-the-counter (“OTC”) derivatives is to discount cash flows based on SOFR market data. Uncollateralized or partially-collateralized trades include appropriate economic adjustments for funding costs and credit risk. The Company calculates its derivative valuations using mid-market prices. 69 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS As of December 31, 2024 and 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 December 31, 2024 December 31, 2023 (In thousands) Interest Rate Swap $ 100,000 100,000 Interest Rate Swap 100,000 100,000 Interest Rate Swap 50,000 50,000 Interest Rate Swap 100,000 100,000 Interest Rate Swap 75,000 75,000 Interest Rate Swap — 50,000 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 December 31, 2024 and 2023. See Note 16 for additional information on the fair value of the Company’s interest rate swaps. DERIVATIVES DESIGNATED AS CASH FLOW HEDGES AT FAIR VALUE December 31, 2024 December 31, 2023 (In thousands) Interest rate swap assets (1) $ 21,953 27,366 Interest rate swap liabilities (2) — 2,478 (1) Included in Other assets on the Consolidated Balance Sheets. (2) Included in Other Liabilities on the Consolidated Balance Sheets. 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 years ended December 31, 2024 , 2023 and 2022: Years Ended December 31, DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS 2024 2023 2022 (In thousands) Amount of income recognized in Other comprehensive income (loss) on derivatives $ 14,869 6,319 37,563 Amount of (income) loss reclassified from Accumulated other comprehensive income into Interest expense ( 17,804 ) ( 17,802 ) ( 2,494 ) See Note 11 for additional information on the Company’s Accumulated other comprehensive income resulting from its interest rate swaps. Derivative financial agreements expose the Company to credit risk in the event of non-performance by the counterparties under the terms of the interest rate hedge agreements. The Company believes it minimizes the credit risk by transacting with financial institutions the Company regards as credit-worthy. 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 December 31, 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. 70 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (13) EARNINGS PER SHARE Reconciliation of the numerators and denominators in the basic and diluted EPS computations is as follows: Years Ended December 31, 2024 2023 2022 (In thousands) BASIC EPS COMPUTATION FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Numerator — net income attributable to common stockholders $ 227,751 200,491 186,182 Denominator — weighted average shares outstanding — Basic 48,803 45,224 42,599 DILUTED EPS COMPUTATION FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Numerator — net income attributable to common stockholders $ 227,751 200,491 186,182 Denominator: Weighted average shares outstanding — Basic 48,803 45,224 42,599 Effect of dilutive securities 108 107 113 Weighted average shares outstanding — Diluted 48,911 45,331 42,712 (14) DEFINED CONTRIBUTION PLAN EastGroup maintains a 401(k) plan for its employees. The Company makes matching contributions of 50 % of the employee’s contribution (limited to 10 % of compensation as defined by the plan) and may also make annual discretionary contributions. The Company’s total expense for this plan was $ 1,317,000 , $ 1,246,000 and $ 1,158,000 for 2024, 2023 and 2022, respectively. (15) LEGAL MATTERS The Company is not presently involved in any material litigation nor, to its knowledge, is any material litigation threatened against the Company or its properties, other than routine litigation arising in the ordinary course of business. (16) FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. The 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). 71 EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at December 31, 2024 and 2023. December 31, 2024 2023 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value (In thousands) Financial Assets: Cash and cash equivalents $ 17,529 17,529 40,263 40,263 Interest rate swap assets 21,953 21,953 27,366 27,366 Financial Liabilities: Unsecured debt (2) 1,510,000 1,403,754 1,680,000 1,548,655 Interest rate swap liabilities — — 2,478 2,478 (1) Carrying amounts shown in the table are included in the Consolidated Balance Sheets under the indicated captions, except as indicated in the notes below. (2) Carrying amounts and fair values shown in the table exclude debt issuance costs (see Note 6 for additional information). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amounts approximate fair value due to the short maturity of those instruments. • 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 for substantially the full term of the contract (Level 2 input). See Note 12 for additional information on the Company’s interest rate swaps. • Unsecured debt: The fair value of the Company’s unsecured debt is estimated by discounting expected cash flows at the rates currently offered to the Company for debt of the same remaining maturities, as advised by the Company’s bankers (Level 2 input), excluding the effects of debt issuance costs. • Interest rate swap liabilities (included in Other liabilities on the Consolidated Balance Sheets): The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves, SOFR swap curves, observable for substantially the full term of the contract (Level 2 input). See Note 12 for additional information on the Company’s interest rate swaps. (17) SUBSEQUENT EVENTS Subsequent to December 31, 2024, EastGroup settled outstanding forward equity sale agreements under the Current ATM Program by issuing 214,138 shares of common stock in exchange for net proceeds of approximately $ 37,005,000 . Subsequent to year end, EastGroup refinanced a $ 100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97 %. The loan, which previously had five years remaining, now has a three-year maturity with two one-year extension options at the Company's election. 