What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-10-21 compared with 2026-07-22 · 151 added, 145 removed, 342 unchanged (46% of the section changed)

14 unchanged sentences

• disruption in supply and delivery chains;

• increased construction and development costs, including as a result of tariffs or the recent inflationary environment;

• increased construction and development costs, including as a result of tariffs or an inflationary environment;

• acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with our projections or to materialize at all;

13 unchanged sentences

• pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic;

• potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of the war in the Middle East;

• potentially catastrophic events, such as acts of war, civil unrest and terrorism, including escalation or expansion of armed conflicts in the Middle East;

• environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us.

9 unchanged sentences

We utilize an umbrella partnership real estate investment trust (“UPREIT”) organizational structure to hold all or substantially all of our assets through EastGroup Properties, L.P., our operating partnership.

As of June 30, 2026, EastGroup owned 557 industrial properties in 12 states.

As of September 30, 2026, EastGroup owned 569 industrial properties in 12 states.

As of that same date, the Company’s portfolio, including development projects and value-add properties in lease-up and under construction, included approximately 66,997,000 square feet consisting of 527 business distribution properties containing 60,867,000 square feet, 20 bulk distribution properties containing 5,224,000 square feet, and 22 business service properties containing 906,000 square feet.

During the six months ended June 30, 2026, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions and geopolitical conflict.

While these factors did not have a significant adverse impact on EastGroup during the six months ended June 30, 2026, they may adversely impact the Company in the future.

During the nine months ended September 30, 2026, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions and geopolitical conflict.

While these factors did not have a significant adverse impact on EastGroup during the nine months ended September 30, 2026, they may adversely impact the Company in the future.

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

3 unchanged sentences

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

During the six months ended June 30, 2026, EastGroup sold, and subsequently settled the issuance of, 365,620 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $191.46 per share, providing aggregate net proceeds to the Company of $69,300,000.

During the six months ended June 30, 2026, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 1,040,457 shares of

common stock with an initial weighted average forward price of $201.45 per share.

Additionally, the Company has forward equity sales agreements available for settlement, as described below.

During the nine months ended September 30, 2026, EastGroup sold, and subsequently settled the issuance of, 365,620 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $191.46 per share, providing aggregate net proceeds to the Company of $69,300,000.

During the nine months ended September 30, 2026, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 3,443,388 shares of common stock with an initial weighted average forward price of $201.88 per share.

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

1 unchanged sentence

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

During the six months ended June 30, 2026, EastGroup executed new and renewal leases on 4,887,000 square feet (representing 7.8% of the operating portfolio’s total square footage of 62,523,000).

For new and renewal leases signed during the first six months of 2026, average rental rates increased by 35.2%, as compared to the former leases on the same spaces.

During the nine months ended September 30, 2026, EastGroup executed new and renewal leases on 7,756,000 square feet (representing 12.3% of the operating portfolio’s total square footage of 62,944,000).

For new and renewal leases signed during the first nine months of 2026, average rental rates increased by 35.6%, as compared to the former leases on the same spaces.

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

Common Stockholders was $3.17 for the six months ended June 30, 2026, compared to $2.35 for the same period of 2025, a 34.9% increase.

Common Stockholders was $4.63 for the nine months ended September 30, 2026, compared to $3.60 for the same period of 2025, a 28.6% increase.

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

Property Net Operating Income (“PNOI”), Excluding Income from Lease Terminations, from same properties (defined as operating properties owned during the entire period from January 1, 2025 through June 30, 2026), increased 6.8% for the six months ended June 30, 2026, as compared to the same period in 2025.

EastGroup’s operating portfolio was 96.8% leased and 95.6% occupied as of June 30, 2026, compared to 97.1% and 96.0%, respectively, at June 30, 2025.

As of July 21, 2026, the operating portfolio was 96.9% leased and 95.6% occupied.

As of June 30, 2026, leases approximating 4.5% of the operating portfolio, based on a percentage of annualized base rent, were scheduled to expire during the remainder of 2026.

This percentage was reduced to 3.6% as of July 21, 2026.

Property Net Operating Income (“PNOI”), Excluding Income from Lease Terminations, from same properties (defined as operating properties owned during the entire period from January 1, 2025 through September 30, 2026), increased 6.3% for the nine months ended September 30, 2026, as compared to the same period in 2025.

EastGroup’s operating portfolio was 97.3% leased and 96.5% occupied as of September 30, 2026, compared to 96.7% and 95.9%, respectively, at September 30, 2025.

As of October 20, 2026, the operating portfolio was 96.7% leased and 95.9% occupied.

As of September 30, 2026, leases approximating 1.6% of the operating portfolio, based on a percentage of annualized base rent, were scheduled to expire during the remainder of 2026.

This percentage was reduced to 1.0% as of October 20, 2026.

