EXHIBIT 99.1


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

THE DIRECTORS AND STOCKHOLDERS
EASTGROUP PROPERTIES, INC.:

     We have audited the accompanying  consolidated  balance sheets of EastGroup
Properties,  Inc.  and  subsidiaries  (the  Company) as of December 31, 2005 and
2004,   and  the  related   consolidated   statements  of  income,   changes  in
stockholders'  equity  and cash  flows for each of the  years in the  three-year
period ended December 31, 2005. These consolidated  financial statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.
     We  conducted  our audits in  accordance  with the  standards of the Public
Company Accounting Oversight Board (United States). Those standards require that
we plan and perform the audit to obtain  reasonable  assurance about whether the
financial  statements  are free of  material  misstatement.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  financial  statements.  An audit also  includes  assessing  the  accounting
principles  used  and  significant  estimates  made  by  management,  as well as
evaluating the overall  financial  statement  presentation.  We believe that our
audits provide a reasonable basis for our opinion.
     In our opinion,  the consolidated  financial  statements  referred to above
present fairly, in all material  respects,  the financial  position of EastGroup
Properties,  Inc. and  subsidiaries  as of December  31, 2005 and 2004,  and the
results  of their  operations  and their cash flows for each of the years in the
three-year  period ended  December 31, 2005, in conformity  with U.S.  generally
accepted accounting principles.
     We also have  audited,  in  accordance  with the  standards  of the  Public
Company  Accounting  Oversight Board (United States),  the  effectiveness of the
Company's  internal  control over  financial  reporting as of December 31, 2005,
based on the criteria  established  in Internal  Control - Integrated  Framework
issued by the Committee of Sponsoring  Organizations of the Treadway Commission,
and our  report  dated  March  8,  2006  expressed  an  unqualified  opinion  on
management's  assessment of, and the effective  operation of,  internal  control
over financial reporting.

                                    KPMG LLP
Jackson, Mississippi
March 8, 2006, except as to note 19,
  which is as of June 8, 2006