What changed in this filing

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Item 1. Financial Statements

2025-10-23 compared with 2025-07-23 · 166 added, 94 removed, 660 unchanged (28% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2025 December 31,

3 unchanged sentences

6,592,282 6,177,916

Less accumulated depreciation ( 1,498,548 ) ( 1,415,576 )

Accumulated depreciation ( 1,540,937 ) ( 1,415,576 )

5,051,345 4,762,340

14 unchanged sentences

53,348,644 shares

issued and outstanding at June 30, 2025 and 51,825,798 at December 31, 2024

issued and outstanding at September 30, 2025 and 51,825,798 at December 31, 2024

Excess shares;

13 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

16 unchanged sentences

COMMON STOCKHOLDERS 66,943 55,180 189,665 169,111

Other comprehensive income (loss) — Interest rate swaps ( 4,136 ) ( 1,095 ) ( 11,063 ) 4,799

Other comprehensive loss — Interest rate swaps ( 2,139 ) ( 15,747 ) ( 13,202 ) ( 10,948 )

TOTAL COMPREHENSIVE INCOME $ 64,804 39,433 176,463 158,163

11 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the six months ended June 30, 2025:

For the nine months ended September 30, 2025:

Common Shares Additional

36 unchanged sentences

BALANCE, JUNE 30, 2025 5 3,823,605 ( 427,632 ) 10,890 243 3,407,111

Net income — — 66,943 — 14 66,957

Net unrealized change in fair value of interest rate swaps — — — ( 2,139 ) — ( 2,139 )

Common dividends declared — $ 1.55 per

— — ( 83,065 ) — — ( 83,065 )

Stock-based compensation, net of forfeitures

— 3,081 — — — 3,081

Issuance of 647,758 shares of common

stock, common stock offering, net of

— 117,014 — — — 117,014

Net distributions to noncontrolling interest — — — — ( 8 ) ( 8 )

Contributions from noncontrolling interest — — — — 83 83

BALANCE, SEPTEMBER 30, 2025 $ 5 3,943,700 ( 443,754 ) 8,751 332 3,509,034

See accompanying Notes to Consolidated Financial Statements (unaudited).

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the six months ended June 30, 2024:

For the nine months ended September 30, 2024:

Common Shares Additional

35 unchanged sentences

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

Net income — — 55,180 — 14 55,194

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

Common dividends declared — $ 1.40 per

— — ( 68,898 ) — — ( 68,898 )

Stock-based compensation, net of forfeitures

— 3,012 — — — 3,012

Issuance of 540,252 shares of common

stock, common stock offering, net of

— 92,210 — — — 92,210

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

— ( 3 ) — — — ( 3 )

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

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

See accompanying Notes to Consolidated Financial Statements (unaudited).

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

31 unchanged sentences

Other ( 4,229 ) ( 6,288 )

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ( 53,791 ) 30,356

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 15,392 ( 863 )

NET CASH PROVIDED BY FINANCING ACTIVITIES 14,624 10,797

DECREASE IN CASH AND CASH EQUIVALENTS ( 14,548 ) ( 23,306 )

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 17,529 40,263

17 unchanged sentences

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

As of June 30, 2025 and December 31, 2024, EastGroup held a controlling interest in two joint venture arrangements.

As of September 30, 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.

8 unchanged sentences

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

The table below presents the components of Income from real estate operations for the three and six months ended June 30, 2025 and 2024:

The table below presents the components of Income from real estate operations for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2025 2024 2025 2024

20 unchanged sentences

If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset.

During the six month periods ended June 30, 2025 and 2024, the Company did not identify any impairment charges which should be recorded.

During the nine month periods ended September 30, 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 $ 43,093,000 and $ 85,401,000 for the three and six months ended June 30, 2025, respectively, and $ 37,646,000 and $ 74,851,000 for the same periods in 2024.

The Company’s Real estate properties and Development and value-add properties at June 30, 2025 and December 31, 2024 were as follows:

Depreciation expense was $ 43,928,000 and $ 129,329,000 for the three and nine months ended September 30, 2025, respectively, and $ 40,046,000 and $ 114,897,000 for the same periods in 2024.

