What changed in this filing

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Item 2. Management’s Discussion and Analysis

2025-10-23 compared with 2025-07-23 · 163 added, 157 removed, 339 unchanged (49% of the section changed)

40 unchanged sentences

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

As of June 30, 2025, EastGroup owned 539 industrial properties in 12 states.

As of September 30, 2025, EastGroup owned 546 industrial properties in 12 states.

As of that same date, the Company’s portfolio, including development projects and value-add properties in lease-up and under construction, included approximately 64,400,000 square feet consisting of 507 business distribution properties containing 58,800,000 square feet, 18 bulk distribution properties containing 4,700,000 square feet, and 21 business service properties containing 900,000 square feet.

During the six months ended June 30, 2025, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions, and geopolitical conflict.

While these factors did not have a significant adverse impact on EastGroup during the six months ended June 30, 2025, they may adversely impact the Company in the future.

During the nine months ended September 30, 2025, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions and geopolitical conflict.

While these factors did not have a significant adverse impact on EastGroup during the nine months ended September 30, 2025, they may adversely impact the Company in the future.

Most of the Company’s leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, thereby reducing the Company’s exposure to increases in operating expenses resulting from inflation or other factors.

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EastGroup believes its current operating cash flow and unsecured bank credit facilities provide the capacity to fund the operations of the Company, and the Company also believes it can issue common and/or preferred equity and obtain debt financing on currently acceptable terms.

During the six months ended June 30, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.

During the six months ended June 30, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 1,063,825 shares of common stock with an initial weighted average forward price of $181.89 per share.

During the nine months ended September 30, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.

During the nine months ended September 30, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 1,063,825 shares of common stock with an initial weighted average forward price of $181.89 per share.

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

Also during the six months ended June 30, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into by issuing 801,320 shares of common stock in exchange for net proceeds of approximately $141,000,000.

Also during the nine months ended September 30, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into by issuing 1,449,078 shares of common stock in exchange for net proceeds of approximately $258,066,000.

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

1 unchanged sentence

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

During the six months ended June 30, 2025, EastGroup executed new and renewal leases on 4,532,000 square feet (representing 7.6% of the operating portfolio’s total square footage of 59,873,000).

For new and renewal leases signed during the first six months of 2025, average rental rates increased by 45.8%, as compared to the former leases on the same spaces.

During the nine months ended September 30, 2025, EastGroup executed new and renewal leases on 6,997,000 square feet (representing 11.4% of the operating portfolio’s total square footage of 61,375,000).

For new and renewal leases signed during the first nine months of 2025, average rental rates increased by 42.1%, as compared to the former leases on the same spaces.

On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders was $2.35 for the six months ended June 30, 2025, compared to $2.37 for the same period of 2024, a 0.8% decrease.

Common Stockholders was $3.60 for the nine months ended September 30, 2025, compared to $3.49 for the same period of 2024, a 3.2% increase.

See the Company’s analysis of performance trends below for further details.

Property Net Operating Income (“PNOI”), Excluding Income from Lease Terminations, from same properties (defined as operating properties owned during the entire period from January 1, 2024 through June 30, 2025), increased 5.9% for the six months ended June 30, 2025, as compared to the same period in 2024.

EastGroup’s operating portfolio was 97.1% leased and 96.0% occupied as of June 30, 2025, compared to 97.4% and 97.1%, respectively, at June 30, 2024.

As of July 22, 2025, the operating portfolio was 96.6% leased and 95.3% occupied.

As of June 30, 2025, leases approximating 4.6% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2025.

This percentage was reduced to 3.4% as of July 22, 2025.

Property Net Operating Income (“PNOI”), Excluding Income from Lease Terminations, from same properties (defined as operating properties owned during the entire period from January 1, 2024 through September 30, 2025), increased 6.5% for the nine months ended September 30, 2025, as compared to the same period in 2024.

EastGroup’s operating portfolio was 96.7% leased and 95.9% occupied as of September 30, 2025, compared to 96.9% and 96.5%, respectively, at September 30, 2024.

As of October 22, 2025, the operating portfolio was 96.7% leased and 95.9% occupied.

As of September 30, 2025, leases approximating 2.4% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2025.

This percentage was reduced to 1.8% as of October 22, 2025.

The Company generates new sources of leasing revenue through its acquisitions and also its development and value-add program.

The Company mitigates risks associated with development through a Board-approved maximum level of land held for development and by adjusting development start dates according to leasing activity.

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

The Company also began construction of a redevelopment project and two development projects containing 731,000 square feet in three markets.

EastGroup also transferred six development projects (1,160,000 square feet) in five markets from Development and value-add propertie s to Real estate properties , with costs of $151,928,000 at the date of transfer.

