On August 16, 2022, EastGroup Properties, L.P. and EastGroup Properties, Inc. entered into a Note Purchase Agreement, dated as of August 16, 2022 (the Agreement") to sell $150.0 million aggregate principal amount of its senior notes, of which $75.0 million aggregate principal amount shall be its 4.90% Series A Senior Notes with an 11-year term (the Series A Notes") and $75.0 million aggregate principal amount shall be its 4.95% Series B Senior Notes with a 12-year term (the Series B Notes," and, together with the Series A Notes, the Notes"). The Company is the sole shareholder of the sole general partner of the Operating Partnership. EastGroup expects to issue and sell the Notes on or before October 12, 2022.

Semi-annual interest only payments will be required, with principal payments of $75.0 million with respect to the Series A Notes and $75.0 million with respect to the Series B Notes to be due and payable on the maturity dates, which are expected to be October 12, 2033 and October 12, 2034, respectively. The Notes are unsecured obligations of EastGroup and will be fully and unconditionally guaranteed by certain subsidiaries of the Operating Partnership or the Company. Subject to the terms of the Agreement and the Notes, upon certain events of default, including, but not limited to, (i) a default in the payment of any principal, Make-Whole Amount, as discussed below, or interest under the Notes and (ii) a default in the payment of certain other indebtedness of the Operating Partnership or of the Company or of their subsidiaries, the principal and accrued and unpaid interest and the Make-Whole Amount on the outstanding Notes will become due and payable at the option of the holders.

EastGroup will be permitted to prepay at any time all, or from time to time any part of, the outstanding Notes, in the amount not less than 5% of the principal amount of the Notes then outstanding at (i) 100% of the principal amount so prepaid, together with accrued interest, and (ii) the Make-Whole Amount" as defined in the Agreement.