What changed in this filing

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Item 1. Financial Statements

2026-10-21 compared with 2026-07-22 · 179 added, 111 removed, 676 unchanged (30% of the section changed)

3 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2026 December 31,

7 unchanged sentences

Cash and cash equivalents 284 1,007

Restricted cash 82,970 —

Other assets, net 334,366 307,337

11 unchanged sentences

53,773,403 shares issued

and outstanding at June 30, 2026 and 53,348,800 at December 31, 2025

and outstanding at September 30, 2026 and 53,348,800 at December 31, 2025

Excess shares;

13 unchanged sentences

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

Three Months Ended Six Months Ended

June 30, June 30,

Three Months Ended Nine Months Ended

September 30, September 30,

2026 2025 2026 2025

30 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the six months ended June 30, 2026:

For the nine months ended September 30, 2026:

Common Shares Additional

34 unchanged sentences

BALANCE, JUNE 30, 2026 5 4,017,143 ( 455,915 ) 13,762 403 3,575,398

Net income — — 78,380 — — 78,380

Net unrealized change in fair value of interest rate swaps — — — 9,527 — 9,527

Common dividends declared — $ 1.75 per

— — ( 94,375 ) — — ( 94,375 )

Stock-based compensation, net of forfeitures

— 3,640 — — — 3,640

Issuance costs related to common stock offering — ( 50 ) — — — ( 50 )

Withheld 39 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock

— ( 8 ) — — — ( 8 )

BALANCE, SEPTEMBER 30, 2026 $ 5 4,020,725 ( 471,910 ) 23,289 403 3,572,512

See accompanying Notes to Consolidated Financial Statements (unaudited).

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the six months ended June 30, 2025:

For the nine months ended September 30, 2025:

Common Shares Additional

33 unchanged sentences

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

Net income — — 66,943 — 14 66,957

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

Common dividends declared — $ 1.55 per

— — ( 83,065 ) — — ( 83,065 )

Stock-based compensation, net of forfeitures

— 3,081 — — — 3,081

Issuance of 647,758 shares of common

stock, common stock offering, net of

— 117,014 — — — 117,014

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

Contributions from noncontrolling interest — — — — 83 83

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

See accompanying Notes to Consolidated Financial Statements (unaudited).

2 unchanged sentences

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

5 unchanged sentences

Gain on sales of real estate investments ( 30,074 ) —

Gain on sales of non-operating real estate ( 4,709 ) —

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

23 unchanged sentences

Other ( 6,147 ) ( 4,229 )

NET CASH USED IN FINANCING ACTIVITIES ( 123,090 ) ( 53,791 )

INCREASE IN CASH AND CASH EQUIVALENTS 32,375 15,392

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

CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 33,382 32,921

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES ( 9,818 ) 14,624

INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH 82,247 ( 14,548 )

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

CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD $ 83,254 2,981

SUPPLEMENTAL CASH FLOW INFORMATION

22 unchanged sentences

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 June 30, 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.

All significant intercompany transactions and accounts have been eliminated in consolidation.

As of September 30, 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 a property in San Diego, known by the Company as Miramar Business Center.

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.

1 unchanged sentence

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

All significant intercompany transactions and accounts have been eliminated in consolidation.

(3) USE OF ESTIMATES

3 unchanged sentences

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

The table below presents the components of Income from real estate operations for the three and six months ended June 30, 2026 and 2025:

The table below presents the components of Income from real estate operations for the three and nine months ended September 30, 2026 and 2025:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2026 2025 2026 2025

12 unchanged sentences

Net income is used to evaluate the performance of the Company’s investments in real estate assets and its operating results and to allocate resources in acquiring or developing industrial properties.

The following income and significant expense categories are regularly provided to the Company’s CODM as components of Net income , which are presented on the Consolidated Statements of Income and Comprehensive Income:

Income from real estate operations , Expenses from real estate operations , General and administrative and Interest expense .

The following income and significant expense categories are regularly provided to the Company’s CODM as components of Net income , which are presented on the

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Consolidated Statements of Income and Comprehensive Income:

Income from real estate operations , Expenses from real estate operations , General and administrative and Interest expense .

