What changed in this filing

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Item 1. Financial Statements

2026-04-22 compared with 2025-10-23 · 124 added, 220 removed, 606 unchanged (36% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2026 December 31,

5 unchanged sentences

5,153,967 5,116,456

Real estate assets held for sale 1,352 —

Unconsolidated investment 6,885 7,007

12 unchanged sentences

70,000,000 shares authorized;

53,348,644 shares

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

53,755,161 shares issued

and outstanding at March 31, 2026 and 53,348,800 at December 31, 2025

Excess shares;

13 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended Nine Months Ended

September 30, September 30,

2025 2024 2025 2024

Three Months Ended

(In thousands, except per share data)

10 unchanged sentences

Gain on sales of real estate investments 24,885 —

Other 447 582 1,510 1,874

Other income 2,423 510

NET INCOME 94,624 59,437

2 unchanged sentences

COMMON STOCKHOLDERS 94,624 59,423

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

Other comprehensive income (loss) — Interest rate swaps 1,979 ( 6,927 )

TOTAL COMPREHENSIVE INCOME $ 96,603 52,496

11 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the nine months ended September 30, 2025:

For the three months ended March 31, 2026:

Common Shares Additional

19 unchanged sentences

— ( 8 ) — — — ( 8 )

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

BALANCE, MARCH 31, 2026 $ 5 4,014,198 ( 447,946 ) 10,336 387 3,576,980

Net income — — 63,299 — 14 63,313

Net unrealized change in fair value of interest rate swaps — — — ( 4,136 ) — ( 4,136 )

Common dividends declared — $ 1.40 per

— — ( 73,873 ) — — ( 73,873 )

Stock-based compensation, net of forfeitures

— 2,668 — — — 2,668

Issuance of 416,067 shares of common

stock, common stock offering, net of expenses

— 74,061 — — — 74,061

Withheld 122 shares of common stock to

satisfy tax withholding obligations in

connection with the issuance of common

— ( 21 ) — — — ( 21 )

Net distributions to noncontrolling interest — — — — ( 58 ) ( 58 )

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

Net income — — 66,943 — 14 66,957

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

Common dividends declared — $ 1.55 per

— — ( 83,065 ) — — ( 83,065 )

Stock-based compensation, net of forfeitures

— 3,081 — — — 3,081

Issuance of 647,758 shares of common

stock, common stock offering, net of

— 117,014 — — — 117,014

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

Contributions from noncontrolling interest — — — — 83 83

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

See accompanying Notes to Consolidated Financial Statements (unaudited).

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the nine months ended September 30, 2024:

For the three months ended March 31, 2025:

Common Shares Additional

20 unchanged sentences

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

Contributions from noncontrolling interest — — — — 62 62

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

Net income — — 55,287 — 14 55,301

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

Common dividends declared — $ 1.27 per

— — ( 61,889 ) — — ( 61,889 )

Stock-based compensation, net of forfeitures

— 2,644 — — — 2,644

Issuance of 639,299 shares of common stock,

common stock offering, net of expenses

— 112,710 — — — 112,710

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

— ( 10 ) — — — ( 10 )

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

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

Net income — — 55,180 — 14 55,194

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

Common dividends declared — $ 1.40 per

— — ( 68,898 ) — — ( 68,898 )

Stock-based compensation, net of forfeitures

— 3,012 — — — 3,012

Issuance of 540,252 shares of common

stock, common stock offering, net of

— 92,210 — — — 92,210

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

— ( 3 ) — — — ( 3 )

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

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

See accompanying Notes to Consolidated Financial Statements (unaudited).

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands)

5 unchanged sentences

Gain on sales of real estate investments ( 24,885 ) —

Gain on sales of non-operating real estate — ( 222 )

Gain on involuntary conversion and business interruption claims ( 1,950 ) ( 1,763 )

23 unchanged sentences

Other ( 6,141 ) ( 4,161 )

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

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

NET CASH USED IN FINANCING ACTIVITIES ( 39,800 ) ( 54,608 )

INCREASE IN CASH AND CASH EQUIVALENTS 30,351 2,986

CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 1,007 17,529

4 unchanged sentences

Cash paid for operating lease liabilities 983 822

SUPPLEMENTAL NON-CASH BALANCES AT END OF PERIOD

Development costs payable $ 10,214 22,679

Retainage payable 7,300 11,838

Real estate improvements and capitalized leasing costs payable 8,007 9,593

Dividends payable 84,658 74,153

See accompanying Notes to Consolidated Financial Statements (unaudited).

