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Item 1. Financial Statements

2025-04-23 compared with 2024-10-24 · 169 added, 275 removed, 523 unchanged (46% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

September 30,

2025 December 31,

(In thousands, except share and per share data)

Real estate properties $ 5,565,764 5,503,444

17 unchanged sentences

70,000,000 shares authorized;

49,206,050 shares issued

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

52,265,432 shares

issued and outstanding at March 31, 2025 and 51,825,798 at December 31, 2024

Excess shares;

13 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended

(In thousands, except per share data)

Three Months Ended Nine Months Ended

September 30, September 30,

2024 2023 2024 2023

Income from real estate operations $ 172,644 154,074

16 unchanged sentences

TOTAL COMPREHENSIVE INCOME $ 52,496 64,538

BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.

BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO

EASTGROUP PROPERTIES, INC.

COMMON STOCKHOLDERS

9 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

For the nine months ended September 30, 2024:

For the three months ended March 31, 2025:

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, 2024 $ 5 3,673,393 ( 403,172 ) 21,953 365 3,292,544

17 unchanged sentences

Net distributions to noncontrolling interest — — — — ( 92 ) ( 92 )

Contributions from noncontrolling interest — — — — 62 62

BALANCE, MARCH 31, 2025 $ 5 3,746,897 ( 417,058 ) 15,026 287 3,345,157

Net income — — 55,287 — 14 55,301

Net unrealized change in fair value of interest rate swaps — — — ( 1,095 ) — ( 1,095 )

Common dividends declared — $ 1.27 per

— — ( 61,889 ) — — ( 61,889 )

Stock-based compensation, net of forfeitures

— 2,644 — — — 2,644

Issuance of 639,299 shares of common

stock, common stock offering, net of expenses

— 112,710 — — — 112,710

Withheld 57 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock

— ( 10 ) — — — ( 10 )

Net distributions to noncontrolling interest — — — — ( 73 ) ( 73 )

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

Net income — — 55,180 — 14 55,194

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

Common dividends declared — $ 1.40 per

— — ( 68,898 ) — — ( 68,898 )

Stock-based compensation, net of forfeitures

— 3,012 — — — 3,012

Issuance of 540,252 shares of common

stock, common stock offering, net of

— 92,210 — — — 92,210

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

— ( 3 ) — — — ( 3 )

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

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

See accompanying Notes to Consolidated Financial Statements (unaudited).

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

For the nine months ended September 30, 2023:

For the three months ended March 31, 2024:

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, 2023 $ 5 2,949,907 ( 366,473 ) 24,888 307 2,608,634

17 unchanged sentences

Net distributions to noncontrolling interest — — — — ( 67 ) ( 67 )

Contributions from noncontrolling interest — — — — 62 62

BALANCE, MARCH 31, 2024 $ 5 2,997,210 ( 368,954 ) 30,782 316 2,659,359

Net income — — 43,450 — 15 43,465

Net unrealized change in fair value of interest rate swaps — — — 10,202 — 10,202

Common dividends declared — $ 1.25 per

— — ( 56,762 ) — — ( 56,762 )

Stock-based compensation, net of forfeitures

— 2,771 — — — 2,771

Issuance of 1,065,678 shares of common stock, common stock offering, net of expenses

— 177,749 — — — 177,749

Net distributions to noncontrolling interest — — — — ( 86 ) ( 86 )

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

Net income — — 48,896 — 14 48,910

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

Common dividends declared — $ 1.27 per

— — ( 59,154 ) — — ( 59,154 )

Stock-based compensation, net of forfeitures

— 2,766 — — — 2,766

Issuance of 953,070 shares of common

stock, common stock offering, net of

— 167,315 — — — 167,315

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

— ( 13 ) — — — ( 13 )

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

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

See accompanying Notes to Consolidated Financial Statements (unaudited).

