Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 151

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 3
Chunk 151
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2025.

As of February 12, 2025, approximately $719,665,000 of common stock remains available to be sold under the Current ATM Program.  Future sales, if any, will depend on a variety of factors, including among others, market conditions, the trading price of our common stock, determinations by us of the appropriate sources of funding for us and potential uses of funding available to us.

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EastGroup’s other material cash requirements from known contractual and other obligations as of December 31, 2024 were as follows:

 Cash Requirements (1)(In thousands)Real estate property obligations (2)$19,195 Development and value-add obligations (3)111,196 Tenant improvements obligations (4)28,229 Operating lease obligations - Ground leases (5)2,821 Total$161,441 

(1)Cash requirement due in less than one year; there were no related long-term cash requirements (other than ground lease payments, described below).

(2)Represents commitments on real estate properties, except for tenant improvement allowance obligations.

(3)Represents commitments on properties in the Company’s development and value-add program, except for tenant improvement allowance obligations.

(4)Represents tenant improvement allowance obligations.

(5)Represents ground lease payments due within one year.  The Company also estimates future minimum ground lease payments of $148,849,000, due within the current lease terms of its ground leases.  With the renewal options excluded, expiration dates range from August 2031 to December 2085.

The Company has no material off-balance sheet arrangements that have had or are reasonably likely to have a material current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company’s management considers the following accounting policies and estimates to be critical to the reported operations of the Company.

Acquisition and Development of Real Estate Properties

The FASB Codification 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 relative fair values.  Factors considered by management in allocating the cost of the properties acquired include an estimate of carrying costs during the expected lease-up periods considering current market conditions and costs to execute similar leases.  The allocation to tangible assets (land, building and improvements) is based upon management’s determination of the