Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2024 | Oct. 23, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Entity File Number | 1-07094 | |
Entity Registrant Name | EASTGROUP PROPERTIES, INC. | |
Entity Incorporation, State or Country Code | MD | |
Entity Tax Identification Number | 13-2711135 | |
Entity Address, Address Line One | 400 W Parkway Place | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Ridgeland, | |
Entity Address, State or Province | MS | |
Entity Address, Postal Zip Code | 39157 | |
City Area Code | 601 | |
Local Phone Number | 354-3555 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | EGP | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 49,505,601 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Entity Central Index Key | 0000049600 | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2024 |
CONSOLIDATED BALANCE SHEETS - U
CONSOLIDATED BALANCE SHEETS - Unaudited - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | |
ASSETS | |||
Real estate properties | $ 5,184,057 | $ 4,853,548 | |
Development and value-add properties | [1] | 654,092 | 639,647 |
Real estate, development and value-add properties | 5,838,149 | 5,493,195 | |
Less accumulated depreciation | (1,376,198) | (1,273,723) | |
Real estate, net | 4,461,951 | 4,219,472 | |
Unconsolidated investment | 7,169 | 7,539 | |
Cash and cash equivalents | 16,957 | 40,263 | |
Other assets | 267,988 | 251,939 | |
TOTAL ASSETS | 4,754,065 | 4,519,213 | |
LIABILITIES | |||
Unsecured bank credit facilities, net of debt issuance costs | (3,848) | (1,520) | |
Unsecured debt, net of debt issuance costs | 1,627,018 | 1,676,347 | |
Accounts payable and accrued expenses | 205,320 | 146,337 | |
Other liabilities | 92,884 | 89,415 | |
Total Liabilities | 1,921,374 | 1,910,579 | |
STOCKHOLDERS' EQUITY | |||
Common shares; $.0001 par value; 70,000,000 shares authorized; 49,206,050 shares issued and outstanding at September 30, 2024 and 47,700,432 at December 31, 2023 | 5 | 5 | |
Excess shares; $.0001 par value; 30,000,000 shares authorized; zero shares issued | 0 | 0 | |
Additional paid-in capital | 3,207,773 | 2,949,907 | |
Distributions in excess of earning | (389,274) | (366,473) | |
Accumulated other comprehensive income | 13,940 | 24,888 | |
Total Stockholders' Equity | 2,832,444 | 2,608,327 | |
Noncontrolling interest in joint ventures | 247 | 307 | |
Total Equity | 2,832,691 | 2,608,634 | |
TOTAL LIABILITIES AND EQUITY | $ 4,754,065 | $ 4,519,213 | |
BALANCE SHEET PARENTHETICAL DISCLOSURES | |||
Common shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | |
Common shares, authorized | 70,000,000 | 70,000,000 | |
Common shares, issued | 49,206,050 | 47,700,432 | |
Common shares, outstanding | 49,206,050 | 47,700,432 | |
Excess shares, par value | $ 0.0001 | $ 0.0001 | |
Excess shares, authorized | 30,000,000 | 30,000,000 | |
Excess Stock, Shares Issued | 0 | 0 | |
[1] Value-add properties are defined in Note 6. |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - Unaudited - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
REVENUES | ||||
Income from real estate operations | $ 162,861 | $ 144,378 | $ 474,268 | $ 417,153 |
Other revenue | 15 | 2,152 | 1,922 | 4,289 |
Revenues | 162,876 | 146,530 | 476,190 | 421,442 |
EXPENSES | ||||
Expenses from real estate operations | 44,163 | 40,709 | 131,017 | 114,662 |
Depreciation and amortization | 48,917 | 42,521 | 139,749 | 125,830 |
General and administrative | 5,154 | 3,429 | 16,576 | 13,017 |
Indirect leasing costs | 159 | 147 | 556 | 436 |
Expenses | 98,393 | 86,806 | 287,898 | 253,945 |
OTHER INCOME (EXPENSE) | ||||
Interest expense | (9,871) | (11,288) | (29,764) | (36,888) |
Gains on sales of real estate investments | 0 | 0 | 8,751 | 4,809 |
Other | 582 | 474 | 1,874 | 1,661 |
Net Income | 55,194 | 48,910 | 169,153 | 137,079 |
Net income attributable to noncontrolling interest in joint ventures | (14) | (14) | (42) | (43) |
NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | 55,180 | 48,896 | 169,111 | 137,036 |
Other comprehensive income (loss) - interest rate swaps | (15,747) | 5,777 | (10,948) | 5,717 |
TOTAL COMPREHENSIVE INCOME | $ 39,433 | $ 54,673 | $ 158,163 | $ 142,753 |
BASIC PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | ||||
Net income attributable to common stockholders | $ 1.13 | $ 1.07 | $ 3.50 | $ 3.07 |
Weighted average shares outstanding (in shares) | 48,864 | 45,658 | 48,324 | 44,688 |
DILUTED PER COMMON SHARE DATA FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | ||||
Net income attributable to common stockholders | $ 1.13 | $ 1.07 | $ 3.49 | $ 3.06 |
Weighted average shares outstanding (in shares) | 48,999 | 45,788 | 48,435 | 44,782 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - Unaudited - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-in Capital | Distributions In Excess Of Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest in Joint Ventures |
BALANCE at Dec. 31, 2022 | $ 1,953,439 | $ 4 | $ 2,251,521 | $ (334,898) | $ 36,371 | $ 441 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 44,704 | 0 | 0 | 44,690 | 0 | 14 |
Net unrealized change in fair value of interest rate swaps | (10,262) | 0 | 0 | 0 | (10,262) | 0 |
Common dividends declared | (55,414) | 0 | 0 | (55,414) | 0 | 0 |
Stock-based compensation, net of forfeitures | 3,477 | 0 | 3,477 | 0 | 0 | 0 |
Issuance of common stock, common stock offering, net of expenses | 105,321 | 0 | 105,321 | 0 | 0 | 0 |
Withheld shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock | (4,836) | 0 | (4,836) | 0 | 0 | 0 |
Withheld shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock | (7) | 0 | (7) | 0 | 0 | 0 |
Net distributions to noncontrolling interest | (40) | 0 | 0 | 0 | 0 | (40) |
BALANCE at Mar. 31, 2023 | $ 2,036,382 | 4 | 2,355,476 | (345,622) | 26,109 | 415 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common dividends declared - per share (in dollars per share) | $ 1.25 | |||||
Issuance of shares of common stock, common stock offering, net of expenses | 652,909 | |||||
Shares withheld for tax obligations | 31,254 | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 46 | |||||
BALANCE at Dec. 31, 2022 | $ 1,953,439 | 4 | 2,251,521 | (334,898) | 36,371 | 441 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 137,079 | |||||
BALANCE at Sep. 30, 2023 | 2,379,265 | 4 | 2,706,064 | (369,192) | 42,088 | 301 |
BALANCE at Dec. 31, 2022 | 1,953,439 | 4 | 2,251,521 | (334,898) | 36,371 | 441 |
BALANCE at Dec. 31, 2023 | 2,608,634 | 5 | 2,949,907 | (366,473) | 24,888 | 307 |
BALANCE at Mar. 31, 2023 | 2,036,382 | 4 | 2,355,476 | (345,622) | 26,109 | 415 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 43,465 | 0 | 0 | 43,450 | 0 | 15 |
Net unrealized change in fair value of interest rate swaps | 10,202 | 0 | 0 | 0 | 10,202 | 0 |
Common dividends declared | (56,762) | 0 | 0 | (56,762) | 0 | 0 |
Stock-based compensation, net of forfeitures | 2,771 | 0 | 2,771 | 0 | 0 | 0 |
Issuance of common stock, common stock offering, net of expenses | 177,749 | 0 | 177,749 | 0 | 0 | 0 |
Net distributions to noncontrolling interest | (86) | 0 | 0 | 0 | 0 | (86) |
BALANCE at Jun. 30, 2023 | $ 2,213,721 | 4 | 2,535,996 | (358,934) | 36,311 | 344 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common dividends declared - per share (in dollars per share) | $ 1.25 | |||||
Issuance of shares of common stock, common stock offering, net of expenses | 1,065,678 | |||||
Net Income | $ 48,910 | 0 | 0 | 48,896 | 0 | 14 |
Net unrealized change in fair value of interest rate swaps | 5,777 | 0 | 0 | 0 | 5,777 | 0 |
Common dividends declared | (59,154) | 0 | 0 | (59,154) | 0 | 0 |
Stock-based compensation, net of forfeitures | 2,766 | 0 | 2,766 | 0 | 0 | 0 |
Issuance of common stock, common stock offering, net of expenses | 167,315 | 0 | 167,315 | 0 | 0 | 0 |
Withheld shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock | (13) | 0 | (13) | 0 | 0 | 0 |
Net distributions to noncontrolling interest | (57) | 0 | 0 | 0 | 0 | (57) |
BALANCE at Sep. 30, 2023 | $ 2,379,265 | 4 | 2,706,064 | (369,192) | 42,088 | 301 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common dividends declared - per share (in dollars per share) | $ 1.27 | |||||
Issuance of shares of common stock, common stock offering, net of expenses | 953,070 | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 74 | |||||
BALANCE at Dec. 31, 2023 | $ 2,608,634 | 5 | 2,949,907 | (366,473) | 24,888 | 307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 58,658 | 0 | 0 | 58,644 | 0 | 14 |
Net unrealized change in fair value of interest rate swaps | 5,894 | 0 | 0 | 0 | 5,894 | 0 |
Common dividends declared | (61,125) | 0 | 0 | (61,125) | 0 | 0 |
Stock-based compensation, net of forfeitures | 4,147 | 0 | 4,147 | 0 | 0 | 0 |
Issuance of common stock, common stock offering, net of expenses | 49,294 | 0 | 49,294 | 0 | 0 | 0 |
Withheld shares of common stock to satisfy tax withholding obligations in connection with the vesting of restricted stock | (6,125) | 0 | (6,125) | 0 | 0 | 0 |
Withheld shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock | (13) | 0 | (13) | 0 | 0 | 0 |
Net distributions to noncontrolling interest | (67) | 0 | 0 | 0 | 0 | (67) |
Contributions from noncontrolling interest | 62 | 0 | 0 | 0 | 0 | 62 |
BALANCE at Mar. 31, 2024 | $ 2,659,359 | 5 | 2,997,210 | (368,954) | 30,782 | 316 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common dividends declared - per share (in dollars per share) | $ 1.27 | |||||
Issuance of shares of common stock, common stock offering, net of expenses | 272,342 | |||||
Shares withheld for tax obligations | 33,381 | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 68 | |||||
BALANCE at Dec. 31, 2023 | $ 2,608,634 | 5 | 2,949,907 | (366,473) | 24,888 | 307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 169,153 | |||||
BALANCE at Sep. 30, 2024 | 2,832,691 | 5 | 3,207,773 | (389,274) | 13,940 | 247 |
BALANCE at Mar. 31, 2024 | 2,659,359 | 5 | 2,997,210 | (368,954) | 30,782 | 316 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | 55,301 | 0 | 0 | 55,287 | 0 | 14 |
Net unrealized change in fair value of interest rate swaps | (1,095) | 0 | 0 | 0 | (1,095) | 0 |
Common dividends declared | (61,889) | 0 | 0 | (61,889) | 0 | 0 |
Stock-based compensation, net of forfeitures | 2,644 | 0 | 2,644 | 0 | 0 | 0 |
Issuance of common stock, common stock offering, net of expenses | 112,710 | 0 | 112,710 | 0 | 0 | 0 |
Withheld shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock | (10) | 0 | (10) | 0 | 0 | 0 |
Net distributions to noncontrolling interest | (73) | 0 | 0 | 0 | 0 | (73) |
BALANCE at Jun. 30, 2024 | $ 2,766,947 | 5 | 3,112,554 | (375,556) | 29,687 | 257 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common dividends declared - per share (in dollars per share) | $ 1.27 | |||||
Issuance of shares of common stock, common stock offering, net of expenses | 639,299 | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 57 | |||||
Net Income | $ 55,194 | 0 | 0 | 55,180 | 0 | 14 |
Net unrealized change in fair value of interest rate swaps | (15,747) | 0 | 0 | 0 | (15,747) | 0 |
Common dividends declared | (68,898) | 0 | 0 | (68,898) | 0 | 0 |
Stock-based compensation, net of forfeitures | 3,012 | 0 | 3,012 | 0 | 0 | 0 |
Issuance of common stock, common stock offering, net of expenses | 92,210 | 0 | 92,210 | 0 | 0 | 0 |
Withheld shares of common stock to satisfy tax withholding obligations in connection with the issuance of common stock | (3) | 0 | (3) | 0 | 0 | 0 |
Net distributions to noncontrolling interest | (24) | 0 | 0 | 0 | 0 | (24) |
BALANCE at Sep. 30, 2024 | $ 2,832,691 | $ 5 | $ 3,207,773 | $ (389,274) | $ 13,940 | $ 247 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common dividends declared - per share (in dollars per share) | $ 1.40 | |||||
Issuance of shares of common stock, common stock offering, net of expenses | 540,252 | |||||
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - Unaudited - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
OPERATING ACTIVITIES | |||||||
Net Income | $ 55,194 | $ 58,658 | $ 48,910 | $ 44,704 | $ 169,153 | $ 137,079 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 139,749 | 125,830 | |||||
Stock-based compensation expense | 8,277 | 6,835 | |||||
Gain on sales of real estate investments | (8,751) | (4,809) | |||||
Gain on sales of non-operating real estate | (222) | (446) | |||||
Gain on involuntary conversion and business interruption claims | (1,708) | (4,187) | |||||
Changes in operating assets and liabilities: | |||||||
Accrued income and other assets | (10,630) | (11,986) | |||||
Accounts payable, accrued expenses and prepaid rent | 65,021 | 50,434 | |||||
Other | 1,804 | 1,349 | |||||
NET CASH PROVIDED BY OPERATING ACTIVITIES | 362,693 | 300,099 | |||||
INVESTING ACTIVITIES | |||||||
Development and value-add properties | (181,353) | (286,256) | |||||
Purchases of real estate | (143,585) | (87,338) | |||||
Real estate improvements | (49,287) | (42,097) | |||||
Net proceeds from sales of real estate investments and non-operating real estate | 17,397 | 13,821 | |||||
Leasing commissions | (24,748) | (22,712) | |||||
Proceeds from involuntary conversion on real estate assets | 2,450 | 1,339 | |||||
Changes in accrued development costs | (12,950) | 26,724 | |||||
Changes in other assets and other liabilities | (4,720) | 7,060 | |||||
NET CASH USED IN INVESTING ACTIVITIES | (396,796) | (389,459) | |||||
FINANCING ACTIVITIES | |||||||
Proceeds from unsecured bank credit facilities | 55,262 | 334,230 | |||||
Repayments on unsecured bank credit facilities | (55,262) | (504,230) | |||||
Proceeds from unsecured debt | 0 | 100,000 | |||||
Repayments on unsecured debt | (50,000) | (115,000) | |||||
Repayments on secured debt | 0 | (1,970) | |||||
Debt issuance costs | (3,099) | (1,796) | |||||
Distributions paid to stockholders (not including dividends accrued) | (184,030) | (166,960) | |||||
Proceeds from common stock offerings | 254,356 | 450,869 | |||||
Common stock offering related costs | (142) | (484) | |||||
Other | (6,288) | (4,981) | |||||
NET CASH PROVIDED BY FINANCING ACTIVITIES | 10,797 | 89,678 | |||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | |||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (23,306) | 318 | |||||
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | $ 40,263 | $ 56 | 40,263 | 56 | $ 56 | ||
CASH AND CASH EQUIVALENTS AT END OF PERIOD | $ 16,957 | $ 374 | 16,957 | 374 | $ 40,263 | ||
SUPPLEMENTAL CASH FLOW INFORMATION | |||||||
Cash paid for interest, net of amounts capitalized of $14,797 and $11,864 for 2024 and 2023, respectively | 22,631 | 30,888 | |||||
Interest capitalized | 14,797 | 11,864 | |||||
Cash paid for operating lease liabilities | $ 1,783 | $ 1,620 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION |
PRINCIPLES OF CONSOLIDATION