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

(In thousands)

Nine Months Ended September 30,

OPERATING ACTIVITIES

24 unchanged sentences

Repayments on unsecured bank credit facilities ( 12,406 ) ( 19,564 )

Proceeds from unsecured debt — 100,000

Repayments on unsecured debt ( 50,000 ) —

Repayments on secured debt — ( 1,970 )

Debt issuance costs ( 91 ) ( 15 )

3 unchanged sentences

Other ( 4,161 ) ( 6,143 )

NET CASH PROVIDED BY FINANCING ACTIVITIES 10,797 89,678

NET CASH USED IN FINANCING ACTIVITIES ( 54,608 ) ( 18,306 )

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,986 ( 24,638 )

18 unchanged sentences

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

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

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

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

As of March 31, 2025 and December 31, 2024, EastGroup held a controlling interest in two joint venture arrangements.

The Company 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.

The Company also had a 99.5 % controlling interest in a joint venture arrangement owning a property in Denver, known by the Company as Arista 36 Business Park 1-3.

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

6 unchanged sentences

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

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

The table below presents the components of Income from real estate operations for the three months ended March 31, 2025 and 2024:

Three Months Ended

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

(In thousands)

6 unchanged sentences

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

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 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 .

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

During the three month periods ended March 31, 2025 and 2024, the Company did not identify any impairment charges which should be recorded.

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

1 unchanged sentence

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

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

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

September 30,

Depreciation expense was $ 42,308,000 and $ 37,205,000 for the three months ended March 31, 2025 and 2024, respectively.

The Company’s Real estate properties and Development and value-add properties at March 31, 2025 and December 31, 2024 were as follows:

2025 December 31,

18 unchanged sentences

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

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

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

Properties qualifying under these conditions are included in Development and value-add properties in the quarter in which (1) they are acquired, if condition 1 above is met, or (2) when construction to redevelop begins.

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.

3 unchanged sentences

The Company transfers properties from Development and value-add propertie s to Real estate properties as follows:

(1) for development properties, at the earlier of 90% occupancy or one year after completion of the shell construction, and (2) 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/value-add acquisition date, capitalization of development costs, including interest expense, property taxes and internal personnel costs, ceases and depreciation commences on the entire property (excluding the land).

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(7) REAL ESTATE PROPERTY ACQUISITIONS AND ACQUIRED INTANGIBLES

4 unchanged sentences

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

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

EastGroup determined that its real estate property acquisitions in 2024 are considered to be acquisitions of groups of similar identifiable assets;

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

As a result, the Company capitalized acquisition costs related to its 2023 and 2024 acquisitions.

As a result, the Company capitalized acquisition costs related to its 2024 acquisitions.

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

7 unchanged sentences

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.

In-place lease intangibles are valued based upon management’s assessment of factors such as an estimate of forgone 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 terms of the existing leases.

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

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

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

REAL ESTATE PROPERTIES ACQUIRED IN 2024

Location Size Date

Acquired Cost (1)

(Square feet) (In thousands)

Operating properties acquired (2)(3)

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

Total operating property acquisitions 684,000 $ 143,585

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

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

included in Real estate properties on the Consolidated Balance Sheets.

(3) Excludes acquired development land as discussed below.

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

Net amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $ 1,567,000 and $ 607,000 for the three months ended March 31, 2025 and 2024, respectively.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 3,218,000 and $ 1,926,000 for the three months ended March 31, 2025 and 2024, respectively.

There were no acquisitions during the three months ended March 31, 2025.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which were acquired during the nine months ended September 30, 2024.

ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2024

(In thousands)

Land $ 34,778

Buildings and building improvements 96,218

Tenant and other improvements 6,371

Total real estate properties acquired 137,367

In-place lease intangibles (1)

Above market lease intangibles (1)

Below market lease intangibles (2)

Total assets acquired, net of liabilities assumed $ 143,585

(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.

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

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

During 2024, EastGroup acquired the following properties:

4 unchanged sentences

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

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)(4)

2,474,000 $ 390,011

(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.

The right of use assets for ground leases are included in Real estate properties on the Consolidated Balance Sheets.

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

1 unchanged sentence

(4) Excludes acquired development land as discussed below.

There were no value-add acquisitions during the year ended December 31, 2023.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

There were no value-add property acquisitions during the year ended December 31, 2024.