72 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Real Estate Properties (c): Industrial: FLORIDA Tampa Westport Commerce Center $ 980 3,800 4,577 980 8,377 — 9,357 6,033 1994 1983/87 Benjamin Distribution Center 1 & 2 843 3,963 2,344 883 6,267 — 7,150 4,885 1997 1996 Benjamin Distribution Center 3 407 1,503 872 407 2,375 — 2,782 1,923 1999 1988 Palm River Center 1,190 4,625 4,334 1,190 8,959 — 10,149 6,464 1997/98 1990/97/98 Palm River North 1 & 3 1,005 4,688 3,884 1,005 8,572 — 9,577 5,897 1998 2000 Palm River North 2 634 4,418 825 634 5,243 — 5,877 3,923 1997/98 1999 Palm River South 1 655 3,187 1,408 655 4,595 — 5,250 2,595 2000 2005 Palm River South 2 655 — 5,430 655 5,430 — 6,085 3,226 2000 2006 Walden Distribution Center 1 337 3,318 2,018 337 5,336 — 5,673 3,217 1997/98 2001 Walden Distribution Center 2 465 3,738 1,775 465 5,513 — 5,978 3,943 1998 1998 Oak Creek Distribution Center 1 1,109 6,126 1,955 1,109 8,081 — 9,190 5,582 1998 1998 Oak Creek Distribution Center 2 647 3,603 2,238 647 5,841 — 6,488 3,852 2003 2001 Oak Creek Distribution Center 3 439 — 3,668 556 3,551 — 4,107 1,851 2005 2007 Oak Creek Distribution Center 4 682 6,472 1,279 682 7,751 — 8,433 4,359 2005 2001 Oak Creek Distribution Center 5 724 — 6,405 916 6,213 — 7,129 3,370 2005 2007 Oak Creek Distribution Center 6 642 — 6,242 812 6,072 — 6,884 3,174 2005 2008 Oak Creek Distribution Center 7 740 — 6,471 740 6,471 — 7,211 1,685 2005 2017 Oak Creek Distribution Center 8 843 — 6,431 1,051 6,223 — 7,274 1,835 2005 2015 Oak Creek Distribution Center 9 618 — 5,259 781 5,096 — 5,877 2,404 2005 2009 Oak Creek Distribution Center 10 106 — 753 352 507 — 859 6 2005 n/a Oak Creek Distribution Center A 185 — 1,565 185 1,565 — 1,750 783 2005 2008 Oak Creek Distribution Center B 227 — 1,654 227 1,654 — 1,881 815 2005 2008 Oak Creek Distribution Center C Land 355 — 1,291 355 1,291 — 1,646 134 2005 n/a Airport Commerce Center 1,257 4,012 1,231 1,257 5,243 — 6,500 3,628 1998 1998 Westlake Distribution Center 1,333 6,998 3,047 1,333 10,045 — 11,378 7,406 1998 1998/99 Expressway Commerce Center 1 915 5,346 1,949 915 7,295 — 8,210 4,731 2002 2004 73 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Expressway Commerce Center 2 1,013 3,247 1,295 1,013 4,542 — 5,555 2,941 2003 2001 Silo Bend Distribution Center 4,131 27,497 7,126 4,132 34,622 — 38,754 14,410 2011 1987/90 Tampa East Distribution Center 791 4,758 935 791 5,693 — 6,484 2,573 2011 1984 Tampa West Distribution Center 2,139 8,502 2,446 2,140 10,947 — 13,087 4,370 2011 1975/93/94 Madison Distribution Center 495 2,779 575 495 3,354 — 3,849 1,473 2012 2007 Madison Distribution Center 2 & 3 624 — 7,309 624 7,309 — 7,933 2,326 2012 2015 Madison Distribution Center 4 & 5 565 — 8,564 565 8,564 — 9,129 2,670 2012 2016 Grand Oaks 75 Business Center 1 3,572 12,979 373 3,572 13,352 — 16,924 2,720 2019 2017 Grand Oaks 75 Business Center 2 2,589 10,226 2,379 2,589 12,605 — 15,194 2,180 2019 2019 Grand Oaks 75 Business Center 3 1,767 — 9,930 1,770 9,927 — 11,697 1,194 2019 2021 Grand Oaks 75 Business Center 4 2,334 — 17,077 2,338 17,073 — 19,411 1,262 2019 2022 Orlando Chancellor Center 291 1,711 759 291 2,470 — 2,761 1,812 1996/97 1996/97 Exchange Distribution Center 1 603 2,414 3,829 603 6,243 — 6,846 4,292 1994 1975 Exchange Distribution Center 2 300 945 553 300 1,498 — 1,798 1,123 2002 1976 Exchange Distribution Center 3 320 997 554 320 1,551 — 1,871 1,119 2002 1980 Sunbelt Distribution Center 1,472 5,745 7,350 1,472 13,095 — 14,567 10,855 1989/97/98 1974/87/97/ 98 John Young Commerce Center 1 497 2,444 1,890 497 4,334 — 4,831 3,165 1997/98 1997/98 John Young Commerce Center 2 512 3,613 798 512 4,411 — 4,923 3,354 1998 1999 Sunport Center 1 555 1,977 1,375 555 3,352 — 3,907 2,322 1999 1999 Sunport Center 2 597 3,271 2,306 597 5,577 — 6,174 4,394 1999 2001 Sunport Center 3 642 3,121 1,460 642 4,581 — 5,223 3,192 1999 2002 Sunport Center 4 642 2,917 2,479 642 5,396 — 6,038 3,741 1999 2004 Sunport Center 5 750 2,509 4,112 750 6,621 — 7,371 3,987 1999 2005 Sunport Center 6 672 — 3,804 672 3,804 — 4,476 2,139 1999 2006 Southridge Commerce Park 1 373 — 5,594 373 5,594 — 5,967 3,753 2003 2006 Southridge Commerce Park 2 342 — 5,090 342 5,090 — 5,432 2,987 2003 2007 Southridge Commerce Park 3 547 — 5,913 547 5,913 — 6,460 3,251 2003 2007 Southridge Commerce Park 4 506 — 5,057 506 5,057 — 5,563 2,813 2003 2006 Southridge Commerce Park 5 382 — 5,233 382 5,233 — 5,615 2,950 2003 2006 74 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Southridge Commerce Park 6 571 — 6,245 571 6,245 — 6,816 3,203 2003 2007 Southridge Commerce Park 7 520 — 7,023 520 7,023 — 7,543 3,688 2003 2008 Southridge Commerce Park 8 531 — 6,782 531 6,782 — 7,313 3,079 2003 2008 Southridge Commerce Park 9 468 — 6,506 468 6,506 — 6,974 2,971 2003 2012 Southridge Commerce Park 10 414 — 4,947 414 4,947 — 5,361 1,805 2003 2012 Southridge Commerce Park 11 513 — 6,003 513 6,003 — 6,516 2,314 2003 2012 Southridge Commerce Park 12 2,025 — 17,283 2,025 17,283 — 19,308 7,838 2005 2008 Horizon Commerce Park 1 991 — 6,890 991 6,890 — 7,881 2,482 2008 2014 Horizon Commerce Park 2 1,111 — 7,744 1,111 7,744 — 8,855 2,689 2008 2014 Horizon Commerce Park 3 991 — 6,654 991 6,654 — 7,645 1,973 2008 2016 Horizon Commerce Park 4 1,097 — 8,629 1,097 8,629 — 9,726 2,951 2008 2015 Horizon Commerce Park 5 1,108 — 8,654 1,108 8,654 — 9,762 2,415 2008 2017 Horizon Commerce Park 6 1,099 — 11,250 1,099 11,250 — 12,349 2,463 2008 2019 Horizon Commerce Park 7 962 — 7,908 962 7,908 — 8,870 2,396 2008 2017 Horizon Commerce Park 8 & 9 1,590 — 16,673 1,590 16,673 — 18,263 2,926 2008 2019 Horizon Commerce Park 10 846 — 6,634 846 6,634 — 7,480 1,423 2009 2018 Horizon Commerce Park 11 1,101 — 9,914 1,101 9,914 — 11,015 1,969 2009 2019 Horizon Commerce Park 12 1,416 — 10,672 1,416 10,672 — 12,088 2,744 2009 2017 Horizon West 1 1,326 — 