Company: EGP
Filing Date: 2025-07-23
Form Type: 10-Q
Source: 0000049600-25-000100
Chunk: 147

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-07-23
Form: 10-Q
Item: Part I, Item 2
Chunk 147
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,000 from December 31, 2024.  Total Liabilities decreased $2,435,000 to $1,782,497,000, and Total Equity increased $114,567,000 to $3,407,111,000 during the same period.  The following paragraphs explain these changes in additional detail.

Assets

Real Estate Properties

Real estate properties increased $191,507,000 during the six months ended June 30, 2025, primarily due to: (i) the transfer of projects from Development and value-add properties to Real estate properties; (ii) capital improvements at the Company’s properties; and (iii) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below.  The increases were partially offset by the sale of an operating property.

There were no operating property acquisitions during the six months ended June 30, 2025.  

During the six months ended June 30, 2025, EastGroup sold a 12,000 square foot operating property in San Francisco, generating gross sales proceeds of $3,573,000.  The Company did not recognize a gain or loss on this disposition.

During the six months ended June 30, 2025, the Company made capital improvements of $38,700,000 on existing properties (included in the Real Estate Improvements table under Results of Operations).  Also, the Company incurred costs of $3,239,000 on development and value-add properties subsequent to transfer to Real estate properties; the Company records these expenditures as development and value-add costs on the Consolidated Statements of Cash Flows.

Development and Value-Add Properties

EastGroup’s investment in Development and value-add properties at June 30, 2025 consisted of projects in lease-up and under construction of $373,565,000 and prospective development (primarily land) of $304,448,000.  The Company’s total investment in Development and value-add properties at June 30, 2025 was $678,013,000 compared to $674,472,000 at December 31, 2024.  Total capital invested for development during the first six months of 2025 was $158,709,000, which consisted of improvement costs of $105,242,000 on development and value-add properties, 50,228,000 for new land investments and costs of $3,239,000 on properties subsequent to transfer to Real estate properties. The capitalized costs incurred