Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 99

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 1
Chunk 99
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 Site Assessments (“ESAs”) by independent environmental consultants and, as necessary, have 

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been subjected to Phase II ESAs.  These reports have not revealed any potential significant environmental liability.  Our management is not aware of any environmental liability that would have a material adverse effect on EastGroup’s business, assets, financial position or results of operations.  

See “Item 1A. Risk Factors” in this Annual Report for a discussion of material risks to EastGroup, including related to governmental regulations and environmental matters.

Corporate Responsibility Matters

EastGroup’s commitment to corporate responsibility initiatives is evidenced by its building standards, corporate policies and procedures and company culture.  At EastGroup, protecting the environment is important to the Company’s employees, customers and communities.  The Company strives to support sustainability through its commitment to build high performance and environmentally responsible properties.  Through EastGroup’s continued efforts, numerous properties have been certified through the U.S. Green Building Council's Leadership in Energy and Environmental Design (“LEED®”) green building program, ENERGY STAR® and the BOMA 360 Performance Program® of the Building Owners and Managers Association (“BOMA”) International®.  While formal certification is not always pursued, the Company prioritizes the use of energy and water efficient fixtures during development and consistently invests in efficiency improvements for existing properties, such as LED lighting, white reflective roofing, electric vehicle charging stations and smart sensor irrigation systems.  The Company believes that its continued commitment to these practices creates positive impacts on the environment and long-term value for the Company and its stakeholders.

The Company has an unsecured revolving credit facility subject to a sustainability-linked pricing component, pursuant to which the applicable interest margin and facility fee may be adjusted annually based on a sustainability performance metric as calculated for the preceding year. This metric is based on the number of newly-constructed buildings with qualifying electric vehicle charging stations as a percentage of total qualifying buildings for each fiscal year.  The impact to interest rates on the credit facility is further described in Note 5 in the Notes to Consolidated Financial Statements.

During 2024, EastGroup continued to work with a sustainability consulting firm to track and benchmark the Company's environmental data and further expand its corporate responsibility policies, practices and voluntary disclosures.  Using the data obtained from these efforts, EastGroup completed its second annual GRESB® Real Estate Assessment, which provided the Company with additional insight into its environmental, social and governance management and performance as compared to its industry peers.

The Company also adopted its Corporate Responsibility Policy