11,077 1,326 11,077 — 12,403 572 2020 2023 Horizon West 2 & 3 2,895 — 16,024 2,895 16,024 — 18,919 2,064 2020 2021 Horizon West 4 4,047 — 23,983 4,047 23,983 — 28,030 1,452 2020 2022 Horizon West 10 4,904 — 37,466 4,905 37,465 — 42,370 1,147 2020 2023 MCO Logistics Center 6,769 — 17,943 6,771 17,941 — 24,712 351 2022 2024 Jacksonville Deerwood Distribution Center 1,147 1,799 6,883 1,147 8,682 — 9,829 5,961 1989 1978 Phillips Distribution Center 1,375 2,961 6,390 1,375 9,351 — 10,726 6,967 1994 1984/95 Lake Pointe Business Park 3,442 6,450 12,064 3,442 18,514 — 21,956 15,684 1993 1986/87 Ellis Distribution Center 540 7,513 4,834 540 12,347 — 12,887 7,385 1997 1977 Westside Distribution Center 2,011 15,374 11,660 2,011 27,034 — 29,045 17,892 1997/2008 1984/85 Beach Commerce Center 476 1,899 1,133 476 3,032 — 3,508 2,095 2000 2000 Interstate Distribution Center 1,879 5,700 2,789 1,879 8,489 — 10,368 5,731 2005 1990 75 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Flagler Center 7,317 14,912 2,007 7,317 16,919 — 24,236 4,566 2016 1997/2005 Ft. Lauderdale/Palm Beach area Linpro Commerce Center 613 2,243 4,225 616 6,465 — 7,081 5,456 1996 1986 Lockhart Distribution Center — 3,489 3,795 — 7,284 2,596 9,880 6,025 1997 1986 Interstate Commerce Center 485 2,652 2,313 485 4,965 — 5,450 3,561 1998 1988 Executive Airport Distribution Ctr 1,991 4,857 6,503 1,991 11,360 — 13,351 6,826 2001 2004/06 Sample 95 Business Park 2,202 8,785 5,351 2,202 14,136 — 16,338 10,950 1996/98 1990/99 Blue Heron Distribution Center 975 3,626 3,996 975 7,622 — 8,597 5,078 1999 1986 Blue Heron Distribution Center 2 1,385 4,222 2,350 1,385 6,572 — 7,957 4,307 2004 1988 Blue Heron Distribution Center 3 450 — 3,144 450 3,144 — 3,594 1,509 2004 2009 Weston Commerce Park 4,163 9,951 2,121 4,163 12,072 — 16,235 2,944 2016 1998 Fort Myers SunCoast Commerce Center 1 911 — 5,550 928 5,533 — 6,461 2,543 2005 2008 SunCoast Commerce Center 2 911 — 5,556 928 5,539 — 6,467 2,766 2005 2007 SunCoast Commerce Center 3 1,720 — 7,327 1,763 7,284 — 9,047 3,393 2006 2008 SunCoast Commerce Center 4 1,733 — 7,785 1,762 7,756 — 9,518 2,098 2006 2017 SunCoast Commerce Center 5 1,511 — 6,911 1,594 6,828 — 8,422 1,777 2006 2019 SunCoast Commerce Center 6 1,537 — 7,350 1,594 7,293 — 8,887 1,489 2006 2019 SunCoast Commerce Center 7 1,533 — 7,175 1,533 7,175 — 8,708 973 2006 2020 SunCoast Commerce Center 8 1,533 — 6,851 1,533 6,851 — 8,384 1,406 2006 2020 SunCoast Commerce Center 10 732 — 12,571 732 12,571 — 13,303 444 2020 2023 SunCoast Commerce Center 11 785 — 9,038 785 9,038 — 9,823 633 2020 2023 SunCoast Commerce Center 12 785 — 7,840 785 7,840 — 8,625 562 2020 2022 Miami Gateway Commerce Park 1 5,746 — 17,966 5,746 17,966 — 23,712 4,495 2016 2018 Gateway Commerce Park 2 3,224 — 19,202 3,224 19,202 — 22,426 1,045 2016 2023 Gateway Commerce Park 3 5,491 — 13,086 3,176 15,401 — 18,577 1,236 2016 2022 Gateway Commerce Park 4 4,711 — 19,679 4,711 19,679 — 24,390 2,399 2016 2020 Gateway Commerce Park 5 5,746 — 18,429 5,357 18,818 — 24,175 4,496 2016 2019 76 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total CALIFORNIA San Francisco area Wiegman Distribution Center 1 2,197 8,788 5,037 2,308 13,714 — 16,022 8,886 1996 1986/87 Wiegman Distribution Center 2 2,579 4,316 875 2,579 5,191 — 7,770 1,729 2012 1998 Huntwood Distribution Center 3,842 15,368 4,749 3,842 20,117 — 23,959 15,133 1996 1988 San Clemente Distribution Center 893 2,004 1,023 893 3,027 — 3,920 2,357 1997 1978 Yosemite Distribution Center 259 7,058 3,364 731 9,950 — 10,681 6,318 1999 1974/87 6th Street Business Center 1,438 9,513 105 1,438 9,618 — 11,056 671 2022 1966 Benicia Distribution Center 1 6,632 36,362 832 6,632 37,194 — 43,826 2,743 2022 2005 Benicia Distribution Center 2 7,027 36,679 1,058 7,027 37,737 — 44,764 2,765 2022 2001 Benicia Distribution Center 3 2,136 9,792 384 2,136 10,176 — 12,312 761 2022 1998 Benicia Distribution Center 4 3,191 12,993 1,002 3,191 13,995 — 17,186 1,060 2022 1979 Benicia Distribution Center 5 3,161 16,885 245 3,161 17,130 — 20,291 1,246 2022 2007 Laura Alice Business Center 1,174 2,437 20 1,174 2,457 — 3,631 212 2022 2000 Preston Distribution Center 7,261 33,833 1,473 7,261 35,306 — 42,567 2,621 2022 1998 Sinclair Distribution Center 12,488 27,259 473 12,488 27,732 — 40,220 1,988 2022 1983 Transit Distribution Center 21,317 10,635 327 21,317 10,962 — 32,279 927 2022 1971 Whipple Business Center 17,984 15,344 723 17,984 16,067 — 34,051 1,319 2022 1986 Zephyr Distribution Center 18,033 10,602 583 18,033 11,185 — 29,218 1,183 2022 1991 Los Angeles area Eucalyptus Distribution Center 11,392 11,498 934 11,392 12,432 — 23,824 2,544 2018 1988 Kingsview Industrial Center 643 2,573 1,450 643 4,023 — 4,666 2,659 1996 1980 Dominguez Distribution Center 2,006 8,025 5,163 2,006 13,188 — 15,194 8,922 1996 1977 Main Street Distribution Center 1,606 4,103 1,276 1,606 5,379 — 6,985 3,781 1999 1999 Walnut Business Center 2,885 5,274 3,522 2,885 8,796 — 11,681 6,539 1996 1966/90 Washington Distribution Center 1,636 4,900 1,612 1,636 6,512 — 8,148 4,226 1997 1996/97 Chino Distribution Center 2,544 10,175 2,151 2,544 12,326 — 14,870 10,742 1998 1980 Ramona Distribution Center 3,761 5,751 734 3,761 6,485 — 10,246 1,635 2014 1984 Industry Distribution Center 1 10,230 12,373 5,167 10,230 17,540 — 27,770 13,153 1998 1959 Industry Distribution Center 3 — 3,012 ( 140 ) — 2,872 — 2,872 2,863 2007 1992 77 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Chestnut Business Center 1,674 3,465 846 1,674 4,311 — 5,985 2,720 1998 1999 Rancho Distribution Center 16,180 11,140 828 16,180 11,968 — 28,148 1,647 2020 2006 Fresno Shaw Commerce Center 2,465 11,627 8,983 2,465 20,610 — 23,075 15,633 1998 1978/81/87 San Diego Eastlake Distribution Center 3,046 6,888 3,935 3,046 10,823 — 13,869 7,085 1997 1989 Miramar Land 13,980 — 29 13,981 28 — 14,009 5 2019 n/a Ocean View Corporate Center 6,577 7,105 2,007 6,577 9,112 — 15,689 