What changed in this filing

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Item 7. Management’s Discussion and Analysis

2026-02-11 compared with 2025-02-12 · 101 added, 114 removed, 367 unchanged (37% of the section changed)

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EastGroup’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location-sensitive customers (primarily in the 20,000 to 100,000 square foot range).

The Company develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply-constrained submarkets in major Sunbelt regions.

The Company develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply-constrained submarkets in high-growth regions.

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

During 2024, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about supply chain or trade disruptions, particularly between the United States, Mexico and Canada and geopolitical conflict.

During 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’s operations during 2025, they may adversely impact the Company in the future.

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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 2024, the Company settled outstanding forward equity sale agreements that were previously entered into under its ATM programs by issuing 2,698,077 shares of common stock in exchange for net proceeds of approximately $480,663,000.

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.

Also during 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.

During 2025, EastGroup also closed $250,000,000 of unsecured debt with a weighted average effectively fixed interest rate of 4.13%.

EastGroup’s financing and equity issuances are further described in Liquidity and Capital Resources .

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As of February 10, 2026, the operating portfolio was 96.5% leased and 96.1% occupied.

As of December 31, 2024, leases approximating 10.1% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire in 2025.

As of December 31, 2025, leases approximating 13.1% of the operating portfolio, based on a percentage of annualized base rent, were scheduled to expire in 2026.

This percentage was reduced to 12.4% as of February 10, 2026.

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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 year ended December 31, 2024, EastGroup purchased 61.1 acres of land in two markets for a total of $13,762,000.

The Company began construction of 10 development projects containing 1,585,000 square feet in seven markets.

Also in 2024, the Company transferred seven development and value-add projects (1,519,000 square feet) in six markets from its development and value-add program to real estate properties, with costs of $199,971,000 at the date of transfer.

During the year ended December 31, 2025, EastGroup purchased 300.4 acres of land in four markets for a total of $118,584,000.

The Company began construction of a redevelopment project and six development projects containing 1,439,000 square feet in five markets.

Also in 2025, the Company transferred 11 development and value-add projects (2,109,000 square feet) in seven markets from its development and value-add program to real estate properties, with costs of $279,082,000 at the date of transfer.

As of December 31, 2025, EastGroup’s development and value-add program consisted of 17 projects (3,473,000 square feet) located in 12 markets.

The projected total cost for the development and value-add projects, which were collectively 18.8% leased as of February 10, 2026, is $499,900,000, of which $161,317,000 remained to be invested as of December 31, 2025.

During the year ended December 31, 2024, EastGroup acquired 2,474,000 square feet of operating properties in six markets for a total of $390,011,000.

During the year ended December 31, 2025, EastGroup acquired 739,000 square feet of operating properties in three markets for a total of $143,099,000.

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

During the year ended December 31, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market, containing 159,000 square feet and disposed of 5.4 acres of land in two markets, generating gross sales proceeds of $18,311,000.

The Company recognized $8,751,000 in Gain on sales of real estate investments and $362,000 in gains on sales of non-operating real estate (included in Other on the Consolidated Statements of Income and Comprehensive Income) during the year ended December 31, 2024.

In the near term, the Company funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed below in Liquidity and Capital Resources ).

During the year ended December 31, 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.

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

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 short-term bank borrowings.

Moody’s Investors Service has assigned the Company’s issuer rating of Baa2 with a stable outlook.

In May 2025, Moody’s Ratings affirmed EastGroup's issuer rating of Baa2 and changed its rating outlook from stable to positive.

A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency.

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For future debt issuances, the Company intends to issue primarily unsecured fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps.

The Company may also access the public debt market in the future as a means to raise capital.

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

Investors and industry analysts following the real estate industry primarily utilize two supplemental operating performance measures in analyzing the Company's operating results:

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the Company also presents Same PNOI Excluding Income from Lease Terminations.

Same Properties is defined as operating properties owned during the entire current period and prior year reporting period.

Same Properties is defined as operating properties owned during the entire

current period and prior year reporting period.

Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods.

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PNOI from 2024 and 2025 operating property dispositions

(177) (2,819) *

Other PNOI 1,089 208 *

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• For the year ended December 31, 2025, PNOI increased by $63,350,000, or 13.6%, compared to 2024.

PNOI increased $20,089,000 from same property operations, $18,354,000 from newly developed and value-add properties and $15,915,000 from 2023 and 2024 acquisitions;

PNOI decreased $2,642,000 from operating properties sold in 2023 and 2024.