As of June 30, 2025, EastGroup’s development and value-add program consisted of 18 projects (3,714,000 square feet) located in 13 markets.

The projected total investment for the development projects, which were collectively 16.3% leased as of July 22, 2025, is $531,400,000, of which $157,835,000 remained to be invested as of June 30, 2025.

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

During the six months ended June 30, 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000.

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

The Company also began construction of a redevelopment project and three development projects containing 892,000 square feet in four markets.

EastGroup also transferred 10 development projects (2,024,000 square feet) in 7 markets from Development and value-add propertie s to Real estate properties , with costs of $268,626,000 at the date of transfer.

As of September 30, 2025, EastGroup’s development and value-add program consisted of 15 projects (3,011,000 square feet) located in 12 markets.

The projected total investment for the development projects, which were collectively 8.5% leased as of October 22, 2025, is $436,100,000, of which $137,546,000 remained to be invested as of September 30, 2025.

During the nine months ended September 30, 2025, EastGroup acquired operating properties in Dallas and Raleigh, containing 638,000 square feet for $121,965,000.

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

During the nine months ended September 30, 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000.

The Company did not recognize a gain or loss on this disposition.

21 unchanged sentences

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

For the three and six months ended June 30, 2025, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through June 30, 2025.

For the three and nine months ended September 30, 2025, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through September 30, 2025.

The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis.

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These non-GAAP figures should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP.

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI, Excluding Income from Lease Terminations, for the three and six months ended June 30, 2025 and 2024.

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI, Excluding Income from Lease Terminations, for the three and nine months ended September 30, 2025 and 2024.

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2025 2024 2025 2024

12 unchanged sentences

PROPERTY NET OPERATING INCOME (“PNOI”) 134,374 118,990 389,736 344,128

PNOI from 2024 acquisitions

PNOI from 2024 and 2025 acquisitions

(8,116) (2,010) (22,135) (4,080)

7 unchanged sentences

SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS $ 119,421 110,866 349,332 327,897

PNOI was calculated as follows for the three and six months ended June 30, 2025 and 2024.

PNOI was calculated as follows 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

13 unchanged sentences

The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders to FFO Attributable to Common Stockholders for the three and six months ended June 30, 2025 and 2024.

Common Stockholders to FFO Attributable to Common Stockholders 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

16 unchanged sentences

• Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders for the three and six months ended June 30, 2025 was $63,299,000 ($1.21 per basic and $1.20 per diluted share) and $122,722,000 ($2.35 per basic and diluted share), respectively, compared to $55,287,000 ($1.15 per basic and $1.14 per diluted share) and $113,931,000 ($2.37 per basic and diluted share) for the same periods in 2024.

Common Stockholders for the three and nine months ended September 30, 2025 was $66,943,000 ($1.26 per basic and diluted share) and $189,665,000 ($3.61 per basic and $3.60 per diluted share), respectively, compared to $55,180,000 ($1.13 per basic and diluted share) and $169,111,000 ($3.50 per basic and $3.49 per diluted share) for the same periods in 2024.

See Results of Operations for further analysis.

• The change in FFO per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year.

For the three months ended June 30, 2025, FFO was $2.21 per diluted share compared with $2.09 per diluted share for the same period of 2024, an increase of 5.7%.

For the six months ended June 30, 2025, FFO was $4.37 per diluted share compared with $4.07 per diluted share for the same period of 2024, an increase of 7.4%.

FFO increased during the three and six months ended June 30, 2025, as compared to the same periods in 2024, primarily due to the increase in PNOI and the decrease in interest expense, partially offset by an increase in general and administrative expense.

• For the three months ended June 30, 2025, PNOI increased by $15,409,000, or 13.5%, as compared to the same period in 2024.

PNOI increased $7,303,000 due to same property operations, $5,618,000 due to 2024 acquisitions and $2,987,000 due to newly developed and value-add properties;

For the three months ended September 30, 2025, FFO was $2.27 per diluted share compared with $2.13 per diluted share for the same period of 2024, an increase of 6.6%.

For the nine months ended September 30, 2025, FFO was $6.64 per diluted share compared with $6.19 per diluted share for the same period of 2024, an increase of 7.3%.

FFO increased during the three and nine months ended September 30, 2025, as compared to the same periods in 2024, primarily due to the increase in PNOI and the decrease in interest expense, partially offset by an increase in general and administrative expense.

• For the three months ended September 30, 2025, PNOI increased by $15,384,000, or 12.9%, as compared to the same period in 2024.

PNOI increased $6,911,000 due to same property operations, $6,106,000 due to 2024 and 2025 acquisitions and $2,613,000 due to newly developed and value-add properties;

PNOI decreased $51,000 due to operating properties sold in 2024 and 2025.

For the six months ended June 30, 2025, PNOI increased by $30,224,000, or 13.4%, as compared to the same period in 2024.

