Company: EGP
Filing Date: 2025-02-12
Form Type: 10-K
Source: 0000049600-25-000019
Chunk: 46

Company: EASTGROUP PROPERTIES INC
Filing Date: 2025-02-12
Form: 10-K
Item: Item 15
Chunk 46
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 shares available for grant under the 2013 Equity Plan as of December 31, 2022. Typically, the Company issues new shares to fulfill stock grants.Employee Equity AwardsThe Company’s restricted stock program is designed to provide incentives for management to achieve goals established by the Committee.  The awards act as a retention device, as they vest over time, allowing participants to benefit from dividends on shares as well as potential stock appreciation.  Equity awards align management’s interests with the long-term interests of shareholders.  The Committee approves long-term and annual equity compensation awards for the Company’s executive officers.  The vesting periods of the Company’s restricted stock plans vary, as determined by the Committee.  Restricted stock is granted to executive officers subject to both continued service and the satisfaction of certain annual performance goals and multi-year market conditions as determined by the Committee.   Long-term equity compensation awardsThe long-term compensation awards include components based on the Company’s total shareholder return over the upcoming three-year period and the employee’s continued service as of the vesting dates. The total shareholder return component is subject to bright-line tests that compare the Company’s total shareholder return to the Nareit Equity Index and to the member companies of the Nareit industrial index.     The following table summarizes the assumptions used in the Monte Carlo simulation pricing model used to determine the grant date fair value of the multi-year market conditions component of the long-term compensation awards for 2024, 2023 and 2022:2024 Award2023 Award2022 AwardValuation date2/26/20243/2/20233/3/2022Risk-free interest rate4.65 %4.68 %1.64 %Expected share price volatility for the Company22.85 %31.01 %30.01 %Expected share price volatility for peer group companies - low end of range20.46 %27.31 %26.32 %Expected share price volatility for peer group companies - high end of range62.79 %51.26 %50.10 %Expected dividend yield2.84 %3.02 %2.27 %Number of simulation paths1,000,000 1,000,000 1,000,000 Grant date fair value (in thousands)$4,442 4,885 2,912 The risk-free interest rate is based on zero coupon risk-free rates matching the three-year time period of the market performance period.