4 unchanged sentences

Tenant and other improvements 27,049

Right of use assets — Ground leases (operating) 21,836

Total real estate properties acquired 403,611

In-place lease intangibles (1)

Above market lease intangibles (1)

Below market lease intangibles (2)

Operating lease liabilities — Ground leases (3)

Total assets acquired, net of liabilities assumed $ 390,011

3 unchanged sentences

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 the year ended December 31, 2024 had a weighted average remaining lease term at acquisition of approximately 4.1 years.

Also during 2023, EastGroup purchased 328.3 acres of development land in seven markets for $ 70,664,000 .

Also during 2024, EastGroup purchased 61.1 acres of development land in two markets for $ 13,762,000 .

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

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

No impairment of goodwill or other intangibles existed during the three month periods ended March 31, 2025 and 2024.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(8) REAL ESTATE SOLD AND HELD FOR SALE

1 unchanged sentence

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

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

The Company did not classify any properties as held for sale as of March 31, 2025 and December 31, 2024.

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

3 unchanged sentences

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

EastGroup had no operating property sales during the three months ended March 31, 2025.

During the year ended December 31, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet, generating net sales proceeds of $ 13,614,000 .

The Company recognized $ 8,751,000 in Gain on sales of real estate investments during the year ended December 31, 2024.

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 .

The Company did not sell any land during three months ended March 31, 2025.

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

The Company did not consider its sales in 2024 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.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

(Square feet) (In thousands)

Interchange Business Park and

Metro Airport Commerce Center

Jackson, MS 159,000 03/05/2024 $ 13,614 4,863 8,751

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

The table above includes sales of operating properties.

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

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

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

The Company did not consider its sales in 2024 or 2023 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.

(9) OTHER ASSETS

A summary of the Company’s Other assets follows:

September 30,

2025 December 31,

20 unchanged sentences

$ 284,752 290,159

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company’s debt is detailed below:

September 30,

2025 December 31,

9 unchanged sentences

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

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 September 30, 2024, was Secured Overnight Financing Rate (“SOFR”) plus 76.5 basis points with an annual facility fee of 15 basis points.

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

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

The interest rate on each tranche is reset on a monthly basis and as of March 31, 2025, was Secured Overnight Financing Rate (“SOFR”) plus 73.5 basis points with an annual facility fee of 14 basis points.

As of March 31, 2025, the Company had no variable rate borrowings on this unsecured bank credit facility and an

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

interest rate of 5.160 %.

The Company has a $ 2,588,000 standby letter of credit 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 September 30, 2024, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

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

The interest rate is reset on a daily basis and as of March 31, 2025, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of March 31, 2025, the interest rate was 5.235 % with no outstanding balance.

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

1 unchanged sentence

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

The $ 625,000,000 facility is also subject to a sustainability-linked pricing component, pursuant to which the applicable interest 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, 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 by one basis point, from 77.5 to 76.5 basis points.

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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 year ended December 31, 2024, which allowed for an interest rate reduction during the three months ended March 31, 2025.

The margin was effectively reduced on this unsecured bank credit facility by four basis points, from 77.5 to 73.5 basis points, and the facility fee was reduced from 15 to 14 basis points during the three months ended March 31, 2025.

In January 2025, the Company 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.

In March 2025, EastGroup repaid a $ 50,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 1.58 %.

MATURITY DATES Principal Payments Maturing

2 unchanged sentences

2030 and beyond

Total $ 1,630,000

Total unsecured debt, before amortization of debt issuance costs $ 1,460,000

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(11) ACCOUNTS PAYABLE AND ACCRUED EXPENSES

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

September 30,

2025 December 31,

6 unchanged sentences

Dividends payable 74,153 74,049

Incentive compensation payable 2,017 6,726

Other payables and accrued expenses 12,212 10,627

3 unchanged sentences

A summary of the Company’s Other liabilities follows:

September 30,

2025 December 31,

11 unchanged sentences

$ 131,496 134,028

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(13) COMPREHENSIVE INCOME

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

(In thousands)

3 unchanged sentences

Balance at end of period $ 15,026 30,782

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(14) DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

6 unchanged sentences

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

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

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

As of March 31, 2025, the Company had five 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.