PNOI increased $13,460,000 due to same property operations, $11,949,000 due to 2024 acquisitions and $5,664,000 due to newly developed and value-add properties;

For the nine months ended September 30, 2025, PNOI increased by $45,608,000, or 13.3%, as compared to the same period in 2024.

PNOI increased $20,371,000 due to same property operations, $18,055,000 due to 2024 and 2025 acquisitions and $8,277,000 due to newly developed and value-add properties;

PNOI decreased $289,000 due to operating properties sold in 2024 and 2025.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2024 through June 30, 2025.

Same PNOI, excluding income from lease terminations, increased 6.6% and 5.9% for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024.

• Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through June 30, 2025).

Same property average occupancy was 96.3% for the three months ended June 30, 2025, compared to 97.1% for the same period of 2024.

Same property average occupancy was 96.2% for the six months ended June 30, 2025, compared to 97.3% for the same period of 2024.

• The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through June 30, 2025).

The same property average rental rate was $8.73 and $8.64 per square foot for the three and six months ended June 30, 2025, respectively, compared to $8.21 and $8.15 per square foot for the same periods of 2024.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2024 through September 30, 2025.

Same PNOI, excluding income from lease terminations, increased 7.7% and 6.5% for the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024.

Same property average occupancy was 96.6% for the three months ended September 30, 2025, compared to 96.9% for the same period of 2024.

Same property average occupancy was 96.3% for the nine months ended September 30, 2025, compared to 97.1% for the same period of 2024.

The same property average rental rate was $8.91 and $8.73 per square foot for the three and nine months ended September 30, 2025, respectively, compared to $8.30 and $8.20 per square foot for the same periods of 2024.

• Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period.

Occupancy at June 30, 2025 was 96.0%.

Quarter-end occupancy ranged from 96.1% to 97.1% over the previous four quarters ended June 30, 2024 to March 31, 2025.

Occupancy at September 30, 2025 was 95.9%.

Quarter-end occupancy ranged from 96.0% to 96.5% over the previous four quarters ended September 30, 2024 to June 30, 2025.

• Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space.

Rental rate increases on new and renewal leases (3.2% of the operating portfolio’s total square footage) averaged 44.4% for the three months ended June 30, 2025.

For the six months ended June 30, 2025, rental rate increases on new and renewal leases (7.6% of the operating portfolio’s total square footage) averaged 45.8%.

Rental rate increases on new and renewal leases (4.0% of the operating portfolio’s total square footage) averaged 35.9% for the three months ended September 30, 2025.

For the nine months ended September 30, 2025, rental rate increases on new and renewal leases (11.4% of the operating portfolio’s total square footage) averaged 42.1%.

FINANCIAL CONDITION

EastGroup’s Total Assets were $5,189,608,000 at June 30, 2025, an increase of $112,132,000 from December 31, 2024.

Total Liabilities decreased $2,435,000 to $1,782,497,000, and Total Equity increased $114,567,000 to $3,407,111,000 during the same period.

EastGroup’s Total Assets were $5,354,755,000 at September 30, 2025, an increase of $277,279,000 from December 31, 2024.

Total Liabilities increased $60,789,000 to $1,845,721,000, and Total Equity increased $216,490,000 to $3,509,034,000 during the same period.

The following paragraphs explain these changes in additional detail.

Real Estate Properties

Real estate properties increased $191,507,000 during the six months ended June 30, 2025, primarily due to:

Real estate properties increased $446,631,000 during the nine months ended September 30, 2025, primarily due to:

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

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

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

(ii) the acquisition of operating properties;

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

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

The increases were partially offset by the sale of an operating property.

There were no operating property acquisitions during the six months ended June 30, 2025.

During the six months ended June 30, 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000.

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, 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.

During the nine months ended September 30, 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000.

The Company did not recognize a gain or loss on this disposition.

During the six months ended June 30, 2025, the Company made capital improvements of $38,700,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

During the nine months ended September 30, 2025, the Company made capital improvements of $59,276,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

Also, the Company incurred costs of $5,759,000 on development and value-add properties subsequent to transfer to Real estate properties ;

the Company records these expenditures as development and value-add costs on the Consolidated Statements of Cash Flows.

Development and Value-Add Properties

EastGroup’s investment in Development and value-add properties at June 30, 2025 consisted of projects in lease-up and under construction of $373,565,000 and prospective development (primarily land) of $304,448,000.

The Company’s total investment in Development and value-add properties at June 30, 2025 was $678,013,000 compared to $674,472,000 at December 31, 2024.

Total capital invested for development during the first six months of 2025 was $158,709,000, which consisted of improvement costs of $105,242,000 on development and value-add properties, 50,228,000 for new land investments and costs of $3,239,000 on properties subsequent to transfer to Real estate properties.

