EXHIBIT 99.1

             Report of Independent Registered Public Accounting Firm


The Board of 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, 2008 and
2007, and the related consolidated  statements of income,  changes in equity and
cash flows for each of the years in the  three-year  period  ended  December 31,
2008. 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, 2008 and 2007,  and the
results  of their  operations  and their cash flows for each of the years in the
three-year  period ended  December 31, 2008, 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 Company's internal control over
financial  reporting as of December 31, 2008, based on the criteria  established
in Internal Control - Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway  Commission  (COSO), and our report dated February
26, 2009, expressed an unqualified opinion on the effectiveness of the Company's
internal control over financial reporting.



                                               /s/ KPMG LLP

Jackson, Mississippi
February 26, 2009, except for the
  fourth paragraph of note 1(o) and
  note 19, which are as of May 18, 2009