PNOI increased $29,889,000 from same property operations, $23,178,000 from 2024 and 2025 acquisitions and $11,504,000 from newly developed and value-add properties.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through December 31, 2025).

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EastGroup’s Total Assets were $5,431,807,000 at December 31, 2025, an increase of $354,331,000 from December 31, 2024.

Total Liabilities decreased $125,647,000 to $1,784,932,000, and Total Equity increased $683,910,000 to $3,292,544,000 during the same period.

Total Liabilities increased $150,287,000 to $1,935,219,000, and Total Equity increased $204,044,000 to $3,496,588,000 during the same period.

The following paragraphs explain these changes in greater detail.

Real Estate Properties

Real estate properties increased $486,344,000 during the year ended December 31, 2025.

The increase was primarily due to:

(i) the acquisition of operating properties;

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

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

(ii) the acquisition of operating properties;

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

(iv) right of use assets for the Company’s ground leases;

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

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

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

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

During 2025, EastGroup acquired the following operating properties:

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Operating properties acquired

Spanish Ridge Industrial Park Las Vegas, NV 231,000 01/23/2024 $ 54,859

147 Exchange Raleigh, NC 274,000 05/03/2024 52,945

Hays Commerce Center 3 & 4 Austin, TX 179,000 08/19/2024 35,781

Riverpoint Industrial Park Atlanta, GA 779,000 11/12/2024 87,576

DFW Global Logistics Centre 5-8 (4)

Dallas, TX 492,000 11/21/2024 75,852

Akimel Gateway (4)

Phoenix, AZ 519,000 12/26/2024 82,998

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

EastGroup Point at Cheyenne Las Vegas, NV 101,000 12/09/2025 21,134

Total operating property acquisitions (2)(3)

739,000 $ 143,099

(1) Cost is calculated in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs.

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(3) Excludes acquired development land as discussed below.

(4) This operating property is located on land subject to a ground lease.

See Note 2 of the Consolidated Financial Statements for further details.

During the year ended December 31, 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 year ended December 31, 2025, the Company made capital improvements of $75,653,000 on existing and acquired properties (included in the Real Estate Improvements table under Results of Operations ).

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

Also, during the year ended December 31, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet, generating gross sales proceeds of $14,050,000.

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

Development and Value-Add Properties

EastGroup’s investment in Development and value-add properties at December 31, 2024 consisted of properties in lease-up and under construction of $424,068,000 and prospective development (primarily land) of $250,404,000.

Development and value-add properties at December 31, 2025 consisted of properties in lease-up and under construction of $338,583,000 and prospective development (primarily land) of $371,617,000.

The Company’s total investment in Development and value-add properties at December 31, 2025 was $710,200,000 compared to $674,472,000 at December 31, 2024.

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There were no value-add acquisitions during the year ended December 31, 2025.

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

Also during 2025, EastGroup purchased 300.4 acres of development land in four markets for $118,584,000.

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

These increases were offset by the transfer of seven development and value-add projects to Real estate properties with a total investment of $199,971,000 as of the date of transfer.

During the year ended December 31, 2024, EastGroup sold 5.4 acres of land in two markets, generating gross sales proceeds of $4,261,000.

The Company recognized $362,000 in gains on sales of non-operating real estate (included in Other on the Consolidated Statements of Income and Comprehensive Income) during the year ended December 31, 2024.

These increases were offset by the transfer of 11 development and value-add projects to Real estate properties with a total investment of $279,082,000 as of the date of transfer.

A summary of the Company’s Development and Value-Add Properties for the year ended December 31, 2025 follows:

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2,109,000 $ 279,082 (2)

(1) Included in these costs are development obligations of $94,201,000 and tenant improvement obligations of $9,552,000 on properties under development.

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

Accumulated Depreciation

Accumulated depreciation on real estate, development and value-add properties increased $141,853,000 during 2024 due primarily to depreciation expense of $155,240,000, which increased due to operating properties acquired in 2023 and 2024 and properties transferred to Real estate properties .

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

Other assets increased $38,220,000 during 2024.

Accumulated depreciation on real estate, development and value-add properties increased $167,956,000 during 2025 due primarily to depreciation expense of $176,180,000 and partially offset by write-offs of fully depreciated assets.

Cash and cash equivalents decreased $16,522,000 during 2025.

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

Other assets, net increased $17,178,000 during 2025.

