Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 207

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 3
Chunk 207
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 and are subsequently reclassified into earnings through Interest expense as interest payments are made or received on the Company’s variable rate debt in the period that the hedged forecasted transaction affects earnings.  The Company estimates that an additional $9,821,000 will be reclassified from Other comprehensive income (loss) as a decrease to Interest expense over the next twelve months. The Company’s valuation methodology for over-the-counter (“OTC”) derivatives is to discount cash flows based on SOFR market data. Uncollateralized or partially-collateralized trades include appropriate economic adjustments for funding costs and credit risk. The Company calculates its derivative valuations using mid-market prices.

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EASTGROUP PROPERTIES, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024 and 2023, the Company had the following outstanding interest rate derivatives that are designated as cash flow hedges of interest rate risk:NOTIONAL VALUE OF INTEREST RATE DERIVATIVESDecember 31,2024December 31,2023(In thousands)Interest Rate Swap$100,000 100,000 Interest Rate Swap100,000 100,000 Interest Rate Swap50,000 50,000 Interest Rate Swap100,000 100,000 Interest Rate Swap75,000 75,000 Interest Rate Swap— 50,000 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 December 31, 2024 and 2023.  See Note 16 for additional information on the fair value of the Company’s interest rate swaps.   DERIVATIVES DESIGNATED AS CASH FLOW HEDGES AT FAIR VALUEDecember 31,2024December 31,2023(In thousands)Interest rate swap assets (1)$21,953 27,366 Interest rate swap liabilities (2)— 2,478 (1)  Included in Other assets on the Consolidated Balance Sheets.(2)  Included in Other Liabilities on the Consolidated Balance Sheets.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 years ended December 31, 2024, 2023 and 2022:  Years Ended December 31,DERIVATIVES IN C