4,779 2010 2005 Rocky Point Distribution Center 1 8,857 13,388 114 8,857 13,502 — 22,359 2,981 2019 2019 Rocky Point Distribution Center 2 7,623 11,614 1,426 7,623 13,040 — 20,663 2,099 2019 2019 Siempre Viva Distribution Center 1 4,628 9,211 409 4,628 9,620 — 14,248 1,766 2018 2003 Siempre Viva Distribution Center 2 2,868 5,694 157 2,877 5,842 — 8,719 925 2019 2002 Siempre Viva Distribution Center 3-6 31,815 100,861 612 31,815 101,473 — 133,288 9,893 2021 2001-2003 Speed Distribution Center 15,282 — 57,147 15,114 57,315 — 72,429 4,565 2019 2022 Sacramento Cebrian Distribution Center 2,360 13,488 655 2,360 14,143 — 16,503 1,216 2022 1975 Reed Distribution Center 5,887 28,195 516 5,887 28,711 — 34,598 2,295 2022 1990 TENNESSEE Nashville Park at Myatt 2,463 27,813 — 2,463 27,813 — 30,276 1,192 2023 2022 TEXAS Dallas Allen Station 1 & 2 5,815 17,612 2,235 5,815 19,847 — 25,662 5,645 2018 2001 Interstate Warehouse 1 & 2 1,746 4,941 4,817 1,746 9,758 — 11,504 8,328 1988 1978 Interstate Warehouse 3 519 2,008 1,744 519 3,752 — 4,271 2,962 2000 1979 Interstate Warehouse 4 416 2,481 953 416 3,434 — 3,850 2,296 2004 2002 Interstate Warehouse 5, 6, & 7 1,824 4,106 2,993 1,824 7,099 — 8,923 4,901 2009 1979/80/81 LakePort 1-3 2,984 — 22,689 2,984 22,689 — 25,673 4,224 2018 2020 LakePort 4 & 5 2,716 — 21,610 2,716 21,610 — 24,326 1,471 2018 2023 Logistics Center 6 & 7 — 12,605 3,225 — 15,830 1,451 17,281 3,427 2019 2018 Venture Warehouses 1,452 3,762 3,284 1,452 7,046 — 8,498 6,358 1988 1979 78 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total ParkView Commerce Center 1-3 2,663 — 19,234 2,663 19,234 — 21,897 6,251 2014 2015 Shady Trail Distribution Center 635 3,621 1,609 635 5,230 — 5,865 3,466 2003 1998 Valwood Distribution Center 4,361 34,405 6,104 4,361 40,509 — 44,870 17,021 2012 1986/87/97/98 Northfield Distribution Center 12,470 50,713 11,043 12,471 61,755 — 74,226 25,574 2013 1999-2001/03/04/08 CreekView 1 & 2 3,275 — 15,062 3,275 15,062 — 18,337 4,919 2015 2017 CreekView 3 & 4 2,600 — 13,842 2,600 13,842 — 16,442 4,259 2015 2018 CreekView 5 & 6 2,682 — 13,263 2,681 13,264 — 15,945 3,171 2016 2020 CreekView 7 & 8 2,640 — 15,299 2,640 15,299 — 17,939 2,759 2016 2020 CreekView 9 & 10 3,985 — 12,290 3,987 12,288 — 16,275 1,041 2020 2022 The Rock at Star Business Park 5,296 27,223 324 5,296 27,547 — 32,843 6,462 2020 2019 DFW Global Logistics Centre 1-4 — 86,564 1,535 — 88,099 10,163 98,262 10,275 2021 2014/15 DFW Global Logistics Centre 5-8 — 75,259 5 — 75,264 10,691 85,955 426 2024 2017/20 McKinney 1 & 2 3,419 — 24,103 3,419 24,103 — 27,522 627 2020 2023 McKinney 3 & 4 4,228 — 22,725 4,228 22,725 — 26,953 2,019 2020 2022 McKinney Logistics Center 6,899 18,216 71 6,899 18,287 — 25,186 992 2023 2022 Fort Worth Arlington Tech Centre 1 & 2 2,510 10,096 3,495 2,515 13,586 — 16,101 2,615 2019 2019 Arlington Tech Centre 3 1,725 — 8,408 1,725 8,408 — 10,133 437 2020 2023 Basswood 1 & 2 4,086 — 20,427 4,087 20,426 — 24,513 2,122 2019 2022 Parc North 1-4 4,615 26,358 8,266 4,615 34,624 — 39,239 10,364 2016 2016 Parc North 5 1,286 — 8,121 1,286 8,121 — 9,407 2,032 2016 2019 Parc North 6 1,233 — 9,706 1,233 9,706 — 10,939 2,248 2016 2019 Houston World Houston Int’l Business Ctr 1 & 2 660 5,893 3,435 660 9,328 — 9,988 6,064 1998 1996 World Houston Int’l Business Ctr 3 & 4 820 5,130 1,418 707 6,661 — 7,368 4,486 1998 1998 World Houston Int’l Business Ctr 6 425 2,423 1,068 425 3,491 — 3,916 2,368 1998 1998 World Houston Int’l Business Ctr 7 & 8 680 4,584 5,729 680 10,313 — 10,993 7,764 1998 1998 World Houston Int’l Business Ctr 9 800 4,355 3,123 800 7,478 — 8,278 4,622 1998 1998 World Houston Int’l Business Ctr 10 933 4,779 1,311 933 6,090 — 7,023 3,804 2001 1999 World Houston Int’l Business Ctr 11 638 3,764 1,826 638 5,590 — 6,228 3,860 1999 1999 79 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total World Houston Int’l Business Ctr 12 340 2,419 931 340 3,350 — 3,690 2,027 2000 2002 World Houston Int’l Business Ctr 13 282 2,569 1,146 282 3,715 — 3,997 2,645 2000 2002 World Houston Int’l Business Ctr 14 722 2,629 1,665 722 4,294 — 5,016 3,085 2000 2003 World Houston Int’l Business Ctr 15 249 — 2,878 249 2,878 — 3,127 1,767 2000 2007 World Houston Int’l Business Ctr 16 519 4,248 2,503 519 6,751 — 7,270 4,154 2000 2005 World Houston Int’l Business Ctr 17 373 1,945 1,119 373 3,064 — 3,437 1,842 2000 2004 World Houston Int’l Business Ctr 19 373 2,256 1,586 373 3,842 — 4,215 2,556 2000 2004 World Houston Int’l Business Ctr 20 1,008 1,948 2,238 1,008 4,186 — 5,194 3,119 2000 2004 World Houston Int’l Business Ctr 21 436 — 4,282 436 4,282 — 4,718 2,582 2000/03 2006 World Houston Int’l Business Ctr 22 436 — 4,706 436 4,706 — 5,142 2,849 2000 2007 World Houston Int’l Business Ctr 24 837 — 6,608 838 6,607 — 7,445 3,789 2005 2008 World Houston Int’l Business Ctr 25 508 — 4,655 508 4,655 — 5,163 2,582 2005 2008 World Houston Int’l Business Ctr 26 445 — 3,581 445 3,581 — 4,026 1,647 2005 2008 World Houston Int’l Business Ctr 27 837 — 5,797 838 5,796 — 6,634 3,181 2005 2008 World Houston Int’l Business Ctr 28 550 — 4,833 550 4,833 — 5,383 2,782 2005 2009 World Houston Int’l Business Ctr 29 782 — 4,185 974 3,993 — 4,967 1,968 2007 2009 World Houston Int’l Business Ctr 30 981 — 6,170 1,222 5,929 — 7,151 3,262 2007 2009 World Houston Int’l Business Ctr 31 684 — 4,824 684 4,824 — 5,508 2,400 2008 2011 World Houston Int’l Business Ctr 31B 546 — 3,744 546 3,744 — 4,290 1,842 2008 2012 World Houston Int’l Business Ctr 32 1,225 — 5,677 1,526 5,376 — 6,902 2,357 2007 2012 World Houston Int’l Business Ctr 33 1,166 — 8,285 1,166 8,285 — 9,451 3,294 2011 2013 World Houston Int’l Business Ctr 34 439 — 3,567 439 3,567 — 4,006 1,380 2005 2012 World Houston Int’l Business Ctr 35 340 — 2,580 340 2,580 — 2,920 917 2005 2012 World Houston Int’l Business Ctr 36 684 — 5,093 684 5,093 — 5,777 2,149 2011 2013 World Houston Int’l Business Ctr 37 759 — 6,895 759 6,895 — 7,654 