PRINCIPLES OF CONSOLIDATION | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of EastGroup, its wholly owned subsidiaries and the investee of any joint ventures in which the Company has a controlling interest. As of September 30, 2024 and December 31, 2023, EastGroup had a 95% controlling interest in a joint venture arrangement owning 6.5 acres of land in San Diego, known by the Company as Miramar Land. During the year ended December 31, 2023, a joint venture, in which EastGroup owns a 99.5% interest, acquired 29.3 acres of land in Denver, known by the Company as Arista 36 Business Park 1-3. As of September 30, 2024 and December 31, 2023, EastGroup continued to hold a controlling interest in these two joint venture arrangements. The Company records 100% of the assets, liabilities, revenues and expenses of the buildings and land held in joint ventures with the noncontrolling interests provided for in accordance with the joint venture agreements. The equity method of accounting is used for the Company’s 50% undivided tenant-in-common interest in Industry Distribution Center 2. All significant intercompany transactions and accounts have been eliminated in consolidation. |
USE OF ESTIMATES
USE OF ESTIMATES | 9 Months Ended |
Sep. 30, 2024 | |
Use of estimates [Abstract] | |
USE OF ESTIMATES | USE OF ESTIMATES The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period and to disclose material contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
LEASE REVENUE
LEASE REVENUE | 9 Months Ended |
Sep. 30, 2024 | |
Operating Leases, Income Statement, Lease Revenue [Abstract] | |
Operating Lease, Lease Income [Text Block] | LEASE REVENUE The Company’s primary source of revenue is rental income from business distribution space. The table below presents the components of Income from real estate operations for the three and nine months ended September 30, 2024 and 2023: Three Months Ended Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Lease income — operating leases $ 121,797 106,683 353,135 311,529 Variable lease income (1) 41,064 37,695 121,133 105,624 Income from real estate operations $ 162,861 144,378 474,268 417,153 (1) Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. |
REAL ESTATE PROPERTIES
REAL ESTATE PROPERTIES | 9 Months Ended |
Sep. 30, 2024 | |
Real Estate Investment Property, Net [Abstract] | |
Real Estate Properties | REAL ESTATE PROPERTIES EastGroup has one reportable segment – industrial properties, consistent with the Company’s manner of internal reporting, measurement of operating results and allocation of the Company’s resources. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows (including estimated future expenditures necessary to substantially complete the asset) expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the nine month periods ended September 30, 2024 and 2023, the Company did not identify any impairment charges which should be recorded. Depreciation of buildings and other improvements is computed using the straight-line method over estimated useful lives of generally 40 years for buildings and 3 to 15 years for improvements. Building improvements are capitalized, while maintenance and repair expenses are charged to expense as incurred. Significant renovations and improvements that improve or extend the useful life of the assets are capitalized. Depreciation expense was $40,046,000 and $114,897,000 for the three and nine months ended September 30, 2024, respectively, and $35,031,000 and $103,567,000 for the same periods in 2023. The Company’s Real estate properties and Development and value-add properties at September 30, 2024 and December 31, 2023 were as follows: September 30, December 31, (In thousands) Real estate properties: Land $ 876,198 814,364 Buildings and building improvements 3,562,908 3,336,615 Tenant and other improvements 727,945 684,573 Right of use assets — Ground leases (operating) (1) 17,006 17,996 Development and value-add properties (2) 654,092 639,647 5,838,149 5,493,195 Less accumulated depreciation (1,376,198) (1,273,723) $ 4,461,951 4,219,472 (1) EastGroup applies the principles of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, Leases, and its related Accounting Standards Updates (“ASUs”) to account for its ground leases, which are classified as operating leases. The related operating lease liabilities for ground leases are included in Other liabilities on the Consolidated Balance Sheets. (2) Value-add properties are defined in Note 6. |
DEVELOPMENT AND VALUE-ADD PROPE
DEVELOPMENT AND VALUE-ADD PROPERTIES | 9 Months Ended |
Sep. 30, 2024 | |
DEVELOPMENT [Abstract] | |
Development | DEVELOPMENT AND VALUE-ADD PROPERTIES Development and value-add properties consists of properties in lease-up, under construction, and prospective development (primarily land). Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use. Properties meeting either of the following two conditions are considered value-add properties: (1) Less than 75% leased as of the acquisition date (or will be less than 75% occupied within one year of the acquisition date based on near term lease roll), or (2) 20% or greater of the gross carrying amount of the property will be spent to redevelop the property. 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 costs) deemed related to such development activities. The internal costs are allocated to specific development projects based on development activity. As the property becomes occupied, depreciation commences on the occupied portion of the building, and costs are capitalized only for the portion of the building that remains vacant. The Company transfers properties from Development and value-add propertie s to Real estate properties as follows: (1) for development properties, at the earlier of 90% occupancy or one year after completion of the shell construction, and (2) for value-add properties, at the earlier of 90% occupancy or one year after acquisition. Upon the earlier of 90% occupancy or one year after completion of the shell construction/value-add acquisition date, capitalization of development costs, including interest expense, property taxes and internal personnel costs, ceases and depreciation commences on the entire property (excluding the land). |
REAL ESTATE PROPERTY ACQUISITIO
REAL ESTATE PROPERTY ACQUISITIONS AND ACQUIRED INTANGIBLES | 9 Months Ended |
Sep. 30, 2024 | |
Asset Acquisition [Abstract] | |
Real Estate Property Acquisitions and Acquired Intangibles | REAL ESTATE PROPERTY ACQUISITIONS AND ACQUIRED INTANGIBLES Upon acquisition of real estate properties, EastGroup applies the principles of FASB ASC 805, Business Combinations. The FASB Codification provides a framework for determining whether transactions should be accounted for as acquisitions of assets or businesses. Under the guidance, companies are required to utilize an initial screening test to determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set is not a business. Criteria considered in grouping similar assets include geographic location, market and operational risks and the physical characteristics of the assets. EastGroup determined that its real estate property acquisitions in 2023 and the first nine months of 2024 are considered to be acquisitions of groups of similar identifiable assets; therefore, the acquisitions are not considered to be acquisitions of a business. As a result, the Company capitalized acquisition costs related to its 2023 and 2024 acquisitions. The FASB Codification also provides guidance on how to properly determine the allocation of the purchase price among the individual components of both the tangible and intangible assets based on their respective fair values. The allocation to tangible assets (land, building and improvements) is based upon management’s determination of the value of the property as if it were vacant using discounted cash flow models. Land is valued using comparable land sales specific to the applicable market, provided by a third party. The Company determines whether any financing assumed is above or below market based upon comparison to similar financing terms for similar properties. The cost of the properties acquired may be adjusted based on indebtedness assumed from the seller that is determined to be above or below market rates. The purchase price is also allocated among the following categories of intangible assets: the above or below market component of in-place leases and the value of leases in-place at the time of acquisition. The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate reflecting the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be paid pursuant to the lease over its remaining term and (ii) management’s estimate of the amounts that would be paid using current market rents over the remaining term of the lease. 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. 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. These intangible assets are included in Other assets on the Consolidated Balance Sheets and are amortized over the remaining terms of the existing leases. Amortization of above and below market lease intangibles, which is included in Income from real estate operations, increased rental income by $612,000 and $1,765,000 for the three and nine months ended September 30, 2024, respectively, and $560,000 and $1,855,000 for the same periods in 2023. Amortization expense for in-place lease intangibles, which is included in Depreciation and amortization, was $2,009,000 and $5,828,000 for the three and nine months ended September 30, 2024, respectively, and $1,895,000 and $6,031,000 for the same periods in 2023. During the nine months ended September 30, 2024, EastGroup acquired the following properties: REAL ESTATE PROPERTIES ACQUIRED IN 2024 Location Size Date Cost (1) (Square feet) (In thousands) Operating properties acquired (2)(3) Spanish Ridge Industrial Park Las Vegas, NV 231,000 01/23/2024 $ 54,859 147 Exchange Raleigh, NC 274,000 05/03/2024 52,945 Hays Commerce Center 3 & 4 Austin, TX 179,000 08/19/2024 35,781 Total operating property acquisitions 684,000 $ 143,585 (1) Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs. (2) Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets. (3) Excludes acquired development land as discussed below. There were no value-add acquisitions during the nine months ended September 30, 2024. The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which were acquired during the nine months ended September 30, 2024. ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2024 Cost (In thousands) Land $ 34,778 Buildings and building improvements 96,218 Tenant and other improvements 6,371 Total real estate properties acquired 137,367 In-place lease intangibles (1) 8,659 Above market lease intangibles (1) 121 Below market lease intangibles (2) (2,562) Total assets acquired, net of liabilities assumed $ 143,585 (1) In-place lease intangibles and above market lease intangibles are each included in Other assets on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. (2) Below market lease intangibles are included in Other liabilities on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. The leases in the properties acquired during the nine months ended September 30, 2024 had a weighted average remaining lease term at acquisition of approximately 5.7 years. Also during the nine months ended September 30, 2024, EastGroup purchased 34.3 acres of development land in Atlanta for $3,302,000. During 2023, EastGroup acquired the following properties: REAL ESTATE PROPERTIES ACQUIRED IN 2023 Location Size Date Cost (1) (Square feet) (In thousands) Operating properties acquired (2)(3) Craig Corporate Center Las Vegas, NV 156,000 04/18/2023 $ 34,365 Blue Diamond Business Park Las Vegas, NV 254,000 09/05/2023 52,973 McKinney Logistics Center Dallas, TX 193,000 10/02/2023 25,739 Park at Myatt Nashville, TN 171,000 11/03/2023 30,793 Pelzer Point Commerce Center 1 Greenville, SC 213,000 12/21/2023 21,246 Total operating property acquisitions 987,000 $ 165,116 (1) Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs. (2) Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets. (3) Excludes acquired development land as discussed below. There were no value-add acquisitions during the year ended December 31, 2023. The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which were acquired during the year ended December 31, 2023. ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2023 Cost (In thousands) Land $ 44,676 Buildings and building improvements 111,082 Tenant and other improvements 4,346 Total real estate properties acquired 160,104 In-place lease intangibles (1) 7,242 Below market lease intangibles (2) (2,230) Total assets acquired, net of liabilities assumed $ 165,116 (1) In-place lease intangibles and above market lease intangibles are each included in Other assets on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. (2) Below market lease intangibles are included in Other liabilities on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. The leases in the properties acquired during the year ended December 31, 2023 had a weighted average remaining lease term at acquisition of approximately 8.0 years. Also during 2023, EastGroup purchased 328.3 acres of development land in seven markets for $70,664,000. The Company periodically reviews the recoverability of goodwill (at least annually) and the recoverability of other intangibles (on a quarterly basis) for possible impairment. No impairment of goodwill or other intangibles existed during the three and nine month periods ended September 30, 2024 and 2023. |
REAL ESTATE SOLD AND HELD FOR S
REAL ESTATE SOLD AND HELD FOR SALE DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Real Estate Sold and Held For Sale and Discontinued Operations | REAL ESTATE SOLD AND HELD FOR SALE The Company considers a real estate property to be held for sale when it meets the criteria established under ASC 360, Property, Plant and Equipment, including when it is probable that the property will be sold within a year. Real estate properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale. The Company did not classify any properties as held for sale as of September 30, 2024 and December 31, 2023. In accordance with ASC 360 and ASC 205, Presentation of Financial Statements , the Company would report a disposal of a component of an entity or a group of components of an entity in discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the component or group of components meets the criteria to be classified as held for sale or when the component or group of components is disposed of by sale or other than by sale. In addition, the Company would provide additional disclosures about both discontinued operations and the disposal of an individually significant component of an entity that does not qualify for discontinued operations presentation in the financial statements. EastGroup performs an analysis of properties sold to determine whether the sales qualify for discontinued operations presentation. Results of operations and gains and losses on sales for properties sold are reported in continuing operations on the Consolidated Statements of Income and Comprehensive Income. The gains and losses on sales of operating properties are included in Gain on sales of real estate investments. A summary of Gain on sales of real estate investments for the nine months ended September 30, 2024 and the year ended December 31, 2023 follows: REAL ESTATE PROPERTIES SOLD Location Size Date Sold Net Sales Price Basis Recognized Gain (Square feet) (In thousands) 2024 Interchange Business Park and Metro Airport Commerce Center Jackson, MS 159,000 03/05/2024 $ 13,614 4,863 8,751 2023 World Houston 23 Houston, TX 125,000 03/31/2023 $ 9,327 4,518 4,809 Ettie Business Center San Francisco, CA 29,000 11/20/2023 11,638 8,845 2,793 Los Angeles Corporate Center Los Angeles, CA 77,000 12/29/2023 16,006 5,643 10,363 Total for 2023 231,000 $ 36,971 19,006 17,965 The table above includes sales of operating properties. During the nine months ended September 30, 2024, the Company also sold 3.9 acres of land in San Francisco for $4,000,000 and recognized a gain on the sale of $222,000. During the year ended December 31, 2023, the Company sold 11.9 acres of land in Houston and Fort Worth for $4,750,000 and recognized gains on the sales of $446,000. The gains on sales of non-operating real estate are included in Other on the Consolidated Statements of Income and Comprehensive Income. |
