REAL ESTATE PROPERTIES

9 Months Ended

Sep. 30, 2014

Real Estate Investment Property, Net [Abstract]

Real Estate Properties

REAL ESTATE PROPERTIES

EastGroup has one reportable segment – industrial properties.  These properties are concentrated in major Sunbelt markets of the United States, primarily in the states of Florida, Texas, Arizona, California and North Carolina, have similar economic characteristics and also meet the other criteria permitting the properties to be aggregated into one reportable segment.

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.  Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows (including estimated future expenditures necessary to substantially complete the asset) expected to be generated by the asset.  If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the asset exceeds the fair value of the asset.  As of September 30, 2014 and December 31, 2013, the Company determined that no impairment charges on the Company’s real estate properties were necessary.

Depreciation of buildings and other improvements is computed using the straight-line method over estimated useful lives of generally 40 years for buildings and 3 to 15 years for improvements.  Building improvements are capitalized, while maintenance and repair expenses are charged to expense as incurred.  Significant renovations and improvements that improve or extend the useful life of the assets are capitalized.  Depreciation expense for continuing and discontinued operations was $14,504,000 and $42,571,000 for the three and nine months ended September 30, 2014, respectively, and $13,826,000 and $40,377,000 for the same periods in 2013.

The Company’s real estate properties and development at September 30, 2014 and December 31, 2013 were as follows:

	September 30, 2014			December 31, 2013
	(In thousands)
Real estate properties:
Land	$	278,642		265,871
Buildings and building improvements	1,274,813			1,210,318
Tenant and other improvements	322,371			302,370
Development	169,623			148,767
	2,045,449			1,927,326
Less accumulated depreciation	(588,059		)	(550,113	)
	$	1,457,390		1,377,213