See Note 4 in the Notes to Consolidated Financial Statements for further details.

Unsecured bank credit facilities, net of debt issuance costs decreased $2,075,000 during the year ended December 31, 2024, mainly due to repayments of $64,968,000 and new debt issuance costs incurred during the year, offset by borrowings of $64,968,000 and the amortization of debt issuance costs during the year.

Unsecured bank credit facilities, net of debt issuance costs increased $19,844,000 during the year ended December 31, 2025, mainly due to borrowings of $340,344,000, partially offset by repayments of $321,499,000 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 $169,190,000 during the year ended December 31, 2024, primarily due to the repayment of a $50,000,000 term loan in August and $120,000,000 in principal repayments on the Company's senior unsecured notes in December.

Unsecured debt, net of debt issuance costs increased $103,869,000 during the year ended December 31, 2025, primarily due to closing $250,000,000 of unsecured debt, partially offset by repayments of $145,000,000 of unsecured debt and debt issuance costs 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 .

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Additional paid-in capital increased $273,399,000 during the year ended December 31, 2025, primarily due to the issuance of common stock under the Company’s ATM programs (as discussed in Note 9 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 10 in the Notes to Consolidated Financial Statements).

During the year ended December 31, 2024, Distributions in excess of earnings increased $36,699,000 as a result of dividends on common stock of $264,450,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Distributions in excess of earnings increased $55,781,000 during the year ended December 31, 2025, as a result of dividends on common stock of $313,183,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders of $257,402,000.

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• PNOI was $528,345,000 ($10.00 per diluted share) for the year ended December 31, 2025, compared to $464,995,000 ($9.51 per diluted share) for the year ended December 31, 2024.

PNOI increased $20,089,000 from same property operations, $18,354,000 from newly developed and value-add properties and $15,915,000 from 2023 and 2024 acquisitions;

PNOI decreased $2,642,000 from operating properties sold in 2023 and 2024.

Straight-lining of rent increased Income from real estate operations by $11,450,000 and $11,289,000 in 2024 and 2023, respectively.

• EastGroup recognized Gains on sales of real estate investments of $8,751,000 ($0.18 per diluted share) during 2024, compared to $17,965,000 ($0.40 per diluted share) during 2023.

PNOI increased $29,889,000 from same property operations, $23,178,000 from 2024 and 2025 acquisitions and $11,504,000 from newly developed and value-add properties.

Income recognized from straight-lining of rent increased by $5,777,000 for the year ended December 31, 2025, as compared to the same period of 2024.

• EastGroup did not recognize Gains on sales of real estate investments during 2025.

During the year ended December 31, 2024, EastGroup recognized $8,751,000 ($0.18 per diluted share) in Gains on sales of real estate investments .

The Company’s sales transactions are described in Note 2 of the Notes to Consolidated Financial Statements.

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These increases are partially offset by operating properties sold in 2024 and 2025.

• Interest expense recognized was $38,956,000 ($0.80 per diluted share) during 2024, compared to $47,996,000 ($1.06 per diluted share) during 2023.

• Interest expense recognized was $32,113,000 ($0.61 per diluted share) during 2025, compared to $38,956,000 ($0.80 per diluted share) during 2024, which was a decrease of $0.19 per share.

See the table below for details.

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• Weighted average shares outstanding increased by 3,903,000, on a diluted basis, during 2025 compared to 2024.

The increase is primarily due to issuance of shares through the Company's offering programs, as discussed in Liquidity and Capital Resources .

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

EastGroup entered into 156 leases with certain rent concessions on 4,555,000 square feet during 2025 with total rent concessions of $10,894,000 over the terms of the leases, compared to 133 leases with rent concessions on 4,932,000 square feet with total rent concessions of $12,192,000 over the terms of the leases in 2024.

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Years Ended December 31,

VARIABLE RATE INTEREST EXPENSE 2024 2023 Increase (Decrease)

2025 2024 Increase (Decrease)

(In thousands)

VARIABLE RATE INTEREST EXPENSE

Unsecured bank credit facilities interest — Variable rate

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49,703 55,742 (6,039)

Secured debt interest (excluding amortization of debt issuance costs)

Amortization of debt issuance costs — Unsecured debt 807 878 (71)

Amortization of debt issuance costs — secured debt — 31 (31)

Total fixed rate interest expense 50,510 56,620 (6,110)

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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 12 in the Notes to Consolidated Financial Statements.

