egp-20240331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________________

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission File Number: 1-07094

EASTGROUP PROPERTIES, INC.

(Exact Name of Registrant as Specified in its Charter)


Maryland		13-2711135
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

400 W Parkway Place
Suite 100
Ridgeland,	Mississippi	39157
(Address of principal executive offices)		(Zip code)

Registrant’s telephone number, including area code: (601) 354-3555

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common stock, $0.0001 par value per share	EGP	New York Stock Exchange

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

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Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐ No ☒

The number of shares of common stock, $0.0001 par value, outstanding as of April 23, 2024 was 48,144,312.

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EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS

FOR THE QUARTER ENDED MARCH 31, 2024


		Page
PART I.	FINANCIAL INFORMATION

Item 1.	Financial Statements

	Consolidated Balance Sheets, March 31, 2024 and December 31, 2023 (unaudited)	4

	Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2024 and 2023 (unaudited)	5

	Consolidated Statements of Changes in Equity for the three months ended March 31, 2024 and 2023 (unaudited)	6

	Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 (unaudited)	7

	Notes to Consolidated Financial Statements (unaudited)	8

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38

Item 4.	Controls and Procedures	39

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	39

Item 1A.	Risk Factors	39

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39

Item 3.	Defaults Upon Senior Securities	39

Item 4.	Mine Safety Disclosures	39

Item 5.	Other Information	40

Item 6.	Exhibits	41

SIGNATURES

Authorized signatures		42

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PART I. FINANCIAL INFORMATION.

ITEM 1. FINANCIAL STATEMENTS.

EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

(UNAUDITED)


	March 31, 2024		December 31, 2023
ASSETS
Real estate properties	$	4,927,921	4,853,548
Development and value-add properties	670,250		639,647

	5,598,171		5,493,195
Less accumulated depreciation	(1,299,905)		(1,273,723)
	4,298,266		4,219,472

Unconsolidated investment	7,816		7,539
Cash and cash equivalents	15,625		40,263
Other assets	255,298		251,939
TOTAL ASSETS	$	4,577,005	4,519,213

LIABILITIES AND EQUITY

LIABILITIES
Unsecured bank credit facilities, net of debt issuance costs	$	(1,281)	(1,520)
Unsecured debt, net of debt issuance costs	1,676,573		1,676,347
Accounts payable and accrued expenses	155,255		146,337
Other liabilities	87,099		89,415
Total Liabilities	1,917,646		1,910,579

EQUITY
Stockholders’ Equity:
Common shares; $0.0001 par value; 70,000,000 shares authorized; 48,010,613 shares issued and outstanding at March 31, 2024 and 47,700,432 at December 31, 2023	5		5
Excess shares; $0.0001 par value; 30,000,000 shares authorized; zero shares issued	—		—
Additional paid-in capital	2,997,210		2,949,907
Distributions in excess of earnings	(368,954)		(366,473)
Accumulated other comprehensive income	30,782		24,888
Total Stockholders’ Equity	2,659,043		2,608,327
Noncontrolling interest in joint ventures	316		307
Total Equity	2,659,359		2,608,634
TOTAL LIABILITIES AND EQUITY	$	4,577,005	4,519,213

See accompanying Notes to Consolidated Financial Statements (unaudited).

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EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(IN THOUSANDS, EXCEPT PER SHARE DATA)

(UNAUDITED)


	Three Months Ended
	March 31,
	2024		2023
REVENUES
Income from real estate operations	$	154,074	133,964
Other revenue	150		1,061
	154,224		135,025
EXPENSES
Expenses from real estate operations	43,003		36,186
Depreciation and amortization	45,169		41,014
General and administrative	6,681		5,204
Indirect leasing costs	177		140
	95,030		82,544

OTHER INCOME (EXPENSE)
Interest expense	(10,061)		(13,025)
Gain on sales of real estate investments	8,751		4,809
Other	774		439






NET INCOME	58,658		44,704
Net income attributable to noncontrolling interest in joint ventures	(14)		(14)
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS	58,644		44,690
Other comprehensive income (loss) — interest rate swaps	5,894		(10,262)
TOTAL COMPREHENSIVE INCOME	$	64,538	34,428
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS


Net income attributable to common stockholders	$	1.23	1.02
Weighted average shares outstanding — Basic	47,860		43,751
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS


Net income attributable to common stockholders	$	1.22	1.02
Weighted average shares outstanding — Diluted	47,961		43,823

See accompanying Notes to Consolidated Financial Statements (unaudited).

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EASTGROUP PROPERTIES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)

(UNAUDITED)

For the three months ended March 31, 2024:


	Common Shares		Additional Paid-In Capital	Distributions in Excess of Earnings	Accumulated Other Comprehensive Income	Noncontrolling Interest in Joint Ventures	Total
BALANCE, DECEMBER 31, 2023	$	5	2,949,907	(366,473)	24,888	307	2,608,634
Net income	—		—	58,644	—	14	58,658
Net unrealized change in fair value of interest rate swaps	—		—	—	5,894	—	5,894
Common dividends declared — $1.27 per share	—		—	(61,125)	—	—	(61,125)
Stock-based compensation, net of forfeitures	—		4,147	—	—	—	4,147
Issuance of 272,342 shares of common stock, common stock offering, net of expenses	—		49,294	—	—	—	49,294
Withheld 33,381 shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock	—		(6,125)	—	—	—	(6,125)
Withheld 68 shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock	—		(13)	—	—	—	(13)
Net distributions to noncontrolling interest	—		—	—	—	(67)	(67)
Contributions from noncontrolling interest	—		—	—	—	62	62
BALANCE, MARCH 31, 2024	$	5	2,997,210	(368,954)	30,782	316	2,659,359

SEC Form 10-Q filed by EastGroup Properties Inc.