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

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

During the six months ended June 30, 2026, the Company began construction of six development projects containing 933,000 square feet in five markets.

EastGroup also transferred six development projects (1,231,000 square feet) in five markets from Development and value-add propertie s to Real estate properties , with costs of $124,991,000 at the date of transfer.

As of June 30, 2026, EastGroup’s development and value-add program consisted of 17 projects (3,175,000 square feet) located in 12 markets.

The projected total investment for the development projects, which were collectively 21.7% leased as of July 21, 2026, is $486,800,000, of which $175,105,000 remained to be invested as of June 30, 2026.

During the six months ended June 30, 2026, EastGroup acquired an operating property in Jacksonville, containing 177,000 square feet for $38,130,000.

During the nine months ended September 30, 2026, EastGroup purchased 107.3 acres of development land in 3 markets for $54,096,000.

The Company also began construction of 10 development projects and 1 redevelopment project, in total containing 1,932,000 square feet in 8 markets.

EastGroup also transferred 7 development projects (1,344,000 square feet) in 6 markets from Development and value-add propertie s to Real estate properties , with costs of $139,371,000 at the date of transfer.

As of September 30, 2026, EastGroup’s development and value-add program consisted of 21 projects (4,061,000 square feet) located in 14 markets.

The projected total investment for the development projects, which were collectively 25.4% leased as of October 20, 2026, is $636,700,000, of which $251,460,000 remains to be invested as of September 30, 2026.

During the nine months ended September 30, 2026, EastGroup acquired operating properties in Jacksonville, Phoenix and Austin, containing a combined 708,000 square feet for $148,086,000.

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

During the six months ended June 30, 2026, EastGroup sold two operating properties, in Fresno and Jacksonville, totaling 444,000 square feet, generating gross sales proceeds of $44,000,000.

The Company recognized $30,074,000 in Gain on sales of real estate investments during the six months ended June 30, 2026.

During the nine months ended September 30, 2026, EastGroup sold two operating properties, in Fresno and Jacksonville, totaling 444,000 square feet, generating gross sales proceeds of $44,000,000.

The Company recognized $30,074,000 in Gain on sales of real estate investments during the nine months ended September 30, 2026.

The Company also sold 6.9 acres of land in Miami for $14,250,000, recognizing $4,709,000 in gains on sales of non-operating real estate (included in Other income on the Consolidated Statements of Income and Comprehensive Income) during the nine months ended September 30, 2026.

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

4 unchanged sentences

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

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

In the future, the Company may also raise capital through accessing the public debt or convertible bond markets, as well as its common stock offering program, as described above.

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

8 unchanged sentences

PNOI is defined as Income from real estate operations less Expenses from real estate operations (including market-based internal management fee expense) plus the Company’s share of income and property operating expenses from its less-than-wholly-owned real estate investments.

EastGroup sometimes refers to PNOI from Same Properties as “Same PNOI”;

EastGroup may refer to PNOI from Same Properties as “Same PNOI”;

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

2 unchanged sentences

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

For the three and six months ended June 30, 2026, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through June 30, 2026.

For the three and nine months ended September 30, 2026, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through September 30, 2026.

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

2 unchanged sentences

PNOI and FFO as calculated by the Company may not be comparable to similarly titled but differently calculated measures for other REITs.

Investors should be aware that items excluded from or added back to FFO are significant components in understanding and assessing the Company’s financial performance.

Investors should be aware that items excluded from or included in FFO are significant components in understanding and assessing the Company’s financial performance.

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

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI, Excluding Income from Lease Terminations, for the three and six months ended June 30, 2026 and 2025.

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI, Excluding Income from Lease Terminations, for the three and nine months ended September 30, 2026 and 2025.

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2026 2025 2026 2025

2 unchanged sentences

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

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

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

18 unchanged sentences

SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS $ 136,009 129,168 401,941 378,036

PNOI was calculated as follows for the three and six months ended June 30, 2026 and 2025.

PNOI was calculated as follows 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

6 unchanged sentences

Income from real estate operations is comprised of rental income, expense reimbursement pass-through income and other real estate income.

Expenses from real estate operations is comprised of property taxes, insurance, utilities, repair and maintenance expenses, management fees and other operating costs.

Expenses from real estate operations are comprised of property taxes, insurance, utilities, repair and maintenance expenses, management fees and other operating costs.

Generally, the Company’s most significant operating expenses are property taxes and insurance.

4 unchanged sentences

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

Common Stockholders to FFO Attributable to Common Stockholders for the three and six months ended June 30, 2026 and 2025.

