Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 24

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 15
Chunk 24
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 the sales qualify for discontinued operations presentation. Results of operations and gains and losses on sales for properties sold are reported in continuing operations on the Consolidated Statements of Income and Comprehensive Income. The gains and losses on sales of operating properties are included in Gain on sales of real estate investments.  The Company did not consider its sales in 2024, 2023, or 2022 to be disposals of a component of an entity or a group of components of an entity representing a strategic shift that has (or will have) a major effect on the entity’s operations and financial results.  (g)Derivative Instruments and Hedging ActivitiesEastGroup applies ASC 815, Derivatives and Hedging, which requires all entities with derivative instruments to disclose information regarding how and why the entity uses derivative instruments and how derivative instruments and related hedged items affect the entity’s financial position, financial performance and cash flows.  See Note 12 for a discussion of the Company’s derivative instruments and hedging activities.(h)Cash EquivalentsThe Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. The carrying amounts approximate fair value due to the short maturity of those instruments. (i)AmortizationDebt origination costs are deferred and amortized over the term of each loan using the effective interest method, and the amortization is included in Interest Expense.  Amortization of debt issuance costs was $1,914,000, $1,943,000 and $1,357,000 for 2024, 2023 and 2022, respectively.  Amortization of facility fees was $1,012,000, $1,005,000 and $713,000 for 2024, 2023 and 2022, respectively.    Leasing costs are deferred and amortized using the straight-line method over the term of the lease.  The related amortization expense is included in Depreciation and amortization.  Leasing costs amortization expense was $25,522,000, $22,133,000 and $18,950,000 for 2024, 2023 and 2022, respectively.  Amortization expense for in-place lease intangibles is disclosed below in Real Estate Property Acquisitions and Acquired Intangibles.(j)Real Estate Property Acquisitions and Acquired IntangiblesUpon acquisition of real estate properties, EastGroup applies the principles of ASC 805, Business Com