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EASTGROUP PROPERTIES INC

EASTGROUP PROPERTIES INCEGP決算レポート

NYSE · professional service

Genpact Ltd. is an American information technology services, consulting, and outsourcing company headquartered in New York City, New York. Founded in Gurgaon, India, and legally domiciled in Bermuda, Genpact employs more than 125,000 people and provides services to clients in over 30 countries worldwide. Genpact is listed on the NYSE and generated revenues of US$4.48 billion in 2023.

What changed in EASTGROUP PROPERTIES INC's 10-K — 2024 vs 2025

Top changes in EASTGROUP PROPERTIES INC's 2025 10-K

206 paragraphs added · 224 removed · 184 edited across 8 sections

Item 1. Business

Business — how the company describes what it does

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EastGroup's property management teams are located in San Antonio, Austin, Miami, Jacksonville, San Francisco, Charlotte, Las Vegas and Greenville. These locations allow the Company to provide property management services to 87% of the Company’s operating portfolio on a square foot basis. In addition, the Company currently provides property administration (accounting of operations) for its entire portfolio.
EastGroup's property management teams are located in San Antonio, Austin, Miami, Jacksonville, San Francisco, Charlotte, Las Vegas and Greenville. These locations allow the Company to provide property management services to 88% of the Company’s operating portfolio on a square foot basis. In addition, the Company currently provides property administration (accounting of operations) for its entire portfolio.
EastGroup is focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States, primarily in the states of Texas, Florida, California, Arizona and North Carolina. EastGroup’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets.
EastGroup is focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States, primarily in the states of Texas, Florida, California, Arizona and North Carolina. EastGroup’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets.
The regional offices in Texas, California and Georgia provide oversight of the Company’s development and value-add program (as described in Note 1(e) in the Notes to Consolidated Financial Statements). As of December 31, 2024, EastGroup had 101 full-time employees.
The regional offices in Texas, California and Georgia provide oversight of the Company’s development and value-add program (as described in Note 1(e) in the Notes to Consolidated Financial Statements). As of December 31, 2025, EastGroup had 103 full-time employees.
The Company develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply-constrained submarkets in major Sunbelt regions. The Company’s core markets are in the states of Texas, Florida, California, Arizona and North Carolina. As of December 31, 2024, EastGroup owned 536 industrial properties in 12 states.
The Company develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply-constrained submarkets in high-growth regions. The Company’s core markets are in the states of Texas, Florida, California, Arizona and North Carolina. As of December 31, 2025, EastGroup owned 550 industrial properties in 12 states.
As of December 31, 2024, EastGroup’s operating portfolio was 97.1% leased to tenants in approximately 1,600 leases, with no single tenant accounting for more than approximately 1.6% of the Company’s annualized based rent (as defined in
As of December 31, 2025, EastGroup’s operating portfolio was 97.0% leased to tenants in approximately 1,700 leases, with no single 5 tenant accounting for more than approximately 1.5% of the Company’s annualized base rent (as defined in
As of that same date, the Company’s portfolio, including development projects and value-add properties in lease-up and under construction, included approximately 63.1 million square feet consisting of 497 business distribution properties containing 57.8 million square feet, 17 bulk distribution properties containing 4.4 million square feet, and 22 business service properties containing 900,000 square feet.
As of that same date, the Company’s portfolio, including development projects and value-add properties in lease-up and under construction, included approximately 65,000,000 square feet consisting of 510 business distribution properties containing 59,300,000 square feet, 19 bulk distribution properties containing 4,900,000 square feet, and 21 business service properties containing 800,000 square feet.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Our acquisition activities and their success are subject to the following risks: • when we are able to locate a desired property, competition from other real estate investors may significantly increase the purchase price; • acquired properties may fail to perform as we project; • the actual costs of repositioning or redeveloping acquired properties may be higher than our estimates; • acquired properties may be located in new markets where we face risks associated with an incomplete knowledge or understanding of the local market, a limited number of established business relationships in the area and a relative unfamiliarity with local governmental and permitting procedures; • we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and as a result, our results of operations and financial condition could be adversely affected; and • we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, to the transferor with respect to unknown liabilities.
Our acquisition activities and their success are subject to the following risks: • when we are able to locate desired property, competition from other real estate investors may significantly increase the purchase price; • acquired properties may fail to perform as we project; • the actual costs of repositioning or redeveloping acquired properties may be higher than our estimates; • acquired properties may be located in new markets where we face risks associated with an incomplete knowledge or understanding of the local market, a limited number of established business relationships in the area and a relative unfamiliarity with local governmental and permitting procedures; • we may be unable to quickly and efficiently integrate new acquisitions, particularly acquisitions of portfolios of properties, into our existing operations, and as a result, our results of operations and financial condition could be adversely affected; and • we may acquire properties subject to liabilities and without any recourse, or with only limited recourse, to the transferor with respect to unknown liabilities.
If, within a certain time period (as set in the officer’s agreement) following a change in control, we terminate any such officer’s employment other than for cause, or if any such officer elects to terminate his or her employment with us for reasons specified in the agreement, we will make a severance payment equal to the officer’s average annual compensation times an amount specified in the officer’s agreement, together with the officer’s base salary and vacation pay that have accrued but are unpaid through the date of termination.
If, within a certain time period (as set in the officer’s agreement) following a change in control, we terminate any 14 such officer’s employment other than for cause, or if any such officer elects to terminate his or her employment with us for reasons specified in the agreement, we will make a severance payment equal to the officer’s average annual compensation times an amount specified in the officer’s agreement, together with the officer’s base salary and vacation pay that have accrued but are unpaid through the date of termination.
If a tenant becomes bankrupt, the federal bankruptcy code will apply and, in some instances, may restrict the amount and recoverability of our claims against the tenant. A tenant’s default on its obligations to us could adversely affect our financial condition and the cash we have available for distribution. We face risks associated with our property development.
If a tenant becomes bankrupt, the federal bankruptcy code will apply and, in some instances, may restrict the amount and recoverability of our claims against the tenant. A tenant’s default on its obligations to us could adversely affect our financial condition and the cash we have available for distribution. 9 We face risks associated with our property development.
If we were to fail to qualify as a REIT, subject to certain limitations in the Internal Revenue 14 Code, corporate stockholders may be eligible for the dividends received deduction, and individual, trust and estate stockholders may be eligible to treat the dividends received from us as qualified dividend income taxable as net capital gains under the provisions of Section 1(h)(11) of the Internal Revenue Code.
If we were to fail to qualify as a REIT, subject to certain limitations in the Internal Revenue Code, corporate stockholders may be eligible for the dividends received deduction, and individual, trust and estate stockholders may be eligible to treat the dividends received from us as qualified dividend income taxable as net capital gains under the provisions of Section 1(h)(11) of the Internal Revenue Code.
However, non-corporate stockholders (including individuals) will not be able to deduct 20% of certain dividends they receive from us in accordance with Section 199A of the Internal Revenue Code. The REIT qualification requirements are extremely complex, and interpretation of the U.S. federal income tax laws governing REIT qualification is limited.
However, non-corporate stockholders (including individuals) will 13 not be able to deduct 20% of certain dividends they receive from us in accordance with Section 199A of the Internal Revenue Code. The REIT qualification requirements are extremely complex, and interpretation of the U.S. federal income tax laws governing REIT qualification is limited.
Unanticipated turnover or inadequate succession planning could have a material adverse impact on the Company's business plans and opportunities. In addition, attracting new or replacement personnel may be difficult in a competitive market. 15 We have severance and change in control agreements with certain of our officers that may deter changes in control of the Company.
Unanticipated turnover or inadequate succession planning could have a material adverse impact on the Company's business plans and opportunities. In addition, attracting new or replacement personnel may be difficult in a competitive market. We have severance and change in control agreements with certain of our officers that may deter changes in control of the Company.
As a result, we believe that most of our leases mitigate our exposure to increases in costs and operating expenses resulting from inflation. However, there can be no assurance that our tenants would be able to absorb these expense increases and be able to continue to pay us their portion of operating expenses, capital expenditures and rent.
As a result, we believe that most of our leases mitigate our exposure to increases in costs and operating expenses resulting from inflation. However, there can be no assurance that our tenants would be able to absorb these expense increases and be able to continue to pay us 12 their portion of operating expenses, capital expenditures and rent.
This concentration may expose us to the risk of economic downturns in this sector to a greater extent than if our business activities included other sectors of the real estate industry. We face risks due to the illiquidity of real estate which may limit our ability to vary our portfolio. Real estate investments are relatively illiquid.
This concentration may expose us to the risk of economic downturns in this sector to a greater extent than if our business activities included other sectors of the real estate industry. 10 We face risks due to the illiquidity of real estate which may limit our ability to vary our portfolio. Real estate investments are relatively illiquid.
If we are unable to lease all or a substantial portion of our 10 properties, or if the rental rates upon such leasing are significantly lower than expected rates, our cash generated before debt repayments and capital expenditures and our ability to make expected distributions to stockholders may be adversely affected.
If we are unable to lease all or a substantial portion of our properties, or if the rental rates upon such leasing are significantly lower than expected rates, our cash generated before debt repayments and capital expenditures and our ability to make expected distributions to stockholders may be adversely affected.
There is a risk that we may not be able to refinance existing debt or that the terms of any refinancing will not be as favorable as the terms of the existing debt. 12 We face risks associated with our dependence on external sources of capital.
There is a risk that we may not be able to refinance existing debt or that the terms of any refinancing will not be as favorable as the terms of the existing debt. We face risks associated with our dependence on external sources of capital.
If an uninsured 11 loss or a loss in excess of insured limits occurs with respect to one or more of our properties, then we could lose the capital we invested in the properties, as well as the anticipated future revenue from the properties.
If an uninsured loss or a loss in excess of insured limits occurs with respect to one or more of our properties, then we could lose the capital we invested in the properties, as well as the anticipated future revenue from the properties.
Additional debt financing may negatively impact our financial ratios, such as our debt-to-total market capitalization ratio, our debt-to-EBITDAre ratio and our fixed charge coverage ratio. Covenants in our credit agreements could limit our flexibility and adversely affect our financial condition .
Additional debt financing may negatively impact our financial ratios, such as our debt-to-total market capitalization ratio, our debt-to-EBITDAre ratio and our fixed charge coverage ratio. 11 Covenants in our credit agreements could limit our flexibility and adversely affect our financial condition .
EastGroup evaluates new development projects on a case-by-case basis including many factors such as construction costs, potential yields, and tenant demand, and no assurance can be given that inflationary pricing will not have a material adverse impact on our development pipeline and future results.
EastGroup evaluates new development projects on a case-by-case basis and considering many factors, including construction costs, potential yields, and tenant demand, and no assurance can be given that inflationary pricing will not have a material adverse impact on our development pipeline and future results.
Coverage under our existing insurance policies may be inadequate to cover losses, or we may not be able to obtain adequate insurance at certain properties in the future .
Coverage under our existing insurance policies may be inadequate to cover losses, or we may not be able to obtain adequate insurance for certain properties in the future .
We owned operating properties totaling 7,108,000 square feet in Houston and 6,108,000 square feet in Dallas, which represent 10.0% and 10.8%, respectively, of the Company’s total Real estate properties based on percentage of total annualized base rent (as defined in Item 2. Properties).
We owned operating properties totaling 7,108,000 square feet in Houston and 6,428,000 square feet in Dallas, which represent 9.5% and 10.9%, respectively, of the Company’s total Real estate properties based on percentage of total annualized base rent (as defined in Item 2. Properties).
Also, a downgrade in our credit ratings would trigger additional costs or other potentially negative consequences under our current and future credit facilities and debt instruments. Increases in interest rates would increase our interest expense. At December 31, 2024, we had no variable rate debt outstanding not protected by interest rate hedge contracts.
Also, a downgrade in our credit ratings would trigger additional costs or other potentially negative consequences under our current and future credit facilities and debt instruments. Increases in interest rates would increase our interest expense. At December 31, 2025, we had $18,845,000 variable rate debt outstanding not protected by interest rate hedge contracts.
Risks associated with our current and future development and construction activities include: • the availability of favorable financing alternatives; • the risk that we may not be able to obtain land on which to develop or that due to the increased cost of land, our activities may not be as profitable; • construction costs exceeding original estimates due to tariffs or elevated interest rates and increases in the costs of materials and labor; • disruption in supply and delivery chains; • construction and lease-up delays resulting in increased debt service, fixed expenses and construction costs; • expenditure of funds and devotion of management’s time to projects that we do not complete; • fluctuations of occupancy and rental rates at newly completed properties, which depend on a number of factors, including market and economic conditions, resulting in lower than projected rental rates and a corresponding lower return on our investment; and • complications (including building moratoriums and anti-growth legislation) in obtaining necessary zoning, occupancy and other governmental permits.
Risks associated with our current and future development and construction activities include: • the availability of favorable financing alternatives; • the risk that we may not be able to obtain land on which to develop or that due to the increased cost of land, our activities may not be as profitable; • construction costs exceeding original estimates due to tariffs or elevated interest rates and increases in the costs of materials and labor; • disruption in supply and delivery chains; • construction and lease-up delays resulting in increased debt service, fixed expenses and construction costs; • expenditure of funds and devotion of management’s time to projects that we do not complete; • fluctuations of occupancy and rental rates at newly completed properties, which depend on a number of factors, including market and economic conditions, resulting in lower than projected rental rates and a corresponding lower return on our investment; and • complications (including building moratoriums and anti-growth legislation) in obtaining necessary zoning, occupancy and other governmental permits, including delays or challenges arising from community opposition, administrative appeals, legal proceedings or other third-party actions that may increase costs, delay project completion or prevent development altogether.
We purchase some of our information technology from vendors, on whom our systems depend. We rely on commercially available systems, software, tools and monitoring to provide security for processing, transmission and storage of data relating to our business operations (including our financial transactions and records) and confidential customer data (including individually identifiable information relating to financial accounts).
We rely on commercially available systems, software, tools and monitoring to provide security for processing, transmission and storage of data relating to our business operations (including our financial transactions and records) and confidential customer data (including individually identifiable information relating to financial accounts).
Financing Risks We face risks associated with the use of debt to fund acquisitions and developments, including refinancing risk. We are subject to the risks normally associated with debt financing, including the risk that our cash flow will be insufficient to meet required payments of principal and interest.
We are subject to the risks normally associated with debt financing, including the risk that our cash flow will be insufficient to meet required payments of principal and interest.
Substantially all of our properties are located in the Sunbelt region of the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. As of December 31, 2024, our largest markets were Houston and Dallas.
Substantially all of our properties are located in high-growth regions of the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. As of December 31, 2025, our largest markets were Houston and Dallas.
Furthermore, deteriorating economic conditions including business layoffs, downsizing, industry slowdowns and other similar factors that affect our customers could negatively impact commercial real estate fundamentals and result in lower occupancy, lower rental rates and declining values in our real estate portfolio and in the collateral securing any loan investments we may make.
Furthermore, changes in industry conditions including business layoffs, downsizing, industry slowdowns, trade policy uncertainty, nearshoring, reshoring, logistics automation and other similar factors that affect our customers, could negatively impact commercial real estate fundamentals and result in lower occupancy, lower rental rates and declining values in our real estate portfolio and in the collateral securing any loan investments we may make.
Additionally, inflationary pricing may have a negative effect on the construction costs necessary to complete our development projects, including, but not limited to, costs of construction materials, labor and services from third-party contractors and suppliers. Higher construction costs could adversely impact our investments in real estate assets and our expected yields on development and value-add projects.
Additionally, inflationary pricing may have a negative effect on the construction costs necessary to complete our development projects, including, but not limited to, costs of construction materials, labor and services from third-party contractors and suppliers.
Turmoil in the global financial markets may have an adverse impact on the availability of credit to businesses generally and could lead to a further weakening of the U.S. and global economies. Currently these conditions have not impaired our ability to access capital markets and finance our operations.
Turmoil in the global financial markets may have an adverse impact on the availability of credit to businesses generally and could lead to a further weakening of the U.S. and global economies.
In addition, while most of our leases provide for scheduled rent increases, high levels of inflation could outpace these increases. As a result, our business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our minimum debt service obligations and to pay dividends and distributions to shareholders could be adversely affected over time.
As a result, our business, financial condition, results of operations, cash flows, liquidity and ability to satisfy our minimum debt service obligations and to pay dividends and distributions to shareholders could be adversely affected over time.
There is no guarantee that we will be able to mitigate the effects of inflation and related impacts, and the duration and extent of any prolonged periods of inflation, and any related adverse effects on our results of operations and financial condition, remain unknown at this time.
There is no guarantee that we will be able to mitigate the effects of inflation and related impacts, and the duration and extent of any prolonged periods of inflation.
We have filed a registration statement with the SEC allowing us to offer, from time to time, an indefinite amount of equity securities on an as-needed basis, including shares under our Current ATM Program (as defined in Liquidity and Capital Resources in Part II, Item 7 of this Annual Report on Form 10-K).
We have filed a registration statement with the SEC allowing us to offer, from time to time, an indefinite amount of equity securities on an as-needed basis, including shares under our at-the-market (“ATM”) program.
Accordingly, we may incur additional debt and would do so, for example, if it were necessary to maintain our status as a REIT.
Accordingly, we may incur additional debt and would do so, for example, if it were necessary to maintain our status as a REIT. We might become more highly leveraged as a result, and our financial condition and cash available for distribution to stockholders might be negatively affected and the risk of default on our indebtedness could increase.
We might become more highly leveraged as a result, and our financial condition and cash available for distribution to stockholders might be negatively affected and the risk of default on our indebtedness could increase. 13 General Risk Factors Inflation and related volatility in the economy could negatively impact our tenants, our results of operations and the value of our publicly-traded equity securities.
General Risk Factors Inflation and related volatility in the economy could negatively impact our tenants, our results of operations and the value of our publicly-traded equity securities.
In addition, any proposed legislation enacted to address climate change could increase the costs of energy, utilities and overall development. The resulting costs of any proposed legislation may adversely affect our or our tenants' financial position, results of operations and cash flows.
Additionally, climate-related considerations may influence tenant location decisions, lease terms, property valuations or lender underwriting standards, which could adversely affect demand for our properties or the availability and cost of capital. In addition, any proposed legislation enacted to address climate change could increase the costs of energy, utilities and overall development.
Added
Climate-related regulatory, legal or market initiatives, including evolving energy efficiency standards, emissions reduction requirements, benchmarking or reporting obligations, or tenant-driven sustainability expectations, could require additional capital expenditures, operational changes or increased administrative costs.
Added
The resulting costs of any proposed legislation may adversely affect our or our tenants' financial position, results of operations and cash flows. Financing Risks We face risks associated with the use of debt to fund acquisitions and developments, including refinancing risk.
Added
Changes in trade policy, including the imposition, expansion or modification of tariffs on imported goods, could further increase costs for certain of our tenants and could disrupt tenant inventory strategies, operating margins or expansion plans.
Added
In addition, while most of our leases provide for scheduled rent increases, high levels of inflation could outpace these increases. To the extent tariffs or other trade restrictions contribute to sustained inflationary pressures or increased costs across supply chains, our tenants' ability to absorb such costs and maintain their operations could be adversely affected.
Added
Tariffs on construction materials, equipment or component parts, or supply-chain disruptions associated with trade policy changes, could further increase development and redevelopment costs or delay project timelines. Higher construction costs could adversely impact our investments in real estate assets and our expected yields on development and value-add projects.
Added
Geopolitical tensions, changes in international trade relationships, and the imposition or escalation of tariffs or other trade restrictions could increase economic uncertainty, disrupt global and domestic supply chains, and adversely affect business confidence and investment decisions. Currently these conditions have not impaired our ability to access capital markets and finance our operations.
Added
In addition to enterprise information technology systems, we rely on technology and automated systems to operate and manage certain aspects of our properties and business processes. We purchase some of our information technology from vendors, on whom our systems depend.
Added
Cybersecurity incidents could also result in interruptions to tenant operations, impair our ability to provide services to tenants, or require us to incur significant costs to remediate systems, notify affected parties, comply with regulatory or contractual obligations, or respond to litigation or governmental inquiries.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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These controls are tested by the Company’s internal audit function and control deficiencies, if any, would be reported to senior management and the Audit Committee of the Board of Directors. 16 As of the date of this report, the Company has not identified breaches from any cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to affect operations, business strategy or financial condition.
These controls are tested by the Company’s internal audit function and control deficiencies, if any, would be reported to senior management and the Audit Committee of the Board of Directors. 15 As of the date of this report, the Company has not identified breaches from any cybersecurity threats, including as a result of any prior cybersecurity incidents, that have materially affected or are reasonably likely to affect operations, business strategy or financial condition.
These properties are located primarily in the Sunbelt states of Texas, Florida, California, Arizona and North Carolina, and the majority are clustered around major transportation features in supply constrained submarkets.
These properties are located primarily in the states of Texas, Florida, California, Arizona and North Carolina, and the majority are clustered around major transportation features in supply constrained submarkets.
Additionally, management conducts comprehensive risk surveys annually and presents the results of these surveys to the Board of Directors for discussion. ITEM 2. PROPERTIES. EastGroup owned 536 industrial properties as of December 31, 2024.
Additionally, management conducts comprehensive risk surveys annually and presents the results of these surveys to the Board of Directors for discussion. ITEM 2. PROPERTIES. EastGroup owned 550 industrial properties as of December 31, 2025.
The Company has developed approximately 49% of its total portfolio (on a square foot basis), which includes real estate properties and development and value-add properties in lease-up and under construction. The Company’s focus is the ownership of business distribution space (92% of the total portfolio) with the remainder in bulk distribution space (7%) and business service space (1%).
The Company has developed approximately 50% of its total portfolio (on a square foot basis), which includes real estate properties and development and value-add properties in lease-up and under construction. The Company’s focus is the ownership of business distribution space (91% of the total portfolio) with the remainder in bulk distribution space (8%) and business service space (1%).
(2) Annualized base rent represents the monthly cash rental rate, excluding tenant expense reimbursements, as of December 31, 2024, multiplied by 12 months. (3) Includes month-to-month leases.
(2) Annualized base rent represents the monthly cash rental rate, excluding tenant expense reimbursements, as of December 31, 2025, multiplied by 12 months.
As of February 11, 2025, EastGroup’s operating portfolio was 96.5% leased and 95.7% occupied by tenants in approximately 1,600 leases, with no single tenant accounting for more than approximately 1.6% of the Company’s annualized based rent, as defined in the table below.
As of February 10, 2026, EastGroup’s operating portfolio was 96.5% leased and 96.1% occupied by tenants in approximately 1,700 leases, with no single tenant accounting for more than approximately 1.5% of the Company’s annualized base rent, as defined in the table below.
At December 31, 2024, EastGroup did not own any single property with a book value that was 10% or more of total book value or with gross revenues that were 10% or more of total gross revenues. 17 The Company’s lease expirations are detailed below: Years Ending December 31, Number of Leases Expiring (1) Total Area of Leases Expiring (in Square Feet) (1) Annualized Base Rent of Leases Expiring (1) (2) % of Total Base Rent of Leases Expiring (1) 2025 (3) 253 5,526,000 $ 50,843,000 10.1% 2026 326 10,178,000 $ 85,709,000 17.0% 2027 328 10,392,000 $ 91,190,000 18.0% 2028 260 8,031,000 $ 72,141,000 14.3% 2029 224 7,915,000 $ 71,009,000 14.1% 2030 114 5,735,000 $ 47,574,000 9.4% 2031 62 2,670,000 $ 25,944,000 5.1% 2032 33 2,227,000 $ 17,342,000 3.4% 2033 18 2,290,000 $ 21,216,000 4.2% 2034 and beyond 27 2,325,000 $ 22,447,000 4.4% (1) Does not include lease renewal options.
At December 31, 2025, EastGroup did not own any single property with a book value that was 10% or more of total book value or with gross revenues that were 10% or more of total gross revenues. 16 The Company’s lease expirations are detailed below: Year of Lease Expiration Total Rentable Square Feet (1) Annualized Base Rent of Leases Expiring (1) (2) % of Total Base Rent of Leases Expiring (1) 2026 8,134,000 $ 73,434,000 13.1% 2027 10,338,000 95,930,000 17.2% 2028 9,310,000 91,046,000 16.3% 2029 8,885,000 83,768,000 15.0% 2030 8,353,000 80,478,000 14.4% 2031 4,904,000 46,548,000 8.3% 2032 3,412,000 26,382,000 4.7% 2033 2,581,000 24,315,000 4.3% 2034 1,132,000 10,666,000 1.9% 2035 and beyond 2,638,000 26,662,000 4.8% (1) Does not include lease renewal options.

Item 2. Properties

Properties — owned and leased real estate

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Corporate Responsibility Matters EastGroup’s commitment to corporate responsibility initiatives is evidenced by its building standards, corporate policies and procedures and company culture. At EastGroup, protecting the environment is important to the Company’s employees, customers and communities. The Company strives to support sustainability through its commitment to build high performance and environmentally responsible properties.
Corporate Responsibility Matters EastGroup’s commitment to corporate responsibility is evidenced by its building standards, corporate policies and procedures and company culture. At EastGroup, protecting the environment is important to the Company’s employees, customers and communities. The Company strives to support sustainability through its commitment to build high performance and environmentally responsible properties.
EastGroup’s properties have generally been subject to Phase I Environmental Site Assessments (“ESAs”) by independent environmental consultants and, as necessary, have 6 been subjected to Phase II ESAs. These reports have not revealed any potential significant environmental liability.
EastGroup’s properties have generally been subject to Phase I Environmental Site Assessments (“ESAs”) by independent environmental consultants and, as necessary, have been subjected to Phase II ESAs. These reports have not revealed any potential significant environmental liability.
The Company also adopted its Corporate Responsibility Policy during 2024, formalizing EastGroup's commitments, goals and targets related to topics such as environmental sustainability, climate resilience, social responsibility, stakeholder engagement and corporate governance.
The Company adopted its Corporate Responsibility Policy during 2024, formalizing EastGroup's commitments, goals and targets related to topics such as environmental sustainability, climate resilience, social responsibility, stakeholder engagement and corporate governance.
EastGroup plans to hold its properties as long-term investments but may determine to sell certain properties that no longer meet its investment criteria. The Company may provide financing to a prospective purchaser in connection with such sales of property if market conditions require.
EastGroup plans to hold its properties as long-term investments but may decide to sell certain properties that no longer meet its investment criteria. The Company may provide financing to a prospective purchaser in connection with such sales of property if market conditions require.
Using the data obtained from these efforts, EastGroup completed its second annual GRESB ® Real Estate Assessment, which provided the Company with additional insight into its environmental, social and governance management and performance as compared to its industry peers.
Using the data obtained from these efforts, EastGroup completed its third annual GRESB ® Real Estate Assessment, which provided the Company with additional insight into its environmental, social and governance management and performance as compared to its industry peers.
During 2024, EastGroup continued to work with a sustainability consulting firm to track and benchmark the Company's environmental data and further expand its corporate responsibility policies, practices and voluntary disclosures.
During 2025, EastGroup continued to work with a sustainability consulting firm to track and benchmark the Company's environmental data and further expand its corporate responsibility policies, practices and voluntary disclosures.
Additional trainings covering numerous environmental sustainability topics and trends are available to employees through our third-party sustainability consultant. All of our employees participate in annual performance reviews and feedback sessions.
Additional training covering numerous environmental sustainability topics and trends are available to employees through our third-party sustainability consultant. All of our employees participate in annual performance reviews and feedback sessions.
Our voluntary turnover rate was 4%, and our involuntary turnover rate was 1% during the year ended December 31, 2024. • Compensation, Benefits, Health and Safety: We offer a competitive pay structure along with a comprehensive employee benefits program and what we believe are socially-responsible policies and practices in order to support the overall well-being of our employees and create a safe, professional and inclusive work environment.
Our voluntary turnover rate was 3%, and our involuntary turnover rate was 4% during the year ended December 31, 2025. • Compensation, Benefits, Health and Safety: We offer a competitive pay structure along with a comprehensive employee benefits program and what we believe are socially-responsible policies and practices in order to support the overall well-being of our employees and create a safe, professional and inclusive work environment.
In the near term, the Company funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities, as discussed under the heading Liquidity and Capital Resources in Part II, Item 7 of this Annual Report on Form 10-K.
The Company typically funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities, as discussed under the heading Liquidity and Capital Resources in Part II, Item 7 of this Annual Report on Form 10-K.
EastGroup assesses climate-related risks using information obtained through third-party risk and resilience assessments and seeks to engage with tenants on climate risk and other environmental matters, including through newsletters, recycling initiatives, Earth Day celebrations, and other tenant appreciation events at many of its properties.
EastGroup assesses climate-related risks using information obtained through third-party risk and resilience assessments and seeks to engage with tenants on climate risk and other environmental matters through biennial engagement surveys, periodic newsletters and engagement activities at many of its properties, including recycling initiatives, Earth Day celebrations and other tenant appreciation events.
For future debt issuances, the Company intends to issue primarily unsecured fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps. The Company may also access the public debt market in the future as a means to raise capital.
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.
Item 2. 5 Properties ) for the year ended December 31, 2024. The properties in the Company's development and value-add program were 21.8% leased as of December 31, 2024. During 2024, EastGroup increased its holdings in real estate properties through its acquisition and development programs.
Item 2. Properties ) for the year ended December 31, 2025. The properties in the Company's development and value-add program were 18.8% leased as of December 31, 2025. During 2025, EastGroup increased its holdings in real estate properties through its acquisition and development programs.
Human Capital Matters We believe our employees are a critical component of the success and sustainability of our Company, and we are committed to providing a diverse and inclusive work environment that encourages collaboration and teamwork. • Workforce Diversity: As of December 31, 2024, we employed 101 team members, across 15 locations in Texas, Florida, California, Arizona, North Carolina, Nevada, Georgia, Mississippi and South Carolina.
Human Capital Matters We believe our employees are a critical component of the success and sustainability of our Company, and we are committed to providing a diverse and inclusive work environment that encourages collaboration and teamwork. 7 • Workforce Diversity: As of December 31, 2025, we employed 103 full-time team members and one temporary employee, across 16 locations in Texas, Florida, California, Arizona, North Carolina, Nevada, Georgia, Mississippi and South Carolina.
The Nominating and Corporate Governance Committee of the Board of Directors has direct oversight of our corporate responsibility program and initiatives, and in 2024, met for two formal discussions on these topics and also received periodic updates from Company management. Supplemental U.S.
The Nominating and Corporate Governance Committee of the Board of Directors has direct oversight of our corporate responsibility program and initiatives, and in 2025, met for one formal discussion on these topics and also received periodic updates from Company management. 8
As market conditions permit, EastGroup issues equity or employs fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. Moody’s Investors Service has assigned EastGroup an issuer rating of Baa2 with a stable outlook.
As market conditions permit, EastGroup issues equity or employs fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. In May 2025, Moody’s Ratings affirmed EastGroup's issuer rating of Baa2 and changed its rating outlook from stable to positive.
Also during 2024, the Company began construction of 10 development projects containing 1,585,000 square feet and transferred seven projects, which contain 1,519,000 square feet and had costs of $199,971,000 at the date of transfer, from its development and value-add program to real estate properties.
Also during 2025, the Company began construction of a redevelopment project and six development projects containing 1,439,000 square feet and transferred 11 projects, which contain 2,109,000 square feet and had costs of $279,082,000 at the date of transfer, from its development and value-add program to real estate properties.
Many such laws impose liability without regard to whether the owner knows of, or was responsible for, the presence of such hazardous or toxic substances. The presence of such substances, or the failure to properly remediate such substances, may adversely affect the owner’s ability to sell or rent such property or to use such property as collateral in its borrowings.
The presence of such substances, or the failure to properly remediate such substances, may adversely affect the owner’s ability to 6 sell or rent such property or to use such property as collateral in its borrowings.
As of December 31, 2024, the average tenure of our workforce was 10 years, and 12 years for our officers; 76% of our employees at the manager level and above were promoted from within the Company.
We seek to develop leaders and promote from within the organization when opportunities arise. As of December 31, 2025, the average tenure of our workforce was 9 years, and 12 years for our officers; 74% of our employees at the manager level and above were promoted from within the Company.
On a regular basis, Company management holds corporate responsibility discussions with the Board of Directors; in 2024, our management and the Board of Directors formally met to discuss these topics four times.
We conduct biennial employee engagement surveys and use the results as part of our efforts to enhance workplace culture, performance and employee experience. On a regular basis, Company management holds corporate responsibility discussions with the Board of Directors; in 2025, our management and the Board of Directors formally met to discuss these topics four times.
The Company acquired 2,474,000 square feet of operating properties and 61.1 acres of land for a total of $403,773,000.
The Company acquired 739,000 square feet of operating properties and 300.4 acres of development land for a total of $261,683,000.
As of such date, 7 100% of these employees were full-time and none were members of a union or subject to a collective bargaining agreement. Our team is comprised of the following types of personnel: • asset, construction and property managers; • accounting, administrative, human resources, investor relations and information technology professionals; and • our corporate leadership team.
Our team is comprised of the following types of personnel: • asset, construction and property managers; • accounting, administrative, human resources, investor relations and information technology professionals; and • our corporate leadership team. Our employee base is comprised of 73% women and 27% men, and 13% of our employees self-identified as members of a racial or ethnic minority group.
As of December 31, 2024, 14% of our employees self-identified as members of a racial or ethnic minority group. Our Board of Directors is 29% comprised of women, and one of the seven Board members is a member of a racial or ethnic minority group.
Women constitute 29% of our Board of Directors, and one of the seven directors self-identified as a member of a racial or ethnic minority group. • Employee Tenure: We believe our culture supports our employees and creates a positive, professional environment that encourages longevity for our team members.
As of December 31, 2024, our employee base is gender diverse, comprised of 72% women and 28% men. Also, of the employees hired during the year ended December 31, 2024, 67% are women. The officer group is comprised of 49% women and 51% men.
Of the employees hired during the year ended December 31, 2025, 78% were women and 22% self-identified as members of a racial or ethnic minority group. The officer group is comprised of 47% women and 53% men.
Removed
During 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market, containing 159,000 square feet and disposed of 5.4 acres of land in two markets, generating gross sales proceeds of $18,311,000.
Added
During 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000. The Company did not recognize a gain or loss on this disposition.
Removed
With 101 employees and seven directors, each team member plays a vital role in the success of the Company. • Employee Tenure: We believe our culture supports our employees and creates a positive, professional environment that encourages longevity for our team members. We seek to develop leaders and promote from within the organization when opportunities arise.
Added
Many such laws impose liability without regard to whether the owner knows of, or was responsible for, the presence of such hazardous or toxic substances.
Removed
Federal Income Tax Considerations The following discussion supplements and updates the disclosures under “Certain United States Federal Income Tax Considerations” in the prospectus dated December 16, 2022, contained in our Registration Statement on Form S-3 filed with the 8 SEC on December 16, 2022.
Added
As of such date, none of these employees were members of a union or subject to a collective bargaining agreement. Unless otherwise noted, the human capital metrics and initiatives described below reflect our full-time employee base as of December 31, 2025.
Removed
Capitalized terms herein that are not otherwise defined shall have the same meaning as when used in such disclosures (as supplemented). On December 29, 2022, the IRS promulgated final Treasury Regulations under Sections 897, 1441, 1445, and 1446 of the Code that were, in part, intended to coordinate various withholding regimes for non-U.S. stockholders.
Removed
The new Treasury Regulations provide that: (i) The withholding rules applicable to ordinary REIT dividends paid to a non-U.S. stockholder (generally, a 30% rate of withholding on gross amounts unless otherwise reduced by treaty or effectively connected with such non-U.S. stockholder’s trade or business within the U.S. and proper certifications are provided) will apply to (a) that portion of any distribution paid by us that is not designated as a capital gain dividend, a return of basis or a distribution in excess of the non-U.S. stockholder’s adjusted basis in its stock that is treated as gain from the disposition of such stock and (b) any portion of a capital gain dividend paid by us that is not treated as gain attributable to the sale or exchange of a U.S. real property interest by reason of the recipient not owning more than 10% of a class of our stock that is regularly traded on an established securities market during the one-year period ending on the date of the capital gain dividend.
Removed
(ii) The withholding rules under FIRPTA will apply to a distribution paid by us in excess of a non-U.S. stockholder’s adjusted basis in our stock, unless the interest in our stock is not a U.S. real property interest (for example, because we are a domestically controlled qualified investment entity) or the distribution is paid to a “withholding qualified holder.” A “withholding qualified holder” means a qualified holder (as defined below) and a foreign partnership all of the interests of which are held by qualified holders, including through one or more partnerships.
Removed
(iii) The withholding rules under FIRPTA will apply to any portion of a capital gain dividend paid to a non-U.S. stockholder that is attributable to the sale or exchange of a U.S. real property interest, unless it is paid to a withholding qualified holder.
Removed
In the case of FIRPTA withholding under clause (ii) above, the applicable withholding rate is currently 15%, and in the case of FIRPTA withholding under clause (iii) above the withholding rate is currently 21%.
Removed
For purposes of FIRPTA withholding under clause (iii), whether a capital gain dividend is attributable to the sale or exchange of a U.S. real property interest is determined taking into account the general exception from FIRPTA distribution treatment for distributions paid to certain non-U.S. stockholders under which any distribution by us to a non-U.S. stockholder with respect to any class of stock which is regularly traded on an established securities market located in the United States is not treated as gain recognized from the sale or exchange of a U.S. real property interest if such non-U.S. stockholder did not own more than 10% of such class of stock at any time during the one-year period ending on the date of such distribution.
Removed
To the extent inconsistent, these Treasury Regulations supersede the discussion on withholding contained in the above-referenced disclosures (as supplemented) under the heading “Taxation of Non-U.S.
Removed
Shareholders.” However, if, notwithstanding these Treasury Regulations, we encounter difficulties in properly characterizing a distribution for purposes of the withholding rules, we may decide to withhold on such distribution at the highest possible U.S. federal withholding rate that we determine could apply. Treasury Regulations also provide new guidance regarding qualified foreign pension funds.
Removed
Accordingly, the discussion contained in the paragraph under “Certain United States Federal Income Tax Considerations – Taxation of Non-U.S. Shareholders – Qualified Foreign Pension Funds” is hereby deleted and replaced with the following: Qualified Foreign Pension Funds .
Removed
In general, for FIRPTA purposes, and subject to the discussion below regarding “qualified holders,” neither a “qualified foreign pension fund” (as defined below) nor any entity all of the interests of which are held by a qualified foreign pension fund is treated as a foreign person, thereby exempting such entities from tax under FIRPTA.
Removed
A “qualified foreign pension fund” is an organization or arrangement (i) created or organized in a foreign country, (ii) established by a foreign country (or one or more political subdivisions thereof) or one or more employers to provide retirement or pension benefits to current or former employees (including self-employed individuals) or their designees as a result of, or in consideration for, services rendered, (iii) which does not have a single participant or beneficiary that has a right to more than 5% of its assets or income, (iv) which is subject to government regulation and with respect to which annual information about its beneficiaries is provided, or is otherwise available, to relevant local tax authorities and (v) with respect to which, under its local laws, (A) contributions that would otherwise be subject to tax are deductible or excluded from its gross income or taxed at a reduced rate, or (B) taxation of its investment income is deferred, or such income is excluded from its gross income or taxed at a reduced rate.
Removed
Under Treasury Regulations, subject to the discussion below regarding “qualified holders,” a “qualified controlled entity” also is not generally treated as a foreign person for purposes of FIRPTA.
Removed
A qualified controlled entity generally includes a trust or corporation organized under the laws of a foreign country all of the interests of which are held by one or more qualified foreign pension funds either directly or indirectly through one or more qualified controlled entities. 9 Treasury Regulations further require that a qualified foreign pension fund or qualified controlled entity will not be exempt from FIRPTA with respect to dispositions of U.S. real property interests or REIT distributions attributable to the same unless the qualified foreign pension fund or qualified controlled entity is a “qualified holder.” To be a qualified holder, a qualified foreign pension fund or qualified controlled entity must satisfy one of two alternative tests at the time of the disposition of the U.S. real property interest or the REIT distribution.
Removed
Under the first test, a qualified foreign pension fund or qualified controlled entity is a qualified holder if it owned no U.S. real property interests as of the earliest date during an uninterrupted period ending on the date of the disposition or distribution during which it qualified as a qualified foreign pension fund or qualified controlled entity.
Removed
Alternatively, if a qualified foreign pension fund or qualified controlled entity held U.S. real property interests as of the earliest date during the period described in the preceding sentence, it can be a qualified holder only if it satisfies certain testing period requirements.
Removed
Treasury Regulations also provide that a foreign partnership all of the interests of which are held by qualified holders, including through one or more partnerships, may certify its status as such and will not be treated as a foreign person for purposes of withholding under Section 1445 of the Code (and Section 1446 of the Code, as applicable).

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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ITEM 3. LEGAL PROCEEDINGS. The Company is not presently involved in any material litigation nor, to its knowledge, is any material litigation threatened against the Company or its properties, other than routine litigation arising in the ordinary course and other actions not deemed to be material.
ITEM 3. LEGAL PROCEEDINGS. The Company is not presently involved in any litigation nor, to its knowledge, is any litigation threatened against the Company or its properties, other than routine litigation arising in the ordinary course of business and other actions not deemed to be material.
The Company cannot predict the outcome of any litigation with certainty, and some lawsuits, claims or proceedings may be disposed of unfavorably to the Company, which could materially affect its financial condition or results of operations. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. 18 PART II. OTHER INFORMATION
However, the Company cannot predict the outcome of any litigation with certainty, and some lawsuits, claims or proceedings may be disposed of unfavorably to the Company, which could materially affect its financial condition or results of operations. ITEM 4. MINE SAFETY DISCLOSURES. Not applicable. 17 PART II. OTHER INFORMATION
Substantially all of these matters are anticipated to be covered by the Company’s liability insurance; they are also not expected to have a material adverse effect on the Company’s financial condition or results of operations, individually or in the aggregate.
Management believes that any such matters will not have a material adverse effect on the Company’s financial condition or results of operations, individually or in the aggregate. Substantially all of these matters are anticipated to be covered by the Company’s liability insurance.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Federal Income Tax Treatment of Share Distributions Years Ended December 31, 2024 2023 Common Share Distributions: (Per share) Ordinary dividends $ 5.21028 5.02083 Nondividend distributions — — Unrecaptured Section 1250 capital gain — — Other capital gain — — Total Common Distributions (1) $ 5.21028 5.02083 (1) Pursuant to Internal Revenue Code of 1986, as amended, Section 857(b)(9), cash distributions made on January 15, 2025 with a record date of December 31, 2024 were treated as received by shareholders on December 31, 2024 to the extent of 2024 undistributed earnings and profits.
Federal Income Tax Treatment of Share Distributions Years Ended December 31, 2025 2024 Common Share Distributions: (Per share) Ordinary dividends $ 5.91119 5.21028 Nondividend distributions — — Unrecaptured Section 1250 capital gain — — Other capital gain — — Total Common Distributions (1) $ 5.91119 5.21028 (1) Pursuant to Internal Revenue Code of 1986, as amended, Section 857(b)(9), cash distributions made on January 15, 2026, with a record date of December 31, 2025, were treated as received by shareholders on December 31, 2025, to the extent of 2025 undistributed earnings and profits.
The Company distributed all of its 2024 and 2023 taxable income to its stockholders. We generally pay quarterly cash dividends to holders of our common stock at the discretion of our Board of Directors.
The Company distributed all of its 2025 and 2024 taxable income to its stockholders. We generally pay quarterly cash dividends to holders of our common stock at the discretion of our Board of Directors.
The following table summarizes the federal income tax treatment for all distributions by the Company for the years 2024 and 2023.
The following table summarizes the federal income tax treatment for all distributions by the Company for the years 2025 and 2024.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers Period Total Number of Shares Purchased Weighted Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs October 1, 2024 through October 31, 2024 — $ — — — November 1, 2024 through November 30, 2024 (1) 14 172.72 — — December 1, 2024 through December 31, 2024 (1) 31 172.48 — — Total 45 $ 172.55 — (1) As permitted under the Company’s equity compensation plan, these shares were withheld by the Company to satisfy the tax withholding obligations in connection with the issuance of shares of common stock. 19 Performance Graph The following graph compares, over the five years ended December 31, 2024, the cumulative total shareholder return on EastGroup’s common stock with the cumulative total return of the Standard & Poor’s 500 Total Return Index (S&P 500 Total Return) and the FTSE Equity REIT index prepared by the National Association of Real Estate Investment Trusts (FTSE Nareit Equity REITs).
Purchases of Equity Securities by the Issuer and Affiliated Purchasers Period Total Number of Shares Purchased Weighted Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs October 1, 2025 through October 31, 2025 — $ — — — November 1, 2025 through November 30, 2025 (1) 69 177.24 — — December 1, 2025 through December 31, 2025 — — — — Total 69 $ 177.24 — (1) As permitted under the Company’s equity compensation plan, these shares were withheld by the Company to satisfy the tax withholding obligations in connection with the issuance of shares of common stock. 18 Performance Graph The following graph compares, over the five years ended December 31, 2025, the cumulative total shareholder return on EastGroup’s common stock with the cumulative total return of the Standard & Poor’s 500 Total Return Index (S&P 500 Total Return) and the FTSE Equity REIT index prepared by the National Association of Real Estate Investment Trusts (FTSE Nareit Equity REITs).
Cash distributions made on January 12, 2024 with a record date of December 29, 2023 were treated as received by shareholders on December 31, 2023 to the extent of 2023 undistributed earnings and profits.
Cash distributions made on January 15, 2025, with a record date of December 31, 2024, were treated as received by shareholders on December 31, 2024, to the extent of 2024 undistributed earnings and profits.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company’s shares of common stock are listed for trading on the NYSE under the symbol “EGP.” As of February 11, 2025, there were 378 holders of record of the Company’s 52,024,019 outstanding shares of common stock.
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. The Company’s shares of common stock are listed for trading on the NYSE under the symbol “EGP.” As of February 10, 2026, there were 355 holders of record of the Company’s 53,334,206 outstanding shares of common stock.
Fiscal years ended December 31, 2019 2020 2021 2022 2023 2024 EastGroup $ 100.00 106.70 179.73 120.29 153.53 138.42 FTSE Nareit Equity REITs 100.00 92.00 131.78 99.67 113.35 123.25 S&P 500 Total Return 100.00 118.40 152.39 124.79 157.60 197.03 The information above assumes that the value of the investment in shares of EastGroup’s common stock and each index was $100 on December 31, 2019, and that all dividends were reinvested.
Fiscal years ended December 31, 2020 2021 2022 2023 2024 2025 EastGroup $ 100.00 168.44 112.74 143.89 129.73 148.98 FTSE Nareit Equity REITs 100.00 143.24 108.33 123.20 133.96 137.82 S&P 500 Total Return 100.00 128.71 105.40 133.11 166.41 196.16 The information above assumes that the value of the investment in shares of EastGroup’s common stock and each index was $100 on December 31, 2020, and that all dividends were reinvested.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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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. 22 EastGroup sometimes refers to PNOI from Same Properties as “Same PNOI”; the Company also presents Same PNOI Excluding Income from Lease Terminations.
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”; the Company also presents Same PNOI Excluding Income from Lease Terminations.
Same Properties is defined as operating properties owned during the entire current period and prior year reporting period. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded.
Same Properties is defined as operating properties owned during the entire 21 current period and prior year reporting period. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded.
The amounts allocated to above and below market lease intangibles are included in Other assets and Other liabilities , respectively, on the Consolidated Balance Sheets and are amortized to rental income over the remaining terms of the respective leases.
The amounts allocated to above and below market lease intangibles are included in Other assets, net and Other liabilities , respectively, on the Consolidated Balance Sheets and are amortized to rental income over the remaining terms of the respective leases.
The Company’s exposure to property operating expenses is primarily due to vacancies and leases for occupied space that limit the amount of expenses that can be recovered. The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO Attributable to Common Stockholders for the three fiscal years ended December 31, 2024, 2023 and 2022.
The Company’s exposure to property operating expenses is primarily due to vacancies and leases for occupied space that limit the amount of expenses that can be recovered. The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO Attributable to Common Stockholders for the three fiscal years ended December 31, 2025, 2024 and 2023.
In-place lease intangibles are valued based upon management’s assessment of factors such as an estimate of foregone rents and avoided leasing costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.
In-place lease intangibles are valued based upon management’s assessment of factors such as an estimate of forgone rents and avoided leasing costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.
The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI Excluding Income from Lease Terminations for the three fiscal years ended December 31, 2024, 2023 and 2022.
The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI Excluding Income from Lease Terminations for the three fiscal years ended December 31, 2025, 2024 and 2023.
In connection with the Current ATM program, we may sell shares of our common stock through sales agents or through certain financial institutions acting as forward purchasers whereby, at our discretion, the forward counterparties may borrow from third parties and subsequently sell shares of our common stock.
In connection with the Current ATM program, we may sell shares of our common stock through sales agents or through certain financial institutions acting as forward counterparties whereby, at our discretion, the forward counterparties, or their agents or affiliates, may borrow from third parties and subsequently sell shares of our common stock.
For the year ended December 31, 2024, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through December 31, 2024.
For the year ended December 31, 2025, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through December 31, 2025.
While these factors did not have a significant adverse impact on EastGroup’s operations during 2024, they may adversely impact the Company in the future.
While these factors did not have a significant adverse impact on EastGroup’s operations during 2025, they may adversely impact the Company in the future.
Years Ended December 31, 2024 2023 2022 (In thousands, except per share data) NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
Years Ended December 31, 2025 2024 2023 (In thousands, except per share data) NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC.
The decrease resulted from the change in fair value of the Company’s interest rate swaps (cash flow hedges) which are further discussed in Notes 11 and 12 in the Notes to Consolidated Financial Statements. 27 RESULTS OF OPERATIONS 2024 Compared to 2023 Net Income Attributable to EastGroup Properties, Inc.
The decrease resulted from the change in fair value of the Company’s interest rate swaps (cash flow hedges) which are further discussed in Notes 11 and 12 in the Notes to Consolidated Financial Statements. 26 RESULTS OF OPERATIONS 2025 Compared to 2024 Net Income Attributable to EastGroup Properties, Inc.
The increase is primarily due to the operating properties acquired by the Company in 2023 and 2024 and the properties transferred from Development and value-add properties in 2023 and 2024.
The increase is primarily due to the operating properties acquired by the Company in 2024 and 2025 and the properties transferred from Development and value-add properties in 2024 and 2025.
Same PNOI, excluding income from lease terminations, increased 4.8% for the year ended December 31, 2024, compared to 2023. • 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, 2023 through December 31, 2024).
Same PNOI, excluding income from lease terminations, increased 7.0% for the year ended December 31, 2025, compared to 2024. • Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through December 31, 2025).
The Company entered into an interest rate swap agreement (further described in Note 12 in the Notes to Consolidated Financial Statements) to convert the loan’s Term SOFR rate to an effectively fixed interest rate.
The Company entered into interest rate swap agreements (further described in Note 12 in the Notes to Consolidated Financial Statements) to convert the loan’s SOFR rate to an effectively fixed interest rate.
The capitalized costs incurred on development and value-add projects 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). EastGroup capitalized internal development costs of $8,181,000 during the year ended December 31, 2024, compared to $10,472,000 during 2023.
The capitalized costs incurred on development and value-add projects 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). EastGroup capitalized internal development costs of $7,451,000 during the year ended December 31, 2025, compared to $8,181,000 during 2024.
In the near term, the Company funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed below in Liquidity and Capital Resources ).
The Company typically funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed below in Liquidity and Capital Resources ).
Also, the Company incurred costs of $3,784,000 on development and value-add projects 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.
Also, the Company incurred costs of $7,125,000 on development and value-add projects 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.
Equity Additional paid-in capital increased $723,486,000 during the year ended December 31, 2024 primarily due to the issuance of common stock under the Company’s ATM programs (as discussed in Note 9 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 10 in the Notes to Consolidated Financial Statements).
Equity Additional paid-in capital increased $273,399,000 during the year ended December 31, 2025, primarily due to the issuance of common stock under the Company’s ATM programs (as discussed in Note 9 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 10 in the Notes to Consolidated Financial Statements).
Same property average occupancy for the year ended December 31, 2024 was 96.7% compared to 98.2% for 2023. • 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, 2023 through December 31, 2024).
Same property average occupancy for the year ended December 31, 2025 was 96.5% compared to 96.8% for 2024. • The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through December 31, 2025).
FFO Excluding Gain on Involuntary Conversion and Business Interruption Claims was $8.31 per diluted share for the year ended December 31, 2024 compared to $7.70 per diluted share for 2023, an increase of 7.9%.
FFO, Excluding Gain on Involuntary Conversion and Business Interruption Claims, was $8.95 per diluted share for the year ended December 31, 2025 compared to $8.31 per diluted share for 2024, an increase of 7.7%.
Occupancy at December 31, 2024 was 96.1%. Quarter-end occupancy ranged from 96.5% to 98.2% over the previous four quarters ended December 31, 2023 to September 30, 2024. • Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space.
Occupancy at December 31, 2025 was 96.5%. Quarter-end occupancy ranged from 95.9% to 96.5% over the previous four quarters ended December 31, 2024 to September 30, 2025. • Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space.
This percentage was reduced to 8.2% as of February 11, 2025. The Company generates new sources of leasing revenue through its acquisitions and also its development and value-add program. The Company mitigates risks associated with development through a Board-approved maximum level of land held for development and by adjusting development start dates according to leasing activity.
This percentage was reduced to 12.4% as of February 10, 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.
See Results of Operations for further analysis. • The change in FFO per diluted share represents the increase or decrease in FFO per diluted share from the current year compared to the prior year. For 2024, FFO was $8.35 per diluted share compared with $7.79 per diluted share for 2023, an increase of 7.2%.
See Results of Operations for further analysis. • The change in FFO per diluted share represents the increase or decrease in FFO per diluted share from the current year compared to the prior year. For 2025, FFO was $8.98 per diluted share compared with $8.35 per diluted share for 2024, an increase of 7.5%.
On October 25, 2024, we established an ATM common stock offering program pursuant to which we are able to sell from time to time shares of our common stock having an aggregate gross sales price of up to $1,000,000,000 (the “Current ATM Program”).
On December 5, 2025, we established an ATM common stock offering program pursuant to which we are able to sell from time to time shares of our common stock having an aggregate gross sales price of up to $1,000,000,000 (the “Current ATM Program”).
The same property average rental rate was $8.22 per square foot for the year ended December 31, 2024, compared to $7.76 per square foot for the year ended December 31, 2023. • 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.
The same property average rental rate was $8.81 per square foot for the year ended December 31, 2025, compared to $8.25 per square foot for the year ended December 31, 2024. • Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period.
Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire current and prior year reporting periods – January 1, 2023 through December 31, 2024), increased 4.8% for 2024 compared to 2023. 21 EastGroup’s operating portfolio was 97.1% leased at December 31, 2024 compared to 98.7% at December 31, 2023.
Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire current and prior year reporting periods – January 1, 2024 through December 31, 2025), increased 7.0% for 2025 compared to 2024. 20 EastGroup’s operating portfolio was 97.0% leased at December 31, 2025 compared to 97.1% at December 31, 2024.
See the table below for details. • EastGroup recognized gains on involuntary conversion and business interruption claims of $1,708,000 ($0.03 per diluted share) during 2024, compared to $4,187,000 ($0.09 per diluted share) during 2023.
See the table below for details. • EastGroup recognized gains on involuntary conversion and business interruption claims of $1,763,000 ($0.03 per diluted share) during 2025, compared to $1,708,000 ($0.03 per diluted share) during 2024.
The increase was primarily due to: (i) the acquisition of operating properties; (ii) the transfer of properties from Development and value-add properties to Real estate properties ; (iii) capital improvements at the Company’s properties; (iv) right of use assets for the Company’s ground leases; and (v) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below.
The increase was primarily due to: (i) the transfer of properties from Development and value-add properties to Real estate properties ; (ii) the acquisition of operating properties; (iii) capital improvements at the Company’s properties; and (iv) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below.
Occupancy at the end of 2024 for the operating portfolio was 96.1% compared to 98.2% at December 31, 2023. As of February 11, 2025, the operating portfolio was 96.5% leased and 95.7% occupied. As of December 31, 2024, leases approximating 10.1% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire in 2025.
Occupancy at the end of 2025 for the operating portfolio was 96.5% compared to 96.1% at December 31, 2024. As of February 10, 2026, the operating portfolio was 96.5% leased and 96.1% occupied. As of December 31, 2025, leases approximating 13.1% of the operating portfolio, based on a percentage of annualized base rent, were scheduled to expire in 2026.
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 $1,005,000 during 2024. See Note 7 in the Notes to Consolidated Financial Statements for further details. Other liabilities increased $44,613,000 during 2024.
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 $22,603,000 during 2025. See Note 7 in the Notes to Consolidated Financial Statements for further details. Other liabilities increased $3,971,000 during 2025.
The Company’s percentage of leased square footage for the operating portfolio was 97.1% at December 31, 2024, compared to 98.7% at December 31, 2023.
The Company’s percentage of leased square footage for the operating portfolio was 97.0% at December 31, 2025, compared to 97.1% at December 31, 2024.
The Company’s sales transactions are described in Note 2 of the Notes to Consolidated Financial Statements. • Depreciation and amortization was $189,411,000 ($3.87 per diluted share) for the year ended December 31, 2024, compared to $171,078,000 ($3.77 per diluted share) for the year ended December 31, 2023.
The Company’s sales transactions are described in Note 2 of the Notes to Consolidated Financial Statements. • Depreciation and amortization was $216,732,000 ($4.10 per diluted share) for the year ended December 31, 2025, compared to $189,411,000 ($3.87 per diluted share) for the year ended December 31, 2024.
COMMON STOCKHOLDERS $ 227,751 200,491 186,182 Depreciation and amortization 189,411 171,078 153,638 Company’s share of depreciation from unconsolidated investment 125 124 124 Depreciation and amortization attributable to noncontrolling interest (5) (5) (17) Gain on sales of real estate investments (8,751) (17,965) (40,999) Gain on sales of non-operating real estate (362) (446) — FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS 408,169 353,277 298,928 Gain on involuntary conversion and business interruption claims (1,708) (4,187) — FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS — EXCLUDING GAIN ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION CLAIMS $ 406,461 349,090 298,928 Net income attributable to common stockholders per diluted share $ 4.66 4.42 4.36 FFO attributable to common stockholders per diluted share $ 8.35 7.79 7.00 FFO attributable to common stockholders per diluted share — excluding gain on involuntary conversion and business interruption claims $ 8.31 7.70 7.00 Diluted shares for earnings per share and funds from operations 48,911 45,331 42,712 The Company analyzes the following performance trends in evaluating the revenues and expenses of the Company: • Net Income Attributable to EastGroup Properties, Inc.
COMMON STOCKHOLDERS $ 257,402 227,751 200,491 Depreciation and amortization 216,732 189,411 171,078 Company’s share of depreciation from unconsolidated investment 124 125 124 Depreciation and amortization attributable to noncontrolling interest (5) (5) (5) Gain on sales of real estate investments — (8,751) (17,965) Gain on sales of non-operating real estate — (362) (446) FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS 474,253 408,169 353,277 Gain on involuntary conversion and business interruption claims (1,763) (1,708) (4,187) FFO ATTRIBUTABLE TO COMMON STOCKHOLDERS, EXCLUDING GAIN ON INVOLUNTARY CONVERSION AND BUSINESS INTERRUPTION CLAIMS $ 472,490 406,461 349,090 Net income attributable to common stockholders per diluted share $ 4.87 4.66 4.42 FFO attributable to common stockholders per diluted share $ 8.98 8.35 7.79 FFO attributable to common stockholders per diluted share, excluding gain on involuntary conversion and business interruption claims $ 8.95 8.31 7.70 Diluted shares for earnings per share and funds from operations 52,814 48,911 45,331 The Company analyzes the following performance trends in evaluating the revenues and expenses of the Company: • Net Income Attributable to EastGroup Properties, Inc.
Capitalized leasing costs for the years ended December 31, 2024 and 2023 were as follows: Estimated Useful Life Years Ended December 31, 2024 2023 (In thousands) Development and value-add Lease Term $ 7,117 9,597 New tenants Lease Term 16,478 9,379 Renewal tenants Lease Term 11,318 12,696 Total capitalized leasing costs (1) $ 34,913 31,672 Amortization of leasing costs $ 25,522 22,133 (1) Reconciliation of Total capitalized leasing costs to Leasing commissions on the Consolidated Statements of Cash Flows: Years Ended December 31, 2024 2023 (In thousands) Total capitalized leasing costs $ 34,913 31,672 Change in leasing commissions payables (2,759) 332 Leasing commissions on the Consolidated Statements of Cash Flows $ 32,154 32,004 2023 Compared to 2022 A discussion of changes in the Company’s results of operations between 2023 and 2022 has been omitted from this Form 10-K and can be found in “Part II.
Capitalized leasing costs for the years ended December 31, 2025 and 2024 were as follows: Estimated Useful Life Years Ended December 31, 2025 2024 (In thousands) Development and value-add Lease Term $ 7,967 7,117 New tenants Lease Term 11,962 16,478 Renewal tenants Lease Term 15,656 11,318 Total capitalized leasing costs (1) $ 35,585 34,913 Amortization of leasing costs $ 28,026 25,522 (1) Reconciliation of Total capitalized leasing costs to Leasing commissions on the Consolidated Statements of Cash Flows: Years Ended December 31, 2025 2024 (In thousands) Total capitalized leasing costs $ 35,585 34,913 Change in leasing commissions payables (809) (2,759) Leasing commissions on the Consolidated Statements of Cash Flows $ 34,776 32,154 2024 Compared to 2023 A discussion of changes in the Company’s results of operations between 2024 and 2023 has been omitted from this Form 10-K and can be found in “Part II.
An amount for dividends payable of $74,049,000 was included in Accounts payable and accrued expenses at December 31, 2024, which includes dividends payable on unvested restricted stock of $1,617,000, which are subject to continued service and will be paid upon vesting in future periods.
An amount for dividends payable of $84,725,000 was included in Accounts payable and accrued expenses at December 31, 2025, which includes dividends payable on unvested restricted stock of $2,173,000, which are subject to continued service and will be paid upon vesting in future periods.
The following paragraphs explain these changes in greater detail. Assets Real Estate Properties Real estate properties increased $649,896,000 during the year ended December 31, 2024.
The following paragraphs explain these changes in greater detail. Assets Real estate properties increased $486,344,000 during the year ended December 31, 2025.
Years Ended December 31, 2024 2023 2022 (In thousands) Income from real estate operations $ 638,035 566,179 486,817 Expenses from real estate operations (174,212) (154,030) (133,915) Noncontrolling interest in PNOI of consolidated joint ventures (62) (62) (105) PNOI from 50% owned unconsolidated investment 1,234 1,234 1,234 PROPERTY NET OPERATING INCOME (“PNOI”) $ 464,995 413,321 354,031 Income from real estate operations is comprised of rental income, expense reimbursement pass-through income and other real estate income.
Years Ended December 31, 2025 2024 2023 (In thousands) Income from real estate operations $ 719,417 638,035 566,179 Expenses from real estate operations (192,243) (174,212) (154,030) Noncontrolling interest in PNOI of consolidated joint ventures (62) (62) (62) PNOI from 50% owned unconsolidated investment 1,233 1,234 1,234 PROPERTY NET OPERATING INCOME (“PNOI”) $ 528,345 464,995 413,321 Income from real estate operations is comprised of rental income, expense reimbursement pass-through income and other real estate income.
EastGroup’s variable rate interest expense decreased by $2,653,000 for 2024 as compared to 2023 primarily due to a decrease in average borrowings, partially offset by an increase in the Company’s weighted average variable interest rates on its unsecured bank credit facilities as shown in the following table: Years Ended December 31, 2024 2023 Increase (Decrease) (In thousands, except rates of interest) Average borrowings on unsecured bank credit facilities — variable rate $ 1,776 49,384 (47,608) Weighted average variable interest rates (excluding amortization of facility fees and debt issuance costs) 6.25% 5.68% The Company’s fixed rate interest expense decreased by $2,799,000 for 2024 as compared to 2023 primarily as a result of the unsecured debt activity described below.
EastGroup’s variable rate interest expense increased by $1,174,000 for 2025 as compared to 2024 primarily due to an increase in average borrowings, partially offset by a decrease in the Company’s weighted average variable interest rates on its unsecured bank credit facilities as shown in the following table: Years Ended December 31, 2025 2024 Increase (Decrease) (In thousands, except rates of interest) Average borrowings on unsecured bank credit facilities — Variable rate $ 26,822 1,776 25,046 Weighted average variable interest rates (excluding amortization of facility fees and debt issuance costs) 4.90 % 6.25 % The Company’s fixed rate interest expense decreased by $6,110,000 for 2025 as compared to 2024 primarily as a result of the unsecured debt activity described below.
The Current ATM Program replaced our previous $750,000,000 ATM program (the “Prior ATM Program”), which was established on October 25, 2023, under which we had sold shares of our common stock having an aggregate gross sales price of $746,153,000 through October 25, 2024.
The Current ATM Program replaced our previous $1,000,000,000 ATM program (the “Prior ATM Program”), which was established on October 25, 2024, under which we had sold shares of our common stock having an aggregate gross sales price of $479,899,000 through December 5, 2025.
The decrease was due to variations in timing and volume of development projects starting during the year ended December 31, 2024, as compared to the same period of 2023. There were no value-add acquisitions during the year ended December 31, 2024. Also during 2024, EastGroup purchased 61.1 acres of development land in two markets for $13,762,000.
The decrease was due to variations in timing and volume of development projects starting during the year ended December 31, 2025, as compared to the same period of 2024. There were no value-add acquisitions during the year ended December 31, 2025. Also during 2025, EastGroup purchased 300.4 acres of development land in four markets for $118,584,000.
The following paragraphs provide further details with respect to these changes: • PNOI was $464,995,000 ($9.51 per diluted share) for the year ended December 31, 2024, compared to $413,321,000 ($9.12 per diluted share) for the year ended December 31, 2023.
The following paragraphs provide further details with respect to these changes: • PNOI was $528,345,000 ($10.00 per diluted share) for the year ended December 31, 2025, compared to $464,995,000 ($9.51 per diluted share) for the year ended December 31, 2024.
During the year ended December 31, 2024, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM programs with respect to 2,677,289 shares of common stock with an initial weighted average forward price of $178.32 per share.
During the year ended December 31, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM programs with respect to 1,063,825 shares of common stock with an initial weighted average forward price of $181.89 per share.
Also during the year ended December 31, 2024, the Company settled outstanding forward equity sale agreements that were previously entered into under its ATM programs by issuing 2,698,077 shares of common stock in exchange for net proceeds of approximately $480,663,000.
Also during the year ended December 31, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into under its ATM programs by issuing 1,449,078 shares of common stock in exchange for net proceeds of approximately $258,066,000.
During 2024, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM programs with respect to 2,677,289 shares of common stock with an initial weighted average forward price of $178.32 per share.
During 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM programs with respect to 1,063,825 shares of common stock with an initial weighted average forward price of $181.89 per share.
During the year ended December 31, 2024, EastGroup sold, and subsequently settled the issuance of, 1,373,459 shares of common stock directly through sales agents under its ATM programs at a weighted average price of $174.30 per share, providing aggregate net proceeds to the Company of $236,996,000.
During the year ended December 31, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its ATM programs at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.
FFO increased during the year ended December 31, 2024, as compared to 2023, primarily due to the 24 increase in PNOI and the decrease in interest expense, partially offset by an increase in general and administrative expense. • For the year ended December 31, 2024, PNOI increased by $51,674,000, or 12.5%, compared to 2023.
FFO increased during the year ended December 31, 2025, as compared to 2024, primarily due to the 23 increase in PNOI and the decrease in interest expense, partially offset by an increase in general and administrative expense. • For the year ended December 31, 2025, PNOI increased by $63,350,000, or 13.6%, compared to 2024.
As market conditions permit, EastGroup issues equity and/or employs fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. Moody’s Investors Service has assigned the Company’s issuer rating of Baa2 with a stable outlook.
As market conditions permit, EastGroup issues equity and/or employs fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. In May 2025, Moody’s Ratings affirmed EastGroup's issuer rating of Baa2 and changed its rating outlook from stable to positive.
The decrease in interest expense from unsecured debt was partially offset by new unsecured debt obtained during the year ended December 31, 2023: NEW UNSECURED DEBT IN 2023 Margin Effectively Fixed Interest Rate Date Obtained Maturity Date Amount (In thousands) $100 Million Senior Unsecured Term Loan (1) 1.35% 5.27% 01/13/2023 01/13/2030 $ 100,000 (1) The interest rate on this unsecured term loan is comprised of Term Secured Overnight Financing Rate ( “ SOFR ” ) plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings.
The decrease in interest expense from unsecured debt was partially offset by new unsecured debt obtained during the year ended December 31, 2025: NEW UNSECURED DEBT IN 2025 Margin Effectively Fixed Interest Rate Date Obtained Maturity Date Principal Amount (In thousands) $100 Million Senior Unsecured Term Loan (1) 0.85% 4.11% 11/19/2025 04/30/2030 $ 100,000 $150 Million Senior Unsecured Term Loan (1) 0.85% 4.15% 11/19/2025 03/14/2031 150,000 Weighted Average Interest Rate/Total Principal Amount for 2025 4.13% $ 250,000 (1) The interest rate on this unsecured term loan is comprised of Daily Secured Overnight Financing Rate ( “ SOFR ” ) plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings.
The Company also estimates future minimum ground lease payments of $148,849,000, due within the current lease terms of its ground leases. With the renewal options excluded, expiration dates range from August 2031 to December 2085.
The Company also estimates future minimum ground lease payments of $161,476,000, due in years 2027 and thereafter, based on the current lease terms of its ground leases. With the renewal options excluded, expiration dates range from August 2031 to December 2085.
During 2024, EastGroup sold, and subsequently settled the issuance of, 1,373,459 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering programs at a weighted average price of $174.30 per share, providing aggregate net proceeds to the Company of $236,996,000.
During 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering programs at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.
Net cash provided by operating activities was $416,587,000 for the year ended December 31, 2024. The primary other sources of cash were from proceeds from common stock offerings; borrowings on unsecured bank credit facilities; and net proceeds from sales of real estate investments. The Company distributed $252,794,000 in common stock dividends during 2024.
Net cash provided by operating activities was $480,734,000 for the year ended December 31, 2025. The primary other sources of cash were from borrowings on unsecured bank credit facilities and unsecured debt and proceeds from common stock offerings. The Company distributed $302,507,000 in common stock dividends during 2025.
LIQUIDITY AND CAPITAL RESOURCES The Company anticipates that its current cash balance, operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt and/or proceeds from the issuance of equity instruments will be adequate for (i) operating and administrative expenses, (ii) normal repair and maintenance expenses at its properties, (iii) debt service obligations, (iv) maintaining compliance with its debt covenants, (v) distributions to stockholders, (vi) capital improvements, (vii) purchases of properties, (viii) development, and (ix) any other normal business activities of the Company, both in the short-term and long-term.
Management’s Discussion and Analysis of Financial Condition and Results of Operations” under the heading “2024 Compared to 2023” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2024, filed with the SEC on February 12, 2025. 30 LIQUIDITY AND CAPITAL RESOURCES The Company anticipates that its current cash balance, operating cash flows, borrowings under its unsecured bank credit facilities, proceeds from new debt and/or proceeds from the issuance of equity instruments will be adequate for (i) operating and administrative expenses, (ii) normal repair and maintenance expenses at its properties, (iii) debt service obligations, (iv) maintaining compliance with its debt covenants, (v) distributions to stockholders, (vi) capital improvements, (vii) purchases of properties, (viii) development, and (ix) any other normal business activities of the Company, both in the short-term and long-term.
Common Stockholders for the year ended December 31, 2024 was $227,751,000 ($4.67 per basic and $4.66 per diluted share) compared to $200,491,000 ($4.43 per basic and $4.42 per diluted share) for 2023.
Common Stockholders for the year ended December 31, 2025 was $257,402,000 ($4.88 per basic and $4.87 per diluted share) compared to $227,751,000 ($4.67 per basic and $4.66 per diluted share) for 2024.
Common Stockholders for the year ended December 31, 2024 was $227,751,000 ($4.67 per basic and $4.66 per diluted share) compared to $200,491,000 ($4.43 per basic and $4.42 per diluted share) for the year ended December 31, 2023.
Common Stockholders for the year ended December 31, 2025 was $257,402,000 ($4.88 per basic and $4.87 per diluted share) compared to $227,751,000 ($4.67 per basic and $4.66 per diluted share) for the year ended December 31, 2024.
PNOI increased $20,089,000 from same property operations, $18,354,000 from newly developed and value-add properties and $15,915,000 from 2023 and 2024 acquisitions; PNOI decreased $2,642,000 from operating properties sold in 2023 and 2024. • The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2023 through December 31, 2024).
PNOI increased $29,889,000 from same property operations, $23,178,000 from 2024 and 2025 acquisitions and $11,504,000 from newly developed and value-add properties. • The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through December 31, 2025).
Years Ended December 31, 2024 2023 2022 (In thousands) NET INCOME $ 227,807 200,548 186,274 Gain on sales of real estate investments (8,751) (17,965) (40,999) Gain on sales of non-operating real estate (362) (446) — Interest income (1,334) (879) (100) Other revenue (2,199) (4,412) (208) Indirect leasing costs 785 582 546 Depreciation and amortization 189,411 171,078 153,638 Company’s share of depreciation from unconsolidated investment 125 124 124 Interest expense 38,956 47,996 38,499 General and administrative expense 20,619 16,757 16,362 Noncontrolling interest in PNOI of consolidated joint ventures (62) (62) (105) PROPERTY NET OPERATING INCOME (“PNOI”) 464,995 413,321 354,031 PNOI from 2023 and 2024 acquisitions (19,249) (3,334) * PNOI from 2023 and 2024 development and value-add properties (31,544) (13,190) * PNOI from 2023 and 2024 operating property dispositions (177) (2,819) * Other PNOI 208 166 * SAME PNOI 414,233 394,144 * Lease termination fee income from same properties (2,192) (1,020) * SAME PNOI EXCLUDING INCOME FROM LEASE TERMINATIONS $ 412,041 393,124 * * Same property metrics are not applicable to the year ended December 31, 2022, as the same property metrics for 2024 and 2023 are based on operating properties owned during the entire current and prior year reporting periods (January 1, 2023 through December 31, 2024). 23 PNOI was calculated as follows for the three fiscal years ended December 31, 2024, 2023 and 2022.
Years Ended December 31, 2025 2024 2023 (In thousands) NET INCOME $ 257,458 227,807 200,548 Gain on sales of real estate investments — (8,751) (17,965) Gain on sales of non-operating real estate — (362) (446) Interest income (900) (1,334) (879) Other revenue (1,919) (2,199) (4,412) Indirect leasing costs 839 785 582 Depreciation and amortization 216,732 189,411 171,078 Company’s share of depreciation from unconsolidated investment 124 125 124 Interest expense 32,113 38,956 47,996 General and administrative expense 23,960 20,619 16,757 Noncontrolling interest in PNOI of consolidated joint ventures (62) (62) (62) PROPERTY NET OPERATING INCOME (“PNOI”) 528,345 464,995 413,321 PNOI from 2024 and 2025 acquisitions (31,330) (8,152) * PNOI from 2024 and 2025 development and value-add properties (26,096) (14,592) * PNOI from 2024 and 2025 operating property dispositions (40) (380) * Other PNOI 1,089 208 * SAME PNOI 471,968 442,079 * Lease termination fee income from same properties (1,181) (2,192) * SAME PNOI, EXCLUDING INCOME FROM LEASE TERMINATIONS $ 470,787 439,887 * * Same property metrics are not applicable to the year ended December 31, 2023, as the same property metrics for 2025 and 2024 are based on operating properties owned during the entire current and prior year reporting periods (January 1, 2024 through December 31, 2025). 22 PNOI was calculated as follows for the three fiscal years ended December 31, 2025, 2024 and 2023.
Occupancy at the end of 2024 for the operating portfolio was 96.1% compared to 98.2% at December 31, 2023. 28 Interest Expense decreased $9,040,000 for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Occupancy at the end of 2025 for the operating portfolio was 96.5% compared to 96.1% at December 31, 2024. 27 Interest Expense decreased $6,843,000 for the year ended December 31, 2025 compared to the year ended December 31, 2024.
Development and Value-Add Properties EastGroup’s investment in Development and value-add properties at December 31, 2024 consisted of properties in lease-up and under construction of $424,068,000 and prospective development (primarily land) of $250,404,000. The Company’s total investment in Development and value-add properties at December 31, 2024 was $674,472,000 compared to $639,647,000 at December 31, 2023.
Development and value-add properties at December 31, 2025 consisted of properties in lease-up and under construction of $338,583,000 and prospective development (primarily land) of $371,617,000. The Company’s total investment in Development and value-add properties at December 31, 2025 was $710,200,000 compared to $674,472,000 at December 31, 2024.
These increases are partially offset by operating properties sold in 2023 and 2024. • Interest expense recognized was $38,956,000 ($0.80 per diluted share) during 2024, compared to $47,996,000 ($1.06 per diluted share) during 2023.
These increases are partially offset by operating properties sold in 2024 and 2025. • Interest expense recognized was $32,113,000 ($0.61 per diluted share) during 2025, compared to $38,956,000 ($0.80 per diluted share) during 2024, which was a decrease of $0.19 per share.
OVERVIEW EastGroup’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location-sensitive customers (primarily in the 20,000 to 100,000 square foot range).
OVERVIEW EastGroup’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location-sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply-constrained submarkets in high-growth regions.
Gains on involuntary conversion and business interruption claims are included in Other revenue on the Consolidated Statements of Income and Comprehensive Income. • Weighted average shares outstanding increased by 3,580,000, on a diluted basis, during 2024 compared to 2023.
Gains on involuntary conversion and business interruption claims are included in Other revenue on the Consolidated Statements of Income and Comprehensive Income. • Weighted average shares outstanding increased by 3,903,000, on a diluted basis, during 2025 compared to 2024. The increase is primarily due to issuance of shares through common stock offerings, as discussed in Liquidity and Capital Resources .
The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swap, as of December 31, 2024. During 2024, EastGroup did not enter into or refinance any unsecured debt agreements. EastGroup's financing and debt maturities are further described in Liquidity and Capital Resources .
The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swaps, as of December 31, 2025. EastGroup's financing and debt maturities are further described in Liquidity and Capital Resources .
The internal costs are allocated to specific development projects based on development activity. RECENT ACCOUNTING PRONOUNCEMENTS See Note 1(p) in the Notes to Consolidated Financial Statements.
Included in these costs are management’s estimates for the portions of internal costs (primarily personnel costs) deemed related to such development activities. The internal costs are allocated to specific development projects based on development activity. RECENT ACCOUNTING PRONOUNCEMENTS See Note 1(p) in the Notes to Consolidated Financial Statements.
Real Estate Improvements Real estate improvements for EastGroup’s operating properties for the years ended December 31, 2024 and 2023 were as follows: Estimated Useful Life Years Ended December 31, 2024 2023 (In thousands) Upgrade on acquisitions 40 years $ 1,435 1,892 Tenant improvements: New tenants Lease Term 18,540 16,352 Renewal tenants Lease Term 2,964 3,503 Other: Building improvements 5 - 40 years 13,006 8,085 Roofs 5 - 15 years 12,940 17,386 Parking lots 3 - 5 years 4,763 4,824 Other 5 years 4,480 1,508 Total real estate improvements (1) $ 58,128 53,550 (1) Reconciliation of Total real estate improvements to Real estate improvements on the Consolidated Statements of Cash Flows: Years Ended December 31, 2024 2023 (In thousands) Total real estate improvements $ 58,128 53,550 Change in real estate property payables (719) (527) Change in construction in progress 1,879 (1,907) Real estate improvements on the Consolidated Statements of Cash Flows $ 59,288 51,116 30 Capitalized Leasing Costs The Company’s leasing costs (principally commissions) are capitalized and included in Other assets .
Capitalized interest increased by $1,907,000 for 2025 as compared to 2024, due to changes in development activity and spending. 29 Real Estate Improvements Real estate improvements for EastGroup’s operating properties for the years ended December 31, 2025 and 2024 were as follows: Estimated Useful Life Years Ended December 31, 2025 2024 (In thousands) Upgrade on acquisitions 40 years $ 90 1,435 Tenant improvements: New tenants Lease Term 23,937 18,540 Renewal tenants Lease Term 4,454 2,964 Building improvements 5 - 40 years 16,703 13,006 Roofs 5 - 15 years 22,176 12,940 Parking lots 3 - 5 years 3,593 4,763 Other 5 years 4,700 4,480 Total real estate improvements (1) $ 75,653 58,128 (1) Reconciliation of Total real estate improvements to Real estate improvements on the Consolidated Statements of Cash Flows: Years Ended December 31, 2025 2024 (In thousands) Total real estate improvements $ 75,653 58,128 Change in real estate property payables (779) (719) Change in construction in progress 956 1,879 Real estate improvements on the Consolidated Statements of Cash Flows $ 75,830 59,288 Capitalized Leasing Costs The Company’s leasing costs (principally third party commissions) are capitalized and included in Other assets, net .
During the year ended December 31, 2024, Distributions in excess of earnings increased $36,699,000 as a result of dividends on common stock of $264,450,000 exceeding Net Income Attributable to EastGroup Properties, Inc. Common Stockholders of $227,751,000. Accumulated other comprehensive income decreased $2,935,000 during 2024.
Distributions in excess of earnings increased $55,781,000 during the year ended December 31, 2025, as a result of dividends on common stock of $313,183,000 exceeding Net Income Attributable to EastGroup Properties, Inc. Common Stockholders of $257,402,000. Accumulated other comprehensive income decreased $13,596,000 during 2025.
The following table presents the details of unsecured debt repayments during 2023 and 2024: UNSECURED DEBT REPAID IN 2023 AND 2024 Interest Rate Date Repaid Payoff Amount (In thousands) $65 Million Senior Unsecured Term Loan 2.31% 03/31/2023 $ 65,000 $50 Million Senior Unsecured Notes 3.80% 08/28/2023 50,000 $50 Million Senior Unsecured Term Loan 4.08% 08/30/2024 50,000 $60 Million Senior Unsecured Notes 3.46% 12/13/2024 60,000 $60 Million Senior Unsecured Notes 3.48% 12/15/2024 60,000 Weighted Average Effectively Fixed Interest Rate and Total Payoff Amount for 2023 and 2024 3.37% $ 285,000 29 In September 2023, the Company refinanced a $100,000,000 senior unsecured term loan, reducing the effectively fixed interest rate by approximately 45 basis points.
The following table presents the details of unsecured debt repayments during 2024 and 2025: UNSECURED DEBT REPAID IN 2024 AND 2025 Interest Rate Date Repaid Principal Amount (In thousands) $50 Million Senior Unsecured Term Loan 4.08% 08/30/2024 $ 50,000 $60 Million Senior Unsecured Notes 3.46% 12/13/2024 60,000 $60 Million Senior Unsecured Notes 3.48% 12/15/2024 60,000 $50 Million Senior Unsecured Term Loan 1.58% 03/18/2025 50,000 $20 Million Senior Unsecured Notes 3.80% 08/28/2025 20,000 $25 Million Senior Unsecured Notes 3.97% 10/01/2025 25,000 $50 Million Senior Unsecured Notes 3.99% 10/07/2025 50,000 Weighted Average Effectively Fixed Interest Rate and Total Principal Amount for 2024 and 2025 3.41% $ 315,000 28 In January 2025, the Company refinanced a $100,000,000 senior unsecured term loan, reducing the credit spread by 30 basis points to a total effectively fixed interest rate of 4.97%.
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 December 31, 2024, are as follows: MATURITY DATES Weighted Average Interest Rate (1) Principal Payments Maturing (In thousands) March 18, 2025 1.58% $ 50,000 August 28, 2025 3.80% 20,000 October 1, 2025 3.97% 25,000 October 7, 2025 3.99% 50,000 Year 2026 2.56% 140,000 Year 2027 2.74% 175,000 Year 2028 3.10% 160,000 Year 2029 3.88% 155,000 Year 2030 and beyond 3.61% 735,000 Total Unsecured Debt 3.34% $ 1,510,000 (1) These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps.
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 December 31, 2025, are as follows: MATURITY DATES Weighted Average Interest Rate (1) Principal Payments Maturing (In thousands) October 10, 2026 1.98% $ 100,000 December 15, 2026 3.75% 40,000 Year 2027 2.64% 175,000 Year 2028 3.04% 160,000 Year 2029 3.88% 155,000 Year 2030 3.86% 300,000 Year 2031 and beyond 3.63% 685,000 Total Unsecured Debt 3.43% $ 1,615,000 (1) These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps.
Also in 2024, the Company transferred seven development and value-add projects (1,519,000 square feet) in six markets from its development and value-add program to real estate properties, with costs of $199,971,000 at the date of transfer. As of December 31, 2024, EastGroup’s development and value-add program consisted of 21 projects (4,143,000 square feet) located in 14 markets.
Also in 2025, the Company transferred 11 development and value-add projects (2,109,000 square feet) in seven markets from its development and value-add program to real estate properties, with costs of $279,082,000 at the date of transfer. As of December 31, 2025, EastGroup’s development and value-add program consisted of 17 projects (3,473,000 square feet) located in 12 markets.
These intangible assets are included in Other assets on the Consolidated Balance Sheets and are amortized over the remaining term of the existing lease. The significance of this accounting policy will fluctuate given the transaction activity during the period.
These intangible assets are included in Other assets, net on the Consolidated Balance Sheets and are amortized over the remaining term of the existing lease.
Total capital invested for development and value-add properties during 2024 was $245,033,000, which primarily consisted of improvement costs of $227,487,000 on development and value-add properties, $13,762,000 for new land investments, and costs of $3,784,000 on properties subsequent to transfer to Real estate propertie s.
Total capital invested for development and value-add properties during 2025 was $321,934,000, which primarily consisted of improvement costs of $196,225,000 on development and value-add properties, $118,584,000 for new land investments, and costs of $7,125,000 on properties subsequent to transfer to Real estate propertie s.
During 2024, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about supply chain or trade disruptions, particularly between the United States, Mexico and Canada and geopolitical conflict.
The Company’s core markets are in the states of Texas, Florida, California, Arizona and North Carolina. During 2025, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions and geopolitical conflict.
The projected total cost for the development and value-add projects, which were collectively 22.5% leased as of February 11, 2025, is $608,700,000, of which $184,632,000 remained to be invested as of December 31, 2024. During the year ended December 31, 2024, EastGroup acquired 2,474,000 square feet of operating properties in six markets for a total of $390,011,000.
The projected total cost for the development and value-add projects, which were collectively 18.8% leased as of February 10, 2026, is $499,900,000, of which $161,317,000 remained to be invested as of December 31, 2025. During the year ended December 31, 2025, EastGroup acquired 739,000 square feet of operating properties in three markets for a total of $143,099,000.
The following table presents the components of Interest Expense for 2024 and 2023: Years Ended December 31, VARIABLE RATE INTEREST EXPENSE 2024 2023 Increase (Decrease) (In thousands) Unsecured bank credit facilities interest — variable rate (excluding amortization of facility fees and debt issuance costs) $ 111 2,804 (2,693) Amortization of facility fees — unsecured bank credit facilities 1,012 1,005 7 Amortization of debt issuance costs — unsecured bank credit facilities 1,036 1,003 33 Total variable rate interest expense 2,159 4,812 (2,653) FIXED RATE INTEREST EXPENSE Unsecured debt interest (excluding amortization of debt issuance costs) (1) 55,742 58,428 (2,686) Secured debt interest (excluding amortization of debt issuance costs) — 51 (51) Amortization of debt issuance costs — unsecured debt 878 909 (31) Amortization of debt issuance costs — secured debt — 31 (31) Total fixed rate interest expense 56,620 59,419 (2,799) Total interest 58,779 64,231 (5,452) Less capitalized interest (19,823) (16,235) (3,588) TOTAL INTEREST EXPENSE $ 38,956 47,996 (9,040) (1) Includes interest on the Company’s unsecured debt with fixed interest rates per the debt agreements or effectively fixed interest rates due to interest rate swaps, as discussed in Note 12 in the Notes to Consolidated Financial Statements.
The following table presents the components of Interest Expense for 2025 and 2024: Years Ended December 31, 2025 2024 Increase (Decrease) (In thousands) VARIABLE RATE INTEREST EXPENSE Unsecured bank credit facilities interest — Variable rate (excluding amortization of facility fees and debt issuance costs) $ 1,315 111 1,204 Amortization of facility fees — Unsecured bank credit facilities 960 1,012 (52) Amortization of debt issuance costs — Unsecured bank credit facilities 1,058 1,036 22 Total variable rate interest expense 3,333 2,159 1,174 FIXED RATE INTEREST EXPENSE Unsecured debt interest (excluding amortization of debt issuance costs) (1) 49,703 55,742 (6,039) Amortization of debt issuance costs — Unsecured debt 807 878 (71) Total fixed rate interest expense 50,510 56,620 (6,110) Total interest 53,843 58,779 (4,936) Less capitalized interest (21,730) (19,823) (1,907) TOTAL INTEREST EXPENSE $ 32,113 38,956 (6,843) (1) Includes interest on the Company’s unsecured debt with fixed interest rates per the debt agreements or effectively fixed interest rates due to interest rate swaps, as discussed in Note 12 in the Notes to Consolidated Financial Statements.
The Company also paid $390,011,000 related to the purchase of real estate property. Other primary uses of cash were for the 31 construction and development of properties; repayments on unsecured bank credit facilities and unsecured debt; capital improvements at various properties; and leasing commissions.
Other primary uses of cash were repayments on unsecured bank credit facilities and unsecured debt; the construction and development of properties; purchases of real estate properties; capital improvements at various properties; and leasing commissions. As of December 31, 2025, the Company was contractually obligated to pay the dividend declared in December 2025, which was paid in January 2026.
For future debt issuances, the Company intends to issue primarily unsecured fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps. The Company may also access the public debt market in the future as a means to raise capital.
The Company also believes it can obtain debt financing and issue common and/or preferred equity. 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.
Rental rate increases on new and renewal leases (15.9% of total square footage) averaged 53.0% for the year ended December 31, 2024. FINANCIAL CONDITION EastGroup’s Total Assets were $5,077,476,000 at December 31, 2024, an increase of $558,263,000 from December 31, 2023. Total Liabilities decreased $125,647,000 to $1,784,932,000, and Total Equity increased $683,910,000 to $3,292,544,000 during the same period.
Rental rate increases on new and renewal leases (15.1% of total square footage) averaged 40.1% for the year ended December 31, 2025. FINANCIAL CONDITION EastGroup’s Total Assets were $5,431,807,000 at December 31, 2025, an increase of $354,331,000 from December 31, 2024. Total Liabilities increased $150,287,000 to $1,935,219,000, and Total Equity increased $204,044,000 to $3,496,588,000 during the same period.
During the year ended December 31, 2024, EastGroup purchased 61.1 acres of land in two markets for a total of $13,762,000. The Company began construction of 10 development projects containing 1,585,000 square feet in seven markets.
During the year ended December 31, 2025, EastGroup purchased 300.4 acres of land in four markets for a total of $118,584,000. The Company began construction of a redevelopment project and six development projects containing 1,439,000 square feet in five markets.
The Company expects liquidity sources and needs in future years to be consistent in nature with those for the year ended December 31, 2024. 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.
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. The Company believes its current operating cash flow and unsecured bank credit facilities provide the capacity to fund the operations of the Company.
For properties included in Development and value-add properties , costs associated with development (i.e., land, construction costs, interest expense, property taxes and other costs associated with development) are aggregated into the total capitalized costs of the property. Included in these costs are management’s estimates for the portions of internal costs (primarily personnel 34 costs) deemed related to such development activities.
The significance of this accounting policy will fluctuate given the transaction activity during the period. 33 For properties included in Development and value-add properties , costs associated with development (i.e., land, construction costs, interest expense, property taxes and other costs associated with development) are aggregated into the total capitalized costs of the property.
The Company recognized $8,751,000 in Gain on sales of real estate investments and $362,000 in gains on sales of non-operating real estate (included in Other on the Consolidated Statements of Income and Comprehensive Income) during the year ended December 31, 2024.
During the year ended December 31, 2024, EastGroup recognized $8,751,000 ($0.18 per diluted share) in Gains on sales of real estate investments .

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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In the event inflation causes increases in the Company’s general and administrative expenses or the level of interest rates, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. EastGroup’s financial results are affected by general economic conditions in the markets in which the Company’s properties are located.
In the event inflation causes increases in the Company’s general and administrative expenses or the level of interest rates, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. 34 EastGroup’s financial results are affected by general economic conditions in the markets in which the Company’s properties are located.
It may also impact the Company’s ability to (i) renew leases or re-lease space as 35 leases expire, or (ii) lease development space. In addition, an economic downturn or recession, could also lead to an increase in overall vacancy rates or a decline in rents the Company can charge to re-lease properties upon expiration of current leases.
It may also impact the Company’s ability to (i) renew leases or re-lease space as leases expire, or (ii) lease development space. In addition, an economic downturn or recession, could also lead to an increase in overall vacancy rates or a decline in rents the Company can charge to re-lease properties upon expiration of current leases.
(3) Represents the weighted average interest rate for the Company’s variable rate unsecured bank credit facilities as of December 31, 2024.
(3) Represents the weighted average interest rate for the Company’s variable rate unsecured bank credit facilities as of December 31, 2025.
As the table above incorporates only those exposures that existed as of December 31, 2024, it does not consider those exposures or positions that could arise after that date.
As the preceding table incorporates only those exposures that existed as of December 31, 2025, it does not consider those exposures or positions that could arise after that date.
Assuming there was a $100,000,000 balance on the unsecured bank credit facilities, and if interest rates changed by 10%, or approximately 53 basis points, interest expense and cash flows would increase or decrease by approximately $528,000 annually. This does not include variable rate debt that has been effectively fixed through the use of interest rate swaps.
If the weighted average interest rate on the variable rate unsecured bank credit facilities, as shown above, changes by 10% or approximately 46 basis points, interest expense and cash flows would increase or decrease by approximately $86,000 annually. This does not include variable rate debt that has been effectively fixed through the use of interest rate swaps.
The table below presents the principal payments due and weighted average interest rates, which include the impact of interest rate swaps, for both the fixed rate and variable rate debt as of December 31, 2024. 2025 2026 2027 2028 2029 Thereafter Total Fair Value Unsecured bank credit facilities — variable rate (in thousands) $ — — — — (1) — — — — (2) Weighted average interest rate — — — 5.28% (3) — — 5.28% Unsecured debt — fixed rate (in thousands) $ 145,000 140,000 175,000 160,000 155,000 735,000 1,510,000 1,403,754 (4) Weighted average interest rate 3.13% 2.56% 2.74% 3.10% 3.88% 3.61% 3.34% (1) The variable rate unsecured bank credit facilities mature in July 2028, and as of December 31, 2024, the Company had no borrowings on both the $625,000,000 unsecured bank credit facility and the $50,000,000 unsecured bank credit facility.
The table below presents the principal payments due and weighted average interest rates, which include the impact of interest rate swaps, for both the fixed rate and variable rate debt as of December 31, 2025. 2026 2027 2028 2029 2030 Thereafter Total Fair Value Unsecured bank credit facilities — Variable rate (in thousands) $ — — 18,845 (1) — — — 18,845 18,883 (2) Weighted average interest rate — — 4.55 % (3) — — — 4.55 % Unsecured debt — Fixed rate (in thousands) $ 140,000 175,000 160,000 155,000 300,000 685,000 1,615,000 1,548,414 (4) Weighted average interest rate 2.49% 2.64% 3.04% 3.88% 3.86% 3.63% 3.43% (1) The variable rate unsecured bank credit facilities mature in July 2028, and as of December 31, 2025, the $625,000,000 unsecured bank credit facility had no outstanding balance, and the $50,000,000 unsecured bank credit facility had a balance of $18,845,000.

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