EastGroup’s variable rate interest expense decreased by $2,653,000 for 2024 as compared to 2023 primarily due to a decrease in average borrowings, partially offset by an increase in the Company’s weighted average variable interest rates on its unsecured bank credit facilities as shown in the following table:

EastGroup’s variable rate interest expense increased by $1,174,000 for 2025 as compared to 2024 primarily due to an increase in average borrowings, partially offset by a decrease in the Company’s weighted average variable interest rates on its unsecured bank credit facilities as shown in the following table:

Years Ended December 31,

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(excluding amortization of facility fees and debt issuance costs)

4.90 % 6.25 %

The Company’s fixed rate interest expense decreased by $6,110,000 for 2025 as compared to 2024 primarily as a result of the unsecured debt activity described below.

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UNSECURED DEBT REPAID IN 2024 AND 2025

Interest Rate Date Repaid Payoff Amount

Interest Rate Date Repaid Principal Amount

(In thousands)

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$60 Million Senior Unsecured Notes 3.46% 12/13/2024 60,000

$60 Million Senior Unsecured Notes 3.48% 12/15/2024 60,000

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

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$25 Million Senior Unsecured Notes 3.97% 10/01/2025 25,000

Weighted Average Effectively Fixed Interest Rate and Total Payoff

$50 Million Senior Unsecured Notes 3.99% 10/07/2025 50,000

Weighted Average Effectively Fixed Interest Rate and Total Principal

Amount for 2024 and 2025

3.41% $ 315,000

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

In January 2025, the Company refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%.

The loan, which previously had five years remaining, was modified to a three year maturity with two one-year extension options, at the Company's election.

In November 2025, the Company entered into amendments related to five senior unsecured term loans totaling $475,000,000, which reduced the credit spread by 10 basis points on each loan.

During 2024, EastGroup did not enter into or refinance any unsecured debt agreements.

The decrease in interest expense from unsecured debt was partially offset by new unsecured debt obtained during the year ended December 31, 2025:

NEW UNSECURED DEBT IN 2025

Margin Effectively Fixed Interest Rate Date Obtained Maturity Date Amount

Margin Effectively Fixed Interest Rate Date Obtained Maturity Date Principal Amount

(In thousands)

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0.85% 4.11% 11/19/2025 04/30/2030 $ 100,000

(1) The interest rate on this unsecured term loan is comprised of Term Secured Overnight Financing Rate ( “ SOFR ” ) plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings.

The Company entered into an interest rate swap agreement (further described in Note 12 in the Notes to Consolidated Financial Statements) to convert the loan’s Term SOFR rate to an effectively fixed interest rate.

The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swap, as of December 31, 2024.

During 2024, EastGroup did not enter into or refinance any unsecured debt agreements.

$150 Million Senior Unsecured Term Loan (1)

0.85% 4.15% 11/19/2025 03/14/2031 150,000

Weighted Average Interest Rate/Total Principal

Amount for 2025

4.13% $ 250,000

(1) The interest rate on this unsecured term loan is comprised of Daily Secured Overnight Financing Rate ( “ SOFR ” ) plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings.

The Company entered into interest rate swap agreements (further described in Note 12 in the Notes to Consolidated Financial Statements) to convert the loan’s SOFR rate to an effectively fixed interest rate.

The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swaps, as of December 31, 2025.

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

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Capitalized Leasing Costs

The Company’s leasing costs (principally commissions) are capitalized and included in Other assets .

The Company’s leasing costs (principally third party commissions) are capitalized and included in Other assets, net .

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

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A discussion of changes in the Company’s results of operations between 2024 and 2023 has been omitted from this Form 10-K and can be found in “Part II.

Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “2023 Compared to 2022” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 14, 2024, and is incorporated herein by reference.

Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “2024 Compared to 2023” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 12, 2025.

LIQUIDITY AND CAPITAL RESOURCES

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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 December 31, 2024, EastGroup had total immediate liquidity of approximately $757,320,000, comprised of $17,529,000 of cash and cash equivalents, $672,345,000 of availability on our unsecured bank credit facilities, and approximately $67,446,000 of gross proceeds available on its outstanding forward equity sale agreements.

As of December 31, 2025, EastGroup had total immediate liquidity of approximately $654,574,000, comprised of $1,007,000 of cash and cash equivalents and $653,567,000 of availability on our unsecured bank credit facilities.

See further details discussed below.