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

1 unchanged sentence

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

During the six month periods ended June 30, 2026 and 2025, the Company did not identify any impairment charges which should be recorded.

During the nine month periods ended September 30, 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 $ 45,902,000 and $ 91,101,000 for the three and six months ended June 30, 2026, respectively, and $ 43,093,000 and $ 85,401,000 for the same periods in 2025.

The Company’s Real estate properties and Development and value-add properties at June 30, 2026 and December 31, 2025 were as follows:

Depreciation expense was $ 47,245,000 and $ 138,346,000 for the three and nine months ended September 30, 2026, respectively, and $ 43,928,000 and $ 129,329,000 for the same periods in 2025.

The Company’s Real estate properties and Development and value-add properties at September 30, 2026 and December 31, 2025 were as follows:

September 30,

2026 December 31,

15 unchanged sentences

(6) DEVELOPMENT AND VALUE-ADD PROPERTIES

Development and value-add properties consists of properties in lease-up, under construction, and prospective development (primarily land).

Development and value-add properties consist of properties in lease-up, under construction, and prospective development (primarily land).

Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use.

8 unchanged sentences

(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).

Upon the earlier of 90% occupancy or one year after completion of the shell construction/value-

EASTGROUP PROPERTIES, INC.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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).

(7) REAL ESTATE PROPERTY ACQUISITIONS AND ACQUIRED INTANGIBLES

4 unchanged sentences

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

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

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

As a result, the Company capitalized acquisition costs related to its 2025 and 2026 acquisitions.

In accordance with the accounting guidance for asset acquisitions, the Company capitalizes direct acquisition costs as part of the cost of the acquired assets, and, as a result, the Company capitalized acquisition costs related to its 2025 and 2026 acquisitions.

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

9 unchanged sentences

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

Net amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $ 1,548,000 and $ 3,124,000 for the three and six months ended June 30, 2026, respectively, and $ 1,520,000 and $ 3,087,000 for the same periods in 2025.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 2,969,000 and $ 6,013,000 for the three and six months ended June 30, 2026, respectively, and $ 3,067,000 and $ 6,285,000 for the same periods in 2025.

During the six months ended June 30, 2026, 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 $ 1,568,000 and $ 4,692,000 for the three and nine months ended September 30, 2026, respectively, and $ 1,547,000 and $ 4,634,000 for the same periods in 2025.

Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $ 3,323,000 and $ 9,336,000 for the three and nine months ended September 30, 2026, respectively, and $ 3,148,000 and $ 9,433,000 for the same periods in 2025.

During the nine months ended September 30, 2026, EastGroup acquired the following properties:

REAL ESTATE PROPERTIES ACQUIRED IN 2026

4 unchanged sentences

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

Airgate Mesa Corporate Center Phoenix, AZ 143,000 07/16/2026 27,688

Harris Ridge Business Center Austin, TX 388,000 07/23/2026 82,268

Total operating property acquisitions 708,000 $ 148,086

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

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

included in Real estate properties on the Consolidated Balance Sheets.

(2) Operating properties are defined as stabilized real estate properties (land, buildings and improvements) in the Company’s operating portfolio and are included in Real estate properties on the Consolidated Balance Sheets.

(3) Excludes acquired development land as discussed below.

There were no acquisitions of value-add properties or development land during the six months ended June 30, 2026.

There were no acquisitions of value-add properties during the nine months ended September 30, 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 acquisition identified in the table above which was acquired during the six months ended June 30, 2026.

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, 2026.

ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2026

(In thousands)

Land $ 24,760

Buildings and building improvements 110,052

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 six months ended June 30, 2026 had a weighted average remaining lease term at acquisition of approximately 4.0 years.

The leases in the properties acquired during the nine months ended September 30, 2026 had a weighted average remaining lease term at acquisition of approximately 4.3 years.

Also during the nine months ended September 30, 2026, EastGroup purchased 107.3 acres of development land in three markets for $ 54,096,000 .

During 2025, EastGroup acquired the following properties:

10 unchanged sentences

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

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

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

included in Real estate properties on the Consolidated Balance Sheets.

22 unchanged sentences

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

No impairment of goodwill or other intangibles existed during the three and six month periods ended June 30, 2026 and 2025.

No impairment of goodwill or other intangibles existed during the three and nine month periods ended September 30, 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 June 30, 2026 or December 31, 2025.

The Company did not classify any properties as held for sale as of September 30, 2026 or 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 six months ended June 30, 2026 and the year ended December 31, 2025 follows:

A summary of Gain on sales of real estate investments for the nine months ended September 30, 2026 and the year ended December 31, 2025 follows:

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

6 unchanged sentences

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

The Company did not sell any land during the six months ended June 30, 2026 or the year ended December 31, 2025.

During the nine months ended September 30, 2026, the Company also sold 6.9 acres of land in Miami for $ 14,250,000 and recognized a gain on the sale of $ 4,709,000 .

The Company did not sell any land during 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.

(9) RESTRICTED CASH

Cash held in escrow in connection with certain real estate acquisitions is included in Restricted Cash on the Consolidated Balance Sheets.

These funds are restricted as to their use and are generally available only for payments associated with the closing of real estate acquisitions in accordance with the related transaction agreements.

If the real estate transaction does not close, these funds would be returned to EastGroup.

The following table presents a reconciliation of Cash and cash equivalents and Restricted Cash reported on the Consolidated Balance Sheets to amounts reported on the Consolidated Statements of Cash Flows:

CASH, CASH EQUIVALENTS AND RESTRICTED CASH RECONCILIATION September 30,

2026 December 31,

2025 September 30,

2025 December 31,

(In thousands)

Cash and cash equivalents $ 284 1,007 2,981 17,529

Restricted cash 82,970 — — —

Cash, cash equivalents and restricted cash $ 83,254 1,007 2,981 17,529

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(10) OTHER ASSETS

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

September 30,

2026 December 31,

20 unchanged sentences

$ 334,366 307,337

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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 June 30, 2026, was Secured Overnight Financing Rate (“SOFR”) plus 73.5 basis points with an annual facility fee of 14 basis points.

As of June 30, 2026, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 4.379 %.

The interest rate on each tranche is reset on a monthly basis and as of September 30, 2026, was Secured Overnight Financing Rate (“SOFR”) plus 73.5 basis points with an annual facility fee of 14 basis points.

As of September 30, 2026, the Company had $ 165,000,000 of variable rate borrowings on this unsecured bank

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

credit facility and an interest rate of 4.635 %.

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 June 30, 2026, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of June 30, 2026, the interest rate was 4.395 % with no outstanding balance.

The interest rate is reset on a daily basis and as of September 30, 2026, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points.

As of September 30, 2026, the interest rate was 4.675 % with a balance of $ 31,535,000 .

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

3 unchanged sentences

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.

Scheduled principal payments on long-term debt, including Unsecured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs ), as of June 30, 2026, are as follows:

Scheduled principal payments, including Unsecured debt, net of debt issuance costs (not including Unsecured bank credit facilities, net of debt issuance costs ), as of September 30, 2026, are as follows:

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)

(1) Refer to Note 23 in the Notes to Consolidated Financial Statements for details relating to a scheduled principal payment made subsequent to September 30, 2026 .

(12) ACCOUNTS PAYABLE AND ACCRUED EXPENSES

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

September 30,

2026 December 31,

14 unchanged sentences

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.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(13) OTHER LIABILITIES

A summary of the Company’s Other liabilities follows:

September 30,

2026 December 31,

11 unchanged sentences

$ 135,346 137,999

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(14) COMPREHENSIVE INCOME

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2026 2025 2026 2025

8 unchanged sentences

The Company manages economic risk, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and, to a limited extent, the use of derivative instruments.

Specifically, the Company has entered into derivative instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

The Company’s derivative instruments, described below, are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain of the Company’s borrowings.

1 unchanged sentence

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

As of June 30, 2026, the Company had nine interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of September 30, 2026, the Company had eight 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.

4 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

As of June 30, 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 June 30,

As of September 30, 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 September 30,

2026 December 31,

9 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 June 30, 2026 and December 31, 2025.

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, 2026 and December 31, 2025.

See Note 19 for additional information on the fair value of the Company’s interest rate swaps.

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

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

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 six months ended June 30, 2026 and 2025:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

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

7 unchanged sentences

See Note 14 for additional information on the Company’s Accumulated other comprehensive income resulting from its interest rate swaps.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Derivative financial agreements expose the Company to credit risk in the event of non-performance by the counterparties under the terms of the interest rate hedge agreements.

1 unchanged sentence

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

As of June 30, 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.

As of September 30, 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.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(16) EARNINGS PER SHARE

12 unchanged sentences

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2026 2025 2026 2025

15 unchanged sentences

(1) Anti-dilutive securities could have a dilutive impact on EPS in future periods.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(17) EQUITY OFFERINGS

3 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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”).

4 unchanged sentences

Direct Common Stock Issuance Activity

The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the six months ended June 30, 2026 and the year ended December 31, 2025:

The following table presents the Company’s common stock issuance activity for shares sold directly through sales agents pursuant to the Company's ATM programs during the nine months ended September 30, 2026 and the year ended December 31, 2025:

Common Stock (1)

Weighted Average Price Gross Proceeds Net Proceeds

Weighted Average Price Gross Amount Net Proceeds

(In shares) (Per share) (In thousands)

2 unchanged sentences

Three months ended June 30, 2026 — — — —

Six months ended June 30, 2026

Three months ended September 30, 2026

Nine months ended September 30, 2026

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

2 unchanged sentences

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Forward Equity Offering Activity

The following table presents the Company’s forward equity offering activity during the six months ended June 30, 2026 and the year ended December 31, 2025:

Common Stock Weighted Average Price Gross Proceeds

The following table presents the Company’s forward equity offering activity during the nine months ended September 30, 2026 and the year ended December 31, 2025:

Common Stock Weighted Average Price Gross Amount

(In shares) (Per share) (In thousands)

16 unchanged sentences

1,040,457 201.45 209,603

New forward sale agreements (1)

2,402,931 202.06 485,531

Forward sale agreements settled — Shares issued and proceeds

Forward Sale Agreements Outstanding at September 30, 2026 (3)

3,443,388 $ 201.88 $ 695,134

(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) Available through forward equity sale agreements before the applicable settlement periods expire, which occur between March and June 2027.

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(3) Available through forward equity sale agreements before the applicable settlement periods expire, which occur between February 2027 and February 2028, net of adjustments described above.

(18) STOCK-BASED COMPENSATION

EastGroup applies the provisions of ASC 718, Compensation - Stock Compensation, to account for its stock-based compensation plans.

ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued.

The cost for market-based awards and awards that only require service are expensed on a straight-line basis over the requisite service periods.

ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements and that the cost be measured at the fair value of the equity or liability instruments issued.

The cost for market-based awards and awards that only require service is expensed on a straight-line basis over the requisite service periods.

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.

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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.

The total shareholder return

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

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

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

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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 $ 3,412,000 and $ 10,688,000 for the three and nine months ended September 30, 2026, respectively, of which $ 565,000 and $ 1,291,000 was capitalized as part of the Company’s development costs.

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

Stock-based compensation expense for directors was $ 228,000 and $ 630,000 for the three and nine months ended September 30, 2026, respectively, and $ 211,000 and $ 609,000 for the same periods in 2025.

EASTGROUP PROPERTIES, INC.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Stock-based compensation cost for employees was $ 2,823,000 and $ 7,276,000 for the three and six months ended June 30, 2026, respectively, of which $ 227,000 and $ 726,000 was capitalized as part of the Company’s development costs.

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

Stock-based compensation expense for directors was $ 197,000 and $ 402,000 for the three and six months ended June 30, 2026, respectively, and $ 192,000 and $ 398,000 for the same periods in 2025.

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

Of the shares that vested in the six months ended June 30, 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 six months ended June 30, 2026 was $ 11,475,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the six months ended June 30, 2026 was $ 15,452,000 .

Of the shares that vested in the nine months ended September 30, 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 nine months ended September 30, 2026 was $ 13,995,000 .

As of the vesting dates, the aggregate fair value of shares that vested during the nine months ended September 30, 2026 was $ 15,452,000 .

Three Months Ended

June 30, 2026 Six Months Ended June 30, 2026

September 30, 2026 Nine Months Ended September 30, 2026

RESTRICTED STOCK ACTIVITY

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(1) Includes restricted shares granted during the year without performance or market conditions.

Also includes restricted shares granted in previous years, for long-term and annual equity compensation awards for the Company's executive officers, for which performance based or market based conditions have been satisfied and the resulting number of shares have been determined during the year.

(2) Does not include restricted shares subject to open performance periods.

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at June 30, 2026 and December 31, 2025.

June 30, 2026 December 31, 2025

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, 2026 and December 31, 2025.

September 30, 2026 December 31, 2025

Carrying Amount (1)

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Financial Assets:

Cash and cash equivalents $ 33,382 33,382 1,007 1,007

Cash, cash equivalents and restricted cash $ 83,254 83,254 1,007 1,007

Interest rate swap assets 23,289 23,289 10,500 10,500

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The following methods and assumptions were used to estimate the fair value of each class of financial instruments:

• Cash and cash equivalents:

• Cash, cash equivalents and restricted cash:

The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

The carrying amounts approximate fair value due to the short maturity of those instruments.

The carrying amounts approximate fair value due to the short maturity of those instruments (Level 1).

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

• Interest rate swap assets (included in Other assets, net on the Consolidated Balance Sheets):

The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves and SOFR swap curves, that are observable for substantially the full term of the contract (Level 2 input).

See Note 15 for additional information on the Company’s interest rate swaps.

• Unsecured bank credit facilities:

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

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

• Unsecured debt:

The fair value of the Company’s unsecured debt is estimated by discounting expected cash flows at the rates currently offered to the Company for debt of the same remaining maturities, as advised by the Company’s bankers (Level 2 input), excluding the effects of debt issuance costs.

The disclosure of the fair value of the Company’s unsecured debt is estimated by discounting expected cash flows at the rates currently offered to the Company for debt of the same remaining maturities, as advised by the Company’s bankers (Level 2), excluding the effects of debt issuance costs.

• Interest rate swap liabilities (included in Other liabilities on the Consolidated Balance Sheets):

See Note 15 for additional information on the Company’s interest rate swaps.

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In November 2024, the FASB issued ASU 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses , and in January 2025, the FASB

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses , and in January 2025, the FASB issued ASU 2025-01, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Clarifying the Effective Date .

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

EASTGROUP PROPERTIES, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(23) SUBSEQUENT EVENTS

Subsequent to June 30, 2026, EastGroup sold 6.9 acres of land in Miami for approximately $ 14,300,000 .

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

Also subsequent to June 30, 2026, EastGroup acquired a business distribution building in Phoenix, containing 143,000 square feet, for approximately $ 27,600,000 .

Subsequent to September 30, 2026, the Company repaid a $ 100,000,000 senior unsecured term loan, which was scheduled to mature on October 10, 2026, with an effectively fixed interest rate of 1.98 %.

Also subsequent to September 30, 2026, EastGroup closed on the acquisition of the following:

• A property in the Northeast submarket of Dallas for approximately $ 89,000,000 .

The property includes three business distribution buildings containing 375,000 square feet.

Escrowed funds of $ 82,970,000 , included in Restricted cash on the Consolidated Balance Sheets at September 30, 2026, were released and applied to the acquisition purchase price at closing.

• A business distribution building containing 202,000 square feet in the Dallas-Fort Worth Airport submarket for approximately $ 30,000,000 .

• Three business distribution buildings containing 454,000 square feet in the North Denver submarket for approximately $ 95,000,000 .

• 24.9 acres of development land in Miami for approximately $ 48,000,000 .

This site is expected to accommodate the future development of two buildings containing approximately 371,000 square feet.

The consideration paid for this property included a combination of cash and newly-issued units in our operating partnership.

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