2,823 2011 2013 World Houston Int’l Business Ctr 38 1,053 — 7,899 1,053 7,899 — 8,952 3,299 2011 2013 World Houston Int’l Business Ctr 39 620 — 5,314 621 5,313 — 5,934 1,796 2011 2014 World Houston Int’l Business Ctr 40 1,072 — 9,426 1,072 9,426 — 10,498 3,271 2011 2014 World Houston Int’l Business Ctr 41 649 — 6,120 649 6,120 — 6,769 2,103 2011 2014 World Houston Int’l Business Ctr 42 571 — 4,831 571 4,831 — 5,402 1,448 2011 2015 80 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total World Houston Int’l Business Ctr 43 443 — 6,137 443 6,137 — 6,580 1,423 2011 2019 World Houston Int’l Business Ctr 44 653 — 8,557 653 8,557 — 9,210 1,500 2011 2020 World Houston Int’l Business Ctr 45 3,243 — 13,745 3,243 13,745 — 16,988 2,448 2015 2019 World Houston Int'l Business Ctr 47 2,798 — 14,438 2,798 14,438 — 17,236 980 2015 2022 Glenmont Business Park 936 6,161 3,778 937 9,938 — 10,875 7,115 1998 1999/2000 Beltway Crossing Business Park 1 458 5,712 3,509 458 9,221 — 9,679 6,427 2002 2001 Beltway Crossing Business Park 2 415 — 3,292 415 3,292 — 3,707 1,900 2005 2007 Beltway Crossing Business Park 3 460 — 3,421 460 3,421 — 3,881 2,002 2005 2008 Beltway Crossing Business Park 4 460 — 3,413 460 3,413 — 3,873 1,989 2005 2008 Beltway Crossing Business Park 5 701 — 5,453 701 5,453 — 6,154 3,148 2005 2008 Beltway Crossing Business Park 6 618 — 6,475 618 6,475 — 7,093 3,176 2005 2008 Beltway Crossing Business Park 7 765 — 6,365 765 6,365 — 7,130 3,371 2005 2009 Beltway Crossing Business Park 8 721 — 5,830 721 5,830 — 6,551 3,060 2005 2011 Beltway Crossing Business Park 9 418 — 2,150 418 2,150 — 2,568 865 2007 2012 Beltway Crossing Business Park 10 733 — 4,133 733 4,133 — 4,866 1,644 2007 2012 Beltway Crossing Business Park 11 690 — 4,584 690 4,584 — 5,274 1,726 2007 2013 West Road Business Park 1 621 — 4,255 541 4,335 — 4,876 1,687 2012 2014 West Road Business Park 2 981 — 4,957 854 5,084 — 5,938 1,789 2012 2014 West Road Business Park 3 597 — 4,301 520 4,378 — 4,898 1,358 2012 2015 West Road Business Park 4 621 — 4,782 541 4,862 — 5,403 1,742 2012 2015 West Road Business Park 5 484 — 4,466 421 4,529 — 4,950 1,364 2012 2018 Ten West Crossing 1 566 — 3,143 566 3,143 — 3,709 1,325 2012 2013 Ten West Crossing 2 829 — 4,587 833 4,583 — 5,416 2,180 2012 2013 Ten West Crossing 3 609 — 4,589 613 4,585 — 5,198 1,971 2012 2013 Ten West Crossing 4 694 — 4,576 699 4,571 — 5,270 1,902 2012 2014 Ten West Crossing 5 933 — 6,332 940 6,325 — 7,265 2,290 2012 2014 Ten West Crossing 6 640 — 4,750 644 4,746 — 5,390 1,809 2012 2014 Ten West Crossing 7 584 — 5,531 589 5,526 — 6,115 2,153 2012 2015 Ten West Crossing 8 1,126 — 9,547 1,135 9,538 — 10,673 2,531 2012 2019 Northwest Crossing 1-3 5,665 — 20,458 5,665 20,458 — 26,123 3,496 2019 2020 81 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Grand West Crossing 1 2,733 — 10,969 2,726 10,976 — 13,702 672 2019 2022 Cypress Preserve 1 & 2 9,952 43,457 1,993 9,952 45,450 — 55,402 4,127 2022 2019 Springwood Business Park 1 & 2 6,208 — 28,629 6,214 28,623 — 34,837 540 2021 2023 El Paso Butterfield Trail — 20,725 11,186 — 31,911 2,472 34,383 25,031 1997/2000 1987/95 Rojas Commerce Park 900 3,659 4,492 900 8,151 — 9,051 6,508 1999 1986 Americas Ten Business Center 1 526 2,778 1,709 526 4,487 — 5,013 2,981 2001 2003 Americas Ten Business Center 2 2,516 — 11,863 2,518 11,861 — 14,379 1,030 2020 2022 San Antonio Alamo Downs Distribution Center 1,342 6,338 5,311 1,342 11,649 — 12,991 6,450 2004 1986/2002 Arion Business Park 1-13, 15 4,143 31,432 12,161 4,143 43,593 — 47,736 26,846 2005 1988-2000/06 Arion Business Park 14 423 — 3,996 423 3,996 — 4,419 2,415 2005 2006 Arion Business Park 16 427 — 3,866 427 3,866 — 4,293 2,111 2005 2007 Arion Business Park 17 616 — 4,595 616 4,595 — 5,211 3,126 2005 2007 Arion Business Park 18 418 — 2,476 418 2,476 — 2,894 1,448 2005 2008 Wetmore Business Center 1-4 1,494 10,804 4,923 1,494 15,727 — 17,221 10,110 2005 1998/99 Wetmore Business Center 5 412 — 3,927 412 3,927 — 4,339 2,414 2006 2008 Wetmore Business Center 6 505 — 4,273 505 4,273 — 4,778 2,416 2006 2008 Wetmore Business Center 7 546 — 5,466 546 5,466 — 6,012 3,080 2006 2008 Wetmore Business Center 8 1,056 — 9,154 1,056 9,154 — 10,210 4,604 2006 2008 Fairgrounds Business Park 1,644 8,209 2,988 1,644 11,197 — 12,841 7,018 2007 1985/86 Rittiman Distribution Center 1,083 6,649 2,020 1,083 8,669 — 9,752 2,919 2011 2000 Thousand Oaks Distribution Center 1 607 — 5,673 607 5,673 — 6,280 2,641 2008 2012 Thousand Oaks Distribution Center 2 794 — 4,904 794 4,904 — 5,698 2,070 2008 2012 Thousand Oaks Distribution Center 3 772 — 4,707 772 4,707 — 5,479 2,015 2008 2013 Thousand Oaks Distribution Center 4 753 — 5,696 753 5,696 — 6,449 1,819 2013 2015 Alamo Ridge Business Park 1 623 — 8,590 623 8,590 — 9,213 3,673 2007 2015 Alamo Ridge Business Park 2 402 — 5,431 402 5,431 — 5,833 2,030 2007 2015 Alamo Ridge Business Park 3 907 — 10,207 907 10,207 — 11,114 2,875 2007 2017 Alamo Ridge Business Park 4 354 — 7,880 355 7,879 — 8,234 2,927 2007 2017 Eisenhauer Point Business Park 1 & 2 1,881 — 14,820 1,881 14,820 — 16,701 4,945 2015 2016 82 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Eisenhauer Point Business Park 3 577 — 6,148 577 6,148 — 6,725 2,116 2015 2017 Eisenhauer Point Business Park 4 555 — 4,886 555 4,886 — 5,441 1,461 2015 2017 Eisenhauer Point Business Park 5 818 — 7,170 818 7,170 — 7,988 2,023 2015 2018 Eisenhauer Point Business Park 6 569 — 4,869 569 4,869 — 5,438 1,044 2015 2018 Eisenhauer Point Business Park 7 & 8 1,000 — 22,589 2,593 20,996 — 23,589 5,047 2016 2019 Eisenhauer Point Business Park 9 632 — 5,753 632 5,753 — 6,385 1,072 2016 2019 Tri-County Crossing 1 & 2 1,623 — 14,938 1,623 14,938 — 16,561 4,180 2017 2019 Tri-County Crossing 3 & 4 1,733 — 14,549 1,733 14,549 — 16,282 3,176 2017 2020 Tri-County Crossing 5 871 — 10,419 871 10,419 — 11,290 1,156 2017 2022 Tri-County Crossing 6 1,033 — 9,590 1,033 9,590 — 10,623 1,094 