3 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

NOTIONAL VALUE OF INTEREST RATE DERIVATIVES September 30,

As of March 31, 2025 and December 31, 2024, 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 March 31,

2025 December 31,

6 unchanged sentences

Interest Rate Swap 100,000 100,000

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024.

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

As of September 30, 2024

As of December 31, 2023

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

DERIVATIVES DESIGNATED AS CASH FLOW HEDGES AT FAIR VALUE March 31,

2025 December 31,

(In thousands)

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

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

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

Interest rate swap assets (1)

$ 16,452 21,953

Interest rate swap liabilities (2)

(1) Included in Other assets on the Consolidated Balance Sheets .

(2) Included in Other liabilities on the Consolidated Balance Sheets.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Three Months Ended

September 30, Nine Months Ended September 30,

DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS 2025 2024

(In thousands)

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

on derivatives

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

$ ( 3,876 ) 10,640

Amount of (income) reclassified from Accumulated other comprehensive

income into Interest expense

Amount of (income) reclassified from Accumulated other comprehensive income

into Interest expense

( 3,051 ) ( 4,746 )

3 unchanged sentences

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

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

As of March 31, 2025, 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.

5 unchanged sentences

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

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

Outstanding forward equity sale agreements are potentially dilutive securities that are excluded from the basic EPS calculation until the agreements are settled through the issuance of shares and receipt of proceeds.

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

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 potentially dilutive common shares outstanding during the reporting period.

The Company calculates diluted EPS by dividing Net Income Attributable to EastGroup Properties, Inc.

1 unchanged sentence

Any anti-dilutive securities are excluded from the diluted EPS calculation.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

Three Months Ended

September 30, Nine Months Ended September 30,

2024 2023 2024 2023

(In thousands)

10 unchanged sentences

(16) 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 .

Underwriting commissions and offering costs incurred in connection with common stock offerings and at-the-market (“ATM”) 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 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;

(i) none of the agreements’ exercise contingencies were based on observable markets or indices other than 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.

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

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

On October 25, 2024, we established an ATM common stock offering program pursuant to which we are able to sell, from time to time, shares of our common stock having an aggregate gross sales price of up to $ 1,000,000,000 (the “Current ATM Program”).

The Current ATM Program replaced our previous $ 750,000,000 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 connection with the Current ATM Program, we may sell shares of our common stock directly through sales agents or through certain financial institutions acting as forward counterparties whereby, at our discretion, the forward counterparties, or their agents or affiliates, may borrow from third parties and subsequently sell shares of our common stock.

1 unchanged sentence

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.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 nine months ended September 30, 2024 and the year ended December 31, 2023:

The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the three months ended March 31, 2025 and the year ended December 31, 2024:

Weighted Average Price Gross Proceeds Net Proceeds

2 unchanged sentences

33,120 $ 183.15 $ 6,066 $ 6,005

Three months ended June 30, 2024

218,929 168.62 36,916 36,547

Three months ended September 30, 2024

239,750 179.74 43,093 42,663

Nine months ended September 30, 2024

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

Twelve months ended December 31, 2024

1 unchanged sentence

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Forward Equity Offering Activity

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

The following table presents the Company’s forward equity offering activity during the three months ended March 31, 2025 and the year ended December 31, 2024:

Common Stock Weighted Average Price Gross Proceeds

2 unchanged sentences

406,041 $ 183.92 $ 74,679

Forward sale agreements settled — shares issued and proceeds

( 272,342 ) 183.59 ( 50,000 )

New forward sale agreements (1)

2,677,289 178.32 477,420

Forward Sale Agreements Outstanding at March 31, 2024

420,370 $ 182.79 $ 76,839

Forward sale agreements settled — shares issued and proceeds

( 2,698,077 ) 179.63 ( 484,653 )

New forward sale agreements (2)

Forward Sale Agreements Outstanding at December 31, 2024

385,253 $ 175.07 $ 67,446

Forward Sale Agreements Outstanding at June 30, 2024

New forward sale agreements (1)

1,043,871 182.02 190,006

1 unchanged sentence

( 385,253 ) 175.07 ( 67,446 )

New forward sale agreements (2)

1,099,612 185.80 204,306

Forward Sale Agreements Outstanding at September 30, 2024

Forward Sale Agreements Outstanding at March 31, 2025

1,043,871 $ 182.02 $ 190,006

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

(1) 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.

