Company: EGP
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000049600-25-000100
Chunk: 27

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 1
Chunk 27
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     Interest rate swap liabilities (2)2,337 — (1)Included in Other assets, net 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 and six months ended June 30, 2025 and 2024:  Three Months EndedJune 30,Six Months Ended                                                                                                                                            June 30,EFFECT OF CASH FLOW HEDGES ON OTHER COMPREHENSIVE INCOME2025202420252024 (In thousands)Amount of income (loss) recognized in Other comprehensive income     (loss) on derivatives$(1,462)3,634 (5,338)14,274 Amount of (income) reclassified from Accumulated other     comprehensive income into Interest expense(2,674)(4,729)(5,725)(9,475)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 default where repayment of the indebtedness has not been accelerated by the lender.  As of June 30, 2025, we had not posted any collateral related to these agreements and were not in breach of any of the provisions of these agreements.  If the Company had breached any of these provisions, it would be required to settle its obligations under the agreements at their termination value.

(15) EARNINGS PER SHARE

 The Company applies ASC 260, Earnings Per Share, which requires companies to present basic and diluted earnings per share (“EPS”).  Basic EPS represents the amount of earnings for the period attributable to each share of common stock outstanding during the reporting period.  The Company’s basic EPS is calculated by dividing Net Income Attributable