REAL ESTATE PROPERTIES (Tables)

12 Months Ended

Dec. 31, 2021

The Company’s Real estate properties and Development and value-add properties at December 31, 2021 and 2020 were as follows:


	December 31,
	2021		2020
	(In thousands)
Real estate properties:
Land	$	544,505	502,739
Buildings and building improvements	2,408,944		2,120,731
Tenant and other improvements	570,627		524,954
Right of use assets — Ground leases (operating) (1)	22,635		11,073
Development and value-add properties	504,614		359,588
	4,051,325		3,519,085
Less accumulated depreciation	(1,035,617)		(955,328)
	$	3,015,708	2,563,757

(1)See Ground Leases discussion below for information regarding the Company’s right of use assets for ground leases.

Sales of real estate properties [Table]

A summary of Gain on sales of real estate investments for the years ended December 31, 2021, 2020 and 2019 follows:


Real Estate Properties	Location	Size (in Square Feet)	Date Sold	Net Sales Price		Basis	Recognized Gain
				(In thousands)
2021
Jetport Commerce Park	Tampa, FL	284,000	11/09/2021	$	44,260	5,401	38,859
2020
University Business Center 120 (1)	Santa Barbara, CA	46,000	12/01/2020	$	10,342	4,007	6,335
Central Green	Houston, TX	80,000	12/23/2020	10,168		3,358	6,810
Total for 2020				$	20,510	7,365	13,145
2019
World Houston 5	Houston, TX	51,000	01/29/2019	$	3,679	1,354	2,325
Altamonte Commerce Center	Orlando, FL	186,000	05/20/2019	14,423		5,342	9,081
University Business Center 130 (2)	Santa Barbara, CA	40,000	11/07/2019	11,083		2,729	8,354
Southpointe Distribution Center	Tucson, AZ	207,000	12/03/2019	13,699		2,281	11,418
University Business Center 125 & 175	Santa Barbara, CA	133,000	12/11/2019	23,675		13,785	9,890
Total for 2019				$	66,559	25,491	41,068

(1)EastGroup owned 80% of University Business Center 120 through a joint venture partnership. EastGroup sold its 80% share of the joint venture, and the partnership was dissolved. The information shown for this transaction represents EastGroup’s 80% ownership.

(2)EastGroup owned 80% of University Business Center 130 through a joint venture partnership. The information shown for this transaction also includes the 20% attributable to the Company’s noncontrolling interest partner.

Development


DEVELOPMENT AND VALUE-ADD PROPERTIES ACTIVITY		Costs Incurred						Actual or Anticipated Building Conversion Date
		Costs Transferred in 2021 (1)			For the Year Ended 12/31/21	Cumulative as of 12/31/21	Projected Total Costs (2)
		(In thousands)
	(Unaudited)						(Unaudited)	(Unaudited)
LEASE-UP	Building Size (Square feet)
Access Point 1, Greenville, SC (3)	156,000	$	—		12,522	12,522	13,300	01/22
Access Point 2, Greenville, SC (3)	159,000	—			11,631	11,631	13,100	05/22
Grand Oaks 75 3, Tampa, FL	136,000	2,198			7,994	10,192	12,400	07/22
Horizon West 2 & 3, Orlando, FL	210,000	5,505			11,685	17,190	19,200	09/22
Siempre Viva 3-6, San Diego, CA (3)	547,000	—			132,688	132,688	135,600	12/22
Total Lease-Up	1,208,000	7,703			176,520	184,223	193,600
UNDER CONSTRUCTION
Speed Distribution Center, San Diego, CA	519,000	17,758		(4)	50,060	67,818	88,600	03/22
SunCoast 12, Fort Myers, FL	79,000	960			3,218	4,178	8,000	06/22
CreekView 9 & 10, Dallas, TX	145,000	4,350			6,986	11,336	17,200	07/22
Steele Creek 8, Charlotte, NC	72,000	1,869			859	2,728	8,400	08/22
Basswood 1 & 2, Fort Worth, TX	237,000	—			10,475	15,229	22,100	02/23
Gateway 3, Miami, FL	133,000	6,791			6,375	13,166	19,100	04/23
Grand Oaks 75 4, Tampa, FL	185,000	3,313			3,065	6,378	17,900	04/23
Tri-County Crossing 5, San Antonio, TX	105,000	1,328			4,272	5,600	10,300	04/23
Americas Ten 2, El Paso, TX	168,000	2,885			6,215	9,100	14,100	05/23
Grand West Crossing 1, Houston, TX	121,000	3,492			5,377	8,869	15,700	05/23
45 Crossing, Austin, TX	177,000	—			17,060	17,060	26,200	06/23
McKinney 3 & 4, Dallas, TX	212,000	5,120			5,318	10,438	26,300	06/23
Ridgeview 3, San Antonio, TX	88,000	1,443			4,361	5,804	10,700	06/23
Tri-County Crossing 6, San Antonio, TX	124,000	1,576			2,206	3,782	9,900	06/23
LakePort 4 & 5, Dallas, TX	177,000	6,668			1,270	7,938	22,400	08/23
I-20 West Business Center, Atlanta, GA	155,000	1,803			1,161	2,964	14,200	10/23
Total Under Construction	2,697,000	59,356			128,278	192,388	331,100
PROSPECTIVE DEVELOPMENT (PRIMARILY LAND)	Estimated Building Size (Square feet)


Ft. Myers, FL	543,000	(960)			1,392	8,298
Miami, FL	243,000	(6,791)			826	14,331
Orlando, FL	1,278,000	(5,505)			4,065	26,238
Tampa, FL	32,000	(5,511)			613	825
Atlanta, GA	580,000	(1,803)			5,469	5,058
Jackson, MS	28,000	—			—	706
Charlotte, NC	1,387,000	(1,869)			12,648	15,104
Greenville, SC	400,000	—			1,736	1,736
Austin, TX	274,000	—			6,431	6,431
Dallas, TX	172,000	(16,138)			1,658	8,398
El Paso, TX	—	(2,885)			298	—
Ft. Worth, TX	652,000	—			777	15,327
Houston, TX	1,293,000	(3,492)			7,567	24,833
San Antonio, TX	55,000	(4,347)			200	718
Total Prospective Development	6,937,000	(49,301)			43,680	128,003
Total Development and Value-Add Properties	10,842,000	$	17,758		348,478	504,614
The Development and Value-Add Properties Activity table is continued on the following page.


DEVELOPMENT AND VALUE-ADD PROPERTIES TRANSFERRED TO THE REAL ESTATE PROPERTIES PORTFOLIO DURING 2021		Costs Incurred
		Costs Transferred in 2021 (1)		For the Year Ended 12/31/21	Cumulative as of 12/31/21
	(Unaudited)	(In thousands)					(Unaudited)
	Building Size (Square feet)						Building Conversion Date

Gilbert Crossroads A & B, Phoenix, AZ	140,000	$	—	—	16,768		01/21
CreekView 7 & 8, Dallas, TX	137,000	—		1,099	17,658		03/21
Hurricane Shoals 3, Atlanta, GA	101,000	—		124	8,935		03/21
Northpoint 200, Atlanta, GA (3)	79,000	—		6,861	6,861		03/21
Rancho Distribution Center, Los Angeles, CA (3)	162,000	—		—	27,325		03/21
World Houston 44, Houston, TX	134,000	—		399	8,525		05/21
Gateway 4, Miami, FL	197,000	—		641	22,688		06/21
Interstate Commons 2, Phoenix, AZ (3)	142,000	—		50	12,291		06/21
Settlers Crossing 3 & 4, Austin, TX	173,000	—		2,477	19,981		06/21
SunCoast 7, Fort Myers, FL	77,000	—		276	7,649		06/21
Tri-County Crossing 3 & 4, San Antonio, TX	203,000	—		1,000	15,409		06/21
Cherokee 75 Business Center 2, Atlanta, GA (3)	105,000	—		9,052	9,052		07/21
Northwest Crossing 1-3, Houston, TX	278,000	—		1,497	23,819		09/21
Ridgeview 1 & 2, San Antonio, TX	226,000	—		2,021	19,114		10/21
Gilbert Crossroads C & D, Phoenix, AZ	178,000	—		14,955	21,572		12/21
LakePort 1-3, Dallas, TX	194,000	—		3,983	23,764		12/21
Steele Creek 10, Charlotte, NC	162,000	—		6,647	10,881		12/21
Total Transferred to Real Estate Properties	2,688,000	$	—	51,082	272,292	(5)

(1)Represents costs transferred from Prospective Development (primarily land) to Under Construction during the period. Negative amounts represent land inventory costs transferred to Under Construction.

(2)Included in these costs are development obligations of $88.7 million and tenant improvement obligations of $10.3 million on properties under development.

(3)Represents value-add properties acquired by EastGroup.

(4)Represents costs transferred from Real estate properties during the year.

(5)Represents cumulative costs at the date of transfer.

Future Minimum Ground Lease Payments

The following schedule indicates approximate future minimum ground lease payments for these properties by year as of December 31, 2021:

Future Minimum Ground Lease Payments as of December 31, 2021


Years Ending December 31,	(In thousands)
2022	$	1,605
2023	1,610
2024	1,663
2025	1,697
2026	1,734
Thereafter	60,476
Total minimum payments	68,785
Imputed interest (1)	(45,887)
Total ground lease liabilities	$	22,898

(1)As the Company’s leases do not provide an implicit rate, in order to calculate the present value of the remaining ground lease payments, the Company used its incremental borrowing rate, adjusted for a number of factors, including the long-term nature of the ground leases, the Company’s estimated borrowing costs, and the estimated fair value of the underlying land, to determine the imputed interest for its ground leases. For the ground lease obtained during August 2021, the Company used its incremental borrowing rate, adjusted for the factors discussed above, which was determined to be 5.0%.

Summary of real estate properties acquired

A summary of real estate properties acquired for the years ended December 31, 2021, 2020 and 2019 follows:


REAL ESTATE PROPERTIES ACQUIRED	Location	Size	Date Acquired	Cost
		(In square feet or acres)		(In thousands)
2021
OPERATING PROPERTIES ACQUIRED (1)
Southpark Distribution Center 2	Phoenix, AZ	79,000	06/10/2021	$	9,177
DFW Global Logistics Centre	Dallas, TX	611,000	08/26/2021	89,829
Progress Center 3	Atlanta, GA	50,000	09/23/2021	5,000
Texas Avenue	Austin, TX	20,000	10/15/2021	4,143
Total operating property acquisitions		760,000		108,149
VALUE-ADD PROPERTIES ACQUIRED (2)
Access Point 1	Greenville, SC	156,000	01/15/2021	10,501
Northpoint 200	Atlanta, GA	79,000	01/21/2021	6,516
Access Point 2	Greenville, SC	159,000	05/19/2021	10,743
Cherokee 75 Business Center 2	Atlanta, GA	105,000	06/17/2021	8,837
Siempre Viva Distribution Center 3-6	San Diego, CA	547,000	12/01/2021	134,479
Total value-add property acquisitions		1,046,000		171,076
Total acquired assets in 2021 (3)		1,806,000		$	279,225
2020
OPERATING PROPERTIES ACQUIRED (1)
Wells Point One	Austin, TX	50,000	02/28/2020	$	6,231
Cherokee 75 Business Center 1	Atlanta, GA	85,000	12/15/2020	8,323
The Rock at Star Business Park	Dallas, TX	212,000	12/17/2020	34,102
Total operating property acquisitions		347,000		48,656
VALUE-ADD PROPERTIES ACQUIRED (2)
Rancho Distribution Center	Los Angeles, CA	162,000	10/15/2020	27,862
Total acquired assets in 2020 (3)		509,000		$	76,518
2019
OPERATING PROPERTIES ACQUIRED (1)
Airways Business Center	Denver, CO	382,000	05/20/2019	$	48,327
Miramar Land (4)	San Diego, CA	6.5 Acres	05/31/2019	13,386
385 Business Park	Greenville, SC	155,000	07/31/2019	13,900
Grand Oaks 75 Business Center 1	Tampa, FL	169,000	09/06/2019	17,974
Siempre Viva Distribution Center 2	San Diego, CA	60,000	10/04/2019	8,621
Rocky Point Distribution Center 1	San Diego, CA	118,000	12/17/2019	24,396
Otay Mesa Land (4)	San Diego, CA	41.6 Acres	12/31/2019	15,282
Total operating property acquisitions		884,000		141,886
		48.1 Acres
VALUE-ADD PROPERTIES ACQUIRED (2)
Logistics Center 6 & 7	Dallas, TX	142,000	04/23/2019	12,960
Arlington Tech Centre 1 & 2	Dallas, TX	151,000	08/16/2019	12,615
Grand Oaks 75 Business Center 2	Tampa, FL	150,000	09/06/2019	12,815
Interstate Commons Distribution Center 2	Phoenix, AZ	142,000	10/21/2019	9,386
Southwest Commerce Center	Las Vegas, NV	196,000	10/30/2019	25,609
Rocky Point Distribution Center 2	San Diego, CA	109,000	12/17/2019	19,238
Total value-add property acquisitions		890,000		92,623
Total acquired assets in 2019 (3)		1,774,000		$	234,509
		48.1 Acres

(1)Operating properties are defined as stabilized real estate properties (land including buildings and improvements) in the Company’s operating portfolio; included in Real estate properties on the Consolidated Balance Sheets.

(2)Value-add properties are defined as properties that are either acquired but not stabilized or can be converted to a higher and better use. Acquired properties meeting either of the following two conditions are considered value-add properties: (1) Less than 75% occupied as of the acquisition date (or will be less than 75% occupied within one year of acquisition date based on near term lease roll), or (2) 20% or greater of the acquisition cost will be spent to redevelop the property.

(3)Excludes development land as detailed below.

(4)Land which was leased at the time of acquisition and including in the operating portfolio.