Development and value-add properties at September 30, 2025 consisted of projects in lease-up and under construction of $298,554,000 and prospective development (primarily land) of $343,653,000.

The Company’s total investment in Development and value-add properties at September 30, 2025 was $642,207,000 compared to $674,472,000 at December 31, 2024.

The decrease in Development and value-add properties was primarily due to the transfer of 10 development and value-add projects to Real estate properties during the nine months ended September 30, 2025 with a total investment of $268,626,000 as of the date of transfer.

Total capital invested for development during the first nine months of 2025 was $242,121,000, which consisted of improvement costs of $152,569,000 on development and value-add properties, $83,793,000 for new land investments and costs of $5,759,000 on properties subsequent to transfer to Real estate properties.

The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs).

The Company capitalized internal development costs of $1,717,000 and $3,671,000 for the three and six months ended June 30, 2025, respectively, compared to $2,032,000 and $4,255,000 for the same periods of 2024.

The Company capitalized internal development costs of $1,716,000 and $5,387,000 for the three and nine months ended September 30, 2025, respectively, compared to $1,903,000 and $6,158,000 for the same periods of 2024.

The decrease was due to variations in timing and volume of development projects under construction.

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

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

The increases to Development and value-add properties were offset by the transfer of six development and value-add projects to Real estate properties during the six months ended June 30, 2025 with a total investment of $151,928,000 as of the date of transfer.

A summary of the Company's Development and Value-Add Properties for the six months ended June 30, 2025 follows:

During the nine months ended September 30, 2025, the Company acquired 171.8 acres of development land in three markets for $83,793,000.

Costs associated with these acquisitions are included in the Development and Value-Add Properties table.

There were no value-add acquisitions during the nine months ended September 30, 2025.

A summary of the Company's Development and Value-Add Properties for the nine months ended September 30, 2025 follows:

Actual or Estimated Building Size Cumulative Costs Incurred as of 9/30/2025

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Prospective development (primarily land) 10,867,000 343,653

Total Development and value-add properties as of June 30, 2025

Total Development and value-add properties as of September 30, 2025

13,878,000 $ 642,207

Total Development and value-add properties transferred to Real estate

properties during the six months ended June 30, 2025

properties during the nine months ended September 30, 2025

2,024,000 $ 268,626 (1)

(1) Represents cumulative costs at the date of transfer.

Accumulated Depreciation

Accumulated depreciation on real estate, development and value-add properties increased $82,972,000 during the six months ended June 30, 2025, primarily due to depreciation expense of $85,401,000 partially offset by write-offs of assets.

Other Assets, Net

Other assets, net decreased $14,965,000 during the six months ended June 30, 2025.

Accumulated depreciation on real estate, development and value-add properties increased $125,361,000 during the nine months ended September 30, 2025, primarily due to depreciation expense of $129,329,000 partially offset by write-offs of assets.

Cash and cash equivalents decreased $14,548,000 during the nine months ended September 30, 2025.

Refer to the Consolidated Statements of Cash Flows and Liquidity and Capital Resources for further details.

Other assets, net increased $3,320,000 during the nine months ended September 30, 2025.

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

Unsecured bank credit facilities, net of debt issuance costs increased $503,000 during the six months ended June 30, 2025, mainly due to borrowings of $22,851,000, offset by repayments of $22,851,000, and debt issuance cost activity during the period.

Unsecured bank credit facilities, net of debt issuance costs increased $45,754,000 during the nine months ended September 30, 2025, mainly due to borrowings of $136,191,000, offset by repayments of $91,191,000, and debt issuance cost activity during the period.

The Company’s credit facilities are described in greater detail in Liquidity and Capital Resources .

Unsecured debt, net of debt issuance costs decreased $49,686,000 during the six months ended June 30, 2025, primarily due to the repayment of a $50,000,000 term loan and debt issuance cost activity during the period.

Unsecured debt, net of debt issuance costs decreased $69,497,000 during the nine months ended September 30, 2025, primarily due to the repayment of a $50,000,000 term loan, principal repayments of $20,000,000 on the Company’s senior unsecured

notes, and debt issuance cost activity during the period.

The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources .

Accounts payable and accrued expenses increased $53,163,000 during the six months ended June 30, 2025.

Accounts payable and accrued expenses increased $82,828,000 during the nine months ended September 30, 2025.

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

Other liabilities decreased $6,415,000 during the six months ended June 30, 2025.

Other liabilities increased $1,704,000 during the nine months ended September 30, 2025.

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

Additional paid-in capital increased $150,212,000 during the six months ended June 30, 2025, primarily due to the issuance of common stock under the Company’s ATM program (as discussed in Note 16 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 17 in the Notes to Consolidated Financial Statements).

