Slides
Page 1
October 2025 Northeast Trade Center San Antonio, TX
Page 2
Forward-Looking Statements 2 The statements and certain other information contained herein, which can be identified by the use of forward- looking terminology such as “may,” “will,” “seek,” “expects,” “anticipates,” “believes,” “targets,” “intends,” “should,” “estimates,” “could,” “continue,” “assume,” “projects,” “goals,” or “plans” and variations of such words or similar expressions or the negative of such words, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbors created thereby. These forward-looking statements reflect the current views of EastGroup Properties, Inc. (the “Company” or “EastGroup”) about its plans, intentions, expectations, strategies and prospects, which are based on the information currently available to the Com pany and on assumptions it has made. Although the Company believes that its plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward- looking statements are reasonable, the Company can give no assurance that such plans, intentions, expectations or strategies will be attained or achieved. Furthermore, these forward-looking statements should be considered as subject to the many risks and uncertainties that exist in the Company’s operations and business environment. Such risks and uncertainties could cause actual results to differ materially from those projected. These uncertainties include, but are not limited to: • international, national, regional and local economic conditions and conflicts; • the competitive environment in which the Company operates; • fluctuations of occupancy or rental rates; • potential defaults (including bankruptcies or insolvency) on or non- renewal of leases by tenants, or our ability to lease space at current or anticipated rents, particularly in light of ongoing interest rate uncertainty; • disruption in supply and delivery chains; • increased construction and development costs, including as a result of tariffs or the recent inflationary environment; • acquisition and development risks, including failure of such acquisitions and development projects to perform in accordance w ith our projections or to materialize at all; • potential changes in the law or governmental regulations and interpretations of those laws and regulations, including changes in real estate laws, REIT or corporate income tax laws, potential changes in zoning laws, or increases in real property tax rates, and any related increased cost of compliance; • our ability to maintain our qualification as a REIT; • natural disasters such as fires, floods, tornadoes, hurricanes, earthquakes or other extreme weather events, which may or may not be caused by longer-term shifts in climate patterns, could destroy buildings and damage regional economies; • the availability of financing and capital, increases in or long-term elevated interest rates, and our ability to raise equity ca pital on attractive terms; • financing risks, including the risks that our cash flows from operations may be insufficient to meet required payments of principal and interest, and we may be unable to refinance our existing debt upon maturity or obtain new financing on attractive terms or at all; • our ability to retain our credit agency ratings; • our ability to comply with applicable financial covenants; • credit risk in the event of non-performance by the counterparties to our interest rate swaps; • how and when pending forward equity sales may settle; • lack of or insufficient amounts of insurance; • litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; • our ability to attract and retain key personnel or lack of adequate succession planning; • risks related to the failure, inadequacy or interruption of our data security systems and processes, including security breac hes through cyber attacks; • pandemics, epidemics or other public health emergencies, such as the coronavirus pandemic; • potentially catastrophic events such as acts of war, civil unrest and terrorism; and • environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamina tion of properties presently owned or previously owned by us. All forward-looking statements should be read in light of the risks identified in Part I, Item 1A. Risk Factors within the Company’s most recent Annual Report on Form 10-K, as such factors may be updated from time to time in the Company’s periodic filings and current reports filed with the SEC. The Company assumes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Page 3
3 Company Profile EastGroup Properties, Inc. (NYSE: EGP), a member of the S&P Mid-Cap 400 and Russell 2000 Indexes, is a self- administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in high-growth markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona, California and North Carolina. The Company's goal is to maximize shareholder value by being a leading provider in its markets of functional, flexible and quality business distribution space for location sensitive customers (primarily in the 20,000 to 100,000 square foot range). The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio, including development projects and value-add acquisitions in lease-up and under construction, currently includes approximately 64.4 million square feet.
Page 4
4 Company Highlights • Multi-T enant Urban Distribution Property Focus • High-Growth Markets • Four-Pronged Growth Strategy • Demonstrated Track Record Riverside 1 & 2 Atlanta, GA
Page 5
5 Industrial Real Estate • Stability • L imited Capital Requirements • Lack of Obsolescence • Flexibility • Location Mesa Gateway Phoenix, AZ
Page 6
Geographic Focus San Francisco Fresno LOS ANGELES 6 • High-Growth Markets • Emphasis in Local Economies Growing Faster than the U.S. Economy • Economic Cycle Diversification Properties Corporate Headquarters Regional Offices Orlando Fort LauderdaleFt. Myers TampaNew Orleans Jacksonville DALLAS/FT. WORTH Houston Austin San Antonio El PasoTucson Phoenix Las Vegas San Diego ATLANTA Charlotte JACKSON Denver Miami Greenville Sacramento Nashville Raleigh
Page 7
7 5 Year GDP Growth (2020-2024) U.S. Average versus EGP Market Weighted Average 12% 19% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% US EGP EGP Growth Rate is 58% Greater than the U.S. Average Source: AVANT by Avison Young; Oxford Economics
Page 8
8 Portfolio by State (Annualized base rent, quarter ended 9/30/25) • Texas 35% • Florida 25% • California 15% • Arizona 8% • North Carolina 5% • Other 12% Northeast Trade Center San Antonio, TX
Page 9
9 Property Focus • 64.4 M illion Square Feet Under Ownership • Multi-tenant • Infill Sites/Supply Constrained Submarkets • Last Mile E-commerce Locations • Shallow Bay Industrial • Competitive Protection Through Location Gateway Commerce Park Miami, FL
Page 10
Chart Title 5.43% 9.9% 0% 2% 4% 6% 8% 10% 12% Shallow Bay Vacancy Larger Box Vacancy 10 Source: Newmark Research, October 2025. The long-term historical average spread between big box and shallow bay vacancy is ~2.4 percentage points. This spread has widened to nearly double that average. Historic Gap Between Larger Box and Shallow Bay Vacancy U.S. Industrial Vacancy By Shallow Bay and Big Box Shallow Bay – Buildings Under 140K SF Larger Box – Buildings Above 140K SF
Page 11
11 The Great Construction Contraction Continues – For Now 0 100 200 300 400 500 600 700 800 Pipeline Share by SF Millions Larger Box Shallow Bay The U.S. development pipeline contracted for the twelfth consecutive quarter, with 290 MSF under construction (the lowest since 2018). This is the longest streak of contraction on record in the 21st century. Around a third of markets saw pipelines expand with new projects but deliveries outpaced new starts, which did tick up modestly from the previous quarter. Small bay product represents around a fifth of the total pipeline currently. U.S. Industrial Development Pipeline By Size Shallow Bay – Buildings Under 140K SF Larger Box – Buildings Above 140K SF Source: Newmark Research, CoStar, October 2025.
Page 12
12 CBRE RESEARCH © 2025 CBRE, INC. The State of the U.S. Industrial & Logistics Market Q3 2025 Source: CBRE Research, Q3 2025. (MSF) Over 1/3 of product under construction is spoken for, available UC equals only 0.7% of existing inventory 448.6 513.9 545.4 626.6 662.3 667.7 630.4 588.6 491.9 380.4 325.7 291.4 251.8 237.7 230.3 231.1 226.9 160.6 175.3 177.2 195.8 187.8 161.1 153.9 146.4 130 111 95.2 94.5 73.7 77.2 76.6 81.7 81.4 34.4% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 0 100 200 300 400 500 600 700 800 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Inventory Under Construction (MSF) Preleased Million Sq. Ft. Preleased % 34.4% Preleased
Page 13
13 CBRE RESEARCH © 2025 CBRE, INC. The State of the U.S. Industrial & Logistics Market Q3 2025 Source: CBRE Research, Q3 2025. Construction starts dip in Q3 Both occupiers and developers prefer build-to-suit development 67.2 94.5 117.1 99.8 110.5 100.2 113.5 85.8 68.2 65.9 47.8 46.3 36.1 51.2 36.7 43.3 37.7 54.2 42.9 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Construction Starts (MSF)
Page 14
14 Customer Focus • Location-Sens itive Customers • Compete on Location Not Rent • Users in the Broadest Portion of the Market – 20,000 to 100,000 Square Feet • Diversified Tenant Base – Top 10 Customers Represent Only 6.9% of Annualized Base Rent as of September 30, 2025 • 75% of Revenue is Generated from Tenants That Lease Under 100,000 Square Feet
Page 15
15 CBRE RESEARCH © 2025 CBRE, INC. The State of the U.S. Industrial & Logistics Market Q3 2025 Vacancy rates over 700,000 sf decline due to lower speculative development Source: CBRE Econometric Advisors, Q3 2025. 2.2% 4.2% 7.2% 7.7% 9.1% 2.2% 5.8% 2.3% 4.7% 8.4% 9.5% 9.8% 3.3% 6.6% 2.3% 4.8% 8.5% 9.6% 9.1% 2.8% 6.6% 0% 2% 4% 6% 8% 10% Under 25K SF 25-100K SF 100-300K SF 300-700K SF 700-1,200K SF 1,200K+ SF Total SF Q3 2024 Vacancy Rate Q2 2025 Vacancy Rate Q3 2025 Vacancy Rate U.S. Industrial Vacancy Rate by Size Segment
Page 16
16 Property Selection • Specifications Keyed to Local Sub-Ma rkets • Maximum Customer Flexibility • Clustering of Properties Around Transportation Features in High Growth AreasSkyway Logistics Park Charlotte, NC 16
Page 17
17 Growth Strategy • Targeted Development • A cquisitions – Operating, Value-Add, Redevelopment • Recycling of Capital • Internal Growth Rocky Point Distribution Center San Diego, CA
Page 18
18 Targeted Development Development in Markets Where EastGroup Already Has a Presence Benefits: • We Build Park Settings • Creates Sense of Place • Properties Designed to EGP Specifications for Functionality and Sustainability • Increased Returns with Lower Risks • Meet Customer Needs • Creates Long Term Value for our Shareholders Gateway Commerce Park Miami, FL
Page 19
19 Steele Creek Commerce Park Charlotte, NC
Page 20
20 Sky Harbor Business Park Phoenix, AZ
Page 21
21 Orlando, FLSouthwest Commerce Center Las Vegas, NV
Page 22
22 Eisenhauer Point San Antonio, TX 22
Page 23
23 Development History (Through 9/30/25) • 49% of Portfolio • 272 Properties – Since 1996 • 31.8 Million Square Feet • $3.4 Billion Investment Gilbert Crossroads Phoenix, AZ 23
Page 24
24 Value-Add In Markets Where EastGroup Already Has a Presence Benefits: • In-fill locations • Higher return than market value for calculated leasing risk • Creates long term value for shareholders Broadmoor Commerce Park Atlanta, GA
Page 25
25 Access Point Greenville, SC
Page 26
26 Current Development and Value-Add Program (As of 9/30/25) • 15 Projects Located in 12 Markets • 3.0 Million Square Feet • Projected Total Costs of $436 Million Arista 36 Denver , CO
Page 27
Recycling of Capital • Sales of Assets with Lower U pside Potential • Reinvestment of Capital into H igher-Growth Opportunities 27 Kyrene 202 Business Park Phoenix, AZ
Page 28
28 Operating Property Acquisitions • 2025 to-da te - $122 Million - 638,000 Square Feet in 2 Markets • 2024 - $390 Million - 2,474,000 Square Feet in 6 Markets • 2023 - $165 Million - 987,000 Square Feet in 4 Markets • 2022 - $359 Million - 1,706,000 Square Feet in 2 Markets • 2021 - $108 Million - 760,000 Square Feet in 4 Markets • 2020 - $49 Million - 347,000 Square Feet in 3 Markets
Page 29
29 Operating Results – Three Months Ended 9/30/25 • Increase in Same Property Results (Cash Basis): 6.9% • FFO per Diluted Share Increase: 6.6% • Leased at September 30, 2025: 96.7% Steele Creek Commerce Park Charlotte, NC
Page 30
Capitalization (as of 9/30/25) 30 Shareholders’ Market Equity $9.04 Billion (common @ $169.45 per share) 86% 14% Fixed Rate Debt $1.4 Billion, Average Rate of 3.37%
Page 31
31 Dividend Growth (Through 9/30/25) • Declared 183rd Consecutive Quarterly Cash Dividend – $1.55 per Share • Increased or Maintained Dividend for 33 Consecutive Years • Dividend Has Increased 30 of the Past 33 Years – Increased Each of the Last 14 Years Horizon West Commerce Park Orlando, FL
Page 32
Dividend FFO Payout Ratio 64% 64% 61% 59% 58% 59% 57% 59% 67% 65% 64% 65% 63% 68% 0% 10% 20% 30% 40% 50% 60% 70% 80% 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1Q25 2Q25 3Q25 Dividend Payout 32
Page 33
Our Priorities 33 EastGroup operates on the premise that good corporate governance is fundamental to our business and core values. We believe our corporate governance policies and practices are well aligned with the interests of stakeholders. Honesty and integrity of the Company’s management and Board of Directors are critical assets in maintaining the trust of our investors, employees, customers, vendors and the communities in which we operate. We believe our employees are a critical component of the success and sustainability of our Company, and we aim to cultivate a workplace environment that encourages collaboration and teamwork.
Page 34
Our Culture 34 EastGroup is recognized in the marketplace for its unique culture — one that is family-oriented, employee-focused and promotes an entrepreneurial spirit. Our do-the-right-thing approach—one that relies on accountability, respect and trust—has been the foundation of our success. EastGroup provides employees with 16 hours of paid leave each year to volunteer in their communities and encourages collaboration and networking through various employee and tenant appreciation events held throughout the year.
Page 35
35 Human Capital Matters Key Policies (https://eastgroup.net/priorities/) • Code of Ethics and Business Conduct • Ethics Line • Corporate Responsibility Policy • Equal Opportunity and Commitment to Diversity • ADA and Reasonable Accommodation • Commitment to Safety and Health and Safety Policy • Community Service • Family Medical Leave • Standards of Conduct • Workplace Violence Prevention • Healthy, Wealthy, Wise Benefits Summary • Human Rights Statement • Vendor Code of Conduct • 103 em ployees across 15 locations • 14% of our employees self-identified as members of a racial or ethnic minority group • 2 out of 7 directors are women • Average t enure of 9 years for our workforce and 12 years for our officers 27% 73% All Employees Men Women As of September 30, 2025: We believe our culture supports our employees and creates a positive, professional environment that encourages longevity for our team members. EastGroup provides generous employee benefits, including a robust 401(k) matching program, an employee equity award program, paid time off, parental leave and employer-paid health insurance for all full-time employees. 53% 47% Officer Group Men Women
Page 36
Environmental Stewardship EastGroup places heavy focus on incorporating sustainable design features in our development properties, allowing us to integrate energy efficient systems and eco-friendly design into our buildings and enabling our tenants to benefit from operating within a highly efficient building envelope. 100% of our new developments incorporate LED lighting and we routinely complete building retrofits as opportunities arise. Listed below are additional features found at many of our properties throughout our industrial portfolio. 36 Optimizing Building Envelope o Insulated ceilings and walls o LED lighting o Motion sensor lighting o Skylights o ENERGY STAR certified HVAC equipment o White, reflective roofing o Low-E insulated glass Conserving Resources o Smart sensor irrigation systems o Water-e fficient plumbing fixtures o Native, drought-t olerant landscaping o Reclaimed water for irrigation o Recycled building materials Enhancing Workplace Environment o Habitat preservation o Shaded rest areas o Public transit access o Bike storage o Substantial outdoor walking paths o E V charging stations o Flood-conscious design to avoid water penetration In order to better assess our environmental footprint and identify areas for improvement, EastGroup tracks various energy and water consumption metrics based on the data available for our buildings. Understanding that reliable data is critical to developing effective strategies and making well-informed decisions, we have prioritized expanding our utility data coverage to gain clarity around our environmental performance and work towards establishing thoughtful goals and targets for the company. Our latest corporate responsibility reports, containing additional information on our environmental initiatives and performance, can be viewed at http://eastgroup.net/priorities.
Page 37
Environmental Stewardship 37 EastGroup’s unsecured revolving credit facility is subject to a sustainability-linked pricing component, pursuant to which the applicable interest margin and facility fee may be adjusted annually if the Company meets a certain sustainability performance target related to the percentage of newly-constructed buildings with qualifying electric vehicle charging stations each fiscal year. We received the maximum reductions available under the agreement for 2025 (-4.0 and -1.0 basis points), based on our performance metric for the year ended December 31, 2024. Several of our properties and property managers have been recognized by the Building Owners and Managers Association (“BOMA”) in various award categories. In 2025, our Gateway Commerce Park property was named The Outstanding Building of the Year (“TOBY”) in the industrial office park category by BOMA International. The property previously received TOBY awards from both BOMA Miami-Dade and the BOMA Southern Region. Buildings in the competition were judged based on all facets of business operations, including community involvement, tenant relations, site management and environmental and "green" policies and procedures. Each of the property’s five buildings are certified through both BOMA BEST Sustainable (silver level) and the BOMA 360 Performance Program, exemplifying our continued commitment to high standards of excellence across all areas of operations and management.
Page 38
38 EastGroup Properties Things to Remember: • Track Record • Product Type • Growth Markets • Value Creation • Financial Strength • Dividend History 38
Page 39
39 Resources www.EastGroup.net Tel: 601-354-3555 investor@eastgroup.net 400 W. Parkway Place Suite 100 Ridgeland, MS 39157 39