OTHER ASSETS
OTHER ASSETS | 9 Months Ended |
Sep. 30, 2024 | |
Other Assets [Abstract] | |
Other Assets | OTHER ASSETS A summary of the Company’s Other assets follows: September 30, December 31, (In thousands) Leasing costs (principally commissions) $ 168,476 158,741 Accumulated amortization of leasing costs (60,762) (57,646) Leasing costs (principally commissions), net of accumulated amortization 107,714 101,095 Acquired in-place lease intangibles 43,286 39,600 Accumulated amortization of acquired in-place lease intangibles (20,251) (19,395) Acquired in-place lease intangibles, net of accumulated amortization 23,035 20,205 Acquired above market lease intangibles 582 482 Accumulated amortization of acquired above market lease intangibles (370) (318) Acquired above market lease intangibles, net of accumulated amortization 212 164 Straight-line rents receivable 80,607 72,360 Accounts receivable 6,640 9,984 Interest rate swap assets 17,339 27,366 Right of use assets — Office leases (operating) 2,374 2,828 Goodwill 990 990 Escrow deposits and prepaid costs for pending transactions 7,886 745 Prepaid insurance 10,117 7,208 Receivable for insurance proceeds 3,334 1,425 Prepaid expenses and other assets 7,740 7,569 Total Other assets $ 267,988 251,939 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | DEBT The Company’s debt is detailed below: September 30, December 31, (In thousands) Unsecured bank credit facilities — variable rate, carrying amount $ — — Unamortized debt issuance costs (3,848) (1,520) Unsecured bank credit facilities, net of debt issuance costs (3,848) (1,520) Unsecured debt — fixed rate, carrying amount (1) 1,630,000 1,680,000 Unamortized debt issuance costs (2,982) (3,653) Unsecured debt, net of debt issuance costs 1,627,018 1,676,347 Total unsecured debt, net of debt issuance costs $ 1,623,170 1,674,827 (1) These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps. On June 13, 2024, EastGroup entered into amended and restated credit agreements related to its $625,000,000 and $50,000,000 unsecured bank credit facilities, to extend the maturity dates from July 30, 2025 to July 31, 2028. There were no other material changes to the credit facilities, which are outlined below. The Company has a $625,000,000 unsecured bank credit facility with a group of 10 banks, which has a maturity date of July 31, 2028. The credit facility contains options for two six-month extensions (at the Company's election) and an additional $625,000,000 accordion (with agreement by all parties). The interest rate on each tranche is reset on a monthly basis and as of September 30, 2024, was Secured Overnight Financing Rate (“SOFR”) plus 76.5 basis points with an annual facility fee of 15 basis points. As of September 30, 2024, the Company had no variable rate borrowings on this unsecured bank credit facility and an interest rate of 5.711%. The Company has two standby letters of credit totaling $2,655,000 pledged on this facility, which reduces borrowing capacity under the credit facility. The Company also has a $50,000,000 unsecured bank credit facility with a maturity date of July 31, 2028, or such later date as designated by the bank; the Company also has two six-month extensions available if the extension options in the $625,000,000 facility are exercised. The interest rate is reset on a daily basis and as of September 30, 2024, was SOFR plus 77.5 basis points with an annual facility fee of 15 basis points. As of September 30, 2024, the interest rate was 5.835% with no outstanding balance. For both facilities, the margin and facility fee are subject to changes in the Company's credit ratings. Although the Company’s current credit rating is Baa2, given the strength of the Company’s key credit metrics, initial pricing for the credit facilities is based on the BBB+/Baa1 credit ratings level. This favorable pricing level will be retained provided that the Company’s consolidated leverage ratio, as defined in the applicable agreements, remains less than 32.5%. The $625,000,000 facility is also subject to a sustainability-linked pricing component, pursuant to which the applicable interest margin is adjusted if the Company meets a certain sustainability performance target. This sustainability metric is evaluated annually and was achieved for the years ended December 31, 2023 and 2022, which allowed for the interest rate reduction in each of the years subsequent to achieving the metric. The margin was effectively reduced on this unsecured bank credit facility by one basis point, from 77.5 to 76.5 basis points. In August 2024, EastGroup repaid a $50,000,000 senior unsecured term loan at maturity with an effectively fixed interest rate of 4.08%. 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 September 30, 2024, are as follows: MATURITY DATES Principal Payments Maturing (In thousands) 2024 — Remainder of year $ 120,000 2025 145,000 2026 140,000 2027 175,000 2028 160,000 2029 and beyond 890,000 Total $ 1,630,000 |
ACCOUNTS PAYABLE AND ACCRUED EX
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9 Months Ended |
Sep. 30, 2024 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Expenses | ACCOUNTS PAYABLE AND ACCRUED EXPENSES A summary of the Company’s Accounts payable and accrued expenses follows: September 30, December 31, (In thousands) Property taxes payable $ 71,656 9,508 Development costs payable 20,659 29,487 Retainage payable 10,870 14,992 Real estate improvements and capitalized leasing costs payable 5,596 5,275 Interest payable 14,185 8,493 Dividends payable 70,275 62,393 Other payables and accrued expenses 12,079 16,189 Total Accounts payable and accrued expenses $ 205,320 146,337 |
OTHER LIABILITIES
OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities | OTHER LIABILITIES A summary of the Company’s Other liabilities follows: September 30, December 31, (In thousands) Security deposits $ 40,765 37,102 Prepaid rent and other deferred income 19,748 20,070 Operating lease liabilities — Ground leases 17,917 18,758 Operating lease liabilities — Office leases 2,420 2,882 Acquired below market lease intangibles 12,953 11,451 Accumulated amortization of below market lease intangibles (5,786) (5,006) Acquired below market lease intangibles, net of accumulated amortization 7,167 6,445 Interest rate swap liabilities 3,399 2,478 Other liabilities 1,468 1,680 Total Other liabilities $ 92,884 89,415 |
COMPREHENSIVE INCOME
COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2024 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | COMPREHENSIVE INCOME Total Comprehensive Income is comprised of net income plus all other changes in equity from non-owner sources and is presented on the Consolidated Statements of Income and Comprehensive Income. The components of Accumulated other comprehensive income are presented in the Company’s Consolidated Statements of Changes in Equity and are summarized below. See Note 14 for information regarding the Company’s interest rate swaps. Three Months Ended Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance at beginning of period $ 29,687 36,311 24,888 36,371 Other comprehensive income (loss) — interest rate swaps (15,747) 5,777 (10,948) 5,717 Balance at end of period $ 13,940 42,088 13,940 42,088 |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 30, 2024 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risk, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and, to a limited extent, the use of derivative instruments. Specifically, the Company has entered into derivative instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative instruments, described below, are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain of the Company’s borrowings. The Company’s objective in using interest rate derivatives is to change variable interest rates to fixed interest rates by using interest rate swaps. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the term of the agreements without exchange of the underlying notional amount. As of September 30, 2024, the Company had six interest rate swaps outstanding, all of which are used to hedge the variable cash flows associated with unsecured loans. All of the Company’s interest rate swaps convert the related loans’ SOFR rate components to effectively fixed interest rates, and the Company has concluded that each of the hedging relationships is highly effective. The changes in the fair value of derivatives designated and qualifying as cash flow hedges are recorded in Other comprehensive income (loss) and are subsequently reclassified into earnings through Interest expense as interest payments are made or received on the Company’s variable-rate debt in the period that the hedged forecasted transaction affects earnings. The Company estimates that an additional $8,810,000 will be reclassified from Other comprehensive income (loss) as a decrease to Interest expense over the next twelve months. The Company’s valuation methodology for over-the-counter (“OTC”) derivatives is to discount cash flows based on SOFR market data. Uncollateralized or partially-collateralized trades include appropriate economic adjustments for funding costs and credit risk. The Company calculates its derivative valuations using mid-market prices. As of September 30, 2024 and December 31, 2023, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk: NOTIONAL VALUE OF INTEREST RATE DERIVATIVES September 30, December 31, (In thousands) Interest Rate Swap $ 100,000 100,000 Interest Rate Swap 100,000 100,000 Interest Rate Swap 50,000 50,000 Interest Rate Swap 100,000 100,000 Interest Rate Swap 75,000 75,000 Interest Rate Swap — 50,000 Interest Rate Swap 100,000 100,000 The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023. See Note 18 for additional information on the fair value of the Company’s interest rate swaps. Derivatives As of September 30, 2024 Derivatives As of December 31, 2023 DERIVATIVES DESIGNATED AS CASH FLOW HEDGES Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swap assets Other assets $ 17,339 Other assets $ 27,366 Interest rate swap liabilities Other liabilities 3,399 Other liabilities 2,478 The table below presents the effect of the Company’s derivative financial instruments (interest rate swaps) on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2024 and 2023: Three Months Ended Nine Months Ended September 30, DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS 2024 2023 2024 2023 (In thousands) Amount of income (loss) recognized in Other comprehensive income (loss) on derivatives $ (11,094) 10,463 3,180 18,719 Amount of (income) reclassified from Accumulated other comprehensive income into Interest expense (4,653) (4,686) (14,128) (13,002) See Note 13 for additional information on the Company’s Accumulated other comprehensive income resulting from its interest rate swaps. Derivative financial agreements expose the Company to credit risk in the event of non-performance by the counterparties under the terms of the interest rate hedge agreements. The Company believes it minimizes the credit risk by transacting with financial institutions the Company regards as credit-worthy. The Company has an agreement with its derivative counterparties containing a provision stating that the Company could be declared in default on its derivative obligations if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender. As of September 30, 2024, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements. If the Company had breached any of these provisions, it would be required to settle its obligations under the agreements at their termination value. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Share | EARNINGS PER SHARE The Company applies ASC 260, Earnings Per Share , which requires companies to present basic and diluted earnings per share (“EPS”). Basic EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period. The Company’s basic EPS is calculated by dividing Net Income Attributable to EastGroup Properties, Inc. Common Stockholders by the weighted average number of common shares outstanding. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. Outstanding forward equity sale agreements are potentially dilutive securities excluded from the basic EPS calculation until the agreements are settled, shares issued and proceeds received. Although unvested restricted shares are classified as issued and outstanding, they are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period and to each share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The Company calculates diluted EPS by dividing Net Income Attributable to EastGroup Properties, Inc. Common Stockholders by the weighted average number of common shares outstanding plus the effect of any dilutive securities including shares issuable under forward equity sale agreements and unvested restricted stock using the treasury stock method. Any anti-dilutive securities are excluded from the diluted EPS calculation. Reconciliation of the numerators and denominators in the basic and diluted EPS computations is as follows: Three Months Ended Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) BASIC EPS COMPUTATION FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Numerator — net income attributable to common stockholders $ 55,180 48,896 169,111 137,036 Denominator — weighted average shares outstanding — Basic 48,864 45,658 48,324 44,688 DILUTED EPS COMPUTATION FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Numerator — net income attributable to common stockholders $ 55,180 48,896 169,111 137,036 Denominator: Weighted average shares outstanding — Basic 48,864 45,658 48,324 44,688 Effect of dilutive securities 135 130 111 94 Weighted average shares outstanding — Diluted 48,999 45,788 48,435 44,782 |
EQUITY OFFERINGS
EQUITY OFFERINGS | 9 Months Ended |
Sep. 30, 2024 | |
Equity [Abstract] | |
