EASTGROUP PROPERTIES INC

Previous wording

•acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections;

Current wording

•acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance with projections or to materialize at all;

Previous wording

•risks related to the failure, inadequacy or interruption of our data security systems and processes;

Current wording

•risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breaches through cyber attacks;

Previous wording

During the three months ended March 31, 2024, economic uncertainty and stock market volatility have continued due to a number of factors, including rising inflation, increasing interest rates, and geopolitical conflict. While these factors have not had a significant adverse impact on EastGroup to date, they may adversely impact the Company in the future. Most of the Company’s leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, thereby reducing the Company’s exposure to increases in operating expenses resulting from inflation or other factors. Additionally, most of the Company's leases include scheduled rent increases. In the event inflation causes increases in the Company’s general and administrative expenses, or higher interest rates increase the Company’s cost of doing business, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. The Company continues to monitor these supply chain, inflation and interest rate factors, as well as the uncertainty resulting from the overall economic environment.

Current wording

During the six months ended June 30, 2024, economic uncertainty and stock market volatility have continued due to a number of factors, including sustained inflation, interest rate uncertainty and geopolitical conflict. While these factors have not had a significant adverse impact on EastGroup to date, they may adversely impact the Company in the future. Most of the Company’s leases require the tenants to pay their pro rata share of operating expenses, including real estate taxes, insurance and common area maintenance, thereby reducing the Company’s exposure to increases in operating expenses resulting from inflation or other factors. Additionally, most of the Company's leases include scheduled rent increases. In the event inflation causes increases in the Company’s general and administrative expenses, or higher interest rates increase the Company’s cost of doing business, such increased costs would not be passed through to tenants and could adversely affect the Company’s results of operations. The Company continues to monitor inflation and interest rates, as well as the uncertainty resulting from the overall economic environment.

Previous wording

EastGroup believes its current operating cash flow and unsecured bank credit facilities provide the capacity to fund the operations of the Company, and the Company also believes it can issue common and/or preferred equity and obtain debt financing on currently acceptable terms. During the three months ended March 31, 2024, the Company settled outstanding forward equity sale agreements that were previously entered into under our current at-the-market common stock offering program (“Current 2023 ATM Program”) by issuing 272,342 shares of common stock in exchange for net proceeds of approximately $49,294,000. EastGroup’s financing and equity issuances are further described in Liquidity and Capital Resources.

Current wording

EastGroup believes its current operating cash flow and unsecured bank credit facilities provide the capacity to fund the operations of the Company, and the Company also believes it can issue common and/or preferred equity and obtain debt financing on currently acceptable terms.

Previous wording

During the three months ended March 31, 2024, the Company did not sell any shares of our common stock directly through sales agents under the Current 2023 ATM Program.

Current wording

During the six months ended June 30, 2024, EastGroup sold, and subsequently settled the issuance of, 218,929 shares of common stock directly through sales agents under its current at-the-market common stock offering program (“Current 2023 ATM Program”) at a weighted average price of $168.62 per share, providing aggregate net proceeds to the Company of $36,547,000. Excluded from this activity are 77,650 shares sold on June 28, 2024, at a weighted average price of $168.63 per share, providing aggregate net proceeds to the Company of $12,963,000, which were not deemed to be issued and outstanding until settlement in July 2024.

Previous wording

During the three months ended March 31, 2024, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward purchasers under our Current 2023 ATM Program with respect to 286,671 shares of common stock with an initial weighted average forward price of $181.95 per share. The Company did not receive any proceeds from the sale of common shares by the forward purchasers at the time it entered into forward equity sale agreements.

Current wording

During the six months ended June 30, 2024, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under the Current 2023 ATM Program with respect to 886,724 shares of common stock with an initial weighted average forward price of $171.60 per share. The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time we entered into forward equity sale agreements. Also during the six months ended June 30, 2024, the Company settled outstanding forward equity sale agreements that were previously entered into under the Current 2023 ATM Program by issuing 692,712 shares of common stock in exchange for net proceeds of approximately $125,564,000.

Previous wording

The Company’s primary source of revenue is rental income. During the three months ended March 31, 2024, EastGroup executed new and renewal leases on 1,998,000 square feet (representing 3.6% of the operating portfolio’s total square footage of 55,358,000). For new and renewal leases signed during the first three months of 2024, average rental rates increased by 57.8% as compared to the former leases on the same spaces.

Current wording

The Company’s primary source of revenue is rental income. During the six months ended June 30, 2024, EastGroup executed new and renewal leases on 4,312,000 square feet (representing 7.7% of the operating portfolio’s total square footage of

Previous wording

On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $1.22 for the three months ended March 31, 2024, compared to $1.02 for the same period of 2023, a 19.6% increase. See the Company’s analysis of performance trends below for further details.

Current wording

On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $2.37 for the six months ended June 30, 2024, compared to $1.99 for the same period of 2023, a 19.1% increase. See the Company’s analysis of performance trends below for further details.

Previous wording

Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire period from January 1, 2023 through March 31, 2024), increased 4.9% for the three months ended March 31, 2024, as compared to the same period in 2023.

Current wording

Property Net Operating Income (“PNOI”) Excluding Income from Lease Terminations from same properties (defined as operating properties owned during the entire period from January 1, 2023 through June 30, 2024), increased 5.1% for the six months ended June 30, 2024, as compared to the same period in 2023.

Previous wording

EastGroup’s operating portfolio was 98.0% leased and 97.7% occupied as of March 31, 2024, compared to 98.7% and 97.9%, respectively, at March 31, 2023. As of April 23, 2024, the operating portfolio was 97.4% leased and 97.0% occupied. As of March 31, 2024, leases approximating 7.4% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2024. This percentage was reduced to 6.2% as of April 23, 2024.

Current wording

EastGroup’s operating portfolio was 97.4% leased and 97.1% occupied as of June 30, 2024, compared to 98.5% and 98.2%, respectively, at June 30, 2023. As of July 23, 2024, the operating portfolio was 97.2% leased and 96.9% occupied. As of June 30, 2024, leases approximating 3.8% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2024. This percentage was reduced to 3.1% as of July 23, 2024.

Previous wording

During the three months ended March 31, 2024, EastGroup acquired 34.3 acres of development land in Atlanta for $3,302,000. The Company also began construction of two development projects containing a total of 388,000 square feet in Tampa and San Antonio. EastGroup also transferred a development project (133,000 square feet) in Miami from Development and value-add properties to Real estate properties, with costs of $22,228,000 at the date of transfer. As of March 31, 2024, EastGroup’s development and value-add program consisted of 19 projects (4,332,000 square feet) located in 13 markets. The projected total investment for the development projects, which were collectively 29.3% leased as of April 23, 2024, is $611,200,000, of which $203,816,000 remained to be invested as of March 31, 2024.

Current wording

During the six months ended June 30, 2024, EastGroup acquired 34.3 acres of development land in Atlanta for $3,302,000. The Company also began construction of three development projects containing a total of 473,000 square feet in Orlando, Tampa and San Antonio. EastGroup also transferred three development projects (427,000 square feet) in Miami, Dallas and Greenville from Development and value-add properties to Real estate properties, with costs of $62,286,000 at the date of transfer. As of June 30, 2024, EastGroup’s development and value-add program consisted of 18 projects (4,123,000 square feet) located in 12 markets. The projected total investment for the development projects, which were collectively 37.1% leased as of July 23, 2024, is $584,400,000, of which $156,179,000 remained to be invested as of June 30, 2024.

Previous wording

During the three months ended March 31, 2024, EastGroup acquired an operating property in Las Vegas containing 231,000 square feet for $54,859,000. There were no value-add property acquisitions during the period.

Current wording

During the six months ended June 30, 2024, EastGroup acquired two operating properties in Las Vegas and Raleigh containing 505,000 square feet for $107,804,000. There were no value-add property acquisitions during the period.

Previous wording

During the three months ended March 31, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet and 3.9 acres of land in San Francisco, generating gross sales proceeds of $18,050,000. The Company recognized $8,751,000 in Gain on sales of real estate investments and $222,000 in gains on sales of non-operating real estate (included in Otheron the Consolidated Statements of Income and Comprehensive Income) during the three months ended March 31, 2024.

Current wording

During the six months ended June 30, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet and 3.9 acres of land in San Francisco, generating gross sales proceeds of $18,050,000. The Company recognized $8,751,000 in Gain on sales of real estate investments and $222,000 in gains on sales of non-operating real estate (included in Otheron the Consolidated Statements of Income and Comprehensive Income) during the six months ended June 30, 2024.

Previous wording

FFO is calculated as net income (loss) attributable to common stockholders computed in accordance with U.S. generally accepted accounting principles (“GAAP”), excluding gains and losses from sales of real estate property (including other assets incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is not considered as an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, nor is it a measure of the Company’s liquidity or indicative of funds available to provide for the Company’s cash needs, including its ability to make distributions. The Company’s key drivers affecting FFO are changes in PNOI (as discussed below), interest rates, the amount of leverage the Company employs and general and administrative expenses.

Current wording

-26- incidental to the Company’s business) and impairment losses, adjusted for real estate related depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. FFO is not considered as an alternative to net income (determined in accordance with GAAP) as an indication of the Company’s financial performance, nor is it a measure of the Company’s liquidity or indicative of funds available to provide for the Company’s cash needs, including its ability to make distributions. The Company’s key drivers affecting FFO are changes in PNOI (as discussed below), interest rates, the amount of leverage the Company employs and general and administrative expenses.

Previous wording

EastGroup sometimes refers to PNOI from Same Properties as “Same PNOI”; the Company also presents Same PNOI Excluding Income from Lease Terminations. Same Properties is defined as operating properties owned during the entire current and prior year reporting periods. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. For the three months ended March 31, 2024, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through March 31, 2024. The Company presents Same PNOI and Same PNOI Excluding Income from Lease Terminations as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis.

Current wording

EastGroup sometimes refers to PNOI from Same Properties as “Same PNOI”; the Company also presents Same PNOI Excluding Income from Lease Terminations. Same Properties is defined as operating properties owned during the entire current and prior year reporting periods. Properties developed or acquired are excluded until held in the operating portfolio for both the current and prior year reporting periods. Properties sold during the current or prior year reporting periods are also excluded. For the three and six months ended June 30, 2024, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through June 30, 2024. The Company presents Same PNOI and Same PNOI Excluding Income from Lease Terminations as a property-level supplemental measure of performance used to evaluate the performance of the Company’s investments in real estate assets and its operating results on a same property basis.

Previous wording

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI Excluding Income from Lease Terminations for the three months ended March 31, 2024 and 2023.

Current wording

The following table presents reconciliations of Net Income to PNOI, Same PNOI and Same PNOI Excluding Income from Lease Terminations for the three and six months ended June 30, 2024 and 2023.

Previous wording

PNOI was calculated as follows for the three months ended March 31, 2024 and 2023.

Current wording

PNOI was calculated as follows for the three and six months ended June 30, 2024 and 2023.

Previous wording

Income from real estate operations is comprised of rental income, net of reserves for uncollectible rent, expense reimbursement pass-through income and other real estate income including lease termination fees. Expenses from real estate operations is comprised of property taxes, insurance, utilities, repair and maintenance expenses, management fees and other operating costs. Generally, the Company’s most significant operating expenses are property taxes and insurance. Tenant leases may be net leases in which the total operating expenses are recoverable, modified gross leases in which some of the operating expenses

Current wording

Income from real estate operations is comprised of rental income, net of reserves for uncollectible rent, expense reimbursement pass-through income and other real estate income including lease termination fees. Expenses from real estate operations is comprised of property taxes, insurance, utilities, repair and maintenance expenses, management fees and other operating costs. Generally, the Company’s most significant operating expenses are property taxes and insurance. Tenant leases may be net leases in which the total operating expenses are recoverable, modified gross leases in which some of the operating expenses are recoverable, or gross leases in which no expenses are recoverable (gross leases represent only a small portion of the Company’s total leases). Increases in property operating expenses are fully recoverable under net leases and recoverable to a high degree under modified gross leases. Modified gross leases often include base year amounts, and expense increases over these amounts are recoverable. The Company’s exposure to property operating expenses is primarily due to vacancies and leases for occupied space that limit the amount of expenses that can be recovered.

Previous wording

The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO Attributable to Common Stockholders for the three months ended March 31, 2024 and 2023.

Current wording

The following table presents reconciliations of Net Income Attributable to EastGroup Properties, Inc. Common Stockholders to FFO Attributable to Common Stockholders for the three and six months ended June 30, 2024 and 2023.

Previous wording

•Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three months ended March 31, 2024 was $58,644,000 ($1.23 per basic and $1.22 per diluted share), compared to $44,690,000 ($1.02 per basic and diluted share) for the same period in 2023. See Results of Operations for further analysis.

Current wording

•Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three and six months ended June 30, 2024 was $55,287,000 ($1.15 per basic and $1.14 per diluted share) and $113,931,000 ($2.37 per basic and diluted share), respectively, compared to $43,450,000 ($0.97 per basic and diluted share) and $88,140,000 ($1.99 per basic and diluted share) for the same periods in 2023. See Results of Operations for further analysis.

Previous wording

•The change in FFO per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year. For the three months ended March 31, 2024, FFO was $1.98 per share compared with $1.84 per share for the same period of 2023, an increase of 7.6%. FFO increased during the three months ended March 31, 2024, as compared to the same period in 2023, primarily due to the increase in PNOI and the decrease in interest expense.

Current wording

•The change in FFO per share represents the increase or decrease in FFO per share from the current period compared to the same period in the prior year. For the three months ended June 30, 2024, FFO was $2.09 per share compared with $1.91 per share for the same period of 2023, an increase of 9.4%. For the six months ended June 30, 2024, FFO was $4.07 per share compared with $3.75 per share for the same period of 2023, an increase of 8.5%. FFO increased during the three and six months ended June 30, 2024, as compared to the same periods in 2023, primarily due to the increase in PNOI and the decrease in interest expense.

Previous wording

•The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2023 through March 31, 2024. Same PNOI, excluding income from lease terminations, increased 4.9% for the three months ended March 31, 2024, as compared to the same period in 2023.

Current wording

•The change in Same PNOI represents the PNOI increase or decrease for the same operating properties owned during the entire period from January 1, 2023 through June 30, 2024. Same PNOI, excluding income from lease terminations, increased 5.3% and 5.1% for the three and six months ended June 30, 2024, as compared to the same periods in 2023.

Previous wording

•Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2023 through March 31, 2024). Same property

Current wording

•Same property average occupancy represents the average month-end percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage for the same operating properties owned

Previous wording

•The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2023 through March 31, 2024). The same property average rental rate was $8.05 per square foot for the three months ended March 31, 2024, compared to $7.60 per square foot for the same period of 2023.

Current wording

•The same property average rental rate calculated in accordance with GAAP represents the average annual rental rates of leases in place for the same operating properties owned during the entire current and prior year reporting periods (January 1, 2023 through June 30, 2024). The same property average rental rate was $8.18 and $8.12 per square foot for the three and six months ended June 30, 2024, respectively, compared to $7.70 and $7.65 per square foot for the same periods of 2023.

Previous wording

•Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period. Occupancy at March 31, 2024 was 97.7%. Quarter-end occupancy ranged from 97.7% to 98.2% over the previous four quarters ended March 31, 2023 to December 31, 2023.

Current wording

•Occupancy is the percentage of leased square footage for which the lease term has commenced as compared to the total leasable square footage as of the close of the reporting period. Occupancy at June 30, 2024 was 97.1%. Quarter-end occupancy ranged from 97.7% to 98.2% over the previous four quarters ended June 30, 2023 to March 31, 2024.

Previous wording

•Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space. Rental rate increases on new and renewal leases (3.6% of the operating portfolio’s total square footage) averaged 57.8% for the three months ended March 31, 2024.

Current wording

•Rental rate change represents the rental rate increase or decrease on new and renewal leases compared to the prior leases on the same space. Rental rate increases on new and renewal leases (4.1% of the operating portfolio’s total square footage) averaged 59.7% for the three months ended June 30, 2024. For the six months ended June 30, 2024, rental rate increases on new and renewal leases (7.7% of the operating portfolio’s total square footage) averaged 58.8%.

Previous wording

•Lease termination fee income is included in Income from real estate operations. Lease termination fee income for the three months ended March 31, 2024 was $147,000, compared to $55,000 for the same period of 2023.

Current wording

•Lease termination fee income is included in Income from real estate operations. Lease termination fee income for the three and six months ended June 30, 2024 was $65,000 and $212,000, respectively, compared to $256,000 and $311,000 for the same periods of 2023.

Previous wording

•The Company records reserves for uncollectible rent as reductions to Income from real estate operations; recoveries for uncollectible rent are recorded as additions to Income from real estate operations. The Company recorded net reserves for uncollectible rent of $775,000 for the three months ended March 31, 2024, compared to $369,000 for the same period of 2023. We evaluate the collectability of rents and other receivables for individual leases at each reporting period based on factors including, among others, tenant payment history, the financial condition of the tenant, business conditions and trends in the industry in which the tenant operates and economic conditions in the geographic area where the property is located. If evaluation of these factors or others indicates it is not probable we will collect substantially all rent, we recognize an adjustment to rental revenue. If our judgment or estimation regarding probability of collection changes we may adjust or record additional rental revenue in the period such conclusion is reached. The Company followed its normal process for recording reserves for uncollectible rent during the three months ended March 31, 2024.

Current wording

•The Company records reserves for uncollectible rent as reductions to Income from real estate operations; recoveries for uncollectible rent are recorded as additions to Income from real estate operations. The Company recorded net reserves for uncollectible rent of $646,000 and $1,421,000 for the three and six months ended June 30, 2024, compared to $386,000 and $755,000 for the same periods of 2023. We evaluate the collectability of rents and other receivables for individual leases at each reporting period based on factors including, among others, tenant payment history, the financial condition of the tenant, business conditions and trends in the industry in which the tenant operates and economic conditions in the geographic area where the property is located. If evaluation of these factors or others indicates it is not probable we will collect substantially all rent, we recognize an adjustment to rental revenue. If our judgment or estimation regarding probability of collection changes we may adjust or record additional rental revenue in the period such conclusion is reached. The Company followed its normal process for recording reserves for uncollectible rent during the three and six months ended June 30, 2024.

Previous wording

EastGroup’s Total Assets were $4,577,005,000 at March 31, 2024, an increase of $57,792,000 from December 31, 2023. Total Liabilities increased $7,067,000 to $1,917,646,000, and Total Equity increased $50,725,000 to $2,659,359,000 during the same period. The following paragraphs explain these changes in additional detail.

Current wording

EastGroup’s Total Assets were $4,714,693,000 at June 30, 2024, an increase of $195,480,000 from December 31, 2023. Total Liabilities increased $37,167,000 to $1,947,746,000, and Total Equity increased $158,313,000 to $2,766,947,000 during the same period. The following paragraphs explain these changes in additional detail.

Previous wording

Real estate properties increased $74,373,000 during the three months ended March 31, 2024, primarily due to: (i) the acquisition of one operating property; (ii) the transfer of one project from Development and value-add properties to Real estate properties; (iii) capital improvements at the Company’s properties; and (iv) 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 a group of operating properties.

Current wording

Real estate properties increased $185,651,000 during the six months ended June 30, 2024, primarily due to: (i) the acquisitions of two operating properties; (ii) the transfer of three projects from Development and value-add properties to Real estate properties; (iii) capital improvements at the Company’s properties; and (iv) 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 a group of operating properties.

Previous wording

During the three months ended March 31, 2024, EastGroup acquired the following property:

Current wording

During the six months ended June 30, 2024, EastGroup acquired the following properties:

Previous wording

During the three months ended March 31, 2024, the Company made capital improvements of $11,691,000 on existing properties (included in the Real Estate Improvements table under Results of Operations). Also, the Company incurred costs of $674,000 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.

Current wording

During the six months ended June 30, 2024, the Company made capital improvements of $29,634,000 on existing properties (included in the Real Estate Improvements table under Results of Operations). Also, the Company incurred costs of $1,680,000 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.

Previous wording

During the three months ended March 31, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet, generating gross sales proceeds of $14,050,000. The Company recognized $8,751,000 in Gain on sales of real estate investments during the three months ended March 31, 2024.

Current wording

During the six months ended June 30, 2024, EastGroup sold a group of operating properties in the Jackson, Mississippi market containing 159,000 square feet, generating gross sales proceeds of $14,050,000. The Company recognized $8,751,000 in Gain on sales of real estate investments during the six months ended June 30, 2024.

Previous wording

EastGroup’s investment in Development and value-add propertiesat March 31, 2024 consisted of projects in lease-up and under construction of $407,384,000 and prospective development (primarily land) of $262,866,000. The Company’s total investment in Development and value-add propertiesat March 31, 2024 was $670,250,000 compared to $639,647,000 at December 31, 2023. Total capital invested for development during the first three months of 2024 was $57,771,000, which consisted of improvement costs of $53,795,000 on development and value-add properties, $3,302,000 for new land investments, and costs of $674,000 on properties subsequent to transfer to Real estate properties. The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs).

Current wording

EastGroup’s investment in Development and value-add propertiesat June 30, 2024 consisted of projects in lease-up and under construction of $428,221,000 and prospective development (primarily land) of $264,851,000. The Company’s total investment in Development and value-add propertiesat June 30, 2024 was $693,072,000 compared to $639,647,000 at December 31, 2023. Total capital invested for development during the first six months of 2024 was $122,898,000, which consisted of improvement costs of $117,916,000 on development and value-add properties, $3,302,000 for new land investments, and costs of $1,680,000 on properties subsequent to transfer to Real estate properties. The capitalized costs incurred on development and value-add properties subsequent to transfer to Real estate properties include capital improvements at the properties and do not include other capitalized costs associated with development (i.e., interest expense, property taxes and internal personnel costs).

Previous wording

The Company capitalized internal development costs of $2,223,000 for the three months ended March 31, 2024, compared to $2,455,000 for the same period of 2023.

Current wording

The Company capitalized internal development costs of $2,032,000 and $4,255,000 for the three and six months ended June 30, 2024, respectively, compared to $2,357,000 and $4,812,000 for the same periods of 2023.

Previous wording

There were no value-add acquisitions during the three months ended March 31, 2024.

Current wording

There were no value-add acquisitions during the six months ended June 30, 2024.

Previous wording

During the three months ended March 31, 2024, the Company acquired 34.3 acres of development land in Atlanta for $3,302,000. Costs associated with this acquisition are included in the Development and Value-Add Properties table. These increases were offset by the transfer of one development and value-add project to Real estate properties during the three months ended March 31, 2024 with a total investment of $22,228,000 as of the date of transfer.

Current wording

During the six months ended June 30, 2024, the Company acquired 34.3 acres of development land in Atlanta for $3,302,000. Costs associated with this acquisition are included in the Development and Value-Add Properties table. These increases were offset by the transfer of three development and value-add projects to Real estate properties during the six months ended June 30, 2024 with a total investment of $62,286,000 as of the date of transfer.

Previous wording

During the three months ended March 31, 2024, EastGroup sold 3.9 acres of land in San Francisco, generating gross sales proceeds of $4,000,000. The Company recognized $222,000 in gains on sales of non-operating real estate (included in Otheron the Consolidated Statements of Income and Comprehensive Income) during the three months ended March 31, 2024.

Current wording

During the six months ended June 30, 2024, EastGroup sold 3.9 acres of land in San Francisco, generating gross sales proceeds of $4,000,000. The Company recognized $222,000 in gains on sales of non-operating real estate (included in Otheron the Consolidated Statements of Income and Comprehensive Income) during the six months ended June 30, 2024.

Previous wording

A summary of the Company's Development and Value-Add Properties for the three months ended March 31, 2024 follows:

Current wording

A summary of the Company's Development and Value-Add Properties for the six months ended June 30, 2024 follows:

Previous wording

Accumulated depreciation on real estate, development and value-add properties increased $26,182,000 during the three months ended March 31, 2024, primarily due to depreciation expense, partially offset by the sale of operating properties.

Current wording

Accumulated depreciation on real estate, development and value-add properties increased $62,812,000 during the six months ended June 30, 2024, primarily due to depreciation expense, partially offset by the sale of operating properties.