Net cash provided by operating activities was $480,734,000 for the year ended December 31, 2025.

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

borrowings on unsecured bank credit facilities;

and net proceeds from sales of real estate investments.

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

The Company distributed $302,507,000 in common stock dividends during 2025.

The Company also paid $390,011,000 related to the purchase of real estate property.

Other primary uses of cash were for the

construction and development of properties;

repayments on unsecured bank credit facilities and unsecured debt;

Other primary uses of cash were repayments on unsecured bank credit facilities and unsecured debt;

the construction and development of properties;

purchases of real estate properties;

capital improvements at various properties;

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(In thousands)

March 18, 2025 1.58% $ 50,000

August 28, 2025 3.80% 20,000

October 10, 2026 1.98% $ 100,000

October 7, 2025 3.99% 50,000

December 15, 2026 3.75% 40,000

Year 2027 2.64% 175,000

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

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

In December 2024, the Company made principal repayments of two senior unsecured notes totaling $120,000,000.

The Company currently intends to repay its debt obligations, both in the short-term and long-term, through its operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt (primarily unsecured), and/or proceeds from the issuance of equity instruments.

In January 2025, EastGroup refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%.

The loan, which previously had five years remaining, was modified to a three year maturity with two one-year extension options, at the Company's election.

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

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%.

In October 2025, the Company repaid two maturing senior unsecured notes totaling $75,000,000.

Senior unsecured notes with a principal balance of $25,000,000 had a fixed interest rate of 3.97%.

The other senior unsecured notes with a principal balance of $50,000,000 had a fixed interest rate of 3.99%.

Both payments were made at maturity.

Subsequent to year end, EastGroup refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%.

The loan, which previously had five years remaining, now has a three-year maturity with two, one-year extension options, at the Company's election.

On June 13, 2024, EastGroup entered into amended and restated credit agreements related to its $625,000,000 and $50,000,000 unsecured bank credit facilities, to extend the maturity dates from July 30, 2025 to July 31, 2028.

There were no other material changes to the credit facilities, which are outlined below.

In November 2025, the Company entered into a term loan agreement, separated into two tranches.

One tranche provides a $100,000,000 term loan with a term of approximately 4.5 years and an effectively fixed interest rate of 4.11% with interest-only payments.

The second tranche provides a $150,000,000 term loan with a term of approximately 5.5 years and an effectively fixed interest rate of 4.15% with interest-only payments.

At the Company's option, the term loans bear interest at an annual rate of the Daily Simple SOFR (as defined in the term loan agreement) plus an applicable margin (0.85% as of December 31, 2025) based on the Company’s senior unsecured long-term debt rating.

The Company also entered into interest rate swap agreements to convert the loans' SOFR rate component to a fixed interest rate for the entire terms of the loans, providing effectively fixed interest rates for each loan.

Also in November 2025, the Company entered into amendments related to five senior unsecured term loans totaling $475,000,000, which reduced the credit spread by 10 basis points on each loan.

The Company has a $625,000,000 unsecured bank credit facility with a group of 10 banks, which has a maturity date of July 31, 2028.

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

The interest rate on each tranche is reset on a monthly basis and as of December 31, 2024, was Term SOFR plus 76.5 basis points with an annual facility fee of 15 basis points.

As of December 31, 2024, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 5.222%.

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

The Company has a $50,000,000 unsecured bank credit facility with a maturity date of July 31, 2028, or such later date as designated by the bank;

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

The interest rate is reset on a daily basis and as of December 31, 2024, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of December 31, 2025, the interest rate was 4.451% with no outstanding balance.

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

Although the Company’s current credit rating is Baa2, given the strength of the Company’s key credit metrics, initial pricing for the credit facilities is based on the BBB+/Baa1 credit ratings level.

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

The $625,000,000 facility is also subject to a sustainability-linked pricing component, pursuant to which the applicable interest rate margin is adjusted if the Company meets a certain sustainability performance target.

This sustainability metric is evaluated annually and was achieved for the years ended December 31, 2024, 2023 and 2022, which allowed for the interest rate reduction in each of the years subsequent to achieving the metric.

The margin was effectively reduced on this unsecured bank credit facility for the years ended December 31, 2024 and 2023, by one basis point, from 77.5 to 76.5 basis points.

The Company’s unsecured bank credit facilities have certain restrictive covenants, such as maintaining minimum debt service coverage and leverage ratios and maintaining insurance coverage, and the Company was in compliance with all of its financial debt covenants at December 31, 2024.