The Company’s Real estate properties and Development and value-add properties at September 30, 2025 and December 31, 2024 were as follows:

September 30,

2025 December 31,

36 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 2024 are considered to be acquisitions of groups of similar identifiable assets;

EastGroup determined that its real estate property acquisitions in 2024 and the first nine months of 2025 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 2024 acquisitions.

As a result, the Company capitalized acquisition costs related to its 2024 and 2025 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.

9 unchanged sentences

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

Net amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $ 1,520,000 and $ 3,087,000 for the three and six months ended June 30, 2025, respectively, and $ 546,000 and $ 1,153,000 for the same periods in 2024.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 3,067,000 and $ 6,285,000 for the three and six months ended June 30, 2025, respectively, and $ 1,893,000 and $ 3,819,000 for the same periods in 2024.

During the six months ended June 30, 2025, EastGroup purchased 94.5 acres of development land in two markets for $ 50,228,000 .

There were no operating or value-add acquisitions during the six months ended June 30, 2025.

Net amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $ 1,547,000 and $ 4,634,000 for the three and nine months ended September 30, 2025, respectively, and $ 612,000 and $ 1,765,000 for the same periods in 2024.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 3,148,000 and $ 9,433,000 for the three and nine months ended September 30, 2025, respectively, and $ 2,009,000 and $ 5,828,000 for the same periods in 2024.

During the nine months ended September 30, 2025, EastGroup acquired the following properties:

REAL ESTATE PROPERTIES ACQUIRED IN 2025

Location Size Date

Acquired Cost (1)

(Square feet) (In thousands)

Operating properties acquired

LifeScience Logistics Center Raleigh, NC 251,000 07/08/2025 $ 47,150

Lumley Logistics Center Raleigh, NC 67,000 07/15/2025 14,174

McKinney Airport Trade Center Dallas, TX 320,000 09/19/2025 60,641

Total operating property acquisitions (2)(3)

638,000 $ 121,965

(1) Cost is calculated in accordance with FASB ASC 805 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, 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, 2025.

ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2025

(In thousands)

Land $ 25,439

Buildings and building improvements 88,601

Tenant and other improvements 6,128

Total real estate properties acquired 120,168

In-place lease intangibles (1)

Above market lease intangibles (1)

Below market lease intangibles (2)

Total assets acquired, net of liabilities assumed $ 121,965

(1) In-place lease intangibles and above market lease intangibles are each included in Other assets, net 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, 2025 had a weighted average remaining lease term at acquisition of approximately 9.5 years.

Also during the nine months ended September 30, 2025, EastGroup purchased 171.8 acres of development land in three markets for $ 83,793,000 .

During 2024, EastGroup acquired the following properties:

14 unchanged sentences

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.

(1) Cost is calculated in accordance with FASB ASC 805 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.

4 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

20 unchanged sentences

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

No impairment of goodwill or other intangibles existed during the three and six month periods ended June 30, 2025 and 2024.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

No impairment of goodwill or other intangibles existed during the three and nine month periods ended September 30, 2025 and 2024.

(8) REAL ESTATE SOLD AND HELD FOR SALE

1 unchanged sentence

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

The Company did not classify any properties as held for sale as of June 30, 2025 and December 31, 2024.

The Company did not classify any properties as held for sale as of September 30, 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.

A summary of Gain on sales of real estate investments for the six months ended June 30, 2025 and the year ended December 31, 2024 follows:

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

A summary of Gain on sales of real estate investments for the nine months ended September 30, 2025 and the year ended December 31, 2024 follows:

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

6 unchanged sentences

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 six months ended June 30, 2025.

The Company did not sell any land during the nine months ended September 30, 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 2025 or 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.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(9) OTHER ASSETS

A summary of the Company’s Other assets, net follows:

September 30,

2025 December 31,

20 unchanged sentences

$ 293,479 290,159

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Company’s debt is detailed below:

September 30,

2025 December 31,

11 unchanged sentences

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

The interest rate on each tranche is reset on a monthly basis and as of June 30, 2025, was Secured Overnight Financing Rate (“SOFR”) plus 73.5 basis points with an annual facility fee of 14 basis points.

As of June 30, 2025, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

rate of 5.162 %.