2017 2022 Ridgeview 1 & 2 2,004 — 18,924 2,004 18,924 — 20,928 3,685 2018 2020 Ridgeview 3 839 — 8,564 839 8,564 — 9,403 764 2018 2022 Austin 45 Crossing 10,028 — 15,336 10,028 15,336 — 25,364 1,368 2021 2022 Colorado Crossing Distribution Center 4,602 19,757 2,157 4,594 21,922 — 26,516 9,501 2014 2009 Greenhill Distribution Center 802 3,273 733 802 4,006 — 4,808 872 2018 1999 Settlers Crossing 1 1,211 — 8,720 1,211 8,720 — 9,931 2,193 2017 2019 Settlers Crossing 2 1,306 — 8,107 1,306 8,107 — 9,413 2,259 2017 2019 Settlers Crossing 3 & 4 2,774 — 18,486 2,774 18,486 — 21,260 3,086 2017 2020 Southpark Corporate Center 3 & 4 2,670 14,756 2,119 2,670 16,875 — 19,545 6,518 2015 1995 Southpark Corporate Center 5-7 1,301 7,589 1,881 1,301 9,470 — 10,771 2,626 2017 1995 Springdale Business Center 2,824 8,398 2,283 2,824 10,681 — 13,505 3,559 2015 2000 Wells Point One 907 4,904 1,194 907 6,098 — 7,005 1,687 2020 2001 Hays Commerce Center 3 & 4 6,527 28,846 19 6,527 28,865 — 35,392 455 2024 2022 Stonefield 35 1-3 6,031 — 30,965 5,985 31,011 — 36,996 772 2021 2023 ARIZONA Phoenix area Broadway Industrial Park 1 837 3,349 3,070 837 6,419 — 7,256 5,032 1996 1971 Broadway Industrial Park 2 455 482 430 455 912 — 1,367 680 1999 1971 Broadway Industrial Park 3 775 1,742 1,175 775 2,917 — 3,692 2,044 2000 1983 83 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Broadway Industrial Park 4 380 1,652 1,188 380 2,840 — 3,220 2,093 2000 1986 Broadway Industrial Park 5 353 1,090 906 353 1,996 — 2,349 1,407 2002 1980 Broadway Industrial Park 6 599 1,855 1,600 599 3,455 — 4,054 2,209 2002 1979 Broadway Industrial Park 7 450 650 376 450 1,026 — 1,476 477 2011 1999 Kyrene Distribution Center 1,490 4,453 3,065 1,490 7,518 — 9,008 5,258 1999 1981/2001 Falcon Field Business Center 1,312 — 8,123 1,312 8,123 — 9,435 2,257 2015 2018 Southpark Distribution Center 918 2,738 1,991 918 4,729 — 5,647 3,457 2001 2000 Southpark Distribution Center 2 1,785 6,882 1,600 1,785 8,482 — 10,267 963 2021 1995 Santan 10 Distribution Center 1 846 2,647 727 846 3,374 — 4,220 2,132 2001 2005 Santan 10 Distribution Center 2 1,088 — 5,575 1,088 5,575 — 6,663 3,248 2004 2007 Chandler Freeways 1,525 — 7,537 1,525 7,537 — 9,062 2,824 2012 2013 Kyrene 202 Business Park 1 653 — 5,919 653 5,919 — 6,572 1,990 2011 2014 Kyrene 202 Business Park 2 387 — 3,484 387 3,484 — 3,871 1,214 2011 2014 Kyrene 202 Business Park 3, 4 & 5 1,244 — 12,377 1,244 12,377 — 13,621 3,019 2011 2018 Kyrene 202 Business Park 6 936 — 8,462 936 8,462 — 9,398 2,825 2011 2015 51st Avenue Distribution Center 300 2,029 1,779 300 3,808 — 4,108 2,679 1998 1987 East University Distribution Center 1 & 2 1,120 4,482 2,450 1,120 6,932 — 8,052 5,850 1998 1987/89 East University Distribution Center 3 444 698 650 444 1,348 — 1,792 786 2010 1981 55th Avenue Distribution Center 912 3,717 2,729 917 6,441 — 7,358 4,977 1998 1987 Interstate Commons Distribution Center 1 311 1,416 1,310 311 2,726 — 3,037 1,991 1999 1988 Interstate Commons Distribution Center 2 2,298 7,088 3,097 2,298 10,185 — 12,483 1,931 2019 1988/2001 Interstate Commons Distribution Center 3 242 — 3,329 242 3,329 — 3,571 1,678 2000 2008 Airport Commons Distribution Center 1,000 1,510 2,071 1,000 3,581 — 4,581 2,756 2003 1971 40th Avenue Distribution Center 703 — 6,704 703 6,704 — 7,407 3,206 2004 2008 Sky Harbor Business Park 5,839 — 24,184 5,839 24,184 — 30,023 11,471 2006 2008 Sky Harbor Business Park 6 807 — 2,177 807 2,177 — 2,984 647 2014 2015 Ten Sky Harbor Business Center 1,568 — 5,236 1,569 5,235 — 6,804 1,849 2015 2016 Gilbert Crossroads A & B 2,825 — 14,164 2,825 14,164 — 16,989 2,992 2018 2020 Gilbert Crossroads C & D 3,602 — 19,969 3,602 19,969 — 23,571 4,477 2018 2021 Mesa Gateway Commerce Center 3,514 14,801 3,763 3,514 18,564 — 22,078 1,207 2022 2022 Akimel Gateway — 82,906 — — 82,906 11,020 93,926 350 2024 2022 84 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Tucson Country Club Commerce Center 1 506 3,564 4,704 693 8,081 — 8,774 5,039 1997/2003 1994/2003 Country Club Commerce Center 2 442 3,381 1,473 709 4,587 — 5,296 2,135 2007 2000 Country Club Commerce Center 3 & 4 1,407 — 13,565 1,575 13,397 — 14,972 6,532 2007 2009 Country Club Commerce Center 5 2,885 — 21,848 2,886 21,847 — 24,733 4,532 2016 2018 Airport Distribution Center 1,403 4,672 3,281 1,403 7,953 — 9,356 4,895 1998/2000 1995 Benan Distribution Center 707 1,842 873 707 2,715 — 3,422 1,828 2005 2001 NORTH CAROLINA Charlotte area NorthPark Business Park 2,758 15,932 6,573 2,758 22,505 — 25,263 13,881 2006 1987-89 Lindbergh Business Park 470 3,401 1,275 470 4,676 — 5,146 2,601 2007 2001/03 Commerce Park Center 1 765 4,303 1,152 765 5,455 — 6,220 3,149 2007 1983 Commerce Park Center 2 335 1,603 634 335 2,237 — 2,572 1,139 2010 1987 Commerce Park Center 3 558 2,225 1,383 558 3,608 — 4,166 1,923 2010 1981 Nations Ford Business Park 3,924 16,171 7,079 3,924 23,250 — 27,174 13,966 2007 1989/94 Airport Commerce Center 1,454 10,136 3,321 1,454 13,457 — 14,911 7,188 2008 2001/02 Airport Commerce Center 3 855 — 8,297 855 8,297 — 9,152 2,163 2008 2019 Interchange Park 1 986 7,949 798 986 8,747 — 9,733 4,324 2008 1989 Interchange Park 2 746 1,456 410 746 1,866 — 2,612 781 2013 2000 Ridge Creek Distribution Center 1 1,284 13,163 1,471 1,284 14,634 — 15,918 6,848 2008 2006 Ridge Creek Distribution Center 2 3,033 11,497 2,405 3,033 13,902 — 16,935 6,033 2011 2003 Ridge Creek Distribution Center 3 2,459 11,147 823 2,459 11,970 — 14,429 3,865 2014 2013 Lakeview Business Center 1,392 5,068 1,727 1,392 6,795 — 8,187 2,911 2011 1996 Steele Creek 1 993 — 4,339 1,010 4,322 — 5,332 1,892 2013 2014 Steele Creek 2 941 — 4,937 957 4,921 — 5,878 2,012 2013 2014 Steele Creek 3 1,464 — 7,248 1,469 7,243 — 8,712 2,619 2013 2014 Steele Creek 4 684 — 4,145 687 4,142 — 4,829 1,557 2013 2015 Steele Creek 5 610 — 5,362 631 5,341 — 5,972 1,117 2013/14/15 2019 Steele Creek 6 867 — 7,693 919 7,641 — 8,560 2,163 2013/14 