EASTGROUP PROPERTIES INC

Previous wording

•potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the recent inflationary environment;

Current wording

•potential defaults (including bankruptcies or insolvency) on or non-renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of the ongoing uncertainty around interest rates, tariffs and general economic conditions;

Previous wording

•natural disasters such as fires, floods, tornadoes, hurricanes and earthquakes;

Current wording

•natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be directly caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies;

Previous wording

•the availability of financing and capital, increases in interest rates, and our ability to raise equity capital on attractive terms;

Current wording

•the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity capital on attractive terms;

Previous wording

•our ability to attract and retain key personnel;

Current wording

•our ability to attract and retain key personnel or lack of adequate succession planning;

Previous wording

EastGroup’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 develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply constrained submarkets in major Sunbelt regions. The Company’s core markets are in the states of Florida, Texas, Arizona, California and North Carolina.

Current wording

EastGroup’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 develops, acquires and operates distribution facilities, the majority of which are clustered around major transportation features in supply constrained submarkets in high-growth markets. The Company’s core markets are in the states of Texas, Florida, California, Arizona and North Carolina.

Previous wording

During the nine months ended September 30, 2024, economic uncertainty and stock market volatility have continued due to a number of factors, including periods of 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.

Current wording

During the three months ended March 31, 2025, economic uncertainty and stock market volatility continued due to a number of factors, including persistent inflation, interest rate uncertainty, concerns about tariffs, supply chain or trade disruptions, and geopolitical conflict. While these factors did not have a significant adverse impact on EastGroup during the three months ended March 31, 2025, 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 regulatory and economic environment.

Previous wording

During the nine months ended September 30, 2024, EastGroup sold, and subsequently settled the issuance of, 458,679 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 $174.43 per share, providing aggregate net proceeds to the Company of $79,210,000.

Current wording

During the three months ended March 31, 2025, EastGroup sold, and subsequently settled the issuance of, 33,120 shares of common stock directly through sales agents under its at-the-market (“ATM”) common stock offering program at a weighted average price of $183.15 per share, providing aggregate net proceeds to the Company of $6,005,000.

Previous wording

During the nine months ended September 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 1,986,336 shares of common stock with an initial weighted average forward price of $179.46 per share. The Company did not receive any proceeds from the sale of common shares by the forward counterparties at the time it entered into forward equity sale agreements. Also during the nine months ended September 30, 2024, the Company settled outstanding forward equity sale agreements that were

Current wording

During the three months ended March 31, 2025, EastGroup entered into forward equity sale agreements with certain financial institutions acting as forward counterparties under its ATM common stock offering program with respect to 1,043,871 shares of common stock with an initial weighted average forward price of $182.02 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 three months ended March 31, 2025, the Company settled outstanding forward equity sale agreements that were previously entered into by issuing 385,253 shares of common stock in exchange for net proceeds of approximately $66,902,000.

Previous wording

The Company’s primary source of revenue is rental income. During the nine months ended September 30, 2024, EastGroup executed new and renewal leases on 6,617,000 square feet (representing 11.6% of the operating portfolio’s total square footage of 56,840,000). For new and renewal leases signed during the first nine months of 2024, average rental rates increased by 55.9% as compared to the former leases on the same spaces.

Current wording

The Company’s primary source of revenue is rental income. During the three months ended March 31, 2025, EastGroup executed new and renewal leases on 2,594,000 square feet (representing 4.4% of the operating portfolio’s total square footage of 59,101,000). For new and renewal leases signed during the first three months of 2025, average rental rates increased by 46.9%, as compared to the former leases on the same spaces.

Previous wording

On a diluted per share basis, Net Income Attributable to EastGroup Properties, Inc. Common Stockholders was $3.49 for the nine months ended September 30, 2024, compared to $3.06 for the same period of 2023, a 14.1% 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 $1.14 for the three months ended March 31, 2025, compared to $1.22 for the same period of 2024, a 6.6% decrease. 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 September 30, 2024), increased 5.2% for the nine months ended September 30, 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, 2024 through March 31, 2025), increased 5.3% for the three months ended March 31, 2025, as compared to the same period in 2024.

Previous wording

EastGroup’s operating portfolio was 96.9% leased and 96.5% occupied as of September 30, 2024, compared to 98.5% and 97.7%, respectively, at September 30, 2023. As of October 23, 2024, the operating portfolio was 96.5% leased and 95.9% occupied. As of September 30, 2024, leases approximating 1.4% 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 1.1% as of October 23, 2024.

Current wording

EastGroup’s operating portfolio was 97.3% leased and 96.5% occupied as of March 31, 2025, compared to 98.0% and 97.7%, respectively, at March 31, 2024. As of April 22, 2025, the operating portfolio was 96.9% leased and 95.9% occupied. As of March 31, 2025, leases approximating 6.9% of the operating portfolio, based on a percentage of annualized based rent, were scheduled to expire during the remainder of 2025. This percentage was reduced to 5.8% as of April 22, 2025.

Previous wording

During the nine months ended September 30, 2024, EastGroup acquired 34.3 acres of development land in Atlanta for $3,302,000. The Company also began construction of five development projects, containing a total of 783,000 square feet in five markets. EastGroup also transferred six development projects (1,162,000 square feet) in six markets from Development and value-add properties to Real estate properties, with costs of $157,567,000 at the date of transfer. As of September 30, 2024, EastGroup’s development and value-add program consisted of 17 projects (3,698,000 square feet) located in 12 markets. The projected total investment for the development projects, which were collectively 31.3% leased as of October 23, 2024, is $527,700,000, of which $135,309,000 remained to be invested as of September 30, 2024.

Current wording

During the three months ended March 31, 2025, EastGroup began construction of a redevelopment project, containing 262,000 square feet in Los Angeles. EastGroup also transferred two development projects (375,000 square feet) in two markets from Development and value-add properties to Real estate properties, with costs of $43,018,000 at the date of transfer. As of March 31, 2025, EastGroup’s development and value-add program consisted of 20 projects (4,030,000 square feet) located in 14 markets. The projected total investment for the development projects, which were collectively 25.2% leased as of April 22, 2025, is $573,200,000, of which $142,876,000 remained to be invested as of March 31, 2025.

Previous wording

The Company typically initially funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed in Liquidity and Capital Resources). As market conditions permit, EastGroup issues equity and/or employs fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. Moody’s Investors Service has assigned the Company’s issuer rating of Baa2 with a stable outlook. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. For future debt issuances, the Company intends to issue primarily unsecured fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps. The Company may also access the public debt market in the future as a means to raise capital.

Current wording

The Company typically funds its development and acquisition programs through its $675,000,000 unsecured bank credit facilities (as discussed in Liquidity and Capital Resources). As market conditions permit, EastGroup issues equity and/or employs fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps, to replace short-term bank borrowings. Moody’s Investors Service has assigned EastGroup an issuer rating of Baa2 with a stable outlook. A security rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently of any other rating. For future debt issuances, the Company intends to issue primarily unsecured fixed-rate debt, including variable-rate debt that has been swapped to an effectively fixed rate through the use of interest rate swaps. The Company may also access the public debt or convertible bond markets in the future as a means to raise capital.

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

Current 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

Previous wording

-26- 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

(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 and nine months ended September 30, 2024, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2023 through September 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.

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 months ended March 31, 2025, Same Properties includes properties which were included in the operating portfolio for the entire period from January 1, 2024 through March 31, 2025. 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 and nine months ended September 30, 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 months ended March 31, 2025 and 2024.

Previous wording

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

Current wording

PNOI was calculated as follows for the three months ended March 31, 2025 and 2024.

Previous wording

Income from real estate operations is comprised of rental income, net of reserves of 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.

Current wording

Income from real estate operations is comprised of rental income, expense reimbursement pass-through income and other real estate income. 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 and nine months ended September 30, 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 months ended March 31, 2025 and 2024.

Previous wording

•Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three and nine months ended September 30, 2024 was $55,180,000 ($1.13 per basic and diluted share) and $169,111,000 ($3.50 per basic and $3.49 per diluted share), respectively, compared to $48,896,000 ($1.07 per basic and diluted share) and $137,036,000 ($3.07 per basic and $3.06 per diluted share) for the same periods in 2023. See Results of Operations for further analysis.

Current wording

•Net Income Attributable to EastGroup Properties, Inc. Common Stockholders for the three months ended March 31, 2025 was $59,423,000 ($1.14 per basic and diluted share), compared to $58,644,000 ($1.23 per basic and $1.22 per diluted share) for the same period in 2024. 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 September 30, 2024, FFO was $2.13 per share compared with $2.00 per share for the same period of 2023, an increase of 6.5%. For the nine months ended September 30, 2024, FFO was $6.19 per share compared with $5.75 per share for the same period of 2023, an increase of 7.7%. FFO increased during the three and nine months ended September 30, 2024, as compared to the same periods in 2023, primarily due to the increase in PNOI and the decrease in interest expense, partially offset by an increase in general and administrative 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 March 31, 2025, FFO was $2.15 per share compared

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 September 30, 2024. Same PNOI, excluding income from lease terminations, increased 5.5% and 5.2% for the three and nine months ended September 30, 2024, as compared to the same periods 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, 2024 through March 31, 2025. Same PNOI, excluding income from lease terminations, increased 5.3% for the three months ended March 31, 2025, as compared to the same period in 2024.

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 September 30, 2024). Same property average occupancy was 96.7% for the three months ended September 30, 2024, compared to 97.9% for the same period of 2023. Same property average occupancy was 97.0% for the nine months ended September 30, 2024, compared to 98.2% for the same period of 2023.

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 during the entire current and prior year reporting periods (January 1, 2024 through March 31, 2025). Same property average occupancy was 96.0% for the three months ended March 31, 2025, compared to 97.5% for the same period of 2024.

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 September 30, 2024). The same property average rental rate was $8.28 and $8.17 per square foot for the three and nine months ended September 30, 2024, respectively, compared to $7.79 and $7.69 per square foot for the same periods 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, 2024 through March 31, 2025). The same property average rental rate was $8.55 per square foot for the three months ended March 31, 2025, compared to $8.08 per square foot for the same period of 2024.

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 September 30, 2024 was 96.5%. Quarter-end occupancy ranged from 97.1% to 98.2% over the previous four quarters ended September 30, 2023 to June 30, 2024.

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 March 31, 2025 was 96.5%. Quarter-end occupancy ranged from 96.1% to 97.7% over the previous four quarters ended March 31, 2024 to December 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 (4.1% of the operating portfolio’s total square footage) averaged 50.9% for the three months ended September 30, 2024. For the nine months ended September 30, 2024, rental rate increases on new and renewal leases (11.6% of the operating portfolio’s total square footage) averaged 55.9%.

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 (4.4% of the operating portfolio’s total square footage) averaged 46.9% for the three months ended March 31, 2025.

Previous wording

EastGroup’s Total Assets were $4,754,065,000 at September 30, 2024, an increase of $234,852,000 from December 31, 2023. Total Liabilities increased $10,795,000 to $1,921,374,000, and Total Equity increased $224,057,000 to $2,832,691,000 during the same period. The following paragraphs explain these changes in additional detail.

Current wording

EastGroup’s Total Assets were $5,107,978,000 at March 31, 2025, an increase of $30,502,000 from December 31, 2024. Total Liabilities decreased $22,111,000 to $1,762,821,000, and Total Equity increased $52,613,000 to $3,345,157,000 during the same period. The following paragraphs explain these changes in additional detail.

Previous wording

Real estate properties increased $330,509,000 during the nine months ended September 30, 2024, primarily due to: (i) the transfer of projects from Development and value-add properties to Real estate properties; (ii) the acquisition of operating 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 operating properties.

Current wording

Real estate properties increased $62,320,000 during the three months ended March 31, 2025, primarily due to: (i) the transfer of projects from Development and value-add properties to Real estate properties; (ii) capital improvements at the Company’s properties; and (iii) costs incurred on development and value-add projects subsequent to transfer to Real estate properties discussed below.

Previous wording

During the nine months ended September 30, 2024, the Company made capital improvements of $47,183,000 on existing properties (included in the Real Estate Improvements table under Results of Operations). Also, the Company incurred costs of $3,009,000 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 three months ended March 31, 2025, the Company made capital improvements of $20,253,000 on existing properties (included in the Real Estate Improvements table under Results of Operations). Also, the Company incurred costs of $1,698,000 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

EastGroup’s investment in Development and value-add propertiesat September 30, 2024 consisted of projects in lease-up and under construction of $392,391,000 and prospective development (primarily land) of $261,701,000. The Company’s total investment in Development and value-add propertiesat September 30, 2024 was $654,092,000 compared to $639,647,000 at December 31, 2023. Total capital invested for development during the first nine months of 2024 was $181,353,000, which consisted of improvement costs of $175,042,000 on development and value-add properties, $3,302,000 for new land investments, and costs of $3,009,000 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

-28- investment in Development and value-add propertiesat March 31, 2025 was $686,102,000 compared to $674,472,000 at December 31, 2024. Total capital invested for development during the first three months of 2025 was $56,346,000, which consisted of improvement costs of $54,648,000 on development and value-add properties and costs of $1,698,000 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 $1,903,000 and $6,158,000 for the three and nine months ended September 30, 2024, respectively, compared to $3,171,000 and $7,983,000 for the same periods of 2023. The decrease was due to starting fewer development projects in the nine months ended September 30, 2024, as compared to the same period of 2023.

Current wording

The Company capitalized internal development costs of $1,954,000 for the three months ended March 31, 2025, compared to $2,223,000 for the same period of 2024. The decrease was due to variations in timing and volume of development projects started in the three months ended March 31, 2025, as compared to the same period of 2024.

Previous wording

During the nine months ended September 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 six development and value-add projects to Real estate properties during the nine months ended September 30, 2024 with a total investment of $157,567,000 as of the date of transfer.

Current wording

The increases to Development and value-add properties were offset by the transfer of two development and value-add projects to Real estate properties during the three months ended March 31, 2025 with a total investment of $43,018,000 as of the date of transfer.

Previous wording

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

Current wording

A summary of the Company's Development and Value-Add Properties for the three months ended March 31, 2025 follows:

Previous wording

Accumulated depreciation on real estate, development and value-add properties increased $102,475,000 during the nine months ended September 30, 2024, primarily due to depreciation expense, which increased due to operating properties acquired in 2023 and 2024 and properties transferred to Real estate properties. This increase was partially offset by the sale of operating properties.

Current wording

Accumulated depreciation on real estate, development and value-add properties increased $40,980,000 during the three months ended March 31, 2025, primarily due to depreciation expense of $42,308,000 offset by write-offs of assets.

Previous wording

Other assets increased $16,049,000 during the nine months ended September 30, 2024. See Note 9 in the Notes to Consolidated Financial Statements for further details.

Current wording

Other assets decreased $5,407,000 during the three months ended March 31, 2025. See Note 9 in the Notes to Consolidated Financial Statements for further details.

Previous wording

Unsecured bank credit facilities, net of debt issuance costs decreased $2,328,000 during the nine months ended September 30, 2024, mainly due to repayments of $55,262,000 and new debt issuance costs incurred during the period, offset by borrowings of $55,262,000 and the amortization of debt issuance costs during the period. The Company’s credit facilities are described in greater detail under Liquidity and Capital Resources.

Current wording

Unsecured bank credit facilities, net of debt issuance costs increased $250,000 during the three months ended March 31, 2025, mainly due to borrowings of $12,406,000, offset by repayments of $12,406,000, and debt issuance cost activity during the period. The Company’s credit facilities are described in greater detail in Liquidity and Capital Resources.

Previous wording

Unsecured debt, net of debt issuance costs decreased $49,329,000 during the nine months ended September 30, 2024, primarily due to the repayment of a $50,000,000 term loan in August. The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources.

Current wording

Unsecured debt, net of debt issuance costs decreased $49,874,000 during the three months ended March 31, 2025, primarily due to the repayment of a $50,000,000 term loan and debt issuance cost activity during the period. The borrowings and repayments on Unsecured debt, net of debt issuance costs are described in greater detail under Liquidity and Capital Resources.

Previous wording

Accounts payable and accrued expenses increased $58,983,000 during the nine months ended September 30, 2024. Refer to Note 11 in the Notes to Consolidated Financial Statements for further details.

Current wording

Accounts payable and accrued expenses increased $30,045,000 during the three months ended March 31, 2025. Refer to Note 11 in the Notes to Consolidated Financial Statements for further details.