For the six months ended June 30, 2025, Distributions in excess of earnings increased $24,460,000 as a result of dividends on common stock of $147,182,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Additional paid-in capital increased $270,307,000 during the nine months ended September 30, 2025, primarily due to the issuance of common stock under the Company’s ATM program (as discussed in Note 16 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 17 in the Notes to Consolidated Financial Statements).

Distributions in excess of earnings increased $40,582,000 during the nine months ended September 30, 2025, as a result of dividends on common stock of $230,247,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders of $189,665,000.

Accumulated other comprehensive income decreased $11,063,000 during the six months ended June 30, 2025.

Accumulated other comprehensive income decreased $13,202,000 during the nine months ended September 30, 2025.

The decrease resulted from the change in fair value of the Company’s interest rate swaps (cash flow hedges) which are further discussed in Notes 13 and 14 in the Notes to Consolidated Financial Statements.

1 unchanged sentence

Net Income Attributable to EastGroup Properties, Inc.

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

• PNOI was $129,184,000 ($2.46 per diluted share) for the three months ended June 30, 2025, compared to $113,775,000 ($2.35 per diluted share) during the same period of 2024, which was an increase of $0.11 per diluted share.

PNOI increased $7,303,000 due to same property operations, $5,618,000 due to 2024 acquisitions and $2,987,000 due to newly developed and value-add properties;

• PNOI was $134,374,000 ($2.52 per diluted share) for the three months ended September 30, 2025, compared to $118,990,000 ($2.43 per diluted share) during the same period of 2024, which was an increase of $0.09 per diluted share.

PNOI increased $6,911,000 due to same property operations, $6,106,000 due to 2024 and 2025 acquisitions and $2,613,000 due to newly developed and value-add properties;

PNOI decreased $51,000 due to operating properties sold in 2024 and 2025.

Income recognized from straight-lining of rent increased by $1,532,000 for the three months ended June 30, 2025, as compared to the same period of 2024.

PNOI was $255,362,000 ($4.88 per diluted share) for the six months ended June 30, 2025, compared to $225,138,000 ($4.68 per diluted share) during the same period of 2024, which was an increase of $0.20 per diluted share.

PNOI increased $13,460,000 due to same property operations, $11,949,000 due to 2024 acquisitions and $5,664,000 due to newly developed and value-add properties;

Income recognized from straight-lining of rent increased by $1,690,000 for the three months ended September 30, 2025, as compared to the same period of 2024.

PNOI was $389,736,000 ($7.41 per diluted share) for the nine months ended September 30, 2025, compared to $344,128,000 ($7.10 per diluted share) during the same period of 2024, which was an increase of $0.31 per diluted share.

PNOI increased $20,371,000 due to same property operations, $18,055,000 due to 2024 and 2025 acquisitions and $8,277,000 due to newly developed and value-add properties;

PNOI decreased $289,000 due to operating properties sold in 2024 and 2025.

Income recognized from straight-lining of rent increased by $2,872,000 for the six months ended June 30, 2025, as compared to the same period of 2024.

• EastGroup did not recognize any gains or losses on operating property dispositions during the three and six months ended June 30, 2025.

The Company had no operating property sales during the three months ended June 30, 2024.

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

Income recognized from straight-lining of rent increased by $4,562,000 for the nine months ended September 30, 2025, as compared to the same period of 2024.

• EastGroup did not recognize any gains or losses on operating property dispositions during the three and nine months ended September 30, 2025.

The Company had no operating property sales during the three months ended September 30, 2024.

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

The Company’s 2024 and 2025 sales transactions are described in Note 8 of the Notes to Consolidated Financial Statements.

• Depreciation and amortization expense was $53,012,000 ($1.01 per diluted share) and $45,663,000 ($0.94 per diluted share) during the three months ended June 30, 2025 and 2024, respectively, which was an increase of $0.07 per diluted share.

Depreciation and amortization expense was $105,532,000 ($2.02 per diluted share) and $90,832,000 ($1.89 per diluted share) during the six months ended June 30, 2025 and 2024, respectively, which was an increase of $0.13 per diluted share.

The increase is primarily due to the operating properties acquired by the Company in 2024 and the properties transferred from Development and value-add properties in 2024 and 2025, partially offset by operating properties sold in 2024 and 2025.

• Interest expense recognized was $7,690,000 ($0.15 per diluted share) and $9,832,000 ($0.20 per diluted share) during the three months ended June 30, 2025 and 2024, respectively, which was a decrease of $0.05 per share.

Interest expense recognized was $15,715,000 ($0.30 per diluted share) and $19,893,000 ($0.41 per diluted share) during the six months ended June 30, 2025 and 2024, respectively, which was a decrease of $0.11 per diluted share.

