STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2012

STOCK-BASED COMPENSATION [Abstract]

Stock-Based Compensation

(12)  STOCK-BASED COMPENSATION

Equity Incentive Plan

In May 2004, the stockholders of the Company approved the EastGroup Properties, Inc. 2004 Equity Incentive Plan (the "Plan") that authorized the issuance of up to 1,900,000 shares of common stock to employees in the form of options, stock appreciation rights, restricted stock, deferred stock units, performance shares, bonus stock or stock in lieu of cash compensation.  The Plan was further amended by the Board of Directors in September 2005 and December 2006.  Total shares available for grant were 1,331,876 at March 31, 2012.  Typically, the Company issues new shares to fulfill stock grants or upon the exercise of stock options.

Stock-based compensation cost was $1,492,000 and $794,000 for the three months ended March 31, 2012 and 2011, respectively, of which $233,000 and $39,000 were capitalized as part of the Company's development costs.

Equity Awards

In March 2012, the Compensation Committee evaluated the Company's performance compared to a variety of goals for the year ended  December 31, 2011.  Based on the evaluation, 44,789 shares were awarded to the Company's executive officers at a weighted average grant date fair value of $48.75 per share.  These shares vested 20% on the dates shares were determined and awarded and will vest 20% per year on January 1 of the subsequent four years.  The shares will be expensed on a straight-line basis over the remaining service period.

Also in March 2012, the Committee evaluated the Company's absolute and relative total shareholder return for the five-year period ended December 31, 2011.  Based on the evaluation, 47,418 shares were awarded to the Company's executive officers at a grant date fair value of $48.75 per share.  These shares vested 25% on the dates shares were determined and awarded and will vest 25% per year on January 1 in years 2013, 2014 and 2015.

Notwithstanding the foregoing, pursuant to a special vesting provision adopted by the Company's Compensation Committee, shares issued to the Company's Chief Executive Officer, David H. Hoster II, will become fully vested no later than January 1, 2015.

Following is a summary of the total restricted shares granted, forfeited and delivered (vested) to employees with the related weighted average grant date fair value share prices.  Of the shares that vested in the first quarter of 2012, the Company withheld 17,927 shares to satisfy the tax obligations for those employees who elected this option as permitted under the applicable equity plan.  As of the vesting date, the fair value of shares that vested during the first quarter of 2012 was $3,191,000.

Award Activity:	Three Months Ended March 31, 2012
	Shares	Weighted Average Grant Date Fair Value
Unvested at beginning of period	235,929	$        38.90
Granted	92,207	48.75
Forfeited	-	-
Vested	(70,877)	41.27
Unvested at end of period	257,259	$        41.77

Directors Equity Plan

The Company has a directors equity plan that was approved by stockholders and adopted in 2005 (the 2005 Plan), which authorizes the issuance of up to 50,000 shares of common stock through awards of shares and restricted shares granted to non-employee directors of the Company.  The 2005 Plan was further amended by the Board of Directors in May 2006, May 2008 and May 2011.  Stock-based compensation expense for directors was $75,000 and $60,000 for the three months ended March 31, 2012 and 2011, respectively.