Company Overview
EastGroup Properties, Inc. (New York Stock Exchange (“NYSE”): EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Texas, Florida, California, Arizona and North Carolina. The Company’s goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup’s portfolio, including development projects and value-add acquisitions in lease-up and under construction, included approximately 63.1 million square feet as of December 31, 2024. References in this proxy statement to “we,” “us,” “our,” “ours,” the “Company” or “EastGroup” refer to EastGroup Properties, Inc., unless the context otherwise requires.
| Portfolio SnapshotAs of December 31, 2024, our portfolio included the following: |
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| OPERATING: · LEASE-UP: · UNDER CONSTRUCTION: |
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| 622 | 58,981,000 | 16 | 1,721,000 | 19 | 2,422,000 |
| buildings | square feet | buildings | square feet | buildings | square feet |
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| Geographic Focus · Property Focus |
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| •High-Growth Markets•Emphasis in Local Economies Growing Faster than the U.S. Economy•Economic Cycle Diversification · •63.1 Million Square Feet Under Ownership•Multi-tenant•In-fill Sites/Supply Constrained Submarkets · •Last Mile E-commerce Locations•Shallow Bay Industrial•Competitive Protection Through Location |
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Business and Strategic Highlights
| CAPITALIZATION(As of 12.31.2024) | DIVIDEND GROWTH(As of Fourth Quarter 2024)•Declared 180th Consecutive Quarterly Cash Dividend – $1.40 per Share•Increased or Maintained Cash Dividend for 32 Consecutive Years•Dividend Has Increased 29 of the Past 32 Years – Increased in Each of the Last 13 Years |
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| OPERATING RESULTS |
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| Net Income Attributable toCommon Stockholders(Per Diluted Share) | Same PNOI Growth(1)(Excluding Income fromLease Terminations)(Cash Basis) | FFO(1) (Per Diluted Share) | Leased Operating Portfolio |
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(1)FFO and Same PNOI Excluding Income from Lease Terminations (Cash Basis) are not computed in accordance with GAAP. A reconciliation of FFO and other required disclosure can be found on page 24 of our Annual Report on Form 10-K for the year ended December 31, 2024, which we filed with the SEC on February 12, 2025. Reconciliations of Same PNOI Excluding Income from Lease Terminations (Cash Basis) and other required disclosure, can be found on pages 5, 6, 8, 23 and 24 in the Company’s quarterly Supplemental Information for the period ended December 31, 2024, which can be found on the Investor Relations page of the Company’s website atwww.eastgroup.net.
| PRIMARY GOAL | | OUR PORTFOLIO | STRATEGYFOR GROWTH |
| Maximize shareholder value by being a leading provider in our markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). | | 63.1 million sq. ft.As of March 31, 2025 (including development projects and value-add acquisitions in lease-up and under construction). | Ownership of premier distribution facilities in high-growth markets, generally clustered near major transportation features in supply-constrained submarkets. | |
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2024 Company Highlights
| EARNINGS PERFORMANCE | TOTAL SHAREHOLDER RETURN (“TSR”) | SAME PNOI GROWTH |
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| $4.66per diluted share Net Income Attributable to Common Stockholders in 2024 | 80th percentileranking compared to Nareit Industrial Index constituents for the three year period ended 2024 | 5.6%Same PNOI Excluding Income from Lease Terminations (Cash Basis)(1) growth year over year |
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| ▲ 5.4% over 2023 |
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| $8.35per diluted share FFO(1) in 2024 |
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| ▲ 7.2% over 2023 |
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| OCCUPANCY | LEASING | ACQUISITIONS AND DISPOSITIONS |
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| 96.1%occupancy at the end of 202496.7%same property average occupancy for 20247.2%of total annualized base rent represented by our top 10 customers at December 31, 2024 | 9.4 millionsquare feet of operating portfolio leases signed in 202453.0%increase in rental rates on new and renewal leases in 202485.7%of expiring square feet renewed or re-leased within the quarter of expiration during 2024 | $403.8 millionin acquisitions during 2024Operating Properties Acquired2,474,000 square feetLand Acquired61.1 acres$9.1 millionrealized gains for selling 159,000 square feet of operating properties and 5.4 acres of land (not included in FFO) |
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| DEVELOPMENT AND VALUE-ADD PROGRAM | DIVIDENDS | MANAGEMENT OF THE BALANCE SHEET |
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| $608.7 millionprojected total investment with 21 projects (4,143,000 square feet) at December 31, 2024, including 10 new development projects (1,585,000 square feet) started in 2024 with a projected total investment of $230.0 million | $5.34 per share declared annual cash dividends in 2024Increased annual cash dividends declared in 2024 by 6.0% | $724.0 millionCommon Stock issued under our continuous common equity program in 2024 at an average of $177.83 per share$675.0 milliontotal capacity on our unsecured bank credit facilities |
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(1)FFO and Same PNOI Excluding Income from Lease Terminations (Cash Basis) are not computed in accordance with GAAP. A reconciliation of FFO and other required disclosure can be found on page 24 of our Annual Report on Form 10-K for the year ended December 31, 2024, which we filed with the SEC on February 12, 2025. Reconciliations of Same PNOI Excluding Income from Lease Terminations (Cash Basis) and other required disclosure, can be found on pages 5, 6, 8, 23 and 24 in the Company’s quarterly Supplemental Information for the period ended December 31, 2024, which can be found on the Investor Relations page of the Company’s website atwww.eastgroup.net.
| Environmental Stewardship | |
| 5 yearsof corporate responsibility reporting of voluntary sustainability-related disclosures and performance metrics39 of our buildings(3.8 million square feet) obtained green building certification in prior years17 buildings(3.0 million square feet) obtained 2024 ENERGY STAR Certification5 buildings(850,000 square feet) obtained both BOMA 360 and BOMA BEST Sustainable Certification in 2024 |
| GREEN BUILDING CERTIFICATIONS AND AWARDS•Numerous properties have been certified through the U.S. Green Building Council's Leadership in Energy and Environmental Design (“LEED®”) green building program, ENERGY STAR® and the BOMA 360 Performance Program® (“BOMA 360”) of the Building Owners and Managers Association (“BOMA”) International®. •Our Gateway Commerce Park property was awarded the BOMA Miami-Dade 2024 TOBY Choice Award in the Industrial category, an award honoring excellence in building management and operations. Each of the property’s five buildings are certified through BOMA BEST Sustainable (silver level) and BOMA 360, exemplifying our continued commitment to high standards of excellence across all areas of operations and management. |
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| SUSTAINABLE PROPERTY DEVELOPMENT•Our development and value-add program has produced tremendous value for our shareholders. We prioritize the use of energy and water efficient fixtures during development and consistently invest in efficiency improvements for existing properties, such as LED lighting, white reflective roofing, electric vehicle charging stations and smart sensor irrigation systems.•EastGroup’s unsecured revolving credit facility is subject to a sustainability-linked pricing component, with the opportunity for a lower interest margin and facility fee based on the number of newly constructed buildings with qualifying electric vehicle charging stations as a percentage of total qualifying buildings for each fiscal year. We expect to receive the maximum reductions available under the agreement for 2025 (-4.0 and -1.0 basis points), based on our performance metric for the year ended December 31, 2024. |
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| ENVIRONMENTAL PERFORMANCE•EastGroup continues to work with a consulting firm to track and benchmark the Company’s environmental data and further expand its corporate responsibility policies, practices and voluntary disclosures. Using the data obtained from these efforts, we completed our second annual GRESB® Real Estate Assessment during 2024, which provided additional insight into our corporate responsibility-related management and performance as compared to industry peers.•The Company also adopted our Corporate Responsibility Policy during 2024, formalizing our commitments, goals and targets related to topics such as environmental sustainability, climate resilience, social responsibility, stakeholder engagement and corporate governance. |
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| Social Initiatives | |
| Our Team WORKFORCE STATISTICSas of March 31, 2025Our 98 employees play a vital role in the success of the Company | |
| FLEXIBLE WORK ENVIRONMENT AND LOW TURNOVER•We offer remote work up to two days per week for most employees, with generous paid time off. •Our voluntary and involuntary turnover rates were only 4% and 1%, respectively, for 2024. |
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| Average Tenure | |
| Workforce | 10 years | |
| COMPENSATION, BENEFITS, HEALTH AND SAFETY•EastGroup offers a comprehensive employee benefits program and what we believe are socially-responsible policies and practices in order to support the overall well-being of our employees and to create a safe, professional and inclusive work environment. •In addition to competitive pay and benefits, we offer:–a robust 401(k) matching program with additional discretionary profit-sharing contributions,–a company-wide equity compensation award program,–employer-paid health insurance for all full-time employees,–performance-based annual bonuses based on a percentage of salary.•EastGroup made enhancements to our Commitment to Safety in 2024, including the addition of a public-facing Health and Safety policy. We are pleased to report that no work-related injuries or illnesses were recorded amongst EastGroup employees in 2024. | | Officers | 13 years |
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| 86%of employees at manager level or above were promoted from within the Company | |
| OFFICERS | |
| ALL EMPLOYEES | |
| TRAINING AND DEVELOPMENT•Our employees are provided with training, education and peer mentoring programs to further develop their professional skill sets, enhancing the level of customer service provided to our customers and the quality of information disclosed to our stakeholders. •We have a formal certificate-based learning program for all employees and continually evaluate the relevance and effectiveness of the training offered. Learning objectives include topics such as ethics and anti-corruption, cybersecurity, anti-discrimination, diversity and inclusion, unconscious bias, anti-harassment and workplace safety.•EastGroup also offers our employees reimbursement for professional designations and continuing education. |
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| 2024 NEW HIRES | |
| 13%of our employees self-identified as members of a racial or ethnic minority group | |
For Governance Highlights see page 10.