• Depreciation and amortization expense was $54,131,000 ($1.02 per diluted share) and $48,917,000 ($1.00 per diluted share) during the three months ended September 30, 2025 and 2024, respectively, which was an increase of $0.02 per diluted share.

Depreciation and amortization expense was $159,663,000 ($3.03 per diluted share) and $139,749,000 ($2.89 per diluted share) during the nine months ended September 30, 2025 and 2024, respectively, which was an increase of $0.14 per diluted share.

The increase is primarily due to the operating properties acquired by the Company in 2024 and 2025 and the properties transferred from Development and value-add properties in 2024 and 2025, partially offset by operating properties sold in 2024 and 2025.

• Interest expense recognized was $7,685,000 ($0.14 per diluted share) and $9,871,000 ($0.20 per diluted share) during the three months ended September 30, 2025 and 2024, respectively, which was a decrease of $0.06 per share.

Interest expense recognized was $23,400,000 ($0.44 per diluted share) and $29,764,000 ($0.61 per diluted share) during the nine months ended September 30, 2025 and 2024, respectively, which was a decrease of $0.17 per diluted share.

Refer to the table below for additional details.

• EastGroup recognized gains on involuntary conversion and business interruption claims of $1,763,000 ($0.03 per diluted share) and $1,708,000 ($0.04 per diluted share) during the six months ended June 30, 2025 and 2024, respectively, which was a decrease of $0.01 per diluted share.

The Company recognized $1,708,000 ($0.04 per diluted share) during the three months ended June 30, 2024.

There were no gains on involuntary conversion and business interruption claims during the three months ended June 30, 2025.

• EastGroup recognized gains on involuntary conversion and business interruption claims of $1,763,000 ($0.03 per diluted share) and $1,708,000 ($0.04 per diluted share) during the nine months ended September 30, 2025 and 2024, respectively, which was a decrease of $0.01 per diluted share.

There were no gains on involuntary conversion and business interruption claims during the three months ended September 30, 2025 or 2024.

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

• Weighted average shares outstanding increased by 4,234,000 shares on a diluted basis for the three months ended June 30, 2025, as compared to the same period of 2024.

Weighted average shares outstanding increased by 4,151,000 shares on a diluted basis for the six months ended June 30, 2025, as compared to the same period of 2024.

• Weighted average shares outstanding increased by 4,265,000 shares on a diluted basis for the three months ended September 30, 2025, as compared to the same period of 2024.

Weighted average shares outstanding increased by 4,189,000 shares on a diluted basis for the nine months ended September 30, 2025, as compared to the same period of 2024.

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

EastGroup entered into 35 leases with certain rent concessions on 727,000 square feet during the three months ended June 30, 2025, with total rent concessions of $1,635,000 over the terms of the leases.

EastGroup entered into 36 leases with certain rent concessions on 901,000 square feet during the three months ended September 30, 2025, with total rent concessions of $1,805,000 over the terms of the leases.

During the same period of 2024, the Company entered into 33 leases with certain rent concessions on 1,108,000 square feet with total rent concessions of $2,664,000 over the terms of the leases.

EastGroup entered into 74 leases with certain rent concessions on 2,087,000 square feet during the six months ended June 30, 2025, with total rent concessions of $4,796,000 over the terms of the leases.

EastGroup entered into 110 leases with certain rent concessions on 2,988,000 square feet during the nine months ended September 30, 2025, with total rent concessions of $6,601,000 over the terms of the leases.

During the same period of 2024, the Company entered into 97 leases with certain rent concessions on 3,762,000 square feet with total rent concessions of $8,462,000 over the terms of the leases.

The Company’s percentage of leased square footage for the operating portfolio was 97.1% at June 30, 2025, compared to 97.4% at June 30, 2024.

Occupancy for the Company’s operating portfolio at June 30, 2025 was 96.0% compared to 97.1% at June 30, 2024.

The following table presents the components of Interest expense for the three and six months ended June 30, 2025 and 2024:

The Company’s percentage of leased square footage for the operating portfolio was 96.7% at September 30, 2025, compared to 96.9% at September 30, 2024.

Occupancy for the Company’s operating portfolio at September 30, 2025 was 95.9% compared to 96.5% at September 30, 2024.

The following table presents the components of Interest expense 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 Increase

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(1) Includes interest on the Company’s unsecured debt with fixed interest rates per the debt agreements or effectively fixed interest rates due to interest rate swaps, as discussed in Note 14 in the Notes to Consolidated Financial Statements.

The Company’s variable rate interest expense decreased by $15,000 and $42,000 for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024, primarily due to a decrease in average borrowings and interest rates on its unsecured bank credit facilities, as shown in the following table:

The Company’s variable rate interest expense increased by $42,000 for the three months ended September 30, 2025, as compared to the same period in 2024.

