Company: EGP
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0000049600-25-000109
Chunk: 147

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 2
Chunk 147
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 improvements of $59,276,000 on existing properties (included in the Real Estate Improvements table under Results of Operations).  Also, the Company incurred costs of $5,759,000 on development and value-add properties subsequent to transfer to Real estate properties; the Company records these expenditures as development and value-add costs on the Consolidated Statements of Cash Flows.

Development and value-add properties at September 30, 2025 consisted of projects in lease-up and under construction of $298,554,000 and prospective development (primarily land) of $343,653,000.  The Company’s total investment in Development and value-add properties at September 30, 2025 was $642,207,000 compared to $674,472,000 at December 31, 2024.  The decrease in Development and value-add properties was primarily due to the transfer of 10 development and value-add projects to Real estate properties during the nine months ended September 30, 2025 with a total investment of $268,626,000 as of the date of transfer.

Total capital invested for development during the first nine months of 2025 was $242,121,000, which consisted of improvement costs of $152,569,000 on development and value-add properties, $83,793,000 for new land investments and costs of $5,759,000 on properties subsequent to transfer to Real estate properties. The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs).  The Company capitalized internal development costs of $1,716,000 and $5,387,000 for the three and nine months ended September 30, 2025, respectively, compared to $1,903,000 and $6,158,000 for the same periods of 2024.  The decrease was due to variations in timing and volume of development projects under construction.

During the nine months ended September 30, 2025, the Company acquired 171.8 acres of development land in three markets for $83,793,000.  Costs associated with these acquisitions are included in the Development and Value-Add Properties table.  There were no value-add acquisitions during the nine months ended September 30, 2025.

A summary of the Company's Development and Value-Add Properties for the nine months ended September 30,