2016 Steele Creek 7 1,207 — 8,467 1,253 8,421 — 9,674 2,212 2013/14/15 2017 85 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Steele Creek 8 544 — 7,826 673 7,697 — 8,370 609 2016/17 2022 Steele Creek 9 949 — 10,427 1,090 10,286 — 11,376 2,311 2016 2019 Steele Creek 10 1,221 — 10,418 1,509 10,130 — 11,639 1,153 2016 2021 Steele Creek 11 & 12 1,866 — 25,049 1,866 25,049 — 26,915 1,409 2016/17 2023 Waterford Distribution Center 654 3,392 967 654 4,359 — 5,013 2,237 2008 2000 Raleigh 147 Exchange 9,396 40,532 11 9,396 40,543 — 49,939 893 2024 2023 SOUTH CAROLINA Greenville 385 Business Park 1,308 10,822 529 1,308 11,351 — 12,659 2,474 2019 2019 Access Point 1 884 9,606 2,933 893 12,530 — 13,423 2,249 2021 2021 Access Point 2 1,010 9,604 1,729 1,012 11,331 — 12,343 1,156 2021 2021 Access Point 3 1,335 19,339 4,310 1,335 23,649 — 24,984 1,741 2022 2022 Pelzer Point Commerce Center 1 1,308 19,433 3,476 1,308 22,909 — 24,217 648 2023 2021 Hillside 1 498 — 12,686 499 12,685 — 13,184 432 2021 2023 GEORGIA Atlanta Shiloh 400 Business Center 1 & 2 3,092 14,216 3,568 3,064 17,812 — 20,876 5,164 2017 2008 Broadmoor Commerce Park 1 1,307 3,560 1,542 1,307 5,102 — 6,409 1,659 2017 1999 Broadmoor Commerce Park 2 519 — 7,429 519 7,429 — 7,948 1,797 2017 2018 Hurricane Shoals 1 & 2 4,284 12,449 4,458 4,284 16,907 — 21,191 4,953 2017 2017 Hurricane Shoals 3 497 — 9,842 644 9,695 — 10,339 1,365 2017 2020 Progress Center 1 & 2 1,297 9,015 523 1,297 9,538 — 10,835 3,086 2017 2017 Progress Center 3 465 4,285 53 465 4,338 — 4,803 444 2021 2008 Gwinnett 316 531 3,617 21 531 3,638 — 4,169 692 2018 1990 Cherokee 75 Business Center 1 1,183 6,727 18 1,183 6,745 — 7,928 1,034 2020 2020 Cherokee 75 Business Center 2 1,336 7,495 538 1,337 8,032 — 9,369 885 2021 2021 Northpoint 200 1,102 5,140 649 1,104 5,787 — 6,891 950 2021 2021 I-20 West Business Center 1,670 — 13,485 1,647 13,508 — 15,155 699 2021 2023 Riverpoint Industrial Park 7,037 79,205 1 7,037 79,206 — 86,243 474 2024 2020 86 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total LOUISIANA New Orleans Elmwood Business Park 2,861 6,337 6,520 2,861 12,857 — 15,718 10,459 1997 1979 Riverbend Business Park 2,557 17,623 12,615 2,557 30,238 — 32,795 21,270 1997 1984 COLORADO Denver Airways Business Center 6,137 39,637 1,599 6,137 41,236 — 47,373 7,286 2019 2007/08 Rampart Distribution Center 1 1,023 3,861 2,625 1,023 6,486 — 7,509 5,790 1988 1987 Rampart Distribution Center 2 230 2,977 1,589 230 4,566 — 4,796 3,768 1996/97 1997 Rampart Distribution Center 3 1,098 3,884 2,852 1,098 6,736 — 7,834 4,880 1997/98 1999 Rampart Distribution Center 4 590 — 8,346 590 8,346 — 8,936 2,727 2012 2014 Concord Distribution Center 1,051 4,773 1,345 1,051 6,118 — 7,169 3,316 2007 2000 Centennial Park 750 3,319 2,156 750 5,475 — 6,225 2,836 2007 1990 NEVADA Las Vegas Arville Distribution Center 4,933 5,094 1,488 4,933 6,582 — 11,515 3,233 2009 1997 Jones Corporate Park 13,068 26,325 3,288 13,068 29,613 — 42,681 7,203 2016 2016 Southwest Commerce Center 9,008 16,576 4,557 9,008 21,133 — 30,141 3,764 2019 2019 Blue Diamond Business Park 20,093 31,119 14 20,093 31,133 — 51,226 1,141 2023 2022 Craig Corporate Center 13,913 18,848 63 13,913 18,911 — 32,824 910 2023 2018 Spanish Ridge Industrial Park 18,855 33,211 285 18,855 33,496 — 52,351 1,128 2024 2023 MISSISSIPPI Jackson area Tower Automotive — 9,958 1,959 17 11,900 — 11,917 7,232 2001 2002 885,762 2,249,958 2,329,331 888,140 4,576,911 38,393 5,503,444 1,414,720 87 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Development and Value-Add Properties (d): CALIFORNIA Reed Land 1,800 — 864 1,800 864 — 2,664 — 2022 n/a FLORIDA Horizon Commerce Park Land 650 — 426 650 426 — 1,076 — 2008/09 n/a Gateway Commerce Park Land 2,350 — 5,470 4,665 3,155 — 7,820 — 2016 n/a SunCoast Commerce Center 9 1,011 — 14,619 1,011 14,619 — 15,630 — 2020 2024 SunCoast Commerce Land 961 — 3,309 3,317 953 — 4,270 — 2020 n/a Horizon West 5 1,165 — 8,517 1,165 8,517 — 9,682 — 2020 2024 Horizon West 6 1,188 — 10,551 1,188 10,551 — 11,739 176 2020 2024 Horizon West Land 5,003 — 7,215 5,004 7,214 — 12,218 — 2020 n/a Gateway South Dade 1 & 2 6,700 — 26,513 6,700 26,513 — 33,213 — 2022 2024 Gateway South Dade Land 9,089 — 9,361 9,089 9,361 — 18,450 — 2022 n/a Lakeside Station Land 6,847 — 897 6,852 892 — 7,744 — 2023 n/a Crossroads Logistics Park 1 3,758 — 12,876 3,758 12,876 — 16,634 — 2023 n/a Crossroads Logistics Park 2 6,151 — 5,593 6,151 5,593 — 11,744 — 2023 n/a Crossroads Logistics Park Land 5,237 — 3,469 5,238 3,468 — 8,706 — 2023 n/a TENNESSEE Station 24 Commerce Center Land 10,460 — 124 10,460 124 — 10,584 — 2024 n/a TEXAS World Houson Int'l Business Ctr 46 825 — 9,124 920 9,029 — 9,949 — 2011 n/a World Houston Golf Course Land 811 — 1,360 904 1,267 — 2,171 — 2011 n/a Ridgeview Land 430 — 451 430 451 — 881 — 2018 n/a Basswood 3-5 5,671 — 41,751 5,672 41,750 — 47,422 178 2019 2024 Basswood Land 4,738 — 3,186 4,738 3,186 — 7,924 — 2019 n/a Grand West Crossing 2 1,630 — 1,233 1,630 1,233 — 2,863 — 2019 n/a Grand West Crossing Land 4,394 — 2,335 4,394 2,335 — 6,729 — 2019 n/a McKinney Land 4,593 — 136 4,593 136 — 4,729 — 2020 n/a Texas Avenue 1 & 2 4,143 — 9,983 4,161 9,965 — 14,126 — 2021 n/a Heritage Grove Land 15,295 — 3,006 15,352 2,949 — 18,301 — 2022 n/a Cypress Preserve Land 14,724 — 3,065 14,724 3,065 — 17,789 — 2022 n/a Eisenhauer Point Business Park 10-12 4,894 — 23,420 4,894 23,420 — 28,314 290 2022 2024 Eisenhauer Point 13-14 Land 2,742 — 695 2,746 691 — 3,437 — 2022 n/a 88 SCHEDULE III REAL ESTATE PROPERTIES AND ACCUMULATED DEPRECIATION DECEMBER 31, 2024 (In thousands, except footnotes) Description Initial Cost to the Company Costs Capitalized Subsequent to Acquisition Gross Amount Carried at Close of Period Accumulated Depreciation Year Acquired Year Constructed Land Buildings and Improvements Land Buildings and Improvements Right of Use Assets (e) Total Cameron Land 30,776 — 3,595 