Equity | EQUITY OFFERINGS Underwriting commissions and offering costs incurred in connection with common stock offerings and at-the-market equity offering programs have been reflected as a reduction of Additional paid-in capital . Under relevant accounting guidance, sales of common stock under forward equity sale agreements are not deemed to be liabilities, and furthermore, meet the derivatives and hedging guidance scope exception to be accounted for as equity instruments based on the following assessment: (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. On October 25, 2023, we established an at-the-market 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 $750,000,000 (the “Current 2023 ATM Program”). The Current 2023 ATM Program replaced our previous $750,000,000 ATM program, which was established on December 16, 2022, under which we had sold shares of our common stock having an aggregate gross sales price of $464,305,000 through October 25, 2023. In connection with the Current 2023 ATM Program, we may sell shares of our common stock directly 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. The use of a forward equity sale agreement allows us to lock in a share price on the sale of shares of our common stock but defer settling and receiving the proceeds from the sale of shares until a later date. Additionally, the forward price that we expect to receive upon settlement of an agreement will be subject to adjustment for (i) a floating interest rate factor equal to a specified daily rate less a spread, (ii) the forward purchaser’s stock borrowing costs and (iii) scheduled dividends during the term of the agreement. Direct Common Stock Issuance Activity The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the nine months ended September 30, 2024 and the year ended December 31, 2023: Common Stock (1) Weighted Average Price Gross Proceeds Net Proceeds (In shares) (Per share) (In thousands) (In thousands) Three months ended March 31, 2024 — $ — $ — $ — Three months ended June 30, 2024 218,929 168.62 36,916 36,547 Three months ended September 30, 2024 239,750 179.74 43,093 42,663 Nine months ended September 30, 2024 458,679 $ 174.43 $ 80,009 $ 79,210 Twelve months ended December 31, 2023 4,094,896 $ 170.77 $ 699,304 $ 692,312 (1) Excludes shares of common stock sold on a forward basis as described below. Forward Equity Offering Activity The following table presents the Company’s forward equity offering activity during the three and nine months ended September 30, 2024: Common Stock Weighted Average Price Gross Proceeds (In shares) (Per share) (In thousands) Forward Sale Agreements Outstanding at December 31, 2023 406,041 $ 183.92 $ 74,679 Forward sale agreements settled — shares issued and proceeds received (1) (272,342) 183.59 (50,000) New forward sale agreements (2) 286,671 181.95 52,160 Forward Sale Agreements Outstanding at March 31, 2024 420,370 $ 182.79 $ 76,839 Forward sale agreements settled — shares issued and proceeds received (3) (420,370) 182.79 (76,839) New forward sale agreements (2) 600,053 166.65 100,000 Forward Sale Agreements Outstanding at June 30, 2024 600,053 $ 166.65 $ 100,000 Forward sale agreements settled — shares issued and proceeds received (4) (300,502) 166.39 (50,000) New forward sale agreements (2) 1,099,612 185.80 204,306 Forward Sale Agreements Outstanding at September 30, 2024 1,399,163 $ 181.76 $ 254,306 (1) EastGroup settled outstanding forward equity sale agreements by issuing 272,342 shares of common stock in exchange for net proceeds of approximately $49,364,000 . (2) The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time it entered into forward sale agreements. (3) EastGroup settled outstanding forward equity sale agreements by issuing 420,370 shares of common stock in exchange for net proceeds of approximately $76,200,000 . (4) EastGroup settled outstanding forward equity sale agreements by issuing 300,502 shares of common stock in exchange for net proceeds of approximately $49,582,000 . |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION EastGroup applies the provisions of ASC 718, Compensation - Stock Compensation, to account for its stock-based compensation plans. ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The cost for market-based awards and awards that only require service are expensed on a straight-line basis over the requisite service periods. The cost for performance-based awards is determined using the graded vesting attribution method which recognizes each separate vesting portion of the award as a separate award on a straight-line basis over the requisite service period. This method accelerates the expensing of the award compared to the straight-line method. For awards with a performance condition, compensation expense is recognized when the performance condition is considered probable of achievement. The total compensation expense for service and performance based awards is based upon the fair market value of the shares on the grant date. The grant date fair value for awards that have been granted and are subject to a future market condition (total shareholder return) are determined using a Monte Carlo simulation pricing model developed to specifically accommodate the unique features of the awards. During the restricted period for awards no longer subject to contingencies, the Company accrues dividends and holds the certificates for the shares; however, the employee can vote the shares. Share certificates and dividends are delivered to the employee as they vest. Forfeitures of awards are recognized as they occur. The Compensation Committee of the Company’s Board of Directors (the “Committee”) approves long-term and annual equity compensation awards for the Company’s executive officers. The vesting periods of the Company’s restricted stock plans vary, as determined by the Committee. Restricted stock is granted to executive officers subject to both continued service and the satisfaction of certain annual performance goals and multi-year market conditions as determined by the Committee. The long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three years and the employee’s continued service as of the vesting dates. The total shareholder return component is subject to bright-line tests that compare the Company’s total shareholder return to the Nareit Equity Index and to the member companies of the Nareit industrial index. The Company begins recognizing expense for these awards based on the grant date fair value of the awards which is determined using a simulation pricing model developed to specifically accommodate the unique features of the award. These market-based awards are expensed on a straight-line basis over the requisite service period (75% vests at the end of the three-year performance period and 25% vests the following year). The long-term awards subject only to continuing employment are expensed on a straight-line basis over the requisite service period (25% vests in each of the following four years). The annual equity compensation awards include components based on certain annual Company performance measures and individual annual performance goals over the upcoming year. The certain Company performance measures for 2024 are: (i) funds from operations (“FFO”) per share, (ii) cash same property net operating income change, (iii) debt-to-EBITDAre ratio, and (iv) fixed charge coverage. The Company begins recognizing expense for its estimate of the shares that could be earned pursuant to these awards on the grant date; the expense is adjusted to estimated performance levels during the performance period and to actual upon the determination of the awards. The shares are expensed using the graded vesting attribution method which recognizes each separate vesting portion of the award as a separate award on a straight-line basis over the requisite service period (34% vests at the end of the one year performance period and 33% vests in each of the following two years). Any shares issued pursuant to the individual annual performance goals are determined by the Committee in its discretion following the performance period. The Company begins recognizing the expense for the shares on the grant date and will expense on a straight-line basis over the remaining service period (34% vests at the end of the one year performance period and 33% vests in each of the following two years). Equity compensation is also awarded to the Company’s non-executive officers and directors, which are subject to service only conditions and expensed on a straight-line basis over the required service period. The total compensation expense is based upon the fair market value of the shares on the grant date. The Committee has adopted an Equity Award Retirement Policy (the “retirement policy”) which allows for accelerated vesting of unvested shares for retirement-eligible employees (defined as employees who meet certain age and years of service requirements). In order to qualify for accelerated vesting upon retirement, the eligible employees must provide required notification under the retirement policy and must retire from the Company. The Company has adjusted its stock-based compensation expense to accelerate the recognition of expense for retirement-eligible employees. Stock-based compensation cost for employees was $2,801,000 and $9,249,000 for the three and nine months ended September 30, 2024, respectively, of which $486,000 and $1,526,000 was capitalized as part of the Company’s development costs. For the three and nine months ended September 30, 2023, stock-based compensation cost for employees was $2,593,000 and $8,424,000, respectively, of which $886,000 and $2,180,000 was capitalized as part of the Company’s development costs. Stock-based compensation expense for directors was $211,000 and $554,000 for the three and nine months ended September 30, 2024, respectively, and $174,000 and $591,000 for the same periods in 2023. Following is a summary of the total restricted shares granted, forfeited and delivered (vested) to participants with the related weighted average grant date fair value share prices. Of the shares that vested in the nine months ended September 30, 2024, the Company withheld 33,381 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan. As of the grant dates, the fair value of shares that were granted during the nine months ended September 30, 2024 was $12,081,000. As of the vesting dates, the aggregate fair value of shares that vested during the nine months ended September 30, 2024 was $15,004,000. Award Activity: Three Months Ended Nine Months Ended September 30, 2024 Shares Weighted Average Grant Date Fair Value Weighted Average Grant Date Fair Value Unvested at beginning of period 76,005 $ 157.40 84,564 $ 153.78 Granted (1) (2) 13,220 179.97 89,348 135.21 Forfeited — — (2,545) 156.45 Vested (52) 120.39 (82,194) 125.94 Unvested at end of period 89,173 $ 160.76 89,173 $ 160.76 (1) Includes shares granted in prior years for which performance conditions have been satisfied and the number of shares have been determined. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 9 Months Ended |
Sep. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS ASC 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. The FASB Codification requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2) and significant valuation assumptions that are not readily observable in the market (Level 3). The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at September 30, 2024 and December 31, 2023. September 30, 2024 December 31, 2023 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value (In thousands) Financial Assets: Cash and cash equivalents $ 16,957 16,957 40,263 40,263 Interest rate swap assets 17,339 17,339 27,366 27,366 Financial Liabilities: Unsecured debt (2) 1,630,000 1,538,223 1,680,000 1,548,655 Interest rate swap liabilities 3,399 3,399 2,478 2,478 (1) Carrying amounts shown in the table are included on the Consolidated Balance Sheets under the indicated captions, except as explained below. (2) Carrying amounts and fair values shown in the table exclude debt issuance costs (see Note 10 for additional information). The following methods and assumptions were used to estimate the fair value of each class of financial instruments: • Cash and cash equivalents: The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amounts approximate fair value due to the short maturity of those instruments. • Interest rate swap assets (included in Other assets on the Consolidated Balance Sheets): The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves, SOFR swap curves, observable for substantially the full term of the contract (Level 2 input). See Note 14 for additional information on the Company’s interest rate swaps. • Unsecured debt: The fair value of the Company’s unsecured debt is estimated by discounting expected cash flows at the rates currently offered to the Company for debt of the same remaining maturities, as advised by the Company’s bankers (Level 2 input), excluding the effects of debt issuance costs. • Interest rate swap liabilities (included in Other liabilities on the Consolidated Balance Sheets): The instruments are recorded at fair value based on models using inputs, such as interest rate yield curves, SOFR swap curves, observable for substantially the full term of the contract (Level 2 input). See Note 14 for additional information on the Company’s interest rate swaps. |
RISKS AND UNCERTAINTIES
RISKS AND UNCERTAINTIES | 9 Months Ended |
Sep. 30, 2024 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | RISKS AND UNCERTAINTIES |
LEGAL MATTERS (Notes)
LEGAL MATTERS (Notes) | 9 Months Ended |
Sep. 30, 2024 | |
LEGAL MATTERS [Abstract] | |
Legal Matters and Contingencies [Text Block] | LEGAL MATTERSThe 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 of business. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Sep. 30, 2024 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | EastGroup has evaluated all ASUs recently released by the FASB through the date the financial statements were issued and determined that the following ASUs apply to the Company. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 9 Months Ended |