The interest rate on each tranche is reset on a monthly basis and as of September 30, 2025, was Secured Overnight Financing Rate (“SOFR”) plus 73.5 basis points with an annual facility fee of 14 basis points.

As of September 30, 2025, the Company had $ 45,000,000 of variable rate borrowings on this unsecured bank credit facility and an interest rate of 4.998 %.

The Company has a $ 2,588,000 standby letter of credit pledged on this facility, which reduces borrowing capacity under the credit facility.

1 unchanged sentence

the Company also has two six-month extensions available if the extension options in the $ 625,000,000 facility are exercised.

The interest rate is reset on a daily basis and as of June 30, 2025, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of June 30, 2025, the interest rate was 5.275 % with no outstanding balance.

The interest rate is reset on a daily basis and as of September 30, 2025, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of September 30, 2025, the interest rate was 5.035 % with no outstanding balance.

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

3 unchanged sentences

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 and six months ended June 30, 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 and six months ended June 30, 2025.

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 and nine months ended September 30, 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 %.

1 unchanged sentence

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

Scheduled principal payments on long-term debt, including Unsecured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs ), as of June 30, 2025, are as follows:

In August 2025, EastGroup repaid senior unsecured notes at maturity.

The notes had a principal balance of $ 20,000,000 and a fixed interest rate of 3.80 %.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

MATURITY DATES Principal Payments Maturing

3 unchanged sentences

Total unsecured debt, before amortization of debt issuance costs $ 1,440,000

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,

12 unchanged sentences

A summary of the Company’s Other liabilities follows:

September 30,

2025 December 31,

11 unchanged sentences

$ 135,732 134,028

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(13) COMPREHENSIVE INCOME

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2025 2024 2025 2024

2 unchanged sentences

Balance at beginning of period $ 10,890 29,687 21,953 24,888

Other comprehensive income (loss) — Interest rate swaps ( 4,136 ) ( 1,095 ) ( 11,063 ) 4,799

Other comprehensive loss — Interest rate swaps ( 2,139 ) ( 15,747 ) ( 13,202 ) ( 10,948 )

Balance at end of period $ 8,751 13,940 8,751 13,940

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 June 30, 2025, the Company had five interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans.

As of September 30, 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.

The Company estimates that an additional $ 8,033,000 will be reclassified from Other comprehensive income (loss) as a decrease to Interest expense over the next twelve months.

The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Other comprehensive 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 $ 7,012,000 will be reclassified from Other comprehensive loss as a decrease in 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.

1 unchanged sentence

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

As of June 30, 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 June 30,

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of September 30, 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 September 30,

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 June 30, 2025 and December 31, 2024.

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, 2025 and December 31, 2024.

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

FAIR VALUE OF DERIVATIVES DESIGNATED AS CASH FLOW HEDGES June 30,

FAIR VALUE OF DERIVATIVES DESIGNATED AS CASH FLOW HEDGES September 30,

2025 December 31,

5 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 six months ended June 30, 2025 and 2024:

Three Months Ended

June 30, Six Months Ended June 30,

EFFECT OF CASH FLOW HEDGES ON OTHER COMPREHENSIVE INCOME 2025 2024 2025 2024

September 30, Nine Months Ended September 30,

EFFECT OF CASH FLOW HEDGES ON OTHER COMPREHENSIVE LOSS 2025 2024 2025 2024

(In thousands)

Amount of income (loss) recognized in Other comprehensive income

(loss) on derivatives

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

$ 565 ( 11,094 ) ( 4,773 ) 3,180

6 unchanged sentences

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

As of June 30, 2025, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements.

As of September 30, 2025, the Company 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.

4 unchanged sentences

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.

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

common stock.

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.