8 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

The total compensation expense for service-based 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.

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

however, the employee can vote the shares.

Share certificates and dividends are delivered to the employee as they vest.

The Company accrues dividends on unvested restricted shares and holds the certificates for the shares.

Employees may vote the shares once performance-based or market-based conditions are met.

Share certificates and dividends are delivered to the employee as the shares vest.

Forfeitures of awards are recognized as they occur.

3 unchanged sentences

The long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three years 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 total shareholder return component is subject to bright-line tests that compare the Company’s total shareholder return to the member companies of the Nareit Equity Index and the Nareit industrial index.

The Company begins recognizing expense for these awards based on the grant date fair value of the awards which is determined using a simulation pricing model developed to specifically accommodate the unique features of the award.

1 unchanged sentence

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).

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The annual equity compensation awards include components based on certain annual Company performance measures and individual annual performance goals over the upcoming year.

11 unchanged sentences

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

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

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

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

Stock-based compensation cost for employees was $ 4,585,000 for the three months ended March 31, 2025, of which $ 559,000 was capitalized as part of the Company’s development costs.

For the three months ended March 31, 2024, stock-based compensation cost for employees was $ 3,976,000 , of which $ 640,000 was capitalized as part of the Company’s development costs.

Stock-based compensation expense for directors was $ 206,000 for the three months ended March 31, 2025, and $ 171,000 for the same period in 2024.

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

Of the shares that vested in the nine months ended September 30, 2024, the Company withheld 33,381 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.

As of the grant dates, the fair value of shares that were granted during the nine months ended

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

Award Activity:

Of the shares that vested in the three months ended March 31, 2025, the Company withheld 24,745 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.

As of the grant dates, the fair value of shares that were granted during the three months ended March 31, 2025 was $ 8,718,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the three months ended March 31, 2025 was $ 9,982,000 .

Three Months Ended

September 30, 2024 Nine Months Ended September 30, 2024

March 31, 2025

RESTRICTED STOCK ACTIVITY

Weighted Average Grant Date Fair Value

Shares Weighted Average Grant Date Fair Value

Unvested at beginning of period 89,173 $ 160.76

4 unchanged sentences

Unvested at end of period 75,292 $ 175.87

(1) Includes shares granted in prior years for which performance conditions have been satisfied and the number of shares have been determined.

(2) Does not include the restricted shares that may be earned if the performance goals established in 2022 and 2023 for long-term performance and in 2024 for annual and long-term performance are achieved.

Depending on the actual level of achievement of the goals at the end of the open performance periods, the number of shares earned could range from zero to 135,501 .

(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 2023 and 2024 and the long-term and annual equity compensation awards established in 2025, the number of shares to be earned depends on the satisfaction of performance-based or market-based conditions, which may range from zero to 155,875.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(18) FAIR VALUE OF FINANCIAL INSTRUMENTS

2 unchanged sentences

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

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at September 30, 2024 and December 31, 2023.

September 30, 2024 December 31, 2023

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at March 31, 2025 and December 31, 2024.

March 31, 2025 December 31, 2024

Carrying Amount (1)

17 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

• Unsecured debt:

10 unchanged sentences

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

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures .

The primary provision of the ASU is to require disclosure of incremental segment information, such as significant segment expenses regularly provided to the Company’s chief decision makers, the title and position of such individuals, and the manner in which the individuals use such information in assessing segment performance and the allocation of resources.

Entities with a single reportable segment are required to provide the disclosures required by the amendment and existing segment disclosure requirements in accordance with Topic 280.

ASU 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted.

Amendments should be applied retrospectively to all prior periods presented in the financial statements.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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.

(22) SUBSEQUENT EVENTS

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

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

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

Subsequent to March 31, 2025, EastGroup settled outstanding forward equity sale agreements under the Current ATM Program by issuing 250,516 shares of common stock in exchange for net proceeds of approximately $ 44,430,000 .

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements