Company: EGP
Filing Date: 2025-04-23
Form Type: 10-Q
Source: 0000049600-25-000065
Chunk: 82

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-04-23
Form: 10-Q
Item: Part I, Item 8
Chunk 82
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 31,2025December 31,2024(In thousands)Interest Rate Swap$100,000 100,000 Interest Rate Swap100,000 100,000 Interest Rate Swap— 50,000 Interest Rate Swap100,000 100,000 Interest Rate Swap75,000 75,000 Interest Rate Swap100,000 100,000 The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024.  See Note 18 for additional information on the fair value of the Company’s interest rate swaps.   DERIVATIVES DESIGNATED AS CASH FLOW HEDGES AT FAIR VALUEMarch 31,2025December 31,2024(In thousands)    Interest rate swap assets (1)$16,452 21,953     Interest rate swap liabilities (2)1,426 — (1)Included in Other assets on the Consolidated Balance Sheets.(2)Included in Other liabilities on the Consolidated Balance Sheets.

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EASTGROUP PROPERTIES, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

The table below presents the effect of the Company’s derivative financial instruments (interest rate swaps) on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2025 and 2024:  Three Months EndedMarch 31,DERIVATIVES IN CASH FLOW HEDGING RELATIONSHIPS20252024 (In thousands)Amount of income (loss) recognized in Other comprehensive income (loss) on derivatives$(3,876)10,640 Amount of (income) reclassified from Accumulated other comprehensive income      into Interest expense(3,051)(4,746)See Note 13 for additional information on the Company’s Accumulated other comprehensive income resulting from its interest rate swaps.Derivative financial agreements expose the Company to credit risk in the event of non-performance by the counterparties under the terms of the interest rate hedge agreements.  The Company believes it minimizes the credit risk by transacting with financial institutions the Company regards as credit-worthy.  The Company has an agreement with its derivative counterparties containing a provision stating that the Company could be declared in default on its derivative obligations if the Company defaults on any of its indebtedness, including