EASTGROUP PROPERTIES INC

The Compensation Committee relies on the peer group analysis prepared by FPC to evaluate pay levels for our executive officers. The peer group recommended by FPC and approved by the Compensation Committee consists of public real estate companies. For 2023, a single peer group was recommended instead of two peer groups based on (i) industry sector (the asset-based peer group) and (ii) equity market capitalization, geographic location and historical performance (the size-geographic-performance (“SGP”) peer group). A single peer group eliminated the overlap of peers between the two peer groups. FPC analyzes competitive total direct compensation at the peer REITs listed below, as disclosed in their proxy statements for prior years, as well as information contained in FPC’s proprietary database. The Compensation Committee evaluates the appropriateness of peer groups annually (based on merger and acquisition activity, growth, property focus, etc.) and makes adjustments accordingly.

SUMMARY

u FPC prepared discussion materials regarding its proposed single peer group for examining compensation across 2022.

u FPC recommended adding three companies to the composition of the peer group from 2022 to 2023 and removing three companies from the peer group from 2022 to 2023.

u The Compensation Committee reviewed FPC’s recommendations and approved the single peer group to be considered in determining 2023 compensation.

The single peer group used for setting 2023 compensation included the following additions from 2022 to 2023: Agree Realty Corporation, Americold Realty Trust, Inc. and National Retail Properties, Inc. CoreSite Realty Corporation (which was acquired by American Tower Corporation in 2021), Duke Realty Corporation (which was acquired by Prologis, Inc. in 2022) and PS Business Parks, Inc. (which was acquired by Blackstone Funds in 2022) were removed from the peer group. The single peer group used for setting 2023 compensation consisted of the following 16 exchange-listed REITs, which (i) operate across multiple asset classes and are similar in size to the Company in terms of market capitalization, (ii) are similar in performance to the Company in terms of three‑year annualized TSR and/or (iii) are headquartered in the Sunbelt region of the United States. The single peer group companies for 2023 were as follows:

When developing the single peer group used for determining the 2023 executive compensation, FPC and the Compensation Committee considered the following comparative statistics, with data shown as of the time of the executive benchmarking analysis:

FPC conducted a study that compared the Company’s actual 2022 compensation for the executive officers (including the equity awards made in 2022 with respect to 2021 performance) with the actual 2022 total compensation of the top five executives of each of the companies included in the peer groups. In addition, FPC analyzed target compensation. The study showed that the target total pay, on a weighted average basis for all executive officers, was between the 25th percentile and 50th percentile of the single peer group. The Compensation Committee then used the peer group data, survey information and other relevant factors to establish the 2023 compensation program for our executive officers. These factors provided the framework for compensation decision making and final decisions regarding the compensation opportunity for each executive officer. While the Compensation Committee considered the 50th percentile of the single peer group as a benchmark, it did not target a specific percentile to set compensation. Additionally, no single factor was determinative in setting pay levels, nor was the impact of any factor on the determination of pay levels quantifiable.