Company: EGP
Filing Date: 2025-10-23
Form Type: 10-Q
Source: 0000049600-25-000109
Chunk: 79

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-10-23
Form: 10-Q
Item: Part I, Item 8
Chunk 79
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 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, 2025 and 2024, 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 $43,928,000 and $129,329,000 for the three and nine months ended September 30, 2025, respectively, and $40,046,000 and $114,897,000 for the same periods in 2024.The Company’s Real estate properties and Development and value-add properties at September 30, 2025 and December 31, 2024 were as follows: September 30,2025December 31,2024 (In thousands)Real estate properties:     Land$944,472 888,140    Buildings and building improvements4,147,362 3,815,850    Tenant and other improvements822,425 761,061    Right of use assets — Ground leases (operating) (1)35,816 38,393 Development and value-add properties (2)642,207 674,472  6,592,282 6,177,916    Less accumulated depreciation(1,540,937)(1,415,576) $5,051,345 4,762,340 (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.

(6)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