4 unchanged sentences

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

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2025 2024 2025 2024

24 unchanged sentences

Direct Common Stock Issuance Activity

The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the six months ended June 30, 2025 and the year ended December 31, 2024:

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, 2025 and the year ended December 31, 2024:

Weighted Average Price Gross Proceeds Net Proceeds

3 unchanged sentences

Three months ended June 30, 2025

Six months ended June 30, 2025

Three months ended September 30, 2025

Nine months ended September 30, 2025

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

3 unchanged sentences

Forward Equity Offering Activity

The following table presents the Company’s forward equity offering activity during the six months ended June 30, 2025 and the year ended December 31, 2024:

The following table presents the Company’s forward equity offering activity during the nine months ended September 30, 2025 and the year ended December 31, 2024:

Common Stock Weighted Average Price Gross Proceeds

20 unchanged sentences

647,758 182.94 118,499

New forward sale agreements (1)

Forward sale agreements settled — Shares issued and proceeds

( 647,758 ) 182.94 ( 118,499 )

Forward Sale Agreements Outstanding at September 30, 2025

(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 unchanged sentences

(4) EastGroup settled outstanding forward equity sale agreements by issuing 416,067 shares of common stock in exchange for net proceeds of approximately $74,098,000.

(5) EastGroup settled outstanding forward equity sale agreements by issuing 647,758 shares of common stock in exchange for net proceeds of approximately $117,066,000.

(17) STOCK-BASED COMPENSATION

3 unchanged sentences

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-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.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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-based and performance-based awards is based upon the fair market value of the shares on the grant date.

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

11 unchanged sentences

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 2025 are:

The Company performance measures for 2025 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.

9 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 $ 2,476,000 and $ 7,061,000 for the three and six months ended June 30, 2025, respectively, of which $ 365,000 and $ 924,000 was capitalized as part of the Company’s development costs.

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

Stock-based compensation expense for directors was $ 192,000 and $ 398,000 for the three and six months ended June 30, 2025, respectively, and $ 172,000 and $ 343,000 for the same periods in 2024.

Stock-based compensation cost for employees was $ 2,870,000 and $ 9,931,000 for the three and nine months ended September 30, 2025, respectively, of which $ 451,000 and $ 1,375,000 was capitalized as part of the Company’s development costs.

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

Stock-based compensation expense for directors was $ 211,000 and $ 609,000 for the three and nine months ended September 30, 2025, respectively, and $ 211,000 and $ 554,000 for the same periods in 2024.

EASTGROUP PROPERTIES, INC.

2 unchanged sentences

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

Of the shares that vested in the six months ended June 30, 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 six months ended June 30, 2025 was $ 9,529,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the six months ended June 30, 2025 was $ 10,819,000 .

Of the shares that vested in the nine months ended September 30, 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 nine months ended September 30, 2025 was $ 11,928,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the nine months ended September 30, 2025 was $ 10,819,000 .

Three Months Ended

June 30, 2025 Six Months Ended June 30, 2025

September 30, 2025 Nine Months Ended September 30, 2025

RESTRICTED STOCK ACTIVITY

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

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at June 30, 2025 and December 31, 2024.

June 30, 2025 December 31, 2024

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, 2025 and December 31, 2024.

September 30, 2025 December 31, 2024

Carrying Amount (1)

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Financial Liabilities:

Unsecured bank credit facilities - variable rate (2 )

45,000 45,111 — —

Unsecured debt (2)

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

• Unsecured bank credit facilities:

The fair value of the Company’s unsecured bank credit facilities is estimated by discounting expected cash flows at current market rates (Level 2 input), excluding the effects of debt issuance costs.

• Unsecured debt:

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(22) SUBSEQUENT EVENTS

Subsequent to June 30, 2025, EastGroup settled outstanding forward equity sale agreements under the Current ATM Program by issuing 647,758 shares of common stock in exchange for net proceeds of approximately $ 117,065,000 .

Also subsequent to June 30, 2025, in separate transactions, EastGroup acquired two business distribution buildings for approximately $ 61,400,000 .

The buildings expand the Company’s portfolio in Raleigh by a combined 318,000 square feet.

In July 2025, the Company also purchased 37.4 acres of development land in Orlando for approximately $8,500,000.

Subsequent to September 30, 2025, EastGroup acquired 16.2 acres in the Northeast submarket of Dallas for approximately $ 10,200,000 .

This land is expected to accommodate the future development of two buildings containing approximately 180,000 square feet.

In October 2025, the Company repaid maturing senior unsecured notes totaling $ 75,000,000 with a weighted average fixed interest rate of 3.98 %.

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