MORTGAGE LOANS RECEIVABLE

12 Months Ended

Dec. 31, 2011

MORTGAGE LOANS RECEIVABLE [Abstract]

MORTGAGE LOANS RECEIVABLE

(4)  MORTGAGE LOANS RECEIVABLE

In connection with the sale of a property in 2008, EastGroup advanced the buyer $4,994,000 in a first mortgage recourse loan.  In September 2008, EastGroup received a principal payment of $844,000.  In August 2011, the loan was amended; under the amended terms of the loan, the maturity date was extended to August 8, 2016.  Monthly interest-only payments will continue to be due until August 1, 2013, when a principal payment of $550,000 is due.  Beginning on August 1, 2013, monthly payments will include principal and interest with the final payment on August 8, 2016, including a balloon payment of $3,460,000 for the remaining principal balance.

At the inception of the loan, EastGroup recognized a discount on the loan of $198,000.  EastGroup recognized amortization of the discount of $12,000 in 2011, $13,000 in 2010, and $12,000 in 2009.  Mortgage loans receivable, net of discount, are included in Other Assets on the Consolidated Balance Sheets.  See Note 5 for a summary of Other Assets.