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

The Current ATM Program replaced our previous $750,000,000 ATM program (the “Prior ATM Program”), which was established on October 25, 2023, under which we had sold shares of our common stock having an aggregate gross sales price of $746,153,000 through October 25, 2024.

In connection with the Current ATM program, we may sell shares of our common stock through sales agents or through certain financial institutions acting as forward purchasers whereby, at our discretion, the forward counterparties may borrow from third parties and subsequently sell shares of our common stock.

The Company also has a $50,000,000 unsecured bank credit facility with a maturity date of July 31, 2028.

As of December 31, 2025, the Company had variable rate borrowings totaling $18,845,000 on this unsecured bank credit facility and an interest rate of 4.545%.

The Company's unsecured bank credit facilities are further discussed in Note 5 in the Notes to Consolidated Financial Statements.

On December 5, 2025, we established an ATM common stock offering program pursuant to which we are able to sell from time to time shares of our common stock having an aggregate gross sales price of up to $1,000,000,000 (the “Current ATM Program”).

The Current ATM Program replaced our previous $1,000,000,000 ATM program (the “Prior ATM Program”), which was established on October 25, 2024, under which we had sold shares of our common stock having an aggregate gross sales price of $479,899,000 through December 5, 2025.

In connection with the Current ATM program, we may sell shares of our common stock through sales agents or through certain financial institutions acting as forward counterparties whereby, at our discretion, the forward counterparties, or their agents or affiliates, may borrow from third parties and subsequently sell shares of our common stock.

The use of a forward equity sale agreement allows us to lock in a share price on the sale of shares of our common stock but defer settling and receiving the proceeds from the sale of shares until a later date.

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Also during the year ended December 31, 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.

Subsequent to December 31, 2024, EastGroup settled outstanding forward equity sale agreements that were previously entered into under the Current ATM Program by issuing 214,138 shares of common stock in exchange for net proceeds of approximately $37,005,000.

As of February 12, 2025, the date of this Annual Report on Form 10-K, the Company had 171,115 shares of common stock, or approximately $29,688,000 of net proceeds, based on a weighted average forward price of $173.50 per share, available for settlement before the applicable settlement period expires in November 2025.

As of February 12, 2025, approximately $719,665,000 of common stock remains available to be sold under the Current ATM Program.

As of February 11, 2026, the Company had no outstanding forward shares available for settlement.

As of February 11, 2026, $1,000,000,000 of common stock remains available to be sold under the Current ATM Program.

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.

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(5) Represents ground lease payments due within one year.

The Company also estimates future minimum ground lease payments of $148,849,000, due within the current lease terms of its ground leases.

The Company also estimates future minimum ground lease payments of $161,476,000, due in years 2027 and thereafter, based on the current lease terms of its ground leases.

With the renewal options excluded, expiration dates range from August 2031 to December 2085.

12 unchanged sentences

The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate reflecting the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be paid pursuant to the lease over its remaining term, and (ii) management’s estimate of the amounts that would be paid using current market rents over the remaining term of the lease.

The amounts allocated to above and below market lease intangibles are included in Other assets and Other liabilities , respectively, on the Consolidated Balance Sheets and are amortized to rental income over the remaining terms of the respective leases.

In-place lease intangibles are valued based upon management’s assessment of factors such as an estimate of foregone rents and avoided leasing costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.

These intangible assets are included in Other assets on the Consolidated Balance Sheets and are amortized over the remaining term of the existing lease.

The amounts allocated to above and below market lease intangibles are included in Other assets, net and Other liabilities , respectively, on the Consolidated Balance Sheets and are amortized to rental income over the remaining terms of the respective leases.

In-place lease intangibles are valued based upon management’s assessment of factors such as an estimate of forgone rents and avoided leasing costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.

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

The significance of this accounting policy will fluctuate given the transaction activity during the period.

For properties included in Development and value-add properties , costs associated with development (i.e., land, construction costs, interest expense, property taxes and other costs associated with development) are aggregated into the total capitalized costs of the property.

Included in these costs are management’s estimates for the portions of internal costs (primarily personnel

costs) deemed related to such development activities.

Included in these costs are management’s estimates for the portions of internal costs (primarily personnel costs) deemed related to such development activities.

The internal costs are allocated to specific development projects based on development activity.

2 unchanged sentences

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-K

Item 7. Management’s Discussion and Analysis