30,772 3,599 — 34,371 — 2022 n/a Northeast Trade Center 1 2,412 — 22,590 2,412 22,590 — 25,002 — 2023 n/a Northeast Trade Center Land 3,765 — 3,090 3,765 3,090 — 6,855 — 2023 n/a Denton 35 Exchange 1 & 2 5,690 — 22,373 5,690 22,373 — 28,063 — 2023 n/a Basswood North Land 23,996 — 1,598 24,004 1,590 — 25,594 — 2023 n/a COLORADO Arista 36 Business Park 1-3 5,878 — 38,918 5,878 38,918 — 44,796 — 2023 n/a ARIZONA Gateway Interchange A & B 3,239 — 1,503 3,239 1,503 — 4,742 — 2022/2023 n/a Gateway Interchange F & G 5,286 — 2,347 5,287 2,346 — 7,633 — 2022/2023 n/a Gateway Interchange Land 9,793 — 1,142 9,793 1,142 — 10,935 — 2022/2023 n/a NORTH CAROLINA Skyway Logistics Park 1 & 2 3,744 — 27,949 3,744 27,949 — 31,693 — 2021 n/a Skyway Logistics Park Land 8,294 — 4,848 8,188 4,954 — 13,142 — 2021 n/a SOUTH CAROLINA Hillside 2 546 — 2,388 547 2,387 — 2,934 — 2021 n/a Hillside Land 549 — 2,285 549 2,285 — 2,834 — 2021 n/a Hillside 4 Land 1,280 — 327 1,280 327 — 1,607 — 2022 n/a Pelzer Point Commerce Center 2 Land 1,103 1,097 129 1,102 1,227 — 2,329 — 2023 n/a GEORGIA Cass White 1 & 2 2,923 — 29,681 2,923 29,681 — 32,604 — 2021 2024 Riverside Parkway 1 & 2 1,955 — 29,571 1,958 29,568 — 31,526 212 2021 2024 Braselton Commerce Center 3 1,425 — 12,334 1,575 12,184 — 13,759 — 2022 2024 Braselton Land 4,048 — 995 4,057 986 — 5,043 — 2022 n/a Greenway Land 5,785 — 2,929 5,785 2,929 — 8,714 — 2022 n/a Brightstar Land 3,302 — 185 3,315 172 — 3,487 — 2024 n/a 253,049 1,097 420,326 258,069 416,403 — 674,472 856 Total real estate owned (a)(b) $ 1,138,811 2,251,055 2,749,657 1,146,209 4,993,314 38,393 6,177,916 1,415,576 89 (a) Changes in Real Estate Properties and Development and Value-Add Properties follow: Years Ended December 31, 2024 2023 2022 (In thousands) Balance at beginning of year $ 5,493,195 4,934,421 4,051,325 Purchases of real estate properties 381,774 160,105 353,221 Development of real estate properties and value-add properties 245,033 388,213 506,154 Improvements to real estate properties 60,007 51,643 40,654 Right-of-use assets, net – ground leases 20,397 ( 1,395 ) ( 3,244 ) Carrying amount of investments sold ( 18,633 ) ( 33,022 ) ( 9,811 ) Write-off of improvements ( 3,857 ) ( 6,770 ) ( 3,878 ) Balance at end of year (1) $ 6,177,916 5,493,195 4,934,421 (1) Includes noncontrolling interest in joint ventures of $ 924,000 , $ 774,000 and $ 700,000 at December 31, 2024, 2023 and 2022, respectively. Changes in the accumulated depreciation on real estate properties follow: Years Ended December 31, 2024 2023 2022 (In thousands) Balance at beginning of year $ 1,273,723 1,150,814 1,035,617 Depreciation expense 155,240 141,003 125,199 Accumulated depreciation on assets sold ( 10,268 ) ( 11,759 ) ( 6,068 ) Other ( 3,119 ) ( 6,335 ) ( 3,934 ) Balance at end of year $ 1,415,576 1,273,723 1,150,814 (b) The estimated aggregate cost of real estate properties at December 31, 2024 for federal income tax purposes was approximately $ 5,836,498,000 before estimated accumulated tax depreciation of $ 1,062,930,000 . The federal income tax return for the year ended December 31, 2024, has not been filed and accordingly, this estimate is based on preliminary data. (c) The Company computes depreciation using the straight-line method over the estimated useful lives of the buildings (generally 40 years) and improvements (generally 3 to 15 years). (d) The Company transfers properties from the development and value-add program to Real estate properties as follows: (i) for development properties, at the earlier of 90% occupancy or one year after completion of the shell construction, and (ii) for value-add properties, at the earlier of 90% occupancy or one year after acquisition. Upon the earlier of 90% occupancy or one year after completion of the shell construction, capitalization of development costs, including interest expense, property taxes and internal personnel costs, ceases and depreciation commences on the entire property (excluding the land). (e) The right of use assets for ground leases, net of accumulated amortization, are included in Real Estate Properties on the Consolidated Balance Sheets. 90 ITEM 16. FORM 10-K SUMMARY. None. 91 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. EASTGROUP PROPERTIES, INC. By: /s/ MARSHALL A. LOEB Marshall A. Loeb, Chief Executive Officer, President and Director February 12, 2025 We, the undersigned officers and directors of EastGroup Properties, Inc., hereby severally constitute and appoint Brent W. Wood as our true and lawful attorney, with full power to sign for us and in our names in the capacities indicated below, any and all amendments to this Annual Report on Form 10-K and generally to do all such things in our name and behalf in such capacity to enable EastGroup Properties, Inc. to comply with the applicable provisions of the Securities Exchange Act of 1934, as amended, and we hereby ratify and confirm our signatures as they may be signed by our said attorney to any and all such amendments. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. /s/ D. Pike Aloian /s/ H. Eric Bolton, Jr. D. Pike Aloian, Director H. Eric Bolton, Jr., Director February 12, 2025 February 12, 2025 /s/ Donald F. Colleran /s/ David M. Fields Donald F. Colleran, Director David M. Fields, Director February 12, 2025 February 12, 2025 /s/ Mary Elizabeth McCormick /s/ Katherine M. Sandstrom Mary Elizabeth McCormick, Director Katherine M. Sandstrom, Director February 12, 2025 February 12, 2025 92 /s/ MARSHALL A. LOEB Marshall A. Loeb, Chief Executive Officer, President and Director (Principal Executive Officer) February 12, 2025 /s/ STACI H. TYLER Staci H. Tyler, Executive Vice-President, Chief Accounting Officer and Chief Administrative Officer (Principal Accounting Officer) February 12, 2025 /s/ BRENT W. WOOD Brent W. Wood, Executive Vice-President, Chief Financial Officer and Treasurer (Principal Financial Officer) February 12, 2025 93