Company: EGP
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000049600-25-000065
Chunk: 14

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 1
Chunk 14
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31, 2025 and 2024, respectively.The Company’s Real estate properties and Development and value-add properties at March 31, 2025 and December 31, 2024 were as follows: March 31,2025December 31,2024 (In thousands)Real estate properties:     Land$891,539 888,140    Buildings and building improvements3,862,774 3,815,850    Tenant and other improvements773,925 761,061    Right of use assets — Ground leases (operating) (1)37,526 38,393 Development and value-add properties (2)686,102 674,472  6,251,866 6,177,916    Less accumulated depreciation(1,456,556)(1,415,576) $4,795,310 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 properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use. Properties meeting either of the following two conditions are considered value-add properties: (1) Less than 75% leased as of the acquisition date (or will be less than 75% leased within one year of the acquisition date based on near term lease roll), or (2) 20% or greater of the cumulative gross cost of the property will be spent to redevelop the property.  Properties qualifying under these conditions are included in Development and value-add properties in the quarter in which (1) they are acquired, if condition 1 above is met, or (2) when construction to redevelop begins.  Costs associated with development (i.e., land, construction costs, interest expense, property taxes and other costs associated with development) are aggregated into the total capitalized costs of the property.  Included in these costs are management’s estimates for the