Sep. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS Subsequent to September 30, 2024, EastGroup settled outstanding forward equity sale agreements under the Current 2023 ATM Program by issuing 299,551 shares of common stock in exchange for net proceeds of approximately $49,385,000. In October, the Company acquired 25.6 acres in Nashville, Tennessee for approximately $10,100,000. This site is expected to accommodate the future development of four buildings, containing approximately 350,000 square feet. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The consolidated financial statements include the accounts of EastGroup, its wholly owned subsidiaries and the investee of any joint ventures in which the Company has a controlling interest. As of September 30, 2024 and December 31, 2023, EastGroup had a 95% controlling interest in a joint venture arrangement owning 6.5 acres of land in San Diego, known by the Company as Miramar Land. During the year ended December 31, 2023, a joint venture, in which EastGroup owns a 99.5% interest, acquired 29.3 acres of land in Denver, known by the Company as Arista 36 Business Park 1-3. As of September 30, 2024 and December 31, 2023, EastGroup continued to hold a controlling interest in these two joint venture arrangements. The Company records 100% of the assets, liabilities, revenues and expenses of the buildings and land held in joint ventures with the noncontrolling interests provided for in accordance with the joint venture agreements. The equity method of accounting is used for the Company’s 50% undivided tenant-in-common interest in Industry Distribution Center 2. All significant intercompany transactions and accounts have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses during the reporting period and to disclose material contingent assets and liabilities at the date of the financial statements. Actual results could differ from those estimates. |
Discontinued Operations | The Company considers a real estate property to be held for sale when it meets the criteria established under ASC 360, Property, Plant and Equipment, including when it is probable that the property will be sold within a year. Real estate properties held for sale are reported at the lower of the carrying amount or fair value less estimated costs to sell and are not depreciated while they are held for sale. The Company did not classify any properties as held for sale as of September 30, 2024 and December 31, 2023. In accordance with ASC 360 and ASC 205, Presentation of Financial Statements |
Real Estate Property Acquisitions and Acquired Intangibles [Policy Text Block] | Upon acquisition of real estate properties, EastGroup applies the principles of FASB ASC 805, Business Combinations. The FASB Codification provides a framework for determining whether transactions should be accounted for as acquisitions of assets or businesses. Under the guidance, companies are required to utilize an initial screening test to determine whether substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets; if so, the set is not a business. Criteria considered in grouping similar assets include geographic location, market and operational risks and the physical characteristics of the assets. EastGroup determined that its real estate property acquisitions in 2023 and the first nine months of 2024 are considered to be acquisitions of groups of similar identifiable assets; therefore, the acquisitions are not considered to be acquisitions of a business. As a result, the Company capitalized acquisition costs related to its 2023 and 2024 acquisitions. The FASB Codification also provides guidance on how to properly determine the allocation of the purchase price among the individual components of both the tangible and intangible assets based on their respective fair values. The allocation to tangible assets (land, building and improvements) is based upon management’s determination of the value of the property as if it were vacant using discounted cash flow models. Land is valued using comparable land sales specific to the applicable market, provided by a third party. The Company determines whether any financing assumed is above or below market based upon comparison to similar financing terms for similar properties. The cost of the properties acquired may be adjusted based on indebtedness assumed from the seller that is determined to be above or below market rates. The purchase price is also allocated among the following categories of intangible assets: the above or below market component of in-place leases and the value of leases in-place at the time of acquisition. The value allocable to the above or below market component of an acquired in-place lease is determined based upon the present value (using a discount rate reflecting the risks associated with the acquired leases) of the difference between (i) the contractual amounts to be paid pursuant to the lease over its remaining term and (ii) management’s estimate of the amounts that would be paid using current market rents over the remaining term of the lease. 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. 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. These intangible assets are included in Other assets |
Earnings Per Share, Policy [Policy Text Block] | The Company applies ASC 260, Earnings Per Share , which requires companies to present basic and diluted earnings per share (“EPS”). Basic EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period. The Company’s basic EPS is calculated by dividing Net Income Attributable to EastGroup Properties, Inc. Common Stockholders by the weighted average number of common shares outstanding. The weighted average number of common shares outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. Outstanding forward equity sale agreements are potentially dilutive securities excluded from the basic EPS calculation until the agreements are settled, shares issued and proceeds received. Although unvested restricted shares are classified as issued and outstanding, they are considered forfeitable until the restrictions lapse and will not be included in the basic EPS calculation until the shares are vested. Diluted EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period and to each share that would have been outstanding assuming the issuance of common shares for all dilutive potential common shares outstanding during the reporting period. The Company calculates diluted EPS by dividing Net Income Attributable to EastGroup Properties, Inc. Common Stockholders |
Share-based Payment Arrangement [Policy Text Block] | EastGroup applies the provisions of ASC 718, Compensation - Stock Compensation, to account for its stock-based compensation plans. ASC 718 requires that the compensation cost relating to share-based payment transactions be recognized in the financial statements and that the cost be measured on the fair value of the equity or liability instruments issued. The cost for market-based awards and awards that only require service are expensed on a straight-line basis over the requisite service periods. The cost for performance-based awards is determined using the graded vesting attribution method which recognizes each separate vesting portion of the award as a separate award on a straight-line basis over the requisite service period. This method accelerates the expensing of the award compared to the straight-line method. For awards with a performance condition, compensation expense is recognized when the performance condition is considered probable of achievement. The total compensation expense for service and performance based awards is based upon the fair market value of the shares on the grant date. The grant date fair value for awards that have been granted and are subject to a future market condition (total shareholder return) are determined using a Monte Carlo simulation pricing model developed to specifically accommodate the unique features of the awards. During the restricted period for awards no longer subject to contingencies, the Company accrues dividends and holds the certificates for the shares; however, the employee can vote the shares. Share certificates and dividends are delivered to the employee as they vest. Forfeitures of awards are recognized as they occur. The Compensation Committee of the Company’s Board of Directors (the “Committee”) approves long-term and annual equity compensation awards for the Company’s executive officers. The vesting periods of the Company’s restricted stock plans vary, as determined by the Committee. Restricted stock is granted to executive officers subject to both continued service and the satisfaction of certain annual performance goals and multi-year market conditions as determined by the Committee. The long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three years and the employee’s continued service as of the vesting dates. The total shareholder return component is subject to bright-line tests that compare the Company’s total shareholder return to the Nareit Equity Index and to the member companies of the Nareit industrial index. The Company begins recognizing expense for these awards based on the grant date fair value of the awards which is determined using a simulation pricing model developed to specifically accommodate the unique features of the award. These market-based awards are expensed on a straight-line basis over the requisite service period (75% vests at the end of the three-year performance period and 25% vests the following year). The long-term awards subject only to continuing employment are expensed on a straight-line basis over the requisite service period (25% vests in each of the following four years). The annual equity compensation awards include components based on certain annual Company performance measures and individual annual performance goals over the upcoming year. The certain Company performance measures for 2024 are: (i) funds from operations (“FFO”) per share, (ii) cash same property net operating income change, (iii) debt-to-EBITDAre ratio, and (iv) fixed charge coverage. The Company begins recognizing expense for its estimate of the shares that could be earned pursuant to these awards on the grant date; the expense is adjusted to estimated performance levels during the performance period and to actual upon the determination of the awards. The shares are expensed using the graded vesting attribution method which recognizes each separate vesting portion of the award as a separate award on a straight-line basis over the requisite service period (34% vests at the end of the one year performance period and 33% vests in each of the following two years). Any shares issued pursuant to the individual annual performance goals are determined by the Committee in its discretion following the performance period. The Company begins recognizing the expense for the shares on the grant date and will expense on a straight-line basis over the remaining service period (34% vests at the end of the one year performance period and 33% vests in each of the following two years). Equity compensation is also awarded to the Company’s non-executive officers and directors, which are subject to service only conditions and expensed on a straight-line basis over the required service period. The total compensation expense is based upon the fair market value of the shares on the grant date. The Committee has adopted an Equity Award Retirement Policy (the “retirement policy”) which allows for accelerated vesting of unvested shares for retirement-eligible employees (defined as employees who meet certain age and years of service requirements). In order to qualify for accelerated vesting upon retirement, the eligible employees must provide required notification under the retirement policy and must retire from the Company. The Company has adjusted its stock-based compensation expense to accelerate the recognition of expense for retirement-eligible employees. |
Fair Value Measurement, Policy [Policy Text Block] | ASC 820, Fair Value Measurement, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also provides guidance for using fair value to measure financial assets and liabilities. The FASB Codification requires disclosure of the level within the fair value hierarchy in which the fair value measurements fall, including measurements using quoted prices in active markets for identical assets or liabilities (Level 1), quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active (Level 2) and significant valuation assumptions that are not readily observable in the market (Level 3). |
Real Estate Properties | REAL ESTATE PROPERTIES EastGroup has one reportable segment – industrial properties, consistent with the Company’s manner of internal reporting, measurement of operating results and allocation of the Company’s resources. The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows (including estimated future expenditures necessary to substantially complete the asset) expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset. During the nine month periods ended September 30, 2024 and 2023, the Company did not identify any impairment charges which should be recorded. Depreciation of buildings and other improvements is computed using the straight-line method over estimated useful lives of generally 40 years for buildings and 3 to 15 years for improvements. Building improvements are capitalized, while maintenance and repair expenses are charged to expense as incurred. Significant renovations and improvements that improve or extend the useful life of the assets are capitalized. Depreciation expense was $40,046,000 and $114,897,000 for the three and nine months ended September 30, 2024, respectively, and $35,031,000 and $103,567,000 for the same periods in 2023. |
Development | Development and value-add properties consists of properties in lease-up, under construction, and prospective development (primarily land). Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use. Properties meeting either of the following two conditions are considered value-add properties: (1) Less than 75% leased as of the acquisition date (or will be less than 75% occupied within one year of the acquisition date based on near term lease roll), or (2) 20% or greater of the gross carrying amount of the property will be spent to redevelop the property. 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 costs) deemed related to such development activities. The internal costs are allocated to specific development projects based on development activity. As the property becomes occupied, depreciation commences on the occupied portion of the building, and costs are capitalized only for the portion of the building that remains vacant. The Company transfers properties from Development and value-add propertie s to Real estate properties as follows: (1) for development properties, at the earlier of 90% occupancy or one year after completion of the shell construction, and (2) for value-add properties, at the earlier of 90% occupancy or one year after acquisition. Upon the earlier of 90% occupancy or one year after completion of the shell construction/value-add acquisition date, capitalization of development costs, including interest expense, property taxes and internal personnel costs, ceases and depreciation commences on the entire property (excluding the land). |
Risks and Uncertainties | RISKS AND UNCERTAINTIES |
New Accounting Pronouncements, Policy | EastGroup has evaluated all ASUs recently released by the FASB through the date the financial statements were issued and determined that the following ASUs apply to the Company. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures |
Derivatives, Policy | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risk, including interest rate, liquidity and credit risk primarily by managing the amount, sources and duration of its debt funding and, to a limited extent, the use of derivative instruments. Specifically, the Company has entered into derivative instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative instruments, described below, are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain of the Company’s borrowings. |
Common Stock Offering | Underwriting commissions and offering costs incurred in connection with common stock offerings and at-the-market equity offering programs have been reflected as a reduction of Additional paid-in capital . Under relevant accounting guidance, sales of common stock under forward equity sale agreements are not deemed to be liabilities, and furthermore, meet the derivatives and hedging guidance scope exception to be accounted for as equity instruments based on the following assessment: (i) none of the agreements’ exercise contingencies were based on observable markets or indices besides those related to the market for our own stock price and operations; and (ii) none of the settlement provisions precluded the agreements from being indexed to our own stock. |
LEASE REVENUE (Tables)
LEASE REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Operating Leases, Income Statement, Lease Revenue [Abstract] | |
Operating Lease, Lease Income [Table Text Block] | The table below presents the components of Income from real estate operations for the three and nine months ended September 30, 2024 and 2023: Three Months Ended Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) Lease income — operating leases $ 121,797 106,683 353,135 311,529 Variable lease income (1) 41,064 37,695 121,133 105,624 Income from real estate operations $ 162,861 144,378 474,268 417,153 (1) Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. |
REAL ESTATE PROPERTIES (Tables)
REAL ESTATE PROPERTIES (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Real Estate Investment Property, Net [Abstract] | |
Schedule of Real Estate Properties | The Company’s Real estate properties and Development and value-add properties at September 30, 2024 and December 31, 2023 were as follows: September 30, December 31, (In thousands) Real estate properties: Land $ 876,198 814,364 Buildings and building improvements 3,562,908 3,336,615 Tenant and other improvements 727,945 684,573 Right of use assets — Ground leases (operating) (1) 17,006 17,996 Development and value-add properties (2) 654,092 639,647 5,838,149 5,493,195 Less accumulated depreciation (1,376,198) (1,273,723) $ 4,461,951 4,219,472 (1) EastGroup applies the principles of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, Leases, and its related Accounting Standards Updates (“ASUs”) to account for its ground leases, which are classified as operating leases. The related operating lease liabilities for ground leases are included in Other liabilities on the Consolidated Balance Sheets. (2) Value-add properties are defined in Note 6. |
REAL ESTATE PROPERTY ACQUISIT_2
REAL ESTATE PROPERTY ACQUISITIONS AND ACQUIRED INTANGIBLES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2024 | Dec. 31, 2023 | |
Asset Acquisition [Abstract] | ||
Real Estate Properties Acquired [Table] | During the nine months ended September 30, 2024, EastGroup acquired the following properties: REAL ESTATE PROPERTIES ACQUIRED IN 2024 Location Size Date Cost (1) (Square feet) (In thousands) Operating properties acquired (2)(3) Spanish Ridge Industrial Park Las Vegas, NV 231,000 01/23/2024 $ 54,859 147 Exchange Raleigh, NC 274,000 05/03/2024 52,945 Hays Commerce Center 3 & 4 Austin, TX 179,000 08/19/2024 35,781 Total operating property acquisitions 684,000 $ 143,585 (1) Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs. (2) Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets. (3) Excludes acquired development land as discussed below. | During 2023, EastGroup acquired the following properties: REAL ESTATE PROPERTIES ACQUIRED IN 2023 Location Size Date Cost (1) (Square feet) (In thousands) Operating properties acquired (2)(3) Craig Corporate Center Las Vegas, NV 156,000 04/18/2023 $ 34,365 Blue Diamond Business Park Las Vegas, NV 254,000 09/05/2023 52,973 McKinney Logistics Center Dallas, TX 193,000 10/02/2023 25,739 Park at Myatt Nashville, TN 171,000 11/03/2023 30,793 Pelzer Point Commerce Center 1 Greenville, SC 213,000 12/21/2023 21,246 Total operating property acquisitions 987,000 $ 165,116 (1) Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs. (2) Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets. (3) |
Acquired Assets and Assumed Liabilities [Table] | The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which were acquired during the nine months ended September 30, 2024. ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2024 Cost (In thousands) Land $ 34,778 Buildings and building improvements 96,218 Tenant and other improvements 6,371 Total real estate properties acquired 137,367 In-place lease intangibles (1) 8,659 Above market lease intangibles (1) 121 Below market lease intangibles (2) (2,562) Total assets acquired, net of liabilities assumed $ 143,585 (1) In-place lease intangibles and above market lease intangibles are each included in Other assets on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. (2) Below market lease intangibles are included in Other liabilities on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. | The following table summarizes the allocation of the total consideration for the acquired assets and assumed liabilities in connection with the acquisitions identified in the table above which were acquired during the year ended December 31, 2023. ACQUIRED ASSETS AND ASSUMED LIABILITIES IN 2023 Cost (In thousands) Land $ 44,676 Buildings and building improvements 111,082 Tenant and other improvements 4,346 Total real estate properties acquired 160,104 In-place lease intangibles (1) 7,242 Below market lease intangibles (2) (2,230) Total assets acquired, net of liabilities assumed $ 165,116 (1) In-place lease intangibles and above market lease intangibles are each included in Other assets on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. (2) |
REAL ESTATE SOLD AND HELD FOR_2
REAL ESTATE SOLD AND HELD FOR SALE DISCONTINUED OPERATIONS (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | A summary of Gain on sales of real estate investments for the nine months ended September 30, 2024 and the year ended December 31, 2023 follows: REAL ESTATE PROPERTIES SOLD Location Size Date Sold Net Sales Price Basis Recognized Gain (Square feet) (In thousands) 2024 Interchange Business Park and Metro Airport Commerce Center Jackson, MS 159,000 03/05/2024 $ 13,614 4,863 8,751 2023 World Houston 23 Houston, TX 125,000 03/31/2023 $ 9,327 4,518 4,809 Ettie Business Center San Francisco, CA 29,000 11/20/2023 11,638 8,845 2,793 Los Angeles Corporate Center Los Angeles, CA 77,000 12/29/2023 16,006 5,643 10,363 Total for 2023 231,000 $ 36,971 19,006 17,965 |
OTHER ASSETS (Tables)
OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Other Assets [Abstract] | |
Other Assets | A summary of the Company’s Other assets follows: September 30, December 31, (In thousands) Leasing costs (principally commissions) $ 168,476 158,741 Accumulated amortization of leasing costs (60,762) (57,646) Leasing costs (principally commissions), net of accumulated amortization 107,714 101,095 Acquired in-place lease intangibles 43,286 39,600 Accumulated amortization of acquired in-place lease intangibles (20,251) (19,395) Acquired in-place lease intangibles, net of accumulated amortization 23,035 20,205 Acquired above market lease intangibles 582 482 Accumulated amortization of acquired above market lease intangibles (370) (318) Acquired above market lease intangibles, net of accumulated amortization 212 164 Straight-line rents receivable 80,607 72,360 Accounts receivable 6,640 9,984 Interest rate swap assets 17,339 27,366 Right of use assets — Office leases (operating) 2,374 2,828 Goodwill 990 990 Escrow deposits and prepaid costs for pending transactions 7,886 745 Prepaid insurance 10,117 7,208 Receivable for insurance proceeds 3,334 1,425 Prepaid expenses and other assets 7,740 7,569 Total Other assets $ 267,988 251,939 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long term debt, by type [Table Text Block] | The Company’s debt is detailed below: September 30, December 31, (In thousands) Unsecured bank credit facilities — variable rate, carrying amount $ — — Unamortized debt issuance costs (3,848) (1,520) Unsecured bank credit facilities, net of debt issuance costs (3,848) (1,520) Unsecured debt — fixed rate, carrying amount (1) 1,630,000 1,680,000 Unamortized debt issuance costs (2,982) (3,653) Unsecured debt, net of debt issuance costs 1,627,018 1,676,347 Total unsecured debt, net of debt issuance costs $ 1,623,170 1,674,827 (1) These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps. |
Schedule of Maturities of Long-term Debt [Table Text Block] | 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 September 30, 2024, are as follows: MATURITY DATES Principal Payments Maturing (In thousands) 2024 — Remainder of year $ 120,000 2025 145,000 2026 140,000 2027 175,000 2028 160,000 2029 and beyond 890,000 Total $ 1,630,000 |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Payables and Accruals [Abstract] | |
Summary of Accounts Payable and Accrued Expenses | A summary of the Company’s Accounts payable and accrued expenses follows: September 30, December 31, (In thousands) Property taxes payable $ 71,656 9,508 Development costs payable 20,659 29,487 Retainage payable 10,870 14,992 Real estate improvements and capitalized leasing costs payable 5,596 5,275 Interest payable 14,185 8,493 Dividends payable 70,275 62,393 Other payables and accrued expenses 12,079 16,189 Total Accounts payable and accrued expenses $ 205,320 146,337 |
OTHER LIABILITIES (Tables)
OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Other Liabilities Disclosure [Abstract] | |
Summary of other liabilities | A summary of the Company’s Other liabilities follows: September 30, December 31, (In thousands) Security deposits $ 40,765 37,102 Prepaid rent and other deferred income 19,748 20,070 Operating lease liabilities — Ground leases 17,917 18,758 Operating lease liabilities — Office leases 2,420 2,882 Acquired below market lease intangibles 12,953 11,451 Accumulated amortization of below market lease intangibles (5,786) (5,006) Acquired below market lease intangibles, net of accumulated amortization 7,167 6,445 Interest rate swap liabilities 3,399 2,478 Other liabilities 1,468 1,680 Total Other liabilities $ 92,884 89,415 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of Accumulated other comprehensive income are presented in the Company’s Consolidated Statements of Changes in Equity and are summarized below. See Note 14 for information regarding the Company’s interest rate swaps. Three Months Ended Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) ACCUMULATED OTHER COMPREHENSIVE INCOME: Balance at beginning of period $ 29,687 36,311 24,888 36,371 Other comprehensive income (loss) — interest rate swaps (15,747) 5,777 (10,948) 5,717 Balance at end of period $ 13,940 42,088 13,940 42,088 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
Schedule of Derivative Instruments [Table Text Block] | As of September 30, 2024 and December 31, 2023, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk: NOTIONAL VALUE OF INTEREST RATE DERIVATIVES September 30, December 31, (In thousands) Interest Rate Swap $ 100,000 100,000 Interest Rate Swap 100,000 100,000 Interest Rate Swap 50,000 50,000 Interest Rate Swap 100,000 100,000 Interest Rate Swap 75,000 75,000 Interest Rate Swap — 50,000 Interest Rate Swap 100,000 100,000 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023. See Note 18 for additional information on the fair value of the Company’s interest rate swaps. Derivatives As of September 30, 2024 Derivatives As of December 31, 2023 DERIVATIVES DESIGNATED AS CASH FLOW HEDGES Balance Sheet Location Fair Value Balance Sheet Location Fair Value (In thousands) Interest rate swap assets Other assets $ 17,339 Other assets $ 27,366 Interest rate swap liabilities Other liabilities 3,399 Other liabilities 2,478 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Table Text Block] | The table below presents the effect of the Company’s derivative financial instruments (interest rate swaps) on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2024 and 2023: Three Months Ended Nine Months Ended September 30, DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS 2024 2023 2024 2023 (In thousands) Amount of income (loss) recognized in Other comprehensive income (loss) on derivatives $ (11,094) 10,463 3,180 18,719 Amount of (income) reclassified from Accumulated other comprehensive income into Interest expense (4,653) (4,686) (14,128) (13,002) |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Reconciliation of the numerators and denominators in the basic and diluted EPS computations is as follows: Three Months Ended Nine Months Ended September 30, 2024 2023 2024 2023 (In thousands) BASIC EPS COMPUTATION FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Numerator — net income attributable to common stockholders $ 55,180 48,896 169,111 137,036 Denominator — weighted average shares outstanding — Basic 48,864 45,658 48,324 44,688 DILUTED EPS COMPUTATION FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS Numerator — net income attributable to common stockholders $ 55,180 48,896 169,111 137,036 Denominator: Weighted average shares outstanding — Basic 48,864 45,658 48,324 44,688 Effect of dilutive securities 135 130 111 94 Weighted average shares outstanding — Diluted 48,999 45,788 48,435 44,782 |
EQUITY OFFERINGS (Tables)
EQUITY OFFERINGS (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Equity [Abstract] | |
Direct Common Stock Issuance Activity | Direct Common Stock Issuance Activity The following table presents the Company’s common stock issuance activity sold directly through sales agents pursuant to the Company's ATM programs during the nine months ended September 30, 2024 and the year ended December 31, 2023: Common Stock (1) Weighted Average Price Gross Proceeds Net Proceeds (In shares) (Per share) (In thousands) (In thousands) Three months ended March 31, 2024 — $ — $ — $ — Three months ended June 30, 2024 218,929 168.62 36,916 36,547 Three months ended September 30, 2024 239,750 179.74 43,093 42,663 Nine months ended September 30, 2024 458,679 $ 174.43 $ 80,009 $ 79,210 Twelve months ended December 31, 2023 4,094,896 $ 170.77 $ 699,304 $ 692,312 (1) Excludes shares of common stock sold on a forward basis as described below. |
Forward Equity Offering Activity | Forward Equity Offering Activity The following table presents the Company’s forward equity offering activity during the three and nine months ended September 30, 2024: Common Stock Weighted Average Price Gross Proceeds (In shares) (Per share) (In thousands) Forward Sale Agreements Outstanding at December 31, 2023 406,041 $ 183.92 $ 74,679 Forward sale agreements settled — shares issued and proceeds received (1) (272,342) 183.59 (50,000) New forward sale agreements (2) 286,671 181.95 52,160 Forward Sale Agreements Outstanding at March 31, 2024 420,370 $ 182.79 $ 76,839 Forward sale agreements settled — shares issued and proceeds received (3) (420,370) 182.79 (76,839) New forward sale agreements (2) 600,053 166.65 100,000 Forward Sale Agreements Outstanding at June 30, 2024 600,053 $ 166.65 $ 100,000 Forward sale agreements settled — shares issued and proceeds received (4) (300,502) 166.39 (50,000) New forward sale agreements (2) 1,099,612 185.80 204,306 Forward Sale Agreements Outstanding at September 30, 2024 1,399,163 $ 181.76 $ 254,306 (1) EastGroup settled outstanding forward equity sale agreements by issuing 272,342 shares of common stock in exchange for net proceeds of approximately $49,364,000 . (2) The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time it entered into forward sale agreements. (3) EastGroup settled outstanding forward equity sale agreements by issuing 420,370 shares of common stock in exchange for net proceeds of approximately $76,200,000 . (4) EastGroup settled outstanding forward equity sale agreements by issuing 300,502 shares of common stock in exchange for net proceeds of approximately $49,582,000 . |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of total shares granted, forfeited and delivered | Following is a summary of the total restricted shares granted, forfeited and delivered (vested) to participants with the related weighted average grant date fair value share prices. Of the shares that vested in the nine months ended September 30, 2024, the Company withheld 33,381 shares to satisfy the tax obligations for those participants who elected this option as permitted under the applicable equity plan. As of the grant dates, the fair value of shares that were granted during the nine months ended September 30, 2024 was $12,081,000. As of the vesting dates, the aggregate fair value of shares that vested during the nine months ended September 30, 2024 was $15,004,000. Award Activity: Three Months Ended Nine Months Ended September 30, 2024 Shares Weighted Average Grant Date Fair Value Weighted Average Grant Date Fair Value Unvested at beginning of period 76,005 $ 157.40 84,564 $ 153.78 Granted (1) (2) 13,220 179.97 89,348 135.21 Forfeited — — (2,545) 156.45 Vested (52) 120.39 (82,194) 125.94 Unvested at end of period 89,173 $ 160.76 89,173 $ 160.76 (1) Includes shares granted in prior years for which performance conditions have been satisfied and the number of shares have been determined. |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended |
Sep. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Carrying amounts and fair value of financial instruments | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments in accordance with ASC 820 at September 30, 2024 and December 31, 2023. September 30, 2024 December 31, 2023 Carrying Amount (1) Fair Value Carrying Amount (1) Fair Value (In thousands) Financial Assets: Cash and cash equivalents $ 16,957 16,957 40,263 40,263 Interest rate swap assets 17,339 17,339 27,366 27,366 Financial Liabilities: Unsecured debt (2) 1,630,000 1,538,223 1,680,000 1,548,655 Interest rate swap liabilities 3,399 3,399 2,478 2,478 (1) Carrying amounts shown in the table are included on the Consolidated Balance Sheets under the indicated captions, except as explained below. (2) Carrying amounts and fair values shown in the table exclude debt issuance costs (see Note 10 for additional information). |
PRINCIPLES OF CONSOLIDATION (De
PRINCIPLES OF CONSOLIDATION (Details) | Sep. 30, 2024 a |
Miramar Land [Member] | |
Controlling interest joint ventures and equity method investees [Line Items] | |
Acres of real estate investment property | 6.5 |
Subsidiary, Ownership Percentage, Parent | 95% |
Arista 36 Business Park Land | |
Controlling interest joint ventures and equity method investees [Line Items] | |
Acres of real estate investment property | 29.3 |
Subsidiary, Ownership Percentage, Parent | 99.50% |
Industry Distribution Center II - undivided tenant-in-common interest [Member] | |
Controlling interest joint ventures and equity method investees [Line Items] | |
Equity method investment, ownership percentage | 50% |
LEASE REVENUE (Details)
LEASE REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | ||
Operating Leases, Income Statement, Lease Revenue [Abstract] | |||||
Lease income - operating leases | $ 121,797 | $ 106,683 | $ 353,135 | $ 311,529 | |
Variable lease income | [1] | 41,064 | 37,695 | 121,133 | 105,624 |
Income from real estate operations | $ 162,861 | $ 144,378 | $ 474,268 | $ 417,153 | |
[1] Primarily includes tenant reimbursements for real estate taxes, insurance and common area maintenance. |
REAL ESTATE PROPERTIES (Details
REAL ESTATE PROPERTIES (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2024 USD ($) Integer | Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | ||
Real Estate Properties [Line Items] | ||||||
Number of Reporting Units | Integer | 1 | |||||
Depreciation Expense | $ 40,046 | $ 35,031 | $ 114,897 | $ 103,567 | ||
Real Estate Properties | ||||||
Land | 876,198 | 876,198 | $ 814,364 | |||
Building and building improvements | 3,562,908 | 3,562,908 | 3,336,615 | |||
Tenant and other improvements | 727,945 | 727,945 | 684,573 | |||
Right of use assets - Ground leases (operating) | [1] | 17,006 | 17,006 | 17,996 | ||
Development and value-add properties | [2] | 654,092 | 654,092 | 639,647 | ||
Real estate, development and value-add properties | 5,838,149 | 5,838,149 | 5,493,195 | |||
Less accumulated depreciation | (1,376,198) | (1,376,198) | (1,273,723) | |||
Real estate, net | $ 4,461,951 | $ 4,461,951 | $ 4,219,472 | |||
Building [Member] | ||||||
Real Estate Properties [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 40 years | 40 years | ||||
Minimum [Member] | Building and Building Improvements | ||||||
Real Estate Properties [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 3 years | 3 years | ||||
Maximum [Member] | Building and Building Improvements | ||||||
Real Estate Properties [Line Items] | ||||||
Property, Plant and Equipment, Useful Life | 15 years | 15 years | ||||
[1]EastGroup applies the principles of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 842, Leases, and its related Accounting Standards Updates (“ASUs”) to account for its ground leases, which are classified as operating leases. The related operating lease liabilities for ground leases are included in Other liabilities on the Consolidated Balance Sheets.[2] Value-add properties are defined in Note 6. |
REAL ESTATE PROPERTY ACQUISIT_3
REAL ESTATE PROPERTY ACQUISITIONS AND ACQUIRED INTANGIBLES (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2024 USD ($) ft² | Sep. 30, 2023 USD ($) | Sep. 30, 2024 USD ($) ft² | Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) ft² | ||
Asset Acquisition [Line Items] | ||||||
Amortization expense for lease intangibles | $ 2,009,000 | $ 1,895,000 | $ 5,828,000 | $ 6,031,000 | ||
Amortization of above and below market leases | 612,000 | $ 560,000 | 1,765,000 | $ 1,855,000 | ||
Land | 876,198,000 | 876,198,000 | $ 814,364,000 | |||
Building and building improvements | 3,562,908,000 | 3,562,908,000 | 3,336,615,000 | |||
Tenant and other improvements | 727,945,000 | 727,945,000 | 684,573,000 | |||
In-place lease intangibles | 43,286,000 | 43,286,000 | 39,600,000 | |||
Above market lease intangibles | 582,000 | 582,000 | 482,000 | |||
Below market lease intangibles | 12,953,000 | 12,953,000 | 11,451,000 | |||
2024 Acquisitions | ||||||
Asset Acquisition [Line Items] | ||||||
Land | 34,778,000 | 34,778,000 | ||||
Building and building improvements | 96,218,000 | 96,218,000 | ||||
Tenant and other improvements | 6,371,000 | 6,371,000 | ||||
Total real estate properties acquired | 137,367,000 | 137,367,000 | ||||
In-place lease intangibles | [1] | 8,659,000 | 8,659,000 | |||
Above market lease intangibles | [1] | 121,000 | 121,000 | |||
Below market lease intangibles | [2] | (2,562,000) | (2,562,000) | |||
Assets acquired, net of liabilities assumed | $ 143,585,000 | $ 143,585,000 | ||||
Weighted average remaining lease term of acquired properties | 5 years 8 months 12 days | 5 years 8 months 12 days | ||||
2024 Operating Property Acquisitions | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 684,000 | 684,000 | |||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 143,585,000 | ||||
2024 Operating Property Acquisitions | Spanish Ridge Industrial Park | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 231,000 | 231,000 | |||
Date Acquired | [3],[4] | Jan. 23, 2024 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 54,859,000 | ||||
2024 Operating Property Acquisitions | 147 Exchange | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 274,000 | 274,000 | |||
Date Acquired | [3],[4] | May 03, 2024 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 52,945,000 | ||||
2024 Operating Property Acquisitions | Hays Commerce Center 3 & 4 | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 179,000 | 179,000 | |||
Date Acquired | [3],[4] | Aug. 19, 2024 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 35,781,000 | ||||
2024 development land acquisitions | ||||||
Asset Acquisition [Line Items] | ||||||
Acres of real estate investment property | ft² | 34.3 | 34.3 | ||||
Payments to Acquire Land | $ 3,302,000 | |||||
2023 Acquisitions | ||||||
Asset Acquisition [Line Items] | ||||||
Land | 44,676,000 | |||||
Building and building improvements | 111,082,000 | |||||
Tenant and other improvements | 4,346,000 | |||||
Total real estate properties acquired | 160,104,000 | |||||
In-place lease intangibles | [1] | 7,242,000 | ||||
Below market lease intangibles | [2] | (2,230,000) | ||||
Assets acquired, net of liabilities assumed | $ 165,116,000 | |||||
Weighted average remaining lease term of acquired properties | 8 years | |||||
2023 Operating Property Acquisitions | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 987,000 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 165,116,000 | ||||
2023 Operating Property Acquisitions | Craig Corporate Center | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 156,000 | ||||
Date Acquired | [3],[4] | Apr. 18, 2023 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 34,365,000 | ||||
2023 Operating Property Acquisitions | Blue Diamond Business Park | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 254,000 | ||||
Date Acquired | [3],[4] | Sep. 05, 2023 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 52,973,000 | ||||
2023 Operating Property Acquisitions | McKinney Logistics Center | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 193,000 | ||||
Date Acquired | [3],[4] | Oct. 02, 2023 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 25,739,000 | ||||
2023 Operating Property Acquisitions | Park at Myatt | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 171,000 | ||||
Date Acquired | [3],[4] | Nov. 03, 2023 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 30,793,000 | ||||
2023 Operating Property Acquisitions | Pelzer Point Commerce Center 1 | ||||||
Asset Acquisition [Line Items] | ||||||
Size (square feet) | ft² | [3],[4] | 213,000 | ||||
Date Acquired | [3],[4] | Dec. 21, 2023 | ||||
Asset Acquisition, Consideration Transferred | [3],[4],[5] | $ 21,246,000 | ||||
2023 development land acquisitions | ||||||
Asset Acquisition [Line Items] | ||||||
Acres of real estate investment property | ft² | 328.3 | |||||
Payments to Acquire Land | $ 70,664,000 | |||||
[1] In-place lease intangibles and above market lease intangibles are each included in Other assets on the Consolidated Balance Sheets. These costs are amortized over the remaining terms of the associated leases in place at the time of acquisition. Excludes acquired development land as discussed below. Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets. Cost is calculated in accordance with FASB ASC 805, Business Combinations, and represents the sum of the purchase price, closing costs and capitalized acquisition costs. |
REAL ESTATE SOLD AND HELD FOR_3
REAL ESTATE SOLD AND HELD FOR SALE DISCONTINUED OPERATIONS (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2024 USD ($) a ft² | Sep. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) ft² a | |
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Real estate, net | $ 4,461,951 | $ 4,219,472 | |
Recognized gain | $ 222 | $ 446 | |
2023 dispositions | |||
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Size (square feet) | ft² | 231,000 | ||
Net sales price | $ 36,971 | ||
Real estate, net | 19,006 | ||
Recognized gain | $ 17,965 | ||
World Houston 23 | |||
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Size (square feet) | ft² | 125,000 | ||
Date sold | Mar. 31, 2023 | ||
Net sales price | $ 9,327 | ||
Real estate, net | 4,518 | ||
Recognized gain | $ 4,809 | ||
2023 development land dispositions | |||
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Acres of real estate investment property | a | 11.9 | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 4,750 | ||
Gain on sale of non-operating real estate | $ 446 | ||
Ettie Business Center | |||
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Size (square feet) | ft² | 29,000 | ||
Date sold | Nov. 20, 2023 | ||
Net sales price | $ 11,638 | ||
Real estate, net | 8,845 | ||
Recognized gain | $ 2,793 | ||
Los Angeles Corporate Center | |||
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Size (square feet) | ft² | 77,000 | ||
Date sold | Dec. 29, 2023 | ||
Net sales price | $ 16,006 | ||
Real estate, net | 5,643 | ||
Recognized gain | $ 10,363 | ||
Interchange Business Park and Metro Airport Commerce Center [Member] | |||
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Size (square feet) | ft² | 159,000 | ||
Date sold | Mar. 05, 2024 | ||
Net sales price | $ 13,614 | ||
Real estate, net | 4,863 | ||
Recognized gain | $ 8,751 | ||
2024 development land dispositions | |||
Real Estate Properties Sold and Held for Sale [Line Items] | |||
Acres of real estate investment property | a | 3.9 | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 4,000 | ||
Gain on sale of non-operating real estate | $ 222 |
OTHER ASSETS (Details)
OTHER ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Other Assets [Abstract] | ||
Leasing costs (principally commissions) | $ 168,476 | $ 158,741 |
Accumulated amortization of leasing costs | (60,762) | (57,646) |
Leasing costs (principally commissions), net of accumulated amortization | 107,714 | 101,095 |
Acquired in-place lease intangibles | 43,286 | 39,600 |
Accumulated amortization of acquired in-place lease intangibles | (20,251) | (19,395) |
Acquired in-place lease intangibles, net of accumulated amortization | 23,035 | 20,205 |
Above market lease intangibles | 582 | 482 |
Accumulated amortization of acquired above market lease intangibles | (370) | (318) |
Acquired above market lease intangibles, net of accumulated amortization | 212 | 164 |
Straight-line rents receivable | 80,607 | 72,360 |
Accounts receivable | 6,640 | 9,984 |
Interest rate swap assets | 17,339 | 27,366 |
Right of use assets - Office leases (operating) | 2,374 | 2,828 |
Goodwill | 990 | 990 |
Escrow deposits and prepaid costs for pending transactions | 7,886 | 745 |
Prepaid Insurance | 10,117 | 7,208 |
Receivable for insurance proceeds | 3,334 | 1,425 |
Prepaid expenses and other assets | 7,740 | 7,569 |
Total Other Assets | $ 267,988 | $ 251,939 |
DEBT (Details)
DEBT (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | ||
Unsecured Debt [Line Items] | |||
Long-Term Debt | $ 1,623,170 | $ 1,674,827 | |
Line of Credit [Member} | |||
Unsecured Debt [Line Items] | |||
Long-term debt, gross | 0 | 0 | |
Unamortized debt issuance costs | (3,848) | (1,520) | |
Long-Term Debt | (3,848) | (1,520) | |
Payments of principal over future years [Abstract] | |||
Long-Term Debt, total | 0 | 0 | |
Unsecured Debt [Member] | |||
Unsecured Debt [Line Items] | |||
Long-term debt, gross | [1] | 1,630,000 | 1,680,000 |
Unamortized debt issuance costs | (2,982) | (3,653) | |
Long-Term Debt | 1,627,018 | 1,676,347 | |
Payments of principal over future years [Abstract] | |||
Long-Term Debt, total | [1] | $ 1,630,000 | $ 1,680,000 |
Term loan repaid in Q3 2024 | |||
Unsecured Debt [Line Items] | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.08% | ||
Debt Instrument, Face Amount | $ 50,000 | ||
Unsecured Debt [Member] | |||
Unsecured Debt [Line Items] | |||
Long-term debt, gross | 1,630,000 | ||
Payments of principal over future years [Abstract] | |||
2024 - Remainder of year | 120,000 | ||
2025 | 145,000 | ||
2026 | 140,000 | ||
2027 | 175,000 | ||
2028 | 160,000 | ||
2029 and beyond | 890,000 | ||
Long-Term Debt, total | 1,630,000 | ||
Revolving Credit Facility | |||
Unsecured Debt [Line Items] | |||
Long-term debt, gross | $ 0 | ||
Line of Credit Facility, basis spread on variable rate (in basis points) | 76.5 | ||
Line of Credit Facility, Interest Rate at Period End | 5.711% | ||
Line of Credit Facility, Borrowing Capacity | $ 625,000 | ||
Line of credit, facility fee (in basis points) | 15 | ||
Debt Instrument, Maturity Date, Description | July 31, 2028 | ||
Extension option on credit facility | two six-month extensions | ||
Line of credit facility, accordion | $ 625,000 | ||
Letters of Credit Outstanding, Amount | 2,655 | ||
Payments of principal over future years [Abstract] | |||
Long-Term Debt, total | 0 | ||
Line of Credit [Member} | |||
Unsecured Debt [Line Items] | |||
Long-term debt, gross | $ 0 | ||
Line of Credit Facility, basis spread on variable rate (in basis points) | 77.5 | ||
Line of Credit Facility, Interest Rate at Period End | 5.835% | ||
Line of Credit Facility, Borrowing Capacity | $ 50,000 | ||
Line of credit, facility fee (in basis points) | 15 | ||
Debt Instrument, Maturity Date, Description | July 31, 2028 | ||
Extension option on credit facility | two six-month extensions | ||
Debt Instrument, Covenant Description | Although the Company’s current credit rating is Baa2, given the strength of the Company’s key credit metrics, initial pricing for the credit facilities is based on the BBB+/Baa1 credit ratings level. This favorable pricing level will be retained provided that the Company’s consolidated leverage ratio, as defined in the applicable agreements, remains less than 32.5% | ||
Payments of principal over future years [Abstract] | |||
Long-Term Debt, total | $ 0 | ||
[1] These loans have a fixed interest rate or an effectively fixed interest rate due to interest rate swaps. |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Accounts Payable and Accrued Expenses [Abstract] | ||
Property taxes payable | $ 71,656 | $ 9,508 |
Development costs payable | 20,659 | 29,487 |
Retainage payable | 10,870 | 14,992 |
Real estate improvements and capitalized leasing costs payable | 5,596 | 5,275 |
Interest payable | 14,185 | 8,493 |
Dividends payable | 70,275 | 62,393 |
Other payables and accrued expenses | 12,079 | 16,189 |
Total accounts payable and accrued expenses | $ 205,320 | $ 146,337 |
OTHER LIABILITIES (Details)
OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 |
Other Liabilities, Unclassified [Abstract] | ||
Security deposits | $ 40,765 | $ 37,102 |
Prepaid rent and other deferred income | 19,748 | 20,070 |
Operating lease liabilities - Ground leases | 17,917 | 18,758 |
Operating lease liabilities - Office leases | 2,420 | 2,882 |
Below market lease intangibles | 12,953 | 11,451 |
Accumulated amortization of acquired below market lease intangibles | (5,786) | (5,006) |
Acquired below market lease intangibles, net of accumulated amortization | 7,167 | 6,445 |
Interest rate swap liabilities | 3,399 | 2,478 |
Other liabilities | 1,468 | 1,680 |
Total Other Liabilities | $ 92,884 | $ 89,415 |
COMPREHENSIVE INCOME (Details)
COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
Accumulated Comprehensive Income, Period Increase (Decrease) | ||||
Balance at Beginning of Period | $ 29,687 | $ 36,311 | $ 24,888 | $ 36,371 |
Other comprehensive income (loss) - interest rate swaps | (15,747) | 5,777 | (10,948) | 5,717 |
Balance at End of Period | $ 13,940 | $ 42,088 | $ 13,940 | $ 42,088 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||||
Interest Rate Cash Flow Hedge Assets at Fair Value | $ 17,339,000 | $ 17,339,000 | $ 27,366,000 | ||
Interest rate cash flow hedge liabilities at fair value | 3,399,000 | 3,399,000 | 2,478,000 | ||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | 8,810,000 | ||||
Other comprehensive income (loss) - interest rate swaps | (11,094,000) | $ 10,463,000 | 3,180,000 | $ 18,719,000 | |
Amount of (income) loss reclassified from Accumulated other comprehensive income into interest expense | (4,653,000) | $ (4,686,000) | (14,128,000) | $ (13,002,000) | |
Interest Rate Swap [Member] | Other Assets [Member] | |||||
Derivative [Line Items] | |||||
Interest Rate Cash Flow Hedge Assets at Fair Value | 17,339,000 | 17,339,000 | 27,366,000 | ||
Interest Rate Swap [Member] | Other Liabilities [Member] | |||||
Derivative [Line Items] | |||||
Interest rate cash flow hedge liabilities at fair value | 3,399,000 | 3,399,000 | 2,478,000 | ||
Interest Rate Swap [Member] | $100 million interest rate swap (2019) [Domain] | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | 100,000,000 | 100,000,000 | 100,000,000 | ||
Interest Rate Swap [Member] | $100 million interest rate swap (2020) [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | 100,000,000 | 100,000,000 | 100,000,000 | ||
Interest Rate Swap [Member] | $50 million interest rate swap executed in 2021 | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | 50,000,000 | 50,000,000 | 50,000,000 | ||
Interest Rate Swap [Member] | $100 million interest rate swap executed in 2022 | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | 100,000,000 | 100,000,000 | 100,000,000 | ||
Interest Rate Swap [Member] | $75 million interest rate swap executed in 2022 | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | 75,000,000 | 75,000,000 | 75,000,000 | ||
Interest Rate Swap [Member] | $50 million interest rate swap executed in 2022 | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | 0 | 0 | 50,000,000 | ||
Interest Rate Swap [Member] | $100 million interest rate swap executed in November 2022 | |||||
Derivative [Line Items] | |||||
Notional Amount of Interest Rate Derivatives | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | |
BASIC EPS COMPUTATION FOR NET INCOME AVAILABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS [Abstract] | ||||
Net income attributable to common stockholders | $ 55,180 | $ 48,896 | $ 169,111 | $ 137,036 |
Weighted average shares outstanding (in shares) | 48,864 | 45,658 | 48,324 | 44,688 |
DILUTED EPS COMPUTATION FOR NET INCOME ATTRIBUTABLE TO EASTGROUP PROPERTIES, INC. COMMON STOCKHOLDERS | ||||
Net Income Attributable to Common Stockholders | $ 55,180 | $ 48,896 | $ 169,111 | $ 137,036 |
Weighted average shares outstanding (in shares) | 48,864 | 45,658 | 48,324 | 44,688 |
Effect of dilutive securities | 135 | 130 | 111 | 94 |
Weighted average diluted shares outstanding (in shares) | 48,999 | 45,788 | 48,435 | 44,782 |
EQUITY OFFERINGS (Details)
EQUITY OFFERINGS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2024 | Jun. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2024 | Dec. 31, 2023 | |||||
Equity Offerings [Line Items] | ||||||||||||
Issuance of shares of common stock | 540,252 | 639,299 | 272,342 | 953,070 | 1,065,678 | 652,909 | ||||||
Forward Equity Offering Activity [Roll Forward] | ||||||||||||
Forward Sale Agreements Outstanding | 1,399,163 | 600,053 | 420,370 | 1,399,163 | 406,041 | |||||||
Forward Sale Agreements Outstanding, price per share | $ 181.76 | $ 166.65 | $ 182.79 | $ 181.76 | $ 183.92 | |||||||
Forward Sale Agreements Outstanding, value | $ 254,306 | $ 100,000 | $ 76,839 | $ 254,306 | $ 74,679 | |||||||
Forward sale agreements settled, shares | (300,502) | [1] | (420,370) | [2] | (272,342) | [3] | ||||||
Forward sale agreements settled, price per share | $ 166.39 | [1] | $ 182.79 | [2] | $ 183.59 | [3] | ||||||
Forward sale agreements settled, gross proceeds | $ (50,000) | [1] | $ (76,839) | [2] | $ (50,000) | [3] | ||||||
Forward sale agreements settled, net proceeds | $ 49,582 | $ 76,200 | $ 49,364 | |||||||||
New forward sale agreements, shares | [4] | 1,099,612 | 600,053 | 286,671 | ||||||||
New forward sale agreements, price per share | [4] | $ 185.80 | $ 166.65 | $ 181.95 | ||||||||
New forward sale agreements, value | [4] | $ 204,306 | $ 100,000 | $ 52,160 | ||||||||
ATM Program - December 2022 | ||||||||||||
Equity Offerings [Line Items] | ||||||||||||
At-the-market program, maximum aggregate gross sales price | 750,000 | |||||||||||
Gross Proceeds from Issuance of Common Stock | $ 464,305 | |||||||||||
ATM Program - October 2023 | ||||||||||||
Equity Offerings [Line Items] | ||||||||||||
At-the-market program, maximum aggregate gross sales price | $ 750,000 | |||||||||||
Direct common stock issuances | ||||||||||||
Equity Offerings [Line Items] | ||||||||||||
Issuance of shares of common stock | [5] | 239,750 | 218,929 | 0 | 458,679 | 4,094,896 | ||||||
Sale of stock, weighted average price per share | $ 179.74 | $ 168.62 | $ 0 | $ 174.43 | $ 170.77 | |||||||
Gross Proceeds from Issuance of Common Stock | $ 43,093 | $ 36,916 | $ 0 | $ 80,009 | $ 699,304 | |||||||
Net proceeds from issuance of common stock | $ 42,663 | $ 36,547 | $ 0 | $ 79,210 | $ 692,312 | |||||||
[1]EastGroup settled outstanding forward equity sale agreements by issuing 300,502 shares of common stock in exchange for net proceeds of approximately $49,582,000 $76,200,000 . $49,364,000 . |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2024 | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2024 | Sep. 30, 2023 | Jun. 30, 2024 | Dec. 31, 2023 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Payment Arrangement, Expense | $ 8,277,000 | $ 6,835,000 | |||||||
Shares withheld for tax obligations | 33,381 | 31,254 | |||||||
Award Recipient Type Director [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Payment Arrangement, Expense | $ 211,000 | $ 174,000 | 554,000 | 591,000 | |||||
Restricted stock [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Fair value of shares vested as of the vesting date | $ 15,004,000 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other Than Options, Potential Grants in Future Period (minimum) | 0 | ||||||||
Share-Based Compensation Arrangement by Share-Based Payment Award, Equity Instruments Other Than Options, Potential Grants in Future Period (maximum) | 135,501 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 89,173 | 89,173 | 76,005 | 84,564 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value (in dollars per share) | $ 160.76 | $ 160.76 | $ 157.40 | $ 153.78 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | [1],[2] | 13,220 | 89,348 | ||||||
Grant date fair value of shares issued (in dollars per share) | [1],[2] | $ 179.97 | $ 135.21 | ||||||
Forfeited (in shares) | 0 | (2,545) | |||||||
Forfeited (per share) | $ 0 | $ 156.45 | |||||||
Vested (in shares) | (52) | (82,194) | |||||||
Vested (per share) | $ 120.39 | $ 125.94 | |||||||
Fair value of shares granted, as of the grant dates | $ 12,081,000 | ||||||||
Restricted stock [Member] | Award Recipient Type Employee [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share-based Payment Arrangement, Expense | $ 2,801,000 | 2,593,000 | 9,249,000 | 8,424,000 | |||||
Stock-based compensation costs capitalized as development costs | $ 486,000 | $ 886,000 | $ 1,526,000 | $ 2,180,000 | |||||
[1]Does not include the restricted shares that may be earned if the performance goals established in 2022 and 2023 for long-term performance and in 2024 for annual and long-term performance are achieved. Depending on the actual level of achievement of the goals at the end of the open performance periods, the number of shares earned could range from zero to 135,501.[2]Includes shares granted in prior years for which performance conditions have been satisfied and the number of shares have been determined. |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2024 | Dec. 31, 2023 | |
Financial Liabilities [Abstract] | |||
Unsecured debt | $ 1,627,018 | $ 1,676,347 | |
Fair Value [Member] | |||
Financial Assets [Abstract] | |||
Cash and Cash Equivalents | 16,957 | 40,263 | |
Interest rate swap assets | 17,339 | 27,366 | |
Financial Liabilities [Abstract] | |||
Unsecured debt | [1] | 1,538,223 | 1,548,655 |
Interest rate swap liabilities | 3,399 | 2,478 | |
Carrying Amount [Member] | |||
Financial Assets [Abstract] | |||
Cash and Cash Equivalents | [2] | 16,957 | 40,263 |
Interest rate swap assets | [2] | 17,339 | 27,366 |
Financial Liabilities [Abstract] | |||
Unsecured debt | [1],[2] | 1,630,000 | 1,680,000 |
Interest rate swap liabilities | [2] | $ 3,399 | $ 2,478 |
[1]Carrying amounts and fair values shown in the table exclude debt issuance costs (see Note 10 for additional information).[2]Carrying amounts shown in the table are included on the Consolidated Balance Sheets under the indicated captions, except as explained below. |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Thousands | 1 Months Ended | 9 Months Ended |
Oct. 23, 2024 USD ($) a ft² Integer shares | Sep. 30, 2024 USD ($) ft² | |
2024 development land acquisitions | ||
Subsequent Event [Line Items] | ||
Acres of real estate investment property | ft² | 34.3 | |
Payments to Acquire Land | $ 3,302 | |
Subsequent Event [Member] | 2024 development land acquisitions | ||
Subsequent Event [Line Items] | ||
Acres of real estate investment property | a | 25.6 | |
Payments to Acquire Land | $ 10,100 | |
Number of buildings | Integer | 4 | |
Area of future development properties | ft² | 350,000 | |
Subsequent Event [Member] | 2023 Forward Equity Sale Agreements | ||
Subsequent Event [Line Items] | ||
Sale of stock, number of shares subject to forward equity sale agreement | shares | 299,551 | |
Approximate net proceeds from issuance of common stock, forward ATM program | $ 49,385 |