Common Stockholders to FFO Attributable to Common Stockholders 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

6 unchanged sentences

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

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

FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS 131,908 121,103 383,945 349,417

9 unchanged sentences

• Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders for the three and six months ended June 30, 2026 was $75,523,000 ($1.41 per basic and $1.40 per diluted share) and $170,147,000 ($3.18 per basic and $3.17 per diluted share), respectively, compared to $63,299,000 ($1.21 per basic and $1.20 per diluted share) and $122,722,000 ($2.35 per basic and diluted share), respectively, for the same periods in 2025.

Common Stockholders for the three and nine months ended September 30, 2026 was $78,380,000 ($1.46 per basic and diluted share) and $248,527,000 ($4.64 per basic and $4.63 per diluted share), respectively, compared to $66,943,000 ($1.26 per basic and diluted share) and $189,665,000 ($3.61 per basic and $3.60 per diluted share), respectively, for the same periods in 2025.

See Results of Operations for further analysis.

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

For the three months ended June 30, 2026, FFO was $2.36 per diluted share compared with $2.21 per diluted share for the same period of 2025, an increase of 6.8%.

For the six months ended June 30, 2026, FFO was $4.70 per diluted share compared with $4.37 per diluted share for the same period of 2025, an increase of 7.6%.

FFO increased during the three and six months ended June 30, 2026, as compared to the same periods in 2025, primarily due to the increase in PNOI, partially offset by an increase in general and administrative expense and interest expense.

• For the three months ended June 30, 2026, PNOI increased by $13,732,000, or 10.6%, as compared to the same period in 2025.

PNOI increased $7,644,000 from same property operations, $3,561,000 from newly developed and value-add properties and $2,965,000 from 2025 and 2026 acquisitions;

For the three months ended September 30, 2026, FFO was $2.45 per diluted share compared with $2.27 per diluted share for the same period of 2025, an increase of 7.9%.

For the nine months ended September 30, 2026, FFO was $7.15 per diluted share compared with $6.64 per diluted share for the same period of 2025, an increase of 7.7%.

FFO increased during the three and nine months ended September 30, 2026, as compared to the same periods in 2025, primarily due to the increase in PNOI, partially offset by an increase in interest expense.

• For the three months ended September 30, 2026, PNOI increased by $13,516,000, or 10.1%, as compared to the same period in 2025.

PNOI increased $6,809,000 due to same property operations (see explanation below), $4,156,000 due to newly developed and value-add properties and $3,213,000 due to 2025 and 2026 acquisitions;

PNOI decreased $634,000 due to operating properties sold in 2025 and 2026.

For the six months ended June 30, 2026, PNOI increased by $27,574,000, or 10.8%, as compared to the same period in 2025.

PNOI increased $16,434,000 from same property operations, $6,264,000 from newly developed and value-add properties and $5,623,000 from 2025 and 2026 acquisitions;

For the nine months ended September 30, 2026, PNOI increased by $41,090,000, or 10.5%, as compared to the same period in 2025.

PNOI increased $23,236,000 due to same property operations, $10,426,000 due to newly developed and value-add properties and $8,836,000 due to 2025 and 2026 acquisitions;

PNOI decreased $1,677,000 due to operating properties sold in 2025 and 2026.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2025 through June 30, 2026.

Same PNOI, excluding income from lease terminations, increased 6.2% and 6.8% for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025.

• Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through June 30, 2026).

Same property average occupancy was 96.9% for the three months ended June 30, 2026, compared to 96.3% for the same period of 2025.

Same property average occupancy was 97.1% for the six months ended June 30, 2026, compared to 96.2% for the same period of 2025.

• The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through June 30, 2026).

The same property average rental rate was $9.34 and $9.30 per square foot for the three and six months ended June 30, 2026, respectively, compared to $8.80 and $8.71 per square foot for the same periods of 2025.

• The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2025 through September 30, 2026.

Same PNOI, excluding income from lease terminations, increased 5.3% and 6.3% for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025.

Same property average occupancy was 96.9% for the three months ended September 30, 2026, compared to 96.7% for the same period of 2025.

Same property average occupancy was 97.0% for the nine months ended September 30, 2026, compared to 96.4% for the same period of 2025.

• The same property average rental rate calculated on a straight-line basis represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through September 30, 2026).

The same property average rental rate was $9.46 and $9.36 per square foot for the three and nine months ended September 30, 2026, respectively, compared to $8.99 and $8.81 per square foot for the same periods of 2025.

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

Occupancy at June 30, 2026 was 95.6%.

Quarter-end occupancy ranged from 95.9% to 96.5% over the previous four quarters ended June 30, 2025 to March 31, 2026.

Occupancy at September 30, 2026 was 96.5%.

Quarter-end occupancy ranged from 95.6% to 96.5% over the previous four quarters ended September 30, 2025 to June 30, 2026.

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

Rental rate increases on new and renewal leases (4.5% of the operating portfolio’s total square footage) averaged 34.1% for the three months ended June 30, 2026.

For the six months ended June 30, 2026, rental rate increases on new and renewal leases (7.8% of the operating portfolio’s total square footage) averaged 35.2%.

Rental rate increases on new and renewal leases (4.6% of the operating portfolio’s total square footage) averaged 36.3% for the three months ended September 30, 2026.

For the nine months ended September 30, 2026, rental rate increases on new and renewal leases (12.3% of the operating portfolio’s total square footage) averaged 35.6%.

FINANCIAL CONDITION

EastGroup’s Total Assets were $5,522,866,000 at June 30, 2026, an increase of $91,059,000 from December 31, 2025.

EastGroup’s Total Assets were $5,777,074,000 at September 30, 2026, an increase of $345,267,000 from December 31, 2025.

Total Liabilities increased $269,343,000 to $2,204,562,000, and Total Equity increased $75,924,000 to $3,572,512,000 during the same period.

The following paragraphs explain these changes in detail.

Real estate properties increased $147,339,000 during the six months ended June 30, 2026, primarily due to:

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

(ii) the acquisition of an operating property;

Real estate properties increased $282,617,000 during the nine months ended September 30, 2026, primarily due to:

(i) the acquisition of operating properties;

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

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

1 unchanged sentence

The increases were partially offset by the sale of operating properties and the transfer of a property from Real estate properties to Development and value-add properties .

During the six months ended June 30, 2026, EastGroup acquired the following properties:

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.

During the six months ended June 30, 2026, EastGroup sold two operating properties, in Fresno and Jacksonville, totaling 444,000 square feet, generating gross sales proceeds of $44,000,000.

The Company recognized $30,074,000 in Gain on sales of real estate investments during the six months ended June 30, 2026.

During the six months ended June 30, 2026, the Company made capital improvements of $27,607,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

Also, the Company incurred costs of $7,196,000

on development and value-add properties subsequent to transfer to Real estate properties ;

There were no acquisitions of value-add properties during the nine months ended September 30, 2026.

During the nine months ended September 30, 2026, EastGroup sold two operating properties, in Fresno and Jacksonville, totaling 444,000 square feet, generating gross sales proceeds of $44,000,000.

The Company recognized $30,074,000 in Gain on sales of real estate investments during the nine months ended September 30, 2026.

During the nine months ended September 30, 2026, the Company made capital improvements of $43,605,000 on existing properties (included in the Real Estate Improvements table under Results of Operations ).

Also, the Company incurred costs of $12,096,000 on development and value-add properties subsequent to transfer to Real estate properties ;

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

Development and value-add properties at June 30, 2026 consisted of projects in lease-up and under construction of $311,695,000 and prospective development (primarily land) of $379,821,000.

The Company’s total investment in Development and value-add properties at June 30, 2026 was $691,516,000 compared to $710,200,000 at December 31, 2025.

The decrease in Development and value-add properties was primarily due to the transfer of six development and value-add projects to Real estate properties during the six months ended June 30, 2026 with a total investment of $124,991,000 as of the date of transfer.

Total capital invested for development during the first six months of 2026 was $99,525,000, which consisted of improvement costs of $92,329,000 on development and value-add properties and costs of $7,196,000 on properties subsequent to transfer to Real estate properties.

Development and value-add properties at September 30, 2026 consisted of projects in lease-up and under construction of $385,240,000 and prospective development (primarily land) of $394,244,000.

The Company’s total investment in Development and value-add properties at September 30, 2026 was $779,484,000 compared to $710,200,000 at December 31, 2025.

Total capital invested for development during the first nine months of 2026 was $215,438,000, which consisted of improvement costs of $149,246,000 on development and value-add properties, $54,096,000 for new land investments and costs of $12,096,000 on properties subsequent to transfer to Real estate properties.

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

The Company capitalized internal development costs of $1,785,000 and $4,124,000 for the three and six months ended June 30, 2026, respectively, compared to $1,717,000 and $3,671,000 for the same periods of 2025.

The Company capitalized internal development costs of $2,644,000 and $6,768,000 for the three and nine months ended September 30, 2026, respectively, compared to $1,716,000 and $5,387,000 for the same periods of 2025.

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

A summary of the Company's Development and Value-Add Properties for the six months ended June 30, 2026 follows:

These increases in Development and value-add properties were partially offset by the transfer of seven development and value-add projects to Real estate properties during the nine months ended September 30, 2026 with a total investment of $139,371,000 as of the date of transfer.

The Company also sold 6.9 acres of development land in Miami for $14,250,000 and recognized a gain on the sale of $4,709,000.

A summary of the Company's Development and Value-Add Properties for the nine months ended September 30, 2026 follows:

Actual or Estimated Building Size Cumulative Costs Incurred as of 9/30/2026

5 unchanged sentences

Prospective development (primarily land) 11,221,000 394,244

Total Development and value-add properties as of June 30, 2026

Total Development and value-add properties as of September 30, 2026

15,282,000 $ 779,484

Total Development and value-add properties transferred to Real estate

properties during the six months ended June 30, 2026

properties during the nine months ended September 30, 2026

1,344,000 $ 139,371 (1)

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

Accumulated depreciation on real estate, development and value-add properties increased $69,835,000 during the six months ended June 30, 2026, primarily due to depreciation expense of $91,101,000 partially offset by the sale of operating properties and write-offs of fully depreciated assets.

Cash and cash equivalents increased $32,375,000 during the six months ended June 30, 2026.

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

Other assets, net increased $209,000 during the six months ended June 30, 2026.

Accumulated depreciation on real estate, development and value-add properties increased $115,442,000 during the nine months ended September 30, 2026, primarily due to depreciation expense of $138,346,000 partially offset by the sale of operating properties and write-offs of fully depreciated assets.

Restricted cash increased $82,970,000 during the nine months ended September 30, 2026, primarily due to cash held in escrow in connection with the acquisition of an operating property in Dallas.

See Notes 9 and 23 in the Notes to Consolidated Financial Statements for further details.

Other assets, net increased $27,029,000 during the nine months ended September 30, 2026.

See Note 10 in the Notes to Consolidated Financial Statements for further details.

Unsecured bank credit facilities, net of debt issuance costs decreased $18,344,000 during the six months ended June 30, 2026, primarily due to repayments of $153,389,000, partially offset by borrowings of $134,544,000.

Unsecured bank credit facilities, net of debt issuance costs increased $178,443,000 during the nine months ended September 30, 2026, primarily due to borrowings of $436,738,000, partially offset by repayments of $259,048,000.

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

Unsecured debt, net of debt issuance costs increased $557,000 during the six months ended June 30, 2026, primarily due to debt issuance cost activity during the period.

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

Accounts payable and accrued expenses increased $35,834,000 during the six months ended June 30, 2026.

Accounts payable and accrued expenses increased $92,715,000 during the nine months ended September 30, 2026.

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

Other liabilities decreased $5,798,000 during the six months ended June 30, 2026.

Other liabilities decreased $2,653,000 during the nine months ended September 30, 2026.

Refer to Note 13 in the Notes to Consolidated Financial Statements for further details.

Additional paid-in capital increased $70,351,000 during the six months ended June 30, 2026, primarily due to the issuance of common stock under the Company’s ATM program (as discussed in Note 16 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 17 in the Notes to Consolidated Financial Statements).

Distributions in excess of earnings decreased $3,038,000 during the six months ended June 30, 2026, as a result of Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders of $170,147,000 exceeding dividends on common stock of $167,109,000.

Accumulated other comprehensive income increased $5,405,000 during the six months ended June 30, 2026.

Additional paid-in capital increased $73,933,000 during the nine months ended September 30, 2026, primarily due to the issuance of common stock under the Company’s ATM program (as discussed in Note 17 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 18 in the Notes to Consolidated Financial Statements).

Distributions in excess of earnings increased $12,957,000 during the nine months ended September 30, 2026, as a result of dividends on common stock of $261,484,000 exceeding Net Income Attributable to EastGroup Properties, Inc.

Common Stockholders of $248,527,000.

Accumulated other comprehensive income increased $14,932,000 during the nine months ended September 30, 2026.

The increase resulted from the change in fair value of the Company’s interest rate swaps (cash flow hedges), which are further discussed in Notes 14 and 15 in the Notes to Consolidated Financial Statements.

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Net Income Attributable to EastGroup Properties, Inc.

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

• PNOI was $142,916,000 ($2.66 per diluted share) for the three months ended June 30, 2026, compared to $129,184,000 ($2.46 per diluted share) during the same period of 2025.

PNOI increased $7,644,000 from same property operations, $3,561,000 from newly developed and value-add properties and $2,965,000 from 2025 and 2026 acquisitions;

• PNOI was $147,890,000 ($2.75 per diluted share) for the three months ended September 30, 2026, compared to $134,374,000 ($2.52 per diluted share) during the same period of 2025.

PNOI increased $6,809,000 due to same property operations, $4,156,000 due to newly developed and value-add properties and $3,213,000 due to 2025 and 2026 acquisitions;

PNOI decreased $634,000 due to operating properties sold in 2025 and 2026.

Income recognized from straight-lining of rent decreased by $875,000 for the three months ended June 30, 2026, as compared to the same period of 2025.

PNOI was $282,936,000 ($5.27 per diluted share) for the six months ended June 30, 2026, compared to $255,362,000 ($4.88 per diluted share) during the same period of 2025.

PNOI increased $16,434,000 from same property operations, $6,264,000 from newly developed and value-add properties and $5,623,000 from 2025 and 2026 acquisitions;

Income recognized from straight-lining of rent increased by $70,000 for the three months ended September 30, 2026, as compared to the same period of 2025.