The increase was primarily due to an increase in average borrowings, partially offset by a decrease in the Company’s weighted average variable interest rates, as shown below.

The variable rate interest expense was approximately the same for the nine months ended September 30,2025, as compared to the same period in 2024.

The following table presents the components of variable rate interest expense 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 Increase

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5.17 % 6.32 % 5.19 % 6.30 %

The Company’s fixed rate interest expense decreased by $1,824,000 and $3,526,000 for the three and six months ended June 30, 2025, respectively, as compared to the same periods in 2024, primarily as a result of the unsecured debt activity described below.

The following table presents the details of unsecured debt repayments during the six months ended June 30, 2025 and the year ended December 31, 2024:

The Company’s fixed rate interest expense decreased by $1,746,000 and $5,272,000 for the three and nine months ended September 30, 2025, respectively, as compared to the same periods in 2024, primarily as a result of the unsecured debt activity described below.

The following table presents the details of unsecured debt repayments during the nine months ended September 30, 2025 and the year ended December 31, 2024:

UNSECURED DEBT REPAID IN 2024 AND 2025

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$50 Million Senior Unsecured Term Loan 1.58% 03/18/2025 50,000

$20 Million Senior Unsecured Notes 3.80% 08/28/2025 20,000

Weighted Average Effectively Fixed Interest Rate and Total Payoff

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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.

EastGroup did not obtain any unsecured debt during 2024 or during the first six months of 2025.

EastGroup did not obtain any unsecured debt during 2024 or during the first nine months of 2025.

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

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

Capitalized interest increased $303,000 and $610,000 during the three and six months ended June 30, 2025, respectively, as compared to the same periods of 2024, due to changes in development activity and spending.

Capitalized interest increased $482,000 and $1,092,000 during the three and nine months ended September 30, 2025, respectively, as compared to the same periods of 2024, due to changes in development activity and spending.

Real Estate Improvements

Real estate improvements for EastGroup’s operating properties for the three and six months ended June 30, 2025 and 2024 were as follows:

Real estate improvements for EastGroup’s operating properties for the three and nine months ended September 30, 2025 and 2024 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2025 2024 2025 2024

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(1) Reconciliation of Total real estate improvements to Real estate improvements on the Consolidated Statements of Cash Flows:

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

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The costs are amortized over the terms of the associated leases, and the amortization is included in Depreciation and amortization expense.

Capitalized leasing costs for the three and six months ended June 30, 2025 and 2024 were as follows:

Capitalized leasing costs for the three and nine months ended September 30, 2025 and 2024 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2025 2024 2025 2024

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(1) Reconciliation of Total capitalized leasing costs to Leasing commissions on the Consolidated Statements of Cash Flows:

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

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The Company anticipates that its current cash balance, operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt and/or proceeds from the issuance of equity instruments will be adequate for (i) operating and administrative expenses, (ii) normal repair and maintenance expenses at its properties, (iii) debt service obligations, (iv) maintaining compliance with its debt covenants, (v) distributions to stockholders, (vi) capital improvements, (vii) purchases of properties, (viii) development, and (ix) any other normal business activities of the Company, both in the short-term and long-term.

The Company expects liquidity sources and needs in the coming year to be consistent in nature with those for the six months ended June 30, 2025.

The Company expects liquidity sources and needs in the coming year to be consistent in nature with those for the nine months ended September 30, 2025.

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

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

As of June 30, 2025, EastGroup had total immediate liquidity of approximately $823,832,000 comprised of $32,921,000 of cash and cash equivalents, $672,412,000 of availability on our unsecured credit facilities, and approximately $118,499,000 of gross proceeds available on our outstanding forward equity sale agreements.

As of September 30, 2025, EastGroup had total immediate liquidity of approximately $630,393,000 comprised of $2,981,000 of cash and cash equivalents and $627,412,000 of availability on unsecured credit facilities.

See further details discussed below.

Net cash provided by operating activities was $277,081,000 for the six months ended June 30, 2025.

Net cash provided by operating activities was $415,986,000 for the nine months ended September 30, 2025.

The primary other sources of cash were proceeds from common stock offerings and borrowings on unsecured bank credit facilities.

The Company distributed $146,299,000 in common stock dividends during the six months ended June 30, 2025.

The Company distributed $219,955,000 in common stock dividends during the nine months ended September 30, 2025.

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

repayments on unsecured debt and unsecured bank credit facilities;

purchases of real estate properties;

and capital improvements at various properties.

As of June 30, 2025, the Company was contractually obligated to pay the dividend declared in May 2025, which was paid in July 2025.

An amount for dividends payable of $74,932,000 was included in Accounts payable and accrued expenses at June 30, 2025, which includes dividends payable on unvested restricted stock of $1,277,000, which are subject to continued service and will be paid upon vesting in future periods.

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

As of September 30, 2025, the Company was contractually obligated to pay the dividend declared in August 2025, which was paid in October 2025.

An amount for dividends payable of $84,341,000 was included in Accounts payable and accrued

expenses at September 30, 2025, which includes dividends payable on unvested restricted stock of $1,788,000, which are subject to continued service and will be paid upon vesting in future periods.

MATURITY DATES Weighted Average Interest Rate (1)

1 unchanged sentence

(In thousands)

August 28, 2025 3.80% $ 20,000

October 1, 2025 3.97% $ 25,000

October 7, 2025 3.99% 50,000

Year 2026 2.56% 140,000

October 10, 2026 2.08% 100,000

December 15, 2026 3.75% 40,000

Year 2027 2.74% 175,000

7 unchanged sentences

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

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%.

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 June 30, 2025, was 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 rate of 5.162%.

The interest rate on each tranche is reset on a monthly basis and as of September 30, 2025, was 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.

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

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”).

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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.

During the six months ended June 30, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its ATM program at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.

During the six months ended June 30, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under the Current ATM Program with respect to 1,063,825 shares of common stock with an initial weighted average forward price of $181.89 per share.

During the nine months ended September 30, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its ATM program at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.

During the nine months ended September 30, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under the Current ATM Program with respect to 1,063,825 shares of common stock with an initial weighted average forward price of $181.89 per share.

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

Also during the six months ended June 30, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into under its ATM programs by issuing 801,320 shares of common stock in exchange for net proceeds of approximately $141,000,000.

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

As of July 22, 2025, the Company had no outstanding forward shares available for settlement.

As of July 22, 2025, approximately $520,101,000 of common stock remains available to be sold.

Also during the nine months ended September 30, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into under its ATM programs by issuing 1,449,078 shares of common stock in exchange for net proceeds of approximately $258,066,000.

As of October 22, 2025, the Company had no outstanding forward shares available for settlement.

As of October 22, 2025, approximately $520,101,000 of common stock remains available to be sold.

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

EastGroup’s other material cash requirements from known contractual and other obligations, including real estate property obligations, development and value-add obligations and tenant improvements as of December 31, 2024, did not materially change during the six months ended June 30, 2025.

The Company has no material off-balance sheet arrangements that have had or are reasonably likely to have a material current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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Land is valued using comparable land sales specific to the applicable market, provided by a third party.

The Company determines whether any financing assumed is above or below market based upon comparison to similar

financing terms for similar properties.

The Company determines whether any financing assumed is above or below market based upon comparison to similar financing terms for similar properties.

The cost of the properties acquired may be adjusted based on indebtedness assumed from the seller that is determined to be above or below market rates.

11 unchanged sentences

See Note 21 in the Notes to Consolidated Financial Statements.

SUPPLEMENTAL U.S.

FEDERAL INCOME TAX CONSIDERATIONS

The following discussion supplements and updates the disclosures under the heading “Certain United States Federal Income Tax Considerations” in the prospectus dated December 16, 2022, contained in our Registration Statement on Form S-3 (File No.

333-268821) filed with the Securities and Exchange Commission (the “SEC”) on December 16, 2022, (the “S-3 Tax Disclosure”) and as supplemented by the disclosures under the heading “Supplemental U.S.

Federal Income Tax Considerations” in our Annual Report on Form 10-K filed with the SEC on February 12, 2025 (together with the S-3 Tax Disclosure, the “Existing Tax Disclosure”).

Capitalized terms herein that are not otherwise defined shall have the same meaning as when used in the Existing Tax Disclosure.

On July 4, 2025, H.R.

1, informally known as the One Big Beautiful Bill Act (the “OBBB”), was enacted.

The OBBB makes major changes to the Code, including some provisions of the Code that affect the taxation of REITs and their investors.

In particular:

• For taxable years beginning on or after January 1, 2026, the OBBB relaxed the REIT asset test requirement with respect to taxable REIT subsidiaries, providing that not more than 25% (relaxed from 20%) of the gross value of a REIT’s assets may be represented by securities of one or more taxable REIT subsidiaries.

• The OBBB permanently extended the section 199A pass-through qualified business income deduction, generally allowing certain individuals, trusts and estates to deduct 20% of the aggregate amount of qualified REIT dividends distributed by a REIT.

This deduction was due to expire for tax years beginning after December 31, 2025.

To the extent the information set forth in the Existing Tax Disclosure is inconsistent with this supplemental information, this supplemental information supersedes the information in the Existing Tax Disclosure.

This supplemental information is provided on the same basis and subject to the same qualifications as are set forth in the first six paragraphs of the S-3 Tax Disclosure as if those paragraphs were set forth in this Quarterly Report on Form 10-Q.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis