EGP 10-K & 10-Q changes, risk factors and insider trading

•complications (including building moratoriums and anti-growth legislation) in obtaining necessary zoning, occupancy and other governmental permits.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.

•when we are able to locate a desired property, competition from other real estate investors may significantly increase the purchase price;

Coverage under our existing insurance policies may be inadequate to cover losses, or we may not be able to obtain adequate insurance atfor certain properties in the future. We generally maintain insurance policies related to our business, including casualty, general liability and other policies, covering our business operations, employees and assets as appropriate for the markets where our properties and business operations are located. However, we would be required to bear all losses that are not adequately covered by insurance. In addition, there may be certain losses that are not generally insured against or that are not generally fully insured against because it is not deemed economically feasible or prudent to do so, or insurance coverage may not be available, including losses due to fire, floods, wind, earthquakes, acts of war, acts of terrorism or riots. 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. In addition, if the damaged properties are subject to recourse indebtedness, we would continue to be liable for the indebtedness, even if these properties were irreparably damaged.

We face risks due to lack of geographic and real estate sector diversity. Substantially all of our properties are located in thehigh-growth Sunbelt regionregions of the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. As of December 31, 2024,2025, our largest markets were Houston and Dallas. We owned operating properties totaling 7,108,000 square feet in Houston and 6,108,0006,428,000 square feet in Dallas, which represent 10.0%9.5% and 10.8%,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). A downturn in general economic conditions and local real estate conditions in these geographic regions, as a result of oversupply of or reduced demand for industrial properties, local business climate, business layoffs and changing demographics, would have a particularly strong adverse effect on us. In addition, our investments in real estate assets are concentrated in the industrial distribution sector. 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.

Climate change and its effects, including compliance with new laws or regulations such as “green” building codes, may require us to make improvements to our existing properties or result in unanticipated losses that could affect our business and financial condition. 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. To the extent that climate change causes an increase in catastrophic weather events, such as severe storms, fires or floods, our properties may be susceptible to an increase in weather-related damage. Even in the absence of direct physical damage to our properties, the occurrence of any natural disasters or a changing climate in the area of any of our properties could have a material adverse effect on business, supply chains and the economy generally. Climate change could cause an increase in property and casualty insurance premiums or negatively impact our ability to obtain insurance. The potential impacts of future climate change on our properties could adversely affect our ability to lease, develop or sell our properties or to borrow using our properties as collateral. 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. The resulting costs of any proposed legislation may adversely affect our or our tenants' financial position, results of operations and cash flows.

Increases in interest rates would increase our interest expense. At December 31, 2024,2025, we had no$18,845,000 variable rate debt outstanding not protected by interest rate hedge contracts. We may incur variable rate debt in the future. If interest rates increase, then so would the interest expense on our unhedged variable rate debt, which would adversely affect our financial condition and results of operations. From time to time, we manage our exposure to interest rate risk with interest rate hedge contracts that effectively fix or cap a portion of our variable rate debt. In addition, we refinance fixed rate debt at times when we believe rates and terms are appropriate. Our efforts to manage these exposures may not be successful. Our use of interest rate hedge contracts to manage risk associated with interest rate volatility may expose us to additional risks, including a risk that a counterparty to a hedge contract may fail to honor its obligations. Developing an effective interest rate risk strategy is complex and no strategy can completely insulate us from risks associated with interest rate fluctuations. There can be no assurance that our hedging activities will have the desired beneficial impact on our results of operations or financial condition. Termination of interest rate hedge contracts typically involves costs, such as transaction fees or breakage costs.

The number of shares of our common stock available for future sale and future offerings of debt or equity securities may be dilutive to existing stockholders and adversely affect the market price of our common stock. Our ability to execute our business strategy depends on our access to an appropriate blend of equity and debt financing, including common and preferred stock, lines of credit and other forms of secured and unsecured debt. 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 Programat-the-market (as“ATM”) defined in Liquidity and Capital Resources in Part II, Item 7 of this Annual Report on Form 10-K).program. Sales of a substantial number of shares of our common stock (or the perception that such sales might occur), the issuance of common stock in connection with acquisitions and other equity issuances may dilute the holdings of our existing stockholders or reduce the market prices of our securities, or both. Holders of our common stock are not entitled to preemptive rights or other protections against dilution. Because our decision to issue securities in any future offering will depend on market conditions and other factors beyond our control, we cannot predict or estimate the amount, timing or nature of our future offerings. Thus, our stockholders bear the risk of future offerings reducing the market prices of our securities and diluting their proportionate ownership.

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. Inflation and its related impacts, including increased prices for services and goods and higher interest rates and wages, and any fiscal or other policy interventions by the U.S. government in reaction to such events, could negatively impact our tenants’ businesses or our results of operations. 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. Most of our leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, although a limited number of tenants have capped the amount of these operating expenses they are responsible for under their lease. 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. 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. 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.inflation.

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. 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. Although the Company has an obligation to complete development projects currently under construction, the Company does not have any obligation to start new development projects in the future. EastGroup evaluates new development projects on a case-by-case basis includingand considering many factorsfactors, such asincluding 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.

The state of the economy, geopolitical conflict or adverse changes in general or local economic conditions may adversely affect our operating results and financial condition. 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. 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. However, our ability to access the capital markets may be restricted at a time when we would like, or need, to raise financing, which could have an impact on our flexibility to react to changing economic and business conditions. Furthermore, deterioratingchanges economicin industry conditions including business layoffs, downsizing, industry slowdownsslowdowns, trade policy uncertainty, nearshoring, reshoring, logistics automation and other similar factors that affect our customerscustomers, 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, an adverse economic situation could have an impact on our lenders or customers, causing them to fail to meet their obligations to us. No assurances can be given that the effects of an adverse economic situation will not have a material adverse effect on our business, financial condition and results of operations.

We rely on information technology in our operations, and any material failure, inadequacy, interruption or cyber-attack of that technology could harm our business. We rely on information technology networks and systems, including the internet and third-party cloud-based service providers, to process, transmit and store electronic information, and to manage or support a variety of business processes, including financial transactions and records, and to maintain personal identifying information and customer and lease data. 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. 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). Although we have taken steps to protect the security of our information systems and the data maintained in those systems, it is possible that our safety and security measures will not prevent the systems’ improper functioning or damage, or the improper access or disclosure of our business operations or personally identifiable information such as in the event of cybersecurity incidents. Security breaches, including physical or electronic break-ins, computer viruses, phishing or spoofing attacks by hackers and similar breaches, can create system disruptions, shutdowns, misappropriation of assets or unauthorized disclosure of confidential information. In some cases, it may be difficult to anticipate or immediately detect such incidents and the damage they cause. 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. Techniques used to obtain unauthorized access to, disable or sabotage information technology systems are increasingly diverse and sophisticated, including as a result of emerging technologies, such as artificial intelligence and machine learning. Any failure to maintain proper function, security and availability of our information systems could interrupt our operations, damage our reputation, subject us to liability claims or regulatory penalties and could have a materially adverse effect on our business, financial condition and results of operations. Additionally, any cybersecurity incident may be costly, notwithstanding any cyber liability insurance we may carry. See “Item 1C. Cybersecurity” for further discussion.

EastGroup’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location-sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply-constrained submarkets in major Sunbelthigh-growth regions. The Company’s core markets are in the states of Texas, Florida, California, Arizona and North Carolina.

During 2024,2025, 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, particularly between the United States, Mexico and Canadadisruptions and geopolitical conflict. While these factors did not have a significant adverse impact on EastGroup’s operations during 2024,2025, they may adversely impact the Company in the future. Most of the Company’s leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, thereby reducing the Company’s exposure to increases in operating expenses resulting from inflation or other factors. Additionally, most of the Company’s leases include scheduled rent increases. In the event inflation causes increases in the Company’s general and administrative expenses, or higher interest rates increase the Company’s cost of doing business, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. The Company continues to monitor inflation and interest rates, as well as the uncertainty resulting from the overall regulatory and economic environment.

During 2024,2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM programs with respect to 2,677,2891,063,825 shares of common stock with an initial weighted average forward price of $178.32$181.89 per share. The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time it entered into forward equity sale agreements. Also during 2024,2025, the Company settled outstanding forward equity sale agreements that were previously entered into under its ATM programs by issuing 2,698,0771,449,078 shares of common stock in exchange for net proceeds of approximately $480,663,000.$258,066,000.

Additionally,During on2025, JuneEastGroup 13,also 2024,closed the$250,000,000 Company amended itsof unsecured bankdebt creditwith facilitiesa toweighted extendaverage theeffectively maturityfixed dateinterest byrate threeof years to July 31, 2028.4.13%. EastGroup’s financing and equity issuances are further described in Liquidity and Capital Resources.

EastGroup’s operating portfolio was 97.1%97.0% leased at December 31, 20242025 compared to 98.7%97.1% at December 31, 2023.2024. Occupancy at the end of 20242025 for the operating portfolio was 96.1%96.5% compared to 98.2%96.1% at December 31, 2023.2024. As of February 11,10, 2025,2026, the operating portfolio was 96.5% leased and 95.7%96.1% occupied. As of December 31, 2024,2025, leases approximating 10.1%13.1% of the operating portfolio, based on a percentage of annualized basedbase rent, were scheduled to expire in 2025.2026. This percentage was reduced to 8.2%12.4% as of February 11,10, 2025.2026.

During the year ended December 31, 2024,2025, EastGroup purchased 61.1300.4 acres of land in twofour markets for a total of $13,762,000.$118,584,000. The Company began construction of 10a redevelopment project and six development projects containing 1,585,0001,439,000 square feet in sevenfive markets. Also in 2024,2025, the Company transferred seven11 development and value-add projects (1,519,0002,109,000 square feet) in sixseven markets from its development and value-add program to real estate properties, with costs of $199,971,000$279,082,000 at the date of transfer. As of December 31, 2024,2025, EastGroup’s development and value-add program consisted of 2117 projects (4,143,0003,473,000 square feet) located in 1412 markets. The projected total cost for the development and value-add projects, which were collectively 22.5%18.8% leased as of February 11,10, 2025,2026, is $608,700,000,$499,900,000, of which $184,632,000$161,317,000 remained to be invested as of December 31, 2024.2025.

During the year ended December 31, 2024,2025, EastGroup acquired 2,474,000739,000 square feet of operating properties in sixthree markets for a total of $390,011,000.$143,099,000. There were no value-add property acquisitions during the period.

In the near term, theThe Company typically funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed below in Liquidity and Capital Resources). As market conditions permit, EastGroup issues equity and/or employs fixed rate debt, including variable rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. In May 2025, Moody’s InvestorsRatings Serviceaffirmed has assigned the Company’sEastGroup's issuer rating of Baa2 withand achanged its rating outlook from stable outlook.to positive. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. 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 marketor convertible bond markets in the future as a means to raise capital.

•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 2024,2025, FFO was $8.35$8.98 per diluted share compared with $7.79$8.35 per diluted share for 2023,2024, an increase of 7.2%.7.5%. FFOFFO, Excluding Gain on Involuntary Conversion and Business Interruption ClaimsClaims, was $8.31$8.95 per diluted share for the year ended December 31, 20242025 compared to $7.70$8.31 per diluted share for 2023,2024, an increase of 7.9%.7.7%. FFO increased during the year ended December 31, 2024,2025, as compared to 2023,2024, primarily due to the 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, 2024,2025, PNOI increased by $51,674,000,$63,350,000, or 12.5%,13.6%, compared to 2023.2024. PNOI increased $20,089,000$29,889,000 from same property operations, $18,354,000$23,178,000 from 2024 and 2025 acquisitions and $11,504,000 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.properties.

EastGroup’s Total Assets were $5,077,476,000$5,431,807,000 at December 31, 2024,2025, an increase of $558,263,000$354,331,000 from December 31, 2023.2024. Total Liabilities decreasedincreased $125,647,000$150,287,000 to $1,784,932,000,$1,935,219,000, and Total Equity increased $683,910,000$204,044,000 to $3,292,544,000$3,496,588,000 during the same period. The following paragraphs explain these changes in greater detail.

Real estate properties increased $649,896,000$486,344,000 during the year ended December 31, 2024.2025. The increase was primarily due to: (i) the acquisition of operating properties; (ii) the transfer of properties from Development and value-add properties to Real estate properties; (ii) the acquisition of operating properties; (iii) capital improvements at the Company’s properties; (iv) right of use assets for the Company’s ground leases; and (viv) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below. These increases were partially offset by the sale of an operating properties.property.

Also, duringDuring the year ended December 31, 2024,2025, EastGroup sold a group12,000 ofsquare foot operating propertiesproperty in theSan Jackson, Mississippi market containing 159,000 square feet,Francisco, generating gross sales proceeds of $14,050,000.$3,573,000. The Company recognizeddid $8,751,000not inrecognize Gaina gain or loss on salesthis of real estate investments during the year ended December 31, 2024.disposition.

EastGroup’s investment in Development and value-add properties at December 31, 20242025 consisted of properties in lease-up and under construction of $424,068,000$338,583,000 and prospective development (primarily land) of $250,404,000.$371,617,000. The Company’s total investment in Development and value-add properties at December 31, 20242025 was $674,472,000$710,200,000 compared to $639,647,000$674,472,000 at December 31, 2023.2024. Total capital invested for development and value-add properties during 20242025 was $245,033,000,$321,934,000, which primarily consisted of improvement costs of $227,487,000$196,225,000 on development and value-add properties, $13,762,000$118,584,000 for new land investments, and costs of $3,784,000$7,125,000 on properties subsequent to transfer to Real estate properties. 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).

Also during 2024,2025, EastGroup purchased 61.1300.4 acres of development land in twofour markets for $13,762,000.$118,584,000. Costs associated with these acquisitions are included below in the Development and Value-Add Properties table. These increases were offset by the transfer of seven11 development and value-add projects to Real estate properties with a total investment of $199,971,000$279,082,000 as of the date of transfer.

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

Accumulated depreciation on real estate, development and value-add properties increased $141,853,000$167,956,000 during 20242025 due primarily to depreciation expense of $155,240,000, which increased due to operating properties acquired in 2023$176,180,000 and 2024 and properties transferred to Real estate properties. This increase was partially offset by the salewrite-offs of operatingfully properties.depreciated assets.

OtherCash assetsand increasedcash $38,220,000equivalents decreased $16,522,000 during 2024.2025. SeeRefer Note 4 into the Notes to Consolidated FinancialStatements Statementsof Cash Flows and Liquidity and Capital Resources for further details.

Unsecured bank credit facilities, net of debt issuance costs decreasedincreased $2,075,000$19,844,000 during the year ended December 31, 2024,2025, mainly due to borrowings of $340,344,000, partially offset by repayments of $64,968,000$321,499,000 and new debt issuance costscost incurredactivity during the year, offset by borrowings of $64,968,000 and the amortization of debt issuance costs during the year.period. The Company’s credit facilities are described in greater detail in Liquidity and Capital Resources.

Unsecured debt, net of debt issuance costs decreasedincreased $169,190,000$103,869,000 during the year ended December 31, 2024,2025, primarily due to theclosing repayment$250,000,000 of aunsecured $50,000,000debt, termpartially loanoffset inby Augustrepayments of $145,000,000 of unsecured debt and $120,000,000debt inissuance principalcosts repaymentsactivity onduring the Company's senior unsecured notes in December.period. The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources.

During the year ended December 31, 2024, Distributions in excess of earnings increased $36,699,000$55,781,000 during the year ended December 31, 2025, as a result of dividends on common stock of $264,450,000$313,183,000 exceeding Net Income Attributable to EastGroup Properties, Inc. Common Stockholders of $227,751,000.$257,402,000.

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

EastGroup’s goalEastGroup is toa maximizeself-administered equity real estate investment trust (“REIT”) focused on maximizing 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 markets. The Company’s core markets are in the states of Texas, Florida, California, Arizona and North Carolina. The Company is organized as a Maryland corporation and has elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended. We utilize an umbrella partnership real estate investment trust (“UPREIT”) organizational structure to hold all or substantially all of our assets through EastGroup Properties, L.P., our operating partnership.

As of MarchJune 31,30, 2026, EastGroup owned 556557 industrial properties in 12 states. As of that same date, the Company’s portfolio, including development projects and value-add properties in lease-up and under construction, included approximately 65,400,00065,700,000 square feet consisting of 516517 business distribution properties containing 59,500,00059,800,000 square feet, 19 bulk distribution properties containing 5,100,000 square feet, and 21 business service properties containing 800,000 square feet.

During the threesix months ended MarchJune 31,30, 2026, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions and geopolitical conflict. While these factors did not have a significant adverse impact on EastGroup during the threesix months ended MarchJune 31,30, 2026, they may adversely impact the Company in the future. Most of the Company’s leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, thereby reducing the Company’s exposure to increases in operating expenses resulting from inflation or other factors. Additionally, most of the Company's leases include scheduled rent increases. In the event inflation causes increases in the Company’s general and administrative expenses, or higher interest rates increase the Company’s cost of doing business, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. The Company continues to monitor inflation and interest rates, as well as direct and indirect impacts resulting from the uncertainty related to, or changes to, the overall regulatory and economic environment and from ongoing conflict in the Middle East.

During the threesix months ended MarchJune 31,30, 2026, EastGroup sold, and subsequently settled the issuance of, 365,620 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $191.46 per share, providing aggregate net proceeds to the Company of $69,300,000.

During the threesix months ended MarchJune 31,30, 2026, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 252,1361,040,457 shares of common stock with an initial weighted average forward price of $196.16$201.45 per share. The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time we entered into forward equity sale agreements.

The Company’s primary source of revenue is rental income. During the threesix months ended MarchJune 31,30, 2026, EastGroup executed new and renewal leases on 2,048,0004,887,000 square feet (representing 3.3%7.8% of the operating portfolio’s total square footage of 61,901,00062,523,000). For new and renewal leases signed during the first threesix months of 2026, average rental rates increased by 36.8%,35.2%, as compared to the former leases on the same spaces.

On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $1.77$3.17 for the threesix months ended MarchJune 31,30, 2026, compared to $1.14$2.35 for the same period of 2025, a 55.3%34.9% increase. See the Company’s analysis of performance trends below for further details.

Property Net Operating Income (“PNOI”), Excluding Income from Lease Terminations, from same properties (defined as operating properties owned during the entire period from January 1, 2025 through MarchJune 31,30, 2026), increased 7.5%6.8% for the threesix months ended MarchJune 31,30, 2026, as compared to the same period in 2025.

EastGroup’s operating portfolio was 96.5%96.8% leased and 95.9%95.6% occupied as of MarchJune 31,30, 2026, compared to 97.3%97.1% and 96.5%,96.0%, respectively, at MarchJune 31,30, 2025. As of AprilJuly 21, 2026, the operating portfolio was 96.4%96.9% leased and 95.7%95.6% occupied. As of MarchJune 31,30, 2026, leases approximating 8.2%4.5% of the operating portfolio, based on a percentage of annualized base rent, were scheduled to expire during the remainder of 2026. This percentage was reduced to 7.1%3.6% as of AprilJuly 21, 2026.

During the threesix months ended MarchJune 31,30, 2026, the Company began construction of foursix development projects containing 586,000933,000 square feet in fourfive markets. EastGroup also transferred twosix development projects (562,0001,231,000 square feet) in twofive markets from Development and value-add properties to Real estate properties, with costs of $68,845,000$124,991,000 at the date of transfer. As of MarchJune 31,30, 2026, EastGroup’s development and value-add program consisted of 1917 projects (3,497,0003,175,000 square feet) located in 1312 markets. The projected total investment for the development projects, which were collectively 30.1%21.7% leased as of AprilJuly 21, 2026, is $508,100,000,$486,800,000, of which $186,807,000$175,105,000 remained to be invested as of MarchJune 31,30, 2026.

During the threesix months ended MarchJune 31,30, 2026, EastGroup acquired an operating property in Jacksonville, containing 177,000 square feet for $38,130,000. There were no value-add property acquisitions during the period.

During the threesix months ended MarchJune 31,30, 2026, EastGroup sold atwo 398,000operating properties, in Fresno and Jacksonville, totaling 444,000 square foot operating property in Fresno,feet, generating gross sales proceeds of $37,000,000.$44,000,000. The Company recognized $24,885,000$30,074,000 in Gain on sales of real estate investments during the threesix months ended MarchJune 31,30, 2026.

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 and prior year reporting periods. 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. For the three and six months ended MarchJune 31,30, 2026, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2025 through MarchJune 31,30, 2026. The Company presents Same PNOI and Same PNOI, Excluding Income from Lease Terminations, as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis.

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI, Excluding Income from Lease Terminations, for the three and six months ended MarchJune 31,30, 2026 and 2025.

PNOI was calculated as follows for the three and six months ended MarchJune 31,30, 2026 and 2025.

The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO Attributable to Common Stockholders for the three and six months ended MarchJune 31,30, 2026 and 2025.

•Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three and six months ended MarchJune 31,30, 2026 was $94,624,000$75,523,000 ($1.77$1.41 per basic and $1.40 per diluted share) and $170,147,000 ($3.18 per basic and $3.17 per diluted share), respectively, compared to $63,299,000 ($1.21 per basic and $1.20 per diluted share) and $122,722,000 ($2.35 per basic and diluted share), compared to $59,423,000 ($1.14 per basic and diluted share)respectively, for the same periodperiods in 2025. See Results of Operations for further analysis.

•The change in FFO per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year. For the three months ended MarchJune 31,30, 2026, FFO was $2.34$2.36 per diluted share compared with $2.15$2.21 per diluted share for the same period of 2025, an increase of 8.8%.6.8%. For the six months ended June 30, 2026, FFO was $4.70 per diluted share compared with $4.37 per diluted share for the same period of 2025, an increase of 7.6%. FFO increased during the three and six months ended MarchJune 31,30, 2026, as compared to the same periodperiods in 2025, primarily due to the increase in PNOI, partially offset by an increase in general and administrative expense and interest expense.

•For the three months ended MarchJune 31,30, 2026, PNOI increased by $13,842,000,$13,732,000, or 11.0%,10.6%, as compared to the same period in 2025. PNOI increased $8,783,000$7,644,000 from same property operations, $2,703,000$3,561,000 from newly developed and value-add properties and $2,658,000$2,965,000 from 2025 and 2026 acquisitions.acquisitions; PNOI decreased $671,000 due to operating properties sold in 2025 and 2026.

•The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2025 through MarchJune 31,30, 2026. Same PNOI, excluding income from lease terminations, increased 7.5%6.2% and 6.8% for the three and six months ended MarchJune 31,30, 2026, respectively, as compared to the same periodperiods in 2025.

•Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through MarchJune 31,30, 2026). Same property average occupancy was 97.3%96.9% for the three months ended MarchJune 31,30, 2026, compared to 96.1%96.3% for the same period of 2025. Same property average occupancy was 97.1% for the six months ended June 30, 2026, compared to 96.2% for the same period of 2025.

•The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2025 through MarchJune 31,30, 2026). The same property average rental rate was $9.26$9.34 and $9.30 per square foot for the three and six months ended MarchJune 31,30, 2026, respectively, compared to $8.62$8.80 and $8.71 per square foot for the same periodperiods of 2025.

•Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period. Occupancy at MarchJune 31,30, 2026 was 95.9%.95.6%. Quarter-end occupancy ranged from 95.9% to 96.5% over the previous four quarters ended MarchJune 31,30, 2025 to DecemberMarch 31, 2025.2026.

•Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space. Rental rate increases on new and renewal leases (3.3%4.5% of the operating portfolio’s total square footage) averaged 36.8%34.1% for the three months ended MarchJune 31,30, 2026. For the six months ended June 30, 2026, rental rate increases on new and renewal leases (7.8% of the operating portfolio’s total square footage) averaged 35.2%.

EastGroup’s Total Assets were $5,490,264,000$5,522,866,000 at MarchJune 31,30, 2026, an increase of $58,457,000$91,059,000 from December 31, 2025. Total Liabilities decreasedincreased $21,935,000$12,249,000 to $1,913,284,000,$1,947,468,000, and Total Equity increased $80,392,000$78,810,000 to $3,576,980,000$3,575,398,000 during the same period. The following paragraphs explain these changes in detail.

Real estate properties increased $74,135,000$147,339,000 during the threesix months ended MarchJune 31,30, 2026, primarily due to: (i) the transfer of projects from Development and value-add properties to Real estate properties; (ii) the acquisition of an operating property; (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. The increases were partially offset by the sale of an operating property,properties and the transfer of onea property from Real estate properties to Development and value-add properties and the reclassification of one property from Real estate properties to Real estate assets held for sale.properties.

During the threesix months ended MarchJune 31,30, 2026, EastGroup acquired the following properties:

There were no acquisitions of value-add properties or development land during the threesix months ended MarchJune 31,30, 2026.

During the threesix months ended MarchJune 31,30, 2026, EastGroup sold atwo 398,000operating properties, in Fresno and Jacksonville, totaling 444,000 square foot operating property in Fresno,feet, generating gross sales proceeds of $37,000,000.$44,000,000. The Company recognized $24,885,000$30,074,000 in Gain on sales of real estate investments during the threesix months ended MarchJune 31,30, 2026.

During the threesix months ended MarchJune 31,30, 2026, the Company made capital improvements of $13,888,000$27,607,000 on existing properties (included in the Real Estate Improvements table under Results of Operations). Also, the Company incurred costs of $2,233,000$7,196,000 on development and value-add properties subsequent to transfer to Real estate properties; the Company records these expenditures as development and value-add costs on the Consolidated Statements of Cash Flows.

Development and value-add properties at MarchJune 31,30, 2026 consisted of projects in lease-up and under construction of $321,293,000$311,695,000 and prospective development (primarily land) of $377,119,000.$379,821,000. The Company’s total investment in Development and value-add properties at MarchJune 31,30, 2026 was $698,412,000$691,516,000 compared to $710,200,000 at December 31, 2025. The decrease in Development and value-add properties was primarily due to the transfer of twosix development and value-add projects to Real estate properties during the threesix months ended MarchJune 31,30, 2026 with a total investment of $68,845,000$124,991,000 as of the date of transfer.

Total capital invested for development during the first threesix months of 2026 was $45,312,000,$99,525,000, which consisted of improvement costs of $43,079,000$92,329,000 on development and value-add properties and costs of $2,233,000$7,196,000 on properties subsequent to transfer to Real estate properties. The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs). The Company capitalized internal development costs of $2,339,000$1,785,000 and $4,124,000 for the three and six months ended MarchJune 31,30, 2026, respectively, compared to $1,954,000$1,717,000 and $3,671,000 for the same periodperiods of 2025. The increase was due to variations in timing and volume of development projects under construction.

A summary of the Company's Development and Value-Add Properties for the threesix months ended MarchJune 31,30, 2026 follows:

Accumulated depreciation on real estate, development and value-add properties increased $24,836,000$69,835,000 during the threesix months ended MarchJune 31,30, 2026, primarily due to depreciation expense of $45,199,000$91,101,000 partially offset by the sale of an operating property, the reclassification of one property from Real estate properties to Real estate assets held for sale and write-offs of fully depreciated assets.

Cash and cash equivalents increased $30,351,000$32,375,000 during the threesix months ended MarchJune 31,30, 2026. Refer to the Consolidated Statements of Cash Flows and Liquidity and Capital Resources for further details.

Other assets, net decreasedincreased $10,635,000$209,000 during the threesix months ended MarchJune 31,30, 2026. See Note 9 in the Notes to Consolidated Financial Statements for further details.

Unsecured bank credit facilities, net of debt issuance costs decreased $18,596,000$18,344,000 during the threesix months ended MarchJune 31,30, 2026, primarily due to repayments of $130,472,000,$153,389,000, partially offset by borrowings of $111,627,000.$134,544,000. The Company’s credit facilities are described in greater detail in Liquidity and Capital Resources.

Unsecured debt, net of debt issuance costs increased $277,000$557,000 during the threesix months ended MarchJune 31,30, 2026, primarily due to debt issuance cost activity during the period. The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources.

Accounts payable and accrued expenses decreasedincreased $531,000$35,834,000 during the threesix months ended MarchJune 31,30, 2026. Refer to Note 11 in the Notes to Consolidated Financial Statements for further details.

Other liabilities decreased $3,085,000$5,798,000 during the threesix months ended MarchJune 31,30, 2026. Refer to Note 12 in the Notes to Consolidated Financial Statements for further details.

Additional paid-in capital increased $67,406,000$70,351,000 during the threesix months ended MarchJune 31,30, 2026, primarily due to the issuance of common stock under the Company’s ATM program (as discussed in Note 16 in the Notes to Consolidated Financial Statements) and activity related to stock-based compensation (as discussed in Note 17 in the Notes to Consolidated Financial Statements).

Distributions in excess of earnings decreased $11,007,000$3,038,000 during the threesix months ended MarchJune 31,30, 2026, as a result of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders of $94,624,000$170,147,000 exceeding dividends on common stock of $83,617,000.$167,109,000.

Accumulated other comprehensive income increased $1,979,000$5,405,000 during the threesix months ended MarchJune 31,30, 2026. The increase resulted from the change in fair value of the Company’s interest rate swaps (cash flow hedges) which are further discussed in Notes 13 and 14 in the Notes to Consolidated Financial Statements.

Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three and six months ended MarchJune 31,30, 2026 was $94,624,000$75,523,000 ($1.77$1.41 per basic and $1.40 per diluted share) and $170,147,000 ($3.18 per basic and $3.17 per diluted share), respectively, compared to $59,423,000$63,299,000 ($1.14$1.21 per basic and $1.20 per diluted share) and $122,722,000 ($2.35 per basic and diluted share) for the same periodperiods in 2025. The following paragraphs provide further details with respect to these changes:

•PNOI was $140,020,000$142,916,000 ($2.61$2.66 per diluted share) for the three months ended MarchJune 31,30, 2026, compared to $126,178,000$129,184,000 ($2.43$2.46 per diluted share) during the same period of 2025. PNOI increased $8,783,000$7,644,000 from same property operations, $2,703,000$3,561,000 from newly developed and value-add properties and $2,658,000$2,965,000 from 2025 and 2026 acquisitions.acquisitions; PNOI decreased $671,000 due to operating properties sold in 2025 and 2026. Income recognized from straight-lining of rent decreased by $389,000$875,000 for the three months ended MarchJune 31,30, 2026, as compared to the same period of 2025.

•EastGroup recognized Gains on sales of real estate investments of $24,885,000$5,189,000 ($0.46$0.10 per diluted share) and $30,074,000 ($0.56 per diluted share) during the three and six months ended MarchJune 31,30, 2026.2026, respectively. The Company haddid nonot recognize any gains or losses on operating property salesdispositions during the three and six months ended MarchJune 31,30, 2025. The Company’s 2025 and 2026 sales transactions are described in Note 8 of the Notes to Consolidated Financial Statements.

•Depreciation and amortization was $55,497,000$56,406,000 ($1.04$1.05 per diluted share) and $52,520,000$53,012,000 ($1.01 per diluted share) during the three months ended MarchJune 31,30, 2026 and 2025, respectively. Depreciation and amortization was $111,903,000 ($2.09 per diluted share) and $105,532,000 ($2.02 per diluted share) during the six months ended June 30, 2026 and 2025, respectively. The increase is primarily due to the operating properties acquired by the Company in 2025 and 2026 and the properties transferred from Development and value-add properties in 2025 and 2026, partially offset by operating properties sold in 2025 and 2026.

•Interest expense recognized was $9,079,000$8,990,000 ($0.17 per diluted share) and $8,025,000$7,690,000 ($0.15 per diluted share) during the three months ended MarchJune 31,30, 2026 and 2025, respectively,respectively. whichInterest expense recognized was an$18,069,000 increase of $0.02($0.34 per share.diluted share) and $15,715,000 ($0.30 per diluted share) during the six months ended June 30, 2026 and 2025, respectively. Refer to the table below for additional details.

•Weighted average shares outstanding increased by 1,518,0001,204,000 shares on a diluted basis for the three months ended MarchJune 31,30, 2026, as compared to the same period of 2025. Weighted average shares outstanding increased by 1,361,000 shares on a diluted basis for the six months ended June 30, 2026, as compared to the same period of 2025. The increase is primarily due to issuance of shares through common stock offerings, as discussed in Liquidity and Capital Resources.

EastGroup entered into 2651 leases with certain rent concessions on 836,0002,447,000 square feet during the three months ended MarchJune 31,30, 2026, with total rent concessions of $2,195,000$9,112,000 over the terms of the leases. During the same period of 2025, the Company entered into 3935 leases with certain rent concessions on 1,360,000727,000 square feet with total rent concessions of $3,161,000$1,635,000 over the terms of the leases.

The Company’s percentage of leased square footage for the operating portfolio was 96.5%96.8% at MarchJune 31,30, 2026, compared to 97.3%97.1% at MarchJune 31,30, 2025. Occupancy for the Company’s operating portfolio at MarchJune 31,30, 2026 was 95.9%95.6% compared to 96.5%96.0% at MarchJune 31,30, 2025.

The following table presents the components of Interest expense for the three and six months ended MarchJune 31,30, 2026 and 2025:

The Company’s variable rate interest expense increased by $431,000$24,000 and $455,000 for the three and six months ended MarchJune 31,30, 2026, respectively, as compared to the same periodperiods in 2025. The increase was primarily due to an increase in average borrowings, partially offset by a decrease in the Company’s weighted average variable interest rates, as shown in the following table:

The Company’s fixed rate interest expense increased by $1,386,000$1,585,000 and $2,971,000 for the three and six months ended MarchJune 31,30, 2026, respectively, as compared to the same periodperiods in 2025, primarily as a result of new unsecured debt obtained during the year ended December 31, 2025:

(1)The interest rate on this unsecured term loan is comprised of Daily Secured Overnight Financing Rate (“SOFR”) plus a margin which is subject to a pricing grid for changes in the Company’s coverage ratings. The Company entered into interest rate swap agreements (further described in Note 14 in the Notes to Consolidated Financial Statements) to convert the loan’s SOFR rate to an effectively fixed interest rate. The interest rate in the table above is the effectively fixed interest rate for the loan, including the effect of the interest rate swaps, as of MarchJune 31,30, 2026.