PNOI was $430,826,000 ($8.02 per diluted share) for the nine months ended September 30, 2026, compared to $389,736,000 ($7.41 per diluted share) during the same period of 2025.

PNOI increased $23,236,000 due to same property operations, $10,426,000 due to newly developed and value-add properties and $8,836,000 due to 2025 and 2026 acquisitions;

PNOI decreased $1,677,000 due to operating properties sold in 2025 and 2026.

Income recognized from straight-lining of rent decreased by $1,264,000 for the six months ended June 30, 2026, as compared to the same period of 2025.

• EastGroup recognized Gains on sales of real estate investments of $5,189,000 ($0.10 per diluted share) and $30,074,000 ($0.56 per diluted share) during the three and six months ended June 30, 2026, respectively.

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

Income recognized from straight-lining of rent decreased by $1,194,000 for the nine months ended September 30, 2026, as compared to the same period of 2025.

• EastGroup had no operating property sales during the three months ended September 30, 2026.

EastGroup recognized Gains on sales of real estate investments of $30,074,000 ($0.56 per diluted share) during the nine months ended September 30, 2026.

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

The Company’s 2025 and 2026 sales transactions are described in Note 8 of the Notes to Consolidated Financial Statements.

• Depreciation and amortization was $56,406,000 ($1.05 per diluted share) and $53,012,000 ($1.01 per diluted share) during the three months ended June 30, 2026 and 2025, respectively.

Depreciation and amortization was $111,903,000 ($2.09 per diluted share) and $105,532,000 ($2.02 per diluted share) during the six months ended June 30, 2026 and 2025, respectively.

• EastGroup recognized gains on sales of non-operating real estate of $4,709,000 ($0.09 per diluted share) during the three and nine months ended September 30, 2026.

There were no land sales during the same periods of 2025.

• Depreciation and amortization was $58,206,000 ($1.08 per diluted share) and $54,131,000 ($1.02 per diluted share) during the three months ended September 30, 2026 and 2025, respectively.

Depreciation and amortization was $170,109,000 ($3.17 per diluted share) and $159,663,000 ($3.03 per diluted share) during the nine months ended September 30, 2026 and 2025, respectively.

The increase is primarily due to operating properties acquired by the Company in 2025 and 2026 and properties transferred from Development and value-add properties in 2025 and 2026, partially offset by operating properties sold in 2025 and 2026.

• General and administrative was $7,207,000 ($0.13 per diluted share) for the three months ended June 30, 2026, as compared to $5,290,000 ($0.10 per diluted share) for the same period of 2025.

General and administrative was $14,823,000 ($0.28 per diluted share) for the six months ended June 30, 2026, as compared to $13,244,000 ($0.25 per diluted share) for the same period of 2025.

The increases are primarily due to additional overhead and personnel costs incurred to support portfolio growth.

• Interest expense recognized was $8,990,000 ($0.17 per diluted share) and $7,690,000 ($0.15 per diluted share) during the three months ended June 30, 2026 and 2025, respectively.

Interest expense recognized was $18,069,000 ($0.34 per diluted share) and $15,715,000 ($0.30 per diluted share) during the six months ended June 30, 2026 and 2025, respectively.

• Interest expense recognized was $9,617,000 ($0.18 per diluted share) and $7,685,000 ($0.14 per diluted share) during the three months ended September 30, 2026 and 2025, respectively.

Interest expense recognized was $27,686,000 ($0.52 per diluted share) and $23,400,000 ($0.44 per diluted share) during the nine months ended September 30, 2026 and 2025, respectively.

Refer to the table below for additional details.

• Weighted average shares outstanding increased by 1,204,000 shares on a diluted basis for the three months ended June 30, 2026, as compared to the same period of 2025.

Weighted average shares outstanding increased by 1,361,000 shares on a diluted basis for the six months ended June 30, 2026, as compared to the same period of 2025.

• Weighted average shares outstanding increased by 580,000 shares on a diluted basis for the three months ended September 30, 2026, as compared to the same period of 2025.

Weighted average shares outstanding increased by 1,100,000 shares on a diluted basis for the nine months ended September 30, 2026, as compared to the same period of 2025.

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

EastGroup entered into 51 leases with certain rent concessions on 2,447,000 square feet during the three months ended June 30, 2026, with total rent concessions of $9,112,000 over the terms of the leases.

EastGroup entered into 50 leases with certain rent concessions on 1,697,000 square feet during the three months ended September 30, 2026, with total rent concessions of $5,369,000 over the terms of the leases.

During the same period of 2025, the Company entered into 36 leases with certain rent concessions on 901,000 square feet with total rent concessions of $1,805,000 over the terms of the leases.

EastGroup entered into 77 leases with certain rent concessions on 3,283,000 square feet during the six months ended June 30, 2026, with total rent concessions of $11,307,000 over the terms of the leases.

EastGroup entered into 127 leases with certain rent concessions on 4,980,000 square feet during the nine months ended September 30, 2026, with total rent concessions of $16,676,000 over the terms of the leases.

During the same period of 2025, the Company entered into 110 leases with certain rent concessions on 2,988,000 square feet with total rent concessions of $6,601,000 over the terms of the leases.

The Company’s percentage of leased square footage for the operating portfolio was 96.8% at June 30, 2026, compared to 97.1% at June 30, 2025.

Occupancy for the Company’s operating portfolio at June 30, 2026 was 95.6% compared to 96.0% at June 30, 2025.

The following table presents the components of Interest expense for the three and six months ended June 30, 2026 and 2025:

The Company’s percentage of leased square footage for the operating portfolio was 97.3% at September 30, 2026, compared to 96.7% at September 30, 2025.

Occupancy for the Company’s operating portfolio at September 30, 2026 was 96.5% compared to 95.9% at September 30, 2025.

The following table presents the components of Interest expense 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 Increase

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(1) Includes interest on the Company’s unsecured debt with fixed interest rates per the debt agreements or effectively fixed interest rates due to interest rate swaps, as discussed in Note 15 in the Notes to Consolidated Financial Statements.

The Company’s variable rate interest expense increased by $24,000 and $455,000 for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025.

The Company’s variable rate interest expense increased by $890,000 and $1,345,000 for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025.

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

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

2026 2025 Increase

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4.44 % 5.17 % 4.43 % 5.19 %

The Company’s fixed rate interest expense increased by $1,585,000 and $2,971,000 for the three and six months ended June 30, 2026, respectively, as compared to the same periods in 2025, primarily as a result of new unsecured debt obtained during the year ended December 31, 2025:

NEW UNSECURED DEBT IN 2025 Margin Effectively Fixed Interest Rate Date Obtained Maturity Date Principal Amount

The Company’s fixed rate interest expense increased by $1,697,000 and $4,668,000 for the three and nine months ended September 30, 2026, respectively, as compared to the same periods in 2025, primarily as a result of new unsecured debt obtained during the year ended December 31, 2025:

NEW UNSECURED DEBT IN 2025 Margin (1)

Effectively Fixed Interest Rate Date Obtained Maturity Date Principal Amount

(In thousands)

$100 Million Senior Unsecured Term Loan 0.85% 4.11% 11/19/2025 04/30/2030 $ 100,000

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

$150 Million Senior Unsecured Term Loan 0.85% 4.15% 11/19/2025 03/14/2031 150,000

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

Weighted Average Interest Rate/Total Principal

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4.13% $ 250,000

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

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

The Company entered into interest rate swap agreements (further described in Note 15 in the Notes to Consolidated Financial Statements) to convert the loan’s SOFR rate to an effectively fixed interest rate.

The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swaps, as of June 30, 2026.

The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swaps, as of September 30, 2026.

The increase in fixed rate interest expense was partially offset by unsecured debt repayments during the year ended December 31, 2025:

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3.13% $ 145,000

EastGroup did not obtain, repay or refinance any unsecured debt during the first six months of 2026.

EastGroup did not obtain, repay or refinance any unsecured debt during the first nine months of 2026.

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

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

Capitalized interest increased by $309,000 and $1,072,000 during the three and six months ended June 30, 2026, as compared to the same periods of 2025, due to changes in development activity and spending.

Capitalized interest increased by $655,000 and $1,727,000 during the three and nine months ended September 30, 2026, as compared to the same periods of 2025, due to changes in development activity and spending.

Real Estate Improvements

Real estate improvements for EastGroup’s operating properties for the three and six months ended June 30, 2026 and 2025 were as follows:

Real estate improvements for EastGroup’s operating properties for the three and nine months ended September 30, 2026 and 2025 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2026 2025 2026 2025

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

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

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

Capitalized leasing costs for the three and six months ended June 30, 2026 and 2025 were as follows:

Capitalized leasing costs for the three and nine months ended September 30, 2026 and 2025 were as follows:

Three Months Ended

June 30, Six Months Ended June 30,

September 30, Nine Months Ended September 30,

Estimated Useful Life 2026 2025 2026 2025

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

Six Months Ended June 30,

Nine Months Ended September 30,

(In thousands)

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

The Company expects liquidity sources and needs in the coming year to be consistent in nature with those for the six months ended June 30, 2026.

The Company expects liquidity sources and needs in the coming year to be consistent in nature with those for the nine months ended September 30, 2026.

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

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

As of June 30, 2026, EastGroup had total immediate liquidity of approximately $917,648,000 comprised of $33,382,000 of cash and cash equivalents, $674,663,000 of availability on unsecured credit facilities, and approximately $209,603,000 of gross proceeds available on our outstanding forward equity sale agreements.

See further details discussed below.

Net cash provided by operating activities was $301,940,000 for the six months ended June 30, 2026.

The primary other sources of cash were borrowings on unsecured bank credit facilities, proceeds from common stock offerings and net proceeds from sales of real estate investments.

The Company distributed $166,902,000 in common stock dividends during the six months ended June 30, 2026.

In the future, the Company may also raise capital through accessing the public debt or convertible bond markets, as well as its common stock offering program (as discussed below).

As of September 30, 2026, EastGroup had total immediate liquidity of approximately $1,173,546,000 comprised of $284,000 of cash and cash equivalents, $478,128,000 of availability on unsecured credit facilities, and approximately $695,134,000 of gross sales available on our outstanding forward equity sale agreements.

Subsequent to September 30, 2026, the Company leveraged some of its capital to repay unsecured debt at maturity and fund certain real estate acquisitions (as discussed in Note 23 in the Notes to Consolidated Financial Statements).

Net cash provided by operating activities was $478,054,000 for the nine months ended September 30, 2026.

The primary other sources of cash were borrowings on unsecured bank credit facilities, proceeds from common stock offerings and net proceeds from sales of real estate investments and non-operating real estate.

The Company distributed $250,099,000 in common stock dividends during the nine months ended September 30, 2026.

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

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and capital improvements at various properties.

As of June 30, 2026, the Company was contractually obligated to pay the dividend declared in May 2026, which was paid in July 2026.

An amount for dividends payable of $84,932,000 was included in Accounts payable and accrued expenses at June 30, 2026, which includes dividends payable on unvested restricted stock of $1,735,000, which are subject to continued service and will be paid upon vesting in future periods.

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

As of September 30, 2026, the Company was contractually obligated to pay the dividend declared in August 2026, which was paid in October 2026.

An amount for dividends payable of $96,110,000 was included in Accounts payable and accrued expenses at September 30, 2026, which includes dividends payable on unvested restricted stock of $2,178,000, which are subject to continued service and will be paid upon vesting in future periods.

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 Weighted Average Interest Rate (1)

2 unchanged sentences

October 10, 2026 (2)

1.98% $ 100,000

December 15, 2026 3.75% 40,000

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

(2) This senior unsecured term loan was repaid subsequent to September 30, 2026.

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

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

As of June 30, 2026, the interest rate was 4.379% with no outstanding balance.

As of September 30, 2026, the interest rate was 4.635% with an outstanding balance of $165,000,000.

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

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

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

The Company’s unsecured bank credit facilities are further discussed in Note 11 in the Notes to Consolidated Financial Statements.

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

During the six months ended June 30, 2026, EastGroup sold, and subsequently settled the issuance of, 365,620 shares of common stock directly through sales agents under its Current ATM program at a weighted average price of $191.46 per share, providing aggregate net proceeds to the Company of $69,300,000.

During the six months ended June 30, 2026, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under the Current ATM Program with respect to 1,040,457 shares of common stock with an initial weighted average forward price of $201.45 per share.

During the nine months ended September 30, 2026, EastGroup sold, and subsequently settled the issuance of, 365,620 shares of common stock directly through sales agents under its Current ATM program at a weighted average price of $191.46 per share, providing aggregate net proceeds to the Company of $69,300,000.

During the nine months ended September 30, 2026, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under the Current ATM Program with respect to 3,443,388 shares of common stock with an initial weighted average forward price of $201.88 per share.

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

As of July 21, 2026, the Company had 1,040,457 shares of common stock, or approximately $207,051,000 of net proceeds, based on a weighted average forward price of $199.00 per share, available for settlement before the applicable settlement periods expire, which occur between March and June 2027.

Also as of July 21, 2026, approximately $720,397,000 of common stock remains available to be sold under the Current ATM Program.

As of October 20, 2026, EastGroup had 3,443,388 shares of common stock available for settlement prior to the expiration of the applicable settlement periods ranging from February 2027 to February 2028, for anticipated net sales of approximately $685,234,000, based on a weighted average forward price of $199.00 per share.

Also as of October 20, 2026, approximately $234,866,000 of common stock remains available to be sold under the Current ATM Program.

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

EastGroup’s other material cash requirements from known contractual and other obligations, including real estate property obligations, development and value-add obligations and tenant improvements as of December 31, 2025, did not materially change during the six months ended June 30, 2026.

Subsequent to September 30, 2026, the Company leveraged available capital to repay unsecured debt at maturity and fund certain real estate acquisitions (as discussed in Note 23 in the Notes to Consolidated Financial Statements).

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

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The allocation to tangible assets (land, building and improvements) is based upon management’s determination of the value of the property as if it were vacant using discounted cash flow models.

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

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

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

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis