STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

Equity Incentive Plan

In May 2004, the stockholders of the Company approved the EastGroup Properties, Inc. 2004 Equity Incentive Plan (the “2004 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 2004 Plan was further amended by the Board of Directors in September 2005 and December 2006.  Total shares available for grant were 1,248,882 at March 31, 2013.  Typically, the Company issues new shares to fulfill stock grants or upon the exercise of stock options.

In April 2013, the Board of Directors adopted the EastGroup Properties, Inc. 2013 Equity Incentive Plan (the “2013 Equity Plan”) upon the recommendation of the Compensation Committee and subject to approval by the Company's stockholders. If approved by the stockholders, the 2013 Equity Plan will be effective as of May 29, 2013, and will replace the 2004 Plan. Under the 2004 Plan, 1,248,882 shares of Common Stock remained available for grant as of March 31, 2013. If the stockholders approve the 2013 Equity Plan, no grants will be made with respect to any of the shares remaining under the 2004 Plan, nor with respect to any shares that may later become available under the 2004 Plan for any reason such as forfeiture of outstanding grants. The 2013 Equity Plan will also replace the 2005 Directors Equity Incentive Plan, under which 9,127 shares of Common Stock remained available for awards as of March 31, 2013. If the stockholders approve the 2013 Equity Plan, no awards will be made with respect to the shares remaining under the 2005 Directors Equity Incentive Plan. The 2013 Equity Plan will permit the grant of awards with respect to 2,000,000 shares of common stock.

Stock-based compensation cost was $1,831,000 and $1,492,000 for the three months ended March 31, 2013 and 2012, respectively, of which $551,000 and $233,000 were capitalized as part of the Company’s development costs.

Equity Awards

In March 2013, the Compensation Committee evaluated the Company's performance compared to a variety of annual performance goals for the year ended December 31, 2012.  Based on the evaluation, 36,813 shares were awarded to the Company’s executive officers at a weighted average grant date fair value of $57.10 per share.  These shares vested 20% on the dates shares were determined and awarded and will vest 20% per year on January 1 in years 2014, 2015, 2016 and 2017.  The shares will be expensed on a straight-line basis over the remaining service period.

Also in March 2013, the Committee evaluated the Company’s absolute and relative total stockholder return compared to the NAREIT Equity Index, NAREIT Industrial Index and Russell 2000 Index for the five-year period ended December 31, 2012.  Based on the evaluation, 54,336 shares were awarded to the Company’s executive officers at a weighted average grant date fair value of $57.11 per share.  These shares vested 25% on the dates shares were awarded and will vest 25% per year on January 1 in years 2014, 2015 and 2016.  The shares will be expensed on a straight-line basis over the remaining service period.

Notwithstanding the foregoing, shares issued to the Company’s Chief Executive Officer, David H. Hoster II, and Chief Financial Officer, N. Keith McKey, will become fully vested no later than January 1, 2016 and April 6, 2016, respectively.

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 three months of 2013, 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 three months of 2013 was $1,700,000.

	Three Months Ended
Award Activity:	March 31, 2013
	Shares		Weighted Average Grant Date Fair Value
Unvested at beginning of period	212,206		$	42.84
Granted	91,149		57.10
Forfeited	—		—
Vested	(30,316	)	52.32
Unvested at end of period	273,039		$	46.55

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, May 2011 and May 2012. As noted above, if approved by the stockholders, the 2013 Equity Plan will replace the 2005 Plan effective May 29, 2013.  Stock-based compensation expense for directors was $90,000 and $75,000 for the three months ended March 31, 2013 and 2012, respectively.