10 unchanged sentences

(2) PRINCIPLES OF CONSOLIDATION

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

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

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

As of March 31, 2026 and December 31, 2025, EastGroup held a controlling interest in two joint venture arrangements.

The Company had a 95 % controlling interest in a joint venture arrangement owning 6.5 acres of land in San Diego, known by the Company as Miramar Land.

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

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

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

The equity method of accounting is used for the Company’s 50 % undivided tenant-in-common interest in Industry Distribution Center 2.

5 unchanged sentences

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

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

Three Months Ended

September 30, Nine Months Ended September 30,

2025 2024 2025 2024

The table below presents the components of Income from real estate operations for the three months ended March 31, 2026 and 2025:

Three Months Ended March 31,

(In thousands)

19 unchanged sentences

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

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

During the three month periods ended March 31, 2026 and 2025, the Company did not identify any impairment charges which should be recorded.

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

1 unchanged sentence

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

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

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

September 30,

Depreciation expense was $ 45,199,000 and $ 42,308,000 for the three months ended March 31, 2026 and 2025, respectively.

The Company’s Real estate properties and Development and value-add properties at March 31, 2026 and December 31, 2025 were as follows:

2026 December 31,

9 unchanged sentences

6,762,335 6,699,988

Less accumulated depreciation ( 1,540,937 ) ( 1,415,576 )

Accumulated depreciation ( 1,608,368 ) ( 1,583,532 )

$ 5,153,967 5,116,456

6 unchanged sentences

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

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

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

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

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

Costs associated with development (i.e., land, construction costs, interest expense, property taxes and other costs associated with development) are aggregated into the total capitalized costs of the property.

3 unchanged sentences

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

(1) for development properties, at the earlier of 90% occupancy or one year after completion of the shell construction, and (2) for value-add properties, at the earlier of 90% occupancy or one year after acquisition or completion of redevelopment, as applicable.

(i) for development properties, at the earlier of 90% occupancy or one year after completion of the shell construction, and (ii) for value-add properties, at the earlier of 90% occupancy or one year after acquisition or completion of redevelopment, as applicable.

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

8 unchanged sentences

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

EastGroup determined that its real estate property acquisitions in 2024 and the first nine months of 2025 are considered to be acquisitions of groups of similar identifiable assets;

EastGroup determined that its real estate property acquisitions in 2025 and the first three months of 2026 are considered to be acquisitions of groups of similar identifiable assets;

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

11 unchanged sentences

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

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

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

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

Net amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $ 1,576,000 and $ 1,567,000 for the three months ended March 31, 2026 and 2025, respectively.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 3,044,000 and $ 3,218,000 for the three months ended March 31, 2026 and 2025, respectively.

During the three months ended March 31, 2026, EastGroup acquired the following properties:

REAL ESTATE PROPERTIES ACQUIRED IN 2026

3 unchanged sentences

Operating properties acquired (2)

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

Legend Point Logistics Crossing 2 & 3 Jacksonville, FL 177,000 02/18/2026 $ 38,130

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

2 unchanged sentences

Excludes acquired development land as discussed below.

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

There were no acquisitions of value-add properties or development land during the three months ended March 31, 2026.

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which were acquired during the nine months ended September 30, 2025.

The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisition identified in the table above which was acquired during the three months ended March 31, 2026.

ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2026

(In thousands)

Land $ 25,439

Buildings and building improvements 30,629

9 unchanged sentences

These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition.

The leases in the properties acquired during the nine months ended September 30, 2025 had a weighted average remaining lease term at acquisition of approximately 9.5 years.

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

The leases in the properties acquired during the three months ended March 31, 2026 had a weighted average remaining lease term at acquisition of approximately 4.0 years.

During 2025, EastGroup acquired the following properties:

4 unchanged sentences

Operating properties acquired (2)

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

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

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

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

DFW Global Logistics Centre 5-8 (2)

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

Akimel Gateway (2)

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

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 739,000 $ 143,099

2,474,000 $ 390,011

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

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

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

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

1 unchanged sentence

Excludes acquired development land as discussed below.

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

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

EASTGROUP PROPERTIES, INC.

7 unchanged sentences

Tenant and other improvements 6,800

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

Total real estate properties acquired 139,895

2 unchanged sentences

Below market lease intangibles (2)

Operating lease liabilities — Ground leases (3)

Total assets acquired, net of liabilities assumed $ 143,099

3 unchanged sentences

These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition.

(3) Operating lease liabilities — Ground leases are included in Other liabilities on the Consolidated Balance Sheets.

These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition.

The leases in the properties acquired during the year ended December 31, 2025 had a weighted average remaining lease term at acquisition of approximately 9.2 years.

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 .

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

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

No impairment of goodwill or other intangibles existed during the three month periods ended March 31, 2026 and 2025.

(8) REAL ESTATE SOLD AND HELD FOR SALE

1 unchanged sentence

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

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

As of March 31, 2026, the Company owned one operating property, Beach Commerce Center, that was classified as Real estate assets held for sale as of March 31, 2026 on the Consolidated Balance Sheets.

The property was sold subsequent to March 31, 2026.

See Note 22 for further discussion.

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

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

6 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

A summary of Gain on sales of real estate investments for the three months ended March 31, 2026 and the year ended December 31, 2025 follows:

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

(Square feet) (In thousands)

Shaw Commerce Center Fresno, CA 398,000 02/12/2026 $ 36,291 11,406 24,885

Laura Alice Business Center San Francisco, CA 12,000 06/02/2025 $ 3,371 3,371 —

Interchange Business Park and

Metro Airport Commerce Center

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

The table above includes sales of operating properties.

During the year ended December 31, 2024, the Company also sold 5.4 acres of land in two markets for $ 4,261,000 and recognized gains on the sales of $ 362,000 .

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

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

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

The Company did not sell any land during the three months ended March 31, 2026 or the year ended December 31, 2025.

The Company did not consider its sales in 2026 or 2025 to be disposals of a component of an entity or a group of components of an entity representing a strategic shift that has (or will have) a major effect on the entity’s operations and financial results.

1 unchanged sentence

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

September 30,

2026 December 31,

24 unchanged sentences

The Company’s debt is detailed below:

September 30,

2026 December 31,

11 unchanged sentences

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

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

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

The interest rate on each tranche is reset on a monthly basis and as of March 31, 2026, was Secured Overnight Financing Rate (“SOFR”) plus 73.5 basis points with an annual facility fee of 14 basis points.

As of March 31, 2026, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 4.403 %.

The Company has a $ 337,000 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 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.

The interest rate is reset on a daily basis and as of March 31, 2026, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of March 31, 2026, the interest rate was 4.405 % with no outstanding balance.

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

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

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% .

In February 2026, Moody’s Ratings upgraded EastGroup’s issuer rating to Baa1, outlook stable from Baa2, outlook positive.

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 nine months ended September 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 nine months ended September 30, 2025.

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

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

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

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

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

This sustainability metric is evaluated annually, allowing the interest rate to be adjusted in the following year.

The margin on the facility can be decreased or increased by up to four basis points and the facility fee can be decreased or increased by up to one basis point.

MATURITY DATES Principal Payments Maturing

3 unchanged sentences

Total unsecured debt, before amortization of debt issuance costs $ 1,615,000

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(11) ACCOUNTS PAYABLE AND ACCRUED EXPENSES

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

September 30,

2026 December 31,

6 unchanged sentences

Dividends payable 84,658 84,725

Book overdraft (1)

Incentive compensation payable 2,320 8,614

2 unchanged sentences

$ 169,414 169,945

(1) Represents checks written before the end of the period which have not cleared the bank;

therefore, the bank has not yet advanced cash to the Company.

When the checks clear the bank, they will be funded through the Company’s working cash line of credit, which is included in Unsecured bank credit facilities, net of debt issuance costs on the Consolidated Balance Sheets.

(12) OTHER LIABILITIES

A summary of the Company’s Other liabilities follows:

September 30,

2026 December 31,

18 unchanged sentences

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

Three Months Ended

September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

(In thousands)

1 unchanged sentence

Balance at beginning of period $ 8,357 21,953

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

Other comprehensive income (loss) — Interest rate swaps 1,979 ( 6,927 )

Balance at end of period $ 10,336 15,026

7 unchanged sentences

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

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

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

The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Other comprehensive loss and are subsequently reclassified into earnings through Interest expense as interest payments are made or received on the Company’s variable-rate debt in the period that the hedged forecasted transaction affects earnings.

The Company estimates that an additional $ 7,012,000 will be reclassified from Other comprehensive loss as a decrease in Interest expense over the next twelve months.

As of March 31, 2026, the Company had nine interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans.

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

The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Other comprehensive income (loss) and are subsequently reclassified into earnings through Interest expense as interest payments are made or received on the Company’s variable-rate debt in the period that the hedged forecasted transaction affects earnings.

The Company estimates that an additional $ 6,916,000 will be reclassified from Other comprehensive income (loss) as a decrease in Interest expense over the next twelve months.

The Company’s valuation methodology for over-the-counter (“OTC”) derivatives is to discount cash flows based on SOFR market data.

4 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of September 30, 2025 and December 31, 2024, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk:

NOTIONAL VALUE OF INTEREST RATE DERIVATIVES September 30,

As of March 31, 2026 and December 31, 2025, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk:

NOTIONAL VALUE OF INTEREST RATE DERIVATIVES March 31,

2026 December 31,

6 unchanged sentences

Interest Rate Swap 50,000 50,000

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024.

Interest Rate Swap 50,000 50,000

Interest Rate Swap 100,000 100,000

Interest Rate Swap 50,000 50,000

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2026 and December 31, 2025.

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

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

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

2026 December 31,

5 unchanged sentences

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

The table below presents the effect of the Company’s derivative financial instruments (interest rate swaps) on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2025 and 2024:

Three Months Ended

September 30, Nine Months Ended September 30,

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

EFFECT OF CASH FLOW HEDGES ON OTHER COMPREHENSIVE INCOME (LOSS) 2026 2025

(In thousands)

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

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

$ 4,110 ( 3,876 )

Amount of (income) reclassified from Accumulated other

comprehensive income into Interest expense

Amount of (income) reclassified from Accumulated other comprehensive income into

Interest expense

( 2,131 ) ( 3,051 )

3 unchanged sentences

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

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

As of March 31, 2026, the Company had not posted any collateral related to these agreements and was not in breach of any of the provisions of these agreements.

If the Company had breached any of these provisions, it would be required to settle its obligations under the agreements at their termination value.

2 unchanged sentences

Basic EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period.

The Company’s basic EPS is calculated by dividing Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders by the weighted average number of common shares outstanding.

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

The Company’s basic EPS is calculated by dividing Net Income Attributable to EastGroup

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

common stock.

Properties, Inc.

Common Stockholders by the weighted average number of common shares outstanding.

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

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

6 unchanged sentences

Three Months Ended

September 30, Nine Months Ended September 30,

2025 2024 2025 2024

(In thousands)

9 unchanged sentences

Weighted average shares outstanding — Diluted 53,546 52,028

(1) Potentially dilutive securities include outstanding forward equity sale agreements and unvested restricted shares of common stock.

(16) EQUITY OFFERINGS

3 unchanged sentences

and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock.

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

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

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

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

Additionally, the forward price that we expect to receive upon settlement of an agreement will be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends during the term of the agreement.

The 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

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

receiving the proceeds from the sale of shares until a later date.

Direct Common Stock Issuance Activity

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

The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the three months ended March 31, 2026 and the year ended December 31, 2025:

Common Stock (1)

Weighted Average Price Gross Proceeds Net Proceeds

2 unchanged sentences

365,620 $ 191.46 $ 70,000 69,300

Three months ended June 30, 2025

Three months ended September 30, 2025

Nine months ended September 30, 2025

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

Twelve months ended December 31, 2024

Year ended December 31, 2025

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

1 unchanged sentence

Forward Equity Offering Activity

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

The following table presents the Company’s forward equity offering activity during the three months ended March 31, 2026 and the year ended December 31, 2025:

Common Stock Weighted Average Price Gross Proceeds

7 unchanged sentences

Forward Sale Agreements Outstanding at December 31, 2025

385,253 175.07 67,446

New forward sale agreements (1)

1 unchanged sentence

Forward sale agreements settled — Shares issued and proceeds

( 385,253 ) 175.07 ( 67,446 )

Forward Sale Agreements Outstanding at March 31, 2026

252,136 $ 196.16 $ 49,459

New forward sale agreements (1)

19,954 175.00 3,492

Forward sale agreements settled — Shares issued and proceeds

( 416,067 ) 180.26 ( 74,999 )

Forward Sale Agreements Outstanding at June 30, 2025

647,758 182.94 118,499

New forward sale agreements (1)

Forward sale agreements settled — Shares issued and proceeds

( 647,758 ) 182.94 ( 118,499 )

Forward Sale Agreements Outstanding at September 30, 2025

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

(2) EastGroup settled outstanding forward equity sale agreements by issuing 1,449,078 shares of common stock in exchange for net proceeds of approximately $258,066,000 .

(3) EastGroup settled outstanding forward equity sale agreements by issuing 385,253 shares of common stock in exchange for net proceeds of approximately $66,902,000.

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

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

(17) STOCK-BASED COMPENSATION

3 unchanged sentences

The cost for performance-based awards is determined using the graded vesting attribution method which recognizes each separate vesting portion of the award as a separate award on a straight-line basis over the requisite service period.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

method accelerates the expensing of the award compared to the straight-line method.

This method accelerates the expensing of the award compared to the straight-line method.

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

5 unchanged sentences

Forfeitures of awards are recognized as they occur.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The Compensation Committee of the Company’s Board of Directors (the “Committee”) approves long-term and annual equity compensation awards for the Company’s executive officers.

1 unchanged sentence

Restricted stock is granted to executive officers subject to both continued service and the satisfaction of certain annual performance goals and multi-year market conditions as determined by the Committee.

The long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three years and the employee’s continued service as of the vesting dates.

The long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three-year performance period and the employee’s continued service as of the vesting dates.

The total shareholder return component is subject to bright-line tests that compare the Company’s total shareholder return to the member companies of the Nareit Equity Index and the Nareit industrial index.

15 unchanged sentences

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

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

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

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

Stock-based compensation cost for employees was $ 4,453,000 for the three months ended March 31, 2026, of which $ 499,000 was capitalized as part of the Company’s development costs.

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

Stock-based compensation expense for directors was $ 205,000 and $ 206,000 for the three months ended March 31, 2026 and 2025, respectively.

EASTGROUP PROPERTIES, INC.

2 unchanged sentences

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

Of the shares that vested in the nine months ended September 30, 2025, the Company withheld 24,745 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.

As of the grant dates, the fair value of shares that were granted during the nine months ended September 30, 2025 was $ 11,928,000 .

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

Of the shares that vested in the three months ended March 31, 2026, the Company withheld 33,101 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan.

As of the grant dates, the fair value of shares that were granted during the three months ended March 31, 2026 was $ 10,271,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the three months ended March 31, 2026 was $ 14,450,000 .

Three Months Ended

September 30, 2025 Nine Months Ended September 30, 2025

March 31, 2026

RESTRICTED STOCK ACTIVITY

Weighted Average Grant Date Fair Value

Shares Weighted Average Grant Date Fair Value

Unvested at beginning of period 89,386 $ 174.98

12 unchanged sentences

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

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

September 30, 2025 December 31, 2024

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at March 31, 2026 and December 31, 2025.

March 31, 2026 December 31, 2025

Carrying Amount (1)

41 unchanged sentences

ASU 2024-03, as clarified by ASU 2025-01, is effective for annual reporting periods beginning after December 15, 2026, and interim periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted.

Amendments should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date, or (2) retrospectively to all prior periods presented in the financial statements.

Amendments should be applied either (i) prospectively to financial statements issued for reporting periods after the effective date, or (ii) retrospectively to all prior periods presented in the financial statements.

EastGroup does not expect the adoption to have a material impact on its financial condition, results of operations or disclosures.

In November 2025, the FASB issued ASU 2025-09, Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements .

The guidance makes targeted amendments to the hedge accounting model to better align accounting results with an entity’s risk management activities.

The amendments affect, among other areas, (i) the assessment of similar risk exposure for groups of forecasted transactions in cash flow hedges, (ii) cash flow hedges of forecasted interest payments on “choose-your-rate” debt instruments, (iii) cash flow hedges of nonfinancial forecasted transactions, (iv) the use of certain options as hedging instruments, and (v) certain dual-hedge strategies involving foreign-currency-denominated debt.

ASU 2025-09 is effective for annual reporting periods beginning after December 15, 2026, and for interim periods within those annual reporting periods, with early adoption permitted.

The amendments are required to be applied prospectively, with certain transition provisions available for existing hedging relationships.

The Company does not expect the adoption to have a material impact on its consolidated financial position or results of operations;

however, the guidance may affect the Company’s hedge documentation, hedge effectiveness assessments, and related disclosures.

(22) SUBSEQUENT EVENTS

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

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

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

Subsequent to March 31, 2026, EastGroup sold Beach Commerce Center, a 46,000 square foot building in Jacksonville, for approximately $ 7,000,000 .

The Company expects to record a gain on the sale in the three months ended June 30, 2026.

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

What changed 10-Q

Item 1. Financial Statements